Sysco 2010 Annual Report Download - page 75
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Please find page 75 of the 2010 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.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.
July 3, 2010 June 27, 2009 July 3, 2010 June 27, 2009
Pension Benefits Other Postretirement Plans
(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year . . . ..................... $ 1,551,944 $ 1,634,987 $ 7,197 $ 9,155
Service cost .......................................... 66,650 80,899 328 490
Interest cost .......................................... 119,593 113,715 562 624
Amendments ......................................... — 26,752 — 527
Recognized net actuarial loss (gain) .......................... 523,432 (262,164) 734 (3,813)
Total disbursements..................................... (49,315) (42,245) (360) 214
Benefit obligation at end of year ............................ 2,212,304 1,551,944 8,461 7,197
Change in plan assets:
Fair value of plan assets at beginning of year ................... 1,244,085 1,526,572 — —
Actual return on plan assets ............................... 174,269 (336,018) — —
Employer contribution . . . ................................ 297,933 95,776 360 (214)
Total disbursements..................................... (49,315) (42,245) (360) 214
Fair value of plan assets at end of year . . ..................... 1,666,972 1,244,085 — —
Funded status at end of year .............................. $ (545,332) $ (307,859) $ (8,461) $ (7,197)
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 $149.5 million as of July 3, 2010 and $130.2 million as of June 27, 2009. 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
of $363.5 million and $334.6 million as of July 3, 2010 and June 27, 2009, respectively, was included in Other long-term liabilities on the balance
sheet.
During fiscal 2009, the company merged participants from an under-funded multi-employer pension plan into its Retirement Plan and assumed
$26.7 million of liabilities as part of its withdrawal agreement from this plan. These liabilities are due to the assumption of prior service costs related
to the participants and their accrued benefits which were previously included in this multi-employer plan. This amount is reflected in the change in
benefit obligation for Pension Benefits as of June 27, 2009 in the table above. See further discussion of this withdrawal under Multi-Employer
Pension Plans in Note 18, “Commitments and Contingencies.”
The amounts recognized on Sysco’s consolidated balance sheets related to its company-sponsored defined benefit plans are as follows:
July 3, 2010 June 27, 2009 July 3, 2010 June 27, 2009
Pension Benefits Other Postretirement Plans
(In thousands)
Prepaid pension cost ...................................... $ — $ 26,746 $ — $ —
Current accrued benefit liability (Accrued expenses) ................ (21,574) (18,786) (333) (358)
Non-current accrued benefit liability (Other long-term liabilities)......... (523,758) (315,819) (8,128) (6,839)
Net amount recognized .................................... $ (545,332) $ (307,859) $ (8,461) $ (7,197)
Accumulated other comprehensive loss (income) as of July 3, 2010 consists of the following amounts that had not, as of that date, been
recognized in net benefit cost:
Pension Benefits
Other
Postretirement
Plans Total
(In thousands)
Prior service cost ............................................... $ 27,895 $ 648 $ 28,543
Net actuarial losses (gains) ........................................ 948,389 (5,343) 943,046
Transition obligation ............................................. — 447 447
Total ........................................................ $ 976,284 $ (4,248) $ 972,036
Accumulated other comprehensive loss (income) 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
(In thousands)
Prior service cost ............................................... $ 32,104 $ 833 $ 32,937
Net actuarial losses (gains) ........................................ 534,892 (6,567) 528,325
Transition obligation ............................................. — 601 601
Total ........................................................ $ 566,996 $ (5,133) $ 561,863
The accumulated benefit obligation for the company-sponsored defined benefit pension plans was $2,051.1 million and $1,439.6 million as of
July 3, 2010 and June 27, 2009, respectively.
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