Sysco 2007 Annual Report Download - page 77

Funded Status
The funded status of SYSCO’s defined benefit plans is presented in the table below. The caption “Pension Benefits”
includes both the Retirement Plan and the SERP.
June 30, 2007 July 1, 2006 June 30, 2007 July 1, 2006
Pension Benefits Other Postretirement Plans
Change in benefit obligation:
Benefit obligation at beginning of year _________________ $1,381,409,000 $1,574,718,000 $ 8,045,000 $ 8,818,000
Service cost ________________________________________ 84,654,000 100,028,000 451,000 510,000
Interest cost _______________________________________ 91,311,000 83,600,000 531,000 472,000
Amendments _______________________________________ 3,410,000 7,800,000 ——
Actuarial (gain) loss _________________________________ 46,463,000 (284,307,000) (359,000) (1,473,000)
Actual expenses ____________________________________ (10,814,000) (7,906,000) ——
Total disbursements _________________________________ (31,106,000) (24,331,000) 7,000 (57,000)
Settlements/Adjustments (Measurement date change) ___ —(68,193,000) —(225,000)
Benefit obligation at end of year ______________________ 1,565,327,000 1,381,409,000 8,675,000 8,045,000
Change in plan assets:
Fair value of plan assets at beginning of year ___________ 1,282,302,000 1,141,638,000 ——
Actual return on plan assets _________________________ 259,471,000 106,584,000 ——
Employer contribution _______________________________ 90,836,000 207,645,000 (7,000) 57,000
Actual expenses ____________________________________ (10,814,000) (7,906,000) ——
Total disbursements _________________________________ (31,106,000) (24,331,000) 7,000 (57,000)
Settlements/Adjustments (Measurement date change) ___ —(141,328,000) ——
Fair value of plan assets at end of year ________________ 1,590,689,000 1,282,302,000 ——
Funded status ______________________________________ 25,362,000 (99,107,000) (8,675,000) (8,045,000)
Unrecognized net actuarial loss (gain) _________________ N/A 264,855,000 N/A (2,515,000)
Unrecognized net obligation due to initial application of
SFAS No. 87/106 ________________________________ N/A —N/A 1,074,000
Unrecognized prior service cost _______________________ N/A 47,953,000 N/A 793,000
Prepaid (accrued) benefit cost at measurement date _____ 25,362,000 213,701,000 (8,675,000) (8,693,000)
Contributions after measurement date, before end of
year ___________________________________________ 993,000 666,000 85,000 —
Prepaid (accrued) benefit cost at end of year____________ $ 26,355,000 $ 214,367,000 $(8,590,000) $(8,693,000)
In order to meet its obligations under the SERP, SYSCO maintains life insurance policies on the lives of the participants
with carrying values of $182,769,000 as of June 30, 2007 and $153,659,000 as of July 1, 2006. These policies are not
included as plan assets or in the funded status amounts in the table above. SYSCO is the sole owner and beneficiary
of such policies. The projected benefit obligation for the SERP was $327,028,000 and $327,450,000 as of June 30, 2007
and July 1, 2006, respectively.
The amounts recognized on SYSCO’s consolidated balance sheet related to its defined benefit plans are as follows:
June 30, 2007 July 1, 2006 June 30, 2007 July 1, 2006
Pension Benefits Other Postretirement Plans
Prepaid pension cost __________________________________ $ 352,390,000 $ 388,650,000 $—$—
Intangible asset (Other assets)__________________________ N/A 45,619,000 N/A —
Current accrued benefit liability (Accrued expenses) _______ (10,784,000) N/A (183,000) N/A
Non-current accrued benefit liability (Other long-term
liabilities) ________________________________________ (315,251,000) (237,932,000) (8,407,000) (8,693,000)
Minimum pension liability (Accumulated other
comprehensive income (loss))_______________________ N/A 18,030,000 N/A —
Net amount recognized ________________________________ $ 26,355,000 $ 214,367,000 $(8,590,000) $(8,693,000)
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