Energizer 2007 Annual Report Download - page 37

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35
Energizer Holdings, Inc. 2007 Annual Report
The Company expects to contribute $14.8 to its pension plans
and $2.5 to its other postretirement benefit plans in 2008. The
Company’s expected future benefit payments are as follows:
September 30, Pension Postretirement
2008 $ 47.9 $ 2.9
2009 42.9 2.8
2010 41.2 2.8
2011 46.9 2.7
2012 49.8 2.7
2013 to 2017 307.1 12.8
The accumulated benefit obligation for defined benefit pension
plans was $727.2 and $694.5 at September 30, 2007 and 2006,
respectively. The information for pension plans with an accumu-
lated benefit obligation in excess of plan assets is as follows:
September 30, 2007 2006
Projected benefit obligation $200.8 $273.1
Accumulated benefit obligation 169.7 228.2
Fair value of plan assets 53.5 112.4
Pension plan assets in the U.S. plan represent 66% of assets in
all of the Company’s defined benefit pension plans. Investment
policy for the U.S. plan includes a mandate to diversify assets and
invest in a variety of asset classes to achieve that goal. The U.S.
plan’s assets are currently invested in several funds representing
most standard equity and debt security classes. The broad target
allocations are: (a) equities, including U.S. and foreign: 64%, (b)
debt securities, including higher-quality and lower-quality U.S.
bonds: 32% and (c) other: 3%. The U.S. plan held no shares of
ENR stock at September 30, 2007. Investment objectives are similar
for non-U.S. pension arrangements, subject to local regulations.
The following table presents pension and postretirement expense:
Pension Postretirement
September 30, 2007 2006 2005 2007 2006 2005
Service cost $ 29.9 $ 26.3 $ 28.5 $0.4 $ 0.3 $ 0.3
Interest cost 41.3 38.4 38.2 2.8 3.3 3.2
Expected return on plan assets (53.2) (49.8) (50.0) (0.1) (0.1) (0.1)
Amortization of unrecognized
prior service cost (1.1) (0.2) (0.1) (2.2) (2.2) (2.5)
Amortization of unrecognized
transition asset 0.4 0.7 0.2 –––
Recognized net actuarial loss 6.9 6.2 4.7 (0.3) 0.1 –
Net periodic benefit cost $ 24.2 $ 21.6 $ 21.5 $ 0.6 $1.4 $0.9
Amounts expected to be amortized from accumulated other comprehensive income into net period benefit cost during the year ending
September 30, 2008, are as follows:
September 30, Pension Postretirement
Net actuarial gain/(loss) (3.9) 2.0
Prior service cost 1.2 2.2
Initial net asset (obligation) (0.2) –