Napa Auto Parts 2014 Annual Report Download - page 70

Genuine Parts Company and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)
December 31, 2014
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) are
as follows:
2014 2013 2012
(In Thousands)
Current year actuarial loss (gain) ........................ $312,011 $(368,587) $114,061
Recognition of actuarial loss ............................ (26,791) (83,934) (70,161)
Current year prior service credit ......................... —— (4,217)
Recognition of prior service credit ....................... 638 7,538 30,777
Total recognized in other comprehensive income (loss) ...... $285,858 $(444,983) $ 70,460
Total recognized in net periodic benefit (income) cost and
other comprehensive income (loss) .................... $276,303 $(393,912) $ 97,228
The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic
benefit cost in 2015 are as follows in thousands:
Actuarial loss .............................................................. $38,893
Prior service credit .......................................................... (566)
Total ..................................................................... $38,327
The assumptions used in measuring the net periodic benefit (income) cost for the plans follow:
2014 2013 2012
Weighted average discount rate ...................................... 5.10% 4.17% 5.17%
Rate of increase in future compensation levels .......................... 3.04% 3.30% 3.30%
Expected long-term rate of return on plan assets ......................... 7.85% 7.83% 7.84%
Prior to 2014, the Company had two defined contribution plans that covered substantially all of its domestic
employees. The Company’s matching contributions were determined based on the employee’s participation in
the U.S. pension plan. Prior to 2014, U.S. pension plan participants who continued earning credited service after
2008 received a matching contribution of 20% of the first 6% of the employee’s salary. Other employees
received a matching contribution of 100% of the first 5% of the employee’s salary. In December 2012, the
Company approved an amendment to merge the two plans effective January 1, 2014. Beginning in 2014, all
employees receive a matching contribution of 100% of the first 5% of the employees’ salary. Total plan expense
was approximately $53,351,000 in 2014, $43,236,000 in 2013, and $43,155,000 in 2012.
8. Guarantees
The Company guarantees the borrowings of certain independently controlled automotive parts stores
(independents) and certain other affiliates in which the Company has a noncontrolling equity ownership interest
(affiliates). Presently, the independents are generally consolidated by unaffiliated enterprises that have a control-
ling financial interest through ownership of a majority voting interest in the independent. The Company has no
voting interest or other equity conversion rights in any of the independents. The Company does not control the
independents or the affiliates, but receives a fee for the guarantee. The Company has concluded that the
independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the
equity holders of the independents have the power to direct the activities that most significantly impact the enti-
ty’s economic performance including, but not limited to, decisions about hiring and terminating personnel, local
F-26