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Retirement Benefit Plans
 12 Months Ended
Dec. 31, 2011
Retirement Benefit Plans [Abstract]  
Retirement Benefit Plans
11.  
Retirement Benefit Plans
 
Substantially all U.S. employees are covered by various retirement benefit plans, including defined benefit pension plans, post-retirement medical plans and defined contribution savings plans. Retirement benefits for eligible employees in foreign locations are funded principally through defined benefit plans, annuity or government programs. The total cost of benefits for our plans was $11,131, $11,231 and $10,101 in 2011, 2010 and 2009, respectively.
 
We have a qualified, funded defined benefit retirement plan (the “U.S. Pension Plan”) in the U.S. covering certain current and retired employees. Plan benefits are based on the years of service and compensation during the highest five consecutive years of service in the final ten years of employment. No new participants have entered the plan since 2000. The plan has approximately 450 participants including 114 active employees as of December 31, 2011.
 
We have a U.S. postretirement medical benefit plan (the “U.S. Retiree Plan”) to provide certain healthcare benefits for U.S. employees hired before January 1, 1999. Eligibility for those benefits is based upon a combination of years of service with Tennant and age upon retirement.
 
Our defined contribution savings plan (“401(k)”) covers substantially all U.S. employees. Under this plan, we match up to 3% of the employee's compensation in stock or cash to be invested per their election. Historically, matching contributions have been primarily funded by our ESOP Plan. However, as of December 31, 2009, all shares have been allocated. Additional disclosures about the ESOP Plan can be found in Note 16 of the Consolidated Financial Statements. Starting in 2010, the matching contributions to the 401(k) are funded primarily with cash. We also make a profit sharing contribution to the 401(k) plan for employees with more than one year of service in accordance with our Profit Sharing Plan. This contribution is based upon our financial performance and can be funded in the form of Tennant stock, cash or a combination of both. Expenses for the 401(k) plan were $6,864, $7,073 and $6,676 during 2011, 2010 and 2009, respectively.
 
We have a U.S. nonqualified supplemental benefit plan (the “U.S. Nonqualified Plan”) to provide additional retirement benefits for certain employees whose benefits under our 401(k) plan or U.S. Pension Plan are limited by either the Employee Retirement Income Security Act or the Internal Revenue Code.
 
We also have defined pension benefit plans in the United Kingdom and Germany (the “U.K. Pension Plan” and the “German Pension Plan”). The U.K. Pension Plan and German Pension Plan cover certain current and retired employees and both plans are closed to new participants.
 
On March 23, 2010, the Patient Protection and Affordable Care Act (the “PPACA”) was signed into law, and, on March 30, 2010, the Health Care and Education Reconciliation Act of 2010 (the “HCERA” and, together with PPACA, the “Acts”), which makes various amendments to certain aspects of the PPACA, was signed into law. The Acts effectively change the tax treatment of federal subsidies paid to sponsors of retiree health benefit plans that provide prescription drug benefits that are at least actuarially equivalent to the corresponding benefits provided under Medicare Part D. Under the Acts, an employer's income tax deduction for the costs of providing Medicare Part D-equivalent prescription drug benefits to retirees will be reduced by the amount of the federal subsidy beginning in 2013. Under U.S. GAAP, any impact from a change in tax law must be recognized in earnings in the period enacted regardless of the effective date. The Acts did not have a material impact on our financial position or results of operations.
 
We expect to contribute approximately $1,742 to our U.S. Pension Plan, $129 to our U.S. Nonqualified Plan, $841 to our U.S. Retiree Plan, $214 to our U.K. Pension Plan and $38 to our German Pension Plan in 2012.
 
Weighted-average asset allocations by asset category of the U.S. and U.K. Pension Plans as of December 31, 2011 are as follows:

Asset Category
 
Total
  
Quoted Prices in Active Markets for Identical Assets
(Level 1)
  
Significant Observable Inputs
(Level 2)
  
Significant Unobservable Inputs
(Level 3)
 
Cash and Cash Equivalents
 $533  $533  $-  $- 
Equity Securities:
                
U.S. Small-Cap (1)
  445   445   -   - 
U.S. Mid-Cap (1)
  2,761   2,761   -   - 
U.S. Large-Cap (1)
  179   179   -   - 
International Small-Cap (2)
  116   116   -   - 
Mutual Funds:
                
Corporate Bonds
  11,557   11,557   -   - 
U.S. Large-Cap (3)
  12,646   12,646   -   - 
Investment Account held by Pension Plan (4)
  7,738   -   7,738   - 
Total
 $35,975  $28,237  $7,738  $- 
 
(1)  
This category is comprised of actively managed domestic common stocks.
 
(2)  
This category is comprised of actively managed international common stocks.
 
(3)  
This category is comprised of funds not actively managed that track the S&P 500.
 
