Rayovac 2011 Annual Report Download - page 135

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
Other Benefits
Under the Rayovac postretirement plan, 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.
Under the Tetra U.S. postretirement plan, the Company provides postretirement medical benefits to full-
time employees who meet minimum age and service requirements. The plan is contributory with retiree
contributions adjusted annually, and contains other cost-sharing features such as deductibles, coinsurance and
copayments.
The following tables provide additional information on the Company’s pension and other postretirement
benefit plans:
Pension and Deferred
Compensation Benefits Other Benefits
2011 2010 2011 2010
Change in benefit obligation
Benefit obligation, beginning of year ................. $ 214,977 $ 132,752 $ 527 $ 476
Obligations assumed from Merger with Russell Hobbs . . . — 54,468 — —
Service cost ..................................... 2,543 2,479 11 9
Interest cost ..................................... 10,380 8,239 27 26
Actuarial (gain) loss .............................. (9,027) 25,140 (21) 25
Participant contributions ........................... 189 495 — —
Benefits paid .................................... (8,685) (6,526) (2) (9)
Foreign currency exchange rate changes .............. (905) (2,070) — —
Benefit obligation, end of year ...................... $ 209,472 $ 214,977 $ 542 $ 527
Change in plan assets
Fair value of plan assets, beginning of year ............ $ 125,566 $ 78,345 $ — $ —
Assets acquired from Merger with Russell Hobbs ....... — 38,458 — —
Actual return on plan assets ........................ (100) 7,613 — —
Employer contributions ........................... 12,854 6,234 2 9
Employee contributions ........................... 1,821 2,127 — —
Benefits paid .................................... (8,685) (6,526) (2) (9)
Plan expenses paid ............................... (226) (237) — —
Foreign currency exchange rate changes .............. (589) (448) — —
Fair value of plan assets, end of year ................. $ 130,641 $ 125,566 $ — $ —
Accrued Benefit Cost ................................ $ (78,831) $ (89,411) $ (542) $ (527)
Weighted-average assumptions:
Discount rate .................................... 4.2%-13.6% 4.2%-13.6% 5.0% 5.0%
Expected return on plan assets ...................... 3.0%-7.8% 4.5%-8.8% N/A N/A
Rate of compensation increase ...................... 0%-5.5% 0%-5.5% N/A N/A
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