Safeway 2006 Annual Report Download - page 74

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
2006 2005
Funded status:
Fair value of plan assets $ 2,214.7 $ 2,102.8
Projected benefit obligation (2,181.6) (2,110.1)
Funded status 33.1 (7.3)
Amounts not yet recognized:
Adjustment for difference in book and tax basis of assets N/A (165.1)
Unamortized prior service cost N/A 130.9
Unrecognized actuarial loss N/A 265.8
Additional minimum liability adjustment N/A (44.9)
Net amount recognized in financial position $ 33.1 $ 179.4
Components of net amount recognized in financial position:
Prepaid pension costs 137.3 179.4
Other accrued liabilities (current liability) (1.3) –
Pension and postretirement benefit obligations (non-current liability) (102.9) –
$ 33.1 $ 179.4
Amounts recognized in accumulated other comprehensive income as a result of
adoption of SFAS No. 158 consist of:
Net actuarial loss 179.2 N/A
Prior service cost 124.9 N/A
Transition obligation 5.6 N/A
Difference in the book and tax basis of assets (165.1) N/A
Deferred taxes (47.9) N/A
Total $ 96.7 $N/A
N/A (Not Applicable): The adoption of SFAS No. 158 resulted in recognition of previously unrecognized net actuarial loss and prior
service cost on our consolidated financial position. Overall, the prepaid asset was adjusted and a liability recognized through an
adjustment to other comprehensive income.
Safeway expects approximately $5.8 million of the net actuarial loss, $22.8 million of the prior service cost and
$1.4 million of the transition obligation to be recognized as a component of net periodic benefit cost in 2007.
Underfunded plans
Year-end information for plans with accumulated benefit obligations in excess of plan assets (in millions):
2006 2005
Funded status:
Fair value of plan assets $ 567.9 $ 517.2
Projected benefit obligation (672.1) (616.6)
Funded status $(104.2) $ (99.4)
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