Sysco 2009 Annual Report Download - page 69

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Accumulated other comprehensive loss as of June 27, 2009 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 (credit) . . ...................................... $ 32,104,000 $ (6,567,000) $ 25,537,000
Net actuarial losses . ........................................... 534,892,000 833,000 535,725,000
Transition obligation . ........................................... — 601,000 601,000
Total ...................................................... $ 566,996,000 $ (5,133,000) $ 561,863,000
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) . ...................................... 351,204,000 (2,912,000) 348,292,000
Transition obligation — 754,000 754,000
Total ...................................................... $ 360,349,000 $ (1,722,000) $ 358,627,000
The accumulated benefit obligation for the company-sponsored defined benefit pension plans was $1,439,584,000 and $1,467,568,000 as of
June 27, 2009 and June 28, 2008, respectively.
Information for plans with accumulated benefit obligation/aggregate benefit obligation in excess of fair value of plan assets is as follows:
June 27, 2009 June 28, 2008 June 27, 2009 June 28, 2008
Pension Benefits
Other
Postretirement
Plans
Accumulated benefit obligation/aggregate benefit. ............ $ 291,964,000 $ 277,579,000 $ 7,197,000 $ 9,155,000
Fair value of plan assets at end of year . ................... — — — —
Components of Net Benefit Costs and Other Comprehensive Income
The components of net company-sponsored pension costs for each fiscal year are as follows:
2009 2008 2007
Pension Benefits
Service cost . ................................................. $ 80,899,000 $ 90,570,000 $ 84,654,000
Interest cost . ................................................. 113,715,000 101,218,000 91,311,000
Expected return on plan assets ..................................... (127,422,000) (135,345,000) (116,744,000)
Amortization of prior service cost . ................................... 3,793,000 5,985,000 5,684,000
Amortization of net actuarial loss .................................... 17,729,000 3,409,000 9,686,000
Net pension costs .............................................. $ 88,714,000 $ 65,837,000 $ 74,591,000
The components of other postretirement benefit costs for each fiscal year are as follows:
2009 2008 2007
Other Postretirement Plans
Service cost. .................................................. $ 490,000 $ 484,000 $ 451,000
Interest cost .................................................. 624,000 570,000 531,000
Amortization of prior service cost . ................................... 130,000 143,000 201,000
Amortization of net actuarial gain .................................... (158,000) (156,000) (132,000)
Amortization of transition obligation . . . ............................... 153,000 153,000 154,000
Net other postretirement benefit costs . ............................... $ 1,239,000 $ 1,194,000 $ 1,205,000
Net company-sponsored pension costs increased $22,877,000 in fiscal 2009 due primarily to the recognition of actuarial losses from lower
returns on assets of the Retirement Plan during fiscal 2008 and the merging of participants from a multi-employer pension plan in the Retirement
Plan (see Multi-Employer Pension Plans in Note 19, Commitments and Contingencies for further discussion), partially offset by a decrease in
expense due to an increase in the discount rates used to calculate the Retirement Plan’s projected benefit obligation and amendments to our SERP.
Net company-sponsored pension costs in fiscal 2010 are expected to increase by approximately $37,000,000 over fiscal 2009 due primarily to
lower returns on assets of the Retirement Plan during fiscal 2009, partially offset by an increase in the discount rates used to calculate our projected
benefit obligation and related pension expense for fiscal 2010.
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