Sears 2008 Annual Report Download - page 74

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Postretirement Obligations
2008 2007
millions
SHC
Domestic
Sears
Canada Total
Sears
Domestic
Sears
Canada Total
Change in projected benefit obligation:
Beginning balance ........................... $334 $308 $ 642 $ 367 $ 348 $ 715
Benefits earned during the period ............... — 1 1 — 2 2
Interest cost ................................ 22 17 39 21 16 37
Plan participants’ contributions ................. 54 — 54 12 — 12
Actuarial gain ............................... (12) (66) (78) (12) (15) (27)
Benefits paid ............................... (101) (19) (120) (54) (15) (69)
Curtailment gain ............................. — — — — (74) (74)
Foreign currency exchange rate impact and other . . . — (51) (51) — 46 46
Balance as of the measurement date ................. $297 $190 $ 487 $ 334 $ 308 $ 642
Change in plan assets at fair value:
Beginning of year balance ..................... $— $116 $ 116 $ — $ 99 $ 99
Actual return on plan assets .................... — 3 3 — (2) (2)
Company contributions ....................... 47 16 63 42 15 57
Plan participants’ contributions ................. 54 — 54 12 — 12
Benefits paid ............................... (101) (19) (120) (54) (15) (69)
Foreign currency exchange rate impact and other . . . — (21) (21) — 19 19
Balance as of the measurement date ................. $— $ 95 $ 95 $— $116 $116
Funded status ................................... $(297) $ (95) $(392) $(334) $(192) $(526)
Employer contributions after measurement date and on or
before fiscal year end ........................... — — — 4 — 4
Net amount recognized ........................... $(297) $ (95) $(392) $(330) $(192) $(522)
Weighted-average assumptions used to determine plan obligations are as follows:
2008 2007 2006
SHC
Domestic
Sears
Canada Kmart
Sears
Domestic
Sears
Canada Kmart
Sears
Domestic
Sears
Canada
Pension benefits:
Discount Rate ............... 7.00% 7.90% 6.45% 6.45% 5.50% 5.90% 5.90% 5.25%
Rate of compensation
increases ................. N/A 3.50% N/A N/A 4.00% N/A N/A 4.00%
Postretirement benefits:
Discount Rate ............... 7.00% 7.80% N/A 6.45% 5.50% N/A 5.90% 5.25%
Rate of compensation
increases ................. N/A 3.50% N/A N/A 4.00% N/A N/A 4.00%
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