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Newell Rubbermaid Inc. 2010 Annual Report
>
70 NEWELL RUBBERMAID 2010 Annual Report
Other postretirement benefit costs include the following components for the years ended December 31, (in millions):
2010 2009 2008
Service cost-benefits earned during the year $ 1.5 $ 1.5 $ 1.6
Interest cost on projected benefit obligation 9.2 9.6 9.6
Amortization of:
Prior service benefit (2.4) (2.4) (2.4)
Actuarial loss 0.9 — —
Net postretirement benefit costs $ 9.2 $ 8.7 $ 8.8
The weighted-average discount rate 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 for the years ended December 31,:
2010 2009 2008
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate 5.75% 6.25% 6.25%
Long-term health care cost trend rate 4.50% 5.00% 5.00%
Assumed health care cost trends have been used in the valuation of the benefit obligations for postretirement benefits. The
trend rate used to measure the benefit obligation was 7.6% for all retirees in 2010, declining to 4.5% in 2028 and thereafter.
The health care cost trend rate significantly affects the reported postretirement benefit costs and obligations. A one-percentage
point change in the assumed rate would have the following effects (in millions):
1% Increase 1% Decrease
Effect on total of service and interest cost components $ 1.0 $ (0.9)
Effect on postretirement benefit obligations $16.5 $(12.8)
Estimated Future Benefit Payments
Estimated future benefit payments under the Company’s defined benefit pension plans and other postretirement benefit plans
are as follows as of December 31, 2010 (in millions):
2011 2012 2013 2014 2015 2016-2020
Pension benefits(1) $77.4 $85.2 $79.7 $97.2 $83.7 $453.7
Other postretirement benefits $15.1 $14.4 $14.0 $13.5 $13.1 $ 63.2
(1) Certain pension benefit payments will be funded by plan assets.
The estimated other postretirement benefit payments are net of annual Medicare Part D subsidies of approximately $2.1 million
per year. The Company expects to make direct cash benefit payments of approximately $15.1 million for its other postretirement
benefit plans in 2011.
FOOTNOTE 14
EARNINGS PER SHARE
On January 1, 2009, the Company retrospectively adopted the authoritative guidance which provides that unvested share-based
payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating
securities and should be included in the computation of earnings per share. The retrospective adoption of the authoritative
guidance impacted basic and diluted earnings (loss) per share for 2008, as follows:
Loss Per Share From Loss Per Share —
Continuing Operations Controlling Interests
Loss per share, as reported $(0.19) $(0.19)
Adjustment attributable to participating securities 0.01 0.01
Loss per share, as adjusted $(0.18) $(0.18)
Net income (loss) attributable to participating securities, which consisted of certain of the Company’s outstanding restricted
stock awards and restricted stock units, was $3.1 million, $3.0 million and $(1.2) million for 2010, 2009 and 2008, respectively.