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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2012
Compensation and Retirement Disclosure [Abstract] |
Employee Benefit Plans | Employee Benefit Plans Pension and Profit-Sharing Benefits The Company provides a defined contribution profit sharing plan for the benefit of substantially all the Company's domestic salaried and non-union hourly employees. The plan contains both contributory and noncontributory profit sharing arrangements, as defined. Aggregate charges included in the accompanying statement of income under this plan for both continuing and discontinued operations were approximately $5.4 million, $4.5 million and $4.2 million in 2012, 2011 and 2010, respectively. The Company's foreign and union hourly employees participate in defined benefit pension plans. Postretirement Benefits The Company provides postretirement medical and life insurance benefits, none of which are pre-funded, for certain of its active and retired employees. Plan Assets, Expenses and Obligations Plan assets, expenses and obligations for pension and postretirement benefit plans disclosed herein include both continuing and discontinued operations. Net periodic pension and postretirement benefit expense (income) recorded in the Company's statement of income for defined benefit pension plans and postretirement benefit plans include the following components:
|  | Pension Benefit |  | Postretirement Benefit
|  | 2012 |  | 2011 |  | 2010 |  | 2012 |  | 2011 |  | 2010
|  | (dollars in thousands)
Service cost |  | $ | 600 |  |  | $ | 640 |  |  | $ | 600 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost |  | 1,620 |  |  | 1,590 |  |  | 1,570 |  |  | 50 |  |  | 50 |  |  | 70 |
Expected return on plan assets |  | (1,720 | ) |  | (1,600 | ) |  | (1,570 | ) |  | — |  |  | — |  |  | — |
Amortization of prior-service cost |  | — |  |  | — |  |  | — |  |  | (200 | ) |  | (270 | ) |  | (270 | )
Settlement/curtailment |  | 190 |  |  | — |  |  | — |  |  | (1,490 | ) |  | — |  |  | — |
Amortization of net (gain)/loss |  | 1,070 |  |  | 720 |  |  | 440 |  |  | (80 | ) |  | (90 | ) |  | (50 | )
Net periodic benefit expense (income) |  | $ | 1,760 |  |  | $ | 1,350 |  |  | $ | 1,040 |  |  | $ | (1,720 | ) |  | $ | (310 | ) |  | $ | (250 | )
The estimated net actuarial loss and prior service cost for the defined benefit pension and postretirement benefit plans that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2013 is $1.2 million. Actuarial valuations of the Company's defined benefit pension and postretirement plans were prepared as of December 31, 2012, 2011 and 2010. Weighted-average assumptions used in accounting for the U.S. defined benefit pension plans and postretirement benefit plans are as follows:
|  | Pension Benefit |  | Postretirement Benefit
|  | 2012 |  | 2011 |  | 2010 |  | 2012 |  | 2011 |  | 2010
Discount rate for obligations |  | 4.24 | % |  | 4.78 | % |  | 5.50 | % |  | 3.69 | % |  | 4.54 | % |  | 4.66 | %
Discount rate for benefit costs |  | 4.78 | % |  | 5.50 | % |  | 6.13 | % |  | 4.54 | % |  | 4.66 | % |  | 5.25 | %
Rate of increase in compensation levels |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |
Expected long-term rate of return on plan assets |  | 7.75 | % |  | 7.75 | % |  | 8.00 | % |  | N/A |  |  | N/A |  |  | N/A |
The Company utilizes a high-quality (Aa) corporate bond yield curve as the basis for its domestic discount rate for its pension and postretirement benefit plans. Management believes this yield curve removes the impact of including additional required corporate bond yields (potentially considered in the above-median curve) resulting from the uncertain economic climate that does not necessarily reflect the general trend in high-quality interest rates. Actuarial valuations of the Company's non-U.S. defined benefit pension plans were prepared as of December 31, 2012, 2011 and 2010. Weighted-average assumptions used in accounting for the non-U.S. defined benefit pension plans are as follows:
|  | Pension Benefit
|  | 2012 |  | 2011 |  | 2010
Discount rate for obligations |  | 4.50 | % |  | 4.80 | % |  | 5.50 | %
Discount rate for benefit costs |  | 4.80 | % |  | 5.50 | % |  | 5.90 | %
Rate of increase in compensation levels |  | 3.70 | % |  | 4.00 | % |  | 4.00 | %
Expected long-term rate of return on plan assets |  | 5.50 | % |  | 7.00 | % |  | 7.00 | %
The following provides a reconciliation of the changes in the Company's defined benefit pension and postretirement benefit plans' projected benefit obligations and fair value of assets for each of the years ended December 31, 2012 and 2011 and the funded status as of December 31, 2012 and 2011:
|  | Pension Benefit |  | Postretirement Benefit
|  | 2012 |  | 2011 |  | 2012 |  | 2011
|  | (dollars in thousands)
