Safeway 2011 Annual Report Download - page 80

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Information for Safeway’s pension plans, all of which have an accumulated benefit obligation in excess of plan assets as
of year-end 2011 and 2010, is shown below (in millions):
2011 2010
Projected benefit obligation $ 2,424.5 $ 2,257.2
Accumulated benefit obligation 2,347.5 2,171.9
Fair value of plan assets 1,641.4 1,652.2
The following tables provide the components of net expense for the retirement plans and other changes in plan assets
and benefit obligations recognized in other comprehensive income (in millions):
Pension
Other Post-Retirement
Benefits
Components of net expense: 2011 2010 2009 2011 2010 2009
Estimated return on plan assets $ (139.5) $(124.5) $(110.8) $– $– $–
Service cost 39.6 36.1 39.4 2.4 2.3 1.5
Interest cost 122.9 125.8 116.0 6.8 7.2 6.6
Settlement loss 1.1 –––––
Curtailment gain –– (0.3) –––
Amortization of prior service cost (credit) 15.8 17.3 19.3 (0.2) (0.1) (0.1)
Amortization of net actuarial loss 64.3 58.6 66.6 1.1 2.5 1.9
Net expense $ 104.2 $ 113.3 $ 130.2 $10.1 $11.9 $ 9.9
Changes in plan assets and benefit obligations recognized in
other comprehensive income:
Net actuarial loss (gain) $ 325.4 $ 49.7 $ 12.1 $ (0.5) $ 6.7 $ 4.8
Amortization of net actuarial loss (65.4) (58.6) (66.6) (1.1) (2.5) (1.9)
Prior service credit 1.0 – (14.8) (2.3) ––
Amortization of prior service (cost) credit (15.8) (17.3) (19.3) 0.3 0.1 0.1
Total recognized in other comprehensive income 245.2 (26.2) (88.6) (3.6) 4.3 3.0
Total net expense and changes in plan assets and benefit
obligations recognized in other comprehensive income $ 349.4 $ 87.1 $ 41.6 $ 6.5 $16.2 $12.9
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.
The actuarial assumptions used to determine year-end projected benefit obligations for pension plans were as follows:
2011 2010 2009
Discount rate:
United States plans 4.9% 5.7% 6.2%
Canadian plans 4.3% 5.0% 5.8%
Combined weighted-average rate 4.8% 5.6% 6.1%
Rate of compensation increase:
United States plans 3.0% 3.0% 3.0%
Canadian plans 2.8% 2.5% 3.0%
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