Barnes and Noble 2003 Annual Report Download - page 38

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B&N.com’s Retirement Plan allocation at December 31, 2003 and 2002, target allocation for 2004 and expected long-
term rate of return by asset category are as follows:
Weighted- Average
Target Percentage of Plan Expected Long-Term
Allocation Assets at December 31, Rate of Return
Fiscal Year 2003 2003 2002 2004
Asset Category
Large Capitalization Equities 25.0 % 24.9% 21.5 % 2.9 %
Mid Capitalization Equities 15.0 14.9 15.0 1.7
Small Capitalization Equities 15.0 15.1 15.2 1.7
International Equities 5.0 5.5 5.1 0.6
Fixed Income Core Bonds 35.0 33.1 34.4 1.9
Global Bonds 5.0 4.4 5.6 0.3
Cash -- 2.1 3.2 --
Total 100.0 % 100.0 % 100.0 % 9.1 %
Barnes & Noble.com’s investment strategy is to obtain the highest possible return commensurate with the level of
assumed risk. Investments are very well diversified within each of the major asset categories.
The expected long-term rate of return is figured by using the target allocation and expected returns for each class as in
the table stated above. The actual historical returns are also relevant. Annualized returns for periods ending December
31, 2003 have been as follows: 23.7% for one year and 6.7% for five years.
Barnes & Noble.com expects that there will be no regulatory funding requirements that will need to be made during
the fiscal year ending December 31, 2004. It is also expected that the maximum tax-deductible contributions will be
$0 under IRS rules.
Expected benefit payments for the B&N.com
Retirement Plan are as follows over future years:
Fiscal Year Ending December 31,
2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6
2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2009 – 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
37
2003 Annual Report Barnes & Noble, Inc.