Napa Auto Parts 2004 Annual Report Download - page 37

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35
The Company also sponsors unfunded supplemental retirement plans covering employee postretirement benefit plans. The Company
uses a measurement date of December 31 for its pension and other postretirement benefit plans.
The total accumulated benefit obligation for the Company’s defined benefit pension plans was approximately $841,392,000 and
$731,025,000 at December 31, 2004 and 2003, respectively.
The assumptions used to measure the pension and other postretirement plan obligations for the plans at December 31, 2004 and
2003 were:
A 10% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2005. The rate was assumed to
decrease ratably to 5% in 2010 and thereafter.
The fair values of plan assets for the Company’s U.S. pension plans included in the above were $875,236,000 and $757,684,000 at
December 31, 2004 and 2003, respectively.
Pension Benefits Other Postretirement Benefits
(in thousands) 2004 2003 2004 2003
Changes in benefit obligation
Benefit obligation at beginning of year $ 943,023 $ 827,379 $ 24,408 $ 10,018
Service cost 35,740 32,488 460 90
Interest cost 60,039 57,520 1,256 481
Plan participants’ contributions 2,338 2,005 3,297 3,209
Plan amendments — — — (2,104)
Actuarial loss/(gain) 21,255 41,793 (483) 17,689
Exchange rate loss 6,496 12,641 — —
Curtailments — (64) — —
Gross benefits paid (33,033) (30,739) (6,233) (4,975)
Benefit obligation at end of year $1,035,858 $ 943,023 $ 22,705 $ 24,408
Pension Benefits Other Postretirement Benefits
2004 2003 2004 2003
Weighted-average discount rate 6.00% 6.25% 6.00% 6.25%
Rate of increase in future compensation levels 3.50% 3.25% ——
Pension Benefits Other Postretirement Benefits
(in thousands) 2004 2003 2004 2003
Changes in plan assets
Fair value of plan assets at beginning of year $ 834,015 $ 716,008 $ — $ —
Actual return on plan assets 90,385 103,712 ——
Exchange rate gain 6,429 13,274 ——
Employer contributions 62,737 29,755 2,936 1,766
Plan participants’ contribution 2,338 2,005 3,297 3,209
Gross benefits paid (33,033) (30,739) (6,233) (4,975)
Fair value of plan assets at end of year $ 962,871 $ 834,015 $— $ —