Sysco 2008 Annual Report Download - page 73

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The accumulated benefit obligation for the company-sponsored defined benefit pension plans was $1,467,568,000 and
$1,377,832,000 as of June 28, 2008 and June 30, 2007, respectively.
Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as
follows:
June 28, 2008 June 30, 2007 June 28, 2008 June 30, 2007
Pension Benefits
Other
Postretirement
Plans
Accumulated benefit obligation/aggregate benefit
obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 277,579,000 $ 262,541,000 $ 9,155,000 $ 8,675,000
Fair value of plan assets at end of year . . . . . . . . . . . . . . . — — — —
Components of Net Benefit Costs
The components of net company-sponsored pension costs for each fiscal year are as follows:
2008 2007 2006
Pension Benefits
Service cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,570,000 $ 84,654,000 $ 100,028,000
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,218,000 91,311,000 83,600,000
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (135,345,000) (116,744,000) (104,174,000)
Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,985,000 5,684,000 4,934,000
Amortization of net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,409,000 9,686,000 46,204,000
Net pension costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 65,837,000 $ 74,591,000 $ 130,592,000
The components of other postretirement benefit costs for each fiscal year are as follows:
2008 2007 2006
Other Postretirement Plans
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 484,000 $ 451,000 $ 510,000
Interest cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 570,000 531,000 472,000
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — —
Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143,000 201,000 202,000
Amortization of net actuarial gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (156,000) (132,000) (15,000)
Amortization of transition obligation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,000 154,000 153,000
Net other postretirement benefit costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,194,000 $ 1,205,000 $ 1,322,000
Primarily as a result of the funded status and expected asset performance of the Retirement Plan, net company-sponsored pension
costs decreased $8,754,000 in fiscal 2008. Net company-sponsored pension costs in fiscal 2009 are expected to increase by approx-
imately $20,000,000 due primarily to lower returns on assets of the Retirement Plan.
Amounts included in accumulated other comprehensive loss as of June 28, 2008 that are expected to be recognized as components of
net company-sponsored benefit cost during fiscal 2009 are:
Pension Benefits
Other
Postretirement
Plans Total
Amortization of prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,376,000 $ 130,000 $ 1,506,000
Amortization of net actuarial losses (gains) . . . . . . . . . . . . . . . . . . . . . . . 17,728,000 (158,000) 17,570,000
Amortization of transition obligation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 153,000 153,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,104,000 $ 125,000 $ 19,229,000
Employer Contributions
The company made cash contributions to its company-sponsored pension plans of $92,670,000 and $91,163,000 in fiscal years 2008
and 2007, respectively, including $80,000,000 in voluntary contributions to the Retirement Plan in both fiscal 2008 and 2007,
respectively. In fiscal 2009, 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 2009 contributions to fund benefit payments for the SERP and other postretirement plans are $17,082,000 and $319,000,
respectively.
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