|
|
 | | | |
- close
- close
- close
- close
This excerpt taken from the HBI 10-Q filed May 14, 2007. (8) Defined
Benefit Pension Plans
Prior to the spin off from Sara Lee on September 5, 2006,
employees who met certain eligibility requirements participated
in defined benefit pension plans sponsored by Sara Lee. The
annual cost of the Sara Lee defined benefit plans was allocated
from Sara Lee to all of the participating businesses based upon
a specific actuarial computation which was followed
consistently. In addition to participation in the Sara Lee
sponsored plans, the Company sponsors two noncontributory
defined benefit plans, the Playtex Apparel, Inc. Pension Plan
(the “Playtex Plan”) and the National Textiles LLC
Pension Plan (the “National Textiles Plan”), for
certain qualifying individuals.
Total assets for the Hanesbrands Inc. Pension and Retirement
Plan remain within the master trust maintained by Sara Lee. A
final transfer of assets from Sara Lee’s master trust to
the master trust maintained by the Company will occur in fiscal
2007 once the allocation of assets and liabilities has been
completed in accordance with governmental regulations. The fair
value of plan assets included in the annual valuations
represents a best estimate based upon a percentage allocation of
total assets of the Sara Lee’s master trust and will be
adjusted once the final transfer is made.
In connection with the spin off on September 5, 2006, the
Company assumed Sara Lee’s obligations for all pension
plans that related to the Company’s current and former
employees. The benefits for these plans were frozen on
January 1, 2006. The obligations and costs related to these
plans, in addition to those obligations and costs related to the
Playtex Plan and the National Textiles Plan, are included in the
Company’s Condensed Consolidated Financial Statements as of
March 31, 2007.
The pension expense (income) incurred by the Company for these
defined benefit plans is as follows:
Table of Contents
HANESBRANDS
Notes to Condensed Consolidated Financial Statements — (Continued) (dollars and shares in thousands, except per share data) (unaudited)
For the first quarter ended March 31, 2007, the components
of the Company’s noncontributory defined benefit plans net
periodic benefit cost were as follows:
During the first quarter ended March 31, 2007, the Company
made a discretionary contribution of $41,900, which, when
combined with the payment made in December 2006, satisfies the
2007 minimum funding requirement for the pension plans.
This excerpt taken from the HBI 8-K filed Nov 29, 2006. Defined
Benefit Pension Plans
For a discussion of our net periodic benefit cost, plan
obligations, plan assets, and how we measure the amount of these
costs, see Note 17, titled “Employee Benefit
Plans,” to our Combined and Consolidated Financial
Statements.
The following assumptions were used by Sara Lee to calculate the
pension costs and obligations of the plans in which we
participated prior to the spin off. We are in the process of
assessing whether and to what extent we will use these same
assumptions going forward.
Sara Lee’s policies regarding the establishment of pension
assumptions and allocating the cost of participation in its
company wide plans during the periods presented were as follows:
Although Sara Lee historically included salary increase
assumptions, as noted above, estimated salary increases are not
included in calculating our pension costs because future
accruals under our pension plans are frozen so that none of our
pension plans recognize future salary increases.
We accumulate and amortize results that differ from these
assumptions over future periods, which generally affect the
future net periodic benefit cost.
In connection with the spin off, we assumed Sara Lee’s
obligations under the Sara Lee Corporation Consolidated Pension
and Retirement Plan and the Sara Lee Corporation Supplemental
Executive Retirement Plan that related to our current and former
employees. The amount of the net liability actually assumed was
evaluated in a manner specified by the Employee Retirement
Income Security Act of 1974, as amended, or “ERISA,”
and will be finalized and certified by plan actuaries several
months after the completion of the spin off.
This excerpt taken from the HBI 10-Q filed Nov 13, 2006. (8) Defined
Benefit Pension Plans
Prior to the spin off from Sara Lee on September 5, 2006,
employees who met certain eligibility requirements participated
in defined benefit pension plans sponsored by Sara Lee. These
defined benefit pension plans included employees from a number
of domestic Sara Lee business units. All obligations pursuant to
these plans have historically been obligations of Sara Lee and
as such, were not included on the Company’s historical
Condensed Combined and Consolidated Balance Sheets, prior to
September 5, 2006. The
Table of Contents
HANESBRANDS
Notes to
Condensed Combined and Consolidated Financial
Statements — (Continued)
(unaudited)
(dollars and shares in thousands, except per share data)
annual cost of the Sara Lee defined benefit plans was allocated
to all of the participating businesses based upon a specific
actuarial computation which was followed consistently. In
addition to participation in the Sara Lee sponsored plans, the
Company sponsors two noncontributory defined benefit plans, the
Playtex Apparel, Inc. Pension Plan (the “Playtex
Plan”) and the National Textiles LLC Pension Plan (the
“National Textiles Plan”), for certain qualifying
individuals.
