Rayovac 2008 Annual Report Download - page 164

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
The following tables provide additional information on the Company’s pension and other postretirement benefit plans:
Pension and Deferred
Compensation Benefits Other Benefits
2008 2007 2008 2007
Change in benefit obligation
Benefit obligation, beginning of year $ 118,589 $ 113,391 $ 458 $ 5,298
Service cost 2,616 3,197 13 223
Interest cost 6,475 6,294 27 163
Other events 66 — — —
Actuarial (gain) loss (9,874) (8,975) (75) 157
Loss (gain) on curtailment — 694 — (5,147)
Participant contributions 320 119 — —
Benefits paid (8,159) (4,414) (21) (236)
Foreign currency exchange rate changes (659) 8,283 — —
Benefit obligation, end of year $ 109,374 $ 118,589 $ 402 $ 458
Change in plan assets
Fair value of plan assets, beginning of year $ 73,422 $ 63,133 $ — $ —
Assets acquired with acquisitions — — — —
Actual return on plan assets (3,301) 5,864 — —
Employer contributions 7,344 4,882 21 236
Employee contributions 2,081 119 — —
Benefits paid (8,159) (4,414) (21) (236)
Assets transferred out — (216) — —
Plan expenses paid (178) (198) — —
Foreign currency exchange rate changes (797) 4,252 — —
Fair value of plan assets, end of year $ 70,412 $ 73,422 $ — $ —
Funded status before fourth quarter contributions $ (38,962) $ (45,167) $ (402) $ (458)
Fourth quarter contributions 548 4,352 — —
Accrued Benefit Cost (38,414) (40,815) (402) (458)
Weighted-average assumptions:
Discount rate 5.0%-7.0% 4.50%-6.25% 6.75% 6.25%
Expected return on plan assets 4.5%-8.0% 4.5%-8.0% N/A N/A
Rate of compensation increase 0%-4.6% 0%-4.4% N/A N/A
The net underfunded status of $38,414 is recognized in the accompanying Consolidated Balance Sheet as $1,290 within Other Assets for our overfunded
plans and $39,704 within Total Employee Benefit Obligations for our underfunded plans. Included in AOCI as of September 30, 2008 are the following amounts
that have not yet been recognized as components of net periodic pension cost: unrecognized net losses of $4,173 and unrecognized net prior service costs of
$1,626. The net loss, and net prior services costs in AOCI expected to be recognized during Fiscal 2009 are $159 and $214, respectively.
At September 30, 2008, the Company’s total pension and deferred compensation benefit obligation of $109,374 consisted of $36,116 associated with U.S.
plans and $73,258 associated with international plans. The
159
Source: Spectrum Brands, Inc, 10-K, December 10, 2008