Hasbro 2008 Annual Report Download - page 80

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Expected benefit payments under the defined benefit pension plans and expected gross benefit payments
and subsidy receipts under the postretirement benefit for the next five years subsequent to 2008 and in the
aggregate for the following five years are as follows:
Pension
Gross
Benefit
Payments
Subsidy
Receipts
Postretirement
2009. . . ............................................ $ 30,077 2,382 262
2010. . . ............................................ 18,398 2,311 267
2011. . . ............................................ 18,916 2,406 268
2012. . . ............................................ 19,613 2,463 267
2013. . . ............................................ 19,608 2,525 261
2014-2018 .......................................... 103,916 12,651 1,123
Assumptions used to determine the net periodic benefit cost of the postretirement plan for the year to
date periods are as follows:
2008 2007 2006
Health care cost trend rate assumed for next year .................... 9.00% 9.00% 10.00%
Rate to which the cost trend rate is assumed to decline (ultimate
trend rate) ............................................... 5.00% 5.00% 5.00%
Year that the rate reaches the ultimate trend rate ..................... 2016 2016 2012
If the health care cost trend rate were increased one percentage point in each year, the accumulated
postretirement benefit obligation at December 28, 2008 and the aggregate of the benefits earned during the
period and the interest cost would have increased by approximately 4% and 5%, respectively.
International Plans
Pension coverage for employees of Hasbro’s international subsidiaries is provided, to the extent deemed
appropriate, through separate defined benefit and defined contribution plans. At December 28, 2008 and
December 30, 2007, the defined benefit plans had total projected benefit obligations of $67,437 and $72,359,
respectively, and fair values of plan assets of $40,515 and $55,881, respectively. Substantially all of the plan
assets are invested in equity and fixed income securities. The pension expense related to these plans was
$3,226, $3,937, and $3,702 in 2008, 2007 and 2006, respectively.
In fiscal 2009, the Company expects amortization of $120 of prior service costs, $680 of unrecognized
net losses and $28 of unrecognized transition obligation to be included as a component of net periodic benefit
cost.
Expected benefit payments under the international defined benefit pension plans for the five years
subsequent to 2008 and in the aggregate for the five years thereafter are as follows: 2009: $1,259; 2010:
$1,326; 2011: $1,390; 2012: $1,557; 2013: $1,684 and 2014 through 2018: $13,869.
Postemployment Benefits
Hasbro has several plans covering certain groups of employees, which may provide benefits to such
employees following their period of active employment but prior to their retirement. These plans include
certain severance plans which provide benefits to employees involuntarily terminated and certain plans which
continue the Company’s health and life insurance contributions for employees who have left Hasbro’s employ
under terms of its long-term disability plan.
70
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)