Rayovac 2010 Annual Report Download - page 156

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
The net underfunded status as of September 30, 2010 and September 30, 2009 of $89,411 and $54,407,
respectively, is recognized in the accompanying Consolidated Statements of Financial Position within Employee
benefit obligations, net of current portion. Included in the Successor Company’s AOCI as of September 30, 2010
and September 30, 2009 are unrecognized net (losses) gains of $(17,197), net of tax benefit (expense) of $5,894
and $576 net of tax benefit (expense) of $(247), respectively, which have not yet been recognized as components
of net periodic pension cost. The net loss in AOCI expected to be recognized during Fiscal 2011 is $(388).
At September 30, 2010, the Company’s total pension and deferred compensation benefit obligation of
$214,977 consisted of $62,126 associated with U.S. plans and $152,851 associated with international plans. The
fair value of the Company’s assets of $125,566 consisted of $44,284 associated with U.S. plans and $81,282
associated with international plans. The weighted average discount rate used for the Company’s domestic plans
was approximately 5% and approximately 4.8% for its international plans. The weighted average expected return
on plan assets used for the Company’s domestic plans was approximately 7.5% and approximately 3.3% for its
international plans.
At September 30, 2009, the Company’s total pension and deferred compensation benefit obligation of
$132,752 consisted of $44,842 associated with U.S. plans and $87,910 associated with international plans. The
fair value of the Company’s assets of $78,345 consisted of $33,191 associated with U.S. plans and $45,154
associated with international plans. The weighted average discount rate used for the Company’s domestic and
international plans was approximately 5.5%. The weighted average expected return on plan assets used for the
Company’s domestic plans was approximately 8.0% and approximately 5.4% for its international plans.
Pension and Deferred Compensation Benefits Other Benefits
Successor
Company Predecessor Company
Successor
Company Predecessor Company
2010
Period from
August 31, 2009
through
September 30,
2009
Period from
October 1, 2008
through
August 30,
2009 2008 2010
Period from
August 31, 2009
through
September 30,
2009
Period from
October 1, 2008
through
August 30,
2009 2008
Components of net periodic
benefit cost
Service cost .............. $2,479 $ 211 $ 2,068 $ 2,616 $ 9 $ 1 $ 8 $ 13
Interest cost .............. 8,239 612 6,517 6,475 26 2 24 27
Expected return on assets . . . (5,774) (417) (4,253) (4,589) — — — —
Amortization of prior service
cost .................. 535 — 202 371 — — — —
Amortization of transition
obligation ............. 207 — — — — — — —
Curtailment loss .......... — — 300 11 — — — —
Recognized net actuarial loss
(gain) ................. 613 — 37 136 (58) (5) (53) (61)
Net periodic cost (benefit) . . $ 6,299 $ 406 $ 4,871 $ 5,020 $ (23) $ (2) $ (21) $ (21)
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.
146