Black & Decker 2011 Annual Report Download - page 94

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82
The accumulated benefit obligation for all defined benefit pension plans was $2,430.0 million at December 31, 2011 and
$2,334.8 million at January 1, 2011. Information regarding pension plans in which accumulated benefit obligations exceed plan assets
follows:
U.S. Plans
Non
-
U.S. Plans
(Millions of Dollars)
2011
2010
2011
2010
Projected benefit obligation ................................................................
..
$ 1,501.0 $ 1,376.7
$ 777.0
$ 927.5
Accumulated benefit obligation ................................
...........................
$ 1,498.0 $ 1,373.9
$ 751.2
$ 890.7
Fair value of plan assets ................................................................
.......
$ 1,079.5 $ 1,018.1
$ 518.7
$ 655.8
Information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases)
exceed plan assets follows:
U.S. Plans
Non
-
U.S. Plans
(Millions of Dollars)
2011
2010
2011
2010
Projected benefit obligation ................................................................
..
$ 1,501.1 $ 1,376.7
$ 785.1
$ 943.0
Accumulated benefit obligation ................................
...........................
$ 1,498.0 $ 1,373.9
$ 756.1
$ 904.5
Fair value of plan assets ................................................................
.......
$ 1,079.5 $ 1,018.1
$ 524.9
$ 670.2
The major assumptions used in valuing pension and post-retirement plan obligations and net costs were as follows:
Pension Benefits
Other Benefits
U.S. Plans
Non
-
U.S. Plans
U.S. Plans
2011
2010
2009
2011
2010
2009
2011
2010
2009
Weighted-average assumptions used
to determine benefit obligations at
year end:
Discount rate ................................
...............................
4.25%
5.25% 5.75%
5.0% 5.25%
5.75% 3.75%
4.5% 5.5%
Rate of compensation increase
................................
6.0%
6.0% 6.0%
3.5% 4.0%
4.25% —
3.75% 4.0%
Weighted-average assumptions used
to determine net periodic benefit
cost:
Discount rate ................................
...............................
5.25%
5.75% 6.0%
5.25% 5.75%
6.0% 4.50%
5.50% 6.25%
Rate of compensation increase
................................
6.0%
3.75% 6.0%
4.0% 4.25%
3.5% 3.75%
4.0% 4.0%
Expected return on plan assets
................................
7.0%
7.5% 7.5%
7.0% 6.75%
6.75% —
—
—
The expected rate of return on plan assets is determined considering the returns projected for the various asset classes and the relative
weighting for each asset class considering the target asset allocations. In addition the Company considers historical performance, the
recommendations from outside actuaries and other data in developing the return assumption. The Company expects to use a weighted-
average rate of return assumption of 6.25% for the U.S. and international plans, in the determination of fiscal 2012 net periodic benefit
expense.
PENSION PLAN ASSETS — Plan assets are invested in equity securities, government and corporate bonds and other fixed income
securities, money market instruments and insurance contracts. The Company’s worldwide asset allocations at December 31, 2011 and
January 1, 2011 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as
follows:
Asset Category
2011
Level 1
Level 2
Cash and cash equivalents
................................
................................
...
$ 35.6 $ 6.8 $ 28.8
Equity securities
U.S. equity securities ..............................................................................
323.5 62.8 260.7
Foreign equity securities .........................................................................
377.7 76.9 300.8
Fixed income securities
Government securities ............................................................................
468.6 244.5 224.1
Corporate securities ................................................................................
505.3 — 505.3
Mortgage-backed securities ....................................................................
1.9 — 1.9
Insurance contracts
................................
................................
..............
27.7 — 27.7
Other
................................
................................
................................
......
48.6 — 48.6
Total ........................................................................................................
$ 1,788.9 $ 391.0 $ 1,397.9