Defined Benefit Plans

9 Months Ended

Sep. 30, 2011

Defined Benefit Plans

(18) Defined Benefit Plans

Employees around the world participate in various local pension and other defined benefit plans. These plans provide benefits that are generally based on years of credited service and a percentage of the employee’s eligible compensation, either earned throughout that service or during the final years of employment. Some smaller plans also provide long-service payments.

Global Defined Benefit Pension Plans

The following table provides a summary of the changes in the Company’s plans’ benefit obligations, assets and funded status during fiscal years 2010 and 2009, and the amounts recognized in the consolidated balance sheets, in respect of those countries where the pension liabilities exceeded a certain threshold (approximately $5,000).

	Fiscal Year Ended
	December 31, 2010									December 31, 2009
	North America Plans			Japan Plans			Rest of World Plans			North America Plans			Japan Plans			Rest of World Plans
Change in benefit obligations:
Benefit obligation at beginning of period	$	198,243		$	72,686		$	491,052		$	198,939		$	78,445		$	446,443
Service cost		2,026			263			10,172			1,589			1,288			11,266
Interest cost		10,515			1,438			21,758			11,797			1,278			21,712
Plan participant contributions		422			—			3,154			356			—			3,674
Actuarial (gain) loss		7,752			1,150			(1,193	)		8,555			1,165			26,624
Benefits paid		(22,018	)		(5,511	)		(15,717	)		(18,740	)		(7,653	)		(16,199	)
(Gain) loss due to exchange rate movements		2,816			9,698			(7,065	)		6,793			(1,710	)		20,694
Plan amendments		—			—			—			(11,046	)		(45	)		(1,668	)
Curtailments, settlements andspecial termination benefits		—			(3	)		(7,792	)		—			(82	)		(21,494	)
Benefit obligation at end of period	$	199,756		$	79,721		$	494,369		$	198,243		$	72,686		$	491,052
Change in plan assets:
Fair value of plan assets at beginning of period	$	175,026		$	27,209		$	397,708		$	157,978		$	28,745		$	319,232
Actual return on plan assets		23,597			316			35,821			27,354			1,267			36,175
Employer contribution		4,701			5,360			27,726			2,559			5,470			36,590
Plan participant contributions		422			—			3,154			356			—			3,674
Benefits paid		(22,018	)		(5,511	)		(15,717	)		(18,740	)		(7,653	)		(16,199	)
Gain (loss) due to exchange rate movements		2,218			3,718			(4,285	)		5,519			(620	)		18,236
Fair value of plan assets at end of period	$	183,946		$	31,092		$	444,407		$	175,026		$	27,209		$	397,708
Net amount recognized:
Funded status	$	(15,810	)	$	(48,629	)	$	(49,962	)	$	(23,216	)	$	(45,477	)	$	(93,344	)
Net amount recognized in consolidated balance sheets consists of:
Noncurrent asset	$	730		$	—		$	39,557		$	—		$	—		$	21,832
Current liability		(295	)		—			(2,699	)		(420	)		—			(2,925	)
Noncurrent liability		(16,245	)		(48,629	)		(86,820	)		(22,796	)		(45,477	)		(112,251	)
Net amount recognized	$	(15,810	)	$	(48,629	)	$	(49,962	)	$	(23,216	)	$	(45,477	)	$	(93,344	)
Amounts recognized in accumulated other comprehensive income consist of:
Net actuarial (gain) loss	$	60,052		$	32,054		$	46,047		$	71,081		$	29,331		$	44,869
Prior service (credit) cost		(10,164	)		(38	)		(20,840	)		(11,046	)		(37	)		(10,901	)
Transition obligation		—			141			757			—			159			1,261
Total	$	49,888		$	32,157		$	25,964		$	60,035		$	29,453		$	35,229

Weighted average assumptions used to determine the benefit obligations at end of year were as follows:

	Fiscal Year Ended
	December 31, 2010									December 31, 2009
	North America Plans			Japan Plans			Rest of World Plans			North America Plans			Japan Plans			Rest of World Plans
Weighted-average discount rate		5.44	%		1.68	%		4.67	%		5.75	%		1.96	%		4.72	%
Weighted-average rate of in crease in future compensation levels		N/A			Scale			2.60	%		4.24	%		Scale			2.73	%
Weighted-average inflation rate		N/A			0.50	%		2.20	%		2.50	%		0.50	%		2.19	%

Adoption of ASC Topic 715

The Company adopted measurement date provisions of ASC Topic 715 at the beginning of fiscal year 2008, resulting in an increase in pension liabilities of $4,534, of which, $973 was recorded as part of retained earnings and $3,561 was recorded as part of accumulated other comprehensive income.

