BENEFIT PLANS

The Company maintains a number of retirement and other post-retirement employee benefit plans.

Certain subsidiaries sponsor defined contribution plans. Benefits are determined and funded annually based upon the terms of the plans. Amounts recognized as cost under these plans amounted to $8.4 million, $10.5 million and $11.6 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Certain subsidiaries sponsor defined benefit plans. Benefits are provided to employees primarily based upon years of service and employees’ compensation for certain periods during the last years of employment. Prior to 2002, the Company’s U.S. operations also provided post-retirement medical benefits to their employees. Contributions for medical benefits are related to employee years of service.

The following tables set forth the change in benefit obligation, the change in plan assets, the funded status and amounts recognized in the consolidated financial statements for the Company’s defined benefit plans and post-retirement plan at December 31, 2011 and 2010:



	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Benefits
	2011			2010			2011			2010			2011			2010
Change in benefit obligation:
Benefit obligation at beginning of year	$	125,340		$	119,930		$	661,029		$	600,063		$	14,608		$	14,509
Service cost, gross	331			264			27,194			22,719			304			295
Interest cost	6,422			6,439			24,637			22,438			731			757
Actuarial losses (gains)	20,596			4,661			33,834			4,815			(1,971		)	5
Plan amendments and other	—			—			(444		)	(123		)	558			—
Benefits paid	(6,197		)	(5,954		)	(22,482		)	(25,431		)	(973		)	(958		)
Impact of foreign currency	—			—			(6,265		)	36,548			—			—
Benefit obligation at end of year	$	146,492		$	125,340		$	717,503		$	661,029		$	13,257		$	14,608
Change in plan assets:
Fair value of plan assets at beginning of year	$	97,040		$	86,801		$	667,124		$	580,273		$	—		$	—
Actual return on plan assets	(3,004		)	11,135			(13,604		)	29,400			—			—
Employer contributions	65			5,058			22,197			18,944			875			1,135
Plan participants’ contributions	—			—			13,290			9,903			98			103
Benefits paid	(6,197		)	(5,954		)	(23,217		)	(25,431		)	(973		)	(1,238		)
Impact of foreign currency and other	—			—			(664		)	54,035			—			—
Fair value of plan assets at end of year	$	87,904		$	97,040		$	665,126		$	667,124		$	—		$	—
Funded status	$	(58,588	)	$	(28,300	)	$	(52,377	)	$	6,095		$	(13,257	)	$	(14,608	)

Amounts recognized in the consolidated balance sheets consist of:



	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Benefits
	2011			2010			2011			2010			2011			2010
Other non-current assets	$	—		$	—		$	52,660		$	107,173		$	—		$	—
Pension and other post-retirement liabilities	(58,588		)	(28,300		)	(105,037		)	(101,078		)	(13,257		)	(14,608		)
Accumulated other comprehensive loss (income)	89,956			63,958			95,686			17,366			(9,635		)	(8,814		)
Net amount recognized	$	31,368		$	35,658		$	43,309		$	23,461		$	(22,892	)	$	(23,422	)

The prepaid pension asset is recorded in other non-current assets on the consolidated balance sheet. The short-term and long-term portion of the accrued pension liability is recorded on the consolidated balance sheet within accrued and other liabilities and other non-current liabilities, respectively. The long-term portion of the accrued pension liabilities and other post-retirement liabilities at December 31, 2011 and 2010 was $58.5 million and $28.2 million, respectively, for the U.S. defined benefit pension plan, $100.3 million and $96.6 million, respectively, for the non-U.S. plans and $12.1 million and $13.2 million, respectively, for the U.S. post-retirement plan. The current portion of the accrued pension and other post-retirement liabilities was $0.1 million at both December 31, 2011 and 2010 for the U.S. defined benefit pension plan, $4.7 million and $4.5 million, respectively, for the non-U.S. plans and $1.2 million and $1.4 million, respectively, for the U.S. post-retirement plan.

