Napa Auto Parts 2006 Annual Report Download - page 42

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Notes to Consolidated Financial Statements
(continued)
40
The estimated amounts that will be amortized from accumulated
other comprehensive (loss) income into net periodic benet cost
in 2007 are as follows:
Other
Pension Postretirement
(in thousands) Benefits Benefits
Actuarial loss $ 25,709 $ 1,424
Prior service (credit) cost (374) 371
Total $ 25,335 $ 1,795
The assumptions used in measuring the net periodic benet costs for the plans follow:
Pension Benefits Other Postretirement Benefits
(in thousands) 2006 2005 2004 2006 2005 2004
Weighted average discount rate 5.75% 6.00% 6.25% 5.75% 6.00% 6.25%
Rate of increase in future
compensation levels 3.75% 3.50% 3.25% – – –
Expected long-term rate of
return on plan assets 8.25% 8.50% 8.75% – – –
Health care cost trend covered charges – – – 9.00% 10.00% 10.00%
The effect of a one-percentage point change in the 2006
assumed health care cost trend is as follows:
(in thousands) Decrease Increase
Total service and interest cost
components of 2006 net
periodic postretirement
health care benefit cost $ (291) $ 465
Accumulated postretirement
benefit obligation for
health care benefits at
December 31, 2006 (5,749) 4,503
The Company has a dened contribution plan that covers
substantially all of its domestic employees. The Company’s
matching contributions are determined based on 20% of the
rst 6% of the covered employee’s salary. Total plan expense
was approximately $6,824,000 in 2006, $6,722,000 in
2005, and $6,034,000 in 2004.
7. Employee Benet Plans (continued)
Net periodic benet cost included the following components:
Pension Benefits Other Postretirement Benefits
(in thousands) 2006 2005 2004 2006 2005 2004
Service cost $ 50,224 $ 41,910 $ 35,740 $ 475 $ 453 $ 460
Interest cost 72,246 64,102 60,039 1,327 1,310 1,256
Expected return on plan assets (100,174) (89,422) (81,962) – – –
Amortization of prior service
(credit) cost (471) (386) (1,006) 371 371 371
Amortization of actuarial loss 26,379 16,172 13,600 1,291 1,224 996
Net periodic benefit cost $ 48,204 $ 32,376 $ 26,411 $ 3,464 $ 3,358 $ 3,083