Sysco 2009 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2009 Sysco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

Other changes in plan assets and benefit obligations recognized in other comprehensive loss related to company-sponsored pension plans for
each fiscal year are as follows:
2009 2008
Pension Benefits
Amortization of prior service cost ........................................... $ 3,793,000 $ 5,985,000
Amortization of net actuarial loss. ........................................... 17,729,000 3,409,000
Pension liability assumption (prior service cost) . ................................. (26,704,000) —
Prior service (cost) credit arising in current year ................................. (48,000) 30,048,000
Net actuarial loss arising in current year . . ..................................... (201,417,000) (232,044,000)
Net pension costs . ..................................................... $ (206,647,000) $ (192,602,000)
Other changes in benefit obligations recognized in other comprehensive loss related to other postretirement plans for each fiscal year are as
follows:
2009 2008
Other Postretirement Plans
Amortization of prior service cost ................................................. $ 130,000 $ 143,000
Amortization of net actuarial gain ................................................. (158,000) (156,000)
Amortization of transition obligation ............................................... 153,000 153,000
Prior service cost arising in current year . . . ......................................... (527,000) —
Net actuarial gain arising in current year . . . ......................................... 3,813,000 208,000
Net pension costs. ........................................................... $ 3,411,000 $ 348,000
Amounts included in accumulated other comprehensive loss as of June 27, 2009 that are expected to be recognized as components of net
company-sponsored benefit cost during fiscal 2010 are:
Pension Benefits
Other
Postretirement
Plans Total
Amortization of prior service cost . .................................. $ 4,209,000 $ 185,000 $ 4,394,000
Amortization of net actuarial losses (gains) ............................ 40,526,000 (490,000) 40,036,000
Amortization of transition obligation ................................. — 153,000 153,000
Total . ...................................................... $ 44,735,000 $ (152,000) $ 44,583,000
Employer Contributions
The company made cash contributions to its company-sponsored pension plans of $95,776,000 and $92,670,000 in fiscal years 2009 and
2008, respectively, including $80,000,000 in voluntary contributions to the Retirement Plan in both fiscal 2009 and 2008, respectively. Sysco’s
minimum required contribution to the Retirement Plan for the calendar 2009 plan year is estimated at $95,000,000 to meet ERISA minimum
funding requirements. Sysco will be required to pay quarterly contributions for the calendar 2010 plan year, the first installment of which must be
made in fiscal 2010. The company anticipates it will make $140,000,000 of contributions to the Retirement Plan in fiscal 2010. 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 2010 contributions to fund benefit payments for the SERP and other postretirement plans are $19,445,000 and $372,000, respectively.
Estimated Future Benefit Payments
Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows:
Pension Benefits
Other
Postretirement
Plans
2010 ................................................................... $ 50,222,000 $ 372,000
2011 ................................................................... 55,503,000 469,000
2012 ................................................................... 61,974,000 562,000
2013 ................................................................... 69,983,000 618,000
2014 ................................................................... 78,548,000 715,000
Subsequent five years ....................................................... 546,763,000 4,484,000
Assumptions
Weighted-average assumptions used to determine benefit obligations as of year-end were:
June 27, 2009 June 28, 2008
Discount rate — Retirement Plan and Other Postretirement Plans . . . ........................ 8.02% 6.94%
Discount rate — SERP ......................................................... 7.14 7.03
Rate of compensation increase — Retirement Plan. . . ................................... 5.21 6.17
For determining the benefit obligations as of June 27, 2009, the SERP calculations use an age-graded salary growth assumption with reductions
taken for determining fiscal 2010 pay due to base salary freezes in effect for fiscal 2010. For determining the benefit obligations as of June 28, 2008,
the SERP calculations assumed various levels of base salary increase and decrease for determining pay for fiscal 2009 depending upon the
participant’s position with the company and a 7% salary growth assumption for all participants for fiscal 2010 and thereafter.
50