Safeway 2007 Annual Report Download - page 80

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note I: Employee Benefit Plans and Collective Bargaining Agreements
Retirement Plans The Company maintains defined benefit, non-contributory retirement plans for substantially all of its
employees not participating in multi-employer pension plans. In accordance with SFAS No. 158 Safeway recognizes the
funded status of its retirement plans on its consolidated balance sheet.
The following tables provide a reconciliation of the changes in the retirement plans’ benefit obligation and fair value of
assets over the two-year period ended December 29, 2007 and a statement of the funded status as of year-end 2007 and
year-end 2006 (in millions):
2007 2006
Change in projected benefit obligation:
Beginning balance $ 2,181.6 $ 2,110.1
Service cost 93.2 101.1
Interest cost 124.8 129.3
Plan amendments 8.8 29.7
Actuarial gain (7.0) (40.0)
Benefit payments (148.4) (143.8)
Currency translation adjustment 89.0 (4.8)
Ending balance $ 2,342.0 $ 2,181.6
2007 2006
Change in fair value of plan assets:
Beginning balance $ 2,214.7 $ 2,102.8
Actual return on plan assets 120.0 235.1
Employer contributions 33.8 25.0
Benefit payments (148.4) (143.8)
Currency translation adjustment 75.5 (4.4)
Ending balance $ 2,295.6 $ 2,214.7
2007 2006
Funded status:
Fair value of plan assets $ 2,295.6 $ 2,214.7
Projected benefit obligation (2,342.0) (2,181.6)
Funded status $ (46.4) $ 33.1
Components of net amount recognized in financial position:
Prepaid pension costs $ 73.2 $ 137.3
Other accrued liabilities (current liability) (1.5) (1.3)
Pension obligations (non-current liability) (118.1) (102.9)
$ (46.4) $ 33.1
2007 2006
Amounts recognized in accumulated other comprehensive income as a result of adoption
of SFAS No. 158 consist of:
Net actuarial loss N/A $ 179.2
Prior service cost N/A 124.9
Transition obligation N/A 5.6
Difference in the book and tax basis of assets N/A (165.1)
Deferred taxes N/A (47.9)
Total N/A $ 96.7
58