SMG » Topics » Associate Benefits

These excerpts taken from the SMG 10-K filed Dec 3, 2008.
Associate Benefits
 
We sponsor various post-employment benefit plans. These include pension plans, both defined contribution plans and defined benefit plans, and other post-employment benefit (“OPEB”) plans, consisting primarily of health care for retirees. For accounting purposes, the defined benefit pension and OPEB plans are dependent on a variety of assumptions to estimate the projected and accumulated benefit obligations determined by actuarial valuations. These assumptions include the following: discount rate; expected salary increases; certain employee-related factors, such as turnover, retirement age and mortality; expected return on plan assets; and health care cost trend rates. These and other assumptions affect the annual expense recognized for these plans.
 
Assumptions are reviewed annually for appropriateness and updated as necessary. We base the discount rate assumption on investment yields available at year-end on corporate long-term bonds rated AA or the equivalent. The salary growth assumption reflects our long-term actual experience, the near-term outlook and assumed inflation. The expected return on plan assets assumption reflects asset allocation, investment strategy and the views of investment managers regarding the market. Retirement and mortality rates are based primarily on actual and expected plan experience. The effects of actual results differing from our assumptions are accumulated and amortized over future periods.
 
Changes in the discount rate and investment returns can have a significant effect on the funded status of our pension plans and shareholders’ equity. We cannot predict these discount rates or investment returns with certainty and, therefore, cannot determine whether adjustments to our shareholders’ equity for minimum pension liability in subsequent years will be significant. Subsequent to September 30, 2008, investment markets have continued to decline. This has put further downward pressure on the investments of the Company’s pension plans. Management continues to monitor this situation and the potential impact on our future pension plan funding requirements and related expenses. However, we cannot predict future investment returns, and therefore cannot determine whether future pension plan funding requirements could materially and adversely affect our financial condition, results of operations and cash flows.
 
Associate
Benefits



 



We sponsor various post-employment benefit plans. These include
pension plans, both defined contribution plans and defined
benefit plans, and other post-employment benefit
(“OPEB”) plans, consisting primarily of health care
for retirees. For accounting purposes, the defined benefit
pension and OPEB plans are dependent on a variety of assumptions
to estimate the projected and accumulated benefit obligations
determined by actuarial valuations. These assumptions include
the following: discount rate; expected salary increases; certain
employee-related factors, such as turnover, retirement age and
mortality; expected return on plan assets; and health care cost
trend rates. These and other assumptions affect the annual
expense recognized for these plans.


 



Assumptions are reviewed annually for appropriateness and
updated as necessary. We base the discount rate assumption on
investment yields available at year-end on corporate long-term
bonds rated AA or the equivalent. The salary growth assumption
reflects our long-term actual experience, the near-term outlook
and assumed inflation. The expected return on plan assets
assumption reflects asset allocation, investment strategy and
the views of investment managers regarding the market.
Retirement and mortality rates are based primarily on actual and
expected plan experience. The effects of actual results
differing from our assumptions are accumulated and amortized
over future periods.


 



Changes in the discount rate and investment returns can have a
significant effect on the funded status of our pension plans and
shareholders’ equity. We cannot predict these discount
rates or investment returns with certainty and, therefore,
cannot determine whether adjustments to our shareholders’
equity for minimum pension liability in subsequent years will be
significant. Subsequent to September 30, 2008, investment
markets have continued to decline. This has put further downward
pressure on the investments of the Company’s pension plans.
Management continues to monitor this situation and the potential
impact on our future pension plan funding requirements and
related expenses. However, we cannot predict future investment
returns, and therefore cannot determine whether future pension
plan funding requirements could materially and adversely affect
our financial condition, results of operations and cash flows.


 




These excerpts taken from the SMG 10-K filed Nov 25, 2008.
Associate Benefits
 
We sponsor various post-employment benefit plans. These include pension plans, both defined contribution plans and defined benefit plans, and other post-employment benefit (“OPEB”) plans, consisting primarily of health care for retirees. For accounting purposes, the defined benefit pension and OPEB plans are dependent on a variety of assumptions to estimate the projected and accumulated benefit obligations determined by actuarial valuations. These assumptions include the following: discount rate; expected salary increases; certain employee-related factors, such as turnover, retirement age and mortality; expected return on plan assets; and health care cost trend rates. These and other assumptions affect the annual expense recognized for these plans.
 
Assumptions are reviewed annually for appropriateness and updated as necessary. We base the discount rate assumption on investment yields available at year-end on corporate long-term bonds rated AA or the equivalent. The salary growth assumption reflects our long-term actual experience, the near-term outlook and assumed inflation. The expected return on plan assets assumption reflects asset allocation, investment strategy and the views of investment managers regarding the market. Retirement and mortality rates are based primarily on actual and expected plan experience. The effects of actual results differing from our assumptions are accumulated and amortized over future periods.
 
Changes in the discount rate and investment returns can have a significant effect on the funded status of our pension plans and shareholders’ equity. We cannot predict these discount rates or investment returns with certainty and, therefore, cannot determine whether adjustments to our shareholders’ equity for minimum pension liability in subsequent years will be significant. Subsequent to September 30, 2008, investment markets have continued to decline. This has put further downward pressure on the investments of the Company’s pension plans. Management continues to monitor this situation and the potential impact on our future pension plan funding requirements and related expenses. However, we cannot predict future investment returns, and therefore cannot determine whether future pension plan funding requirements could materially and adversely affect our financial condition, results of operations and cash flows.
 
