Sears 2008 Annual Report Download - page 75

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Weighted-average assumptions used to determine net cost for years ended are as follows:
2008 2007 2006
SHC
Domestic
Sears
Canada Kmart
Sears
Domestic
Sears
Canada Kmart
Sears
Domestic
Sears
Canada
Pension benefits:
Discount Rate ............... 6.45% 5.50% 5.90% 5.90% 5.25% 5.50% 5.50% 5.00%
Return of plan assets .......... 7.50% 6.50% 7.75% 7.75% 6.50% 8.00% 8.00% 7.00%
Rate of compensation
increases ................. N/A 4.00% N/A N/A 4.00% N/A N/A 4.00%
Postretirement benefits:
Discount Rate ............... 6.45% 5.50% N/A 5.90% 5.25% N/A 5.50% 5.00%
Return of plan assets .......... N/A 7.00% N/A N/A 7.00% N/A N/A 7.00%
Rate of compensation
increases ................. N/A 4.00% N/A N/A 4.00% N/A N/A 4.00%
The components of net periodic benefit cost are as follows:
2008 2007 2006
millions
SHC
Domestic
Sears
Canada Total Kmart
Sears
Domestic
Sears
Canada Total Kmart
Sears
Domestic
Sears
Canada Total
Pension benefits:
Benefits earned during the
period ................. $— $ 10 $ 10 $— $— $ 32 $ 32 $— $— $ 34 $ 34
Interest cost .............. 356 52 408 154 170 74 398 150 172 63 385
Expected return on plan
assets ................. (355) (63) (418) (171) (175) (92) (438) (156) (179) (84) (419)
Recognized net loss ........ — — — — — — — — — 5 5
Other ................... — — — — (13) — (13) — (13) 4 (9)
Net periodic benefit cost
(benefit) ............... $ 1 $ (1) $— $ (17) $ (18) $ 14 $ (21) $ (6) $ (20) $ 22 $ (4)
Postretirement benefits:
Benefits earned during the
period ................. $— $ 1 $ 1 $— $— $ 2 $ 2 $— $— $ 7 $ 7
Interest cost .............. 22 10 32 — 21 16 37 — 21 17 38
Expected return on assets .... — (5) (5) — — (8) (8) — — (6) (6)
Curtailment gain ........... — — — — — (27) (27) — — — —
Recognized net loss ........ — — — — — 1 1 — — 7 7
Other ................... — — — — 1 — 1 — — — —
Net periodic benefit cost
(benefit) ............... $ 22 $ 6 $ 28 $— $ 22 $(16) $ 6 $ — $ 21 $ 25 $ 46
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