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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

To determine the long-term rate of return on plan assets, the Company considered actual historical returns, future expectations for each asset class and the effect of periodic target asset allocation rebalancing. The results are adjusted for the payments of reasonable expense of the plan from plan assets. The Company believes that these assumptions are appropriate based upon the mix of the investments and the long-term nature of the plan’s investments.

 

The following table presents information about the plan’s target asset allocation, as well as the actual allocation, as of December 31, 2009:

 

Asset Class

   Target Allocation     Actual Allocation as of
December 31, 2009
 

U.S. large cap equity

   33   33

U.S. small cap equity

   10   11

International (non-U.S.) equity

   14   14

Fixed income (U.S. investment grade)

   35   34

High-yield fixed income

   4   4

International (non-U.S.) fixed income

   4   4

 

The portfolio is monitored for automatic rebalancing on a monthly basis to a 2% tolerance.

 

For the year ended December 31, 2008, the Company set a target allocation rate of 50% to 60% for equity securities and 40% to 50% for fixed income securities. As of December 31, 2008, the actual allocation of the U.S. defined benefit plan assets was 52% equity and 48% fixed income.

 

The following table presents information about the plan assets measured at fair value as of December 31, 2009, aggregated by the level in the fair value hierarchy within which those measurements fall:

 

Asset Class

   Quoted Prices in
Active Markets
for Identical Assets
(Level 1)
   Significant Other
Observable Inputs
(Level 2)
   Significant
Unobservable
Inputs
(Level 3)
   December 31,
2009

U.S. large cap equity

   $ 9,630    $ —      $ —      $ 9,630

U.S. small cap equity

     3,138      —        —        3,138

International (non-U.S.) equity

     4,132      —        —        4,132
                           

Total equity mutual funds

     16,900      —        —        16,900

Fixed income (U.S. investment grade)

     10,046      —        —        10,046

High-yield fixed income

     1,308      —        —        1,308

International (non-U.S.) fixed income

     1,255      —        —        1,255
                           

Total fixed income mutual funds

     12,609      —        —        12,609
                           

Total

   $ 29,509    $ —      $ —      $ 29,509
                           

 

Investments in mutual funds are based on the publicly-quoted final net asset values on the last business day of the year.

 

Permitted asset classes include U.S. and non-U.S. equity, U.S. and non-U.S. fixed income, cash and cash equivalents. Fixed income includes both investment grade and non-investment grade. Permitted investment vehicles include mutual funds, individual securities, derivatives and long-duration fixed income. While investment in individual securities, derivatives, long-duration fixed income, cash and cash equivalents is permitted, the plan does not hold these types of investments as of December 31, 2009.

 

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