Associate
Benefits



 



We sponsor various post-employment benefit plans. These include
pension plans, both defined contribution plans and defined
benefit plans, and other post-employment benefit
(“OPEB”) plans, consisting primarily of health care
for retirees. For accounting purposes, the defined benefit
pension and OPEB plans are dependent on a variety of assumptions
to estimate the projected and accumulated benefit obligations
determined by actuarial valuations. These assumptions include
the following: discount rate; expected salary increases; certain
employee-related factors, such as turnover, retirement age and
mortality; expected return on plan assets; and health care cost
trend rates. These and other assumptions affect the annual
expense recognized for these plans.


 



Assumptions are reviewed annually for appropriateness and
updated as necessary. We base the discount rate assumption on
investment yields available at year-end on corporate long-term
bonds rated AA or the equivalent. The salary growth assumption
reflects our long-term actual experience, the near-term outlook
and assumed inflation. The expected return on plan assets
assumption reflects asset allocation, investment strategy and
the views of investment managers regarding the market.
Retirement and mortality rates are based primarily on actual and
expected plan experience. The effects of actual results
differing from our assumptions are accumulated and amortized
over future periods.


 



Changes in the discount rate and investment returns can have a
significant effect on the funded status of our pension plans and
shareholders’ equity. We cannot predict these discount
rates or investment returns with certainty and, therefore,
cannot determine whether adjustments to our shareholders’
equity for minimum pension liability in subsequent years will be
significant. Subsequent to September 30, 2008, investment
markets have continued to decline. This has put further downward
pressure on the investments of the Company’s pension plans.
Management continues to monitor this situation and the potential
impact on our future pension plan funding requirements and
related expenses. However, we cannot predict future investment
returns, and therefore cannot determine whether future pension
plan funding requirements could materially and adversely affect
our financial condition, results of operations and cash flows.


 




This excerpt taken from the SMG 10-K filed Nov 29, 2007.
Associate Benefits
 
We sponsor various post-employment benefit plans. These include pension plans, both defined contribution plans and defined benefit plans, and other post-employment benefit (OPEB) plans, consisting primarily of health care for retirees. For accounting purposes, the defined benefit pension and OPEB plans are dependent on a variety of assumptions to estimate the projected and accumulated benefit obligations determined by actuarial valuations. These assumptions include the following: discount rate; expected salary increases; certain employee-related factors, such as turnover, retirement age and mortality; expected return on plan assets; and health care cost trend rates. These and other assumptions affect the annual expense recognized for these plans.
 
Assumptions are reviewed annually for appropriateness and updated as necessary. We base the discount rate assumption on investment yields available at year-end on corporate long-term bonds rated AA or the equivalent. The salary growth assumption reflects our long-term actual experience, the near-term outlook and assumed inflation. The expected return on plan assets assumption reflects asset allocation, investment strategy and the views of investment managers regarding the market. Retirement and mortality rates are based primarily on actual and expected plan experience. The effects of actual results differing from our assumptions are accumulated and amortized over future periods.
 
Changes in the discount rate and investment returns can have a significant effect on the funded status of our pension plans and shareholders’ equity. We cannot predict these discount rates or investment returns with certainty and, therefore, cannot determine whether adjustments to our shareholders’ equity for minimum pension liability in subsequent years will be significant.
 
37


 

This excerpt taken from the SMG 10-K filed Dec 14, 2006.
Associate Benefits
 
We sponsor various post-employment benefit plans. These include pension plans, both defined contribution plans and defined benefit plans, and other post-employment benefit (OPEB) plans, consisting primarily of health care for retirees. For accounting purposes, the defined benefit pension and OPEB plans are dependent on a variety of assumptions to estimate the projected and accumulated benefit obligations determined by actuarial valuations. These assumptions include the following: discount rate; expected salary increases; certain employee-related factors, such as turnover, retirement age and mortality; expected return on plan assets; and health care cost trend rates. These and other assumptions affect the annual expense recognized for these plans.
 
Assumptions are reviewed annually for appropriateness and updated as necessary. We base the discount rate assumption on investment yields available at year-end on corporate long-term bonds rated AA or the equivalent. The salary growth assumption reflects our long-term actual experience, the near-term outlook and assumed inflation. The expected return on plan assets assumption reflects asset allocation, investment strategy and the views of investment managers regarding the market. Retirement and mortality rates are based primarily on actual and expected plan experience. The effects of actual results differing from our assumptions are accumulated and amortized over future periods.
 
Changes in the discount rate and investment returns can have a significant effect on the funded status of our pension plans and shareholders’ equity. We cannot predict these discount rates or investment returns with certainty and, therefore, cannot determine whether adjustments to our shareholders’ equity for minimum pension liability in subsequent years will be significant.
 
We also award stock options to directors and certain associates. Beginning in fiscal 2003, we began expensing prospective grants of employee stock-based compensation awards in accordance with Statement of Financial Accounting Standards No. 123, “Accounting for Stock-Based Compensation”. The fair value of future awards is being expensed ratably over the vesting period, which has historically been three years, except for grants to directors, which have shorter vesting periods. Stock options granted prior to fiscal 2003 are accounted for under the intrinsic value recognition and measurement provisions of Accounting Principles Board (APB) Opinion No. 25, “Accounting for Stock Issued to Employees,” and related interpretations. As those stock options were issued with exercise prices equal to the market value of the underlying common shares on the grant date, no compensation expense was recognized.
 
ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 
As part of our ongoing business, we are exposed to certain market risks, including fluctuations in interest rates, foreign currency exchange rates and commodity prices. Financial derivative and other instruments are used to manage these risks. These instruments are not used for speculative purposes.
 
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