Sears 2008 Annual Report Download - page 76

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
For 2009 and beyond, the domestic weighted-average health care cost trend rates used in measuring the
postretirement benefit expense are an 8.3% trend rate in 2009 to an ultimate trend rate of 8.0% in 2013. A
one-percentage-point change in the assumed health care cost trend rate would have the following effects on the
postretirement liability:
millions
1 percentage-point
Increase
1 percentage-point
Decrease
Effect on total service and interest cost
components ................................ $ 1 $ (1)
Effect on postretirement benefit obligation ......... $14 $(13)
$64 million of the unrecognized net gains in accumulated other comprehensive income are expected to be
amortized as a component of net periodic benefit cost during fiscal 2009.
Information regarding expected future cash flows for our benefit plans is as follows:
millions
SHC
Domestic
Sears
Canada Total
Pension benefits:
Employer contributions:
Fiscal 2009 (expected) ......................................... $ 171 $ 5 $ 176
Expected benefit payments:
Fiscal 2009 ...................................................... $ 332 $ 86 $ 418
Fiscal 2010 ...................................................... 337 88 425
Fiscal 2011 ...................................................... 344 90 434
Fiscal 2012 ...................................................... 377 92 469
Fiscal 2013 ...................................................... 383 95 478
Fiscal 2014-2018 .................................................. 2,003 497 2,500
Postretirement benefits:
Employer contributions:
Fiscal 2009 (expected) ......................................... $ 39 $ 12 $ 51
Expected benefit payments:
Fiscal 2009 ...................................................... $ 39 $ 15 $ 54
Fiscal 2010 ...................................................... 37 16 53
Fiscal 2011 ...................................................... 35 16 51
Fiscal 2012 ...................................................... 33 17 50
Fiscal 2013 ...................................................... 31 17 48
Fiscal 2014-2018 .................................................. 129 88 217
76