Albertsons 2010 Annual Report Download - page 65

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Net periodic benefit expense (income) for defined benefit pension plans and other postretirement benefit plans
consisted of the following:
2010 2009 2008 2010 2009 2008
Pension Benefits Other Postretirement Benefits
Net Periodic Benefit Cost
Service cost $ 6 $ 7 $ 27 $ 2 $ 1 $ 2
Interest cost 138 129 124 8 10 9
Expected return on plan assets (129) (142) (135) — — —
Amortization of prior service benefit — — — (6) (1) (2)
Amortization of net actuarial loss 10 1 13 2 3 5
Settlement 2 — — — — —
Curtailment — — 6 — — —
Net periodic benefit expense (income) 27 (5) 35 6 13 14
Other Changes in Plan Assets and Benefit
Obligations Recognized in Other
Comprehensive Income (Loss)
Prior service benefit — — (6) — (38) —
Amortization of prior service benefit — — — 6 1 2
Net actuarial loss (gain) (42) 707 (139) 10 3 (17)
Amortization of net actuarial loss (10) (1) (13) (2) (3) (5)
Total recognized in other comprehensive
income (52) 706 (158) 14 (37) (20)
Total recognized in net periodic benefit
expense and other comprehensive income $ (25) $ 701 $ (123) $ 20 $ (24) $ (6)
The estimated net actuarial loss that will be amortized from accumulated other comprehensive losses into net
periodic benefit cost for the defined benefit pension plans during fiscal 2011 is $66. The estimated net amount
of prior service benefit and net actuarial loss for the postretirement benefit plans that will be amortized from
accumulated other comprehensive losses into net periodic benefit cost during fiscal 2011 is $4.
Assumptions
Weighted average assumptions used to determine benefit obligations and net periodic benefit cost consisted of
the following:
2010 2009 2008
Benefit obligation assumptions:
Discount rate
(2)
6.00% 7.35% 6.75%
Rate of compensation increase 3.00% 3.25% 3.75%
Net periodic benefit cost assumptions:
(1)
Discount rate
(2)
7.35% 6.75% 5.85%
Rate of compensation increase 3.25% 3.75% 3.00%
Expected return on plan assets
(3)
8.00% 8.00% 8.00%
(1) Net periodic benefit cost is measured using weighted average assumptions as of the beginning of each
year.
(2) The Company reviews and selects the discount rate to be used in connection with its pension and other
postretirement obligations annually. In determining the discount rate, the Company uses the yield on cor-
porate bonds (rated AA or better) that coincides with the cash flows of the plans’ estimated benefit pay-
outs. The model uses a yield curve approach to discount each cash flow of the liability stream at an
59