SAE Annual Report 2009 - 39

after January 1, 2008 will not be eligible to participate in the plan. The following table sets forth the funded status and obligations of the plan at December 31: 2009 Projected benefit obligationSAE INTERNATIONAL ($46,701,041) Fair value of pension plan assets 33,980,623 Notes to the Financial Statements (Continued) Funded status at end of year ($12,720,418) Note 7 - funded status of the plan was measured as of December 31. The Employee Benefit Plans (Continued) Components are the weighted-average assumptions used to determine in the obligations The followingof pension adjustment recognized in nonoperating activities benefit statements of activities 31: at Decemberconsisted of the following: 2009 Net gain rate Discount (loss) Amortization of in loss Rate of increase netcompensation levels Effects of plan curtailment Pension expense in excess of 8½% of salaries Other required disclosures consisted of the following: $ 4,684,749 6% 1,053,762 4% 1,669,154 ( 1,937,183) $ 5,470,482 2009 2008 ($15,343,297) 6% 57,679 4% ($15,285,618) 2008 2008 ($45,452,084) 25,352,040 ($20,100,044) Discount rate Expected long-term rate of return on assets 2009 6% 8% 2008 6% 8%

SAE International

SAE’s expected rate of return SAE INTERNATIONAL on plan assets is determined by the plan assets’ historical long-term investment performance, current asset allocation and estimates of future long-term Notes to the Financial Statements (Continued) returns by asset class.

Notes to the Financial Statements

The accumulated benefit obligation for the plan was $40,184,145 at December 31, 2009 Note$37,227,648 atBenefit Plans (Continued) and 7 - Employee December 31, 2008. Components of pension adjustment recognized in as follows: The plan’s asset allocations by asset category are nonoperating activities in the statements of activities consisted of the following: SAE INTERNATIONAL 2008 2009 2009 2008 Notes to the Financial Statements (Continued) Equities 64% 59% ($15,343,297) Net gain (loss) $ 4,684,749 Bonds 28% 32% Amortization of net loss 1,053,762 57,679 Other 8% 9% Note 7 - Employee Benefit Plans (Continued) Effects of plan curtailment 1,669,154 Pension expense in excess of 8½% of salaries ( 1,937,183) At December 31, 2009 and 2008, the plan’s investment assets are held at various financial institutions and brokers. The Finance Committee has established a formal investment policy to ($15,285,618) $ 5,470,482 govern the nature and timing of investments. SAE’s investment strategy for its plans is to allocate approximately 70% of contributions to equity investments and 30% to fixed investments. SAE considers pension expense of 8½% of 24 Page salaries a normal expenditure and includes this amount in operating activities. Pension expense in excess of this percentage is included in The following table sets forth the fair value of the plan assets at December 31, nonoperating activities. In 2008, pension expense did not exceed 8½% of salaries. 2009: Cash and equivalents The following are the weighted-average assumptions used$to2,598,888 net periodic pension determine Common stocks 6,838,183 cost for the years ended December 31: Preferred stocks 340,288 Mutual funds 252,780 2009 2008 Exchange traded funds 19,033,452 Corporate bonds and notes 3,600,314 Discount rate 6% 6% International bonds 122,925 Expected long-term rate of return on assets 8% 8% 1,193,793 U.S. Government securities SAE’s expected rate of return on plan assets is determined by the plan assets’ historical $33,980,623 long-term investment performance, current asset allocation and estimates of future long-term returns by asset class. Equity securities, mutual funds and exchange traded funds are traded in active markets and valued based on their quoted obligation for independent pricing vendors. Corporate bonds and The accumulated benefit fair value by the plan was $40,184,145 at December 31, 2009 notes, international December government and $37,227,648 atbonds, and 31, 2008. securities are valued using quotes from independent pricing vendors based on recent trading activity and other relevant information, including market interest rate curves, allocations by asset spreads, are as follows: prepayment rates of similar The plan’s asset referenced credit category and estimated instruments. There is no minimum contribution required in 2010. 2009 2008

amount in operating activities. Pension expense in excess of this percentage is included in Notes to the Financial Statements (Continued) of salaries. nonoperating activities. In 2008, pension expense did not exceed 1,372,892 $ 1,193,056 Benefits paid $ 8½% The following are the weighted-average assumptions used to determine net $ periodic- pension Contributions $ 3,700,000 Note for -the years ended December 31: Employee Benefit Plans (Continued) cost 7 Components of pension adjustment recognized in nonoperating activities in the 2008 statements 2009 of activities consisted of the following: Discount rate Expected long-term rate of return on assets Page 23 6% 2009 8% 6% 2008 8%

SAE INTERNATIONAL SAE Net periodic pension costs of 8½% of salaries a normal expenditure and1,643,589 considers pension expense $ includes this $ 3,728,039

Net gain (loss) $ 4,684,749 SAE’s expected rate of return on plan assets is determined by the plan ($15,343,297) assets’ historical long-term Amortizationperformance, current asset allocation and1,053,762 of future 57,679 investment of net loss estimates long-term Effects of plan curtailment 1,669,154 returns by asset class. Pension expense in excess of 8½% of salaries ( 1,937,183) The accumulated benefit obligation for the plan was $40,184,145 at December 31, 2009 ($15,285,618) $ 5,470,482 and $37,227,648 at December 31, 2008. SAE plan’s asset allocations by asset category are as a normal expenditure and includes this The considers pension expense of 8½% of salaries follows: amount in operating activities. Pension expense in excess of this percentage is included in nonoperating activities. In 2008, pension expense did not exceed 8½% of salaries. 2009 2008 The following are the weighted-average assumptions used to determine net periodic pension Equities 64% 59% cost for the years ended December 31: Bonds 28% 32% Other 8% 9% 2008 2009 Discount rate Expected long-term rate of return on assets 6% 8% 6% 8%

Equities 64% 59% The following estimated future benefit payments, which reflect expected future 32% service, as Bonds 28% appropriate, are expected to be paid in the years indicated: Other 8% 9% Year Ending December 31 2010 2011 2012 2013 2014 2015 - 2019 Amount $ 1,640,000 $ 1,730,000 $ 1,840,000 $ 1,950,000 $ 2,130,000 $13,280,000

SAE’s expected rate of return on plan assets is determined by the plan assets’ historical long-term investment performance, current Page 24 asset allocation and estimates of future long-term returns by asset class. The accumulated benefit obligation for the plan was $40,184,145 at December 31, 2009 and $37,227,648 at December 31, 2008. The plan’s asset allocations by asset category are as follows: 2009 Equities 64% 2008 59%

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2009 Annual Report

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SAE Annual Report 2009

Table of Contents for the Digital Edition of SAE Annual Report 2009
