Napa Auto Parts 2010 Annual Report Download - page 54

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Table of Contents


In July 2009, the Company announced changes to the U.S. postretirement benefit plan. Effective January 1, 2010, future retirees no
longer receive employer-provided medical benefits and current pre-65 retirees no longer receive employer-provided post-65 medical
benefits (beyond an access-only arrangement).

 
   
 

Benefit obligation at beginning of year  $ 1,450,030  $ 29,318
Service cost  16,534 443
Interest cost  93,493  1,264
Plan participants’ contributions  3,219  3,735
Plan amendments  — (13,182)
Actuarial loss (gain)  (21,257)  (1,190)
Exchange rate changes  15,311 —
Gross benefits paid  (48,027)  (7,349)
Less Federal subsidy  N/A  472
Curtailments (7,219) —
Benefit obligation at end of year  $ 1,502,084  $ 13,511
The benefit obligations for the Company’s U.S. pension plans included in the above were $1,542,469,000 and $1,382,677,000 at
December 31, 2010 and 2009, respectively. The total accumulated benefit obligation for the Company’s defined benefit pension plans was
approximately $1,526,951,000 and $1,315,266,000 at December 31, 2010 and 2009, respectively.
The assumptions used to measure the pension and other postretirement plan benefit obligations for the plans at December 31, 2010
and 2009, were:

 
   
Weighted-average discount rate  6.54%  5.20%
Rate of increase in future compensation levels  3.75% —
A 7.75% annual rate of increase in the per capita cost of covered health care benefits was assumed on December 31, 2010. The rate
was assumed to decrease ratably to 4.75% at December 31, 2016, and thereafter.

 
   
 

Fair value of plan assets at beginning of year  $ 977,867   $ —
Actual return on plan assets  211,000 —
Exchange rate changes  16,028 —
Employer contributions  56,328  3,614
Plan participants’ contributions  3,219  3,735
Benefits paid  (48,027)  (7,349)
Fair value of plan assets at end of year  $1,216,415   $ —
F-19