|
(9) Net periodic pension expense for the U.S. and non-U.S. defined benefit pension plans includes the following components:
|
|
|
U.S. Pension Plan |
|
Non-U.S. Pension Plans |
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
(in thousands) |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost |
|
$ |
8,960 |
|
$ |
9,167 |
|
$ |
26,880 |
|
$ |
27,501 |
|
$ |
1,542 |
|
$ |
2,608 |
|
$ |
5,992 |
|
$ |
7,812 |
|
|
Interest cost |
|
9,191 |
|
9,604 |
|
27,575 |
|
28,812 |
|
8,537 |
|
7,757 |
|
25,676 |
|
23,305 |
|
|
Expected return on assets |
|
(10,155 |
) |
(10,599 |
) |
(30,467 |
) |
(31,797 |
) |
(10,760 |
) |
(9,068 |
) |
(32,106 |
) |
(27,235 |
) |
|
Amortization of prior service cost |
|
(47 |
) |
— |
|
(140 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
|
Recognized net actuarial loss |
|
3,497 |
|
4,691 |
|
10,491 |
|
14,074 |
|
1,367 |
|
2,038 |
|
4,464 |
|
6,103 |
|
|
Gain on curtailment |
|
(618 |
) |
— |
|
(618 |
) |
— |
|
— |
|
— |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net periodic pension expense |
|
$ |
10,828 |
|
$ |
12,863 |
|
$ |
33,721 |
|
$ |
38,590 |
|
$ |
686 |
|
$ |
3,335 |
|
$ |
4,026 |
|
$ |
9,985 |
|
The company currently expects to fund approximately $60 million to $100 million into its defined benefit pension plans during 2011, which is expected to be in excess of the minimum funding required. During the nine months ended September 30, 2011, contributions of approximately $50 million were made by the company.
During the third quarter of 2011, the company and its Board of Directors approved an amendment to the U.S. pension plan to freeze the accrual of future service-related benefits for certain eligible participants on December 31, 2011. Accordingly, as of September 30, 2011, the company remeasured the assets and liabilities of the U.S. pension plan and recognized a curtailment accounting event, resulting in a net reduction in the pension obligation of $29 million and an after-tax decrease in accumulated other comprehensive loss of $18 million.
The preceding information does not include amounts related to benefit plans applicable to employees associated with certain contracts with the U.S. Department of Energy because the company is not ultimately responsible for the current or future funded status of these plans. |