Sunbeam 2011 Annual Report Download - page 65

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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2011 (Dollars in millions, except per share data and unless otherwise indicated)
Amounts recognized in the Company’s consolidated balance sheets at December 31, 2011 and 2010 consist of:
Summary of under-funded or non-funded pension benefit plans with projected benefit obligation in excess of plan assets at
December 31, 2011 and 2010:
Summary of pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2011 and 2010:
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 is 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 insurance contracts 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 2011 and 2010 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.
Pension Benefits Postretirement
Benefits
(In millions) 2011 2010 2011 2010
Other assets $ 2.4 $ 1.5 $ — $ —
Accrued benefit cost (132.8) (122.0) (7.8) (15.3)
Net amount recognized $ (130.4) $ (120.5) $ (7.8) $ (15.3)
Pension Benefits
(In millions) 2011 2010
Projected benefit obligation $ 383.5 $ 350.8
Fair value of plan assets 250.7 228.8
Pension Benefits
(In millions) 2011 2010
Accumulated benefit obligation $ 379.3 $ 343.8
Fair value of plan assets 250.7 224.6