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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2009
(Dollars in millions, except per share data and unless otherwise indicated)
15. Employee Benefit Plans
The Company maintains defined benefit pension plans for certain of its employees and provides certain postretirement medical and
life insurance benefits for a portion of its employees. At December 31, 2009, substantially all the domestic pension and postretirement plans
are frozen to new entrants and to future benefit accruals. Benefit obligations are calculated using generally accepted methods. Actuarial
gains and losses are amortized using the corridor method over the average remaining service life of its active employees. The pension and
postretirement benefit obligations are measured as of December 31 for 2009 and 2008.
Net Periodic Expense
The components of net periodic pension and postretirement benefit expense for 2009, 2008 and 2007 are as follows:
Pension Benefits
2009 2008 2007
(In millions) Domestic Foreign Total Domestic Foreign Total Domestic Foreign Total
Service cost $ 0.2 $ 0.9 $ 1.1 $ 0.2 $ 1.0 $ 1.2 $ 0.4 $ 0.8 $ 1.2
Interest cost 18.4 1.8 20.2 18.3 1.9 20.2 15.9 1.2 17.1
Expected return on plan assets (12.5) (0.9) (13.4) (18.5) (1.2) (19.7) (14.7) (0.8) (15.5)
Amortization:
Prior service cost — — — — — — 0.1 — 0.1
Net actuarial loss 4.8 — 4.8 — — — 0.2 — 0.2
Net periodic cost 10.9 1.8 12.7 — 1.7 1.7 1.9 1.2 3.1
Curtailments and settlements 0.5 0.1 0.6 0.3 (0.1) 0.2 0.9 — 0.9
Total expense $11.4 $ 1.9 $13.3 $ 0.3 $ 1.6 $ 1.9 $ 2.8 $ 1.2 $ 4.0
Assumptions
Weighted average assumption
used to calculate net
periodic cost:
Discount rate 6.19% 5.57% 6.13% 6.21% 5.37% 6.12% 5.88% 4.95% 5.80%
Expected return on plan assets 8.18% 5.19% 7.94% 8.14% 5.72% 7.94% 8.11% 5.94% 8.00%
Rate of compensation increase — 2.95% 4.07% — 4.07% 4.07% — 3.80% 3.80%
Postretirement Benefits
(In millions) 2009 2008 2007
Service cost $ 0.1 $ 0.2 $ 0.4
Interest cost 0.5 1.1 1.2
Amortization:
Prior service benefit (0.8) (0.8) (0.3)
Net actuarial (gain)/loss (0.1) (0.5) (0.4)
Net periodic cost (credit) (0.3) — 0.9
Curtailments and settlements — (16.2) —
Total expense (credit) $ (0.3) $ (16.2) $ 0.9
Assumptions
Weighted average assumption used to calculate net periodic cost:
Discount rate 6.25% 6.25% 5.85%
Rate of compensation increase — 3.0% 3.0%
The amount of AOCI expected to be recognized in net periodic benefit cost for the year ending December 31, 2010 is as follow:
Pension Benefits
(In millions) Domestic Foreign Total Postretirement
Prior service cost $ — $ — $ — $ 0.8
Net actuarial loss (gain) (3.4) — (3.4) 0.1
$ (3.4) $ — $ (3.4) $ 0.9
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