Other Post-Employment Benefits and Other Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

Profit Sharing, Retirement Savings Plans and Defined Benefit Pension Plans and Other Post-Employment Benefits and Other Employee Benefit Plans [Abstract]

Other Post-Employment Benefits and Other Employee Benefit Plans

Note 15 Other Post-Employment Benefits and Other Employee Benefit Plans

Other Postretirement Benefit Plans – Legacy Diversey

In addition to providing pension benefits, we provide for a portion of healthcare, dental, vision and life insurance benefits for certain retired legacy Diversey employees, primarily in North America. Covered employees retiring on or after attaining age 50 and who have rendered at least ten years of service are entitled to post-retirement healthcare, dental and life insurance benefits. These benefits are subject to deductibles, co-payment provisions and other limitations.

SEALED AIR CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Contributions made by us, net of Medicare Part D subsidies received in the U.S., are reported below as benefits paid. We may change the benefits at any time. We have elected to amortize the transition obligation over a 20-year period. The status of these plans, including a reconciliation of benefit obligations, a reconciliation of plan assets and the funded status of the plans, follows:

	Year Ended December 31,
	2011
Change in benefit obligations:
Benefit obligation at beginning of period		$—
Service cost		0.3
Interest cost		0.8
Plan participants’ contributions		—
Actuarial loss		3.9
Benefits paid		(1.2)
Loss due to exchange rate movements		0.1
Acquisition of Diversey		81.2
Plan Amendments		(14.0)
Benefit obligation at end of period		$71.1
Change in plan assets:
Fair value of plan assets at beginning of period		$—
Employer contribution		1.2
Plan participants’ contribution		—
Benefits paid		(1.2)
Fair value of plan assets at end of period		$—
Net amount recognized:
Funded status		$(71.1)
Net amount recognized in consolidated balance sheets consists of:
Current liability		$(4.7)
Noncurrent liability		(66.4)
Net amount recognized		$(71.1)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial loss		$3.9
Prior service credit		(13.9)
Total		$(10.0)

SEALED AIR CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

The accumulated post-retirement benefit obligations were determined using a weighted-average discount rate of 4.6% at December 31, 2011. The components of net periodic benefit cost for the three months ended December 31, 2011:

	Three Months Ended December 31, 2011
Service cost		$0.3
Interest cost		0.8
Amortization of net loss		—
Amortization of prior service credit		(0.1)
Curtailments, settlements and special termination benefits		—
Net periodic benefit cost		$1.0

The amounts in accumulated other comprehensive income as of December 31, 2011 that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows:

Actuarial (gain) loss	$	—
Prior service (credit) cost		(0.9	)
Transition (asset) obligation		—

Other Postretirement Benefit Plans – Legacy Sealed Air

We generally do not offer our employees postretirement benefits other than programs that are required by the foreign countries in which we operate. In the U.S., we offer a postretirement healthcare program that is fully funded by the participating retired employees, except as noted below. These programs are not material to our consolidated financial condition and results of operations.

Since March 31, 1998, we have offered to some U.S. employees of the Cryovac packaging business a fixed subsidy applicable to participation in our U.S. postretirement healthcare program. The accrued benefit liability associated with these subsidies amounted to $3 million at December 31, 2011 and 2010. The net periodic postretirement expense and credit components, together with other remaining postretirement healthcare plans, are not material to our consolidated financial statements.

Healthcare Cost Trend Rates

For the year ended December 31, 2011, healthcare cost trend rates were assumed to be 4% for international plans, 8% for U.S. plans in 2012 and decreasing to 5% by 2018, and 9% for Canadian plans in 2012 decreasing to 5% by 2018. The assumed healthcare cost trend rate has an effect on the amounts reported for the healthcare plans. A one percentage point change on assumed healthcare cost trend rates would have the following effect for the year ended December 31, 2011:

	1% Increase		1% Decrease
Effect on total of service and interest cost components		$0.1		$(0.1)
Effect on post-retirement benefit obligation		2.7		(2.9)

The amortization of any prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plan.

SEALED AIR CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements — (Continued)

Expected post-retirement benefits (net of Medicare Part D subsidies) for each of the next five years and succeeding five years are as follows:

Year	Amount
2012	$	4.8
2013		4.8
2014		5.0
2015		4.8
2016		4.6
2017 — 2021	$	25.3

  Other Employee Benefit Plans

Discretionary Cash Profit-Sharing Plan – Legacy Diversey

The legacy Diversey portion of the Company has a discretionary cash profit-sharing plan covering certain employees. Under the plan, we had no expense during the three months ended December 31, 2011.