Sears 2012 Annual Report Download - page 79

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
79
members earn pensionable service under the defined contribution component of the Sears Canada Inc. Registered
Retirement Plan.
Pension benefits are based on length of service, compensation and, in certain plans, social security or other
benefits. Funding for the various plans is determined using various actuarial cost methods.
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
2012 2011
millions SHC
Domestic Sears
Canada Total SHC
Domestic Sears
Canada Total
Change in projected benefit obligation:
Beginning balance . . . . . . . . . . . . . . . . $ 6,109 $ 1,426 $ 7,535 $ 5,623 $ 1,401 $ 7,024
Interest cost . . . . . . . . . . . . . . . . . . . . . 291 65 356 314 74 388
Actuarial loss. . . . . . . . . . . . . . . . . . . . 639 64 703 531 70 601
Benefits paid . . . . . . . . . . . . . . . . . . . . (323) (122)(445)(359)(120)(479)
Settlements . . . . . . . . . . . . . . . . . . . . . (1,405) — (1,405) — — —
Foreign currency exchange impact . . . — 5 5 — 1 1
Balance at the measurement date . . . . . . . . $ 5,311 $ 1,438 $ 6,749 $ 6,109 $ 1,426 $ 7,535
Change in assets at fair value:
Beginning balance . . . . . . . . . . . . . . . . $ 4,051 $ 1,227 $ 5,278 $ 4,054 $ 1,288 $ 5,342
Actual return on plan assets. . . . . . . . . 382 130 512 4 51 55
Company contributions . . . . . . . . . . . . 516 33 549 352 6 358
Benefits paid . . . . . . . . . . . . . . . . . . . . (323) (122)(445)(359)(120)(479)
Settlements . . . . . . . . . . . . . . . . . . . . . (1,405) — (1,405) — — —
Foreign currency exchange impact . . . — 4 4 — 2 2
Balance at the measurement date . . . . . . . . $ 3,221 $ 1,272 $ 4,493 $ 4,051 $ 1,227 $ 5,278
Net amount recognized. . . . . . . . . . . . . . . . $ (2,090) $ (166) $ (2,256) $ (2,058) $ (199) $ (2,257)
The accumulated benefit obligation for the SHC Domestic pension plan was $5.3 billion at February 2, 2013
and $6.1 billion at January 28, 2012. The accumulated benefit obligation for the Sears Canada pension plan was $1.4
billion at both February 2, 2013 and January 28, 2012.