The following amounts have been recognized in accumulated other comprehensive income (loss), before taxes, at December 31, 2011 and have not yet been recognized as a component of net periodic pension cost:



	U.S. Pension Benefits		Non-U.S. Pension Benefits		Other Benefits
Prior service cost, net	$	—	$	12,126	$	457
Actuarial losses (gains)	89,956		83,560		(10,092		)
Total	$	89,956	$	95,686	$	(9,635	)

The following changes in plan assets and benefit obligations were recognized in other comprehensive income (loss), before taxes, for the year ended December 31, 2011:



	U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Benefits
Net actuarial losses (gains)	$	31,101		$	82,427		$	(1,971	)
Prior service cost	—			—			457
Amortization of:
Actuarial losses (gains)	(5,103		)	(845		)	693
Prior service cost	—			1,271			—
Impact of foreign currency	—			(4,533		)	—
	$	25,998		$	78,320		$	(821	)

The accumulated benefit obligations at December 31, 2011 and 2010 were $146.5 million and $125.3 million, respectively, for the U.S. defined benefit pension plan and $698.0 million and $634.8 million, respectively, for all non-U.S. plans. Certain of the plans included within non-U.S. pension benefits have benefit obligations which exceed the fair value of plan assets. The projected benefit obligation, the accumulated benefit obligation and fair value of assets of these plans as of December 31, 2011 were $183.2 million, $171.7 million and $79.3 million, respectively.

The assumed discount rates and rates of increase in future compensation levels used in calculating the projected benefit obligations vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows:



	U.S.						Non-U.S.
	2011		2010		2009		2011		2010		2009
Discount rate	4.25	%	5.25	%	5.50	%	3.10	%	3.60	%	3.90	%
Compensation increase rate	n/a		n/a		n/a		1.75	%	2.20	%	2.20	%

The assumed discount rates, rates of increase in future compensation levels and the long-term rate of return used in calculating the net periodic pension cost vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows:



	U.S.						Non-U.S.
	2011		2010		2009		2011		2010		2009
Discount rate	5.25	%	5.50	%	6.25	%	3.60	%	3.90	%	3.95	%
Compensation increase rate	n/a		n/a		n/a		1.75	%	2.20	%	2.25	%
Expected long-term rate of return on plan assets	8.00	%	8.25	%	8.25	%	4.81	%	5.20	%	5.15	%

Net periodic pension cost for the defined benefit plans includes the following components for the years ended December 31:



	U.S.									Non-U.S.
	2011			2010			2009			2011			2010			2009
Service cost, net	$	331		$	264		$	183		$	26,703		$	12,819		$	16,552
Interest cost on projected benefit obligations	6,422			6,439			6,782			24,637			22,438			21,610
Expected return on plan assets	(7,499		)	(6,906		)	(6,842		)	(47,350		)	(29,354		)	(26,440		)
Recognition of actuarial losses/(gains)	5,103			5,297			4,659			(339		)	(198		)	(324		)
Recognition of settlement/curtailment losses (gains)	—			—			—			—			59			(550		)
Net periodic pension cost	$	4,357		$	5,094		$	4,782		$	3,651		$	5,764		$	10,848

Net periodic post-retirement benefit (credit)/cost for the U.S. post-retirement plan includes the following components for the years ended December 31:



	2011			2010			2009
Service cost	$	304		$	295		$	381
Interest cost on projected benefit obligations	731			757			1,120
Net amortization and deferral	(692		)	(1,406		)	(1,286		)
Net periodic post-retirement benefit (credit)/cost	$	343		$	(354	)	$	215

The amounts remaining in accumulated other comprehensive income (loss) that are expected to be recognized as a component of net periodic pension cost during 2012 are as follows:



	U.S. Pension Benefits		Non-U.S. Pension Benefits			Other Benefits
Prior service cost, net	$	—	$	(1,484	)	$	86
Actuarial losses (gains)	7,664		2,522			(840		)
Total	$	7,664	$	1,038		$	(754	)

