Sears 2009 Annual Report Download - page 77

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Net Periodic Benefit Cost
The components of net periodic benefit cost are as follows:
2009 2008 2007
millions
SHC
Domestic
Sears
Canada Total
SHC
Domestic
Sears
Canada Total Kmart
Sears
Domestic
Sears
Canada Total
Pension benefits:
Benefits earned during the
period ................... $— $— $— $— $ 10 $ 10 $— $— $ 32 $ 32
Interest cost ................ 336 71 407 356 52 408 154 170 74 398
Expected return on plan
assets ................... (241) (70) (311) (355) (63) (418) (171) (175) (92) (438)
Recognized net loss .......... 76 — 76 — — — — — — —
Other ..................... — — — — — — — (13) — (13)
Net periodic benefit cost
(benefit) ................. $171 $ 1 $172 $ 1 $ (1) $— $ (17) $ (18) $ 14 $ (21)
Postretirement benefits:
Benefits earned during the
period ................... $— $ 1 $ 1 $— $ 1 $ 1 $— $— $ 2 $ 2
Interest cost ................ 19 16 35 22 10 32 — 21 16 37
Expected return on assets ...... — (6) (6) — (5) (5) — — (8) (8)
Curtailment gain ............. — — — — — — — — (27) (27)
Recognized net gain .......... (1) — (1) — — — — — 1 1
Amortization of net actuarial
gain ..................... — (2) (2) — — — — — — —
Other ..................... — — — — — — — 1 — 1
Net periodic benefit cost
(benefit) ................. $ 18 $ 9 $ 27 $ 22 $ 6 $ 28 $— $ 22 $(16) $ 6
Weighted-average assumptions used to determine net cost for years ended are as follows:
2009 2008 2007
SHC
Domestic
Sears
Canada
SHC
Domestic
Sears
Canada Kmart
Sears
Domestic
Sears
Canada
Pension benefits:
Discount Rate ................... 7.00% 7.90% 6.45% 5.50% 5.90% 5.90% 5.25%
Return of plan assets .............. 7.75% 6.50% 7.50% 6.50% 7.75% 7.75% 6.50%
Rate of compensation increases ..... N/A 3.50% N/A 4.00% N/A N/A 4.00%
Postretirement benefits:
Discount Rate ................... 7.00% 7.80% 6.45% 5.50% N/A 5.90% 5.25%
Return of plan assets .............. N/A 6.50% N/A 7.00% N/A N/A 7.00%
Rate of compensation increases ..... N/A 3.50% N/A 4.00% N/A N/A 4.00%
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