Employee Benefit Plans

12 Months Ended

Sep. 30, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

(10) Employee Benefit Plans

Pension Benefits

The Company has various defined benefit pension plans covering some of its employees in the United States and certain employees in other countries, primarily the United Kingdom and Germany. Plans generally provide benefits of stated amounts for each year of service. The Company funds its U.S. pension plans in accordance with the requirements of the defined benefit pension plans 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 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

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.

Below is a summary allocation of all pension plan assets as of the measurement date.

	Weighted Average Allocation
	Target			Actual
Asset Category	2011			2011			2010
Equity Securities		0-60	%		46	%		43	%
Fixed Income Securities		0-40	%		21	%		22	%
Other		0-100	%		33	%		35	%
Total		100	%		100	%		100	%

The weighted average expected long-term rate of return on total assets is 6.2%.

The Company has established formal investment policies for the assets associated with these plans. Policy objectives include maximizing long-term return at acceptable risk levels, diversifying among asset classes, if appropriate, and among investment managers, as well as establishing relevant risk parameters within each asset class. Specific asset class targets are based on the results of periodic asset liability studies. The investment policies permit variances from the targets within certain parameters. The weighted average expected long-term rate of return is based on a Fiscal 2011 review of such rates. The plan assets currently do not include holdings of SB Holdings common stock.

The Company's Fixed Income Securities portfolio is invested primarily in commingled funds and managed for overall return expectations rather than matching duration against plan liabilities; therefore, debt maturities are not significant to the plan performance.

The Company's Other portfolio consists of all pension assets, primarily insurance contracts, in the United Kingdom, Germany and the Netherlands.

The Company's expected future pension benefit payments for Fiscal 2012 through its fiscal year 2021 are as follows:

2012	$	7,464
2013		7,763
2014		8,016
2015		8,415
2016		9,036
2017 to 2021		52,300

The following table sets forth the fair value of the Company's pension plan assets as of September 30, 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	$	16,516	$	13,019	$	—	$	29,535
Common collective trust—fixed income		—		14,046		—		14,046
Total U.S. Defined Benefit Plan Assets	$	16,516	$	27,065	$	—	$	43,581
International Defined Benefit Plan Assets:
Common collective trust—equity	$	—	$	29,532	$	—	$	29,532
Common collective trust—fixed income		—		11,467		—		11,467
Insurance contracts—general fund		—		37,987		—		37,987
Other		—		8,073		—		8,073
Total International Defined Benefit Plan Assets	$	—	$	87,059	$	—	$	87,059

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 also sponsors defined contribution pension plans for employees of certain foreign subsidiaries. Successor Company contributions charged to operations, including discretionary amounts, for Fiscal 2011, Fiscal 2010 and the period from August 31, 2009 through September 30, 2009 were $4,999, $3,464 and $44, respectively. Predecessor Company contributions charged to operations, including discretionary amounts, for the period from October 1, 2008 through August 30, 2009 were $2,623.