Tyson Foods 2008 Annual Report Download - page 53

Download and view the complete annual report

Please find page 53 of the 2008 Tyson Foods 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.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

51 2008 Annual Report
Notes to Consolidated Financial Statements (continued)
BENEFIT OBLIGATIONS AND FUNDED STATUS
The following table provides a reconciliation of the changes in the plans’ benefi t obligations, assets and funded status at September 27, 2008,
and September 29, 2007:
Pension Benefi ts Other Postretirement
Qualifi ed Non-Qualifi ed Benefi ts
in millions 2008 2007 2008 2007 2008 2007
Change in benefi t obligation
Benefi t obligation at beginning of year $ 98 $99 $ 30 $ 25 $ 49 $ 61
Service cost – – 3 6 1 1
Interest cost 6 5 2 2 3 4
Plan participants’ contributions – – – – 2 8
Amendments – – – – – (4)
Actuarial (gain) loss (6) – (2) (2) 1 12
Benefi ts paid (8) (6) (1) (1) (9) (16)
Settlement – – – – – (17)
Benefi t obligation at end of year 90 98 32 30 47 49
Change in plan assets
Fair value of plan assets at beginning of year 97 85 – – – –
Actual return on plan assets (11) 14 – – – –
Employer contributions 1 4 1 1 7 8
Plan participants’ contributions – – – – 1 8
Benefi ts paid (8) (6) (1) (1) (8) (16)
Fair value of plan assets at end of year 79 97 – – – –
Funded status $(11) $ (1) $(32) $(30) $(47) $(49)
Amounts recognized in the Consolidated Balance Sheets consist of:
Pension Benefi ts Other Postretirement
Qualifi ed Non-Qualifi ed Benefi ts
in millions 2008 2007 2008 2007 2008 2007
Other assets $ – $ 7 $ – $ – $ – $ –
Accrued benefi t liability (11) (8) (32) (30) (47) (49)
Accumulated other comprehensive (income)/loss:
Unrecognized actuarial loss 24 13 – 1 – –
Unrecognized prior service (cost)/credit – – 4 5 (9) (10)
Net amount recognized $ 13 $12 $(28) $(24) $(56) $(59)
The increase (decrease) in the pretax minimum liability related to
our pension plans included in other comprehensive income (loss)
was $9 million, $(9) million and $16 million in fi scal 2008, 2007 and
2006, respectively.
At September 27, 2008, all pension plans had an accumulated benefi t
obligation in excess of plan assets. At September 29, 2007, three pen-
sion plans had an accumulated benefi t obligation in excess of plan
assets. The accumulated benefi t obligation for all qualifi ed pension
plans was $90 million and $98 million at September 27, 2008, and
September 29, 2007, respectively. Plans with accumulated benefi t
obligations in excess of plan assets are as follows:
Pension Benefi ts
Qualifi ed Non-Qualifi ed
in millions 2008 2007 2008 2007
Projected benefi t obligation $90 $26 $32 $30
Accumulated benefi t obligation 90 26 31 30
Fair value of plan assets 79 18 – –