Sysco 2007 Annual Report Download - page 78

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Accumulated other comprehensive loss as of June 30, 2007 consists of the following amounts that have not yet been
recognized in net benefit cost:
Pension Benefits
Other
Postretirement
Plans Total
Unrecognized prior service cost____________________________________ $ 45,678,000 $ 591,000 $ 46,269,000
Unrecognized actuarial losses (gains)_______________________________ 158,906,000 (2,741,000) 156,165,000
Unrecognized transition obligation _________________________________ — 920,000 920,000
Total ___________________________________________________________ $204,584,000 $(1,230,000) $203,354,000
Prior to the adoption of the recognition and disclosure provisions of SFAS 158, minimum pension liability adjustments
resulted when the accumulated benefit obligation exceeded the fair value of plan assets and was recorded so that the
recorded pension liability is at a minimum equal to the unfunded accumulated benefit obligation. Minimum pension liability
adjustments were non-cash adjustments that were reflected as an increase (or decrease) in the pension liability and an
offsetting charge (or benefit) to shareholders’ equity, net of tax, through comprehensive loss (or income) rather than net
income. The amounts reflected in accumulated other comprehensive income related to minimum pension liability, was
a charge of $18,030,000 as of July 1, 2006.
The accumulated benefit obligation for the defined benefit pension plans was $1,377,832,000 and $1,187,185,000 as of
June 30, 2007 and July 1, 2006, respectively.
Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan
assets is as follows:
June 30, 2007 July 1, 2006 June 30, 2007 July 1, 2006
Pension Benefits Other Postretirement Plans
Accumulated benefit obligation/aggregate benefit obligation __ $262,541,000 $238,599,000 $8,675,000 $8,045,000
Fair value of plan assets at end of year ____________________ ————
Components of Net Benefit Costs
The components of net pension costs for each fiscal year are as follows:
2007 2006 2005
Pension Benefits
Service cost ______________________________________________________ $ 84,654,000 $ 100,028,000 $ 81,282,000
Interest cost ______________________________________________________ 91,311,000 83,600,000 73,824,000
Expected return on plan assets _____________________________________ (116,744,000) (104,174,000) (82,613,000)
Amortization of prior service cost ___________________________________ 5,684,000 4,934,000 1,760,000
Recognized net actuarial loss _______________________________________ 9,686,000 46,204,000 32,605,000
Net pension costs _________________________________________________ $ 74,591,000 $ 130,592,000 $106,858,000
The components of other postretirement benefit costs for each fiscal year are as follows:
2007 2006 2005
Other Postretirement Plans
Service cost _____________________________________________________________ $ 451,000 $ 510,000 $ 477,000
Interest cost _____________________________________________________________ 531,000 472,000 488,000
Expected return on plan assets_____________________________________________ ———
Amortization of prior service cost ___________________________________________ 201,000 202,000 202,000
Recognized net actuarial gain ______________________________________________ (132,000) (15,000) —
Amortization of net transition obligation _____________________________________ 154,000 153,000 154,000
Net other postretirement benefit costs ______________________________________ $1,205,000 $1,322,000 $1,321,000
page 52 ][ SYSCO Corporation