Energizer 2000 Annual Report Download - page 38

ENERGIZER 2000 ANNUAL REPORT
36
A summary of nonqualified ENR stock options outstanding is as
follows (shares in millions).
2000
Weighted-Average
Shares Exercise Price
Outstanding on October 1 – $ –
Granted 7.37 17.41
Exercised ––
Cancelled ––
Outstanding on September 30 7.37 17.41
Exercisable on September 30 – $ –
(9) PENSION PLANS AND OTHER POSTRETIREMENT
BENEFITS
Energizer has several defined benefit pension plans covering
substantially all of its employees in the United States and certain
employees in other countries. The plans provide retirement benefits
based on years of service and earnings.
Certain other foreign pension arrangements, that include various
retirement and termination benefit plans, some of which are required
by local law or coordinated with government-sponsored plans, are
not significant in the aggregate.
Energizer currently provides other postretirement benefits,
consisting of health care and life insurance benefits for certain
groups of retired employees. Retiree contributions for health care
benefits are adjusted periodically, and it is expected that such
adjustments will continue into the future.
Prior to the spin-off, Energizer employees participated in Ralston’s
defined benefit plans. In addition, certain groups of retirees and
management employees were eligible for certain postretirement
benefits provided by Ralston. See further discussion of pre-spin
pension and postretirement benefits below.
The following pension and other postretirement benefit information
is presented in accordance with SFAS 132, “Employers’ Disclosures
about Pensions and Other Postretirement Benefits.”
The following tables present the benefit obligation and funded status
of the plans for the period subsequent to the spin-off.
September 30, 2000
Pension Postretirement
Change in Benefit Obligation:
Benefit obligation at April 1, 2000 $ 345.6 $ 77.6
Service cost 7.8 0.1
Interest cost 11.8 2.8
Plan participants’ contributions 0.2 –
Actuarial (gain)/ loss (1.3) 4.2
Benefits paid (10.0) (1.0)
Foreign currency exchange
rate changes (7.0) –
Amendments 4.5 –
Benefit obligation at end of year $ 351.6 $ 83.7
Change in Plan Assets:
Fair value of plan assets at
April 1, 2000 $ 558.9 $ 1.7
Actual return on plan assets 16.6 0.2
Company contributions 1.2 1.0
Plan participants’ contributions 0.2 1.0
Benefits paid (10.0) (2.0)
Foreign currency exchange
rate changes (9.2) –
Fair value of plan assets at
end of year $ 557.7 $ 1.9
Funded Status:
Funded status of the plan $ 206.1 $ (81.8)
Unrecognized net loss/(gain) (113.0) (2.3)
Unrecognized prior service cost 0.4 (3.6)
Unrecognized net transition asset 1.1
Prepaid/(accrued) benefit cost $ 94.6 $ (87.7)
Amounts Recognized in the Consolidated Balance Sheet:
Prepaid benefit cost $ 102.0 $ –
Accrued benefit liability (9.4) (87.7)
Intangible asset 0.2 –
Accumulated other
comprehensive income 1.8 –
Net amount recognized $ 94.6 $ (87.7)
For pension plans with accumulated benefit obligations in
excess of plan assets, the projected benefit obligation was
$9.4 at September 30, 2000. There are no plan assets for
these nonqualified plans as of September 30, 2000.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (continued) (Dollars in millions except per share data)