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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2012
EMPLOYEE BENEFIT PLANS [Abstract]  
EMPLOYEE BENEFIT PLANS
NOTE 10: EMPLOYEE BENEFIT PLANS

Employee Retirement Plan

Effective May 9, 1997, the Company adopted a Defined Contribution 401(k) and Profit Sharing Plan (the "401(k) Plan") for its United States and Canada employees. The 401(k) Plan covers all regular full-time and part-time employees who have completed three months of service and attained the age of twenty-one. United States employees can contribute up to 100 percent of their annual compensation but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code. The 401(k) plan permits matching and discretionary employer contributions. The Company's matching contributions for its United States and Canada employees vest ratably over a five-year period. During the years ended December 31, 2012 and 2011, the Company contributed approximately $0.1 million for each year to the 401(k) Plan for matching contributions.

The Company also sponsors a non-U.S. defined benefit plan covering its employees in its Japan subsidiary (the "Benefit Plan"). Pension benefits under the Benefit Plan are based on years of service and annual salary. On July 1, 2012, the Company amended the Benefit Plan to convert the years of service and annual salary components of the Benefit Plan to a point system for position grade and years of service. The Company deferred a prior service cost gain of $0.7 million and was reflected in the projected benefit obligation ("BPO") for the year ended December 31, 2012.  The Company utilizes actuarial methods. Inherent in the application of these actuarial methods are key assumptions, including, but not limited to, discount rates and expected long-term rates of return on plan assets. Changes in the related Benefit Plan costs may occur in the future due to changes in the underlying assumptions, changes in the number and composition of plan participants, and changes in the level of benefits provided. The Company uses a measurement date of December 31 to evaluate and record any post-retirement benefits related to the Benefit Plan.

 
Projected Benefit Obligation and Fair Value of Plan Assets

The Benefit Plan's projected benefit obligation and valuation of plan assets were as follows for the years ended December 31 (in thousands):
 
Projected benefit obligation:
 2012  2011 
Balance, beginning of year
 
$
1,270
   
$
1,008
 
Service cost
   
169
     
186
 
Interest cost
   
15
     
18
 
Liability (gains) and losses
   
94
     
11
 
Benefits paid to participants
   
(71
)
   
(39
)
Special termination benefit
   
7
     
21
 
Prior service cost
   
(678
)
   
—
 
Pension adjustment
   
—
     
6
 
Foreign currency
   
(92
)
   
59
 
Balance, end of year
 
$
714
   
$
1,270
 
                 
Plan assets:
               
Fair value, beginning of year
 
$
—
   
$
—
 
Company contributions
   
71
     
39
 
Benefits paid to participants
   
(71
)
   
(39
)
Fair value, end of year
 
$
—
   
$
—
 
 
Funded status of the Benefit Plan as of December 31 (in thousands):
 
2012
  
2011
 
Benefit obligation
 $(714) $(1,270)
Fair value of plan assets
  —   — 
Excess of benefit obligation over fair value of plan assets
 $(714) $(1,270)
 
Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands):
 
2012
  
2011
 
Accrued benefit liability
 $(714) $(1,270)
Transition obligation and unrealized gain
  (682 )  (190 
Net amount recognized in the consolidated balance sheets
 $(1,396) $(1,460)
 
  Years Ended December 31, 
Other changes recognized in comprehensive income/loss (in thousands):
 2012  2011 
Net periodic cost
 
$
158
   
$
221
 
Current year actuarial (gain) loss
   
94
     
11
 
Amortization of transition obligation
   
(5
)
   
(5
)
Amortization of actuarial gain
   
—
     
15
 
Total recognized in other comprehensive income
   
89
     
21
 
Total recognized in comprehensive income (loss)
 
$
247
   
$
242
 
 
   
As of December 31,
 
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive gain/loss (in thousands):
 
2012
  
2011
 
Transition obligation
 $168  $202 
Prior service cost
  602   — 
Net actuarial gain
  (88 )  (12)
Total recognized in accumulated other comprehensive loss
 $682  $190 
 
2013 estimated amounts of amortized transition obligation (in thousands):
 
2013
 
Transition obligation
 
$
(5
)
 
   
As of December 31,
 
Aggregate Benefit Plan information and accumulated benefit obligation in excess of plan assets (in thousands):
 
2012
   
2011
 
Projected benefit obligation
 
$
714
   
$
1,270
 
Accumulated benefit obligation
   
714
     
887
 
Fair value of plan assets
   
—
     
—
 
 
The weighted-average assumptions to determine the benefit obligation and net cost are as follows:

   
2012
  
2011
 
Discount rate
  1.00 %  1.75 %
Rate of increase in compensation levels
  —   3.0 %

Components of Expense

Pension expense for the Benefit Plan is included in selling, general and administrative expenses in the Consolidated Statements of Operations and is comprised of the following for the years ended December 31 (in thousands):
 
  2012  2011 
Service cost
 $169  $186 
Interest cost
  15   18 
Amortization of transition obligation
  5   5 
Gain
  (9 )  (15 )
Special termination
  7   21 
Prior service cost
  (29 )  — 
Benefit adjustment
  —   6 
Total pension expense
 $158  $221 

Estimated Benefits and Contributions

The Company expects to contribute approximately $61,000 to the Benefit Plan in 2013. As of December 31, 2012, benefits expected to be paid by the Benefit Plan for the next ten years is approximately as follows (in thousands):

2013
 $61 
2014
  81 
2015
  130 
2016
  41 
2017
  35 
Next five years
  124 
Total expected benefits to be paid
 $472