Rayovac 2011 Annual Report Download - page 136

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SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(CONTINUED)
(In thousands, except per share amounts)
The net underfunded status as of September 30, 2011 and September 30, 2010 of $78,831 and $89,411,
respectively, is recognized in the accompanying Consolidated Statements of Financial Position within Employee
benefit obligations, net of current portion. Included in the Company’s AOCI as of September 30, 2011 and
September 30, 2010 are unrecognized net losses of $21,496, net of tax benefit of $11,460 and $17,197, net of tax
benefit of $5,894, respectively, which have not yet been recognized as components of net periodic pension cost.
The net loss in AOCI expected to be recognized during Fiscal 2012 is $693.
At September 30, 2011, the Company’s total pension and deferred compensation benefit obligation of
$209,472 consisted of $67,611 associated with U.S. plans and $141,861 associated with international plans. The
fair value of the Company’s assets of $130,641 consisted of $43,582 associated with U.S. plans and $87,059
associated with international plans. The weighted average discount rate used for the Company’s domestic plans
was approximately 5.0% and approximately 4.9% for its international plans. The weighted average expected
return on plan assets used for the Company’s domestic plans was approximately 7.6% and approximately 5.4%
for its international plans.
At September 30, 2010, the Company’s total pension and deferred compensation benefit obligation of
$214,977 consisted of $62,126 associated with U.S. plans and $152,851 associated with international plans. The
fair value of the Company’s assets of $125,566 consisted of $44,284 associated with U.S. plans and $81,282
associated with international plans. The weighted average discount rate used for the Company’s domestic plans
was approximately 5% and approximately 4.8% for its international plans. The weighted average expected return
on plan assets used for the Company’s domestic plans was approximately 7.5% and approximately 5.4% for its
international plans.
Pension and Deferred Compensation Benefits Other Benefits
Successor
Company
Predecessor
Company
Successor
Company
Predecessor
Company
2011 2010
Period from
August 31, 2009
through
September 30,
2009
Period from
October 1, 2008
through
August 30,
2009 2011 2010
Period from
August 31, 2009
through
September 30,
2009
Period from
October 1, 2008
through
August 30,
2009
Components of net periodic
benefit cost
Service cost ............. $ 2,543 $ 2,479 $ 211 $ 2,068 $ 11 $ 9 $ 1 $ 8
Interest cost ............. 10,380 8,239 612 6,517 27 26 2 24
Expected return on assets . . (7,829) (5,774) (417) (4,253) — — — —
Amortization of prior
service cost ........... — 535 — 202 — — — —
Amortization of transition
obligation ............. — 207 — — — — — —
Curtailment loss .......... — — — 300 — — — —
Recognized net actuarial
(gain) loss ............ 8 613 — 37 (52) (58) (5) (53)
Net periodic cost
(benefit) .............. $ 5,102 $ 6,299 $ 406 $ 4,871 $ (14) $ (23) $ (2) $ (21)
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 as well as current market conditions of the respective countries where such
plans are established.
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