Sunbeam 2009 Annual Report Download - page 70

Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2009 (Dollars in millions, except per share data and unless otherwise indicated)
Amounts recognized in the Company’s consolidated balance sheets consist:
Pension Benefits Postretirement Benefits
(In millions) 2009 2008 2009 2008
Other Assets $ 1.2 $ 0.6 $ — $ —
Accrued benefit cost (128.2) ( 137.3) (8.2) ( 8.4)
Net amount recognized $ (127.0) $ ( 136.7) $ (8.2) $ ( 8.4)
Summary of under-funded or non-funded pension benefit plans with projected benefit obligation in excess of plan assets as of
December 31, 2009 and 2008:
Pension Benefits
(In millions) 2009 2008
Projected benefit obligation $ 342.3 $ 331.8
Fair value of plan assets 214.1 194.4
Summary of pension plans with accumulated benefit obligations in excess of plan assets as of December 31, 2009 and 2008:
Pension Benefits
(In millions) 2009 2008
Accumulated benefit obligation $ 340.4 $ 330.0
Fair value of plan assets 214.1 194.4
The Company employs a total return investment approach for its pension plans whereby a mix of equities and fixed income
investments are used to maximize the long-term return of pension plan assets. The intent of this strategy is to minimize plan expenses by
outperforming plan liabilities over the long run. Risk tolerance is established through careful consideration of plan liabilities, plan funded
status, and the Company’s financial condition. The domestic investment portfolios contain a diversified blend of equity and fixed-income
investments. The domestic equity investments are diversified across geography and market capitalization through investments in U.S. large-
capitalization stocks, U.S. small-capitalization stocks and international securities. The domestic fixed income investments are primarily
comprised of investment-grade and high-yield securities through investments in corporate and government bonds, government agencies
and asset backed securities. The Level 1 and Level 2 investments are primarily based upon quoted market prices and the classification
between Level 1 and Level 2 are based upon the valuation frequency of the investments. The domestic Level 3 investments are primarily
comprised of hedge fund of funds whose assets are primarily valued based upon the net asset value per share and an insurance contract
valued at contract value. The Company maintains numerous foreign defined benefit pension plans. The asset allocations for the foreign
investment may vary by plan and jurisdiction and are primarily based upon the plan structure and plan participant profile. The foreign Level 3
investments are primarily comprised of an insurance contract valued at contract value. Investment risk is measured and monitored on an
ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews.
The expected long-term rate of return for plan assets is based upon many factors including expected asset allocations, historical asset
returns, current and expected future market conditions, risk and active management premiums. 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 target asset allocation for 2009 and 2008 is as follows: equities—45%-60%; bonds—25%-40%; and cash alternatives investments
and other—0%-30%. Actual asset allocations may vary from the targeted allocations for various reasons, including market conditions and the
timing of transactions.
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