Hasbro 2008 Annual Report Download - page 76

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United States Plans
Substantially all United States employees are 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, are 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. In connection with this, the Company recognized a reduction
of its projected benefit obligation as a result of this curtailment of $18,499 and recorded a curtailment loss of
$908. The pension benefit was replaced by additional employer contributions to the Company’s defined
contribution plan beginning in 2008.
At December 28, 2008, the measurement date, the projected benefit obligations of the funded plans were
in excess of those plans’ fair value of plan assets in the amount of $25,142 while the unfunded plans of the
Company had an aggregate accumulated and projected benefit obligation of $43,450. At December 30, 2007,
the fair value of the plan assets of the funded plans were in excess of those plans’ projected benefit
obligations.
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. As noted above, in 2007, the
Company adopted the measurement date provisions of SFAS No. 158.
66
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)