Pier 1 2010 Annual Report Download - page 66

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
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 February 27, 2010 and February 28,
2009 (in thousands):
2010 2009
Change in projected benefit obligation:
Projected benefit obligation, beginning of year $ 17,622 $ 16,609
Service cost 897 923
Interest cost 764 923
Actuarial (gain) loss 201 (715)
Benefits paid (including settlements) (1,784) (118)
Curtailment (609) -
Projected benefit obligation, end of year $ 17,091 $ 17,622
Reconciliation of funded status:
Projected benefit obligation $ 17,091 $ 17,622
Plan assets - -
Funded status $ (17,091) $ (17,622)
Accumulated benefit obligation $ (17,091) $ (17,622)
Amounts recognized in the balance sheets:
Current liability $ (3,090) $ (1,784)
Noncurrent liability (14,001) (15,838)
Accumulated other comprehensive loss, pre-tax 3,000 4,232
Net amount recognized $ (14,091) $ (13,390)
Cumulative other comprehensive loss, net of taxes of $3,291
in fiscal 2010 and 2009 $ (291) $ 941
Weighted average assumptions used to determine:
Benefit obligation, end of year:
Discount rate 4.75% 5.00%
Lump-sum conversion discount rate 5.00% 5.00%
Rate of compensation increase (1) 0.00% 0.00%
Net periodic benefit cost for years ended:
Discount rate 5.00% 5.00%
Lump-sum conversion discount rate 5.00% 2.75%
Rate of compensation increase (1) 0.00% 0.00%
(1) The rate of compensation increase shown above reflects no increase anticipated for fiscal 2011. An increase of 3.0%
was assumed for fiscal years 2012 and thereafter.
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