Sunbeam 2003 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2003 Sunbeam annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 66

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66

Jarden Corporation
Notes to Consolidated Financial Statements (continued)
Amounts recognized in the Company’s Consolidated Balance Sheet consist of:
Pension Benefits
Postretirement
Benefits
2003 2002 2003 2002
(in thousands)
Accrued benefit cost ...................................... $(6,093) $(4,151) $(3,513) $(1,978)
Intangible assets ......................................... 1,096 768 — —
Accumulated other comprehensive income .................. 2,894 2,713 — —
Net amount recognized ................................... $(2,103) $ (670) $(3,513) $(1,978)
The accumulated benefit obligation for the Company’s defined benefit pension plans were
approximately $21.2 million and $13.9 million as of December 31, 2003 and 2002, respectively.
Pension Benefits
Postretirement
Benefits
2003 2002 2003 2002
Weighted-average assumptions as of December 31:
Discount rate ..................................................... 6.50% 7.25% 6.50% 6.75%
Expected return on plan assets ...................................... 9.00% 9.00% — —
The return on plan assets reflects the weighted-average of the long-term rates of return for the
broad categories of investments held in the Company’s defined benefit pension plans. The expected
long-term rate of return is adjusted when there are fundamental changes in expected returns on the
Company’s defined benefit pension plan’s investments.
The Company’s investment strategy for its defined benefit pension plans is to maximize the long-
term rate of return on plans assets within an acceptable level of risk in order to minimize the cost of
providing pension benefits. The Company’s target asset range for 2004 as a percentage of market value
is as follows: equities — 50%-70% (and within equities: foreign stocks — 0%-20% and small capitalized
common stocks — 0%-40%); bonds — 30%-50% and cash and money funds — 0%-10%. This target
range was the same in 2003. As of the Company’s 2003 and 2002 measurement dates, the percentage of
fair value of total assets by asset category was as follows:
2003 2002
Asset category:
Equity securities and funds ..................................... 58.4% 45.9%
Debt securities and funds ...................................... 33.9 17.1
Government securities ......................................... 4.8 34.0
Cash and money market funds .................................. 2.9 3.0
Total ........................................................ 100.0% 100.0%
The Company’s pension contributions for 2004 are estimated to be approximately $0.6 million,
reflecting quarterly contributions to certain plans as required by the IRS Code Section 412 and certain
voluntary contributions.
Increases in health care costs would not materially impact the benefit obligation or the annual
service and interest costs recognized as benefits under the medical plan consist of a defined dollar
monthly subsidy toward the retiree’s purchase of medical insurance for the majority of employees
covered.
page 54