Pier 1 2013 Annual Report Download - page 52

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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 March 2, 2013 and February 25, 2012
(in thousands):
2013 2012
Change in projected benefit obligation:
Projected benefit obligation, beginning of year $ 23,519 $ 18,377
Service cost 1,353 1,118
Interest cost 740 779
Actuarial loss 854 3,363
Benefits paid (including settlements) (893) (118)
Projected benefit obligation, end of year $ 25,573 $ 23,519
Reconciliation of funded status:
Projected benefit obligation $ 25,573 $ 23,519
Plan assets - -
Funded status $ (25,573) $ (23,519)
Accumulated benefit obligation $ 25,573 $ (23,519)
Amounts recognized in the balance sheets:
Current liability $ (129) $ (897)
Noncurrent liability (25,444) (22,622)
Accumulated other comprehensive loss, pre-tax 6,714 7,189
Net amount recognized $ (18,859) $ (16,330)
Cumulative other comprehensive loss, net of taxes of $4,033
and $4,266 in fiscal 2013 and 2012, respectively $ 2,681 $ 2,923
Weighted average assumptions used to determine:
Benefit obligation, end of year:
Discount rate 3.00% 3.25%
Lump-sum conversion discount rate 5.00% 5.00%
Rate of compensation increase (1) 3.00% 0.00%
Net periodic benefit cost for years ended:
Discount rate 3.25% 4.25%
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 an increase of 3.0% for fiscal years 2014 and thereafter for all
participants except for the Company’s CEO. The CEO’s rate of compensation is set forth in his employment agreement.
Net periodic benefit cost included the following actuarially determined components during fiscal 2013,
2012 and 2011 (in thousands):
2013 2012 2011
Service cost $ 1,353 $ 1,118 $ 1,121
Interest cost 740 779 674
Amortization of unrecognized prior service cost 410 410 410
Amortization of net actuarial loss 1,408 452 108
Settlement (488) - 145
Net periodic benefit cost $ 3,423 $ 2,759 $ 2,458
46