Rayovac 2003 Annual Report Download - page 54

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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 and Deferred
Compensation Benefits Other Benefits
2002 2003 2002 2003
Change in benefit obligation
Benefit obligation, beginning of year $ 20,619 $ 23,754 $ 2,677 $ 3,076
Liabilities assumed with acquisitions —40,719 ——
Service cost 693 1,537 299 285
Interest cost 1,512 3,599 188 207
Amendments 677 —(20) —
Actuarial loss (gain) 1,132 4,729 (41) 28
Loss (gain) on curtailment ———(385)
Benefits paid (879) (2,547) (27) (169)
Foreign currency exchange rate changes —5,832 ——
Benefit obligation, end of year $ 23,754 $ 77,623 $ 3,076 $ 3,042
Change in plan assets
Fair value of plan assets, beginning of year $ 12,316 $ 11,494 $ — $—
Assets acquired with acquisitions —14,755 ——
Actual return on plan assets (1,279) 1,404 ——
Employer contributions 1,414 4,399 27 169
Employee contributions —41 ——
Benefits paid (879) (1,650) (27) (169)
Plan expenses paid (78) (77) ——
Foreign currency exchange rate changes —1,739 ——
Fair value of plan assets, end of year $ 11,494 $ 32,105 $ — $—
Funded status $(12,260) $(45,518) $(3,076) $(3,042)
Unrecognized net transition obligation 168 121 309 246
Unrecognized prior service cost 3,278 2,281 ——
Unrecognized net actuarial loss (gain) 6,985 12,526 (161) (133)
Adjustment for minimum liability (10,435) (14,942) ——
Accrued benefit cost $(12,264) $(45,532) $(2,928) $(2,929)
Weighted-average assumptions:
Discount rate 7.0% 5.0%–6.0% 7.25% 6.0%
Expected return on plan assets 8.5% 4.0%–8.5% N.A. N.A.
Pension Benefits Other Benefits
2001 2002 2003 2001 2002 2003
Components of net periodic benefit cost
Service cost $ 616 $ 693 $ 1,537 $343 $299 $ 285
Interest cost 1,415 1,512 3,599 213 188 207
Actual return on assets 1,252 1,279 (1,404) —— —
Amortization of prior service cost 311 315 374 —— —
Loss/(gain) on curtailments ——628 ——(354)
Recognized net actuarial (gain) loss (2,368) (2,433) (375) 61 32 32
Net periodic benefit cost $ 1,226 $ 1,366 $ 4,359 $617 $519 $ 170
Notes to Consolidated Financial Statements
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)
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