Barnes and Noble 2001 Annual Report Download - page 35

Download and view the complete annual report

Please find page 35 of the 2001 Barnes and Noble annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52

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 2001 2000 2001 2000
Change in benefit obligation:
Benefit obligation at beginning of year $ 24 ,1 8 7 2 3 , 0 37 2 , 0 8 1 2,053
Interest cost 1,869 1 ,77 9 175 151
Actuarial loss 2 , 5 2 5 129 569 54
Benefits paid ( 419 ) (758) (284) ( 177 )
Settlement ( 1 ,663 ) -- -- --
Benefit obligation at end of year $ 2 6,499 2 4 ,1 8 7 2 , 5 4 1 2,081
Change in plan assets:
Fair value of plan assets at beginning of year $ 3 2 ,1 1 4 2 9,036 -- --
Actual loss on assets ( 379) ( 446 ) -- --
Employer contributions -- 4,282 -- --
Settlement ( 2,343 ) -- -- --
Benefits paid ( 419 ) (758) -- --
Fair value of plan assets at end of year $ 2 8 , 973 3 2 ,1 1 4 -- --
Funded status $ 2 , 474 7, 9 2 7 ( 2 , 5 41 ) ( 2,081 )
Unrecognized net actuarial (gain) loss 9 , 4 0 1 3 , 6 61 ( 941 ) (1,583 )
Prepaid (accrued) benefit cost $ 1 1, 8 7 5 1 1 ,588 ( 3,482 ) ( 3,664 )
Settlements in the form of lump sum cash payments were
made in fiscal 2001 to plan participants in exchange for
their rights to receive specified pension benefits.
The health-care cost trend rate used to measure the
expected cost of the Postre t i rement Plan benefits is
assumed to be nine percent in 2002 declining at one
percent decrements each year through 2005 and one-
half percent decrements through 2007 to five percent in
2007 and each year thereafter. The health-care cost
t rend 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 postre t i rement benefit obligation
by approximately $216 and $191, respectively, as of
February 2, 2002, and would change the net periodic
cost by approximately $16 and $13, respectively, during
fiscal 2001.
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
2 0 0 1 A n n u a l R e p o r t ■B a r n e s & N o b l e , I n c .
35