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Jarden Corporation Annual Report 2012 61
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2012 (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, 2011, 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 actuarial 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 2012 and 2011.
Net Periodic Expense
The components of net periodic pension and postretirement benefit expense for 2012, 2011 and 2010 are as follows:
The amount of AOCI expected to be recognized in net periodic benefit cost for the year ending December 31, 2013 is as follows:
Pension Benefits
2012 2011 2010
(In millions) Domestic Foreign Total Domestic Foreign Total Domestic Foreign Total
Service cost $ 0.2 $ 1.9 $ 2.1 $ 0.2 $ 1.9 $ 2.1 $ 0.2 $ 1.6 $ 1.8
Interest cost 14.5 2.6 17.1 15.9 2.8 18.7 17.6 2.5 20.1
Expected return on plan assets (16.3) (1.4) (17.7) (15.6) (1.4) (17.0) (13.6) (1.2) (14.8)
Amortization:
Net actuarial loss 7.1 0.2 7.3 3.2 — 3.2 3.3 — 3.3
Net periodic cost 5.5 3.3 8.8 3.7 3.3 7.0 7.5 2.9 10.4
Curtailments and settlements — — — 1.6 — 1.6 1.9 (0.1) 1.8
Total expense $ 5.5 $ 3.3 $ 8.8 $ 5.3 $ 3.3 $ 8.6 $ 9.4 $ 2.8 $ 12.2
Assumptions
Weighted average assumption used to calculate net periodic cost:
Discount rate 4.50% 4.30% 4.47% 5.25% 4.78% 5.18% 5.79% 5.12% 5.69%
Expected return on plan assets 8.00% 4.53% 7.60% 8.00% 4.83% 7.63% 8.21% 5.16% 7.87%
Rate of compensation increase — 2.51% 2.51% — 2.98% 2.98% — 2.98% 2.98%
Pension Benefits
(In millions) Domestic Foreign Total Postretirement
Prior service cost (credit) $ — $ (0.1) $ (0.1) $ 0.4
Net actuarial loss (gain) (7.4) (0.4) (7.8) 0.1
$ (7.4) $ (0.5) $ (7.9) $ 0.5
Postretirement Benefits
(In millions) 2012 2011 2010
Service cost $ 0.1 $ 0.3 $ 0.3
Interest cost 0.3 0.7 0.7
Amortization:
Prior service benefit (0.4) (0.8) (0.8)
Net actuarial gain (0.1) (0.1) —
Net periodic cost (credit) (0.1) 0.1 0.2
Curtailments and settlements — (7.3) —
Total expense (credit) $ (0.1) $ (7.2) $ 0.2
Assumptions
Weighted average assumption used to calculate net periodic cost:
Discount rate 4.40% 5.50% 5.96%