Danaher 2009 Annual Report Download - page 88

Table of Contents
 
 

Benefit obligation at beginning of year $122.4 $131.2
Adoption of ASC Topic 715 measurement provision — (1.7)
Service cost 0.8 1.3
Interest cost 6.5 7.1
Amendments and other (3.5) (6.3)
Actuarial loss (gain) (9.4) 2.3
Retiree contributions 1.7 1.5
Benefits paid (13.7) (13.0)
Benefit obligation at end of year 104.8 122.4

Fair value of plan assets — —
Funded status / accrued benefit cost $(104.8) $(122.4)
At December 31, 2009, $94.2 million of the total underfunded status of the plan was recognized as long-term accrued post retirement liability since it is not
expected to be funded within one year. At December 31, 2008, $109.5 million of the total underfunded status of the plan was recognized as long-term accrued
post-retirement liability.

 
Discount rate 5.75% 6.25%
Medical trend rate – initial 8.10% 8.80%
Medical trend rate – grading period 19 years 20 years
Medical trend rate – ultimate 4.5% 4.00%
The medical trend rate used to determine the post retirement benefit obligation was 8.1% for 2009. The rate decreases gradually to an ultimate rate of 4.5% in
2029, and remains at that level thereafter. The trend is a significant factor in determining the amounts reported.
The following table sets forth benefit payments, which reflect expected future service, as appropriate, expected to be paid in the periods indicated.
 
2010 $ 10.6
2011 10.2
2012 9.8
2013 9.5
2014 9.5
2015-2019 45.5

 
Effect on the total of service and interest cost components $0.4 $(0.3)
Effect on post retirement medical benefit obligation 6.8 (6.2)
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Source: DANAHER CORP /DE/, 10-K, February 24, 2010 Powered by Morningstar® Document Research℠
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