Napa Auto Parts 2008 Annual Report Download - page 42

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notes to consolidated nancial statements (continued)
december 31, 2008
7. employee benet plans (continued)
Other changes in plan assets and benefit obligations recognized in other comprehensive (loss) income are as follows:
Other Post-Retirement
Pension Benefits Benefits
(in thousands) 2008 2007 2008 2007
Current year actuarial loss (gain) $ 488,384 $ (40,508) $ 1,282 $ 3,874
Amortization of actuarial (loss) gain (17,962) (25,909) (1,616) (1,424)
Current year of prior service (cost) credit (66,349) – – –
Amortization of prior service cost (credit) 24 338 (371) (371)
Total recognized in other comprehensive income (loss) $ 404,097 $ (66,079) $ (705) $ 2,079
Total recognized in net periodic benefit cost
and other comprehensive income (loss) $ 450,956 $ (14,910) $ 3,776 $ 6,065
e estimated amounts that will be amortized from accumulated other comprehensive (loss) income into net periodic benefit cost in
2009 are as follows:
Other Post-Retirement
(in thousands) Pension Benefits Benefits
Actuarial loss $ 35,748 $ 1,705
Prior service (credit) cost (7,249) 371
Total $ 28,499 $ 2,076
e assumptions used in measuring the net periodic benefit costs for the plans follow:
Pension Benefits Other Postretirement Benefits
2008 2007 2006 2008 2007 2006
Weighted average discount rate 6.49% 6.00% 5.75% 5.75% 5.75% 5.75%
Rate of increase in future
compensation levels 3.75% 3.75% 3.75% – – –
Expected long-term rate of
return on plan assets 8.25% 8.25% 8.25% – – –
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.
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 2008 net periodic
postretirement health care
benefit cost $ (540) $ 766
Accumulated postretirement
benefit obligation for health care
benefits at December 31, 2008 (5,965) 9,620
e Company has a defined contribution plan that covers substan-
tially all of its domestic employees. e Company’s matching contri-
butions are determined based on 20% of the first 6% of the covered
employee’s salary. Total plan expense was approximately $7,252,000
in 2008, $7,245,000 in 2007, and $6,824,000 in 2006.
8. guarantees
e amended and restated master agreement to our $85,000,000
construction and lease agreement (the Agreement), discussed fur-
ther in Note 4, has a term of six years expiring in 2009 and contains
residual value guarantee provisions and other guarantees which
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