Sears 2013 Annual Report Download - page 87

Download and view the complete annual report

Please find page 87 of the 2013 Sears annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 137

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
87
Postretirement Obligations
2013 2012
millions SHC
Domestic Sears
Canada Total SHC
Domestic Sears
Canada Total
Change in accumulated postretirement benefit
obligation:
Beginning balance . . . . . . . . . . . . . . . . . . . . $ 247 $ 295 $ 542 $ 253 $ 321 $ 574
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . 8 12 20 10 14 24
Plan participants' contributions . . . . . . . . . . 31 — 31 42 — 42
Actuarial (gain) loss . . . . . . . . . . . . . . . . . . (15) (2)(17) 9 16 25
Settlement gain . . . . . . . . . . . . . . . . . . . . . . ————(22)(22)
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . (56) (15)(71)(67)(17)(84)
Benefits paid - settlements. . . . . . . . . . . . . . ————(18)(18)
Plan amendment . . . . . . . . . . . . . . . . . . . . . —(46)(46) — — —
Foreign currency exchange rate impact and
other . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(28)(28) — 1 1
Balance at the measurement date . . . . . . . . . . . . $ 215 $ 216 $ 431 $ 247 $ 295 $ 542
Change in plan assets at fair value:
Beginning of year balance. . . . . . . . . . . . . . $ — $ 45 $ 45 $ — $ 69 $ 69
Actual return on plan assets. . . . . . . . . . . . . — 1 1 — — —
Company contributions . . . . . . . . . . . . . . . . 25 1 26 25 19 44
Plan participants' contributions . . . . . . . . . . 31 — 31 42 — 42
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . (56) (15)(71)(67)(17)(84)
Benefits paid - settlements. . . . . . . . . . . . . . ————(18)(18)
Foreign currency exchange rate impact and
other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —(12)(12) — (8)(8)
Balance at the measurement date . . . . . . . . . . . . $ — $ 20 $ 20 $ — $ 45 $ 45
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (215) $ (196) $ (411) $ (247) $ (250) $ (497)
The current portion of our liability for postretirement obligations is $25 million, which we expect to pay
during fiscal 2014.
Weighted-average assumptions used to determine plan obligations were as follows:
2013 2012 2011
SHC
Domestic Sears
Canada SHC
Domestic Sears
Canada SHC
Domestic Sears
Canada
Pension benefits:
Discount Rate . . . . . . . . . . . . . . . 4.60% 4.20% 4.25% 4.20% 4.90% 4.70%
Rate of compensation increases .N/A 3.50% N/A 3.50% N/A 3.50%
Postretirement benefits:
Discount Rate . . . . . . . . . . . . . . . 4.00% 4.20% 3.55% 4.20% 4.20% 4.60%
Rate of compensation increases .N/A 3.50% N/A 3.50% N/A 3.50%