Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2011

Commitments and Contingent Liabilities [Abstract]

Commitments and Contingent Liabilities

Note 16: Commitments and Contingencies

At December 31, 2011, we were obligated under various operating lease agreements with terms ranging from one month to 20 years. Net rental expense in 2011, 2010 and 2009 was $11.4 million, $10.2 million and $12.9 million, respectively, and is net of sublease income of $0.8 million, $0.7 million and $0.7 million, respectively.

At December 31, 2011, future minimum rental payments under non-cancelable operating leases were:

Year	($ in millions)
2012	$	12.2
2013		6.3
2014		5.6
2015		4.1
2016		3.5
Thereafter		17.6
Total		49.3
Less sublease income		0.4
	$	48.9

At December 31, 2011, outstanding unconditional contractual commitments for the purchase of raw materials, utilities and equipment amounted to $21.7 million, of which, $13.8 million is due to be paid in 2012.

In 2011, we entered into an agreement for the construction and development of our new corporate office and research building. The estimated purchase price of the building, under this agreement, is $36.3 million. The actual purchase price will be based on construction and development costs incurred. Payment is due for the portion of the building covered by this contract upon final settlement, which is expected to occur by early 2013. In addition to this amount, we also expect to directly incur $24.6 million in capital expenditures related to the building over the next twelve months.

We have letters of credit totaling $3.3 million supporting the reimbursement of workers’ compensation and other claims paid on our behalf by insurance carriers. Our accrual for insurance obligations was $9.2 million at December 31, 2011, of which $5.2 million is in excess of our deductible and, therefore, is reimbursable by the insurance company.

During 2009, we enrolled in a tax amnesty program offered by the Brazilian government which provided for reduced penalties and interest on certain of our tax obligations. This matter is currently awaiting final disposition in the Brazilian court system. Our total accrual at December 31, 2011 related to these matters and adjusted for expected amnesty benefits, was $7.8 million.