Hasbro 2014 Annual Report Download - page 98

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HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)
respective director ceases to be a member of the Company’s Board of Directors. These awards were valued at the
market value of the underlying common stock at the date of grant and vested upon grant. In connection with
these grants, compensation cost of $1,834 was recorded in selling, distribution and administration expense in the
year ended December 28, 2014 and $1,560 in each year in the two-year period ended December 29, 2013.
Cash-Settled Restricted Stock Units
In 2011 and 2010, the Company granted awards to certain employees consisting of cash settled restricted
stock units. Under these awards, the recipients are granted restricted stock units that vest over three years. At the
end of the vesting period, the fair value of those units based on Hasbro’s stock price will be paid in cash to the
recipient. The Company accounted for these awards as a liability which was marked to market through the
consolidated statements of operations based on the current market price and lapsed portion of the vesting period.
In 2014, 2013 and 2012, the Company recognized expense of $(113), $1,316 and $1,348, respectively related to
these awards.
(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
consolidated balance sheets in AOCE. Reclassifications to earnings from AOCE related to pension and
postretirement plans are recorded to selling, distribution and administration expense.
Expenses related to the Company’s defined benefit pension and defined contribution plans for 2014, 2013
and 2012 were approximately $34,300, $35,900 and $40,300, respectively. Of these amounts, $28,100, $23,000
and $29,500, respectively, related to defined contribution plans in the United States and certain international
subsidiaries. The remainder of the expense relates to defined benefit pension 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 28, 2014, 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 $73,398 while the unfunded plans of the Company
had an aggregate accumulated and projected benefit obligation of $37,660. At December 29, 2013 the projected
benefit obligations of the funded plans were in excess of the fair value of the plans’ assets in the amount of
$24,551 while the unfunded plans of the Company had an aggregate accumulated and projected benefit
obligation of $34,886.
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.
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