Napa Auto Parts 2007 Annual Report Download - page 42

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40
notes฀to฀consolidated฀financial฀statements฀(continued)
december฀31,฀2007
7. Employee Benefit Plans (continued)
Net periodic benefit cost included the following components:
Pension Benefits Other Postretirement Benefits
(in thousands) 2007 2006 2005 2007 2006 2005
Service cost $ 53,700 $ 50,224 $ 41,910 $ 750 $ 475 $ 453
Interest cost 82,029 72,246 64,102 1,441 1,327 1,310
Expected return on plan assets (110,131) (100,174) (89,422) – – –
Amortization of prior service (credit) cost (338) (471) (386) 371 371 371
Amortization of actuarial loss 25,909 26,379 16,172 1,424 1,291 1,224
Net periodic benefit cost $ 51,169 $ 48,204 $ 32,376 $ 3,986 $ 3,464 $ 3,358
Other changes in plan assets and benefit obligations recognized
in other comprehensive (loss) income in 2007 are as follows:
Other
Pension Postretirement
(in thousands) Benefits Benefits
Current year actuarial
(gain) loss $ (40,508) $ 3,874
Amortization of
actuarial gain (loss) (25,909) (1,424)
Amortization of prior
service credit (cost) 338 (371)
Total recognized in other
comprehensive (loss) income $ (66,079) $ 2,079
Total recognized in net periodic
benefit cost and other
comprehensive (loss) income $ (14,910) $ 6,065
e estimated amounts that will be amortized from accumulated
other comprehensive (loss) income into net periodic benefit cost
in 2008 are as follows:
Other
Pension Postretirement
(in thousands) Benefits Benefits
Actuarial loss $ 18,037 $ 1,616
Prior service (credit)/cost (8) 371
Total $ 18,029 $ 1,987
e assumptions used in measuring the net periodic benefit costs
for the plans follow:
Other
Postretirement
Pension Benefits Benefits
2007 2006 2005 2007 2006 2005
Weighted average
discount rate 6.00% 5.75% 6.00% 5.75% 5.75% 6.00%
Rate of increase in
future compen-
sation levels 3.75% 3.75% 3.50% – – –
Expected long-term
rate of return on
plan assets 8.25% 8.25% 8.50% – – –
Health care cost
trend rate – – – 9.00% 9.00% 10.00%
e effect of a one-percentage point change in the assumed
health care cost trend rate is as follows:
(in thousands) Decrease Increase
Total service and interest cost
components of 2007 net periodic
postretirement health care benefit cost $ (408) $ 622
Accumulated postretirement
benefit obligation for health care
benefits at December 31, 2007 (5,609) 7,213
e Company has a defined contribution plan that covers sub-
stantially all of its domestic employees. e Company’s matching
contributions are determined based on 20% of the first 6% of the
covered employee’s salary. Total plan expense was approximately
$7,245,000 in 2007, $6,824,000 in 2006, and $6,722,000 in 2005.