Barnes and Noble 2002 Annual Report Download - page 39

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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 2002 2001 2002 2001
Change in benefit obligation:
Benefit obligation at beginning of year $ 26,499 24,187 2,541 2,081
Interest cost 1,951 1,869 251 175
Actuarial loss 4,643 2,525 1,438 569
Benefits paid ( 1,445 ) ( 419 ) ( 329 ) ( 284 )
Settlement -- ( 1,663 ) -- --
Benefit obligation at end of year $ 31,648 26,499 3,901 2,541
Change in plan assets:
Fair value of plan assets at beginning of year $ 28,973 32,114 -- --
Actual loss on assets ( 2,221 ) ( 379 ) -- --
Employer contributions -- -- -- --
Settlement -- ( 2,343 ) -- --
Benefits paid ( 1,446 ) ( 419 ) -- --
Fair value of plan assets at end of year $ 25,306 28,973 -- --
Funded status $ ( 6,342 ) 2,474 ( 3,901 ) ( 2,541 )
Unrecognized net actuarial (gain) loss 18,456 9,401 491 ( 941 )
Net amount recognized $ 12,114 11,875 ( 3,410 ) ( 3,482 )
Amounts recognized in the statement
of financial position consist of:
Prepaid (accrued) benefit cost $ -- 11,875 ( 3,410) ( 3,482 )
Accrued benefit liability ( 6,342 ) -- -- --
Accumulated other comprehensive income 18,456 -- -- --
Net amount recognized $ 12,114 11,875 ( 3,410 ) ( 3,482 )
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 Postretirement 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 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 $328 and $291, respectively, as of February
1, 2003, and would change the net periodic cost by approximately $22 and $19, respectively, during fiscal 2002.
[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
38
2002 Annual ReportBarnes & Noble, Inc.