Sears 2011 Annual Report Download - page 77

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
In addition to providing pension benefits, Sears provides domestic and Canadian employees and retirees
certain medical benefits. These benefits provide access to medical plans, with Company subsidies for certain
eligible retirees. Certain domestic Sears retirees are also provided life insurance benefits. To the extent we share
the cost of the retiree medical benefits with retirees, such cost sharing is based on years of service and year of
retirement. Sears’ postretirement benefit plans are not funded. We have the right to modify or terminate these
plans.
Pension Plans
2011 2010
millions
SHC
Domestic
Sears
Canada Total
SHC
Domestic
Sears
Canada Total
Change in projected benefit obligation
Beginning balance ....................... $5,623 $1,401 $ 7,024 $ 5,435 $1,256 $ 6,691
Interest cost ............................ 314 74 388 320 75 395
Actuarial loss .......................... 531 70 601 176 90 266
Benefits paid ........................... (359) (120) (479) (308) (108) (416)
Foreign currency exchange impact .......... — 1 1 — 88 88
Balance at the measurement date ............... $6,109 $1,426 $ 7,535 $ 5,623 $1,401 $ 7,024
Change in assets at fair value:
Beginning balance ....................... $4,054 $1,288 $ 5,342 $ 3,633 $1,211 $ 4,844
Actual return on plan assets ............... 4 51 55 452 98 550
Company contributions ................... 352 6 358 277 2 279
Benefits paid ........................... (359) (120) (479) (308) (108) (416)
Foreign currency exchange impact .......... — 2 2 — 85 85
Balance at the measurement date ............... $4,051 $1,227 $ 5,278 $ 4,054 $1,288 $ 5,342
Net amount recognized ....................... $(2,058) $ (199) $(2,257) $(1,569) $ (113) $(1,682)
The accumulated benefit obligation for the SHC Domestic pension plan was $6.1 billion at January 28, 2012
and $5.6 billion at January 29, 2011. The accumulated benefit obligation for the Sears Canada pension plan was
$1.4 billion at January 28, 2012 and $1.3 billion at January 29, 2011.
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