Rayovac 2002 Annual Report Download - page 57

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)
Other Benefits The Company provides certain health care and life insurance benefits to eligible retired employees. Participants earn retiree health care
benefits after reaching age 45 over the next 10 succeeding years of service and remain eligible until reaching age 65. The plan is contributory; retiree
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.
Pension Benefits Other Benefits
2001 2002 2001 2002
Change in benefit obligation
Benefit obligation at beginning of year $17,731 $ 20,619 $ 2,925 $ 2,677
Service cost 616 693 343 299
Interest cost 1,415 1,512 213 188
Amendments 371 677 —(20)
Actuarial loss (gain) 1,180 1,132 (701) (41)
Benefits paid (694) (879) (103) (27)
Benefit obligation at end of year $20,619 $ 23,754 $ 2,677 $ 3,076
Change in plan assets
Fair value of plan assets at beginning of year $11,258 $ 12,316 $— $—
Actual return on plan assets (1,252) (1,279) ——
Employer contribution 3,114 1,414 103 27
Benefits paid (694) (879) (103) (27)
Plan expenses paid (110) (78) ——
Fair value of plan assets at end of year $12,316 $ 11,494 $— $—
Funded status $ (8,303) $(12,260) $(2,677) $(3,076)
Unrecognized net transition obligation 213 168 343 309
Unrecognized prior service cost 2,917 3,278 ——
Unrecognized net actuarial loss (gain) 3,297 6,985 (121) (161)
Adjustment for minimum liability (6,431) (10,435) ——
Accrued benefit cost $ (8,307) $(12,264) $(2,455) $(2,928)
Weighted-average assumptions:
Discount rate 7.5% 7.0% 7.5% 7.25%
Expected return on plan assets 8.5% 8.5% N.A. N.A.
Pension Benefits Other Benefits
2000 2001 2002 2000 2001 2002
Components of net periodic benefit cost
Service cost $ 506 $ 616 $ 693 $335 $343 $299
Interest cost 1,239 1,415 1,512 209 213 188
Actual return on assets (604) 1,252 1,279 ———
Amortization of prior service cost 234 311 315 ———
Recognized net actuarial (gain) loss (272) (2,368) (2,433) 96 61 32
Net periodic benefit cost $1,103 $ 1,226 $ 1,366 $640 $617 $519
Pension plan assets and obligations are measured at June 30 each year. The contributions to the pension plans between July 1 and September 30 were
$495 and $2,814 in 2001 and 2002, respectively.