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These excerpts taken from the HBI 10-K filed Feb 19, 2008. Gain
on Curtailment of Postretirement Benefits
In December 2006, we notified retirees and employees that we
would phase out premium subsidies for early retiree medical
coverage and move to an access-only plan for early retirees by
the end of 2007. We also decided to eliminate the medical plan
for retirees ages 65 and older as a result of coverage
available under the expansion of Medicare with Part D drug
coverage and eliminate future postretirement life benefits. The
gain on curtailment represents the unrecognized amounts
associated with prior plan amendments that were being amortized
into income over the remaining service period of the
participants prior to the December 2006 amendments. We recorded
postretirement benefit income related to this plan in 2007,
primarily representing the amortization of negative prior
service costs, which was partially offset by service costs,
interest costs on the accumulated benefit obligation and
actuarial gains and losses accumulated in the plan. We recorded
a final gain on curtailment of plan benefits in December 2007.
Table of Contents
Gain on Curtailment of Postretirement Benefits
In December 2006, we notified retirees and employees that we would phase out premium subsidies for early retiree medical coverage and move to an access-only plan for early retirees by the end of 2007. We also decided to eliminate the medical plan for retirees ages 65 and older as a result of coverage available under the expansion of Medicare with Part D drug coverage and eliminate future postretirement life benefits. The gain on curtailment represents the unrecognized amounts associated with prior plan amendments that were being amortized into income over the remaining service period of the participants prior to the December 2006 amendments. We recorded postretirement benefit income related to this plan in 2007, primarily representing the amortization of negative prior service costs, which was partially offset by service costs, interest costs on the accumulated benefit obligation and actuarial gains and losses accumulated in the plan. We recorded a final gain on curtailment of plan benefits in December 2007.
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