Barnes and Noble 2000 Annual Report Download - page 54

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Weighted-average actuarial assumptions used in determining the net periodic costs of the Pension Plan and the
Postretirement Plan are as follows:
Pension Plan Postretirement Plan
Fiscal Year 2000 1999 1998 2000 1999 1998
Discount rate 7.8% 7.8% 7.3% 7.8% 7.8% 7.3%
Expected return on plan assets 9.5% 9.5% 9.5% -- -- --
Assumed rate of compensation increase 4.8% 4.8% 4.3% -- -- --
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 2000 1999 2000 1999
Change in benefit obligation:
Benefit obligation at beginning of year $ 23,037 33,064 2,053 2,145
Service cost -- 4,535 -- --
Interest cost 1,779 2,349 151 1 51
Actuarial (gain) loss 129 ( 1,707 ) 54 272
Benefits paid ( 758 ) ( 1,062 ) ( 177 ) ( 515 )
Curtailment -- ( 14,142 ) -- --
Benefit obligation at end of year $ 24,187 23,037 2,081 2,053
Change in plan assets:
Fair value of plan assets at beginning of year $ 29,036 25,331 -- --
Actual return (loss) on assets ( 446 ) 1,393 -- --
Employer contributions 4,282 3,374 -- --
Benefits paid ( 758 ) ( 1,062 ) -- --
Fair value of plan assets at end of year $ 32,114 29,036 -- --
Funded status $ 7,927 5,999 ( 2,081) (2,053 )
Unrecognized net actuarial (gain) loss 3,661 200 ( 1,583) (1,741 )
Unrecognized prior service cost -- -- -- --
Unrecognized net obligation remaining -- -- -- --
Prepaid (accrued) benefit cost $ 11,588 6,199 ( 3,664) ( 3,794 )
The health care cost trend rate used to measure the expected cost of the Postretirement Plan benefits is assumed to be six
and one-half percent in 2001, 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 $181 and $159, respectively, as of February 3, 2001, and would change the net periodic cost
by approximately $13 and $13, respectively, during fiscal 2000.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued