Sysco 2007 Annual Report Download - page 79

As a result of changes in assumptions, including the increase in the discount rate to 6.73% for fiscal 2007, which is based
on the measurement date of May 31st, from 5.60% in fiscal 2006, together with the normal growth of the plan, the impact
of losses from prior periods and the amount and timing of contributions, net pension costs decreased $56,001,000 in fiscal
2007. Net pension costs in fiscal 2008 are expected to decrease by approximately $9,000,000 due primarily to the funding
status and asset performance of the Retirement Plan.
Amounts included in accumulated other comprehensive loss as of June 30, 2007 that are expected to be recognized as
components of net benefit cost during fiscal 2008 are:
Pension Benefits
Other
Postretirement
Plans Total
Amortization of prior service cost ____________________________________ $5,985,000 $ 143,000 $6,128,000
Recognition of actuarial losses (gains) ________________________________ 3,409,000 (156,000) 3,253,000
Amortization of net transition obligation ______________________________ — 153,000 153,000
Total _____________________________________________________________ $9,394,000 $ 140,000 $9,534,000
Employer Contributions
The company made cash contributions to its pension plans of $91,163,000 and $73,764,000 in fiscal years 2007 and 2006,
respectively, including $80,000,000 and $66,000,000 in voluntary contributions to the Retirement Plan in fiscal 2007 and
2006, respectively. In fiscal 2008, as in previous years, contributions to the Retirement Plan will not be required to meet
ERISA minimum funding requirements, yet the company anticipates it will make voluntary contributions of approximately
$80,000,000. The company’s contributions to the SERP and other post-retirement plans are made in the amounts needed
to fund current year benefit payments. The estimated fiscal 2008 contributions to fund benefit payments for the SERP
and other postretirement plans are $11,777,000 and $268,000, respectively.
Estimated Future Benefit Payments
Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows:
Pension Benefits
Other
Postretirement
Plans
2008 _________________________________________________________________________ $ 35,425,000 $ 268,000
2009 _________________________________________________________________________ 41,021,000 374,000
2010 _________________________________________________________________________ 47,720,000 511,000
2011 _________________________________________________________________________ 54,793,000 645,000
2012 _________________________________________________________________________ 62,332,000 777,000
Subsequent five years __________________________________________________________ 448,068,000 4,985,000
Assumptions
Weighted-average assumptions used to determine benefit obligations as of year-end were:
June 30, 2007 July 1, 2006 June 30, 2007 July 1, 2006
Pension Benefits Other Postretirement Plans
Discount rate — Retirement Plan and Other Postretirement
Plans ________________________________________________ 6.54% 6.73% 6.54% 6.73%
Discount rate — SERP ______________________________________ 6.40 6.73 N/A N/A
Rate of compensation increase — Retirement Plan _____________ 6.17 6.17 N/A N/A
For determining the benefit obligations as of year-end, the SERP calculations assume annual salary increases of 10%
through fiscal 2007 and 7% thereafter as of June 30, 2007 and July 1, 2006.
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