Rayovac 2013 Annual Report Download - page 122

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SPECTRUM BRANDS HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(Amounts in thousands, except per share figures)
The following tables provide additional information on the Company’s pension and other postretirement
benefit plans:
Pension and Deferred
Compensation Benefits Other Benefits
2013 2012 2013 2012
Change in benefit obligation
Benefit obligation, beginning of year ................. $ 240,806 $ 209,472 $ 566 $ 542
Liabilities assumed through acquisitions .............. 14,716 —
Service cost ..................................... 3,061 2,048 9 12
Interest cost ..................................... 9,886 10,593 22 27
Actuarial loss (gain) .............................. 1,851 29,834 (58) (14)
Participant contributions ........................... 59 182 — —
Curtailments .................................... (1,507) — (135) —
Benefits paid .................................... (15,925) (9,354) (1) (1)
Foreign currency exchange rate changes .............. 3,195 (1,969) — —
Benefit obligation, end of year ...................... $ 256,142 $ 240,806 $ 403 $ 566
Change in plan assets
Fair value of plan assets, beginning of year ............ $ 153,927 $ 130,641 $ — $ —
Assets acquired through acquisitions ................. 6,680 — — —
Actual return on plan assets ........................ 16,759 20,112 — —
Employer contributions ........................... 12,316 12,587 1 1
Employee contributions ........................... 59 182 — —
Benefits paid .................................... (15,925) (9,354) (1) (1)
Foreign currency exchange rate changes .............. 1,668 (241) — —
Fair value of plan assets, end of year ................. $ 175,484 $ 153,927 $ — $ —
Accrued Benefit Cost ................................ $ (80,658) $ (86,879) $ (403) $ (566)
Range of assumptions:
Discount rate .................................... 1.8%-13.0% 4.0%-13.5% 4.7% 4.0%
Expected return on plan assets ...................... 3.6%-7.8% 4.0%-7.8% N/A N/A
Rate of compensation increase ...................... 2.3%-5.5% 2.3%-5.5% N/A N/A
The net underfunded status as of September 30, 2013 and September 30, 2012 of $80,658 and $86,879,
respectively, is recognized in the accompanying Consolidated Statements of Financial Position within Employee
benefit obligations, net of current portion. Included in the Company’s AOCI as of September 30, 2013 and
September 30, 2012 are unrecognized net losses of $29,180, net of tax expense of $817 and $33,428, net of tax
benefit of $4,392, 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 2014 is $1,549.
At September 30, 2013, the Company’s total pension and deferred compensation benefit obligation of
$256,142 consisted of $66,895 associated with U.S. plans and $189,247 associated with international plans. The
fair value of the Company’s pension and deferred compensation benefit assets of $175,484 consisted of $58,458
associated with U.S. plans and $117,026 associated with international plans. The weighted average discount rate
used for the Company’s domestic plans was approximately 3.8% and approximately 3.9% for its international
plans. The weighted average expected return on plan assets used for the Company’s domestic plans was
approximately 7.8% and approximately 4.7% for its international plans.
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