Sears 2007 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2007 Sears annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Weighted-average assumptions used to determine net cost for years ended are as follows:
2007 2006 2005
Kmart
Sears
Domestic
Sears
Canada Kmart
Sears
Domestic
Sears
Canada Kmart
Sears
Domestic
Sears
Canada
Pension benefits:
Discount Rate ...................... 5.90% 5.90% 5.25% 5.50% 5.50% 5.00% 5.75% 5.75% 6.00%
Return of plan assets ................. 7.75% 7.75% 6.50% 8.00% 8.00% 7.00% 8.00% 8.00% 7.00%
Rate of compensation increases ........ N/A N/A 4.00% N/A N/A 4.00% N/A 4.25% 4.25%
Postretirement benefits:
Discount Rate ...................... N/A 5.90% 5.25% N/A 5.50% 5.00% N/A 5.75% 6.25%
Return of plan assets ................. N/A N/A 7.00% N/A N/A 7.00% N/A N/A 7.00%
Rate of compensation increases ........ N/A N/A 4.00% N/A N/A 4.00% N/A N/A 4.25%
The components of net periodic benefit cost are as follows:
Millions
2007 2006 2005
Kmart
Sears
Domestic
Sears
Canada Total Kmart
Sears
Domestic
Sears
Canada Total Kmart
Sears
Domestic
Sears
Canada Total
Pension benefits:
Benefits earned during
the period ........ $— $— $ 32 $ 32 $— $— $ 34 $ 34 $— $ 54 $ 22 $ 76
Interest cost ........ 154 170 74 398 150 172 63 385 151 152 50 353
Expected return on
plan assets ....... (171) (175) (92) (438) (156) (179) (84) (419) (140) (156) (60) (356)
Recognized net
loss ............. — — — — — — 5 5 — — — —
Other ............. — (13) — (13) — (13) 4 (9) — — — —
Net periodic benefit
cost (benefit) ..... $ (17) $ (18) $ 14 $ (21) $ (6) $ (20) $ 22 $ (4) $ 11 $ 50 $ 12 $ 73
Postretirement benefits:
Benefits earned during
the period ........ $— $— $ 2 $ 2 $— $— $ 7 $ 7 $— $— $ 4 $ 4
Interest cost ........ — 21 16 37 — 21 17 38 — 20 13 33
Expected return on
assets ........... — — (8) (8) — — (6) (6) — — (4) (4)
Curtailment gain .... — — (27) (27) — — — — — — — —
Recognized net
loss ............. — — 1 1 — — 7 7 — — — —
Other ............. — 1 — 1 — — — — — — — —
Net periodic benefit
cost (benefit) ..... $— $ 22 $(16) $ 6 $ — $ 21 $ 25 $ 46 $ — $ 20 $ 13 $ 33
82