Curtailments, Settlements and Special Termination Benefits

During fiscal 2010, the Company recognized a net curtailment and settlement gain of $11,442 related primarily to the announced freezing of its pension plan in The Netherlands. The company recorded this gain in selling, general, and administrative expenses in the consolidated statements of operations.

During fiscal 2010, the Company recognized a settlement of defined benefits to former U.S. employees resulting in a related loss of $5,771. The Company recorded $2,858 of this loss as a component of discontinued operations, and $2,913 in selling, general and administrative expenses in the consolidated statements of operations.

During fiscal 2010, the Company recognized a curtailment and settlement of defined benefits to former Japan employees, resulting in a related loss of $754. The Company recorded this loss in selling, general and administrative expenses in the consolidated statements of operations.

During fiscal 2010, in connection with restructuring activities and changes in defined benefit plans in Austria, France, Ireland, Italy, Switzerland and Turkey, the Company recognized net curtailment and settlement gains of $997. The Company recorded the gain in selling, general and administrative expenses in the consolidated statements of operations.

During fiscal year 2009, the Company recognized a settlement of defined benefits to former U.S. employees resulting in a related loss of $4,236. The Company recorded $1,863 of this loss as a component of discontinued operations, and $2,373 in selling, general and administrative expenses in the consolidated statements of operations.

During fiscal year 2009, in association with restructuring activities, the Company recognized special termination losses of $1,020 related to SERA pension benefits in the United Kingdom. The Company recorded this loss in selling, general and administrative expenses in the consolidated statements of operations.

During fiscal year 2009, the Company recognized a curtailment and settlement of defined benefits to former Japan employees, resulting in a related loss of $1,825. The Company recorded this loss in selling, general and administrative expenses in the consolidated statements of operations.

During fiscal year 2009, in connection with restructuring activities and changes in defined benefit plans in Austria, Germany, Ireland, Italy and Turkey, the Company recognized net curtailment and settlement gains of $4,199. The Company recorded the gain in selling, general and administrative expenses in the consolidated statements of operations.

The projected benefit obligation and fair value of plan assets for pension plans with a projected benefit obligation in excess of plan assets at December 31, 2010 were as follows:

	December 31, 2010						December 31, 2009
	North America Plans		Japan Plans		Rest of World Plans		North America Plans		Japan Plans		Rest of World Plans
Projected benefit obligation	$	64,851	$	79,721	$	360,488	$	198,243	$	72,686	$	376,723
Fair value of plan assets		48,310		31,092		270,969		175,026		27,209		261,547

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with an accumulated benefit obligation in excess of plan assets at December 31, 2010 and December 31, 2009 were as follows:

	December 31, 2010						December 31, 2009
	North America Plans		Japan Plans		Rest of World Plans		North America Plans		Japan Plans		Rest of World Plans
Projected benefit obligation	$	64,851	$	79,721	$	257,997	$	198,243	$	72,686	$	282,854
Accumulated benefit obligation		59,016		79,167		239,055		189,201		72,576		263,126
Fair value of plan assets		48,310		31,092		169,505		175,026		27,209		180,400

The components of net periodic benefit cost for the fiscal years ended December 31, 2010, December 31, 2009 and December 31, 2008, respectively, were as follows:

	Fiscal Year Ended
	December 31, 2010									December 31, 2009									December 28, 2008
	North America Plans			Japan Plans			Rest of World Plans			North America Plans			Japan Plans			Rest of World Plans			North America Plans			Japan Plans			Rest of World Plans
Service cost	$	2,027		$	263		$	10,172		$	1,589		$	1,288		$	11,266		$	9,378		$	1,240		$	14,798
Interest cost		10,515			1,438			21,758			11,797			1,278			21,712			13,743			1,457			24,237
Expected return on plan assets		(12,918	)		(984	)		(23,606	)		(12,271	)		(915	)		(21,243	)		(16,326	)		(1,035	)		(26,056	)
Amortization of net loss		3,081			2,248			2,687			3,447			2,412			2,962			2,795			1,878			(1,034	)
Amortization of transition obligation		—			31			169			—			31			202			—			30			213
Amortization of prior service (credit) cost		(882	)		(3	)		(2,434	)		—			5			(962	)		(14	)		5			(967	)
Curtailments, settlements and special termination benefits		5,771			754			(12,439	)		4,236			1,825			(3,179	)		481			3,010			648
Net periodic pension (credit) cost	$	7,594		$	3,747		$	(3,693	)	$	8,798		$	5,924		$	10,758		$	10,057		$	6,585		$	11,839

