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Sensata Technologies Holding N.V.'s SEC Filings

S-1/A
SENSATA TECHNOLOGIES HOLDING PLC filed this Form S-1/A on 03/09/2010
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participate in a defined contribution plan, where 50% employer-matching contributions are provided for up to 2% of the employee’s annual eligible earnings. Beginning in 2009, the Company’s matching of employees’ contributions under the above defined contribution plans will be discretionary and based on the Company’s assessment of its financial performance.

 

The aggregate expense related to the defined contribution plans for U.S. employees was $2,302, $4,143 and $3,282 for the years ended December 31, 2009, 2008 and 2007, respectively.

 

Retiree Healthcare Benefit Plan

 

The Company offers access to group medical coverage during retirement to some of its U.S. employees. The Company makes contributions toward the cost of those retiree medical benefits for certain retirees. The contribution rates are based upon varying factors, the most important of which are an employee’s date of hire, date of retirement, years of service and eligibility for Medicare benefits. The balance of the cost is borne by the participants in the plan. Employees hired after January 1, 2001, are responsible for the full cost of their medical benefits during retirement. Prescription drug benefits provided by the plan have been determined to be at least actuarially equivalent to Medicare Part D. For the year ended December 31, 2009, the Company did not, and does not expect to, receive any amount of Federal subsidy. For the year ended December 31, 2009, the Company contributed $236 toward the cost of retiree medical benefits. Obligations to the U.S. Retiree Healthcare Benefit Plan for employees that retired prior to the 2006 Acquisition have been assumed by TI.

 

Retiree health benefits were partially funded through a Voluntary Employee Benefit Association (“VEBA”) trust. During the three months ended June 30, 2008, the Company amended the terms of the Sensata Technologies Welfare Benefit Trust agreement to allow for the assets held by the trust to be used for medical and dental costs of both active and retired employees. The Company received cash totaling $4,630 from the trust to pay for active employee medical and dental costs. As a result of the withdrawal of cash from the trust, during the year ended December 31, 2008, the Company increased the retiree healthcare benefit liability by $4,630.

 

Non-U.S. Benefit Plans

 

Retirement coverage for non-U.S. employees is provided through separate defined benefit and defined contribution plans. Retirement benefits are generally based on an employee’s years of service and compensation. Funding requirements are determined on an individual country and plan basis and subject to local country practices and market circumstances. For the years ended December 31, 2009, 2008 and 2007, the Company contributed $7,292, $5,115 and $4,159, respectively, to non-U.S. defined benefit plans. The Company expects to contribute approximately $1,781 to non-U.S. defined benefit plans during 2010.

 

Impact on Financial Statements

 

Net periodic benefit cost of the defined benefit and retiree healthcare benefit plans for the years ended December 31, 2009, 2008 and 2007 is as follows:

 

    For the year ended December 31,  
    2009     2008     2007  
    U.S. Plans   Non-U.S.
Plans
    U.S. Plans     Non-U.S.
Plans
    U.S. Plans     Non-U.S.
Plans
 
    Defined
Benefit
    Retiree
Healthcare
  Defined
Benefit
    Defined
Benefit
    Retiree
Healthcare
    Defined
Benefit
    Defined
Benefit
    Retiree
Healthcare
    Defined
Benefit
 

Service cost

  $ 1,976      $ 244   $ 2,860      $ 2,449      $ 269      $ 3,111      $ 2,265      $ 326      $ 2,730   

Interest cost

    2,969        566     1,020        3,173        536        1,038        2,836        509        641   

Expected return on plan assets

    (2,408     —       (786     (2,515     (80     (913     (2,380     (156     (1,136

Amortization of net loss

    237        28     555        212        —          10        109        —          —     

Amortization of prior service cost

    —          —       768        —          —          —          —          —          —     

Loss on settlement

    1,283        —       2,228        591        —          772        —          —          —     

Loss on curtailment

    —          —       563        —          —          2,604        —          —          —     

Loss on special termination benefits

    —          —       —          1,300        —          —          —          —          —     
                                                                     

Net periodic benefit cost

  $ 4,057      $ 838   $ 7,208      $ 5,210      $ 725      $ 6,622      $ 2,830      $ 679      $ 2,235   
                                                                     

 

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