Napa Auto Parts 2007 Annual Report Download - page 40

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38
notes฀to฀consolidated฀financial฀statements฀(continued)
december฀31,฀2007
7. Employee Benefit Plans (continued)
Other
Pension Postretirement
Benefits Benefits
2007 2006 2007 2006
Changes in
benefit obligation
Benefit obligation
at beginning
of year $ 1,334,528 $ 1,236,379 $ 25,669 $ 24,267
Service cost 53,700 50,224 750 475
Interest cost 82,029 72,246 1,441 1,327
Plan participants’
contributions 3,203 2,709 3,721 1,173
Plan amendments – 1,708 – –
Actuarial (gain) loss (61,447) 9,213 3,874 2,842
Exchange rate
loss (gain) 19,039 (349) – –
Gross benefits paid (43,383) (37,602) (7,585) (5,263)
Less federal subsidy N/A N/A 770 848
Benefit obligation
at end of year $ 1,387,669 $ 1,334,528 $ 28,640 $ 25,669
e benefit obligation for the Company’s U.S. pension plans in-
cluded in the above were $1,258,892,000 and $1,225,020,000 at
December 31, 2007 and 2006, respectively. e total accumulated
benefit obligation for the Company’s defined benefit pension
plans was approximately $1,119,588,000 and $1,068,895,000 at
December 31, 2007 and 2006, respectively.
e assumptions used to measure the pension and other post-
retirement plan obligations for the plans at December 31, 2007
and 2006, were:
Other
Pension Postretirement
Benefits Benefits
2007 2006 2007 2006
Weighted-average
discount rate 6.49% 6.00% 5.75% 5.75%
Rate of increase in
future compensation
levels 3.75% 3.75% – –
An 8% annual rate of increase in the per capita cost of covered
health care benefits was assumed on December 31, 2007. e
rate was assumed to decrease ratably to 5% at December 31,
2013, and thereafter.
Other
Pension Postretirement
Benefits Benefits
(in thousands) 2007 2006 2007 2006
Changes in plan assets
Fair value of plan
assets at beginning
of year $ 1,260,538 $ 1,114,980 $ – $ –
Actual return
on plan assets 89,248 114,076 – –
Exchange rate
gain (loss) 21,030 (441) – –
Employer
contributions 35,140 66,816 3,094 3,242
Plan participants’
contribution 3,203 2,709 3,721 1,173
Benefits paid (43,383) (37,602) (6,815) (4,415)
Fair value of plan
assets at end
of year $ 1,365,776 $ 1,260,538 $ – $ –
e fair values of plan assets for the Company’s U.S. pension plans
included in the above were $1,222,686,000 and $1,139,298,000
at December 31, 2007 and 2006, respectively.
Following are the asset allocations for the Company’s funded
pension plans at December 31, 2007 and 2006, and the target
allocation for 2008, by asset category:
Target Percentage of Plan
Allocation Assets at December 31
2008 2007 2006
Asset Category
Equity securities 70% 68% 67%
Debt securities 29% 29% 31%
Real estate and other 1% 3% 2%
100% 100% 100%
At December 31, 2007 and 2006, the plan held 2,016,932 shares
of common stock of the Company with a market value of ap-
proximately $93,384,000 and $95,663,000, respectively. Divi-
dend payments received by the plan on Company stock totaled
approximately $2,945,000 and $2,723,000 in 2007 and 2006,
respectively. Fees paid during the year for services rendered by
parties in interest were based on customary and reasonable rates
for such services.