Hasbro 2006 Annual Report Download - page 73

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United States Plans
Substantially all United States employees are covered under at least one of several non-contributory
defined benefit pension plans maintained by the Company. Benefits under the two major plans which
principally cover non-union employees, are based primarily on salary and years of service. One of these major
plans is funded. Benefits under the remaining plans are based primarily on fixed amounts for specified years
of service. Of these remaining plans, the plan covering union employees is also funded. At September 30,
2006, the measurement date, all individual plans had projected and accumulated benefit obligations in excess
of the fair value of each plan’s assets. By the fiscal year ending December 28, 2008, the Company will be
required under SFAS 158 to change the measurement dates for its pension plans to its fiscal year-end.
Hasbro also provides certain postretirement health care and life insurance benefits to eligible employees
who retire and have either attained age 65 with 5 years of service or age 55 with 10 years of service. The cost
of providing these benefits on behalf of employees who retired prior to 1993 is and will continue to be
substantially borne by the Company. The cost of providing benefits on behalf of substantially all employees
who retire after 1992 is borne by the employee. The plan is not funded.
62
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)