Sears 2011 Annual Report Download - page 78

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Postretirement Obligations
2011 2010
millions
SHC
Domestic
Sears
Canada Total
SHC
Domestic
Sears
Canada Total
Change in accumulated postretirement benefit
obligation:
Beginning balance .......................... $286 $303 $589 $290 $266 $556
Benefits earned during the period .............. — — — — 1 1
Interest cost ............................... 13 16 29 16 16 32
Plan participants’ contributions ............... 43 — 43 46 — 46
Actuarial (gain) loss ........................ (15) 19 4 16 14 30
Benefits paid .............................. (74) (17) (91) (82) (13) (95)
Foreign currency exchange rate impact and
other .................................. — — — — 19 19
Balance at the measurement date .................. $253 $321 $574 $286 $303 $589
Change in plan assets at fair value:
Beginning of year balance ................... $— $ 90 $ 90 $— $102 $102
Actual return on plan assets .................. — 3 3 — 3 3
Company contributions ...................... 31 1 32 36 1 37
Plan participants’ contributions ............... 43 — 43 46 — 46
Benefits paid .............................. (74) (17) (91) (82) (21) (103)
Foreign currency exchange rate impact and
other .................................. — (8) (8) — 5 5
Balance at the measurement date .................. $— $ 69 $ 69 $— $ 90 $ 90
Funded status ................................. $(253) $(252) $(505) $(286) $(213) $(499)
The current portion of our liability for postretirement obligations is $29 million, which we expect to pay
during fiscal 2012.
Weighted-average assumptions used to determine plan obligations are as follows:
2011 2010 2009
SHC
Domestic
Sears
Canada
SHC
Domestic
Sears
Canada
SHC
Domestic
Sears
Canada
Pension benefits:
Discount Rate .......................... 4.90% 4.70% 5.75% 5.40% 6.00% 6.00%
Rate of compensation increases ............ N/A 3.50% N/A 3.50% N/A 3.50%
Postretirement benefits:
Discount Rate .......................... 4.20% 4.60% 5.00% 5.40% 6.00% 6.00%
Rate of compensation increases ............ N/A 3.50% N/A 3.50% N/A 3.50%
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