Graco 2007 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2007 Graco 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 84

  • 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

Newell Rubbermaid Inc. 2007 Annual Report
65
Other Postretirement Benefit Plans
Several of the Company’s subsidiaries currently provide retiree health care and life insurance benefits for certain employee groups. The following
provides a reconciliation of benefit obligations and funded status of the Company’s other postretirement benefit plans as of December 31, (in millions,
except percentages):
2007 2006
Change in benefit obligation:
Benefit obligation at beginning of plan year $ 178.7 $ 173.4
Service cost 1.7 2.6
Interest cost 10.7 10.0
Actuarial (gain) loss (8.6) 16.5
Benefits paid (18.0) (23.8)
Benefit obligation at end of plan year $ 164.5 $ 178.7
Funded Status:
Funded status at end of plan year $(164.5) $(178.7)
Contributions made between measurement date and December 31 4.0 5.8
Net liability recognized at December 31 $(160.5) $(172.9)
Amounts recognized in the Consolidated Balance Sheets:
Accrued current benefit cost (1) $ (17.6) $ (18.4)
Accrued noncurrent benefit cost (2) (142.9) (154.5)
Total $(160.5) $(172.9)
Amounts recognized in Accumulated Other Comprehensive Income (Loss):
Prior service credit $ 21.2 $ 23.6
Net loss (10.3) (18.9)
Accumulated other comprehensive income, pre-tax $ 10.9 $ 4.7
(1) Recorded in other accrued liabilities.
(2) Recorded in other noncurrent liabilities.
There are no plan assets associated with the Company’s other postretirement benefit plans.
The weighted average discount rate at the measurement dates for the Company’s other postretirement benefit plans is developed using a spot
interest yield curve based upon a broad population of corporate bonds rated AA or higher, adjusted to match the duration of each plan’s benefits. The
following are the weighted-average assumptions used to determine net periodic benefit cost for the other postretirement benefit plans:
2007 2006
Discount rate 6.00% 5.75%
Long-term health care cost trend rate 6.00% 6.00%