Albertsons 2005 Annual Report Download - page 78

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SUPERVALU INC. and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Benefit calculations for the company’s sponsored defined benefit pension plans for primarily non-union
eligible participants are generally based on years of service and the participants’ highest compensation during
five consecutive years of employment. Annual payments to the pension trust fund are determined in compliance
with the Employee Retirement Income Security Act (ERISA). Plan assets are held in trust and invested in
separately managed accounts and publicly traded mutual funds holding equity, fixed income securities and
alternative investment classes. In addition to providing pension benefits, the company provides health care and
life insurance benefits for eligible retired employees upon meeting certain age and service requirements.
The following tables set forth the changes in benefit obligations and plan assets, a reconciliation of the
accrued benefit costs and total benefit costs for the fiscal years for the company’s defined benefit pension plans
and the post retirement benefit plans which have a plan measurement date of November 30:
Pension Benefits Post Retirement Benefits
February 26,
2005
February 28,
2004
February 26,
2005
February 28,
2004
(In thousands)
CHANGES IN BENEFIT OBLIGATIONS
Benefit obligations at beginning of year $ 618,570 $ 502,383 $ 125,081 $ 111,320
Service cost 19,370 18,243 1,443 1,350
Interest cost 37,957 35,003 6,899 7,457
Plan amendments — — — (4,495)
Actuarial loss 33,894 86,248 23,375 17,025
Benefits paid (23,246) (23,307) (8,241) (7,576)
Benefit obligations at end of year $ 686,545 $ 618,570 $ 148,557 $ 125,081
CHANGES IN PLAN ASSETS
Fair value of plan assets at beginning of year $ 466,809 $ 393,104 $ — $ —
Actual return on plan assets 51,880 72,012 — —
Company contributions 25,000 25,000 8,241 7,576
Plan participants’ contributions — — 5,464 4,801
Benefits paid (23,246) (23,307) (13,705) (12,377)
Fair value of plan assets at end of year $ 520,443 $ 466,809 $ — $ —
RECONCILIATION OF PREPAID (ACCRUED) COST
AND TOTAL AMOUNT RECOGNIZED
Funded status $(166,101) $(151,761) $(148,557) $(125,081)
Unrecognized net loss 221,880 216,919 79,376 59,723
Unrecognized prior service cost 7,766 9,027 (8,084) (10,033)
Prepaid (accrued) cost $ 63,545 $ 74,185 $ (77,265) $ (75,391)
Accrued benefit liability $(107,159) $ (90,439)
Intangible asset 7,766 9,027
Accumulated other comprehensive loss 162,938 155,597
Total recognized $ 63,545 $ 74,185
F-32