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Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2013
Net Periodic Cost for U.K Defined Benefit Pension 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  
     2013     2012     2011     2013     2012      2011  

Components of the net periodic pension cost:

              

Service cost

    $ —        $ —        $ —        $ 147      $ 121       $ 106   

Interest cost

      1,403        1,359        1,486        22        15         18   

Expected return on plan assets

      (1,595 )      (1,270 )      (1,576 )      (8 )      —           —     

Amortization of the unrecognized transition obligation

      —          —          —          33        37         40   

Amortization of prior service cost

      —          —          —          20        3         2   

Amortization of actuarial losses

      668        392        224        —          —           —     

Other

      —          —          —          38        —           —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net periodic pension cost

    $ 476      $ 481      $ 134      $ 252      $ 176       $ 166   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
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  
     2013     2012     2013     2012  

Change in benefit obligation:

         

Projected benefit obligation at beginning of year

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

Service cost

      —          —          147        121   

Interest cost

      1,403        1,359        22        15   

Amendments and transfers

      —          —          —          417   

Actuarial (gains) losses

      (889 )      5,008        (65 )      89   

Benefits paid

      (688 )      (582 )      (1,119 )      (140 ) 

Foreign currency exchange rate changes

      654        1,593        527        (38 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Projected benefit obligation at end of year

    $ 35,193      $ 34,713      $ 1,377      $ 1,865   
  

 

 

    

 

 

    

 

 

    

 

 

  

Accumulated benefit obligation at end of year

    $ 35,193      $ 34,713      $ 1,006      $ 1,539   
  

 

 

    

 

 

    

 

 

    

 

 

  

Change in plan assets:

         

Fair value of plan assets at beginning of year

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

Actual return on plan assets

      3,903        2,461        5        9   

Employer contributions

      847        793        628        324   

Benefits paid

      (688 )      (582 )      (1,119 )      (140 ) 

Foreign currency exchange rate changes

      766        1,367        213        52   
  

 

 

    

 

 

    

 

 

    

 

 

  

Fair value of plan assets at end of year

    $ 33,457      $ 28,629      $ 554      $ 827   
  

 

 

    

 

 

    

 

 

    

 

 

  

Funded status at end of year

    $ (1,736 )    $ (6,084 )    $ (823 )    $ (1,038 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

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

         

Net actuarial (loss) gain

    $ (7,142 )    $ (11,197 )    $ 2      $ (110 ) 

Prior service cost

    $ —        $ —        $ (211 )    $ (281 ) 

Net transition obligation

    $ —        $ —        $ (163 )    $ (237 ) 

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

         

Net actuarial gain

    $ 386      $ 702      $ —        $ —     

Prior service cost

    $ —        $ —        $ 20      $ 16   

Net transition obligation

    $ —        $ —        $ 33      $ 26   
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, 2013 (in thousands):

 

     U.K. Plan      Japan Plan  

2014

    $ 1,065       $ 142   

2015

      852         42   

2016

      1,007         45   

2017

      1,132         49   

2018

      930         53   

2019-2023

      7,897         560   
  

 

 

     

 

 

  

Total

    $ 12,883       $ 891   
  

 

 

     

 

 

  
Summary of Fair Value of Plan Assets by Asset Category

The following table summarizes the fair values of Plan assets as of December 31, 2013 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)

    $ 16,260       $  —         $ 16,260       $  —     

Growth (2)

      17,060         —           17,060         —     

Cash

      137         137         —           —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 33,457       $ 137       $ 33,320       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Japan Plan

            

Insurance contracts (3)

    $ 554       $ —         $ 554       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 554       $ —         $ 554       $ —     
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(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 (51%), debt (33%), other assets (8%) and cash (8%).
(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 (70%), debt (14%), other assets (9%) and cash (7%).
(3) This class represents funds invested in insurance contracts.

 

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.
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, 2013 and 2012, respectively, for the U.K. Plan and the Japan Plan were as follows:

 

     U.K. Plan     Japan Plan  
     2013     2012     2013     2012  

Weighted-average discount rate

      4.6 %      4.3 %      1.0 %      1.3 % 

Weighted-average rate of compensation increase

      —          —          3.0 %      3.0 % 

Rate of inflation

      2.7 %      2.5 %      —          —     
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, 2013, 2012 and 2011, respectively, for the U.K. Plan and the Japan Plan were as follows:

 

     U.K. Plan     Japan Plan  
     2013     2012     2011     2013     2012     2011  

Weighted-average discount rate

      4.3 %      4.9 %      5.3 %      1.3 %      1.2 %      1.3 % 

Weighted-average rate of compensation increase

      —          —          —          3.0 %      3.0 %      3.0 % 

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

      5.7 %      5.0 %      5.9 %      —          —          —