Barnes and Noble 2003 Annual Report Download - page 35

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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 2003 2002 2003 2002
Change in benefit obligation:
Benefit obligation at beginning of year $ 31,648 26,499 3,901 2,541
Interest cost 2,028 1,951 282 251
Actuarial loss 1,311 4,643 995 1,438
Benefits paid (1,695 ) ( 1,445 ) ( 500 ) ( 329 )
Benefit obligation at end of year $ 33,292 31,648 4,678 3,901
Change in plan assets:
Fair value of plan assets at beginning of year $ 25,306 28,973 -- --
Actual gain (loss) on assets 6,273 ( 2,221 ) -- --
Employer contributions -- -- -- --
Benefits paid (1,695 ) ( 1,446 ) -- --
Fair value of plan assets at end of year $ 29,884 25,306 -- --
Funded status $ ( 3,408 ) ( 6,342 ) ( 4,678) ( 3,901 )
Unrecognized net actuarial loss 14,522 18,456 1,435 491
Net amount recognized $ 11,114 12,114 ( 3,243 ) ( 3,410 )
Amounts recognized in the statement
of financial position consist of:
Prepaid (accrued) benefit cost $ -- -- ( 3,243 ) ( 3,410 )
Accrued benefit liability ( 3,408 ) ( 6,342 ) -- --
Accumulated other comprehensive income 14,522 18,456 -- --
Net amount recognized $ 11,114 12,114 ( 3,243 ) ( 3,410 )
The health-care cost trend rate used to measure the expected cost of the Postretirement Plan benefits is assumed to be
nine percent in 2004 declining at one percent decrements each year through 2007 and one-half percent decrements
through 2009 to five percent in 2009 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 $401 and ($354), respectively, as of
January 31, 2004, and would change the net periodic cost by approximately $25 and ($22), respectively, during fiscal
2003.
[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
34
2003 Annual ReportBarnes & Noble, Inc.