XML 27 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Employee Retirement and Other Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2011
Employee Retirement and Other Benefit Plans [Abstract]  
Plan information of Pensionskasse - Old
The following table outlines the plan information for the year ended December 31, 2011.
 
Legal Name of the plan
 
 
Pensionskasse der Wacker Chemie Versicherungsverein auf Gegenseitigkeit
 
 
Employer Identification Number / Plan number
 
 
N/A
 
Funded Status
 
 
The plan was more than 80% funded as of December 31, 2011
 
 
Expiration date(s) of the collective bargaining agreement(s) requiring
contributions to the plan
 
N/A (no expiration date)
 
 
 
 Contributions to the plan by year
For the year ended December 31,
 
 
2009
2010
2011
 
 
$1.3 million
$1.3 million
$1.4 million
As of the end of the most recent annual period:
 
December 31, 2011
1. Whether a funding improvement plan or a rehabilitation plan had been implemented
 
No
2. Whether the employer paid surcharge to the plan
 
No
3. Description of any minimum contributions(s), required for future periods
by collective bargaining agreement(s), statutory obligations, or other
contractual obligations, if applicable
 
The majority of the employers' contributions depend on the employees' contributions. The relation between the employers' and the employees' contribution can either decrease or increase in the future. Until 2011 the employer paid 250% of the employees' contribution. For the future - starting with 2012 - the employer has to pay 350% of the employees' contribution.
 
Additional information of the Pensionskasse der Wacker Chemie VVaG is available in the public domain. In particular, the annual report as published by the Pensionskasse can be accessed at www.ebundesanzeiger.de. However, since the information is available in German only, ESK Ceramics provides this information hereafter.
 
Description of the nature of plan benefits
 
The Pensionskasse der Wacker Chemie VVaG provides monthly payments in case of retirement, disability or death (spouse or children). The benefits depend mainly on the employees' contributions.
 
 
Qualitative description of the extent to which the employer could be responsible for the obligations of the plan, including benefits earned by employees during employment with another employer
 
The plan is under very strict supervision by the German authorities. Therefore, in normal course it is very unlikely that the Pensionskasse der Wacker Chemie VVaG fails to fulfill its obligations. In this unlikely event, by law, the employer is responsible for the obligations of the plan. The employer is liable for the benefits of its employees who participate in the plan.
 
 
Other quantitative information, to the extent available, as of the most recent data available
December 31, 2010 (in thousand EUR)
 
 
Fair value of plan assets
 
 
 
1,395.3
 
Actuarial present value of accumulated plan benefits (The actuarial present value of accumulated plan benefits was calculated according to German GAAP. The interest rate used according to German GAAP equals about 4.0%. As a result the actuarial present value of accumulated plan benefits according to US-GAAP would be less than the amount shown.)
 
 
 
1,317.7
 
Total contributions received by the plan
 
 
47.1
 
Components of net periodic benefit costs
German Pension and Benefit Plans
 
Components of net periodic benefit costs under the Additional and Deferred Compensation Plans for the years ended December 31, 2011, 2010 and 2009 were as follows (in thousands):
 
 
2011
 
 
2010
 
 
2009
 
Service cost
 
$
757
 
 
$
675
 
 
$
592
 
Interest cost
 
 
850
 
 
 
727
 
 
 
681
 
Amortization of actuarial loss
 
 
229
 
 
 
164
 
 
 
88
 
Net periodic benefit cost
 
$
1,836
 
 
$
1,566
 
 
$
1,361
 
Ceradyne Boron Products Pension Plans
 
Components of the net periodic pension (benefit) for the years ended December 31, 2011, 2010 and 2009 were as follows (in thousands):
 
 
2011
 
 
2010
 
 
2009
 
Service costs
 
$
8
 
 
$
63
 
 
$
86
 
Interest costs
 
 
478
 
 
 
506
 
 
 
513
 
Amortization of actuarial loss
 
 
116
 
 
 
146
 
 
 
202
 
Expected return on assets
 
 
(556
)
 
 
(520
)
 
 
(490
)
Net periodic pension (benefit)
 
$
46
 
 
$
195
 
 
$
311
 
Weighted-average assumptions used to determine net periodic benefit cost and pension benefit obligations
German Pension and Benefit Plans
 
The weighted-average assumptions used to determine net periodic benefit cost were as follows:
 
