OfficeMax 2009 Annual Report Download - page 81

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Other changes in plan assets and benefit obligations recognized in other comprehensive
income:
Pension Benefits Other Benefits
2009 2008 2009 2008
(thousands)
Accumulated other comprehensive income at
beginning of year ........................ $ 590,213 $ 253,917 $ (31,895) $ (32,593)
Net loss (gain) ........................... $(139,677) $ 350,403 $ 1,432 $ (2,573)
Amortization of net (loss) gain ................ (10,330) (14,107) (147) $ (269)
Amortization of prior service (cost) credit ........ — — 4,001 3,997
Canadian rate adjustment ................... — — (18) (457)
Accumulated other comprehensive income at end
of year ............................... $ 440,206 $590,213 $(26,627) $(31,895)
The estimated net loss and prior service cost for the defined benefit pension plans that will be
amortized from accumulated other comprehensive income into net periodic benefit cost over the
next fiscal year are $13.4 million and none, respectively. The estimated net loss and prior service
credit for the other defined benefit postretirement plans that will be amortized from accumulated
other comprehensive income into net periodic benefit cost over the next fiscal year is $0.2 million
and $4.0 million, respectively.
Assumptions
The assumptions used in accounting for the Company’s plans are estimates of factors
including, among other things, the amount and timing of future benefit payments. The following
table presents the key assumptions used in the measurement of the Company’s benefit obligations:
Pension Benefits Other Benefits
United States Canada
2009 2008 2007 2009 2008 2007 2009 2008 2007
Weighted average
assumptions as of
year-end:
Discount rate ............ 6.15% 6.20% 6.30% 5.10% 6.10% 5.90% 6.40% 7.30% 5.50%
The following table presents the assumptions used in the measurement of net periodic benefit
cost:
Pension Benefits Other Benefits
United States Canada
2009 2008 2007 2009 2008 2007 2009 2008 2007
Weighted average
assumptions:
Discount rate ............ 6.20% 6.30% 5.80% 6.10% 5.90% 5.60% 7.30% 5.50% 5.00%
Expected long-term return on
plan assets ........... 7.50% 8.00% 8.00% ——————
In 2009, the assumed discount rate (which is required to be the rate at which the projected
benefit obligation could be effectively settled as of the measurement date) is based on the rates of
return for a theoretical portfolio of high-grade corporate bonds (rated Aa1 or better) with cash flows
77