DuPont 2009 Annual Report Download - page 96

E. I. du Pont de Nemours and Company
Notes to the Consolidated Financial Statements (continued)
(Dollars in millions, except per share)
The estimated pre-tax net loss and prior service cost for the defined benefit pension plans that will be amortized from
accumulated other comprehensive loss into net periodic benefit cost during 2010 are $506 and $16, respectively.
Other Benefits
Components of net periodic benefit cost and amounts recognized in other comprehensive income 2009 2008 2007
Net periodic benefit cost
Service cost $31 $29 $34
Interest cost 245 226 242
Amortization of loss 50 32 72
Amortization of prior service benefit (106) (106) (156)
Net periodic benefit cost $ 220 $ 181 $ 192
Changes in plan assets and benefit obligations recognized in other
comprehensive income
Net (gain)/loss $ 110 $ 349 $(564)
Amortization of loss (50) (32) (72)
Prior service cost (4) -2
Amortization of prior service benefit 106 106 156
Total recognized in other comprehensive income $ 162 $ 423 $(478)
Total recognized in net periodic benefit cost and other comprehensive income $ 382 $ 604 $(286)
The estimated pre-tax net loss and prior service credit for the other long-term employee benefit plans that will be
amortized from accumulated other comprehensive loss into net periodic benefit cost during 2010 are $58 and ($106),
respectively.
Pension Benefits Other Benefits
Weighted-average assumptions used to determine benefit obligations at December 31, 2009 2008 2009 2008
Discount rate 5.80% 6.14% 6.00% 6.25%
Rate of compensation increase 4.24% 4.30% 4.50% 4.50%
Pension Benefits Other Benefits
Weighted-average assumptions used to determine net periodic benefit cost for the
years ended December 31, 2009 2008 2009 2008
Discount rate 6.14% 6.01% 6.25% 6.25%
Expected return on plan assets 8.75% 8.74% --
Rate of compensation increase 4.30% 4.28% 4.50% 4.50%
For determining U.S. plans’ net periodic benefit costs, the discount rate, expected return on plan assets and the rate of
compensation increase were 6.25 percent, 9.00 percent and 4.50 percent for 2009, and 6.25 percent, 9.00 percent and
4.50 percent for 2008.
In August 2006, the company announced major changes to the pension and defined contribution benefits that cover
the majority of its U.S. employees. Effective January 1, 2008, such full service employees on the rolls as of
December 31, 2006 continue to accrue benefits in the pension plan, but at a reduced rate of about one-third of its
previous level. In addition, company-paid postretirement survivor benefits for these employees do not continue to grow
after December 31, 2007. Such employees hired after December 31, 2006 do not participate in the pension plan. As a
result of this plan amendment, pension expense was reduced by about $40 in 2007. The combined pension and
defined contribution plan expenses were reduced by about $60 and $40 in 2009 and 2008, respectively.
The company utilizes published long-term high quality corporate bond indices to determine the discount rate at
measurement date. Where commonly available, the company considers indices of various durations to reflect the
timing of future benefit payments.
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