Retirement Benefits

6 Months Ended

Jun. 30, 2011

Retirement Benefits

Retirement Benefits

Note 10. Retirement Benefits:

Pension expense included the following components:

U.S. Plans	Three Months Ended June 30,						Six Months Ended June 30,
(DOLLARS IN THOUSANDS)	2011			2010			2011			2010
Service cost for benefits earned	$	864		$	910		$	1,727		$	1,820
Interest cost on projected benefit obligation		6,007			5,990			12,014			11,979
Expected return on plan assets		(6,269	)		(6,042	)		(12,539	)		(12,084	)
Net amortization and deferrals		2,822			1,812			5,645			3,624
Loss due to curtailments		443						443
Defined benefit plans		3,867			2,670			7,290			5,339
Defined contribution and other retirement plans		1,768			1,825			3,658			3,737
Total pension expense	$	5,635		$	4,495		$	10,948		$	9,076

Non-U.S. Plans	Three Months Ended June 30,						Six Months Ended June 30,
(DOLLARS IN THOUSANDS)	2011			2010			2011			2010
Service cost for benefits earned	$	2,612		$	2,637		$	5,224		$	5,194
Interest cost on projected benefit obligation		8,522			8,601			17,044			17,012
Expected return on plan assets		(11,345	)		(10,838	)		(22,689	)		(21,439	)
Net amortization and deferrals		1,352			1,345			2,705			2,690
Loss due to settlements and special terminations		3,878			30			3,878			63
Defined benefit plans		5,019			1,775			6,162			3,520
Defined contribution and other retirement plans		2,688			1,226			4,090			2,197
Total pension expense	$	7,707		$	3,001		$	10,252		$	5,717

During the second quarter 2011, we have settled a portion of the Ireland pension plan as discussed in Note 3. As a result, we recorded a settlement charge and a special termination benefit charge of $3.9 million to recognize a portion of the unrecognized loss related to those employees who have accepted the settlement and for additional benefits credited to those participants accepting a settlement. This settlement was funded primarily through pension plan investment trust assets.

In connection with negotiations completed during the second quarter 2011, we have amended the pension plan of one of our North American ingredients' plants. We recorded a curtailment charge of $0.4 million during the three months ended June 30, 2011 to recognize a portion of the unrecognized prior service costs associated with the years of service no longer expected to be rendered and credited as service under the plan.

We expect to contribute $3.4 million to our qualified U.S. pension plans and $23.4 million to our non-U.S. pension plans during 2011. In the three and six months ended June 30, 2011, no contributions were made to our qualified U.S. pension plan. For the three and six months ended June 30, 2011, $3.9 million and $7.4 million of contributions were made to the non-U.S. plans, respectively. In the three and six months ended June 30, 2011, $0.9 million and $1.9 million of benefit payments were made with respect to our non-qualified U.S. pension plan, respectively.

The financial returns of our pension plan investment trusts during the three and six months ended June 30, 2011 continue to be generally in line with the markets by asset class.

Expense recognized for postretirement benefits other than pensions included the following components:

	Three Months Ended June 30,						Six Months Ended June 30,
(DOLLARS IN THOUSANDS)	2011			2010			2011			2010
Service cost for benefits earned	$	258		$	410		$	516		$	820
Interest on benefit obligation		1,454			1,643			2,908			3,286
Net amortization and deferrals		(672	)		(489	)		(1,344	)		(978	)
Total postretirement benefit expense	$	1,040		$	1,564		$	2,080		$	3,128

We expect to contribute approximately $6 million to our postretirement benefits other than pension plans during 2011. In the three and six months ended June 30, 2011, $1.3 million and $2.6 million of contributions were made.