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AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
basedonthespotyieldcurveapproach,whichappliestheindividualspotratesfromahighlyratedbondyieldcurvetoeachfuture
year’sestimatedcashflows.Theestimateddiscountrateinfiscal2015wasbasedprimarilyuponanaverageratedeterminedby
matching the expected cash outflows of the Plan to a yield curve constructed from a portfolio of highly rated (minimum AA
rating) fixed-income debt instruments with maturities consistent with the expected cash outflows. The effect of the change in
estimateusingthespotyieldcurveapproachwasnotmaterial.
Assumptionsusedtodeterminenetbenefitcostsareasfollows:
2016 2015
Discountrate 4.3 % 4.0 %
Expectedreturnonplanassets 8.3 % 8.5 %
Componentsofnetperiodicpensioncostduringthelastthreefiscalyearsareasfollows:
Years Ended
July 2, June 27, June 28,
2016 2015 2014
(Thousands)
Servicecost $ 39,740 $ 39,492 $ 36,733
Interestcost 21,310 17,797 17,155
Expectedreturnonplanassets (40,285) (36,221) (30,908)
Recognizednetactuarialloss 12,731 13,007 12,686
Amortizationofpriorservicecredits (1,573) (1,573) (1,573)
Netperiodicpensioncost $ 31,923 $ 32,502 $ 34,093
TheCompanymade$40.0millionofcontributionsinfiscal2016andfiscal2015andexpectstomakeapproximately$40.0
millionofcontributionsinfiscal2017.
BenefitpaymentsareexpectedtobepaidtoPlanparticipantsasfollowsforthenextfivefiscalyearsandtheaggregatefor
thefiveyearsthereafter(inthousands):
2017 $ 39,519
2018 30,771
2019 34,711
2020 39,973
2021 45,057
2022through2026 305,721
ThePlan’sassetsareheldintrustandwereallocatedasfollowsasofthemeasurementdateattheendoffiscal2016and
2015:
2016 2015
Equitysecurities 60 % 76 %
Fixedincomedebtsecurities 40 % 23 %
Cashandcashequivalents — % 1 %
ThegeneralinvestmentobjectivesofthePlanaretomaximizereturnsthroughadiversifiedinvestmentportfolioinorderto
earnannualizedreturnsthatmeetthelong-termcostoffundingthePlan’spensionobligationswhilemaintaining
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