Hormel Foods 2014 Annual Report Download - page 50

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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 as of the October 26, 2014, and the October 27, 2013, measurement dates:
Pension Benefits Post-retirement Benefits
(in thousands) 2014 2013 2014 2013
Change in benefit obligation:
Benefit obligation at beginning of year $ 1,098,060 $ 1,192,369 $ 334,447 $ 389,512
Service cost 25,935 30,979 1,963 2,494
Interest cost 53,030 47,688 15,279 14,910
Plan amendments – – – (68)
Actuarial loss (gain) 108,047 (125,072) 927 (51,290)
Employee contributions – – 2,715 2,512
Medicare Part D subsidy – – 1,941 2,217
Benefits paid (49,303) (47,904) (26,431) (25,840)
Benefit obligation at end of year $ 1,235,769 $ 1,098,060 $ 330,841 $ 334,447
Pension Benefits Post-retirement Benefits
(in thousands) 2014 2013 2014 2013
Change in plan assets:
Fair value of plan assets at beginning of year $ 1,087,315 $ 939,230 $ – $ –
Actual return on plan assets 101,025 170,116 – –
Employee contributions – – 2,715 2,512
Employer contributions 29,728 25,873 23,716 23,328
Benefits paid (49,303) (47,904) (26,431) (25,840)
Fair value of plan assets at end of year $ 1,168,765 $ 1,087,315 $ – $ –
Funded status at end of year $ (67,004) $ (10,745) $ (330,841) $ (334,447)
Amounts recognized in the Consolidated Statements of Financial Position as of October 26, 2014, and October 27, 2013, are
as follows:
Pension Benefits Post-retirement Benefits
(in thousands) 2014 2013 2014 2013
Pension assets $ 130,284 $ 162,535 $ – $ –
Employee related expenses (4,532) (4,159) (20,904) (22,338)
Pension and post-retirement benefits (192,756) (169,121) (309,937) (312,109)
Net amount recognized $ (67,004) $ (10,745) $ (330,841) $ (334,447)
The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with accu-
mulated benefit obligations in excess of plan assets were $197.3 million, $186.1 million, and $0.0 million, respectively, as of
October 26, 2014, and $173.3 million, $161.4 million, and $0.0 million, respectively, as of October 27, 2013.
Included in accumulated other comprehensive loss for
post-retirement benefits at October 26, 2014, and October
27, 2013, are the following amounts that have not yet been
recognized in net periodic post-retirement benefit cost: unrec-
ognized prior service credit of $4.2 million and unrecognized
actuarial losses of $30.3 million, and unrecognized prior ser-
vice credit of $5.5 million and unrecognized actuarial losses of
$29.3 million, respectively. The prior service credit and actu-
arial 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 25, 2015, are
$1.3 million and $0.0 million, respectively.
Included in accumulated other comprehensive loss for pen-
sion benefits at October 26, 2014, and October 27, 2013, are
the following amounts that have not yet been recognized in
net periodic pension cost: unrecognized prior service credit
of $37.4 million and unrecognized actuarial losses of $343.4
million, and unrecognized prior service credit of $42.3 million
and unrecognized actuarial losses of $265.3 million, respec-
tively. 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 25, 2015, are $4.9 million and $18.5 million,
respectively.