The projected post-retirement benefit obligation was principally determined using discount rates of 4.25% in 2011, 5.25% in 2010 and 5.50% in 2009. Net periodic post-retirement benefit cost was principally determined using discount rates of 5.25% in 2011 and 5.50% in 2010, and 6.25% in 2009. The health care cost trend rate was 9.00% in 2011, and ranged from 7.50% to 9.00% in 2010 and 7.50% to 10.00% in 2009, decreasing to 5.00% in 2015.

The health care cost trend rate assumption has a significant effect on the accumulated post-retirement benefit obligation and net periodic post-retirement benefit cost. A one-percentage-point change in health care cost trend rates would have the following effects:



	One-Percentage-Point Increase		One-Percentage-Point Decrease
Effect on total of service and interest cost components	$	94	$	(84	)
Effect on post-retirement benefit obligation	$	999	$	(896	)

The Company’s overall asset investment strategy is to achieve long-term growth while minimizing volatility by widely diversifying among asset types and strategies. Target asset allocations and investment return criteria are established by the pension committee or designated officers of each plan. Target asset allocation ranges for the U.S. pension plan include 30-50% equity securities, 15-35% fixed income securities and 25-45% other types of investments. International plan assets relate primarily to the Company’s Swiss plan with target allocations of 25-45% in equities, 35-55% in fixed income securities and 15-25% in other types of investments. Actual results are monitored against targets and the trustees are required to report to the members of each plan, including an analysis of investment performance on an annual basis at a minimum. Day-to-day asset management is typically performed by third-party asset managers, reporting to the pension committees or designated officers.

The long-term rate of return on plan asset assumptions used to determine pension expense under U.S. GAAP are generally based on estimated future returns for the target investment mix determined by the trustees as well as historical investment performance.

The following table presents the fair value measurement of the Company’s plan assets by hierarchy level:



	December 31, 2011								December 31, 2010
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Observable Inputs for Identical Assets (Level 2)		Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Observable Inputs for Identical Assets (Level 2)		Unobservable Inputs (Level 3)		Total
Asset Category:
Cash and Cash Equivalents	$	96,071	$	—	$	—	$	96,071	$	106,166	$	—	$	—	$	106,166
Equity Securities:
Mettler-Toledo Stock	3,725		—		—		3,725		3,827		—		—		3,827
Equity Mutual Funds:
U.S.⁽¹⁾	30,923		20,149		—		51,072		30,820		19,786		—		50,606
International⁽²⁾	37,565		40,693		—		78,258		44,648		44,879		—		89,527
Emerging Markets⁽³⁾	31,712		4,333		—		36,045		31,253		5,995		—		37,248
Fixed Income Securities:
Corporate/Government	62,041		—		—		62,041		59,318		—		—		59,318
Bonds⁽⁴⁾
Fixed Income Mutual Funds:
Insurance Contracts⁽⁵⁾	—		15,208		1,661		16,869		—		14,412		1,556		15,968
Core Bond⁽⁶⁾	132,430		32,231		—		164,661		175,754		31,069		—		206,823
Real Asset Mutual Funds:
Real Estate⁽⁷⁾	65,021		—		—		65,021		30,190		27,001		—		57,191
Commodities⁽⁸⁾	24,582		4,258		21,816		50,656		—		12,882		20,836		33,718
Other Types of Investments:
Global Allocation Funds⁽⁹⁾	28,555		7,040		—		35,595		24,420		8,709		—		33,129
Multi-Strategy Fund of	—		—		78,650		78,650		—		—		56,398		56,398
Hedge Funds⁽¹⁰⁾
Convertible Preferred	—		—		14,366		14,366		—		—		14,245		14,245
Equity Certificates⁽¹¹⁾
	$	512,625	$	123,912	$	116,493	$	753,030	$	506,396	$	164,733	$	93,035	$	764,164

_______________________________________


(1)	Represents primarily large capitalization equity mutual funds tracking the S&P 500 Index.


