Pension Benefits Other Benefits 1999 2000 2001 1999 2000 2001 Components of net periodic benefit cost Service cost $495 $506 $ 616 $236 $335 $343 Interest cost 1,431 1,239 1,415 156 209 213 Actual return on assets (735) (604) 1,252 — — — Amortization of prior service cost 233 234 311 — — — Recognized net actuarial (gain) loss (347) (272) (2,368) 63 96 61 Net periodic benefit cost $1,077 $1,103 $1,226 $455 $640 $617 Pension plan assets and obligations are measured at June 30 each year. The contributions to the pension plans between July 1 and September 30 were $2,338 and $495 in 2000 and 2001, respectively. The Company has recorded an additional minimum pension liability of $2,712 and $6,431 at September 30, 2000 and 2001, respectively, to recognize the underfunded position of certain of its benefit plans. An intangible asset of $2,660 and $3,081 at September 30, 2000 and 2001, respectively, equal to the unrecognized prior service cost of these plans, has also been recorded. The excess of the additional minimum liability over the unrecognized prior service cost of $52 at September 30, 2000 and $3,350 at September 30, 2001, has been recorded as a component of accumulated other comprehensive income. 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 con- tributes annually from 3% to 6% of participants’ compensation based on age, and may make additional discretionary contri- butions. The Company also sponsors defined contribution pension plans for employees of certain foreign subsidiaries. Company contributions charged to operations, including dis- cretionary amounts, for 1999, 2000 and 2001, were $2,013, $2,171 and $2,147, respectively. For measurement purposes, annual rates of increase of 8.0% in the per capita costs of covered health care benefits were assumed for 1999, 2000 and 2001, respectively, gradually decreasing to 5.5%. The health care cost trend rate assump- tion has a significant effect on the amounts reported. For example, increasing the assumed health care cost trend rates by one percentage point in each year would increase the accu- mulated postretirement benefit obligation as of September 30, 2001 by $170 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended September 30, 2001 by $59. Decreasing the assumed health care cost trend rates by one percentage point in each year would decrease the accumulated postre- tirement benefit obligation as of September 30, 2001 by $156 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year ended September 30, 2001 by $52. (12) Segment Information The Company manages operations in three reportable seg- ments based upon geographic area. North America includes the United States and Canada; Latin America includes Mexico, Central America and South America; Europe/Rest of World (“Europe/ROW”) includes the United Kingdom, Europe and all other countries in which the Company does business. The Company manufactures and markets dry cell batteries including alkaline, zinc carbon, alkaline rechargeable, hearing aid, and other specialty batteries and lighting products throughout the world. These product lines are sold in all geographic areas except Latin America where revenues have historically been derived primarily from zinc carbon and some alkaline batteries. Net sales and cost of sales to other segments have been eliminated. The gross contribution of intersegment sales is included in the segment selling the product to the external customer. Segment revenues are based upon the geographic area in which the product is sold. Notes to Consolidated Financial Statements Rayovac Corporation and Subsidiaries (In thousands, except per share amounts)