Memorex 2011 Annual Report Download - page 75

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table includes information for pension plans with an accumulated benefit obligation in excess of plan
assets. This excludes our plans which have plan assets in excess of accumulated benefit obligations.
United States International
As of December 31, As of December 31,
2011 2010 2011 2010
(In millions)
Projected benefit obligation, end of year ......................... $92.2 $93.8 $31.7 $29.0
Accumulated benefit obligation, end of year ...................... 92.2 93.7 31.4 28.8
Plan assets at fair value, end of year ........................... 69.6 70.9 25.1 25.1
Components of net periodic benefit costs included the following:
United States International
Years Ended December 31, Years Ended December 31,
2011 2010 2009 2011 2010 2009
(In millions)
Service cost ............................... $ — $1.7 $2.8 $0.7 $0.6 $0.7
Interest cost ............................... 4.2 4.8 5.4 2.5 2.8 3.2
Expected return on plan assets ................. (6.3) (5.7) (6.5) (3.0) (3.1) (3.0)
Amortization of net actuarial loss ................ 1.2 0.4 0.2 0.2 0.2 0.4
Amortization of prior service cost (credit) .......... — 0.1 0.1 (0.5) (0.4) (0.2)
Amortization of transition obligation .............. — — — 0.3 0.3 0.3
Net periodic benefit cost ...................... $(0.9) $ 1.3 $ 2.0 $ 0.2 $ 0.4 $ 1.4
Settlements and curtailments .................. 2.5 2.8 7.1 0.6 — 4.6
Total pension costs .......................... $1.6 $4.1 $9.1 $0.8 $0.4 $6.0
The estimated net actuarial loss, prior service credit and net obligations at transition for the defined benefit pension
plans that will be amortized from accumulated other comprehensive loss into net periodic benefit costs over the next fiscal
year are $1.7 million loss, $0.5 million credit and $0.3 million obligation, respectively.
Weighted-average assumptions used to determine benefit obligations were as follows:
United States International
As of December 31, As of December 31,
2011 2010 2011 2010
Discount rate ............................................. 3.75% 5.00% 4.07% 4.77%
Rate of compensation increase ............................... —% 4.75% 3.05% 1.30%
Weighted-average assumptions used to determine net periodic benefit costs were as follows:
United States International
As of December 31, As of December 31,
2011 2010 2009 2011 2010 2009
Discount rate .............................. 4.75% 5.30% 5.60% 4.56% 5.00% 5.79%
Expected return on plan assets ................. 8.00% 8.00% 8.00% 4.92% 5.52% 5.07%
Rate of compensation increase ................. —% 4.75% 4.75% 2.77% 2.98% 3.56%
The discount rate is determined through a modeling process utilizing a customized portfolio of high-quality bonds whose
annual cash flows cover the expected benefit payments of the plan, as well as comparing the results of our modeling to other
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