9. Benefit Plans

Medical and Dental Plan

The Company maintains medical and dental benefit plans covering full-time domestic employees of the Company and their dependents. Certain plans are partially or fully self-funded plans under which participant claims are obligations of the plan. These plans are funded through employer and employee contributions at a level sufficient to pay for the benefits provided by the plan. The Company’s contributions to the plan were $9,500, $8,741, and $6,700 for the years ended December 31, 2013, 2012, and 2011, respectively. The plan covering a majority of full-time employees maintains individual stop loss insurance policies on the medical portion with a limit of stop loss of $235 to mitigate losses. Balances for the incurred but not yet reported claims, including reported but unpaid claims at December 31, 2013, and 2012, were $1,389 and $1,185, respectively. The Company estimates claims incurred but not yet reported based on its historical experience. During 2013, the Company paid premiums of $2,700 for other standard medical benefits covering certain full-time employees.

The Company’s foreign subsidiaries participate in government sponsored medical benefit plans. In certain cases, the Company purchases supplemental medical coverage for certain employees at these foreign locations. The expenses related to these plans are not material to the Company’s consolidated financial statements.

Savings Plan

The Company maintains a defined-contribution 401(k) savings plan for virtually all domestic employees who meet certain eligibility requirements. Under the plan, employees may defer receipt of a portion of their eligible compensation.

The Company amended the 401(k) savings plans effective January 1, 2009, to add Company matching and non-elective contributions. The Company may contribute a matching contribution of 50% of the first 6% of eligible compensation of employees. No matching contribution shall be made with respect to employee catch-up contributions. The Company may contribute a non-elective contribution for each plan year after 2008. The contribution will apply to eligible employees employed on December 31, 2008. The rate of the non-elective contribution is determined based upon years of service as of December 31, 2008, and is fixed. Both Company matching contributions and non-elective contributions are subject to vesting. Forfeitures may be applied against plan expenses.

The Company recognized $3,300, $3,000 and $2,400 of expense related to this plan in 2013, 2012 and 2011, respectively.

Pension Plans

The Company has noncontributory salaried and hourly pension plans (collectively, “Pension Plans”) covering certain domestic employees. The benefits under the salaried plan are based upon years of service and the participants’ defined final average monthly compensation. The benefits under the hourly plan are based on a unit amount at the date of termination multiplied by the participant’s years of credited service. The Company’s funding policy for the Pension Plans is to contribute amounts at least equal to the minimum annual amount required by applicable regulations. The Company elected to freeze the Pension Plans effective December 31, 2008. This resulted in a cessation of all future benefit accruals for both hourly and salary pension plans.

The Company uses a December 31 measurement date for the Pension Plans. Information related to the Pension Plans is as follows:

	Year Ended December 31,
	2013			2012

Accumulated benefit obligation at end of period	$	52,825		$	59,744

Change in projected benefit obligation
Projected benefit obligation at beginning of period	$	59,744		$	53,467
Interest cost		2,423			2,453
Net actuarial (gain) loss		(7,695	)		5,332
Benefits paid		(1,647	)		(1,508	)
Projected benefit obligation at end of period	$	52,825		$	59,744

Change in plan assets
Fair value of plan assets at beginning of period	$	36,570		$	31,423
Actual return on plan assets		6,465			4,268
Company contributions		1,052			2,387
Benefits paid		(1,647	)		(1,508	)
Fair value of plan assets at end of period	$	42,440		$	36,570

Funded status: accrued pension liability included in other long-term liabilities	$	(10,385	)	$	(23,174	)

Amounts recognized in accumulated other comprehensive income
Net actuarial loss	$	(4,393	)	$	(12,081	)

The actuarial loss for the Pension Plans that was amortized from OCI into net periodic benefit cost during 2013 is $1,108. The amount in OCI as of December 31, 2013 that is expected to be recognized as a component of net periodic pension expense during the next fiscal year is $106.

