Hypercom Corporation Annual Report - CiteSeer

In determining the asset allocation, the investment manager recognizes the Company’s desire for funding and expense stability,
the long-term nature of the pension obligation and current and projected cash needs for retiree benefit payments. The pension fund is
actively managed within the target asset allocation ranges.
The plan invests in a variety of asset classes to diversify its assets. The plan’s assets are currently invested in a variety of funds
representing most standard equity and debt security classes. While no significant changes in the asset allocation are expected during
the upcoming year, the Company may make changes at any time.
As of December 31, 2009, the Company’s pension plan assets did not hold any direct investment in the Company’s common
stock.
The following estimated future benefit payments, including future benefit accrual, which reflect expected future service, as
appropriate, are expected to be paid (dollars in thousands):
2010 $ 238
2011 $ 138
2012 $ 126
2013 $ 205
2014 $ 268
2015 - beyond $ 1,365
Funding requirements for subsequent years are uncertain and will significantly depend on whether the plan’s actuary changes
any assumptions used to calculate plan funding levels, the actual return on plan assets, changes in the employee groups covered by the
plan, and any legislative or regulatory changes affecting plan funding requirements. While the current market conditions could have an
adverse effect on the plan investments, any additional required contribution is not expected to have a material effect on the
consolidated financial statements. The Company expects to fund additional contributions from its cash balances and operating cash
flows. For tax planning, financial planning, cash flow management or cost reduction purposes, the Company may increase, accelerate,
decrease or delay contributions to the plan to the extent permitted by law.
19. Profit Sharing Plan
The Company has a 401(k) profit sharing plan (the “401(k) Plan”), which commenced in fiscal 1998, covering all eligible fulltime
employees of the Company. Contributions to the 401(k) Plan are made by the participants to their individual accounts through
payroll withholding. Additionally, the 401(k) Plan provides for the Company to make profit sharing contributions in amounts at the
discretion of management. The employer contribution was $0.1 million for the years ended December 31, 2009, 2008 and 2007.
20. Commitments and Contingencies
Lease Commitments
The Company leases office and warehouse space, equipment and vehicles under non-cancelable operating leases. The office
space leases provide for annual rent payments, plus a share of taxes, insurance and maintenance on the properties.
Future minimum payments under operating leases are as follows (dollars in thousands):
Years Ending December 31,
2010 3,986
2011 2,569
2012 1,889
2013 1,435
2014 1,365
Thereafter 4,884
$ 16,128
Rental expense from continuing operations amounted to $5.6 million, $6.7 million and $4.2 million for the years ended
December 31, 2009, 2008, and 2007, respectively.
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