Weighted average assumptions used to determine net periodic costs were as follows:

	Fiscal Year Ended
	December 31, 2010									December 31, 2009									December 31, 2008
	North America Plans			Japan Plans			Rest of World Plans			North America Plans			Japan Plans			Rest of World Plans			North America Plans			Japan Plans			Rest of World Plans
Weighted-average discount rate		5.75	%		1.96	%		4.72	%		6.18	%		1.75	%		4.76	%		6.01	%		2.05	%		4.95	%
Weighted-average rate of increase in future compensation levels		4.24	%		scale			2.73	%		4.32	%		N/A			2.54	%		4.25	%		2.05	%		2.84	%
Weighted-average expected long-term rate of return on plan assets		7.83	%		3.36	%		6.16	%		7.90	%		3.19	%		6.39	%		7.90	%		3.62	%		6.45	%

The amortization of any prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plan.

The amounts in accumulated other comprehensive income as of December 31, 2010, that are expected to be recognized as components of net periodic benefit cost during the next fiscal year, are as follows:

	North America Plans			Japan Plans			Rest of World Plans
Actuarial loss	$	2,708		$	2,036		$	1,058
Prior service (credit)		(882	)		(3	)		(1,673	)
Transition obligation		—			33			150

Expected pension benefit disbursements for each of the next five years and the five succeeding years are as follows:

	North America Plans		Japan Plans		Rest of World Plans
Year
2011	$	17,635	$	5,271	$	16,683
2012		11,314		4,881		18,446
2013		11,930		5,275		21,662
2014		12,441		4,260		18,184
2015		12,624		5,254		19,765
Next five years thereafter		69,175		24,362		108,498

Defined Benefit Pension Plan Investments

Overall Investment Strategy

The Company’s overall investment strategy is to hold 1-2% of plan assets in cash to maintain liquidity to meet near-term benefit payments and invest the remaining 98% in a wide diversification of asset types, fund strategies and fund managers. The target allocations for invested plan assets are 40% equity securities, 50% fixed income securities, and 10% real estate/other types of investments. Equity securities are diversified across investment manager styles and objectives (i.e. value, growth) including investments in companies with both small to large capitalizations primarily located in the United States, Canada and Europe. Fixed income securities include readily marketable government issues and agency obligations, marketable corporate bonds and mortgage, asset, and government backed securities and guaranteed insurance contracts of companies from diversified industries primarily located in the United States, Canada, Japan and Europe. Other types of investments include investments in hedge funds, joint ventures and swaps that follow several different strategies.

Fair Value Measurements

Effective for fiscal years ending after December 15, 2009, the Company adopted ASC Topic 715-20, Employer's Disclosures about Postretirement Benefit Plan Assets. ASC Topic 715-20 establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 715-20 are described as follows:

Level 1—inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the plan has the ability to access.

Level 2—inputs to the valuation methodology include:

• Quoted prices for similar assets or liabilities in active markets;

• Quoted prices for identical or similar assets or liabilities in inactive markets;

• Inputs other than quoted prices that are observable for the asset or liability;

• Inputs that are derived principally from or corroborated by observable market data by correlation or other means

Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement

The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Description of the valuation methods used for assets measured at fair value

Corporate bonds, government bonds and municipal bonds are valued using a bid evaluation, an estimated price at which a dealer would pay for a security (typically in an institutional round lot). These evaluations are based on quoted prices, if available, or proprietary models which pricing vendors establish for these purposes.

Guaranteed investment contracts and mortgage, asset or government backed securities are valued using a bid evaluation or a mid evaluation. A bid evaluation is an estimated price at which a dealer would pay for a security (typically in an institutional round lot). A mid evaluation is the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security (typically in an institutional round lot). Often times these evaluations are based on proprietary models which pricing vendors establish for these purposes.

