Sysco 2010 Annual Report Download - page 77
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Please find page 77 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.Amounts included in accumulated other comprehensive loss (income) as of July 3, 2010 that are expected to be recognized as components of
net company-sponsored benefit cost during fiscal 2011 are:
Pension Benefits
Other
Postretirement
Plans Total
(In thousands)
Amortization of prior service cost ................................... $ 3,960 $ 185 $ 4,145
Amortization of net actuarial losses (gains) ............................ 79,952 (388) 79,564
Amortization of transition obligation . . . .............................. — 153 153
Total . . . .................................................... $ 83,912 $ (50) $ 83,862
Employer Contributions
The company made cash contributions to its company-sponsored pension plans of $297.9 million and $95.8 million in fiscal years 2010 and
2009, respectively. The contributions in fiscal 2010 of $280.0 million to the Retirement Plan included the minimum required contribution for the
calendar 2009 plan year to meet ERISA minimum funding requirements, as well as $140.0 million of contributions that would normally have been
made in fiscal 2011.The contributions in fiscal 2009 of $80.0 million to the Retirement Plan were voluntary contributions. Additional contributionsto
the Retirement Plan are not currently anticipated in fiscal 2011.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 2011 contributions to fund benefit payments for the SERP and other
postretirement plans are $22.2 million and $0.3 million, respectively.
Estimated Future Benefit Payments
Estimated future benefit payments for vested participants, based on actuarial assumptions, are as follows:
Pension Benefits
Other
Postretirement
Plans
(In thousands)
2011 ................................................................... $ 58,164 $ 344
2012 ................................................................... 67,305 438
2013 ................................................................... 74,825 539
2014 ................................................................... 83,422 628
2015 ................................................................... 92,573 741
Subsequent five years ....................................................... 634,222 4,649
Assumptions
Weighted-average assumptions used to determine benefit obligations as of year-end were:
July 3, 2010 June 27, 2009
Discount rate — Retirement Plan ................................................... 6.15% 8.02%
Discount rate — SERP ........................................................... 6.35 7.14
Discount rate — Other Postretirement Plans . .......................................... 6.32 8.02
Rate of compensation increase — Retirement Plan ....................................... 5.30 5.21
For determining the benefit obligations as of July 3, 2010, the SERP calculations utilized an age-graded salary growth assumption. For
determining the benefit obligations as of June 27, 2009, the SERP calculations used an age-graded salary growth assumption with reductions taken
for determining fiscal 2010 pay due to base salary freezes in effect for fiscal 2010.
Weighted-average assumptions used to determine net company-sponsored pension costs and other postretirement benefit costs for each
fiscal year were:
2010 2009 2008
Discount rate — Retirement Plan . . .................................................... 8.02% 6.94% 6.78%
Discount rate — SERP ............................................................. 7.14 7.03 6.64
Discount rate — Other Postretirement Plans .............................................. 8.02 6.94 6.78
Expected rate of return — Retirement Plan ............................................... 8.00 8.00 8.50
Rate of compensation increase — Retirement Plan. ......................................... 5.21 6.17 6.17
For determining the net pension costs related to the SERP for fiscal 2010, the SERP calculations utilized an age-graded salary growth
assumption with reductions taken for determining fiscal 2010 pay due to base salary freezes in effect for fiscal 2010. The calculation for fiscal 2009
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.The calculation for fiscal 2008 assumed annual salary
increases of 7%.
A healthcare cost trend rate is not used in the calculations of postretirement benefit obligations because Sysco subsidizes the cost of
postretirement medical coverage by a fixed dollar amount, with the retiree responsible for the cost of coverage in excess of the subsidy, including all
future cost increases.
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