 
2011
 
 
2010
 
 
2009
 
Discount rate
 
 
5.10
%
 
 
5.40
%
 
 
6.25
%
Rate of long-term compensation increase
 
 
3.00
%
 
 
3.00
%
 
 
3.00
%
 
The weighted-average assumptions used to determine pension benefit obligations were as follows:
 
2011
2010
Discount rate
4.60%
5.10%
Rate of long-term compensation increase
3.00%
3.00%
 
Ceradyne Boron Products Pension Plans
 
The weighted-average assumptions used to determine net periodic benefit costs were as follows:
 
 
2011
 
 
2010
 
 
2009
 
Discount rate
 
 
5.28
%
 
 
5.75
%
 
 
5.74
%
Rate of long-term compensation increase
 
 
3.00
%
 
 
3.00
%
 
 
4.00
%
Expected return on plan assets
 
 
8.00
%
 
 
8.00
%
 
 
8.00
%
 
The weighted-average assumptions used to determine pension benefit obligation were as follows:
 
 
2011
 
 
2010
 
Discount rate
 
 
4.39
%
 
 
5.28
%
Rate of long-term compensation increase
 
 
3.00
%
 
 
3.00
%
Funded status and components of the change in benefit obligations
German Pension and Benefit Plans
 
The funded status and components of the change in benefit obligations of the Additional and Deferred Compensation Plans for December 31, 2011 and 2010 were as follows (in thousands):

 
2011
 
 
2010
 
Funded status at end of year:
 
 
 
 
 
 
Projected benefit obligation
 
$
(18,323
)
 
$
(16,109
)
Assets at fair value
 
 
-
 
 
 
-
 
Funded status
 
$
(18,323
)
 
$
(16,109
)
       Net amounts recognized in consolidated balance sheet:
 
 
 
 
 
 
 
 
Current liabilities
 
$
(275
)
 
$
(238
)
Non-current liabilities
 
$
(18,048
)
 
$
(15,871
)
       Change in projected benefit obligation:
 
 
 
 
 
 
 
 
       Projected benefit obligation at beginning of year
 
$
(16,109
)
 
$
(14,657
)
Foreign currency exchange rate changes
 
 
712
 
 
 
944
 
Service costs
 
 
(757
)
 
 
(675
)

 
 
 
 
2011 
 
 
 
2011
 
Interest costs
 
 
(850
)
 
 
(727
)
Actuarial gains (losses)
 
 
(1,495
)
 
 
(1,146
)
Benefits paid
 
 
176
 
 
 
152
 
       Projected benefit obligation at end of year
 
$
(18,323
)
 
$
(16,109
)
 
 
 
 
 
 
 
 
       Accumulated benefit obligation
 
$
(16,656
)
 
$
(14,576
)
 
Ceradyne Boron Products Pension Plans
 
The funded status and components of the change in benefit obligations and changes in plan assets for the years ended December 31, 2011 and 2010 were as follows (in thousands):

Funded status at end of year:
 
2011
 
 
2010
 
Projected benefit obligation
 
$
(10,425
)
 
$
(9,599
)
Assets at fair value
 
 
7,150
 
 
 
7,125
 
Funded status
 
$
(3,275
)
 
$
(2,474
)
 
 
 
 
 
 
 
 
Net amount recorded in consolidated balance sheet:
 
 
 
 
 
 
 
 
Noncurrent liabilities
 
$
(3,275
)
 
$
(2,474
)
 
 
 
 
 
 
 
 
Change in projected benefit obligation:
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
 
$
(9,599
)
 
$
(9,088
)
Service costs
 
 
(8
)
 
 
(63
)
Interest costs
 
 
(478
)
 
 
(506
)
Actuarial losses
 
 
(909
)
 
 
(521
)
Benefits paid
 
 
569
 
 
 
579
 
 Projected benefit obligation at end of year
 
$
(10,425
)
 
$
(9,599
)
 
Fair value of plan assets at beginning of year
 
$
7,125
 
 
$
6,857
 
 Actual return on plan assets
 
 
123
 
 
 
749
 
 Employer contributions
 
 
471
 
 
 
98
 
 Benefits paid
 
 
(569
)
 
 
(579
)
 Fair value of plan assets at end of year
 
$
7,150
 
 
$
7,125
 
Components of related tax effects for each component of other comprehensive income
German Pension and Benefit Plans
 
Components of the related tax effects for each component of other comprehensive income follows related to the Additional and Deferred Compensation Plans for December 31, 2011 and 2010 are as follows (in thousands):
 