Equities are valued at the closing price reported on the active market on which the individual securities are traded.

Hedge funds and joint venture interests are valued at the net asset value using information from investment managers.

Swaps are valued using a mid evaluation, or the average of the estimated price at which a dealer would sell a security and the estimated price at which a dealer would pay for a security (typically in an institutional round lot). Often times these evaluations are based on proprietary models which pricing vendors establish for these purposes.

Real estate is valued at the net asset value using information from investment managers.

Real estate investment trusts are valued at the closing price reported on the active market on which the investments are traded.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the investments of the pension assets at fair value, as of December 31, 2010:

	North America								Japan								Rest of the World
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Fixed Income
Government & Municipal Bonds	$	—	$	33,130	$	—	$	33,130	$	—	$	3,065	$	—	$	3,065	$	—	$	53,440	$	—	$	53,440
US Corporate Bonds		—		22,818		—		22,818		—		93		—		93		—		3,693		—		3,693
Canadian Corporate Bonds		—		17,082		—		17,082		—		—		—		—		—		80		—		80
Eurozone Corporate Bonds		—		2,865		—		2,865		—		—		—		—		—		72,309		—		72,309
UK Corporate Bonds		—		1,912		—		1,912		—		—		—		—		—		24,407		—		24,407
Swiss Corporate Bonds		—		—		—		—		—		—		—		—		—		32,298		—		32,298
Other Corporate Bonds		—		2,731		—		2,731		—		138		—		138		—		17,376		—		17,376
GICs / Mortgage, Asset or Govt
Backed Securities		—		1,483		—		1,483		—		17,929		—		17,929		—		603		—		603
Equities
US Equities		26,837		14,212		—		41,049		2,272		—		—		2,272		53,576		—		—		53,576
Canadian Equities		198		22,301		—		22,499		246		—		—		246		1,723		—		—		1,723
Eurozone Equities		761		—		—		761		708		—		—		708		28,293		—		—		28,293
UK Equities		676		—		—		676		460		—		—		460		15,684		—		—		15,684
Swiss Equities		370		—		—		370		186		—		—		186		18,472		—		—		18,472
Other Equities		16,607		7,817		—		24,424		5,032		—		—		5,032		48,918		—		—		48,918
Other
Hedge Funds/Joint Venture
Interests/Swaps		—		—		516		516		—		—		—		—		1,122		7,408		15,287		23,817
Real Estate
Real Estate Interests		—		—		4,795		4,795		—		—		—		—		—		519		16,804		17,323
Real Estate Investment Trusts		—		—		—		—		—		61		—		61		20,858		3,773		69		24,700
Cash
Cash/Cash Equivalents		6,835		—		—		6,835		902		—		—		902		7,695		—		—		7,695
Total Investments	$	52,284	$	126,351	$	5,311	$	183,946	$	9,806	$	21,286	$	—	$	31,092	$	196,341	$	215,906	$	32,160	$	444,407

The following table sets forth a summary of changes in the fair value of the Level 3 pension assets for the year ending December 31, 2010:

	North America												Japan								Rest of World
	Corporate Bonds			Hedge / Joint Venture			Real Estate / Other			Total			Corporate Bonds		Hedge / Joint Venture		Real Estate /Other		Total		Corporate Bonds		Hedge/ Joint Venture			Real Estate/Other			Total
Balance, beginning of year	$	655		$	650		$	5,853		$	7,158		$	—	$	—	$	—	$	—	$	—	$	13,554		$	17,177		$	30,731
Gains/(Losses) due to exchange rate movements		—			—			—			—			—		—		—		—		—		(561	)		(1,090	)		(1,651	)
Gains/(Losses) on assets sold during the year		—			—			—			—			—		—		—		—		—		—			—			—
Gains/(Losses) on assets still held at end of year		—			(70	)		1,488			1,418			—		—		—		—		—		2,040			105			2,145
Purchases, sales, issuance, and settlements		—			(64	)		(2,600	)		(2,664	)		—		—		—		—		—		177			657			834
Transfers in and/or out of Level 3		(655	)		—			54			(601	)		—		—		—		—		—		77			24			101
Balance, end of year	$	—		$	516		$	4,795		$	5,311		$	—	$	—	$	—	$	—	$	—	$	15,287		$	16,873		$	32,160

