Graco 2008 Annual Report Download - page 61

Newell Rubbermaid Inc. 2008 Annual Report
59
The Company has a Supplemental Executive Retirement Plan (“SERP”), which is a nonqualified defined benefit plan pursuant to which the Company
will pay supplemental pension benefits to certain key employees upon retirement based upon the employees’ years of service and compensation. The SERP
is partially funded through a trust agreement with the Northern Trust Company, as trustee, that owns life insurance policies on key employees. At December 31,
2008 and 2007, the life insurance contracts had a cash surrender value of $82.8 million and $78.8 million, respectively. The SERP is also partially funded
through cash and mutual fund investments, which had a combined value of $19.7 million and $22.5 million at December 31, 2008 and 2007, respectively.
These assets, as well as the cash surrender value of the life insurance contracts, are included in other assets in the Consolidated Balance Sheets. The
projected benefit obligation was $94.1 million and $85.1 million at December 31, 2008 and 2007, respectively. The SERP liabilities are included in the
pension table below; however, the Company’s investment in the life insurance contracts is excluded from the table as they do not qualify as plan assets
under SFAS No. 87, “Employers’ Accounting for Pensions.”
The Company’s matching contributions to the contributory 401(k) plan were $15.9 million, $15.6 million, and $15.9 million for the years ended
December 31, 2008, 2007 and 2006, respectively.
The following provides a reconciliation of benefit obligations, plan assets and funded status of the Company’s noncontributory defined benefit
pension plans, including the SERP, as of December 31, (in millions, except percentages):
U.S. International
2008 2007 2008 2007
Change in benefit obligation:
Benefit obligation at beginning of period $ 868.6 $ 855.8 $ 568.8 $ 543.7
Service cost 4.5 3.8 6.6 7.3
Interest cost 52.2 51.2 29.2 27.7
Contributions — — 0.7 0.8
Amendments — 1.6 — —
Actuarial (gain) loss (2.8) 18.8 (77.2) 0.4
Acquisitions and divestitures — — 10.0 (0.9)
Currency translation — — (117.3) 19.8
Benefits paid (1) (70.6) (62.6) (26.5) (24.4)
FAS 158 measurement date adoption adjustments (2) 11.8 — 2.0 —
Curtailments, settlement costs and other — — (4.7) (5.6)
Benefit obligation at end of period $ 863.7 $ 868.6 $ 391.6 $ 568.8
Change in plan assets:
Fair value of plan assets at beginning of period $ 763.7 $ 711.4 $ 453.3 $ 410.7
Actual return on plan assets (1) (208.7) 103.3 34.1 28.8
Acquisitions and divestitures — — 8.9 —
Contributions 8.0 11.6 24.6 29.7
Currency translation — — (124.7) 10.8
Benefits paid (1) (70.6) (62.6) (26.5) (24.4)
Settlement charges and other — — (6.8) (2.3)
Fair value of plan assets at end of period $ 492.4 $ 763.7 $ 362.9 $ 453.3
Funded status at end of period $(371.3) $(104.9) $ (28.7) $(115.5)
Amounts recognized in the Consolidated Balance Sheets:
Prepaid benefit cost (3) $ — $ — $ 45.2 $ 1.9
Accrued current benefit cost (4) (7.0) (6.7) (3.8) (4.2)
Accrued noncurrent benefit cost (5) (364.3) (98.2) (70.1) (113.2)
Total $ (371.3) $(104.9) $ (28.7) $(115.5)
Amounts recognized in Accumulated Other Comprehensive Loss:
Prior service cost $ (12.9) $ (14.1) $ — $ —
Net loss (484.7) (215.5) (3.5) (95.6)
Accumulated other comprehensive loss, pre-tax $ (497.6) $(229.6) $ (3.5) $ (95.6)
Accumulated benefit obligation $ 854.1 $ 861.9 $ 378.9 $ 556.4
(1) For plans with September 30 measurement dates prior to January 1, 2008, the 2008 amounts include activity for the 15 month period from October 1, 2007 to December 31, 2008. For these
same plans, 2007 amounts include activity for the 12 month period from October 1, 2006 to September 30, 2007.
(2) Adjustment for service and interest costs for the three months ended December 31, 2007 relating to the adoption of the measurement date provisions of SFAS 158 for plans historically
measured at September 30.
(3) Recorded in other assets.
(4) Recorded in other accrued liabilities.
(5) Recorded in other noncurrent liabilities.