Sysco 2008 Annual Report Download - page 72

Funded Status
The funded status of SYSCO’s company-sponsored defined benefit plans is presented in the table below.The caption “Pension Benefits”
in the tables below includes both the Retirement Plan and the SERP.
June 28, 2008 June 30, 2007 June 28, 2008 June 30, 2007
Pension Benefits Other Postretirement Plans
Change in benefit obligation:
Benefit obligation at beginning of year. . . . . . . . . . $ 1,565,327,000 $ 1,381,409,000 $ 8,675,000 $ 8,045,000
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,570,000 84,654,000 484,000 451,000
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,218,000 91,311,000 570,000 531,000
Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . (30,048,000) 3,410,000 — —
Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . 1,205,000 46,463,000 (209,000) (359,000)
Actual expenses . . . . . . . . . . . . . . . . . . . . . . . . . (10,445,000) (10,814,000) — —
Total disbursements. . . . . . . . . . . . . . . . . . . . . . . (34,586,000) (31,106,000) (238,000) 7,000
Settlements/Adjustments (Measurement date
change) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48,254,000) — (127,000) —
Benefit obligation at end of year . . . . . . . . . . . . . . 1,634,987,000 1,565,327,000 9,155,000 8,675,000
Change in plan assets:
Fair value of plan assets at beginning of year . . . . . 1,590,689,000 1,282,302,000 — —
Actual return on plan assets . . . . . . . . . . . . . . . . . (95,634,000) 259,471,000 — —
Employer contribution . . . . . . . . . . . . . . . . . . . . . 92,670,000 90,836,000 238,000 (7,000)
Actual expenses . . . . . . . . . . . . . . . . . . . . . . . . . (10,445,000) (10,814,000) — —
Total disbursements. . . . . . . . . . . . . . . . . . . . . . . (34,586,000) (31,106,000) (238,000) 7,000
Settlements/Adjustments (Measurement date
change) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,122,000) — — —
Fair value of plan assets at end of year . . . . . . . . . 1,526,572,000 1,590,689,000 — —
Funded status at measurement date . . . . . . . . . . . (108,415,000) 25,362,000 (9,155,000) (8,675,000)
Contributions after measurement date, before end
of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . N/A 993,000 N/A 85,000
Funded status at end of year . . . . . . . . . . . . . . . . $ (108,415,000) $ 26,355,000 $ (9,155,000) $ (8,590,000)
In order to meet a portion of its obligations under the SERP, SYSCO maintains life insurance policies on the lives of the participants with
carrying values of $129,480,000 as of June 28, 2008 and $131,011,000 as of June 30, 2007.These policies are not included as plan assets or
in the funded status amounts in the tables above and below. SYSCO is the sole owner and beneficiary of such policies. The projected benefit
obligation for the SERP was $323,574,000 and $327,028,000 as of June 28, 2008 and June 30, 2007, respectively.
The amounts recognized on SYSCO’s consolidated balance sheet related to its company-sponsored defined benefit plans are as
follows:
June 28, 2008 June 30, 2007 June 28, 2008 June 30, 2007
Pension Benefits Other Postretirement Plans
Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . $ 215,159,000 $ 352,390,000 $ — $ —
Current accrued benefit liability (Accrued expenses) . . (17,082,000) (10,784,000) (319,000) (183,000)
Non-current accrued benefit liability (Other long-term
liabilities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (306,492,000) (315,251,000) (8,836,000) (8,407,000)
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . $ (108,415,000) $ 26,355,000 $ (9,155,000) $ (8,590,000)
Accumulated other comprehensive loss as of June 28, 2008 consists of the following amounts that had not, as of that date, been
recognized in net benefit cost:
Pension Benefits
Other
Postretirement
Plans Total
Prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,145,000 $ 436,000 $ 9,581,000
Net actuarial losses (gains). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 351,344,000 (2,912,000) 348,432,000
Transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 754,000 754,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 360,489,000 $ (1,722,000) $ 358,767,000
Accumulated other comprehensive loss as of June 30, 2007 consists of the following amounts that had not, as of that date, been
recognized in net benefit cost:
Pension Benefits
Other
Postretirement
Plans Total
Prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45,678,000 $ 591,000 $ 46,269,000
Net actuarial losses (gains). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158,906,000 (2,741,000) 156,165,000
Transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 920,000 920,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 204,584,000 $ (1,230,000) $ 203,354,000
48