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8-K
SUNEDISON, INC. filed this Form 8-K on 09/09/2013
Entire Document
 


The following is a table of the actuarial assumptions used to determine the benefit obligation:

 

     Pension Plans      Health Care and Other Plans  

As of December 31,

   2012      2011      2012      2011  

Weighted-average assumptions:

           

Discount rate

                 3.14%                     3.65%                     3.37%                     3.95%   

Rate of compensation increase

     —%         3.62%         3.75%         3.75%   

The composition of our Parent’s plans and age of our participants are such that, as of December 31, 2012 and 2011, the medical cost trend rate no longer has a significant effect on the valuation of our Parent’s health care plans.

The U.S. pension plan assets are invested primarily in marketable securities, including common stocks, bonds and interest-bearing deposits. The weighted-average allocation of pension benefit plan assets at year ended December 31 were as follows:

 

            Actual Allocation      Fair Value  

Asset Category (Dollars in millions)

   2012 Target
Allocation
     2012      2011      2012      2011  

Cash

             —%                 —%                 15%       $            —          $         24.8      

Group annuity contract

     —%         32%         —%         53.7            —      

Equity securities

     60%         55%         61%         92.9            105.2      

Fixed income securities

     40%         13%         24%         21.9            41.6      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

     100%         100%         100%       $ 168.5          $ 171.6      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Asset Category (In millions)

   Asset Value as of
December 31, 2012
     Asset Value as of
December 31, 2011
 

Cash and cash equivalents

   $ —        $ 24.8    

Group annuity contract

     53.7          —    

Equity securities:

     

U.S. large cap

     38.5          50.9    

Mid cap

     11.1          11.9    

Small cap

     11.0          11.3    

International

     22.0          21.3    

Emerging markets

     10.3          9.8    

Fixed income:

     

Investment grade bonds

     8.3          15.8    

Corporate bonds

     13.6          25.8    
  

 

 

    

 

 

 

Total

   $                 168.5        $                 171.6    
  

 

 

    

 

 

 

The investment objectives of our Parent’s pension plan assets are as follows:

 

  To achieve a favorable relative return as compared to inflation;

 

  To achieve an above average total rate of return relative to capital markets;

 

  Preservation of capital through a broad diversification among asset classes which react, as nearly as possible, independently to varying economic and market circumstances; and

 

  Long-term growth, with a degree of emphasis on stable growth, rather than short-term capital gains.

Our Parent’s pension cost (income) and pension liabilities are determined using various actuarial assumptions, including the discount rate, rate of salary increase, and expected return on plan assets to estimate our pension cost (income) and obligations. The Parent determines the expected return on plan assets based on the pension plans’ intended long-term asset mix. The expected investment return assumption used for the pension plans reflects

 

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