The following table sets forth by level, within the fair value hierarchy, the investments of the pension assets at fair value, as of December 31, 2009:

	North America								Japan								Rest of the World
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Fixed Income
Government & Municipal Bonds	$	—	$	24,229	$	—	$	24,229	$	—	$	3,215	$	—	$	3,215	$	—	$	99,009	$	—	$	99,009
US Corporate Bonds		—		23,554		—		23,554		—		—		—		—		—		6,381		—		6,381
Canadian Corporate Bonds		—		14,690		—		14,690		—		—		—		—		—		256		—		256
Eurozone Corporate Bonds		—		2,646		655		3,301		—		—		—		—		—		33,503		—		33,503
UK Corporate Bonds		—		2,624		—		2,624		—		—		—		—		—		8,351		—		8,351
Swiss Corporate Bonds		—		—		—		—		—		—		—		—		—		27,425		—		27,425
Other Corporate Bonds		—		2,443		—		2,443		—		317		—		317		—		3,854		—		3,854
GICs / Mortgage, Asset or Govt
Backed Securities		—		6,549		—		6,549		—		14,117		—		14,117		—		501		—		501
Equities
US Equities		26,771		19,116		—		45,887		2,118		—		—		2,118		52,901		—		—		52,901
Canadian Equities		491		14,616		—		15,107		211		—		—		211		2,532		—		—		2,532
Eurozone Equities		663		—		—		663		772		—		—		772		26,539		—		—		26,539
UK Equities		585		—		—		585		438		—		—		438		20,912		—		—		20,912
Swiss Equities		457		—		—		457		158		—		—		158		17,775		—		—		17,775
Other Equities		17,170		6,594		—		23,764		5,399		—		—		5,399		31,387		—		—		31,387
Other
Hedge Funds/Joint Venture
Interests/Swaps		—		609		650		1,259		—		—		—		—		57		7,459		13,554		21,070
Real Estate								—								—								—
Real Estate Interests		—		—		5,853		5,853		—		—		—		—		—		436		17,177		17,613
Real Estate Investment Trusts		—		—		—		—		—		64		—		64		17,687		3,734		—		21,421
Cash								—								—								—
Cash/Cash Equivalents		4,057		4		—		4,061		400		—		—		400		6,278		—		—		6,278
Total Investments	$	50,194	$	117,674	$	7,158	$	175,026	$	9,496	$	17,713	$	—	$	27,209	$	176,068	$	190,909	$	30,731	$	397,708

The following table sets forth a summary of changes in the fair value of the Level 3 pension assets for the year ending December 31, 2009:

	North America											Japan								Rest of World
	Corporate Bonds			Hedge /Joint Venture			Real Estate /Other		Total			Corporate Bonds		Hedge /Joint Venture		Real Estate /Other		Total		Corporate Bonds		Hedge / Joint Venture			Real Estate /Other			Total
Balance, beginning of year	$	241		$	816		$	3,151	$	4,208		$	—	$	—	$	—	$	—	$	—	$	969		$	21,056		$	22,025
Gains/(Losses) on assets sold		—			—			—		—			—		—		—		—		—		—			—			—
Gains/(Losses) on assets stillheld at end of year		16			(146	)		628		498			—		—		—		—		—		(573	)		(4,306	)		(4,879	)
Purchases, sales, issuance, and settlements		639			(20	)		2,074		2,693			—		—		—		—		—		13,158			427			13,585
Transfers in and/or out of Level		(241	)		—			—		(241	)		—		—		—		—		—		—			—			—
Balance, end of year	$	655		$	650		$	5,853	$	7,158		$	—	$	—	$	—	$	—	$	—	$	13,554		$	17,177		$	30,731

Long-Term Rate of Return Assumptions

The expected long-term rate of return assumptions were chosen from the range of likely results of compound average annual returns over a long-term time horizon. Historical returns and volatilities are modeled to determine the final asset allocations that best meet the objectives of asset/liability studies. These asset allocations, when viewed over a long-term historical view of the capital markets, yield an expected return on assets as follows:

North America	Expected Return
Canada		7.25	%
United States		7.50	%

Japan
Japan	3.41	%

Rest of World
Austria	7.86	%
Belgium	6.25	%
Germany	5.25	%
Ireland	7.00	%
Netherlands	6.25	%
Switzerland	5.00	%
United Kingdom	7.39	%