Danaher 2011 Annual Report Download - page 93

Table of Contents
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In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for some of its retired employees in the United
States. Certain employees may become eligible for these benefits as they reach normal retirement age while working for the Company. The following sets forth
the funded status of the domestic plans as of the most recent actuarial valuations using measurement dates of December 31, 2011 and 2010 ($ in millions):

 
Change in benefit obligation:
Benefit obligation at beginning of year $123.7 $104.8
Service cost 1.6 0.9
Interest cost 9.5 6.3
Amendments, curtailments and other 2.0 0.5
Actuarial loss 16.0 23.8
Acquisitions 125.1 —
Retiree contributions 6.6 1.8
Benefits paid (19.7) (14.4)
Benefit obligation at end of year 264.8 123.7
Change in plan assets:
Fair value of plan assets — —
Funded status /accrued benefit cost $(264.8) $(123.7)
Attributable to discontinued operations 2.5 2.5
Funded status /accrued benefit cost – continuing operations (262.3) (121.2)
At December 31, 2011, $245 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, 2010, $111 million of the total underfunded status of the plan was recognized as long-term accrued
post-retirement liability.
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 
Discount rate 4.50% 5.20%
Medical trend rate – initial 7.70% 7.90%
Medical trend rate – grading period 17 years 18 years
Medical trend rate – ultimate 4.50% 4.50%
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1% Increase 1% Decrease
Effect on the total of service and interest cost components $1.0 $(0.9)
Effect on post retirement medical benefit obligation 24.4 (21.2)
The medical trend rate used to determine the post retirement benefit obligation was 7.70% for 2011. The rate decreases gradually to an ultimate rate of 4.5% in
2028, and remains at that level thereafter. The trend is a significant factor in determining the amounts reported.
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Source: DANAHER CORP /DE/, 10-K, February 24, 2012 Powered by Morningstar® Document Research℠
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