 
 2011
 
 
Before-Tax Amount
 
 
Tax (Expense)
or Benefit
 
 
Net-of-Tax Amount
 
Accumulated other comprehensive (loss) income at beginning of year
 
$
(4,938
)
 
$
1,448
 
 
$
(3,490
)
Net actuarial (loss) gain arising during current year
 
 
(1,495
)
 
 
440
 
 
 
(1,055
)
Amortization of actuarial loss
 
 
229
 
 
 
(67
)
 
 
162
 
Foreign currency effect
 
 
71
 
 
 
(21
)
 
 
50
 
Accumulated other comprehensive (loss) income at end of year(1)
 
$
(6,133
)
 
$
1,800
 
 
$
(4,333
)
 
(1) Approximately $276 of net actuarial loss included in accumulated other comprehensive loss will be amortized into income in 2012.
 
 
 2010
 
 
Before-Tax Amount
 
 
Tax (Expense)
or Benefit
 
 
Net-of-Tax Amount
 
Accumulated other comprehensive income (loss) at beginning of year
 
$
(3,956
)
 
$
1,160
 
 
$
(2,796
)
Net actuarial (loss) gain arising during current year
 
 
(1,146
)
 
 
336
 
 
 
(810
)
Amortization of actuarial loss
 
 
163
 
 
 
(48
)
 
 
115
 
Foreign currency effect
 
 
1
 
 
 
-
 
 
 
1
 
Accumulated other comprehensive (loss) income at end of year
 
$
(4,938
)
 
$
1,448
 
 
$
(3,490
)

Ceradyne Boron Products Pension Plans
 
Components of the related tax effects for each component of other comprehensive income follows related to the plan for the years ended December 31, 2011 and 2010 are as follows (in thousands):
 
2011
Before-Tax Amount
Tax (Expense)
or Benefit
Net-of-Tax Amount
Accumulated other comprehensive income (loss) at beginning of year
$
(2,217
)
$
864
$
(1,353
)
Net actuarial loss arising during current year
(1,125
)
478
(747
)
Accumulated other comprehensive income (loss) at end of year(1)
$
(3,442
)
$
1,342
) 
$
(2,100
)
 
(1)Approximately $236 of actuarial net loss included in accumulated other comprehensive loss will be amortized into income in 2012.
 
2010
Before-Tax Amount
Tax (Expense)
or Benefit
Net-of-Tax Amount
Accumulated other comprehensive income (loss) at beginning of year
$
(2,072
)
$
807
$
(1,265
)
Net actuarial gain arising during current year
(145
)
57
(88
)
Accumulated other comprehensive income (loss) at end of year
$
(2,217
)
$
864
) 
$
(1,353
)
 
Estimated future employer contributions in next fiscal year [Table Text Block]
     The Company expects to contribute to its defined benefit plans in 2012 (in thousands):
 
Pensionkasse - old
 $1,744 
Additional compensation
  1,370 
Deferred compensation
  214 
Total contributions expected in 2012
 $3,328 
Estimated future employer contributions in next fiscal year
     The Company expects to contribute to its defined benefit plans in 2012 (in thousands):
 
Pensionkasse - old
 $1,744 
Additional compensation
  1,370 
Deferred compensation
  214 
Total contributions expected in 2012
 $3,328 
Estimated future benefit payments
German Pension and Benefit Plans
 
The following estimated future benefit payments are expected to be paid in the years indicated (in thousands):
 
2012
 
$
274
 
2013
 
 
303
 
2014
 
 
369
 
2015
 
 
412
 
2016
 
 
459
 
2017 - 2021
 
 
3,667
 

Ceradyne Boron Products Pension Plans
 
    The following estimated future benefit payments are expected to be paid in the years indicated (in thousands):
 
2012
 
$
587
 
2013
 
 
644
 
2014
 
 
627
 
2015
 
 
618
 
2016
 
 
635
 
2017 - 2021
 
 
3,371
 
Composition of plan assets
The fair value of plan assets was determined based on observable inputs (Level 2) using the net asset value of the investment funds. The net asset value represents price per share and is calculated by dividing the total value of all securities in the portfolio, less any liabilities, by the number of fund shares outstanding. Plan assets as of December 31, 2011 and 2010 comprised the following:
 
   
2011
  
2010
 
Investment fund - equity securities
 $4,622  $4,618 
Investment fund - fixed income securities
  2,528   2,507 
      Fair value of plan assets at end of year
 $7,150  $7,125 
Accumulated benefit obligation at end of year
 $(10,425) $(9,596)