|
|
The company has several noncontributory defined benefit plans and defined contribution plans covering most employees. Total costs associated with the company's defined contribution benefit plans in 2000, 1999 and 1998 were $11.5 million, $10.9 million and $9.9 million, respectively. Benefits for defined benefit pension plans covering hourly employees are provided based on stated amounts for each year of service while plan benefits covering salaried employees are based on final average compensation. The company's funding policy is to make annual contributions of not less than the minimum required by applicable regulations. The company provides medical and life insurance benefits to certain retired employees. Eligible employees who retired prior to January 1, 1987, remain on the medical plan in effect when they retired. The medical plan for eligible employees who retired after January 1, 1987, is automatically modified to incorporate plan benefit and plan provision changes whenever they are made to the active employee plan. Employees hired after January 1, 1990, are eligible for postretirement medical coverage but must pay the full cost of the coverage.
The following is a reconciliation of the beginning and ending balances of the benefit obligation and the fair value of plan assets:
Pension Benefits Other Benefits
(In Thousands) 2000 1999 2000 1999
Change in benefit obligation:
Benefit obligation at
beginning of year $485,937 $492,614 $266,676 $274,205
Service cost 10,964 10,921 2,229 2,920
Interest cost 35,455 33,298 19,284 18,555
Actuarial loss (gain) 11,102 (17,712) 15,831 (10,137)
Benefits paid (42,959) (33,184) (22,309) (18,867)
Benefit obligation
at end of year 500,499 485,937 281,711 266,676
Change in plan assets:
Fair value of plan assets
at beginning of year 571,241 566,216
Actual return on plan assets 14,530 35,684
Employer contributions 11,970 2,525
Benefits paid (42,959) (33,184)
Fair value of plan assets
at end of year 554,782 571,241
Funded status 54,283 85,304 (281,711) (266,676)
Unrecognized net
transition liability 2,144 2,947
Unrecognized actuarial
(gain) loss (16,307) (66,406) 26,641 10,866
Unrecognized prior
service cost 6,550 7,990 (2,382) (2,734)
Benefit payments
subsequent to
measurement date 256 193 5,334 6,308
Net amount recognized $ 46,926 $ 30,028 $(252,118) $(252,236)
|
As of the 2000 valuation date, plan assets included common stock of the company having a market value of $57.7 million. Dividends paid during the year on shares held by the plan were $1.2 million.
Amounts recognized in the consolidated balance sheets as of October 28, 2000, and October 30, 1999, were as follows:
Pension Benefits Other Benefits
(In Thousands) 2000 1999 2000 1999
Prepaid benefit cost $80,265 $68,662
Accrued benefit liability (50,981) (44,263) $(257,452) $(258,544)
Intangible asset 3,170 3,891
Accumulated other
comprehensive loss 14,216 1,545
Benefit payments subsequent
to measurement date 256 193 5,334 6,308
Net amount recognized $46,926 $30,028 $(252,118) $(252,236)
|
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligation in excess of plan assets were $55.0 million, $50.7 million and $0, respectively, as of October 28, 2000, and $49.5 million, $44.3 million and $0, respectively, as of October 30, 1999.
Weighted-average assumptions for pension and other benefits were as follows:
2000 1999 1998
Discount rate 7.50% 7.50% 7.00%
Rate of future compensation increase 5.00% 5.00% 5.00%
Expected long-term return on plan assets 9.50% 9.50% 9.50%
|
For measurement purposes, a 5.9% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2001. The rate was assumed to decrease to 5.5% for 2004 and remain at that level thereafter.
Net periodic cost of defined benefit plans included the following:
Pension Benefits
(In Thousands) 2000 1999 1998
Service cost $10,964 $10,921 $ 9,567
Interest cost 35,455 33,298 32,628
Expected return on plan assets (52,724) (52,293) (50,137)
Amortization of transition obligation 803 803 803
Amortization of prior service cost 1,440 1,153 1,153
Recognized actuarial (gain) loss (803) (878) (1,967)
Net periodic benefit cost $(4,865) $(6,996) $(7,953)
Other Benefits
(In Thousands) 2000 1999 1998
Service cost $ 2,229 $ 2,920 $ 3,438
Interest cost 19,284 18,555 18,384
Amortization of prior service cost (352) (351) (351)
Recognized actuarial (gain) loss 56 1,446 1,362
Net periodic benefit cost $21,217 $22,570 $22,833
|
Assumed health care cost trend rates have a significant impact on the amounts reported for the health care plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects:
1-Percentage-Point
(In Thousands) Increase Decrease
Effect on total of service and interest cost components $ 797 $ (707)
Effect on the postretirement benefit obligation 26,971 (15,362)
|
|
|
