v2.4.0.6
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2011
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
The Company has one defined benefit pension plan which is frozen, that covers certain U.S. hourly and salary employees. The defined benefit plan provides benefits based primarily on the participants’ years of service and compensation.
The following table sets forth the components of net periodic pension expense (benefit) for the years ended December 31, 2011, 2010 and 2009.
 
 
Year Ended December 31,
 
2011
 
2010
 
2009
Interest cost
$
2,409

 
$
2,447

 
$
2,397

Expected return on plan assets
(2,575
)
 
(2,353
)
 
(1,827
)
Amortization of net loss
365

 
269

 
678

Total pension expense (benefit)
$
199

 
$
363

 
$
1,248








The following table sets forth changes in the projected benefit obligation and plan assets, the funded status of the plans and the amounts recognized in the consolidated balance sheet:
 
 
December 31, 2011
 
December 31, 2010
Change in projected benefit obligation:
 
 
 
January 1 projected benefit obligation
$
44,693

 
$
41,627

Interest cost
2,409

 
2,447

Benefits paid
(1,641
)
 
(1,568
)
Actuarial losses
4,464

 
2,187

December 31 projected benefit obligation
$
49,925

 
$
44,693

Change in plan assets:
 
 
 
Fair value at January 1
$
33,210

 
$
30,981

Actual return
(473
)
 
3,261

Employer contributions
2,924

 
536

Benefits paid
(1,641
)
 
(1,568
)
Fair value at December 31
$
34,020

 
$
33,210

The funded status of the pension plans was as follows:
 
 
 
Funded status (plan assets less than projected benefit obligations)
$
(15,905
)
 
$
(11,483
)
Unrecognized actuarial loss
15,355

 
8,208

Net amount recognized
$
(550
)
 
$
(3,275
)

At December 31, 2011 and 2010, the Company recorded unrecognized actuarial losses of $4,515 and $1,280 in accumulated other comprehensive income, respectively.
The actuarial assumptions used in determining the funded status information and subsequent net periodic pension cost are as follows: 
 
Year Ended December 31,
 
2011
 
2010
 
2009
Discount rate
4.50
%
 
5.50
%
 
6.00
%
Expected long-term weighted average rate of return on plan assets
7.75
%
 
7.75
%
 
7.75
%

The discount rate reflects the current rate at which the pension liabilities could be effectively settled at year end. In estimating this rate, the Company looks to rates of return on high quality, fixed-income investments that receive one of the two highest ratings given by a recognized rating agency and the expected timing of benefit payments under the plan.
The expected long-term weighted average rate of return on plan assets was established using the Company’s target asset allocation for equity and debt securities and the historical average rates of return for equity and debt securities. The Company employs a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of short and long-term plan liabilities, plan funded status and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value, and small and large capitalizations. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability studies.




The Company’s pension plan weighted-average actual (which is periodically rebalanced) and target asset allocations by asset category at December 31 are as follows: 
 
 
 
Actual
 
Target
 
2011
 
2010
Equity
55
%
 
56
%
 
57
%
Fixed income funds
43
%
 
44
%
 
41
%
Cash and cash equivalents
2
%
 
—
%
 
2
%
Total
100
%
 
100
%
 
100
%

At December 31, 2011, the plan assets were invested in pooled separate accounts. The fair values of participation units held in pooled separate accounts are based on their net asset values, as reported by the managers of the pooled separate accounts as supported by the unit prices of actual purchase and sale transactions occurring as of or close to the financial statement date. Therefore, the Company’s plan assets are valued using Level 2 inputs. At December 31, 2010, the plan assets were valued using Level 1 inputs which are quoted prices for the investments in active markets.
The fair values of the Company’s pension plan assets utilizing the fair value hierarchy are as follows:
 
December 31, 2011
 
Total
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Pooled separate accounts - Equity
$
19,109

 
$
—

 
$
19,109

 
$
—

Pooled separate accounts - Fixed income funds
14,909

 
—

 
12,654

 
—

Pooled separate accounts - Cash and cash equivalents
2

 
—

 
2,257

 
—

Total
$
34,020

 
$
—

 
$
34,020

 
$
—


The Company’s funding policy is to contribute at least the minimum funding amounts required by law. Based upon current actuarial estimates, the Company expects to contribute $2,172 to its defined benefit pension plan in 2012 and expects the following benefit payments to be paid by the plan: 
 
 
2012
$
1,796

2013
1,869

2014
1,977

2015
2,068

2016
2,223

In aggregate during five years thereafter
13,508

 
$
23,441


The Company contributes to a multi-employer plan for certain collective bargaining U.S. employees. The risks of participating in this multi-employer plan are different from a single employer plan in the following aspects:
(a)
Assets contributed to the multi-employer by one employer may be used to provide benefits to employees of other participating employers.
(b)
If a participating employer ceases contributing to the plan, the unfunded obligations of the plan may be inherited by the remaining participating employers.
(c)
If the Company chooses to stop participating in the multi-employer plan, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
The Company has assessed and determined that the multi-employer plan to which it contributes is not significant to the Company's financial statements. The Company does not expect to incur a withdrawal liability or expect to significantly increase its contribution over the remainder of the contract period. The Company made contributions to the bargaining unit supported multi-employer pension plan resulting in expense of $518, $391 and $525 for the years ended December 31, 2011, 2010 and 2009, respectively.
The Company has a defined contribution savings plan that covers most of its U.S. employees. Company contributions to the plan are based on employee contributions, and a Company match and discretionary contributions. Expenses under the plan totaled $6,241, $4,949 and $5,015 for the years ended December 31, 2011, 2010 and 2009, respectively.