Rayovac 2012 Annual Report Download - page 126

Download and view the complete annual report

Please find page 126 of the 2012 Rayovac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 154

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154

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 40 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.
The following tables provide additional information on the Company’s pension and other postretirement
benefit plans:
Pension and Deferred
Compensation Benefits Other Benefits
2012 2011 2012 2011
Change in benefit obligation
Benefit obligation, beginning of year ................. $ 209,472 $ 214,977 $ 542 $ 527
Service cost ..................................... 2,048 2,543 12 11
Interest cost ..................................... 10,593 10,380 27 27
Actuarial (gain) loss .............................. 29,834 (9,027) (14) (21)
Participant contributions ........................... 182 189 — —
Benefits paid .................................... (9,354) (8,685) (1) (2)
Foreign currency exchange rate changes .............. (1,969) (905) — —
Benefit obligation, end of year ...................... $ 240,806 $ 209,472 $ 566 $ 542
Change in plan assets
Fair value of plan assets, beginning of year ............ $ 130,641 $ 125,566 $ — $ —
Actual return on plan assets ........................ 20,112 (100) — —
Employer contributions ........................... 12,587 14,486 1 2
Employee contributions ........................... 182 189 — —
Benefits paid .................................... (9,354) (8,685) (1) (2)
Plan expenses paid ............................... — (226) — —
Foreign currency exchange rate changes .............. (241) (589) — —
Fair value of plan assets, end of year ................. $ 153,927 $ 130,641 $ — $ —
Accrued Benefit Cost ................................ $ (86,879) $ (78,831) $ (566) $ (542)
Range of assumptions:
Discount rate .................................... 4.0%-13.5% 4.2%-13.6% 4.0% 5.0%
Expected return on plan assets ...................... 4.0%-7.8% 3.0%-7.8% N/A N/A
Rate of compensation increase ...................... 2.3%-5.5% 0.0%-5.5% N/A N/A
The net underfunded status as of September 30, 2012 and September 30, 2011 of $86,879 and $78,831,
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, 2012 and
September 30, 2011 are unrecognized net losses of $33,428, net of tax benefit of $4,392 and $21,496, net of tax
benefit of $1,542, 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 2013 is $2,084.
116