In connection with the spin off on September 5, 2006, the
Company assumed Sara Lee’s obligations under the Sara Lee
Corporation Consolidated Pension and Retirement Plan, the Sara
Lee Supplemental Executive Retirement Plan, the Sara Lee Canada
Pension Plans and certain other plans that related to the
Company’s current and former employees. The obligations and
costs related to all of these plans, in addition to those
obligations and costs related to the Playtex Plan and the
National Textiles Plan, are included in the Company’s
Condensed Combined and Consolidated Financial Statements as of
September 30, 2006.
The pension expense incurred by the Company for these defined
benefit plans is as follows:
At September 30, 2006, the Company reported a liability of
$223,453 in the “Other noncurrent liabilities” line of
the Combined and Consolidated Balance Sheet which included the
additional minimum liability of $53,813, net of taxes of
$34,261. The amount of assets and liabilities assumed from Sara
Lee are based on allocations that are subject to final
adjustment.
Measurement
Date and Assumptions
Historically, a March 31 measurement date was used to value
plan assets and obligations for the Company’s defined
benefit pension plans. In connection with the spin off on
September 5, 2006, a measurement date of September 5,
2006 was used to value plan assets and obligations reported for
the Hanesbrands Inc. Pension and Retirement Plan, the
Hanesbrands Inc. Supplemental Employee Retirement Plan and two
Canadian defined benefit pension plans. The weighted average
actuarial assumptions used in measuring the net periodic benefit
cost and plan obligations for these plans at the measurement
date were as follows: discount rate for net periodic benefit
cost of 5.89%; a long-term rate of return on plan assets of
7.59%; a rate of compensation increase of 3.90%; and a discount
rate for plan obligations of 5.89%.
This excerpt taken from the HBI 10-K filed Sep 28, 2006. Defined
Benefit Pension Plans
For a discussion of our net periodic benefit cost, plan
obligations, plan assets, and how we measure the amount of these
costs, see Note 17, titled “Employee Benefit
Plans,” to our Combined and Consolidated Financial
Statements.
The following assumptions were used by Sara Lee to calculate the
pension costs and obligations of the plans in which we
participated prior to the spin off. We are in the process of
assessing whether and to what extent we will use these same
assumptions going forward.
Sara Lee’s policies regarding the establishment of pension
assumptions and allocating the cost of participation in its
company wide plans during the periods presented were as follows:
Although Sara Lee historically included salary increase
assumptions, as noted above, estimated salary increases are not
included in calculating our pension costs because future
accruals under our pension plans are frozen so that none of our
pension plans recognize future salary increases.
We accumulate and amortize results that differ from these
assumptions over future periods, which generally affect the
future net periodic benefit cost.
Table of Contents
In connection with the spin off, we assumed Sara Lee’s
obligations under the Sara Lee Corporation Consolidated Pension
and Retirement Plan and the Sara Lee Corporation Supplemental
Executive Retirement Plan that related to our current and former
employees. The amount of the net liability actually assumed was
evaluated in a manner specified by the Employee Retirement
Income Security Act of 1974, as amended, or “ERISA,”
and will be finalized and certified by plan actuaries several
months after the completion of the spin off.
This excerpt taken from the HBI 8-K filed Sep 5, 2006. Defined Benefit Pension Plans For a discussion of our net periodic benefit cost, plan obligations, plan assets, and how we measure the amount of these costs, see Note 17, titled “Employee Benefit Plans,” to our Combined and Consolidated Financial Statements. The following assumptions were used by Sara Lee to calculate the pension costs and obligations of the plans in which we participate.
67
Table of ContentsSara Lee’s policies regarding the establishment of pension assumptions and allocating the cost of participation in its company wide plans are as follows:
Although Sara Lee historically included salary increase assumptions, as noted above, estimated salary increases are not included in calculating our pension costs because future accruals under our pension plans are frozen so that none of our pension plans recognize future salary increases. We accumulate and amortize results that differ from these assumptions over future periods, which generally affect the future net periodic benefit cost. Prior to the spin off, we will assume Sara Lee’s obligations under the Sara Lee Corporation Consolidated Pension and Retirement Plan and the Sara Lee Corporation Supplemental Executive Retirement Plan that relate to our current and former employees. The amount of the net liability actually assumed will be evaluated in a manner specified by the Employee Retirement Income Security Act of 1974, as amended, or “ERISA,” and will be finalized and certified by plan actuaries several months after the contribution is completed. | EXCERPTS ON THIS PAGE:
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
