Rayovac 2010 Annual Report Download - page 155

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
contributions have been established as a flat dollar amount with contribution rates expected to increase at the
active medical trend rate. The plan is unfunded. The Company is amortizing the transition obligation over a
20-year period.
Under the Tetra U.S. postretirement plan the Company provides postretirement medical benefits to full-time
employees who meet minimum age and service requirements. The plan is contributory with retiree contributions
adjusted annually and contains other cost-sharing features such as deductibles, coinsurance and copayments.
The recognition and disclosure provisions of ASC Topic 715: “Compensation-Retirement Benefits,” (“ASC
715”) requires recognition of the overfunded or underfunded status of defined benefit pension and postretirement
plans as an asset or liability in the statement of financial position, and to recognize changes in that funded status
in AOCI in the year in which the adoption occurs. The measurement date provisions of ASC 715, became
effective during Fiscal 2009 and the Company now measures all of its defined benefit pension and postretirement
plan assets and obligations as of September 30, which is the Company’s fiscal year end.
The following tables provide additional information on the Company’s pension and other postretirement
benefit plans:
Pension and Deferred
Compensation Benefits Other Benefits
2010 2009 2010 2009
Change in benefit obligation
Benefit obligation, beginning of year ................. $ 132,752 $ 112,444 $ 476 $ 402
Obligations assumed from Merger with Russell Hobbs . . . 54,468 — — —
Service cost ..................................... 2,479 2,279 9 6
Interest cost ..................................... 8,239 7,130 26 26
Actuarial (gain) loss .............................. 25,140 17,457 25 51
Participant contributions ........................... 495 334 — —
Benefits paid .................................... (6,526) (6,353) (9) (9)
Foreign currency exchange rate changes .............. (2,070) (539) — —
Benefit obligation, end of year ...................... $ 214,977 $ 132,752 $ 527 $ 476
Change in plan assets
Fair value of plan assets, beginning of year ............ $ 78,345 $ 70,412 $ — $ —
Assets acquired from Merger with Russell Hobbs ....... 38,458 — — —
Actual return on plan assets ........................ 7,613 1,564 — —
Employer contributions ........................... 6,234 9,749 9 9
Employee contributions ........................... 2,127 3,626 — —
Benefits paid .................................... (6,526) (6,353) (9) (9)
Plan expenses paid ............................... (237) (222) — —
Foreign currency exchange rate changes .............. (448) (431) — —
Fair value of plan assets, end of year ................. $ 125,566 $ 78,345 $ — $ —
Accrued Benefit Cost ................................ $ (89,411) $ (54,407) $ (527) $ (476)
Weighted-average assumptions:
Discount rate .................................... 4.2%-13.6% 5.0%-11.8% 5.0% 5.5%
Expected return on plan assets ...................... 4.5%-8.8% 4.5%-8.0% N/A N/A
Rate of compensation increase ...................... 0%-5.5% 0%-4.6% N/A N/A
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