Albertsons 2007 Annual Report Download - page 111

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SU
PERVAL
U
IN
C
. and
S
ubsidiaries
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Net Periodic Benefit Expense
N
et periodic benefit expense for qualified defined benefit pension plans consisted of the followin
g
:
P
e
n
sio
nB
e
n
efi
t
s
200
7
2006
2005
S
ervice cost—benefits earned durin
g
the period $ 32 $ 21 $ 19
Interest cost on pro
j
ecte
db
ene
fi
to
blig
at
i
ons 97 41 3
8
Expected return on plan assets (105) (41) (41)
A
mortization of
p
rior service cost (benefit) 2 1 1
R
eco
g
nized net actuarial loss 26 23 1
9
Net periodic benefit expense $ 52 $ 45 $ 36
Th
e est
i
mate
d
pr
i
or serv
i
ce cost an
d
net actuar
i
a
ll
oss t
h
at w
ill b
e amort
i
ze
df
rom accumu
l
ate
d
ot
h
e
r
com
p
rehensive income/loss into net
p
eriodic benefit cost for the
q
ualified defined benefit
p
ension
p
lans over the
next fiscal year are
$
1 and
$
25, respectively
.
Weighted average assumptions used for the defined benefit pension plans, including the unfunded, nonqualified
p
l
ans, cons
i
st o
f
t
h
e
f
o
ll
ow
i
ng
:
F
isca
l
2007
F
isca
l
2006
F
isca
l
2005
W
ei
g
hted-avera
g
e assumptions used to determine benefit
o
bli
gat
i
ons (1):
Discount rate
5
.70-
5
.8
5
%
5
.7
5
% 6.00%
Rate of com
p
ensation increase 3.00-3.07% 3.00% 3.00%
W
ei
g
hted-avera
g
e assumptions used to determine ne
t
p
eriodic benefit cost
:
Discount rate (2)
5
.7
5
-6.30% 6.00% 6.2
5
%
Rate o
f
compensat
i
on
i
ncrease 3.00-3.07% 3.00% 3.00%
E
xpected return on plan assets (3) 8.00% 8.00% 8.75
%
(1) Le
g
ac
y
SUPERVALU benefit obli
g
ations and the fair value of plan assets are measured as of November 30,
2006. The Acquired Operations benefit obligations and the fair value of plan assets are measured as of
Fe
b
ruary 22, 2007
.
(2) T
h
e Company rev
i
ews an
d
se
l
ects t
h
e
di
scount rate to
b
e use
di
n connect
i
on w
i
t
hi
ts pens
i
on an
d
ot
h
er
postretirement obli
g
ations annuall
y
. In determinin
g
the discount rate, the Compan
y
uses the
y
ield o
n
c
orporate
b
on
d
s (rate
d
AA or
b
etter) t
h
at co
i
nc
id
es w
i
t
h
t
h
e cas
hfl
ows o
f
t
h
ep
l
ans’ est
i
mate
db
ene
fit
payouts. T
h
emo
d
e
l
uses a y
i
e
ld
curve approac
h
to
di
scount eac
h
cas
hfl
ow o
f
t
h
e
li
a
bili
ty stream at a
n
i
nterest rate specificall
y
applicable to the timin
g
of each respective cash flow. The model totals the present
va
l
ues o
f
a
ll
cas
hfl
ows an
d
ca
l
cu
l
ates t
h
e equ
i
va
l
ent we
i
g
h
te
d
-average
di
scount rate
b
y
i
mput
i
ng t
he
si
ngu
l
ar
i
nterest rate t
h
at equates t
h
e tota
l
present va
l
ue w
i
t
h
t
h
e stream o
ff
uture cas
hfl
ows. T
hi
s resu
l
t
i
ng
wei
g
hted-avera
g
e discount rate is then used in evaluatin
g
the final discount rate to be used b
y
the Compan
y.
(3) Net periodic benefit expense is measured usin
g
wei
g
hted avera
g
e assumptions as of the be
g
innin
g
of eac
h
year
.
F-4
5