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[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
34
2004 Annual ReportBarnes & Noble, Inc.
A summary of the components of net periodic cost for the Pension Plan and the Postretirement Plan follows:
Pension Plan Postretirement Plan
Fiscal Year 2004 2003 2002 2004 2003 2002
Service cost
$-- -- -- -- -- --
Interest cost
2,245 2,083 2,002 285 282 251
Expected return on plan assets
(2,679) (2,259) (2,811) -- -- --
Net amortization and deferral
1,596 1,184 542 84 51 6
Total expense (income)
$1,162 1,008 (267) 369 333 257
Total Company contributions charged to employee benefit expenses for the Savings Plan were $7,965, $7,140 and
$6,709 during fiscal 2004, 2003 and 2002, respectively.
Actuarial assumptions used for disclosure of the Pension Plan and the Postretirement Plan are as follows:
Pension Plan Postretirement Plan
Fiscal Year 2004 2003 2002 2004 2003 2002
Discount rate
6.0% 6.3% 6.5% 6.0% 6.3% 6.5%
Expected return on plan assets
8.8% 8.8% 8.8% -- -- --
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 2004 2003 2002 2004 2003 2002
Discount rate
6.3% 6.5% 7.3% 6.3% 6.5% 7.3%
Expected return on plan assets
8.8% 8.8% 9.5% -- -- --
The following table provides a reconciliation of benefit obligations, plan assets and funded staus of the Pension Plan
and the Postretirement Plan:
Pension Plan Postretirement Plan
Fiscal Year 2004 2003 2004 2003
Change in benefit obligation:
Benefit obligation at beginning of year
$ 34,231 32,522 4,678 3,901
Interest cost
2,245 2,083 285 282
Actuarial loss
3,652 1,337 1,179 995
Medicare prescription subsidy
-- -- (537 ) --
Benefits paid
(1,416 ) (1,711 ) (575 ) (500 )
Benefit obligation at end of year
$38,712 34,231 5,030 4,678
Change in plan assets:
Fair value of plan assets at beginning of year
$30,872 26,134 -- --
Actual gain on assets
2,571 6,449 -- --
Employer contributions
-- -- -- --
Benefits paid
(1,416 ) (1,711) -- --
Fair value of plan assets at end of year
$32,027 30,872 -- --
Funded status
$(6,685 ) (3,359 ) (5,030 ) (4,678 )
Unrecognized net actuarial loss
17,025 14,861 1,993 1,435
Net amount recognized
$10,340 11,502 (3,037 ) (3,243 )
Amounts recognized in the statement
of financial position consist of:
Prepaid (accrued) benefit cost
$ -- 388 (3,037 ) (3,243 )
Accrued benefit liability
(6,685 ) (3,408 ) -- --
Accumulated other comprehensive income
17,025 14,522 -- --
Net amount recognized
$10,340 11,502 (3,037 ) (3,243 )