Barnes and Noble 2001 Annual Report Download - page 34

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9. EMPLOY E E S ’ RETIREMENT AND DEFINED
CONTRIBUTION PLA N S
As of December 31, 1999, substantially all employees of
the Company were covered under a noncontributory
defined benefit pension plan (the Pension Plan). As of
January 1, 2000, the Pension Plan was amended so that
employees no longer earn benefits for subsequent
service. Subsequent service continues to be the basis
for vesting of benefits not yet vested at December 31,
1999 and the Pension Plan will continue to hold assets
and pay benefits. The amendment was treated as a
curtailment in fiscal 1999 resulting in a pre-tax gain of
$14,142 which is included as a reduction of selling and
administrative expenses.
The Company maintains defined contribution plans
(the Savings Plans) for the benefit of substantially
all employees. In addition, the Company pro v i d e s
c e rtain health care and life insurance benefits (the
P o s t re t i rement Plan) to re t i r ed employees, limited to
those receiving benefits or re t i r ed as of April 1,
1 9 9 3 .
A summary of the components of net periodic cost for the Pension Plan and the Postretirement Plan follows:
Pension Plan Postretirement Plan
Fiscal Year 2001 2000 1999 2001 2000 1999
Service cost $ -- -- 4 , 5 3 5 -- -- --
Interest cost 1 ,869 1 ,7 7 9 2,349 175 151 151
Expected return on plan assets ( 3,030 ) ( 2,887) ( 2,494 ) -- -- --
Net amortization and deferral 43 -- 32 ( 73 ) ( 104) ( 123)
Net periodic expense (income) $ ( 1 ,1 1 8 ) ( 1 ,1 0 8 ) 4 , 4 22 102 47 28
Total Company contributions charged to employee benefit expenses for the Savings Plans were $5,929, $5,681 and
$3,374 during fiscal 2001, 2000 and 1999, respectively.
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 2001 2000 1999 2001 2000 1999
Discount rate 7.3% 7.8% 7.8% 7.3% 7.8% 7.8%
Expected return on plan assets 9.5% 9.5% 9.5% -- -- --
Assumed rate of compensation increase* N/A 4.8% 4.8% -- -- --
* A graded salary scale was used.
N O T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S c o n t i n u e d
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