Black & Decker 2012 Annual Report Download - page 101

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87
The increase in the projected benefit obligation from actuarial losses in 2012 primarily pertains to the decline in discount rates.
The accumulated benefit obligation for all defined benefit pension plans was $2,551.1 million at December 29, 2012 and
$2,430.0 million at December 31, 2011. Information regarding pension plans in which accumulated benefit obligations exceed
plan assets follows:
U.S. Plans
Non-U.S. Plans
(Millions of Dollars) 2012
2011
2012
2011
Projected benefit obligation………………………………
$
1,463.4
$
1,501.0
$
1,125.9
$
777.0
Accumulated benefit obligation…………………………. $
1,460.7
$
1,498.0
$
1,084.2
$
751.2
Fair value of plan assets…………………………………. $
1,057.1
$
1,079.5
$
769.8
$
518.7
Information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation
increases) exceed plan assets follows:
U.S. Plans
Non-U.S. Plans
(Millions of Dollars) 2012
2011
2012
2011
Projected benefit obligation………………………………
$
1,463.4
$
1,501.0
$
1,134.3
$
785.1
Accumulated benefit obligation…………………………. $
1,460.7
$
1,498.0
$
1,090.3
$
756.1
Fair value of plan assets…………………………………. $
1,057.1
$
1,079.5
$
777.7
$
524.9
The major assumptions used in valuing pension and post-retirement plan obligations and net costs were as follows:
Pension Benefits
U.S. Plans
Non-U.S. Plans
Other Benefits
2012
2011
2010
2012
2011
2010
2012
2011
2010
Weighted-average
assumptions used to
determine benefit obligations
at year end:
Discount rate…………………..
3.75%
4.25%
5.25%
4.00%
5.00%
5.25
%
3.00%
3.75%
4.50%
Rate of compensation increase...
6.00%
6.00%
6.00%
3.25%
3.50%
4.00
%
3.50%
—
3.75%
Weighted
-
average
assumptions used to
determine net periodic benefit
cost:
Discount rate…………………..
4.25%
5.25%
5.75%
5.00%
5.25%
5.75
%
3.75%
4.50%
5.50%
Rate of compensation increase...
6.00%
6.00%
3.75%
3.50%
4.00%
4.25
%
3.50%
3.75%
4.00%
Expected return on plan assets...
6.25%
7.00%
7.50%
6.25%
7.00%
6.75
%
—
—
—
The expected rate of return on plan assets is determined considering the returns projected for the various asset classes and the
relative weighting for each asset class. The Company will use a 6.00% weighted-average expected rate of return assumption to
determine the 2013 net periodic benefit cost.
PENSION PLAN ASSETS — Plan assets are invested in equity securities, government and corporate bonds and other fixed
income securities, money market instruments and insurance contracts. The Company’s worldwide asset allocations at
December 29, 2012 and December 31, 2011 by asset category and the level of the valuation inputs within the fair value
hierarchy established by ASC 820 are as follows: