JAH » Topics » 13. Employee Benefit Plans

These excerpts taken from the JAH 10-K filed Feb 23, 2009.

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, 2008, substantially all the domestic pension and postretirement plans are frozen to new entrants and to future benefit accruals.

For 2008, pursuant to the measurement date provisions of SFAS 158, the pension and postretirement obligations are measured as of December 31, 2008. For 2007, the pension and postretirement obligations are measured as of September 30 and December 31. For 2006, the pension and postretirement obligations are measured as of September 30, 2006. The pension and postretirement obligations for 2007 measured at December 31 are the obligations resulting from the acquisitions of K2 and Pure Fishing. For the plans measured as of December 31, the aggregate benefit obligation and plan assets at December 31, 2007 are $89.1 and $74.8, respectively. 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.

 

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15. Employee Benefit Plans

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">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, 2008, substantially all the domestic pension and postretirement plans are frozen to new entrants and to future benefit accruals.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">For 2008, pursuant to the measurement date provisions of SFAS 158, the pension and postretirement obligations are measured as of December 31, 2008.
For 2007, the pension and postretirement obligations are measured as of September 30 and December 31. For 2006, the pension and postretirement obligations are measured as of September 30, 2006. The pension and postretirement
obligations for 2007 measured at December 31 are the obligations resulting from the acquisitions of K2 and Pure Fishing. For the plans measured as of December 31, the aggregate benefit obligation and plan assets at December 31, 2007
are $89.1 and $74.8, respectively. 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.

 


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These excerpts taken from the JAH 10-K filed Feb 25, 2008.

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, 2007, substantially all the domestic pension and postretirement plans are frozen to new entrants and to future benefit accruals.

The pension and postretirement obligations are measured as of September 30 and December 31 for 2007. The pension and postretirement obligations are measured as of September 30 for 2006 and 2005. The pension and postretirement obligations for 2007 measured at December 31 are the obligations resulting from the acquisitions of K2 and Pure Fishing. For the plans measured as of December 31, the aggregate benefit obligation and plan assets at December 31, 2007 are $89.1 and $74.8, respectively. 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 following table discloses the effect on the Consolidated Balance Sheet of adopting the provisions of SFAS 158 at December 31, 2006.

 

     Before Application of
SFAS 158
    Adjustments     After Application of
SFAS 158
 

Accrued pension cost

   $ (65.6 )   $ (1.0 )   $ (66.6 )

Accrued postretirement benefit cost

     (27.7 )     8.1       (19.6 )

Minimum pension liability

     (6.5 )     6.5       —    

Deferred income taxes, net

     (105.2 )     (5.9 )     (111.1 )

Accumulated other comprehensive income

     (18.8 )     (7.7 )     (26.5 )

 

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15. Employee Benefit Plans

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">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, 2007, substantially all the domestic pension and postretirement plans are frozen to new entrants and to future benefit accruals.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">The pension and postretirement obligations are measured as of September 30 and December 31 for 2007. The pension and postretirement obligations
are measured as of September 30 for 2006 and 2005. The pension and postretirement obligations for 2007 measured at December 31 are the obligations resulting from the acquisitions of K2 and Pure Fishing. For the plans measured as of
December 31, the aggregate benefit obligation and plan assets at December 31, 2007 are $89.1 and $74.8, respectively. 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 following table discloses the effect on the
Consolidated Balance Sheet of adopting the provisions of SFAS 158 at December 31, 2006.

 



































































































   Before Application of
SFAS 158
  Adjustments  After Application of
SFAS 158
 

Accrued pension cost

  $(65.6) $(1.0) $(66.6)

Accrued postretirement benefit cost

   (27.7)  8.1   (19.6)

Minimum pension liability

   (6.5)  6.5   —   

Deferred income taxes, net

   (105.2)  (5.9)  (111.1)

Accumulated other comprehensive income

   (18.8)  (7.7)  (26.5)

 


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This excerpt taken from the JAH 10-K filed Feb 20, 2007.

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. In January 2005, in connection with the AHI Acquisition, the Company acquired plan assets and assumed the benefit obligations of the pension and postretirement medical and life insurance plans of AHI. Except for one, all of the AHI pension plans are frozen to new entrants and to benefit accruals. Also, only one postretirement medical plan is open to a limited number of new retirees. The other AHI postretirement medical plans are frozen to new entrants.

The pension and postretirement obligations are measured as of September 30, for all years presented and 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 following table discloses the effect on the Consolidated Balance Sheet of adopting the provisions of SFAS 158 at December 31, 2006.

 

    

Before Application of

SFAS 158

    Adjustments    

After Application of

SFAS 158

 

Accrued pension cost

   $ (65.6 )   $ (1.0 )   $ (66.6 )

Accrued postretirement benefit cost

     (27.7 )     8.1       (19.6 )

Minimum pension liability

     (6.5 )     6.5       —    

Deferred income taxes, net

     (105.2 )     (5.9 )     (111.1 )

Accumulated other comprehensive income

     (18.8 )     (7.7 )     (26.5 )

 

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This excerpt taken from the JAH 10-Q filed May 9, 2006.

13. Employee Benefit Plans

Components of Net Periodic Costs for Domestic Plans

Net periodic pension costs and net periodic postretirement costs for domestic plans include the following components (in millions):

 

     Pension Benefits     Postretirement
Benefits
     Three month period
ended
    Three month period
ended
     March 31,
2006
    March 31,
2005
    March 31,
2006
   March 31,
2005

Service cost

   $ 0.2     $ 0.3     $ 0.2    $ 0.1

Interest cost

     3.5       2.4       0.4      0.3

Expected return on plan assets

     (3.1 )     (2.2 )     —        —  

Recognized net actuarial loss

     0.1       0.1       —        —  
                             

Net periodic cost

   $ 0.7     $ 0.6     $ 0.6    $ 0.4
                             

Components of Net Periodic Pension Costs for Foreign Plans

Net periodic pension costs for foreign plans include the following components (in millions):

 

     Three month period ended
     March 31,
2006
    March 31,
2005

Service cost

   $ 0.2     $ 0.1

Interest cost

     0.1       0.1

Expected return on plan assets

     (0.1 )     —  
              

Net periodic pension cost

   $ 0.2     $ 0.2
              
This excerpt taken from the JAH 10-K filed Mar 9, 2006.

11. 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. In January 2005, in connection with the AHI Acquisition, the Company acquired plan assets and assumed the benefit obligations of the pension and postretirement medical and life insurance plans of AHI. Except for one, all of the AHI pension plans are frozen to new entrants and to benefit accruals. Also, only one postretirement medical plan is open to a limited number of new retirees. The other AHI postretirement medical plans are frozen to new entrants.

In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (“Medicare Act”) was signed into law. The Medicare Act introduced a prescription drug benefit under Medicare Part D and a federal subsidy to sponsors of retirement health plans that provide a benefit that is at least actuarially equivalent to Medicare Part D. In May 2004, the FASB issued Staff Position No. FAS 106-2, “Accounting and Disclosure Requirements Related to the Medicare Prescription Drug, Improvement and Modernization Act of 2003” (“FSP 106-2”). FSP 106-2, which provides guidance on accounting for the effects of the Medicare Act, requires companies eligible for Federal subsidies under the Medicare Act to recognize the expected benefit in their determination of the accumulated benefit obligation for their postretirement plans.

 

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The Company sponsors several different retiree medical plans for certain current and former employees of some of its business units. Some of these plans cover prescription drug benefits for Medicare-eligible participants. Based on final regulations and guidance issued in January 2005, the Company does not expect the subsidy receipts to materially impact the Company’s consolidated financial position, results of operations or cash flows.

The assumed increase in future medical costs was adjusted to reflect assumed trend in the next few years. The new medical trend assumptions for the postretirement medical plans for 2006 are as follows: 8.64%-10.57%.

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