Hasbro 2015 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)
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. Following the August 2015 sale of its manufacturing facility in East Longmeadow, MA,
the Company elected to freeze benefits related to its major plan covering union employees.
At December 27, 2015, 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 $66,980 while the unfunded plans of the Company
had an aggregate accumulated and projected benefit obligation of $34,751. At December 28, 2014 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.
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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