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FINANCIALS
58
The following represents our weighted-average assumptions as of December 31:
Defi ned Benefi t Pension Plans Retiree Health Benefi t Plans
(Percents) 2008 2007 2008 2007
Weighted-average assumptions as of December 31
Discount rate for benefi t obligation . . . . . . . . . . . . . . . . . . . . . 6.7 6.4 6.9 6.7
Discount rate for net benefi t costs . . . . . . . . . . . . . . . . . . . . . 6.4 5.7 6.7 6.0
Rate of compensation increase for benefi t obligation . . . . . 4.1 4.6 — —
Rate of compensation increase for net benefi t costs . . . . . . 4.6 4.6 — —
Expected return on plan assets for net benefi t costs . . . . . . 9.0 9.0 9.0 9.0
In evaluating the expected return on plan assets, we have considered our historical assumptions compared
with actual results, an analysis of current market conditions, asset allocations, and the views of leading fi nancial
advisers and economists. Our plan assets in our U.S. defi ned benefi t pension and retiree health plans comprise
approximately 84 percent of our worldwide benefi t plan assets. Including the investment losses due to overall mar-
ket conditions in 2001, 2002, and 2008, our 20-year annualized rate of return on our U.S. defi ned benefi t pension
plans and retiree health benefi t plan was approximately 8.2 percent as of December 31, 2008. Health-care-cost
trend rates are assumed to increase at an annual rate of 8.5 percent in 2009, decreasing by approximately 0.6 per-
cent per year to an ultimate rate of 5.5 percent by 2014.
The following benefi t payments, which refl ect expected future service, as appropriate, are expected to be paid
as follows:
2009 2010 2011 2012 2013 2014-2018
Defi ned benefi t pension plans . . . . . . . . . . $360.5 $378.6 $384.8 $392.4 $403.3 $2,234.0
Retiree health benefi t plans—gross . . . . . $ 103.3 $ 106.0 $ 109.8 $ 110.3 $ 114.7 $ 599.0
Medicare rebates . . . . . . . . . . . . . . . . . . . . . (11.6) (7.9) (8.7) (10.0) (10.6) (69.0)
Retiree health benefi t plans—net . . . . . . . $ 91.7 $ 98.1 $ 101.1 $ 100.3 $ 104.1 $ 530.0
The total accumulated benefi t obligation for our defi ned benefi t pension plans was $5.64 billion and $5.69 bil-
lion at December 31, 2008 and 2007, respectively. The projected benefi t obligation and fair value of the plan assets
for the defi ned benefi t pension plans with projected benefi t obligations in excess of plan assets were $6.35 billion
and $4.80 billion, respectively, as of December 31, 2008, and $1.04 billion and $160.9 million, respectively, as of
December 31, 2007. The accumulated benefi t obligation and fair value of the plan assets for the defi ned benefi t
pension plans with accumulated benefi t obligations in excess of plan assets were $4.98 billion and $4.06 billion,
respectively, as of December 31, 2008, and $825.8 million and $46.9 million, respectively, as of December 31, 2007.
Net pension and retiree health benefi t expense included the following components:
Defi ned Benefi t Pension Plans Retiree Health Benefi t Plans
2008 2007 2006 2008 2007 2006
Components of net periodic benefi t
cost
Service cost . . . . . . . . . . . . . . . . . . . . . . $260.1 $287.1 $280.0 $62.1 $ 70.4 $ 72.2
Interest cost . . . . . . . . . . . . . . . . . . . . . . 409.8 362.4 343.5 105.7 101.4 97.9
Expected return on plan assets . . . . . . (603.0) (548.2) (494.8) (118.4) (102.1) (89.9)
Amortization of prior service cost
(benefi t) . . . . . . . . . . . . . . . . . . . . . . . . 8.2 7.7 8.3 (36.0) (15.7) (15.6)
Recognized actuarial loss . . . . . . . . . . . 76.6 130.0 149.6 62.7 95.0 107.9
Net periodic benefi t cost . . . . . . . . . . . . $151.7 $239.0 $286.6 $76.1 $149.0 $172.5
If the health-care-cost trend rates were to be increased by one percentage point each future year, the Decem-
ber 31, 2008, accumulated postretirement benefi t obligation would increase by $247.8 million (13.9 percent) and
the aggregate of the service cost and interest cost components of the 2008 annual expense would increase by
$26.9 million (16.0 percent). A one-percentage-point decrease in these rates would decrease the December 31,
2008, accumulated postretirement benefi t obligation by $192.0 million (10.8 percent) and the aggregate of the 2008
service cost and interest cost by $20.7 million (12.3 percent).