Hasbro 2010 Annual Report Download - page 79

Download and view the complete annual report

Please find page 79 of the 2010 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 106

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

(14) Pension, Postretirement and Postemployment Benefits
Pension and Postretirement Benefits
The Company recognizes an asset or liability for each of its defined benefit pension plans equal to the
difference between the projected benefit obligation of the plan and the fair value of the plan’s assets. Actuarial
gains and losses and prior service costs that have not yet been included in income are recognized in the
balance sheet in AOCE.
Expenses related to the Company’s defined benefit and defined contribution plans for 2010, 2009 and
2008 were approximately $34,900, $41,100 and $33,400, respectively. Of these amounts, $29,000, $27,600 and
$32,400, respectively, 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
Prior to 2008, substantially all United States employees were 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, were 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 at the end of December 2007.
At December 26, 2010, the measurement date, the projected benefit obligations of the funded plans were
in excess of the fair value of the plans’ assets in the amount of $25,086 while the unfunded plans of the
Company had an aggregate accumulated and projected benefit obligation of $38,281. At December 27, 2009,
the projected benefit obligations of the funded plans were in excess of the fair value of the plans’ assets in the
amount of $19,395 while the unfunded plans of the Company had an aggregate accumulated and projected
benefit obligation of $36,448.
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.
69
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)