(4)  
This category is comprised of foreign and domestic equities and foreign and domestic fixed interest assets.
 
The primary objective of our U.S. and U.K. Pension Plans is to meet retirement income commitments to plan participants at a reasonable cost to Tennant and to maintain a sound actuarially funded status. This objective is accomplished through growth of capital and safety of funds invested. The pension plan assets are invested in securities to achieve growth of capital over inflation through appreciation and accumulation and reinvestment of dividend and interest income. Investments are diversified to control risk. The overall return objective is to achieve an annualized return equal to or greater than the return expectations in the actuarial valuation. The target allocation for the U.S. Pension Plan is 60% equity and 40% debt securities. Equity securities within the U.S. Pension Plan do not include any investments in Tennant Company Common Stock. The U.K. Pension Plan is invested in an insurance contract with underlying investments primarily in equity and fixed income securities. Our German Pension Plan is unfunded, which is customary in that country.
 
Weighted-average assumptions used to determine benefit obligations as of December 31 are as follows:

   
U.S. Pension Benefits
  
Non-U.S.
Pension Benefits
  
Postretirement
Medical Benefits
 
   
2011
  
2010
  
2011
  
2010
  
2011
  
2010
 
Discount rate
  4.39%  5.39%  4.94%  5.39%  4.20%  5.00%
Rate of compensation increase
  3.00%  3.00%  4.60%  5.10%  -   - 
 
Weighted-average assumptions used to determine net periodic benefit costs as of December 31 are as follows:

   
U.S. Pension Benefits
  
Non-U.S.
Pension Benefits
  
Postretirement
Medical Benefits
 
   
2011
  
2010
  
2009
  
2011
  
2010
  
2009
  
2011
  
2010
  
2009
 
Discount rate
  5.39%  5.88%  6.90%  5.39%  5.69%  6.16%  5.00%  5.60%  6.90%
Expected long-term rate of return on plan assets
  7.70%  7.70%  8.75%  5.20%  5.50%  4.90%  -   -   - 
Rate of compensation increase
  3.00%  3.00%  4.00%  5.10%  5.10%  4.50%  -   -   - 
 
The discount rate is used to discount future benefit obligations back to today's dollars. Our discount rates were determined based on high-quality fixed income investments. The resulting discount rates are consistent with the duration of plan liabilities. The Citigroup Above Median Yield Curve is used in determining the discount rate for the U.S. Plans.
 
The accumulated benefit obligations as of December 31, for all defined benefit plans are as follows:

   
2011
  
2010
 
U.S. Pension Plans
 $42,909  $37,472 
U.K. Pension Plan
  7,858   7,498 
German Pension Plan
  652   676 
 
Information for our plans with an accumulated benefit obligation in excess of plan assets as of December 31, is as follows:

   
U.S. Pension Plans
  
Non-U.S. Plans
 
   
2011
  
2010
  
2011
  
2010
 
Projected benefit obligation
 $44,280  $38,885  $8,775  $8,394 
Accumulated benefit obligation
  42,909   37,472   8,510   8,174 
Fair value of plan assets
  28,237   29,483   7,738   6,917 
 
As of December 31, 2011 and 2010, the U.S. Pension Plan, the U.S. Nonqualified, U.K. Pension and German Pension Plans had an accumulated benefit obligation in excess of plan assets.
 
Assumed healthcare cost trend rates as of December 31, are as follows:

   
2011
  
2010
 
Healthcare cost trend rate assumption for the next year
  10.14%  11.25%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
  5.00%  5.00%
Year that the rate reaches the ultimate trend rate
  2031   2031 
 
Assumed healthcare cost trend rates have a significant effect on the amounts reported for healthcare plans. To illustrate, a one-percentage-point change in assumed healthcare cost trends would have the following effects:
 
   
1-Percentage-
  
1-Percentage-
 
   
Point
  
Point
 
   
Decrease
  
Increase
 
Effect on total of service and interest cost components
 $(65) $75 
Effect on postretirement benefit obligation
 $(1,121) $1,288 
 
Summaries related to changes in benefit obligations and plan assets and to the funded status of our defined benefit and postretirement medical benefit plans are as follows:
 
   
U.S. Pension Benefits
  
Non-U.S.
Pension Benefits
  
Postretirement
Medical Benefits
 
   
2011
  
2010
  
2011
  
2010
  
2011
  
2010
 
Change in benefit obligation:
                  