(2)	Represents all capitalization core and value equity mutual funds located primarily in Switzerland, the United Kingdom and Canada.


(3)	Represents core and growth mutual funds and funds of mutual funds invested in emerging markets primarily in Eastern Europe, Latin America and Asia.


(4)	Represents investments in high-grade corporate and government bonds located in Switzerland and the European Union.


(5)	Represents fixed and variable rate annuity contracts provided by insurance companies.


(6)	Represents fixed income mutual funds invested in the U.S., the United Kingdom, Switzerland and European government bonds, high-grade corporate bonds, mortgage-backed securities and collateralized mortgage obligations.


(7)	Represents mutual funds invested in real estate located primarily in Switzerland.


(8)	Represents commodity funds invested across a broad range of sectors.


(9)	Represents mutual funds invested globally in both equities and fixed income securities.


(10)	Represents primarily equity investments to profit from long and short equity positions, economic and government driven events and relative value and tactical trading strategies.


(11)	Represents preferred equity certificates of a wholly-owned subsidiary.

The fair value of the Company’s stock and corporate and government bonds are valued at the year end closing price as reported on the securities exchange on which they are traded. Mutual funds are valued at the exchange-listed year end closing price or at the net asset value of shares held by the fund at the end of the year. Insurance contracts are valued by discounting the related cash flows using a current year end market rate or at cash surrender value, which is presumed to equal fair value. Funds of hedge funds are valued at the net asset value of shares held by the fund at the end of the year.

The following table presents a rollforward of activity for the years ended December 31, 2011 and 2010 for level 3 asset categories:



	Multi- Strategy Fund of Hedge Funds			Equity Long/Short Fund of Hedge Funds			Commodities			Insurance Contract			Convertible Preferred Equity Certificates			Total
Balance at December 31, 2009	$	23,064		$	5,299		$	—		$	2,114		$	12,909		$	43,386
Actual return on plan assets:
Related to assets held at end of year	(3,675		)	—			(720		)	(86		)	—			(4,481		)
Related to assets sold during the year	308			(206		)	—			1			—			103
Purchases and (sales)	34,239			(5,450		)	20,874			(314		)	—			49,349
Impact of foreign currency	2,462			357			682			(159		)	1,336			4,678
Balance at December 31, 2010	$	56,398		$	—		$	20,836		$	1,556		$	14,245		$	93,035
Actual return on plan assets:
Related to assets held at end of year	2,704			—			987			34			669			4,394
Related to assets sold during the year	112			—			—			3			—			115
Purchases and (sales)	20,606			—			—			114			(563		)	20,157
Impact of foreign currency	(1,170		)	—			(7		)	(46		)	15			(1,208		)
Balance at December 31, 2011	$	78,650		$	—		$	21,816		$	1,661		$	14,366		$	116,493

There were no transfers between level 2 and level 3 assets during the years ended December 31, 2011 and 2010.

The following benefit payments, which reflect expected future service as appropriate, are expected to be paid:



	U.S. Pension Benefits		Non-U.S. Pension Benefits		Other Benefits Net of Subsidy
2012	$	6,324	$	39,487	$	1,021
2013	6,631		39,366		1,001
2014	6,908		40,374		1,027
2015	7,147		40,935		1,015
2016	7,403		42,334		983
2017-2021	41,765		217,907		4,973

The Company made a voluntary incremental pension contribution of $5 million in 2010 to increase the funded status of its U.S. pension plan. The Company does not expect to receive any refunds from its benefit plans during 2012.

In 2012, the Company expects to make employer pension contributions of approximately $7.4 million and $20.6 million to its U.S. pension plan and non-U.S. pension plans, respectively, and employer contributions of approximately $1.1 million to its U.S. post-retirement medical plan.