Sears 2010 Annual Report Download - page 73

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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:
2010 2009 2008
millions
SHC
Domestic
Sears
Canada Total
SHC
Domestic
Sears
Canada Total
SHC
Domestic
Sears
Canada Total
Pension benefits:
Benefits earned
during the
period .......... $— $— $— $— $— $— $— $ 10 $ 10
Interest cost ........ 320 76 396 336 71 407 356 52 408
Expected return on
plan assets ....... (287) (77) (364) (241) (70) (311) (355) (63) (418)
Recognized net
loss ............ 87 — 87 76 — 76 — — —
Other ............. — — — — — — — — —
Net periodic benefit
cost (benefit) ..... $120 $ (1) $119 $171 $ 1 $172 $ 1 $ (1) $—
Postretirement benefits:
Benefits earned
during the
period .......... $— $ 1 $ 1 $— $ 1 $ 1 $— $ 1 $ 1
Interest cost ........ 16 16 32 19 16 35 22 10 32
Expected return on
assets ........... — (6) (6) — (6) (6) — (5) (5)
Curtailment gain .... — — — — — — — — —
Recognized net
gain ............ — — — (1) — (1) — — —
Amortization of net
actuarial gain ..... — — — — (2) (2) — — —
Other ............. — — — — — — — — —
Net periodic benefit
cost (benefit) ..... $ 16 $ 11 $ 27 $ 18 $ 9 $ 27 $ 22 $ 6 $ 28
Weighted-average assumptions used to determine net cost for years ended are as follows:
2010 2009 2008
SHC
Domestic
Sears
Canada
SHC
Domestic
Sears
Canada
SHC
Domestic
Sears
Canada
Pension benefits:
Discount Rate .......................... 6.00% 5.40% 7.00% 7.90% 6.45% 5.50%
Return of plan assets ..................... 8.00% 6.50% 7.75% 6.50% 7.50% 6.50%
Rate of compensation increases ............ N/A 3.50% N/A 3.50% N/A 4.00%
Postretirement benefits:
Discount Rate .......................... 6.00% 6.00% 7.00% 7.80% 6.45% 5.50%
Return of plan assets ..................... N/A 6.50% N/A 6.50% N/A 7.00%
Rate of compensation increases ............ N/A 3.50% N/A 3.50% N/A 4.00%
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