Harris Teeter 1997 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 1997 Harris Teeter annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 36

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36

Ruddick
RUDDICK CORPORATION
AND SUBSIDIARIES
28
The following table sets forth the defined benefit plans’ funded status and amounts recognized in the Company’s consol-
idated balance sheets at September 28, 1997 and September 29, 1996:
(In thousands) 1997 1996
Actuarial present value of benefit obligations:
Vested benefits $ 82,676 $ 71,585
Nonvested benefits 3,677 2,934
Accumulated benefit obligations 86,353 74,519
Effect of projected future compensation levels 23,838 19,612
Projected benefit obligations 110,191 94,131
Plans’ assets at fair market value 92,611 72,642
Projected benefit obligations in excess of plans’ assets (17,580) (21,489)
Unrecognized net asset at September 30, 1985, net of
amortization, being amortized over 15-20 years 1,541 1,935
Unrecognized net loss due to past experience
different from assumptions made (14,215) (12,412)
Unfunded accrued pension cost $ (4,906) $ (11,012)
The plans’ assets consist primarily of U. S. government securities, corporate bonds, cash equivalents and domestic equi-
ties, all managed by two banks. The contribution payable at September 28, 1997 and September 29, 1996, required to be
paid by due date of the federal income tax return, was $1,462,000 and $6,986,000, respectively.
In 1997 (1996), a 7.5% (8%) weighted average discount rate and 5% (5%) rate of increase in future payroll costs were
used in determining the actuarial present value of the projected benefit obligations. The expected long-term rate of return
on assets was 8% for both years.
Pension expense for defined benefit plans for fiscal 1997, 1996, and 1995 included the following components:
(In thousands) 1997 1996 1995
Benefits earned by employees $ 4,464 $ 4,033 $ 3,835
Interest on projected benefit obligations 7,789 7,135 6,608
Actual return on plan assets (11,560) (4,635) (7,134)
Net amortization and deferral 5,356 (1,143) 1,873
Net pension expense $ 6,049 $ 5,390 $ 5,182
The Company also has an Employee Stock Ownership Plan (ESOP), a profit-sharing plan and certain other plans.
Expenses under these plans were as follows:
(In thousands) 1997 1996 1995
ESOP $ 8,733 $ 7,866 $ 7,651
Profit-sharing 3,098 1,699 1,652
Other 2,517 2,266 2,061
The Company is involved in various lawsuits and environmental and patent matters arising in the normal course of
business. Management believes that such matters will not have a material effect on the financial condition or results
of operations of the Company.
See “Leases” for additional commitments and contingencies.