Rayovac 2008 Annual Report Download - page 165

Table of Contents
Index to Financial Statements
SPECTRUM BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
fair value of the Company’s assets of $70,412 consisted of $30,137 associated with U.S. plans and $40,275 associated with international plans. The weighted
average discount rate used for the Company’s domestic plans was approximately 6.8% and approximately 6.4% for its international plans. The weighted average
expected return on plan assets used for the Company’s domestic plans was approximately 8.0% and approximately 5.3% for its international plans.
At September 30, 2007, the Company’s total pension and deferred compensation benefit obligation of $118,589 consisted of $38,069 associated with U.S.
plans and $80,520 associated with international plans. The fair value of the Company’s assets of $73,422 consisted of $28,012 associated with U.S. plans and
$45,410 associated with international plans. The weighted average discount rate used for the Company’s domestic plans was approximately 6.3% and
approximately 5.6% for its international plans. The weighted average expected return on plan assets used for the Company’s domestic plans was approximately
8.0% and approximately 5.4% for its international plans.
Pension and Deferred
Compensation Benefits Other Benefits
2008 2007 2006 2008 2007 2006
Components of net periodic benefit cost
Service cost $ 2,616 $ 3,197 $ 4,686 $ 13 $ 223 $ 614
Interest cost 6,475 6,294 5,215 27 163 299
Expected return on assets (4,589) (4,146) (3,838) — — —
Amortization of prior service cost 371 703 404 — — 22
Amortization of transition obligation — — 34 — — —
Curtailment loss 11 — — — — —
Recognized net actuarial loss (gain) 136 208 1,607 (61) (58) —
Net periodic cost (benefit) $ 5,020 $ 6,256 $ 8,108 $ (21) $ 328 $ 935
The contributions to the Company’s pension plans between July 1 and September 30 were $1,418, $6,492 and $3,778 in Fiscal 2008, 2007 and 2006,
respectively. All of the Company’s plans individually have accrued benefit costs.
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 of the
respective countries as well as current market conditions.
Below is a summary allocation of all pension plan assets along with expected long-term rates of return by asset category as of the measurement date.
Weighted Average
Allocation
Target Actual
Asset Category 2008 2008 2007
Equity Securities 0-60% 36% 32%
Fixed Income Securities 0-40% 16% 15%
Other 0-100% 48% 53%
Total 100% 100% 100%
The weighted average expected long-term rate of return on total assets is 6.4%.
160
Source: Spectrum Brands, Inc, 10-K, December 10, 2008