Benefit obligation at beginning of year
 $38,885  $36,034  $8,394  $7,994  $13,423  $14,323 
Service cost
  651   657   133   117   132   121 
Interest cost
  2,013   2,032   465   434   612   681 
Plan participants' contributions
  -   -   24   25   -   - 
Plan amendments
  233   -   -   -   -   - 
Actuarial loss (gain)
  4,216   1,842   40   250   72   (892)
Foreign exchange
  -   -   (63)  (294)  -   - 
Benefits paid
  (1,718)  (1,680)  (218)  (132)  (531)  (810)
Benefit obligation at end of year
 $44,280  $38,885  $8,775  $8,394  $13,708  $13,423 
Change in fair value of plan assets and net accrued liabilities:
 
Fair value of plan assets at beginning of year
 $29,483  $27,438  $6,917  $6,451  $-  $- 
Actual return on plan assets
  357   3,610   715   454   -   - 
Employer contributions
  115   115   352   338   531   810 
Plan participants' contributions
  -   -   24   25   -   - 
Foreign exchange
  -   -   (52)  (219)  -   - 
Benefits paid
  (1,718)  (1,680)  (218)  (132)  (531)  (810)
Fair value of plan assets at end of year
  28,237   29,483   7,738   6,917   -   - 
Funded status at end of year
 $(16,043) $(9,402) $(1,037) $(1,477) $(13,708) $(13,423)
Amounts recognized in the consolidated balance sheets consist of:
 
Current liabilities
 $(129) $(131) $(38) $(38) $(841) $(855)
Noncurrent liabilities
  (15,914)  (9,271)  (999)  (1,439)  (12,867)  (12,568)
Net accrued liability
 $(16,043) $(9,402) $(1,037) $(1,477) $(13,708) $(13,423)
Amounts recognized in accumulated other comprehensive income (loss) consist of:
 
Prior service cost
 $606  $923  $-  $-  $(689) $(1,268)
Net actuarial loss
  12,488   6,331   2,000   302   1,921   1,849 
Accumulated other comprehensive income
 $13,094  $7,254  $2,000  $302  $1,232  $581 
 
The components of the net periodic benefit cost for the three years ended December 31, were as follows:

   
U.S. Pension Benefits
  
Non-U.S.
Pension Benefits
  
Postretirement
Medical Benefits
 
   
2011
  
2010
  
2009
  
2011
  
2010
  
2009
  
2011
  
2010
  
2009
 
Service cost
 $651  $657  $648  $133  $117  $97  $132  $121  $141 
Interest cost
  2,013   2,032   2,116   465   434   406   612   681   854 
Expected return on plan assets
  (2,325)  (2,340)  (2,767)  (376)  (346)  (276)  -   -   - 
Amortization of net actuarial loss (gain)
  27   22   (151)  -   -   -   -   -   - 
Amortization of transition (asset) obligation
  -   -   (20)  -   -   -   -   -   - 
Amortization of prior service cost
  550   554   555   -   -   -   (580)  (579)  (580)
Foreign currency
  -   -   -   (18)  (65)  61   -   -   - 
Net periodic benefit cost
 $916  $925  $381  $204  $140  $288  $164  $223  $415 
 
The changes in accumulated other comprehensive income for the three years ended December 31, were as follows:
 
   
U.S. Pension Benefits
  
Non-U.S.
Pension Benefits
  
Postretirement
Medical Benefits
 
   
2011
  
2010
  
2009
  
2011
  
2010
  
2009
  
2011
  
2010
  
2009
 
Prior service cost
 $233  $-  $-  $-  $-  $-  $-  $-  $- 
Net actuarial loss (gain)
  6,184   573   387   (300)  143   502   72   (892)  1,823 
Amortization of prior service cost
  (550)  (554)  (555)  -   -   -   580   580   580 
Amortization of prior transition asset
  -   -   20   -   -   -   -   -   - 
Amortization of net actuarial (loss) gain
  (27)  (22)  151   -   -   -   -   -   - 
Total recognized in other comprehensive income
 $5,840  $(3) $3  $(300) $143  $502  $652  $(312) $2,403 
Total recognized in net periodic benefit cost
                                 
and other comprehensive income
 $6,756  $922  $384  $(96) $283  $790  $816  $(89) $2,818 
 
The following benefit payments, which reflect expected future service, are expected to be paid for our U.S. and Non-U.S. plans:

   
U.S. Pension Benefits
  
Non-U.S.
Pension Benefits
  
Postretirement
Medical Benefits
 
2012
 $1,659  $178  $841 
2013
  1,846   183   914 
2014
  2,088   187   1,012 
2015
  2,368   192   1,096 
2016
  2,541   196   1,166 
2017 to 2021
  14,423   1,059   5,888 
Total
 $24,925  $1,995  $10,917 
 
The following amounts are included in accumulated other comprehensive income as of December 31, 2011 and are expected to be recognized as components of net periodic benefit cost during 2012:

      
Postretirement
 
   
Pension
  
Medical
 
   
Benefits
  
Benefits
 
Net loss
 $1,030  $67 
Net prior service cost (credit)
  388   (580)