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Newell Rubbermaid Inc. 2009 Annual Report
65
Net pension cost includes the following components for the years ended December 31, (in millions, except percentages):
U.S. International
2009 2008 2007 (1) 2009 2008 2007 (1)
Service cost-benefits earned during the year $ 4.8 $ 4.5 $ 3.8 $ 4.9 $ 6.6 $ 7.3
Interest cost on projected benefit obligation 52.1 52.2 51.2 24.5 29.2 27.7
Expected return on plan assets (57.2) (57.7) (58.6) (22.2) (28.5) (27.4)
Amortization of:
Prior service cost 1.3 1.3 1.1 — — —
Actuarial loss 8.3 7.1 7.6 0.1 3.6 4.5
Curtailment, settlement and termination benefit costs — — — 1.3 — (2.8)
Net pension cost $ 9.3 $ 7.4 $ 5.1 $ 8.6 $ 10.9 $ 9.3
(1) For plans with September 30 measurement dates prior to January 1, 2008, the 2007 amounts represent 12 months of net pension costs for the period October 1, 2006 to September 30, 2007. Net pension
cost activity for the three months ended December 31, 2007 is included in the $1.1 million decrease in retained earnings and after-tax benefit to AOCI of $0.7 million recorded as of January 1, 2008.
U.S. International
2009 2008 2007 2009 2008 2007
Weighted-average assumptions used to determine net
periodic benefit cost:
Discount rate 6.25% 6.25% 6.00% 6.08% 5.52% 5.16%
Long-term rate of return on plan assets 8.50% 8.50% 8.50% 5.65% 6.77% 6.33%
Long-term rate of compensation increase 4.00% 4.00% 4.50% 3.83% 4.31% 3.85%
The Company is not required to make contributions to its primary U.S. pension plan in 2010, but the Company expects to make cash contributions of
approximately $32.7 million to its defined benefit pension plans in 2010, substantially all of which is for the Company’s international defined benefit
pension plans.