Safeway 2012 Annual Report Download - page 80

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
68
Information for Safeway’s pension plans, all of which have an accumulated benefit obligation in excess of
plan assets as of year-end 2012 and 2011, is shown below (in millions):
2012 2011
Projected benefit obligation $ 2,635.4 $ 2,424.5
Accumulated benefit obligation 2,554.5 2,347.5
Fair value of plan assets 1,845.7 1,641.4
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: 2012 2011 2010 2012 2011 2010
Estimated return on plan assets $ (123.8) $ (139.5) $ (124.5) $—$—$ —
Service cost 42.5 39.6 36.1 2.5 2.4 2.3
Interest cost 113.9 122.9 125.8 5.6 6.8 7.2
Settlement loss 5.9 1.1 — ———
Curtailment loss 1.8 —————
Amortization of prior service cost (credit) 13.9 15.8 17.3 (0.3) (0.2) (0.1)
Amortization of net actuarial loss 87.6 64.3 58.6 1.2 1.1 2.5
Net expense $ 141.8 $ 104.2 $ 113.3 $9.0$ 10.1 $ 11.9
Changes in plan assets and benefit
obligations recognized in other
comprehensive income:
Net actuarial loss (gain) $ 122.6 $ 325.4 $ 49.7 $2.1$(0.5)$ 6.7
Recognition of net actuarial loss (93.6) (65.4) (58.6) (1.2) (1.1) (2.5)
Prior service credit 0.5 1.0 — —(2.3) —
Recognition of prior service (cost) credit (15.5) (15.8) (17.3) 0.3 0.3 0.1
Total recognized in other comprehensive
income 14.0 245.2 (26.2) 1.2 (3.6) 4.3
Total net expense and changes in plan
assets and benefit obligations
recognized in other comprehensive
income $ 155.8 $ 349.4 $ 87.1 $ 10.2 $6.5$ 16.2
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.