Harbinger Group Inc.
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SEC Filings

10-K
HRG GROUP, INC. filed this Form 10-K on 11/23/2016
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The following table contains the components of net periodic benefit cost for the years ended September 30, 2016, 2015 and 2014:
 
 
U.S Plans
 
Non U.S. Plans
(in millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost
 
$
0.2

 
$
0.4

 
$
0.2

 
$
2.6

 
$
2.6

 
$
3.0

Interest cost
 
3.0

 
2.9

 
3.0

 
5.7

 
6.2

 
7.4

Expected return on assets
 
(4.3
)
 
(4.5
)
 
(4.1
)
 
(4.2
)
 
(5.2
)
 
(5.8
)
Curtailment
 

 

 

 
0.1

 
0.7

 
(0.1
)
Recognized net actuarial loss
 
0.6

 
0.2

 
0.1

 
0.8

 
1.3

 
1.4

Net periodic benefit cost
 
$
(0.5
)
 
$
(1.0
)
 
$
(0.8
)
 
$
5.0

 
$
5.6

 
$
5.9

Weighted average assumptions
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
4.25%
 
4.15%
 
4.65%
 
1.75 - 13.81%
 
2.00 - 13.50%
 
2.25 - 12.50%
Expected return on plan assets
 
7.25%
 
7.50%
 
7.75%
 
1.75 - 4.53%
 
2.00 - 5.26%
 
4.00 - 5.76%
Rate of compensation increase
 
N/A
 
N/A
 
N/A
 
2.25 - 5.50%
 
2.25 - 5.50%
 
2.25 - 5.50%
The discount rate is used to calculate the projected benefit obligation. The discount rate used is based on the rate of return on government bonds as well as current market conditions of the respective countries where the plans are established. The expected return on plan assets is based on the Company’s expectation of the long-term average rate of return of the capital market in which the plans invest. The expected return reflects the target asset allocations and considers the historical returns earned for each asset category.
The Company has established formal investment policies for the assets associated with these plans. Policy objectives include maximizing long-term return at acceptable risk levels, diversifying among asset classes, if appropriate, and among investment managers, as well as establishing relevant risk parameters within each asset class. Specific asset class targets are based on the results of periodic asset/liability studies. The investment policies permit variances from the targets within certain parameters. The plan assets currently do not include holdings of the Company’s common stock.
Below is a summary allocation of all pension plan assets as of September 30, 2016 and 2015:
 
 
US Plans
 
Non U.S. Plans
Asset Type
 
2016
 
2015
 
2016
 
2015
Equity Securities
 
62
%
 
63
%
 
0
%
 
6
%
Fixed Income Securities
 
35
%
 
35
%
 
23
%
 
25
%
Other
 
3
%
 
2
%
 
77
%
 
69
%
Total
 
100
%
 
100
%
 
100
%
 
100
%

S-39

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