Sunbeam 2013 Annual Report Download - page 68
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Please find page 68 of the 2013 Sunbeam annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.64 Jarden Corporation Annual Report 2013
Amounts recognized in the Company’s consolidated balance sheets at December31, 2013 and 2012 consist of:
Pension Benets PostretirementBenets
(In millions) 2013 20122013 2012
Other assets $4.5 $2.3 $ — $ —
Accrued benet cost (84.2)(132.3)(6.4)(7.6)
Net amount recognized $(79.7)$(130.0)$(6.4)$(7.6)
Summary of under-funded or non-funded pension benet plans with projected benet obligation in excess of plan assets at
December31, 2013 and 2012:
Pension Benets
(In millions) 2013 2012
Projected benet obligation $368.6 $408.6
Fair value of plan assets 284.4 276.3
Summary of pension plans with accumulated benet obligations in excess of plan assets at December31, 2013 and 2012:
Pension Benets
(In millions) 2013 2012
Accumulated benet obligation $362.9 $400.0
Fair value of plan assets 284.1 272.8
The Company employs a total return investment approach for its pension plans whereby a mix of equities and xed 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 nancial condition. The domestic investment portfolios contain a diversied blend of equity and
xed-income investments. The domestic equity investments are diversied across geography and market capitalization through
investments in U.S. large-capitalization stocks, U.S. small-capitalization stocks and international securities. The domestic xed 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 classication 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 dened benet 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 prole. 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 dened benet pension plan’s investments. The
Company’s target asset allocation for 2013 and 2012 is as follows: equities—approximately 25%-40%; bonds—approximately 20%-40%;
and cash alternatives investments and other—approximately 25%-45%. Actual asset allocations may vary from the targeted allocations
for various reasons, including market conditions and the timing of transactions.
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2013 (Dollars in millions, except per share data and unless otherwise indicated)