Fortune Brands Innovations, Inc. · NYSE:FBIN
Fortune Brands Innovations — Fortune Brands Home & Security — Corporate Update (February 2012)
8 slides from Fortune Brands Innovations's corporate update, Feb 1, 2012
Slide 1: Defined Benefit Plan Accounting Change
1Fortune Brands Home & Security, Inc. Defined Benefit Plan Accounting Change February 1, 2012 CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS This document contains certain “forward-looking statements” regarding the rate of return on plan assets and other matters. Statements preceded by,
Slide 2: Defined Benefit Plan Accounting Change
2Defined Benefit Plan Accounting ChangeThe Company’s U.S. subsidiaries maintain a number of defined benefit pension and other post retirement benefit plans (collectively, “the Plans”). This document summarizes key aspects of the Company’s change in accounting for the Plans. Additional disclosures an
Slide 3: Defined Benefit Plan Accounting Change (Continued)
3 Defined Benefit Plan Accounting Change (Continued) This accounting change has no impact on: Cash flow Pension and postretirement liabilities Pension funding requirements Financial covenant compliance in the Company’s lending arrangements Under the new method, the Company will refer to actuarial ga
Slide 4: Financial Reporting Impact
4 Financial Reporting Impact 1)Represents service cost, interest cost and expected rate of return on plan assets associated with the Plans. The discount rate for on-going expense in 2010 and 2011 was approximately 6.0% and 5.7%, respectively. The expected rate of return on plan assets in 2010 and 20
Slide 5: Pension Funding Status
5 Pension Funding Status The change in accounting method has no impact on the funded status of the pension Plans. The Company estimates approximately $20 million of minimum required pension contributions in 2012. The Company also has liabilities of $93.9 million for other postretirement benefit plan
Slide 6: Appendix
6Appendix
Slide 7: Explanation of Changes in Accounting
7 Explanation of Changes in Accounting Cost Component Old Method New Method Service Cost Record present value of future pension benefits earned in the current period No change Interest Cost Record interest on the projected benefit obligation based on rate on a current AA corporate bond yield curve s
Slide 8: Glossary of Terms
8 Glossary of Terms Term Definition Actuarial gains/losses A change in the value of either the projected benefit obligation or the plan assets resulting from experience different from that assumed or from a change in an actuarial assumption. AGL adjustments Under the Company’s new accounting method,
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