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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2012
Net Periodic Cost for U.K Plan and Japan Plan

The net periodic pension cost for the U.K. Plan and Japan Plan included the following components (in thousands):

 

     U.K. Plan     Japan Plan  
     2012     2011     2010     2012      2011      2010  

Components of the net periodic pension cost:

               

Service cost

    $ —        $ —        $ —        $ 121       $ 106       $ 115   

Interest cost

      1,359        1,486        1,447        15         18         14   

Expected return on plan assets

      (1,270 )      (1,576 )      (1,467 )      —           —           —     

Amortization of the unrecognized transition obligation

      —          —          —          37         40         42   

Amortization of prior service cost

      —          —          —          3         2         —     

Amortization of actuarial losses

      392        224        204        —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net periodic pension cost

    $ 481      $ 134      $ 184      $ 176       $ 166       $ 171   
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  
Reconciliation of Benefit Obligations and Plan Assets of U.K. Plan and Japan Plan

The following table provides a reconciliation of benefit obligations and plan assets of the U.K. Plan and the Japan Plan (in thousands):

 

     U.K. Plan     Japan Plan  
     2012     2011     2012     2011  

Change in benefit obligation:

         

Projected benefit obligation at beginning of year

    $ 27,335      $ 27,341      $ 1,401      $ 1,155   

Service cost

      —          —          121        106   

Interest cost

      1,359        1,486        15        18   

Amendments and transfers

      —          —          417        —     

Actuarial (gains) losses

      5,008        (767 )      89        51   

Benefits paid

      (582 )      (645 )      (140 )      (10 ) 

Foreign currency exchange rate changes

      1,593        (80 )      (38 )      81   
  

 

 

    

 

 

    

 

 

    

 

 

  

Projected benefit obligation at end of year

    $ 34,713      $ 27,335      $ 1,865      $ 1,401   
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated benefit obligation at end of year

    $ 34,713      $ 27,335      $ 1,539      $ 1,124   
  

 

 

    

 

 

    

 

 

    

 

 

  

Change in plan assets:

         

Fair value of plan assets at beginning of year

    $ 24,590      $ 25,710      $ 582      $ 393   

Actual return (loss) on plan assets

      2,461        (1,247 )      9        (9 ) 

Employer contributions

      793        802        324        188   

Benefits paid

      (582 )      (645 )      (140 )      (10 ) 

Foreign currency exchange rate changes

      1,367        (30 )      52        20   
  

 

 

    

 

 

    

 

 

    

 

 

  

Fair value of plan assets at end of year

    $ 28,629      $ 24,590      $ 827      $ 582   
  

 

 

    

 

 

    

 

 

    

 

 

  

Funded status at end of year

    $ (6,084 )    $ (2,745 )    $ (1,038 )    $ (819 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Amount recognized in the financial statements consists of:

         

Accrued pension liabilities

    $ 6,084      $ 2,745      $ 1,038      $ 819   
  

 

 

    

 

 

    

 

 

    

 

 

  

Amounts included in accumulated other comprehensive loss not yet recognized in net periodic pension cost

         

Net actuarial loss

    $ (11,197 )    $ (7,301 )    $ (110 )    $ (42 ) 

Prior service cost

    $ —        $ —        $ (281 )    $ (35 ) 

Net transition obligation

    $ —        $ —        $ (237 )    $ (550 ) 

Amounts expected to be amortized from accumulated other comprehensive loss into net periodic cost over the next fiscal year consists of:

         

Net actuarial loss

    $ 702      $ 381      $ —        $ —     

Prior service cost

    $ —        $ —        $ 16      $ 2   

Net transition obligation

    $ —        $ —        $ 26      $ 42   
Expected Future Benefit Payments

The following table reflects the total expected benefit payments to plan participants and have been estimated based on the same assumptions used to measure the Company’s benefit obligations as of December 31, 2012 (in thousands):

 