Changes in Projected Benefit Obligations |  |  |  |  |  |  |  |
Benefit obligations at January 1 |  | $ | (34,560 | ) |  | $ | (29,850 | ) |  | $ | (1,040 | ) |  | $ | (1,100 | )
Service cost |  | (600 | ) |  | (640 | ) |  | — |  |  | — |
Interest cost |  | (1,620 | ) |  | (1,590 | ) |  | (50 | ) |  | (50 | )
Participant contributions |  | (40 | ) |  | (40 | ) |  | (10 | ) |  | (20 | )
Actuarial gain (loss) |  | (2,900 | ) |  | (4,090 | ) |  | 80 |  |  | 90 |
Benefit payments |  | 1,890 |  |  | 1,550 |  |  | 50 |  |  | 40 |
Settlement/curtailment |  | (190 | ) |  | — |  |  | — |  |  | — |
Change in foreign currency |  | (710 | ) |  | 100 |  |  | — |  |  | — |
Projected benefit obligations at December 31 |  | (38,730 | ) |  | (34,560 | ) |  | (970 | ) |  | (1,040 | )
Changes in Plan Assets |  |  |  |  |  |  |  |
Fair value of plan assets at January 1 |  | $ | 21,280 |  |  | $ | 20,150 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets |  | 1,680 |  |  | 470 |  |  | — |  |  | — |
Employer contributions |  | 6,130 |  |  | 2,290 |  |  | 40 |  |  | 20 |
Participant contributions |  | 40 |  |  | 40 |  |  | 10 |  |  | 20 |
Benefit payments |  | (1,890 | ) |  | (1,550 | ) |  | (50 | ) |  | (40 | )
Change in foreign currency |  | 620 |  |  | (120 | ) |  | — |  |  | — |
Fair value of plan assets at December 31 |  | 27,860 |  |  | 21,280 |  |  | — |  |  | — |
Funded status at December 31 |  | $ | (10,870 | ) |  | $ | (13,280 | ) |  | $ | (970 | ) |  | $ | (1,040 | )
|  | Pension Benefit |  | Postretirement Benefit
|  | 2012 |  | 2011 |  | 2012 |  | 2011
|  | (dollars in thousands)
Amounts Recognized in Balance Sheet |  |  |  |  |  |  |  |
Prepaid benefit cost |  | $ | 1,020 |  |  | $ | 1,060 |  |  | $ | — |  |  | $ | — |
Current liabilities |  | (410 | ) |  | (390 | ) |  | (90 | ) |  | (110 | )
Noncurrent liabilities |  | (11,480 | ) |  | (13,940 | ) |  | (880 | ) |  | (930 | )
Net liability recognized at December 31 |  | $ | (10,870 | ) |  | $ | (13,270 | ) |  | $ | (970 | ) |  | $ | (1,040 | )
|  | Pension Benefit |  | Postretirement Benefit
|  | 2012 |  | 2011 |  | 2012 |  | 2011
|  | (dollars in thousands)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss) |  |  |  |  |  |  |  |
Unrecognized prior-service cost |  | $ | 130 |  |  | $ | 130 |  |  | $ | — |  |  | $ | (1,530 | )
Unrecognized net loss/(gain) |  | 19,430 |  |  | 17,280 |  |  | (570 | ) |  | (680 | )
Total accumulated other comprehensive income (loss) recognized at December 31 |  | $ | 19,560 |  |  | $ | 17,410 |  |  | $ | (570 | ) |  | $ | (2,210 | )
|  | Pension Benefit |  | Postretirement Benefit
|  | 2012 |  | 2011 |  | 2012 |  | 2011
|  | (dollars in thousands)
Accumulated benefit obligations at December 31 |  | $ | (36,320 | ) |  | $ | (32,320 | ) |  | $ | (970 | ) |  | $ | (1,040 | )
Plans with Benefit Obligation Exceeding Plan Assets |  |  |  |  |  |  |  |
Benefit obligation |  | $ | (37,660 | ) |  | $ | (33,470 | ) |  | $ | (970 | ) |  | $ | (1,040 | )
Plan assets |  | 25,770 |  |  | 19,140 |  |  | — |  |  | — |
Benefit obligation in excess of plan assets |  | $ | (11,890 | ) |  | $ | (14,330 | ) |  | $ | (970 | ) |  | $ | (1,040 | )
The assumptions regarding discount rates and expected return on plan assets can have a significant impact on amounts reported for benefit plans. A 25 basis point change in benefit obligation discount rates or 50 basis point change in expected return on plan assets would have the following affect:
|  | December 31, 2012 Benefit Obligation |  | 2012 Expense
|  | Pension |  | Postretirement Benefit |  | Pension |  | Postretirement Benefit
|  | (dollars in thousands)
Discount rate |  |  |  |  |  |  |  |
25 basis point increase |  | $ | (1,380 | ) |  | $ | (20 | ) |  | $ | (110 | ) |  | $ | — |
25 basis point decrease |  | $ | 1,450 |  |  | $ | 20 |  |  | $ | 110 |  |  | — |
Expected return on assets |  |  |  |  |  |  |  |
50 basis point increase |  | N/A |  |  | N/A |  |  | $ | (150 | ) |  | N/A |
50 basis point decrease |  | N/A |  |  | N/A |  |  | $ | 150 |  |  | N/A |
The Company expects to make contributions of approximately $3.0 million to fund its pension plans and $0.1 million to fund its postretirement benefit payments during 2013. Plan Assets The Company's overall investment goal is to provide for capital growth with a moderate level of volatility by investing assets in targeted allocation ranges. Specific long term investment goals include total investment return, diversity to reduce volatility and risk, and to achieve an asset allocation profile that reflects the general nature and sensitivity of the plans' liabilities. Investment goals are established after a comprehensive review of current and projected financial statement requirements, plan assets and liability structure, market returns and risks as well as special requirements of the plans. The Company reviews investment goals and actual results annually to determine whether stated objectives are still relevant and the continued feasibility of achieving the objectives. The actual weighted average asset allocation of the Company's domestic and foreign pension plans' assets at December 31, 2012 and 2011 and target allocations by class, were as follows:
