Defined Benefit Plans

9 Months Ended

Jul. 03, 2011

Defined Benefit Plans [Abstract]

Defined Benefit Plans

(10) Defined Benefit Plans

HGI

HGI has a noncontributory defined benefit pension plan (the “HGI Pension Plan”) covering certain former U.S. employees. During 2006, the Pension Plan was frozen which caused all existing participants to become fully vested in their benefits.

Additionally, HGI has an unfunded supplemental pension plan (the “Supplemental Plan”) which provides supplemental retirement payments to certain former senior executives of HGI. The amounts of such payments equal the difference between the amounts received under the HGI Pension Plan and the amounts that would otherwise be received if HGI Pension Plan payments were not reduced as the result of the limitations upon compensation and benefits imposed by Federal law. Effective December 1994, the Supplemental Plan was frozen.

Spectrum Brands

Spectrum Brands has various defined benefit pension plans (“Spectrum Brands Pension Plans”) covering some of its employees in the United States and certain employees in other countries, primarily the United Kingdom and Germany. The Spectrum Brands Pension Plans generally provide benefits of stated amounts for each year of service. Spectrum Brands funds its U.S. pension plans in accordance with the requirements of the defined benefit plans and, where applicable, in amounts sufficient to satisfy the minimum funding requirements of applicable laws. Additionally, in compliance with Spectrum Brands’ funding policy, annual contributions to non-U.S. defined benefit plans are equal to the actuarial recommendations or statutory requirements in the respective countries.

Spectrum Brands also sponsors or participates in a number of other non-U.S. pension arrangements, including various retirement and termination benefit plans, some of which are covered by local law or coordinated with government-sponsored plans, which are not significant in the aggregate and therefore are not included in the information presented below. Spectrum Brands also has various nonqualified deferred compensation agreements with certain of its employees. Under certain of these agreements, Spectrum Brands has agreed to pay certain amounts annually for the first 15 years subsequent to retirement or to a designated beneficiary upon death. It is management’s intent that life insurance contracts owned by Spectrum Brands will fund these agreements. Under the remaining agreements, Spectrum Brands has agreed to pay such deferred amounts in up to 15 annual installments beginning on a date specified by the employee, subsequent to retirement or disability, or to a designated beneficiary upon death.

Spectrum Brands also provides postretirement life insurance and medical benefits to certain retirees under two separate contributory plans.

Consolidated

The components of consolidated net periodic benefit and deferred compensation benefit costs and contributions made during the periods are as follows:

	Three Months						Nine Months
	2011			2010			2011			2010
Service cost	$	818		$	725		$	2,453		$	2,174
Interest cost		2,772			1,971			8,315			5,597
Expected return on assets		(2,217	)		(1,423	)		(6,650	)		(3,967	)
Amortization of prior service cost		—			1			—			4
Recognized net actuarial loss		97			22			291			25
Employee contributions		(129	)		(88	)		(386	)		(265	)
Net periodic pension cost	$	1,341		$	1,208		$	4,023		$	3,568
Contributions made during period	$	3,216		$	1,711		$	6,227		$	3,714

Contributions. Based on the currently enacted minimum pension plan funding requirements, the Company expects to make contributions during the remaining three months of fiscal 2011 totaling approximately $1,100.

Fair value measurements of the Company’s defined benefit plan assets are as follows:

	July 3,		September 30,
	2011(A)		2010(A)
U.S. Defined Benefit Plan Assets:
Common collective trusts—equity	$	44,173	$	36,723
Common collective trusts—fixed income		18,000		22,067
Other		776		—
U.S. Defined Benefit Plan Assets	$	62,949	$	58,790
International Defined Benefit Plan Assets:
Common collective trusts—equity	$	33,298	$	28,090
Common collective trusts—fixed income		10,859		9,725
Insurance contracts—general fund		43,689		40,347
Other		5,844		3,120
International Defined Benefit Plan Assets	$	93,690	$	81,282
Total Defined Benefit Plan Assets	$	156,639	$	140,072

^(A) The fair value measurements of the Company’s defined benefit plan assets are based on observable market price inputs (Level 2). Each collective trust’s valuation is based on its calculation of net asset value per share reflecting the fair value of its underlying investments. Since each of these collective trusts allows redemptions at net asset value per share at the measurement date, its valuation is categorized as a Level 2 fair value measurement. The fair values of insurance contracts and other investments are also based on observable market price inputs (Level 2).