Pensions and Other Employee Benefit Plans

9 Months Ended

Sep. 30, 2012

Pensions and Other Employee Benefit Plans

16. Pensions and Other Employee Benefit Plans

The following table provides the components of net periodic cost for our qualified and supplemental retirement plans (the “Pension Benefits”) and health care and life insurance benefits for retired employees and dependents (the “Other Benefits”) for the three and nine months ended September 30, 2012 and 2011 (in thousands):

	Pension Benefits Three Months Ended September 30,						Other Benefits Three Months Ended September 30,
	2012			2011			2012			2011
Service cost	$	3,640		$	3,048		$	152		$	181
Interest cost		6,366			6,327			763			837
Expected return on plan assets		(6,243	)		(5,813	)		—			(4	)
Amortization of net actuarial loss or (gain)		2,967			1,390			(94	)		(197	)
Amortization of prior service credits		(679	)		(679	)		(182	)		(182	)
Net periodic cost		6,051			4,273			639			635
Net periodic cost included in income from discontinued operations		(5,420	)		(3,759	)		(630	)		(643	)
Net periodic cost included in income from continuing operations	$	631		$	514		$	9		$	(8	)

	Pension Benefits Nine Months Ended September 30,						Other Benefits Nine Months Ended September 30,
	2012			2011			2012			2011
Service cost	$	10,919		$	9,144		$	456		$	543
Interest cost		19,098			18,981			2,289			2,511
Expected return on plan assets		(18,729	)		(17,439	)		—			(12	)
Amortization of net actuarial loss or (gain)		8,902			4,170			(282	)		(591	)
Amortization of prior service credits		(2,038	)		(2,037	)		(546	)		(546	)
Net periodic cost		18,152			12,819			1,917			1,905
Net periodic cost included in income from discontinued operations		(16,259	)		(11,276	)		(1,890	)		(1,929	)
Net periodic cost included in income from continuing operations	$	1,893		$	1,543		$	27		$	(24	)

Net periodic cost included in income from continuing operations for the three and nine months ended September 30, 2012 and 2011 represents the cost of pension and other benefits for the active and retired employees of Loral’s Corporate headquarters and Loral’s Skynet subsidiary which was contributed to Telesat in 2007 (see Note 10).