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Newell Rubbermaid Inc. 2008 Annual Report
61
Other Postretirement Benefit Plans
Several of the Company’s subsidiaries currently provide retiree health care and life insurance benefits for certain employee groups. The following provides a
reconciliation of benefit obligations and funded status of the Company’s other postretirement benefit plans as of December 31, (in millions, except percentages):
2008 2007
Change in benefit obligation:
Benefit obligation at beginning of period $ 164.5 $ 178.7
Service cost 1.6 1.7
Interest cost 9.6 10.7
Actuarial loss (gain) 5.6 (8.6)
Benefits paid, net (1) (21.6) (18.0)
FAS 158 measurement date adoption adjustments (2) 2.8 —
Benefit obligation at end of period $ 162.5 $ 164.5
Funded Status:
Funded status at end of plan year $(162.5) $(164.5)
Contributions made between measurement date and December 31 (3) N/A 4.0
Net liability recognized at December 31 $(162.5) $(160.5)
Amounts recognized in the Consolidated Balance Sheets:
Accrued current benefit cost (4) $ (16.1) $ (17.6)
Accrued noncurrent benefit cost (5) (146.4) (142.9)
Total $(162.5) $(160.5)
Amounts recognized in Accumulated Other Comprehensive Income (Loss):
Prior service credit $ 18.1 $ 21.2
Net loss (15.4) (10.3)
Accumulated other comprehensive income, pre-tax $ 2.7 $ 10.9
(1) The 2008 amounts include activity for the 15 month period from October 1, 2007 to December 31, 2008, and the 2007 amounts include activity for the 12 month period from October 1, 2006
to September 30, 2007.
(2) Adjustment for service and interest costs for the three months ended December 31, 2007 relating to the adoption of the measurement date provisions of SFAS 158 for plans historically
measured at September 30.
(3) Not applicable for 2008, as Company used a December 31 measurement date.
(4) Recorded in other accrued liabilities.
(5) Recorded in other noncurrent liabilities.
There are no plan assets associated with the Company’s other postretirement benefit plans.
The weighted average discount rate at the measurement dates for the Company’s other postretirement benefit plans is developed using a spot
interest yield curve based on a broad population of corporate bonds rated AA or higher. The following are the weighted-average assumptions used to
determine net periodic benefit cost for the other postretirement benefit plans:
2008 2007 2006
Discount rate 6.25% 6.00% 5.75%
Long-term health care cost trend rate 5.00% 6.00% 6.00%
Other postretirement benefit costs include the following components as of December 31, (in millions):
2008 (1) 2007 (1) 2006 (1)
Service cost-benefits earned during the year $ 1.6 $ 1.7 $ 2.6
Interest cost on projected benefit obligation 9.6 10.7 10.0
Amortization of:
Prior service benefit (2.4) (2.4) (2.4)
Actuarial loss — 0.1 —
Curtailments — — (0.1)
Net postretirement benefit costs $ 8.8 $10.1 $10.1
(1) 2008 represents 12 months of net postretirement benefit costs from January 1, 2008 to December 31, 2008, while 2007 and 2006 represent 12 months of net postretirement benefit costs
activity from October 1, 2006 to September 30, 2007 and from October 1, 2006 to September 30, 2006, respectively. Net postretirement benefit costs for the three months ended December 31,
2007 are included in the SFAS 158 adjustment table above.