Hypercom Corporation Annual Report - CiteSeer

enefit obligations as of December 31, 2009 ranged from 5.0% to 5.5%. The Company periodically reviews the plan asset mix,
benchmark discount rate, expected rate of return and other actuarial assumptions and adjusts them as deemed necessary.
The Company recognizes the funded status of a defined benefit postretirement plan as an asset or liability in its balance sheet
and the changes in that funded status is recognized in other comprehensive income in the year in which the changes occur. The funded
status of a defined benefit pension plan is measured as the difference between plan assets at fair value and the plan’s projected benefit
obligation.
The following table shows a reconciliation of changes in the plan’s benefit obligation and plan assets for the year ended
December 31, 2009 and 2008 and a reconciliation of the funded status with amounts recognized in the consolidated balance sheets as
of December 31, 2009 and 2008 (dollars in thousands):
2009 2008
Change in Benefit Obligation
Benefit obligation at beginning of the year $ 3,853 $ 4,961
Service cost 173 254
Interest cost 222 274
Deferred amounts
(43 )
(633 )
Benefits paid
(23 )
(490 )
Foreign currency translation adjustment 135
(513 )
Benefit obligation at end of year $ 4,317 $ 3,853
Change in Plan Assets
Fair value of plan assets at beginning of the year $ 2,738 $ 3,395
Actual return on plan assets 158 111
Deferred amounts 189 20
Foreign currency translation adjustment 94
(356 )
Benefits paid
(177 )
(432 )
Fair value of plan assets at end of year $ 3,002 $ 2,738
Funded Status $ 1,315 $ 1,115
Net balance sheet liability $ 1,315 $ 1,115
Non current asset 2,756 2,481
Noncurrent liabilities 4,071 3,596
Amounts Recognized in the Consolidated Balance Sheets $ 1,315 $ 1,115
Amounts Recognized in Accumulated Other Comprehensive Loss
Comprehensive loss 205 274
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