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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2011
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
8) Employee Benefit Plans

We have defined contribution 401(k) profit sharing plans covering substantially all U.S. employees. All employees are eligible for the plans on the first day of the month following their employment date. A participant may elect to contribute between 1% and 60% of their compensation to the plans, subject to Internal Revenue Service (“IRS”) dollar limitations. Participants age 50 and older may defer an additional amount up to the applicable IRS Catch Up Provision Limit. We provide a matching contribution which is determined on an individual, participating company basis. Currently, the matching contribution for U.S. employees of the Metal Bearing Components Segment is the greater of five hundred dollars or 50% of the first 4% of compensation contributed. The matching contributions for the Plastic and Rubber Components Segment locations are 25% of the first 6% of compensation contributed for the Lubbock Plant and 50% of the first 6% of compensation contributed for the Danielson Plant. The matching contribution for Precision Metal Components Segment employees is 25% of the first 5% of compensation contributed. All participant contributions are immediately vested at 100%. Contributions for the Metal Bearing Components Segment were $144, $117, and $112 in 2011, 2010, and 2009, respectively. Contributions for the Plastic and Rubber Components Segment were $94, $90, and $78 in 2011, 2010 and 2009, respectively. Contributions for the Precision Metal Components Segment employees were $96, $75, and $12 in 2011, 2010 and 2009, respectively.

Prior to January 20, 2011, we had a defined benefit pension plan covering our Eltmann Plant. The benefits were based on the expected years of service. The plan was unfunded. Effective January 20, 2011, the defined benefit pension plan covering the employees at our Eltmann Plant is under control of the bankruptcy trustee and has been or will be taken over by the German government’s pension security fund. The plan is no longer a responsibility of NN, resulting in a reduction of accrued pension liabilities of $5,623 on January 20, 2011. We have no remaining pension obligations under this plan. (See Note 1 of the Notes to Consolidated Financial Statements).

 

Following is a summary of the funded status and changes in the projected benefit obligation for the Eltmann defined benefit pension plan as of and during the years ended December 31, 2010 and 2009:

 

         
    2010  

Reconciliation of Funded Status:

        

Benefit obligation

   $ (5,574 ) 

Fair value of plan assets

     —    
   

 

 

  

Funded status

   $ (5,574 ) 
   

 

 

  

Net amount recognized under accrued pension

   $ (5,574 ) 
   

 

 

  

 

         

Items not yet recognized as a component of net periodic pension cost:

        

Unrecognized net actuarial loss

   $ 546  
   

 

 

  

 

         
    2010  

Change in projected benefit obligation:

        

Benefit obligation at beginning of year

   $ 5,488  

Interest cost

     262  

Benefits paid

     (174 ) 

Effect of currency translation

     (394 ) 

Actuarial loss

     392  
   

 

 

  

Benefit obligation at December 31

   $ 5,574  
   

 

 

  

 

     
    2010

Weighted-average assumptions as of December 31:

    

Discount rate

   4.75%

Rate of compensation increase

   0% - 1.5%

Measurement date

   12/31/10

 

                 
    2010     2009  

Components of net periodic benefit cost:

                

Interest cost on projected benefit obligation

   $ 262     $ 276  

Amortization of net loss

     —         —    
   

 

 

    

 

 

  

Net periodic pension benefit cost

   $ 262     $ 276  
   

 

 

    

 

 

  

 

                 
    2010     2009  

Amounts Recognized in Accumulated Other Comprehensive Income:

                

Period actuarial loss

   $ 392     $ 315  
   

 

 

    

 

 

  

Net periodic pension cost

   $ 392     $ 315  
   

 

 

    

 

 

  

 

Severance Indemnity

In accordance with Italian law, the Company has an unfunded severance plan under which all Italian employees are entitled to receive severance indemnities (Trattamento di Fine Rapporto or “TFR”) upon termination of their employment.

Effective January 1, 2007, the amount payable based on salary paid is remitted to a pension fund managed by a third party. The severance indemnities paid to the pension fund accrue approximately at the rate of 1/13.5 of the gross salaries paid during the year. The amounts accrued become payable upon termination of the individual employee, for any reason, e.g., retirement, dismissal or reduction in work force. Employees are fully vested in TFR benefits after their first year of service. The amounts shown in the table below represent the actual liability at December 31, 2011 and 2010 reported under accrued pension in the Consolidated Balance Sheets.

 

                 
    2011     2010  

Beginning balance

   $ (7,115 )    $ (8,015 ) 

Amounts accrued

     (1,189 )      (899 ) 

Payments to employees

     318       583  

Payments to government managed plan

     835       636  

Foreign currency impacts

     229       580  
   

 

 

    

 

 

  

Ending balance

   $ (6,922 )    $ (7,115 ) 
   

 

 

    

 

 

  

Service and Early Retirement Provisions

We have two plans that cover our Veenendaal Plant employees. One provides an award for employees who achieve 25 or 40 years of service and the other is an award for employees upon retirement. These plans are both unfunded and the benefits are based on years of service and rate of compensation at the time the award is paid. The table below summarizes the changes in the two plans combined for the years ended December 31, 2011 and 2010.

 

                 
    2011     2010  

Beginning balance

   $ (749 )    $ (805 ) 

Service cost

     (52 )      (72 ) 

Interest cost

     (38 )      (18 ) 

Benefits paid

     80       87  

Foreign currency impacts

     (24 )      59  
   

 

 

    

 

 

  

Ending balance

   $ (783 )    $ (749 )