Safeway 2010 Annual Report Download - page 74

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note K: Employee Benefit Plans and Collective Bargaining Agreements
Pension Plans The Company maintains defined benefit, non-contributory retirement plans for substantially all of its
employees not participating in multi-employer pension plans. Safeway recognizes the funded status of its retirement plans
on its consolidated balance sheet.
Other Post-Retirement Benefits In addition to the Company’s pension plans, the Company sponsors plans that
provide postretirement medical and life insurance benefits to certain employees. Retirees share a portion of the cost of
the postretirement medical plans. Safeway pays all the costs of the life insurance plans. The Company also sponsors a
Retirement Restoration Plan that provides death benefits and supplemental income payments for senior executives after
retirement. All of these Other Post-Retirement Benefit Plans are unfunded.
The following table provides a reconciliation of the changes in the retirement plans’ benefit obligation and fair value of
assets over the two-year period ended January 1, 2011 and a statement of the funded status as of year-end 2010 and
year-end 2009. Activity for 2009 includes the removal of the Canadian money purchase plan which had been previously
presented within the table but has since been determined to be a defined contribution plan (in millions):
Pension
Other Post-Retirement
Benefits
2010 2009 2010 2009
Change in projected benefit obligation:
Beginning balance $2,095.5 $2,009.0 $ 121.7 $ 111.0
Service cost 36.1 39.4 2.3 1.5
Interest cost 125.8 116.0 7.2 6.6
Plan amendments –(15.1) ––
Actuarial loss 108.6 157.1 6.8 4.7
Plan participant contributions ––1.8 2.3
Benefit payments (129.5) (121.4) (9.3) (10.0)
Reclassification of money purchase plan component –(138.1) ––
Currency translation adjustment 20.7 48.6 2.3 5.6
Ending balance $2,257.2 $2,095.5 $ 132.8 $ 121.7
Change in fair value of plan assets:
Beginning balance $1,572.1 $1,512.7 $–$–
Actual return on plan assets 183.6 252.8 ––
Employer contributions 10.2 16.7 7.5 7.7
Plan participant contributions ––1.8 2.3
Benefit payments (129.5) (121.4) (9.3) (10.0)
Reclassification of money purchase plan component –(129.6) ––
Currency translation adjustment 15.8 40.9 ––
Ending balance $1,652.2 $1,572.1 $–$–
Components of net amount recognized in financial position:
Other accrued liabilities (current liability) $ (1.5) $ (1.4) $ (8.4) $ (8.3)
Pension and postretirement benefit obligations (non- current liability) (603.5) (522.0) (124.4) (113.4)
Funded status $ (605.0) $ (523.4) $(132.8) $(121.7)
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