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SYSCO CORPORATION-Form10-K60
PARTII
ITEM8Financial Statements and Supplementary Data
Accumulated other comprehensive loss (income) as of June30,2012 consists of the following amounts that had not, as of that date, been recognized in net
benefi t cost:
(In thousands)
Pension
Benefi ts
Other
Postretirement
Plans Total
Prior service cost $ 36,087 $ 1,236 $ 37,323
Actuarial losses (gains) 1,303,582 (3,543) 1,300,039
Transition obligation - 141 141
TOTAL $ 1,339,669 $ (2,166) $ 1,337,503
Accumulated other comprehensive loss (income) as of July2,2011 consists of the following amounts that had not, as of that date, been recognized in net benefi t cost:
(In thousands)
Pension
Benefi ts
Other
Postretirement
Plans Total
Prior service cost $ 32,187 $ 1,450 $ 33,637
Actuarial losses (gains) 784,382 (4,798) 779,584
Transition obligation - 294 294
TOTAL $ 816,569 $ (3,054) $ 813,515
The accumulated benefi t obligation, which does not consider any salary increases, for the company-sponsored defi ned benefi t pension plans was
$3,078.5million and $2,325.2million as of June30,2012 and July2,2011, respectively.
Information for plans with accumulated benefi t obligation/aggregate benefi t obligation in excess of fair value of plan assets is as follows:
(In thousands)
Pension Benefi ts Other Postretirement Plans
June30,2012(1) July2,2011(1) June30,2012 July2,2011
Accumulated benefi t obligation/aggregate benefi t obligation $ 3,078,488 $ 2,325,171 $ 12,954 $ 10,812
Fair value of plan assets at end of year 2,234,869 2,106,313 - -
(1) Information under Pension Benefits as of June30,2012 and July2,2011 includes both the Retirement Plan and the SERP.
Components of Net Benefi t Costs and Other Comprehensive Income
The components of net company-sponsored pension costs for each fi scal year are as follows:
(In thousands)
Pension Benefi ts
2012 2011
2010
(53Weeks)
Service cost $ 108,223 $ 99,443 $ 66,650
Interest cost 147,512 134,973 119,593
Expected return on plan assets (161,605) (131,921) (104,860)
Amortization of prior service cost 4,806 3,960 4,209
Amortization of actuarial loss 60,166 79,952 40,526
NET PENSION COSTS $ 159,102 $ 186,407 $ 126,118
The components of other postretirement benefi t costs for each fi scal year are as follows:
(In thousands)
Other Postretirement Plans
2012 2011
2010
(53Weeks)
Service cost $ 457 $ 396 $ 328
Interest cost 632 524 562
Amortization of prior service cost 215 185 185
Amortization of actuarial gain (331) (388) (490)
Amortization of transition obligation 153 153 153
NET OTHER POSTRETIREMENT BENEFIT COSTS $ 1,126 $ 870 $ 738
Net company-sponsored pension costs decreased $27.3million in fi scal 2012 due primarily to higher returns on assets of Sysco’s Retirement Plan during
fi scal 2011. Net company-sponsored pension costs in fi scal 2013 are expected to decrease by approximately $26.5million over fi scal 2012 due primarily
to the freeze of the plan, partially offset by the impact of reduced discount rates and amortization of losses from unrecognized actuarial losses.