Employee Benefit Plans

9 Months Ended

Jul. 03, 2011

Employee Benefit Plans

Employee Benefit Plans

9 EMPLOYEE BENEFIT PLANS

Pension Benefits

The Company has various defined benefit pension plans covering some of its employees in the U.S. and certain employees in other countries, primarily the United Kingdom and Germany. These pension plans generally provide benefits of stated amounts for each year of service. The Company funds its U.S. pension plans in accordance with the Internal Revenue Service ("IRS") defined guidelines and, where applicable, in amounts sufficient to satisfy the minimum funding requirements of applicable laws. Additionally, in compliance with the Company's funding policy, annual contributions to non-U.S. defined benefit plans are equal to the actuarial recommendations or statutory requirements in the respective countries. The Company 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. The Company also has various nonqualified deferred compensation agreements with certain of its employees. Under certain of these agreements, the Company 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 the Company will fund these agreements. Under the remaining agreements, the Company 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.

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 over the succeeding years of service after reaching age 45 and remain eligible until reaching age 65. The plan is contributory and, accordingly, retiree contributions have been established as a flat dollar amount with contribution rates expected to increase at the active medical trend rate. This plan is unfunded.

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 Company's results of operations for the three and nine month periods ended July 3, 2011 and July 4, 2010 reflect the following pension and deferred compensation benefit costs:

	Three Months						Nine Months
Components of net periodic pension benefit and deferred compensation benefit cost	2011			2010			2011			2010
Service cost	$	781		$	725		$	2,344		$	2,174
Interest cost		2,557			1,932			7,670			5,558
Expected return on assets		(1,965	)		(1,382	)		(5,896	)		(3,926	)
Amortization of prior service cost		—			1			—			4
Recognized net actuarial loss		97			22			291			25
Employee contributions		(129	)		(88	)		(386	)		(265	)
Net periodic benefit cost	$	1,341		$	1,210		$	4,023		$	3,570
	Three Months						Nine Months
Pension and deferred compensation contributions	2011			2010			2011			2010
Contributions made during period	$	3,189		$	1,711		$	6,145		$	3,714

The following table sets forth the fair value of the Company's pension plan assets as of July 3, 2011 segregated by level within the fair value hierarchy (See Note 8—Fair Value of Financial Instruments, for discussion of the fair value hierarchy and fair value principles):

	Level 1		Level 2		Level 3		Total
U.S. Defined Benefit Plan Assets:
Common collective trust—equity	$	—	$	34,321	$	—	$	34,321
Common collective trust—fixed income		—		13,528		—		13,528
Total U.S. Defined Benefit Plan Assets	$	—	$	47,849	$	—	$	47,849
International Defined Benefit Plan Assets:
Common collective trust—equity	$	—	$	33,298	$	—	$	33,298
Common collective trust—fixed income		—		10,859		—		10,859
Insurance contracts—general fund		—		43,689		—		43,689
Other		—		5,844		—		5,844
Total International Defined Benefit Plan Assets	$	—	$	93,690	$	—	$	93,690

The following table sets forth the fair value of the Company's pension plan assets as of September 30, 2010 segregated by level within the fair value hierarchy:

	Level 1		Level 2		Level 3		Total
U.S. Defined Benefit Plan Assets:
Common collective trust—equity	$	—	$	28,168	$	—	$	28,168
Common collective trust—fixed income		—		16,116		—		16,116
Total U.S. Defined Benefit Plan Assets	$	—	$	44,284	$	—	$	44,284
International Defined Benefit Plan Assets:
Common collective trust—equity	$	—	$	28,090	$	—	$	28,090
Common collective trust—fixed income		—		9,725		—		9,725
Insurance contracts—general fund		—		40,347		—		40,347
Other		—		3,120		—		3,120
Total International Defined Benefit Plan Assets	$	—	$	81,282	$	—	$	81,282

The Company sponsors a defined contribution pension plan for its domestic salaried employees, which allows participants to make contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue Code. The Company currently contributes annually from 3% to 6% of participants' compensation based on age or service, and has the ability to make additional discretionary contributions. The Company also sponsors defined contribution pension plans for employees of certain foreign subsidiaries. Company contributions charged to operations, including discretionary amounts, for the three and nine month periods ended July 3, 2011 were $1,439 and $4,192, respectively. Company contributions charged to operations, including discretionary amounts, for the three and nine month periods ended July 4, 2010 were $933 and $2,408, respectively.