Barnes and Noble 1999 Annual Report Download - page 48

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued 47
The following table provides a reconciliation of benefit obligations, plan assets and funded status of the Pension Plan and
the Postretirement Plan:
Pension Plan Postretirement Plan
Fiscal Year 1999 1998 1999 1998
Change in benefit obligation:
Benefit obligation
at beginning of year $33,064 30,734 2,145 1,975
Service cost 4,535 4,157 -- --
Interest cost 2,349 2,039 151 149
Transfer to Barnes & Noble.com -- ( 642 ) -- --
Actuarial (gain) loss ( 1,707 ) ( 2,427 ) 272 136
Benefits paid ( 1,062 ) ( 797 ) ( 515 ) ( 115 )
Curtailment ( 14,142 ) -- -- --
Benefit obligation at end of year $23,037 33,064 2,053 2,145
Change in plan assets:
Fair value of plan assets
at beginning of year $25,331 22,909 -- --
Actual return on assets 1,393 2,255 -- --
Employer contributions 3,374 1,395 -- --
Benefits paid ( 1,062 ) ( 797 ) -- --
Transfer to Barnes & Noble.com -- ( 431 ) -- --
Fair value of plan assets at end of year $29,036 25,331 -- --
Funded status $ 5,999 ( 7,733 ) ( 2,053 ) ( 2,145 )
Unrecognized net actuarial (gain) loss 200 805 ( 1,741 ) ( 2,136 )
Unrecognized prior service cost -- ( 183 ) -- --
Unrecognized net obligation remaining -- 166 -- --
Prepaid (accrued) benefit cost $ 6,199 ( 6,945 ) ( 3,794 ) ( 4,281 )
The health care cost trend rate used to measure the expected
cost of the Postretirement Plan benefits is assumed to be
seven percent in 2000, declining at one-half percent decrements
each year through 2004 to five percent in 2004 and each
year thereafter. The health care cost trend assumption has
a significant effect on the amounts reported. For example,
a one percent increase or decrease in the health care cost trend
rate would change the accumulated postretirement benefit
obligation by approximately $193 and $171, respectively, as
of January 29, 2000, and would change the net periodic cost
by approximately $15 and $13, respectively, during fiscal 1999.