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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
2014 2013 2014 2013
Changes in benefit obligation
Benefit obligation, beginning of year .................. $ 256,142 $ 240,806 $ 403 $ 566
Liabilities assumed through acquisitions ............... — 14,716 — —
Service cost ...................................... 3,191 3,061 — 9
Interest cost ...................................... 10,361 9,886 18 22
Actuarial (gain) loss ............................... 12,923 1,851 7 (58)
Participant contributions ............................ 34 59 — —
Curtailments ..................................... — (1,507) — (135)
Benefits paid ..................................... (9,694) (15,925) (1) (1)
Foreign currency exchange rate changes ............... (5,940) 3,195 —
Benefit obligation, end of year ....................... $ 267,017 $ 256,142 $ 427 $ 403
Changes in plan assets
Fair value of plan assets, beginning of year ............. $ 175,484 $ 153,927 $ — $ —
Assets acquired through acquisitions .................. — 6,680 — —
Actual return on plan assets ......................... 12,487 16,759 — —
Employer contributions ............................ 12,985 12,316 1 1
Employee contributions ............................ 34 59 — —
Benefits paid ..................................... (9,694) (15,925) (1) (1)
Foreign currency exchange rate changes ............... (2,434) 1,668 —
Fair value of plan assets, end of year .................. $ 188,862 $ 175,484 $ — $ —
Accrued Benefit Cost ................................. $ (78,155) $ (80,658) $ (427) $ (403)
Range of assumptions:
Discount rate ..................................... 2.0%-13.5% 1.8%-13.0% 4.7% 4.7%
Expected return on plan assets ....................... 2.0%-7.5% 3.6%-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, 2014 and September 30, 2013 of $78,155 and $80,658,
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, 2014 and
September 30, 2013 are unrecognized net losses of $32,797, net of tax benefit of $797 and $29,180, net of tax
expense of $817, 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 2015 is $1,515.
At September 30, 2014, the Company’s total pension and deferred compensation benefit obligation of
$267,017 consisted of $70,892 associated with U.S. plans and $196,125 associated with international plans. The
fair value of the Company’s pension and deferred compensation benefit assets of $188,862 consisted of $62,404
associated with U.S. plans and $126,458 associated with international plans. The weighted average discount rate
used for the Company’s domestic plans was approximately 4.2% and approximately 3.3% 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 4.3% for its international plans.
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