Additional information related to the Pension Plans is as follows:

	Year ended December 31,
	2013			2012			2011

Components of net periodic pension expense:
Interest cost		2,423			2,453			2,369
Expected return on plan assets		(2,520	)		(2,398	)		(2,342	)
Amortization of net loss		1,108			909			273
Net periodic pension expense	$	1,011		$	964		$	300

Weighted-average assumptions used to determine the benefit obligations are as follows:

	December 31,
	2013			2012

Discount rate – salaried pension plan		4.98	%		4.10	%
Discount rate – hourly pension plan		5.01	%		4.14	%
Rate of compensation increase (1)		n/	a		n/	a

(1)

No compensation increase was assumed as the plans were frozen effective December 31, 2008.

Weighted-average assumptions used to determine net periodic pension expense are as follows:

	Year ended December 31,
	2013			2012			2011

Discount rate		4.14	%		4.65	%		5.23	%
Expected long-term rate of return on plan assets		6.95			7.57			7.62
Rate of compensation increase (1)		n/	a		n/	a		n/	a

(1)

No compensation increase was assumed as the plans were frozen effective December 31, 2008.

To determine the long-term rate of return assumption for plan assets, the Company studies historical markets and preserves the long-term historical relationships between equities and fixed-income securities consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. The Company evaluates current market factors such as inflation and interest rates before it determines long-term capital market assumptions and reviews peer data and historical returns to check for reasonableness and appropriateness.

The Pension Plan’s weighted-average asset allocation at December 31, 2013 and 2012, by asset category, is as follows:

				December 31, 2013					December 31, 2012
Asset Category	Target			Dollars		%			Dollars		%
Fixed Income		24	%		7,307		17	%		8,736		24	%
Domestic equity		49	%		23,903		56	%		17,926		49	%
International equity		17	%		7,424		18	%		6,257		17	%
Real estate		10	%		3,806		9	%		3,651		10	%
Total		100	%	$	42,440		100	%	$	36,570		100	%

The fair values of the Pension Plan's assets at December 31, 2013 are as follows:

	Total		Quoted prices in active markets for identical asset (level 1)		Significant observable inputs (level 2)		Significant unobservable inputs (level 3)
Mutual fund	$	39,759	$	39,759	$	–	$	–
Collective trust		2,681		–		2,681		–
Total	$	42,440	$	39,759	$	2,681	$	–

The fair values of the Pension Plan's assets at December 31, 2012 are as follows:

	Total		Quoted prices in active markets for identical asset (level 1)		Significant observable inputs (level 2)		Significant unobservable inputs (level 3)
Mutual fund	$	33,683	$	33,683	$	–	$	–
Collective trust		2,887		–		2,887		–
Total	$	36,570	$	33,683	$	2,887	$	–

Mutual Funds – This category includes investments in mutual funds that encompass both equity and fixed income securities that are designed to provide a diverse portfolio. The plan’s mutual funds are designed to track exchange indices, and invest in diverse industries. Some mutual funds are classified as regulated investment companies. Investment managers have the ability to shift investments from value to growth strategies, from small to large capitalization funds, and from U.S. to international investments. These investments are valued at the closing price reported on the active market on which the individual securities are traded. These investments are classified within Level 1 of the fair value hierarchy.

Collective Trusts – This category includes public investment vehicles valued using the Net Asset Value (NAV) provided by the administrator of the trust. The NAV is based on the value of the underlying assets owned by the trust, minus its liabilities, and then divided by the number of shares outstanding. The NAV of the trust is classified within Level 2 of the fair value hierarchy.

The Company’s target allocation for equity securities and real estate is generally between 65% – 85%, with the remainder allocated primarily to bonds. The Company regularly reviews its actual asset allocation and periodically rebalances its investments to the targeted allocation when considered appropriate.

The Company expects to make estimated contributions of $2,149 to the Pension Plans in 2014.

The following benefit payments are expected to be paid from the Pension Plans:

Year
2014	$	1,776
2015		1,838
2016		1,971
2017		2,176
2018		2,279
Years 2019 – 2023		13,353

Certain of the Company’s foreign subsidiaries participate in local defined benefit or other post-employment benefit plans. These plans provide benefits that are generally based on years of credited service and a percentage of the employee’s eligible compensation earned throughout the applicable service period. Liabilities recorded under these plans are included in accrued wages and employee benefits in the Company’s consolidated balance sheets and are not material.