Harris Teeter 2011 Annual Report Download - page 46

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Pension Plan SERP
2011 2010 2011 2010
Change in benefit obligation:
Benefit obligation at the beginning of year $305,613 $ 264,167 $ 42,670 $ 39,929
Service cost 2,319 1,461 813 754
Interest cost 14,812 14,992 1,955 2,201
Actuarial loss (gain) (12,490) 33,523 3,005 1,018
Benefits paid (9,251) (8,530) (1,232) (1,232)
Pension benefit obligation at end of year 301,003 305,613 47,211 42,670
Change in plan assets:
Fair value of assets at the beginning of year 188,137 156,690 - -
Actual return on plan assets 6,470 19,241 - -
Employer contribution 50,000 22,000 1,232 1,232
Benefits paid (9,251) (8,531) (1,232) (1,232)
Non-investment expenses (759) (1,264) - -
Fair value of assets at end of year 234,597 188,136 - -
Funded status (66,406) (117,477) (47,211) (42,670)
Unrecognized net actuarial loss 149,215 158,886 13,538 12,054
Unrecognized prior service cost 116 195 1,549 1,797
Prepaid (accrued) benefit cost $ 82,925 $ 41,604 $(32,124) $(28,819)
Amounts recognized in the Consolidated Balance Sheets
consist of:
(Prepaid) Accrued benefit liability $ (82,925) $ (41,604) $ 32,124 $ 28,819
Accumulated other comprehensive income 149,331 159,081 15,087 13,851
Net amount recognized $ 66,406 $ 117,477 $ 47,211 $ 42,670
The Company’s defined benefit pension plans had projected and accumulated benefit obligations in excess of the fair value
of plan assets as follows (in thousands):
Pension Plan SERP
2011 2010 2011 2010
Projected benefit obligation $301,003 $305,613 $47,211 $42,670
Accumulated benefit obligation 267,972 267,523 37,325 35,569
Fair value of plan assets 234,597 188,136 - -
A minimum pension liability adjustment is required when the projected benefit obligation exceeds the fair value of plan
assets and accrued pension liabilities. This adjustment also requires the elimination of any previously recorded pension assets.
The minimum liability adjustment, net of tax benefit, is reported as a component of other comprehensive income and included
in the Statements of Consolidated Shareholders’ Equity and Comprehensive Income.
Net periodic pension expense for the Company’s defined benefit pension plans for fiscal years 2011, 2010 and 2009 included
the following components (in thousands):
Pension Plan 2011 2010 2009
Service cost $ 2,319 $ 1,461 $ 214
Interest cost 14,812 14,992 14,419
Expected return on plan assets (18,816) (15,479) (14,411)
Amortization of prior service cost 79 119 140
Recognized net actuarial loss 10,284 7,651 -
Net periodic pension expense $ 8,678 $ 8,744 $ 362
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
42