Sears 2009 Annual Report Download - page 76

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Postretirement Obligations
2009 2008
millions
SHC
Domestic
Sears
Canada Total
SHC
Domestic
Sears
Canada Total
Change in projected benefit obligation:
Beginning balance .......................... $297 $190 $487 $334 $308 $ 642
Benefits earned during the period .............. — 1 1 — 1 1
Interest cost ............................... 19 15 34 22 17 39
Plan participants’ contributions ............... 48 — 48 54 — 54
Actuarial loss (gain) ........................ 3 44 47 (12) (66) (78)
Benefits paid .............................. (77) (14) (91) (101) (19) (120)
Foreign currency exchange rate impact and
other .................................. — 30 30 — (51) (51)
Balance as of the measurement date ................ $290 $266 $556 $297 $190 $ 487
Change in plan assets at fair value:
Beginning of year balance ................... $— $ 95 $ 95 $— $116 $ 116
Actual return on plan assets .................. — 8 8 — 3 3
Company contributions ...................... 29 — 29 47 16 63
Plan participants’ contributions ............... 48 — 48 54 — 54
Benefits paid .............................. (77) (14) (91) (101) (19) (120)
Foreign currency exchange rate impact and
other .................................. — 13 13 — (21) (21)
Balance as of the measurement date ................ $— $102 $102 $— $ 95 $ 95
Funded status ................................. $(290) $(164) $(454) $(297) $ (95) $(392)
The current portion of our liability for postretirement obligations is $36 million, which we expect to pay
during fiscal 2010.
Weighted-average assumptions used to determine plan obligations are as follows:
2009 2008 2007
SHC
Domestic
Sears
Canada
SHC
Domestic
Sears
Canada Kmart
Sears
Domestic
Sears
Canada
Pension benefits:
Discount Rate ................... 6.00% 6.00% 7.00% 7.90% 6.45% 6.45% 5.50%
Rate of compensation increases ..... N/A 3.50% N/A 3.50% N/A N/A 4.00%
Postretirement benefits:
Discount Rate ................... 6.00% 6.00% 7.00% 7.80% N/A 6.45% 5.50%
Rate of compensation increases ..... N/A 3.50% N/A 3.50% N/A N/A 4.00%
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