Harris Teeter 2012 Annual Report Download - page 45

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Substantially all full-time employees of the Company participate in one of the Company sponsored retirement plans.
Employee retirement benefits or Company contribution amounts under the various plans are a function of both the years of
service and compensation for a specified period of time before retirement. The Company’s current funding policy for the Pension
Plan is to contribute annually the amount required by regulatory authorities to meet minimum funding requirements and an
amount to increase the funding ratios over future years to a level determined by its actuaries to be effective in reducing the
volatility of contributions.
The Company’s fiscal year end is used as the measurement date for Company-sponsored defined benefit plans. The
following table sets forth the change in the benefit obligation and plan assets, as well as the funded status and amounts recognized
in the Company’s consolidated balance sheets as of October 2, 2012 and October 2, 2011 for the Pension Plan and SERP (in
thousands):
Pension Plan SERP
2012 2011 2012 2011
Change in benefit obligation:
Benefit obligation at the beginning of year $ 370,514 $374,787 $ 47,212 $ 42,670
Service cost 2,957 2,645 787 814
Interest cost 16,129 18,163 2,411 1,955
Actuarial loss (gain) 50,984 (12,483) 9,358 3,005
Gain due to curtailment - - (3,475) -
Loss due to special termination benefits - - 1,300 -
Benefits paid (16,710) (12,598) (1,221) (1,232)
Spin-off of liability to A&E plan (73,849) - - -
Pension benefit obligation at end of year 350,025 370,514 56,372 47,212
Change in plan assets:
Fair value of assets at the beginning of year 276,374 232,013 - -
Actual return on plan assets 40,549 7,877 - -
Employer contribution 50,221 50,000 1,221 1,232
Benefits paid (16,710) (12,598) (1,221) (1,232)
Non-investment expenses (830) (918) - -
Spin-off of assets to A&E plan (63,090) - - -
Fair value of assets at end of year 286,514 276,374 - -
Funded status (63,511) (94,140) (56,372) (47,212)
Unrecognized net actuarial loss 167,924 186,470 18,209 13,538
Unrecognized prior service cost 87 135 917 1,549
Prepaid (accrued) benefit cost $ 104,500 $ 92,465 $(37,246) $(32,125)
Amounts recognized in the Consolidated Balance Sheets
consist of:
(Prepaid) Accrued benefit liability $(104,500) $ (92,465) $ 37,246 $ 32,125
Accumulated other comprehensive income 168,011 186,605 19,126 15,087
Net amount recognized $ 63,511 $ 94,140 $ 56,372 $ 47,212
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
2012 2011 2012 2011
Projected benefit obligation $350,025 $370,514 $56,372 $47,211
Accumulated benefit obligation 317,303 332,962 46,639 37,325
Fair value of plan assets 286,514 276,374 - -
HARRIS TEETER SUPERMARKETS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (CONTINUED)
41