Safeway 2011 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2011 Safeway annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Other Post-Retirement Benefits In addition to the Company’s pension plans, the Company sponsors plans that
provide postretirement medical and life insurance benefits to certain employees. Retirees share a portion of the cost of
the postretirement medical plans. Safeway pays all the costs of the life insurance plans. The Company also sponsors a
Retirement Restoration Plan that provides death benefits and supplemental income payments for senior executives after
retirement. All of these Other Post-Retirement Benefit Plans are unfunded.
The following table provides a reconciliation of the changes in the retirement plans’ benefit obligation and fair value of
assets over the two-year period ended December 31, 2011 and a statement of the funded status as of year-end 2011 and
year-end 2010 (in millions):
Pension
Other Post-Retirement
Benefits
2011 2010 2011 2010
Change in projected benefit obligation:
Beginning balance $2,257.2 $2,095.5 $ 132.8 $ 121.7
Service cost 39.6 36.1 2.4 2.3
Interest cost 122.9 125.8 6.8 7.2
Plan amendments 1.0 –(2.3) –
Actuarial loss 149.0 108.6 (0.5) 6.8
Plan participant contributions ––1.6 1.8
Benefit payments (136.2) (129.5) (8.9) (9.3)
Currency translation adjustment (9.0) 20.7 (0.8) 2.3
Ending balance $2,424.5 $2,257.2 $ 131.1 $ 132.8
Change in fair value of plan assets:
Beginning balance $1,652.2 $1,572.1 $–$–
Actual return on plan assets (37.9) 183.6 ––
Employer contributions 169.0 10.2 7.3 7.5
Plan participant contributions ––1.6 1.8
Benefit payments (136.2) (129.5) (8.9) (9.3)
Currency translation adjustment (5.7) 15.8 ––
Ending balance $1,641.4 $1,652.2 $–$–
Components of net amount recognized in financial position:
Other accrued liabilities (current liability) $ (1.3) $ (1.5) $ (8.4) $ (8.4)
Pension and postretirement benefit obligations (non-current liability) (781.8) (603.5) (122.7) (124.4)
Funded status $ (783.1) $ (605.0) $(131.1) $(132.8)
Amounts recognized in accumulated other comprehensive income consist of the following (in millions):
Pension
Other Post-Retirement
Benefits
2011 2010 2011 2010
Net actuarial loss $ 843.5 $583.5 $ 24.5 $ 26.1
Prior service cost (credit) 32.3 47.1 (3.5) (1.5)
$ 875.8 $630.6 $ 21.0 $ 24.6
Safeway expects approximately $88.0 million of the net actuarial pension loss and $14.2 million of the prior service cost
to be recognized as a component of net periodic benefit cost in 2012.
61