Energizer 2003 Annual Report Download - page 37

ENR 2003 ANNUAL REPORT Page 35
11. 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. In 2003, Energizer assumed
defined benefits for certain active SWS employees at the acquisition
date. Such employees were covered by Energizer’s defined benefit plans
following the acquisition.
Energizer also sponsors or participates in a number of other non-U.S.
pension arrangements, including various retirement and termination ben-
efit plans, some of which are required by local law or coordinated with
government-sponsored plans, which are not significant in the aggregate
and therefore are not included in the information presented below.
Energizer currently provides other postretirement benefits, consisting
of healthcare and life insurance benefits for certain groups of retired
employees. Retiree contributions for healthcare benefits are adjusted
periodically, as total costs of the program change. In 2001, the plan was
amended such that there will not be an increase in Energizer’s contribu-
tion rate beyond the level of subsidy to be provided for in calendar 2002.
The following tables present the benefit obligation and funded status of
the plans:
Pension Postretirement
SEPTEMBER 30, 2003 2002 2003 2002
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year $ 447.7 $ 411.3 $ 49.7 $ 54.4
Service cost 20.5 16.7 0.2 0.1
Interest cost 29.0 26.9 3.1 3.6
Plan participants’ contributions 0.7 0.6 ––
Actuarial (gain)/loss 7.5 20.1 0.5 (5.7)
Benefit obligation assumed in SWS acquisition 70.1 – ––
Benefits paid (22.9) (33.0) (2.8) (2.7)
Cumulative translation adjustment 13.5 5.1 0.7 -
Benefit obligation at end of year $ 566.1 $ 447.7 $ 51.4 $ 49.7
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year $ 463.0 $ 495.4 $ 2.3 $ 2.3
Actual return on plan assets 78.0 (7.6) (0.4) 0.3
Company contributions 2.9 2.5 2.7 2.7
Plan participants’ contributions 0.8 0.6 3.2 2.7
Assets acquired in SWS acquisition 27.2 –– –
Benefits paid (22.9) (33.0) (5.9) (5.7)
Cumulative translation adjustment 8.3 5.1 ––
Fair value of plan assets at end of year $ 557.3 $ 463.0 $ 1.9 $ 2.3
FUNDED STATUS
Funded status of the plan $(8.8) $15.3 $ (49.5) $ (47.4)
Unrecognized net loss/(gain) 62.2 87.1 (1.7) (2.6)
Unrecognized prior service cost 4.0 0.2 (37.9) (40.3)
Unrecognized net transition asset 1.7 1.4 ––
Prepaid (accrued) benefit cost $ 59.1 $ 104.0 $ (89.1) $ (90.3)
AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET
Prepaid benefit cost $ 117.3 $ 119.8 $ – $ –
Accrued benefit liability (72.3) (18.7) (89.1) (90.3)
Intangible asset 0.2 0.2 – –
Accumulated other comprehensive income 13.9 2.7 ––
Net amount recognized $ 59.1 $ 104.0 $ (89.1) $ (90.3)