Safeway 2010 Annual Report Download - page 75

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SAFEWAY INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Amounts recognized in accumulated other comprehensive income consist of the following (in millions):
Pension
Other Post-Retirement
Benefits
2010 2009 2010 2009
Net actuarial loss $ 583.5 $592.4 $ 26.1 $ 21.9
Prior service cost (credit) 47.1 64.4 (1.5) (1.6)
$ 630.6 $656.8 $ 24.6 $ 20.3
Safeway expects approximately $62.2 million of the net actuarial pension loss and $15.9 million of the prior service cost
to be recognized as a component of net periodic benefit cost in 2011.
Information for Safeway’s pension plans, all of which have an accumulated benefit obligation in excess of plan assets as
of year-end 2010 and 2009, is shown below (in millions):
2010 2009
Projected benefit obligation $ 2,257.2 $ 2,095.5
Accumulated benefit obligation 2,171.9 2,028.4
Fair value of plan assets 1,652.2 1,572.1
The following tables provide the components of net expense for the retirement plans and other changes in plan assets
and benefit obligations recognized in other comprehensive income (in millions):
Pension
Other Post-Retirement
Benefits
Components of net expense: 2010 2009 2008 2010 2009 2008
Estimated return on plan assets $ (124.5) $(110.8) $(147.8) $– $– $ –
Service cost 36.1 39.4 101.7 2.3 1.5 2.6
Interest cost 125.8 116.0 102.3 7.2 6.6 7.5
Plan curtailment gain –(0.3) – –––
Amortization of prior service cost (credit) 17.3 19.3 21.9 (0.1) (0.1) (0.1)
Amortization of net actuarial loss 58.6 66.6 6.5 2.5 1.9 2.1
Net expense $ 113.3 $ 130.2 $ 84.6 $11.9 $ 9.9 $ 12.1
Changes in plan assets and benefit obligations recognized in
other comprehensive income:
Net actuarial loss (gain) $ 49.7 $ 12.1 $ 446.1 $ 6.7 $ 4.8 $(11.6)
Amortization of net actuarial loss (58.6) (66.6) (6.5) (2.5) (1.9) (2.1)
Prior service credit –(14.8) (2.9) –––
Amortization of prior service (cost) credit (17.3) (19.3) (21.9) 0.1 0.1 0.1
Total recognized in other comprehensive income (26.2) (88.6) 414.8 4.3 3.0 (13.6)
Total net expense and changes in plan assets and benefit
obligations recognized in other comprehensive income $ 87.1 $ 41.6 $ 499.4 $16.2 $12.9 $ (1.5)
Prior service costs are amortized on a straight-line basis over the average remaining service period of active participants.
Actuarial gains and losses are amortized over the average remaining service life of active participants when the
accumulation of such gains and losses exceeds 10% of the greater of the projected benefit obligation and the fair value
of plan assets. The Company uses its fiscal year-end date as the measurement date for its plans.
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