Rayovac 2015 Annual Report Download - page 143

SPECTRUM BRANDS HOLDINGS, INC.
SB/RH HOLDINGS, LLC
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
The net loss in Accumulated Other Comprehensive Loss expected to be recognized during the year ended
September 30, 2016 is $2.4 million.
The following table contains the components of net periodic benefit cost for the years ended September 30,
2015, 2014 and 2013:
U.S. Plans Non U.S. Plans
2015 2014 2013 2015 2014 2013
(in millions)
Service cost ....................... $ 0.4 $ 0.2 $ 0.2 $ 2.6 $ 3.0 $ 2.8
Interest cost ....................... 2.9 3.0 2.8 6.2 7.4 7.1
Expected return on assets ............. (4.5) (4.1) (3.7) (5.2) (5.8) (5.0)
Curtailment ........................ — — — 0.7 (0.1) (0.7)
Recognized net actuarial loss .......... 0.2 0.1 1.2 1.3 1.4 0.9
Net periodic benefit cost ............. $(1.0) $ (0.8) $ 0.5 $ 5.6 $ 5.9 $ 5.1
Weighted average assumptions
Discount rate .................. 4.15% 4.65% 3.75% 2.00 - 13.50% 2.25 - 12.50% 1.75 - 13.00%
Expected return on plan assets ..... 7.50% 7.75% 7.75% 2.00 - 5.26% 4.00 - 5.76% 3.60 - 5.00%
Rate of compensation increase ..... N/A N/A N/A 2.25 - 5.50% 2.25 - 5.50% 2.25 - 5.50%
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 the
plans are established. The expected return on plan assets is based on the Company’s expectation of the long-term
average rate of return of the capital market in which the plans invest. The expected return reflects the target asset
allocations and considers the historical returns earned for each asset category.
The Company has established formal investment policies for the assets associated with these plans. Policy
objectives include maximizing long-term return at acceptable risk levels, diversifying among asset classes, if
appropriate, and among investment managers, as well as establishing relevant risk parameters within each asset
class. Specific asset class targets are based on the results of periodic asset/liability studies. The investment
policies permit variances from the targets within certain parameters. The plan assets currently do not include
holdings of the Company’s common stock.
Below is a summary allocation of all pension plan assets as of September 30, 2015 and 2014:
U.S. Plans Non U.S. Plans
Asset Type 2015 2014 2015 2014
Equity Securities ........................................... 63% 61% 6% 6%
Fixed Income Securities ...................................... 35% 37% 25% 22%
Other ..................................................... 2% 2% 69% 72%
Total ..................................................... 100% 100% 100% 100%
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