Energizer 2004 Annual Report Download - page 36

Download and view the complete annual report

Please find page 36 of the 2004 Energizer annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 47

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47

ENR 2004 Annual Report
34
The Company also sponsors or participates in a number of other non-
U.S. pension arrangements, including various retirement and termination
benefit plans, some of which are required by local law or coordinated
with government-sponsored plans, which are not significant in the aggre-
gate and therefore are not included in the information presented below.
The Company 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, as total costs of the program change. In 2001, the plan
was amended such that there will not be an increase in the Company’s
contribution rate beyond the level of subsidy to be provided for in
calendar 2002. Due to this plan amendment, cost trend rates no longer
materially impact the plan.
The following tables present the benefit obligation, plan assets and
funded status of the plans:
ENERGI ZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCI AL STATEMENTS Continued
(Dollars in millions, except per share data)
Pension Postretirement
SEPTEMBER 30, 2004 2003 2004 2003
CHANGE IN PROJECTED BENEFIT OBLI GATION
Benefit obligation at beginning of year $ 566.1 $ 447.7 $ 51.4 $ 49.7
Service cost 24.0 20.5 0.2 0.2
Interest cost 32.0 29.0 3.1 3.1
Plan participants’ contributions 1.0 0.7 ––
Actuarial (gain)/loss 34.5 7.5 1.3 0.5
Benefit obligation assumed in SWS acquisition –70.1 ––
Benefits paid (27.6) (22.9) (2.3) (2.8)
Special termination benefits 15.2 – – –
Foreign currency exchange rate changes 8.0 13.5 (0.2) 0.7
Projected benefit obligation at end of year $ 653.2 $ 566.1 $ 53.5 $ 51.4
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year $ 557.3 $ 463.0 $ 1.9 $ 2.3
Actual return on plan assets 65.1 78.0 – (0.4)
Company contributions 9.0 2.9 2.1 2.7
Plan participants’ contributions 1.0 0.8 4.0 3.2
Assets acquired in SWS acquisition – 27.2 – –
Benefits paid (27.6) (22.9) (6.3) (5.9)
Foreign currency exchange rate changes 3.8 8.3 0.2 –
Fair value of plan assets at end of year $ 608.6 $ 557.3 $ 1.9 $ 1.9
PLAN ASSETS BY CATEGORY AT END OF YEAR
Equity securities 66% 64% 0% 0%
Debt securities 32% 34% 0% 0%
Other 2% 2% 100% 100%
100% 100% 100% 100%
FUNDED STATUS
Funded status of the plan $ (44.6) $ (8.8) $ (51.6) $ (49.5)
Unrecognized net loss/(gain) 79.6 62.2 (0.4) (1.7)
Unrecognized prior service cost 7.0 4.0 (35.4) (37.9)
Unrecognized net transition asset 1.6 1.7 – –
Prepaid (accrued) benefit cost $ 43.6 $ 59.1 $ (87.4) $ (89.1)
AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET
Prepaid benefit cost $ 109.5 $ 117.3 $ – $ –
Accrued benefit liability (89.0) (72.3) (87.4) (89.1)
Intangible asset 0.1 0.2 – –
Accumulated other comprehensive income 23.0 13.9 – –
Net amount recognized $ 43.6 $ 59.1 $ (87.4) $ (89.1)