Safeway 2009 Annual Report Download - page 79

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note K: 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. 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 January 2, 2010 and a statement of the funded status as of year-end 2009 and
year-end 2008. Activity for 2009 includes the removal of the Canadian money purchase plan which had been previously
presented within the table but has since been determined to be a defined contribution plan (in millions):
2009 2008
Change in projected benefit obligation:
Beginning balance $ 2,009.0 $ 2,342.0
Service cost 39.4 101.7
Interest cost 116.0 102.3
Plan amendments (15.1) (3.2)
Actuarial loss (gain) 157.1 (284.1)
Benefit payments (121.4) (156.9)
Reclassification of money purchase plan component (138.1) –
Currency translation adjustment 48.6 (92.8)
Ending balance $ 2,095.5 $ 2,009.0
2009 2008
Change in fair value of plan assets:
Beginning balance $ 1,512.7 $ 2,295.6
Actual return on plan assets 252.8 (582.7)
Employer contributions 16.7 33.8
Benefit payments (121.4) (156.9)
Reclassification of money purchase plan component (129.6) –
Currency translation adjustment 40.9 (77.1)
Ending balance $ 1,572.1 $ 1,512.7
2009 2008
Funded status:
Fair value of plan assets $ 1,572.1 $ 1,512.7
Projected benefit obligation (2,095.5) (2,009.0)
Funded status $ (523.4) $ (496.3)
Components of net amount recognized in financial position:
Other accrued liabilities (current liability) $ (1.4) $ (1.4)
Pension and postretirement benefit obligations (non-current liability) (522.0) (494.9)
$ (523.4) $ (496.3)
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