     U.K. Plan      Japan Plan  

2013

    $ 549       $ 241   

2014

      1,028         152   

2015

      817         64   

2016

      970         70   

2017

      1,239         75   

2018-2022

      7,138         651   
  

 

 

     

 

 

  

Total

    $ 11,741       $ 1,253   
  

 

 

     

 

 

  
Summary of Fair Value of Plan Assets by Asset Category

The following table summarizes the fair values of Plan assets as of December 31, 2012 by asset category (in thousands):

 

Asset Category

    Fair Value      Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		      Significant Other
Observable Inputs
(Level 2)		      Significant Other
Unobservable Inputs
(Level 3)		  

U.K. Plan

            

Mutual Funds:

            

Balanced (1)

    $ 14,266       $  —         $ 14,266       $  —     

Growth (2)

      14,244         —           14,244         —     

Cash

      119         119         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 28,629       $ 119       $ 28,510       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Japan Plan

            

Insurance contracts (3)

    $ 827       $ —         $ 827       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 827       $ —         $ 827       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) This class comprises a diversified portfolio of global investments which seeks a balanced return between capital growth and fixed income and is allocated on a weighted average basis as follows: equities (47%), debt (41%), other assets (9%) and cash (3%).
(2) This class comprises a diversified portfolio of global investments which seeks long-term capital growth and is allocated on a weighted average basis as follows: equities (68%), other assets (10%), debt (21%), and cash (1%).
(3) This class represents funds invested in insurance contracts.

 

The following table summarizes the fair values of Plan assets as of December 31, 2011 by asset category (in thousands):

 

Asset Category

    Fair Value      Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)		      Significant Other
Observable
Inputs
(Level 2)		      Significant Other
Unobservable
Inputs
(Level 3)		  

U.K. Plan

            

Mutual Funds:

            

Balanced (1)

    $ 12,353       $  —         $ 12,353       $  —     

Growth (2)

      12,136         —           12,136         —     

Cash

      101         101         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 24,590       $ 101       $ 24,489       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Japan Plan

            

Insurance contracts (3)

    $ 582       $ —         $ 582       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 582       $ —         $ 582       $ —   
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(1) This class comprises a diversified portfolio of global investments which seeks a balanced return between capital growth and fixed income and is allocated on a weighted average basis as follows: equities (40%), debt (36%), other assets (17%) and cash (7%).
(2) This class comprises a diversified portfolio of global investments which seeks long-term capital growth and is allocated on a weighted average basis as follows: equities (60%), other assets (16%), debt (18%), and cash (6%).
(3) This class represents funds invested in insurance contracts.
Funded Status
  
Actuarial Assumptions used to Compute net Periodic Pension Cost and Funded Status for U.K. Plan and Japan Plan

The actuarial assumptions used to compute the funded status as of December 31, 2012 and 2011, respectively, for the U.K. Plan and the Japan Plan were as follows:

 

     U.K. Plan     Japan Plan  
     2012     2011     2012     2011  

Weighted-average discount rate

      4.3 %      4.9 %      1.3 %      1.2 % 

Weighted-average rate of compensation increase

      —          —          3.0 %      3.0 % 

Rate of inflation

      2.5 %      2.2 %      —          —     
Pension Cost
  
Actuarial Assumptions used to Compute net Periodic Pension Cost and Funded Status for U.K. Plan and Japan Plan

The actuarial assumptions used to compute the net periodic pension cost for the years ended December 31, 2012, 2011 and 2010, respectively, for the U.K. Plan and the Japan Plan were as follows:

 

     U.K. Plan     Japan Plan  
     2012     2011     2010     2012     2011     2010  

Weighted-average discount rate

      4.9 %      5.3 %      5.8 %      1.2 %      1.3 %      1.3 % 

Weighted-average rate of compensation increase

      —          —          —          3.0 %      3.0 %      3.0 % 

Weighted-average long-term rate of return on plan assets

      5.0 %      5.9 %      6.5 %      —          —          0.1 %