BENEFIT PLANS

The Company has pension plans covering certain U.S. employees that have been closed to new participants since July 1, 2003. Plans that cover certain salaried employees provide pension benefits based on the employee’s compensation during the ten years before retirement. The Company’s funding policy for salaried plans is to contribute annually based on actuarial projections and applicable regulations. Plans covering certain hourly employees and union members generally provide benefits of stated amounts for each year of service. The Company’s funding policy for hourly plans is to make at least the minimum annual contributions required by applicable regulations. Employees of the Company’s operations in countries outside of the U.S. participate to varying degrees in local pension plans, which in the aggregate are not significant.

In addition to providing pension benefits, the Company provides healthcare and life insurance benefits (referred to as other benefits) for certain retired employees. Eligible employees may be entitled to these benefits based upon years of service with the Company, age at retirement and collective bargaining agreements. Currently, the Company has made no commitments to increase these benefits for existing retirees or for employees who may become eligible for these benefits in the future. There are no plan assets and the Company funds the benefits as the claims are paid.

The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans and other benefits for the three months ended June 30:



	Pension Benefits						Other Benefits
	2012			2011			2012			2011
Components of net periodic benefit cost
Service cost	$	2,861		$	2,713		$	—		$	—
Interest cost	7,958			7,872			203			232
Expected return on plan assets	(10,206		)	(10,184		)	—			—
Amortization of prior service cost (benefit)	64			64			(129		)	(129		)
Recognized net actuarial loss	4,183			2,394			122			97
Net periodic pension benefit cost	$	4,860		$	2,859		$	196		$	200

The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans and other benefits for the six months ended June 30:



	Pension Benefits						Other Benefits
	2012			2011			2012			2011
Components of net periodic benefit cost
Service cost	$	5,723		$	5,426		$	—		$	—
Interest cost	15,916			15,744			407			465
Expected return on plan assets	(20,411		)	(20,367		)	—			—
Amortization of prior service cost (benefit)	129			129			(258		)	(258		)
Recognized net actuarial loss	8,394			4,800			243			194
Net periodic pension benefit cost	$	9,751		$	5,732		$	392		$	401

Cash Flows

There have been no significant changes to the 2012 plan year contribution amounts previously disclosed. For the six months ended June 30, 2012 and 2011, contributions of $13,780 and $21,500, respectively, were made to the qualified and non-qualified pension plans.