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64 Jarden Corporation Annual Report 2014
Amounts recognized in the Company’s consolidated balance sheets at December31, 2014 and 2013 consist of:
Pension Benets PostretirementBenets
(In millions) 2014 20132014 2013
Other assets $5.4 $4.5 $ — $ —
Accrued benet cost (84.6)(84.2)(6.8)(6.4)
Net amount recognized $(79.2)$(79.7)$(6.8)$(6.4)
Summary of under-funded or non-funded pension benet plans with projected benet obligation in excess of plan assets at
December31, 2014 and 2013:
Pension Benets
(In millions) 2014 2013
Projected benet obligation $369.0 $368.6
Fair value of plan assets 284.5 284.4
Summary of pension plans with accumulated benet obligations in excess of plan assets at December31, 2014 and 2013:
Pension Benets
(In millions) 2014 2013
Accumulated benet obligation $359.5 $362.9
Fair value of plan assets 281.2 284.1
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 diversied blend of equity and
xed-income investments. The domestic equity investments are diversied 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 classication 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 dened benet 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 prole. 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 dened benet pension plan’s investments. The
Company’s target asset allocation for 2014 and 2013 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 2014 (Dollars in millions, except per share data and unless otherwise indicated)