|  | Domestic Pension |  | Foreign Pension
|  |  |  | Actual |  |  |  | Actual
|  | Target |  | 2012 |  | 2011 |  | Target |  | 2012 |  | 2011
Equity securities |  | 50%-70% |  |  | 61 | % |  | 57 | % |  | 40 | % |  | 30 | % |  | 35 | %
Fixed income securities |  | 30%-50% |  |  | 37 | % |  | 37 | % |  | 60 | % |  | 49 | % |  | 65 | %
Cash and cash equivalents |  | — |  |  | 2 | % |  | 6 | % |  | — |  |  | 21 | % |  | — | %
Total |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
Actual allocations to each asset vary from target allocations due to periodic investment strategy changes, market value fluctuations and the timing of benefit payments and contributions. The expected long-term rate of return for both the domestic and foreign plans' total assets is based on the expected return of each of the above categories, weighted based on the target allocation for each class. Actual allocation is reviewed regularly and rebalancing investments to their targeted allocation range is performed when deemed appropriate. During 2012, the Company made higher than expected contributions to one of its foreign defined benefit plans as part of a recovery plan to reduce the plan's net funding deficit. As of December 31, 2012, the Company had not yet completed its investment allocation strategy with respect to the incremental contributions, with the funds remaining in a cash account and causing a deviation from the targeted asset allocation. In managing the plan assets, the Company reviews and manages risk associated with the funded status risk, interest rate risk, market risk, liquidity risk and operational risk. Investment policies reflect the unique circumstances of the respective plans and include requirements designed to mitigate these risks by including quality and diversification standards. The following table summarizes the level under the fair value hierarchy (see Note 3) that the Company's pension plan assets are measured on a recurring basis as of December 31, 2012:
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Equity Securities |  |  |  |  |  |  |  |
Investment funds |  | $ | 11,740 |  |  | $ | 4,300 |  |  | $ | 7,440 |  |  | $ | — |
Fixed Income Securities |  |  |  |  |  |  |  |
Investment funds |  | 8,120 |  |  | — |  |  | 8,120 |  |  | — |
Government bonds |  | 2,400 |  |  | 2,400 |  |  | — |  |  | — |
Government agencies |  | 440 |  |  | 440 |  |  | — |  |  | — |
Corporate bonds |  | 1,040 |  |  | 1,040 |  |  | — |  |  | — |
Other(a) |  | 350 |  |  | 110 |  |  | 240 |  |  | — |
Cash and Cash Equivalents |  |  |  |  |  |  |  |
Short term investment funds |  | 3,770 |  |  | 150 |  |  | 3,620 |  |  | — |
Total |  | $ | 27,860 |  |  | $ | 8,440 |  |  | $ | 19,420 |  |  | $ | — |
________________________________________
(a) | Comprised of mortgage-backed and asset backed securities.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
|  | Pension Benefit |  | Postretirement Benefit
|  | (dollars in thousands)
December 31, 2013 |  | $ | 1,800 |  |  | $ | 90 |
December 31, 2014 |  | $ | 1,850 |  |  | $ | 90 |
December 31, 2015 |  | $ | 1,890 |  |  | $ | 80 |
December 31, 2016 |  | $ | 1,960 |  |  | $ | 80 |
December 31, 2017 |  | $ | 2,060 |  |  | $ | 60 |
Years 2018-2022 |  | $ | 11,630 |  |  | $ | 250 |
The assumed health care cost trend rate used for purposes of calculating the Company's postretirement benefit obligation in 2012 was 7.5% for both pre-65 and post-65 plan participants, decreasing to an ultimate rate in 2018 of 5.0%. A one-percentage point change in the assumed health care cost trend would have the following effects:
|  | One Percentage-Point Increase |  | One Percentage-Point Decrease
|  | (dollars in thousands)
Effect on total service and interest cost |  | $ | — |  |  | $ | — |
Effect on postretirement benefit obligation |  | $ | 70 |  |  | $ | (60 | )

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number FAS88 -Paragraph 63 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 518 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7, 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 8 -Subparagraph m -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 264 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 30 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-2 -Paragraph 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph h -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph q -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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