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ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share and percentage data)
The accumulated benefit obligation for defined benefit pension plans was $1,365.3 and $1,235.3 at September 30, 2012 and
2011, respectively. The following table shows pension plans with an accumulated benefit obligation in excess of plan assets at
the dates indicated.
September 30,
2012 2011
Projected benefit obligation $ 1,270.1 $ 1,158.9
Accumulated benefit obligation $ 1,254.0 $ 1,146.3
Estimated fair value of plan assets $ 810.0 $ 711.3
Pension plan assets in the U.S. plan represent 81% 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: 61%, (b) debt securities, U.S. bonds: 38% and (c) other: 1%.
Actual allocations at September 30, 2012 approximated these targets. The U.S. plan held no shares of ENR stock at September
30, 2012. Investment objectives are similar for non-U.S. pension arrangements, subject to local regulations.
The following table presents pension and postretirement expense:
FOR THE YEARS ENDED SEPTEMBER 30,
Pension Postretirement
2012 2011 2010 2012 2011 2010
Service cost $ 26.7 $ 28.9 $ 32.7 $ 0.5 $ 0.5 $ 0.5
Interest cost 55.8 55.9 50.2 2.3 2.7 2.5
Expected return on plan assets (63.0)(63.3)(62.1)——(0.1)
Amortization of unrecognized prior service cost (5.5)(5.6)(6.1)(2.6)(2.7)(2.7)
Amortization of unrecognized transition asset —0.2 0.2 ———
Recognized net actuarial loss/(gain) 20.3 14.5 7.7 (2.1)(1.3)(1.5)
Curtailment loss recognized —0.9 — ———
Special termination benefits recognized —9.6 — ———
Settlement loss recognized 2.0 5.2 — ———
Net periodic benefit cost $ 36.3 $ 46.3 $ 22.6 $(1.9)$(0.8)$ (1.3)
Amounts expected to be amortized from accumulated other comprehensive loss into net period benefit cost during the year
ending September 30, 2013, are as follows:
Pension Postretirement
Net actuarial (loss)/gain $ (29.7) $ 2.0
Prior service credit $ 5.5 $ 3.5
72