Pier 1 2008 Annual Report Download - page 59

Download and view the complete annual report

Please find page 59 of the 2008 Pier 1 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 140

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140

Measurement of obligations for the Plans is calculated as of each fiscal year end. The following provides
a reconciliation of benefit obligations and funded status of the Plans as of March 1, 2008 and March 3, 2007
(in thousands):
2008 2007
Change in projected benefit obligation:
Projected benefit obligation, beginning of year ...................... $16,460 $ 38,936
Service cost ............................................... 498 2,405
Interest cost ............................................... 764 1,931
Actuarial loss (gain)
(1)
....................................... 5,238 (1,317)
Benefits paid (including settlements) ............................. (6,351) (25,495)
Projected benefit obligation, end of year .......................... $16,609 $ 16,460
Reconciliation of funded status:
Projected benefit obligation .................................... $16,609 $ 16,460
Plan assets ................................................ — —
Funded status .............................................. $(16,609) $(16,460)
Accumulated benefit obligation ................................... $(16,609) $(16,122)
Amounts recognized in the balance sheets:
Current liability ............................................ $ (326) $ (6,285)
Noncurrent liability .......................................... (16,282) (10,175)
Accumulated other comprehensive loss, pre-tax ..................... 6,311 3,323
Net amount recognized ....................................... $(10,297) $(13,137)
Cumulative other comprehensive loss, net of taxes of $3,291 ........... $ 3,020 $ 32
Weighted average assumptions used to determine:
Benefit obligation, end of year:
Discount rate ............................................ 5.00% 5.50%
Lump-sum conversion discount rate ............................ 2.75% 2.75%
Rate of compensation increase
(2)
.............................. 0.00% 5.00%
Net periodic benefit cost for years ended:
Discount rate ............................................ 5.50% 5.00%
Lump-sum conversion discount rate ............................ 2.75% 2.75%
Rate of compensation increase
(2)
.............................. 0.00% 5.00%
(1) Actuarial loss for fiscal 2008 includes the impact from the addition of the Company’s President and Chief Executive Officer to the
Plan during the year. Pursuant to his employment agreement, he was entitled to participate in the Plan with the same level of benefit
as his accrued benefit at his former employer.
(2) The rate of compensation increase shown above reflects no increase anticipated for fiscal 2009. An increase of 5.00% was assumed
for fiscal years 2010 and thereafter.
57
Pier 1 Imports, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)