Coach 2002 Annual Report Download - page 61

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Table of Contents
COACH, INC.
Notes to Consolidated Financial Statements — (Continued)
(dollars and shares in thousands, except per share data)
Coach sponsors a noncontributory defined benefit plan, The Coach Leatherware Company, Inc. Supplemental Pension Plan, for
individuals who are a part of collective bargaining arrangements.
Employees who met certain eligibility requirements and were not part of a collective bargaining arrangement participate in defined benefit
pension plans sponsored by Sara Lee through June 30, 2001. These defined benefit pension plans include employees from a number of
domestic Sara Lee business units. The annual cost of the Sara Lee defined benefit plans is allocated to all of the participating businesses
based upon a specific actuarial computation. All obligations pursuant to these plans are obligations of Sara Lee.
The annual expense incurred by Coach for the defined contribution and benefit plans is as follows:
Fiscal Year Ended
June 28, June 29, June 30,
2003 2002 2001
Coach, Inc. Savings and Profit Sharing Plan $5,308 $3,926 $ —
Coach Leatherware Company, Inc. Supplemental Pension Plan 51 71 110
Patricipation in Sara Lee sponsored defined benefit plans — — 3,542
Total expense $5,359 $3,997 $3,652
The components of the Coach Leatherware Company, Inc. Supplemental Pension Plan expense were:
Fiscal Year Ended
June 28, June 29, June 30,
2003 2002 2001
Components of defined benefit net periodic pension costs (benefit):
Service cost $15 $15 $183
Interest cost 370 350 337
Expected return on assets (381) (381) (415)
Amortization of:
Net initial asset — — (48)
Prior service cost 1 1 29
Net actuarial loss 46 86 24
Net periodic pension cost $51 $71 $110
The funded status of the Coach Leatherware Company, Inc. Supplemental Pension Plan at the respective year ends was:
Fiscal Year Ended
June 28, June 29, June 30,
2003 2002 2001
Projected benefit obligation:
Beginning of year $5,414 $5,515 $5,289
Service cost 15 15 183
Interest cost 370 350 337
Benefits paid (218) (187) (177)
Actuarial loss (gain) 402 (279) (117)
Benefit obligation at end of year $5,983 $5,414 $5,515
57