Kroger 2010 Annual Report Download - page 142

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A-62
NO T E S T O CO N S O L I D A T E D FI N A N C I A L ST A T E M E N T S , CO N T I N U E D
1 3 . B E N E F I T PL A N S
Company-Sponsored Plans
The Company administers non-contributory defined benefit retirement plans for substantially all non-
union employees and some union-represented employees as determined by the terms and conditions of
collective bargaining agreements. These include several qualified pension plans (the “Qualified Plans”)
and a non-qualified plan (the “Non-Qualified Plan”). The Non-Qualified Plan pays benefits to any employee
that earns in excess of the maximum allowed for the Qualified Plans by Section 415 of the Internal Revenue
Code. The Company only funds obligations under the Qualified Plans. Funding for the pension plans is
based on a review of the specific requirements and on evaluation of the assets and liabilities of each plan.
In addition to providing pension benefits, the Company provides certain health care benefits for
retired employees. The majority of the Company’s employees may become eligible for these benefits if
they reach normal retirement age while employed by the Company. Funding of retiree health care benefits
occurs as claims or premiums are paid.
The Company recognizes the funded status of its retirement plans on the Consolidated Balance Sheet.
Actuarial gains or losses, prior service costs or credits and transition obligations that have not yet been
recognized are required to be recorded as a component of Accumulated Other Comprehensive Income
(“AOCI”). All plans are measured as of the Company’s fiscal year end.
Amounts recognized in AOCI as of January 29, 2011 and January 30, 2010 consist of the following
(pre-tax):
Pension Benefits Other Benefits Total
2010 2009 2010 2009 2010 2009
Unrecognized net actuarial loss (gain) ..... $942 $ 1,011 $ (55) $ (62) $887 $949
Unrecognized prior service cost (credit) . . . 44(17) (22) (13) (18)
Unrecognized transition obligation . . . . . . . 11——11
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $947 $ 1,016 $ (72) $ (84) $875 $932
Amounts in AOCI expected to be recognized as components of net periodic pension or postretirement
benefit costs in 2011 and 2010 were as follows (pre-tax):
Pension
Benefits Other Benefits Total
2010 2009 2010 2009 2010 2009
Net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . $ 66 $ 52 $ (2) $ (2) $64 $50
Prior service cost (credit) ..................... 11(5) (5) (4) (4)
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 67 $ 53 $ (7) $ (7) $60 $46