Rayovac 2008 Annual Report Download - page 166

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
The Company has established formal investment policies for the assets associated with these plans. Policy objectives include maximizing long-term return
at acceptable risk levels, diversifying among asset classes, if appropriate, and among investment managers, as well as establishing relevant risk parameters within
each asset class. Specific asset class targets are based on the results of periodic asset liability studies. The investment policies permit variances from the targets
within certain parameters. The weighted average expected long-term rate of return is based on a Fiscal 2008 review of such rates. The plan assets currently do not
include holdings of Spectrum common stock.
The Company’s Fixed Income Securities portfolio is invested primarily in commingled funds and managed for overall return expectations rather than
matching duration against plan liabilities; therefore, debt maturities are not significant to the plan performance.
The Company’s Other portfolio consists of all pension assets, primarily life insurance contracts, in the United Kingdom, Germany and the Netherlands.
The Company expects to make minimal contributions to its pension plans in 2009. The Company’s expected future pension benefit payments for Fiscal
2009 through our fiscal year 2018 are as follows:
2009 $ 3,917
2010 4,077
2011 4,426
2012 4,725
2013 5,108
2014 to 2018 30,395
The Company sponsors a supplemental executive retirement plan (“SERP”) for eligible employees. Each October 1, the account of each participant is
credited by an amount equal to 15% of the participant’s salary. In addition, each quarter each account is credited by an amount equal to 2% of the participant’s
account value. Each participant vests 20% per year in his account, with immediate full vesting occurring upon death, disability or a change in control of the
Company. During Fiscal 2007 the Company began funding this plan, however, prior to Fiscal 2007 the plan was unfunded. As of September 30, 2008 and 2007,
the Company had recorded an obligation of $983 and $468, respectively, related to the plan. Subsequent to the end of Fiscal 2008, the Company froze the SERP
and made all participants 100% vested. The full value of the account for each participant will be paid to those participants prior to or on December 31, 2008.
The Company sponsors a defined contribution pension plan for its domestic salaried employees, which allows participants to make contributions by salary
reduction pursuant to Section 401(k) of the Internal Revenue Code. The Company contributes annually from 3% to 6% of participants’ compensation based on
age or service, and may make additional discretionary contributions. The Company also sponsors defined contribution pension plans for employees of certain
foreign subsidiaries. Company contributions charged to operations, including discretionary amounts, for Fiscal 2008, 2007 and 2006 were $5,083, $4,109 and
$5,900, respectively.
(13) Segment Information
In Fiscal 2007, the Company began managing its business in three operating segments: (i) Global Batteries & Personal Care, (ii) Global Pet Supplies; and
(iii) the Home and Garden Business. The presentation of all historical segment reporting herein has been reclassified to conform to this segment structure.
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008