Kroger 2012 Annual Report Download - page 119

A-61
NO T E S T O C O N S O L I D A T E D F I N A N C I A L S T A T E M E N T S , CO N T I N U E D
Information with respect to change in benefit obligation, change in plan assets, the funded status of
the plans recorded in the Consolidated Balance Sheets, net amounts recognized at the end of fiscal years,
weighted average assumptions and components of net periodic benefit cost follow:
Pension Benefits
Qualified Plans Non-Qualified Plan Other Benefits
2012 2011 2012 2011 2012 2011
Change in benefit obligation:
Benefit obligation at beginning of
fiscal year ................................ $3,348 $2,923 $ 217 $ 192 $ 378 $ 330
Service cost .............................. 44 41 3 3 16 13
Interest cost .............................. 146 158 9 10 16 17
Plan participants’ contributions ............... — — — — 9 9
Actuarial loss ............................. 33 344 3 21 6 32
Benefits paid ............................. (131) (122) (11) (9) (23) (23)
Other ................................... 34————
Benefit obligation at end of fiscal year ............ $3,443 $3,348 $ 221 $ 217 $ 402 $ 378
Change in plan assets:
Fair value of plan assets at beginning of
fiscal year ................................ $2,523 $2,472 $ — $ — $ — $ —
Actual return on plan assets .................. 278 117 — — — —
Employer contributions ..................... 71 52 11 9 14 14
Plan participants’ contributions ............... — — — — 9 9
Benefits paid ............................. (131) (122) (11) (9) (23) (23)
Other ................................... 54————
Fair value of plan assets at end of fiscal year ....... $2,746 $2,523 $ — $ — $ — $ —
Funded status at end of fiscal year ............... $ (697) $ (825) $ (221) $(217) $(402) $(378)
Net liability recognized at end of fiscal year ....... $ (697) $ (825) $ (221) $(217) $(402) $(378)
As of February 2, 2013 and January 28, 2012, other current liabilities include $29 and $27, respectively,
of net liability recognized for the above benefit plans.
As of February 2, 2013 and January 28, 2012, pension plan assets do not include common shares of The
Kroger Co.
Pension Benefits Other Benefits
Weighted average assumptions 2012 2011 2010 2012 2011 2010
Discount rate – Benefit obligation ............... 4.29% 4.55% 5.60% 4.11% 4.40% 5.40%
Discount rate – Net periodic benefit cost ......... 4.55% 5.60% 6.00% 4.40% 5.40% 5.80%
Expected return on plan assets ................. 8.50% 8.50% 8.50%
Rate of compensation increase –
Net periodic benefit cost .................... 2.82% 2.88% 2.92%
Rate of compensation increase –
Benefit Obligation ......................... 2.77% 2.82% 2.88%
The Company’s discount rate assumptions were intended to reflect the rates at which the pension benefits
could be effectively settled. They take into account the timing and amount of benefits that would be available
under the plans. The Company’s policy for selecting the discount rates as of year-end 2012 changed from the
policy as of year-end 2011 and 2010. In 2012, the Company’s policy was to match the plan’s cash flows to that
of a hypothetical bond portfolio whose cash flow from coupons and maturities match the plan’s projected