Hasbro 2007 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2007 Hasbro 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 100

  • 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
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Expense related to the Company’s defined benefit and defined contribution plans for 2007, 2006 and
2005 were approximately $25,900, $31,100, and $28,800, respectively. Of these amounts, $13,400, $15,400
and $13,900 related to defined contribution plans in the United States and certain international affiliates. The
remainder of the expense relates to defined benefit plans discussed below.
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.
In 2007, for the two major plans covering its non-union employees, the Company froze benefits being
accrued effective December 30, 2007. In connection with this, the Company recognized a reduction of its
projected benefit obligation as a result of this curtailment of $18,499 and recorded a curtailment loss of $908.
The pension benefit will be replaced by additional employer contributions to the Company’s defined
contribution plan beginning in 2008.
At December 30, 2007, the measurement date, the fair value of the plan assets of the funded plans were
in excess of those plans’ benefit obligations while the unfunded plans of the Company had an aggregate
accumulated and projected benefit obligation of $45,052. At September 30, 2006, all individual plans had
projected and accumulated benefit obligations in excess of the fair value of each plan’s assets.
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. As noted above, in 2007, the
Company adopted the measurement date provisions of SFAS No. 158.
Reconciliations of the beginning and ending balances for the year ended December 30, 2007, the
transition period related to the change in measurement date referred to above, and for the year ended
December 31, 2006 for the projected benefit obligation and the fair value of plan assets are included below.
64
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)