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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 2005 2004 2005 2004
Change in benefit obligation:
Benefit obligation at beginning of year
$ 38,712 34,231 5,030 4,678
Interest cost
2,284 2,245 176 285
Actuarial (gain) loss
(255) 3,652 (1,673) 1,179
Medicare prescription subsidy
— — — (537)
Benefits paid
(1,478) (1,416) (298) (575)
Benefit obligation at end of year
$ 39,263 38,712 3,235 5,030
Change in plan assets:
Fair value of plan assets at beginning of year
$ 32,027 30,872 — —
Actual return on assets
3,030 2,571 — —
Employer contributions
——— —
Benefits paid
(1,478) (1,416) — —
Fair value of plan assets at end of year
$ 33,579 32,027 — —
Funded status
$ (5,685) (6,685) (3,235) (5,030)
Unrecognized net actuarial loss
14,951 17,025 317 1,993
Net amount recognized
$ 9,266 10,340 (2,918) (3,037)
Amounts recognized in the statement
of financial position consist of:
Prepaid (accrued) benefit cost
$ — — (2,918) (3,037)
Accrued benefit liability
(5,685) (6,685) — —
Accumulated other comprehensive income
14,951 17,025 — —
Net amount recognized
$ 9,266 10,340 (2,918) (3,037)
The health-care cost trend rate used to measure the expected cost of the Postretirement Plan benefits is assumed to be
9% in 2006 declining at 1% decrements each year through 2010 to 5% in 2010 and each year thereafter. The health-
care cost trend assumption has an effect on the amounts reported. For example, a 1% increase or decrease in the health-
care cost trend rate would change the accumulated postretirement benefit obligation by approximately $267 and
($228), respectively, as of January 28, 2006, and would change the net periodic cost by approximately $15 and ($13),
respectively, during fiscal 2005.
[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
33
2005 Annual Report Barnes & Noble, Inc.