Black & Decker 2011 Annual Report Download - page 92

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c. If the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those
plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
In addition, the Company also contributes to a number of multiemployer plans outside of the U.S. The foreign plans are insured,
therefore, the Company’s obligation is limited to the payment of insurance premiums.
The Company has assessed and determined that none of the multiemployer plans to which it contributes are individually significant to
the Company’s financial statements The Company does not expect to incur a withdrawal liability or expect to significantly increase its
contributions over the remainder of the contract period.
In addition to the multiemployer plans, various other defined contribution plans are sponsored worldwide, including a tax-deferred
401(k) savings plan covering substantially all Black & Decker U.S. employees.
The expense for such defined contribution plans, aside from the earlier discussed ESOP plans, follows:
(Millions of Dollars)
2011
2010
2009
Multi-employer plan expense ................................................................
....................
$ 3.0
$ 0.6 $ 0.5
Other defined contribution plan expense ................................................................
...
$ 9.9
$ 16.4 $ 3.3
The decrease in other defined contribution plan expense in 2011 relative to 2010 primarily pertains to the merger of the Black &
Decker U.S. defined contribution plan into the ESOP. The multiemployer plan expense and other defined contribution expense
increased in 2010, as compared to 2009, due to the Merger.
The components of net periodic pension expense are as follows:
U.S. Plans
Non
-
U.S. Plans
(Millions of Dollars)
2011
2010
2009
2011
2010
2009
Service cost ................................................................
..........................
$ 6.5
$ 18.1
$ 2.6
$ 12.6
$ 12.8
$ 3.8
Interest cost ................................................................
..........................
69.6
61.2
9.8
52.9
44.7
13.3
Expected return on plan assets ................................
.............................
(70.0) (52.5) (6.7
)
(50.5) (39.8
)
(14.9)
Prior service cost amortization ................................
.............................
1.0
1.0
1.2
0.3
0.2
0.1
Transition obligation amortization ................................
.......................
—
—
—
0.1
0.1
0.1
Actuarial loss amortization ................................
................................
2.5
2.0
2.9
3.0
4.1
2.4
Settlement / curtailment loss (gain) ................................
.....................
1.9
(9.1) 1.2
(0.5) (2.3
)
(1.7)
Net periodic pension expense
................................
..............................
$ 11.5
$ 20.7
$ 11.0
$ 17.9
$ 19.8
$ 3.1
The Company provides medical and dental benefits for certain retired employees in the United States and Canada. Approximately
10,800 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following
elements:
Other Benefit Plans
(Millions of Dollars)
2011
2010
2009
Service cost ................................................................................................
...........
$ 0.6
$ 1.3
$ 0.8
Interest cost ................................................................................................
...........
3.6
4.6
1.3
Prior service credit amortization ................................................................
...........
(1.2) (0.2
)
(0.2)
Actuarial loss amortization ................................................................
...................
(0.2) (0.1
)
(0.1)
Settlement / curtailment gain ................................................................
................
—
(7.2
)
—
Net periodic post
-retirement benefit (income) expense ................................
........
$ 2.8
$ (1.6
)
$ 1.8
Changes in plan assets and benefit obligations recognized in other comprehensive income in 2011 are as follows:
(Millions of Dollars)
2011
Current year actuarial loss ................................................................
....................
$ 141.1
Amortization of actuarial loss ................................................................
...............
(6.7)
Prior service cost from plan amendments ................................
.............................
3.6
Amortization of prior service costs ................................................................
.......
(0.2)
Amortization of transition obligation ................................................................
...
(0.1)
Currency / other ................................................................................................
....
(1.6)
Total loss recognized in other comprehensive income (pre-tax)
..........................
$ 136.1