Safeway 2009 Annual Report Download - page 80

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Amounts recognized in accumulated other comprehensive income consist of the following (in millions):
Pension benefits
2009 2008
Net actuarial pension loss $592.4 $646.9
Prior service cost 64.4 98.5
$656.8 $745.4
Safeway expects approximately $58.1 million of the net actuarial pension loss and $17.9 million of the prior service cost
to be recognized as a component of net periodic benefit cost in 2010.
Information for Safeway’s pension plans, all of which have an accumulated benefit obligation in excess of plan assets as
of year-end 2009 and 2008, is shown below (in millions):
2009 2008
Projected benefit obligation $ 2,095.5 $ 2,009.0
Accumulated benefit obligation 2,028.4 1,827.5
Fair value of plan assets 1,572.1 1,512.7
The following tables provide the components of net pension expense for the retirement plans and other changes in plan
assets and benefit obligations recognized in other comprehensive income (in millions):
Components of net pension expense: 2009 2008 2007
Estimated return on plan assets $ (110.8) $ (147.8) $ (173.6)
Service cost 39.4 101.7 93.2
Interest cost 116.0 102.3 124.8
Plan curtailment gain (0.3) ––
Amortization of prior service cost 19.3 21.9 23.0
Amortization of unrecognized losses 66.6 6.5 4.7
Net pension expense $ 130.2 $ 84.6 $ 72.1
Changes in plan assets and benefit obligations recognized in other
comprehensive income:
Net actuarial pension loss $ 12.1 $ 446.1 $ 48.6
Amortization of net actuarial pension loss (66.6) (6.5) (4.7)
Prior service credit (14.8) (2.9) –
Amortization of prior service cost (19.3) (21.9) (23.0)
Total recognized in other comprehensive income (88.6) 414.8 20.9
Total net pension expense and changes in plan assets and benefit obligations
recognized in other comprehensive income $ 41.6 $ 499.4 $ 93.0
Prior service costs are amortized on a straight-line basis over the average remaining service period of active participants.
Actuarial gains and losses are amortized over the average remaining service life of active participants when the
accumulation of such gains and losses exceeds 10% of the greater of the projected benefit obligation and the fair value
of plan assets. The Company uses its fiscal year-end date as the measurement date for its plans.
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