Hasbro 2007 Annual Report Download - page 76

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Expected benefit payments under the defined benefit pension plans and expected gross benefit payments
and subsidy receipts under the postretirement benefit for the next five years subsequent to 2007 and in the
aggregate for the following five years are as follows:
Pension
Gross
Benefit
Payments
Subsidy
Receipts
Postretirement
2008. . . ............................................ $ 19,992 2,582 275
2009. . . ............................................ 19,415 2,525 282
2010. . . ............................................ 18,430 2,619 287
2011. . . ............................................ 18,583 2,691 288
2012. . . ............................................ 19,324 2,750 286
2013-2017 .......................................... 103,050 13,986 1,284
Assumptions used to determine the net periodic benefit cost of the postretirement plans for the year to
date period are as follows:
2007 2006 2005
Health care cost trend rate assumed for next year .................... 9.00% 10.00% 9.00%
Rate to which the cost trend rate is assumed to decline (ultimate trend
rate) .................................................... 5.00% 5.00% 5.00%
Year that the rate reaches the ultimate trend rate ..................... 2016 2012 2011
If the health care cost trend rate were increased one percentage point in each year, the accumulated
postretirement benefit obligation at December 30, 2007 and the aggregate of the benefits earned during the
period and the interest cost would have each increased by approximately 5%.
International Plans
Pension coverage for employees of Hasbro’s international subsidiaries is provided, to the extent deemed
appropriate, through separate defined benefit and defined contribution plans. At December 30, 2007 and
December 31, 2006, the defined benefit plans had total projected benefit obligations of $72,359 and $73,333,
respectively, and fair values of plan assets of $55,881 and $55,429, respectively. Substantially all of the plan
assets are invested in equity and fixed income securities. The pension expense related to these plans was
$3,937, $3,702, and $3,073 in 2007, 2006 and 2005, respectively.
In fiscal 2008, the Company expects amortization of $120 of prior service costs, $25 of unrecognized net
losses and $52 of unrecognized transition obligation to be included as a component of net periodic benefit
cost.
Expected benefit payments under the international defined benefit pension plans for the five years
subsequent to 2007 and in the aggregate for the five years thereafter are as follows: 2008: $1,115; 2009:
$1,244; 2010: $1,482; 2011: $1,635; 2012: $2,398; and 2013 through 2017: $16,091.
Postemployment Benefits
Hasbro has several plans covering certain groups of employees, which may provide benefits to such
employees following their period of active employment but prior to their retirement. These plans include
certain severance plans which provide benefits to employees involuntarily terminated and certain plans which
continue the Company’s health and life insurance contributions for employees who have left Hasbro’s employ
under terms of its long-term disability plan.
68
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)