Sunbeam 2007 Annual Report Download - page 107

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Funded Status
The following provides a reconciliation of the benefit obligation, plan assets and the funded status of the
pension and postretirement plans as of December 31, 2007 and 2006 (in millions):
Pension Benefits
Postretirement
Benefits
2007 2006 2007 2006
Domestic Foreign Total Domestic Foreign Total
Change in benefit obligation:
Benefit obligation at beginning of year . . . $254.3 $ 14.7 $269.0 $267.8 $14.2 $282.0 $ 19.9 $ 29.3
Acquisition ........................ 67.9 21.4 89.3 — — — 2.0 —
Service cost ........................ 0.4 0.8 1.2 0.7 0.7 1.4 0.4 0.5
Interest cost ........................ 15.9 1.2 17.1 13.9 0.6 14.5 1.2 1.4
Curtailments and settlements .......... (2.4) (0.2) (2.6) (3.9) (0.2) (4.1) — 0.1
Amendments ....................... 0.2 — 0.2 — — — (2.0) (5.1)
Actuarial loss (gain) ................. (8.9) (1.2) (10.1) (6.4) (0.1) (6.5) (2.2) (5.3)
Participant contributions .............. — — — — — — 0.7 0.7
Benefits paid ....................... (19.8) (1.2) (21.0) (17.8) (1.1) (18.9) (1.5) (1.7)
Foreign currency translation and other . . . — 1.9 1.9 — 0.6 0.6 0.2 —
Benefit obligation at end of year(1) ..... 307.6 37.4 345.0 254.3 14.7 269.0 18.7 19.9
Change in plan assets:
Fair value of plan assets at beginning
of year .......................... 194.0 6.6 200.6 194.4 6.2 200.6 — —
Acquisition ........................ 59.6 13.6 73.2 — — — — —
Actual return on plan assets ............ 19.8 1.2 21.0 13.9 0.5 14.4 — —
Company contributions ............... 8.5 1.8 10.3 5.3 0.9 6.2 0.8 1.0
Curtailments and settlements .......... (2.4) (0.2) (2.6) (1.8) — (1.8) — —
Participant contributions .............. — — — — — — 0.7 0.7
Benefits paid ....................... (19.8) (1.2) (21.0) (17.8) (1.1) (18.9) (1.5) (1.7)
Foreign currency translation and other . . . — 1.0 1.0 — 0.1 0.1 — —
Fair value of plan assets at end of year . . . 259.7 22.8 282.5 194.0 6.6 200.6 — —
Reconciliation of funded status:
Funded status ....................... (47.9) (14.6) (62.5) (60.3) (8.1) (68.4) (18.7) (19.9)
Fourth quarter activity:
Curtailments and settlements ...... (0.3) — (0.3) — — — — —
Contributions ................... 1.5 0.2 1.7 1.4 0.4 1.8 0.1 0.3
Net (liability) recognized in the
consolidated balance sheet .......... $(46.7) $(14.4) $ (61.1) $ (58.9) $ (7.7) $ (66.6) $(18.6) $ (19.6)
Assumptions
Weighted average assumption used to calculate
benefit obligation:
Discount rate ....................... 6.21% 5.37% 6.12% 5.82% 4.71% 5.76% 6.25% 5.85%
Rate of compensation increase ......... — 4.07% 4.07% — 3.32% 3.32% 3.00% —
Healthcare cost trend rate:
Current:
Pre-Age 65 ..................... — — — — — — 8.00% 8.75%
Post-Age 65 .................... — — — — — — 9.01% 10.07%
Ultimate ................... — — — — — — 5.00% 5.00%
(1) The accumulated benefit obligation for all defined benefit pension plans was $342.7 and $267.2 at
December 31, 2007 and 2006, respectively.
95