Albertsons 2007 Annual Report Download - page 113

SU
PERVAL
U
IN
C
. and
S
ubsidiaries
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Other Postretirement Benefits
T
he Compan
y
offers health and life insurance to retirees under multiple pro
g
rams. The terms of these plans var
y
b
ase
d
on emp
l
oyment
hi
story, age, an
dd
ate o
f
ret
i
rement. For most ret
i
rees, t
h
e Company prov
id
es a
fi
xe
dd
o
ll
a
r
contr
ib
ut
i
on an
d
ret
i
rees pa
y
contr
ib
ut
i
ons to
f
un
d
t
h
e rema
i
n
i
n
g
cost
.
Th
e net per
i
o
di
c postret
i
rement
b
ene
fi
t cost was as
f
o
ll
ows:
Fiscal
2
00
7
F
isca
l
2006
F
isca
l
2
005
S
ervice cost
$
2
$
2
$
1
Interest cost 9 9
7
)
A
mortization of
p
rior service cost (benefit) (2) (2) (2
)
R
eco
g
nized net actuarial loss 5 6 4
Net
p
eriodic benefit ex
p
ense $14 $15 $10
Th
e est
i
mate
d
net amount o
f
pr
i
or serv
i
ce
b
ene
fi
tan
d
net actuar
i
a
ll
oss t
h
at w
ill b
e amort
i
ze
df
rom accumu
l
ate
d
o
ther comprehensive income/loss into net periodic benefit cost over the next fiscal
y
ear is $3.
We
igh
te
d
avera
g
e assumpt
i
ons use
df
or t
h
e postret
i
rement
b
ene
fi
tp
l
ans cons
i
st o
f
t
h
e
f
o
ll
ow
i
n
g
:
Fiscal
2
007
F
isca
l
2006
F
isca
l
2
005
W
e
i
g
h
te
d
-average assumpt
i
ons use
d
to
d
eterm
i
ne
b
ene
fi
t
obli
g
ations (1):
Discount rate
5
.7
0
-
5
.
85
%
5
.7
5
%
6
.
00%
W
e
i
g
h
te
d
-average assumpt
i
ons use
d
to
d
eterm
i
ne net per
i
o
di
c
b
enefit cost (2):
Discount rate
5
.
38
-
5
.7
5
%
6
.
00
%
6
.2
5%
(1) SUPERVALU benefit obligations are measured as of November 30, 2006. The Acquired Operations benefi
t
o
bli
gat
i
ons are measure
d
as o
f
Fe
b
ruary 22, 2007.
(2) 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
y
ear
.
For those retirees whose health plans provide for variable emplo
y
er contributions, the assumed health care cost
trend rate used in measurin
g
the accumulated postretirement benefit obli
g
ation ran
g
ed from 6% to 13% in fiscal
2007. T
h
e assume
dh
ea
l
t
h
care cost tren
d
rate w
ill d
ecrease
b
y0%to2%eac
h
year
f
or t
h
e next
fi
ve years unt
il it
reaches the ultimate trend rate of 5% to 6%. For those retirees whose health plans provide for a fixed emplo
y
e
r
contribution rate, a health care cost trend is not a
pp
licable. The health care cost trend rate assum
p
tion has a
s
i
gn
ifi
cant
i
mpact on t
h
e amounts reporte
d
. For examp
l
e, a 1% c
h
ange
i
nt
h
e tren
d
rate wou
ld i
mpact t
he
C
ompan
y
’s accumulated postretirement benefit obli
g
ation b
y
approximatel
y
$11 and the service and interest cost
b
y
approximatel
y
$1 in fiscal 2008.
D
e
f
ined Contribution Plan
s
Th
e Company sponsors severa
ld
e
fi
ne
d
contr
ib
ut
i
on an
d
pro
fi
ts
h
ar
i
ng p
l
ans pursuant to Sect
i
on 401(
k
)o
f
t
h
e
I
nternal Revenue Code. The total amount contributed b
y
the Compan
y
to the plans is determined b
y
pla
n
F-
47