Pier 1 2011 Annual Report Download - page 57

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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 26, 2011 and February 27,
2010 (in thousands):
2011 2010
Change in projected benefit obligation:
Projected benefit obligation, beginning of year $ 17,091 $ 17,622
Service cost 1,121 897
Interest cost 674 764
Actuarial loss 2,351 201
Benefits paid (including settlements) (2,860) (1,784)
Curtailment - (609)
Projected benefit obligation, end of year $ 18,377 $ 17,091
Reconciliation of funded status:
Projected benefit obligation $ 18,377 $ 17,091
Plan assets - -
Funded status $ (18,377) $ (17,091)
Accumulated benefit obligation $ (18,377) $ (17,091)
Amounts recognized in the balance sheets:
Current liability $ (118) $ (3,090)
Noncurrent liability (18,259) (14,001)
Accumulated other comprehensive loss, pre-tax 4,688 3,000
Net amount recognized $ (13,689) $ (14,091)
Cumulative other comprehensive loss, net of taxes of $3,291
in fiscal 2011 and 2010 $ 1,397 $ (291)
Weighted average assumptions used to determine:
Benefit obligation, end of year:
Discount rate 4.25% 4.75%
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 4.75% 5.00%
Lump-sum conversion discount rate 5.00% 5.00%
Rate of compensation increase (1) 0.00% 0.00%
(1) The rate of compensation increase shown above reflects no increase anticipated for fiscal 2012. An
increase of 3.0% was assumed for fiscal years 2013 and thereafter.
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