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
	2013			2012			2013			2012
Components of net periodic benefit cost
Service cost	$	3,330		$	2,861		$	—		$	—
Interest cost	6,956			7,958			157			203
Expected return on plan assets	(8,802		)	(10,206		)	—			—
Amortization of prior service cost (benefit)	19			64			(122		)	(129		)
Recognized net actuarial loss	5,435			4,183			105			122
Net periodic pension benefit cost	$	6,938		$	4,860		$	140		$	196

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
	2013			2012			2013			2012
Components of net periodic benefit cost
Service cost	$	6,661		$	5,723		$	—		$	—
Interest cost	13,913			15,916			314			407
Expected return on plan assets	(17,605		)	(20,411		)	—			—
Amortization of prior service cost (benefit)	37			129			(244		)	(258		)
Recognized net actuarial loss	10,856			8,394			211			243
Curtailment loss (1)	1,159			—			—			—
Net periodic pension benefit cost	$	15,021		$	9,751		$	281		$	392

(1) The curtailment loss during the six months ended June 30, 2013 resulted from the departure of certain executive officers and was recorded within selling and administrative expense.

Contributions

There have been changes to the 2013 plan year contribution amounts previously disclosed. The Company is freezing its defined-benefit pension plan for U.S.-based employees (refer to note 18). The freeze, coupled with higher discount rates, is expected to reduce the underfunded status of the plan and thus, the Company has no plans to make voluntary contributions to the pension plan for the foreseeable future. For the six months ended June 30, 2013 and 2012, contributions of $1,597 and $13,780, respectively, were made to the qualified and non-qualified pension plans.