Rayovac 2009 Annual Report Download - page 194

Table of Contents
Index to Financial Statements SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
Company’s domestic and international plans was approximately 5.5%. The weighted average expected return on plan assets used for the Successor
Company’s domestic plans was approximately 8.0% and approximately 5.4% for its international plans.
At September 30, 2008, the Predecessor Company’s total pension and deferred compensation benefit obligation of $109,374 consisted of $36,116
associated with U.S. plans and $73,258 associated with international plans. The fair value of the Predecessor Company’s assets of $70,412 consisted of
$30,137 associated with U.S. plans and $40,275 associated with international plans. The weighted average discount rate used for the Predecessor
Company’s domestic plans was approximately 6.8% and approximately 6.4% for its international plans. The weighted average expected return on plan
assets used for the Predecessor Company’s domestic plans was approximately 8.0% and approximately 5.3% for its international plans.
Pension and Deferred Compensation Benefits Other Benefits
Successor
Company Predecessor Company Successor Company Predecessor Company
One Month
Ended
September 30,
2009
Eleven Months
Ended
August 30,
2009 2008 2007
One Month
Ended
September 30,
2009
Eleven Months
Ended
August 30,
2009 2008 2007
Components of net periodic benefit cost
Service cost $ 211 $ 2,068 $ 2,616 $ 3,197 $ 1 $ 8 $ 13 $223
Interest cost 612 6,517 6,475 6,294 2 24 27 163
Expected return on assets (417) (4,253) (4,589) (4,146) — — — —
Amortization of prior service cost — 202 371 703 — — — —
Amortization of transition obligation — — — — — — — —
Curtailment loss — 300 11 — — — — —
Recognized net actuarial loss (gain) — 37 136 208 (5) (53) (61) (58)
Net periodic cost (benefit) $ 406 $ 4,871 $ 5,020 $ 6,256 $ (2) $ (21) $ (21) $328
The discount rate is used to calculate the projected benefit obligation. The discount rate used is based on the rate of return on government bonds as
well as current market conditions of the respective countries where such plans are established.
Below is a summary allocation of all pension plan assets along with expected long−term rates of return by asset category as of the measurement date.
Weighted Average
Allocation
Target Actual
Asset Category 2009 2009 2008
Equity Securities 0−60% 46% 36%
Fixed Income Securities 0−40% 16% 16%
Other 0−100% 38% 48%
Total 100% 100% 100%
The weighted average expected long−term rate of return on total assets is 6.5%.
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