Big Lots 2014 Annual Report Download - page 139
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61
NOTE 8 – EMPLOYEE BENEFIT PLANS
Pension Benefits
We maintain the Pension Plan and Supplemental Pension Plan covering certain employees whose hire date was on or before
April 1, 1994. Benefits under each plan are based on credited years of service and the employee's compensation during the last
five years of employment. The Supplemental Pension Plan is maintained for certain highly compensated executives whose
benefits were frozen in the Pension Plan in 1996. The Supplemental Pension Plan is designed to pay benefits in the same
amount as if the participants continued to accrue benefits under the Pension Plan. We have no obligation to fund the
Supplemental Pension Plan, and all assets and amounts payable under the Supplemental Pension Plan are subject to the claims
of our general creditors.
The components of net periodic pension expense were comprised of the following:
(In thousands) 2014 2013 2012
Service cost - benefits earned in the period $ 1,951 $ 2,086 $ 2,171
Interest cost on projected benefit obligation 3,218 3,041 3,292
Expected investment return on plan assets (3,219)(2,893)(3,089)
Amortization of prior service cost (34)(34)(34)
Amortization of transition obligation — 12 13
Amortization of actuarial loss 1,497 1,692 2,345
Settlement loss 1,868 83 298
Net periodic pension cost $ 5,281 $ 3,987 $ 4,996
In 2014, 2013, and 2012, we incurred pretax non-cash settlement charges of $1.9 million, $0.1 million and $0.3 million,
respectively. The settlement charges were caused by lump sum benefit payments made to plan participants in excess of
combined annual service cost and interest cost for each year.
The weighted-average assumptions used to determine net periodic pension expense were:
2014 2013 2012
Discount rate 5.0% 4.6% 5.0%
Rate of increase in compensation levels 3.0% 3.5% 3.5%
Expected long-term rate of return 6.0% 5.1% 5.5%
The weighted-average assumptions used to determine benefit obligations were:
2014 2013
Discount rate 3.3% 5.0%
Rate of increase in compensation levels 2.8% 3.0%