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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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Table of Contents

appropriate universe of high-quality corporate bonds. The results of the yield curve analysis are used to select the discount rate that matches the payment stream of the benefits in each plan. Each rate is rounded to the nearest quarter of a percent.

 

Assumed healthcare cost trend rates for the Retiree Healthcare Benefit Plan as of December 31, 2009, 2008 and 2007 are as follows:

 

     Retiree Healthcare  
     December 31,
2009
    December 31,
2008
    December 31,
2007
 

Assumed healthcare trend rate for next year:

      

Attributed to less than age 65

   7.00   8.00   9.00

Attributed to age 65 or greater

   8.00   9.00   10.00

Ultimate trend rate

   5.00   5.00   5.00

Year in which ultimate trend rate is reached:

      

Attributed to less than age 65

   2015      2011      2011   

Attributed to age 65 or greater

   2016      2012      2012   

 

Assumed healthcare trend rates could have a significant effect on the amounts reported for healthcare plans. A one percentage point change in the assumed healthcare trend rates for the year ended December 31, 2009 would have the following effect:

 

     1 percentage
point
increase
   1 percentage
point
decrease
 

Effect on total service and interest cost components

   $ 4    $ (6

Effect on post-retirement benefit obligations

   $ 69    $ (96

 

The table below outlines the benefits expected to be paid to participants from the plans in each of the following years, which reflect expected future service, as appropriate. The majority of the payments will be paid from plan assets and not company assets.

 

Expected Benefit Payments

   U.S.
Defined
Benefit
   U.S.
Retiree
Healthcare
   U.S.
Medicare Part D
Reimbursement
    Non-U.S.
Defined
Benefit

For the year ending December 31,

          

2010

   $ 3,481    $ 313    $ (3   $ 841

2011

     4,188      416      (4     829

2012

     4,879      557      (5     945

2013

     5,858      725      (7     1,072

2014

     6,394      895      (9     1,148

2015 – 2019

     41,079      5,890      (114     9,708

 

Plan Assets

 

The Company holds assets for its defined benefit plans in the U.S., Japan and the Netherlands. Information about the plan assets and the Company’s investment policies and strategies for each jurisdiction is detailed below.

 

U.S. Plan Assets

 

The target asset allocation of the U.S. defined benefit plan is 57% equity and 43% fixed income. To arrive at the targeted asset allocation, the Company and its investment adviser collaboratively reviewed market opportunities using historic and statistical data, as well as the actuarial valuation report for the plan, to ensure that the levels of acceptable return and risk are well-defined and monitored. Currently, the Company’s management believes that there are no significant concentrations of risk associated with the plan assets.

 

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