Hormel Foods 2010 Annual Report Download - page 46

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44
Included in accumulated other comprehensive loss for post-
retirement benefits at October 31, 2010, and October 25, 2009,
are the following amounts that have not yet been recognized
in net periodic post-retirement benefit cost: unrecognized
prior service costs of $25.5 million and unrecognized actuarial
losses of $17.9 million, and unrecognized prior service costs
of $29.8 million and unrecognized actuarial gains of $17.8
million, respectively. The prior service cost and actuarial
loss included in accumulated other comprehensive loss and
expected to be recognized in net periodic post-retirement
benefit cost during the fiscal year ending October 30, 2011,
are $4.3 million and $0.0 million, respectively.
Included in accumulated other comprehensive loss for pension
benefits at October 31, 2010, and October 25, 2009, are the
following amounts that have not yet been recognized in net
periodic pension cost: unrecognized prior service credit of $1.8
million and unrecognized actuarial losses of $289.4 million,
and unrecognized prior service credit of $2.4 million and unrec-
ognized actuarial losses of $269.5 million, respectively. The
prior service credit and actuarial loss included in accumulated
other comprehensive loss and expected to be recognized in net
periodic pension cost during the fiscal year ending October 30,
2011, are $0.6 million and $16.7 million, respectively.
The following is a reconciliation of the beginning and ending balances of the benefit obligation, the fair value of plan assets,
and the funded status of the plans for the 12 months at the October 31, 2010, and the 15 months at the October 25, 2009,
measurement dates:
Pension Benefits Post-retirement Benefits
(in thousands) 2010 2009 2010 2009
Change in benefit obligation:
Benefit obligation at beginning of year $ 785,560 $ 673,902 $ 346,106 $ 321,256
Service cost 21,998 22,464 2,477 2,827
Interest cost 48,305 59,081 20,703 28,080
Plan amendments – – – (5,791)
Special termination cost 386 – 109 –
Actuarial loss 64,231 91,200 2,446 33,121
Benefits paid (41,850) (61,087) (25,134) (33,387)
Benefit obligation at end of year $ 878,630 $ 785,560 $ 346,707 $ 346,106
The post-retirement benefits paid are net of Medicare Part D subsidy receipts of $4.2 million and $3.7 million for fiscal 2010 and
2009, respectively.
Pension Benefits Post-retirement Benefits
(in thousands) 2010 2009 2010 2009
Change in plan assets:
Fair value of plan assets at beginning of year $ 689,759 $ 659,833 $ 0 $ 0
Actual return on plan assets 81,993 (22,987)
Employer contributions 72,547 114,000
Benefits paid (41,850) (61,087)
Fair value of plan assets at end of year $ 802,449 $ 689,759 $ 0 $ 0
Funded status at end of year $ (76,181) $ (95,801) $ (346,707) $ (346,106)
Amounts recognized in the Consolidated Statements of Financial Position as of October 31, 2010, and October 25, 2009, are as follows:
Pension Benefits Post-retirement Benefits
(in thousands) 2010 2009 2010 2009
Pension assets $ 61,272 $ 29,663 $ 0 $ 0
Accrued expenses (3,273) (14,964) (25,889) (26,806)
Pension and post-retirement benefits (134,180) (110,500) (320,818) (319,300)
Net amount recognized $ (76,181) $ (95,801) $ (346,707) $ (346,106)