Employee Benefits Plans

12 Months Ended

Dec. 31, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

14. Employee Benefits Plans

Pension Plan

The Company sponsors a cash balance defined benefit pension plan that covers substantially all of its salaried employees (the "Pension Plan"). Amounts credited to employee accounts in the Pension Plan are based on the employees' years of service and compensation. The Company complies with the minimum funding requirements of ERISA.

Obligations and Funded Status

Change in projected benefit obligation:

	2011			2010
Projected benefit obligation, beginning of year	$	29,197		$	30,695
Service cost		3,059			1,864
Interest cost		1,225			1,479
Actuarial loss		301			484
Benefits paid		(16	)		(11	)
Amendments		2,432			1,480
Curtailment charge		1,022			279
Settlement loss		(11,392	)		(7,073	)
Projected benefit obligation, end of year	$	25,828		$	29,197

Change in plan assets:

	2011			2010
Fair value of assets, beginning of year	$	70,189		$	72,969
Actual return on assets		2,697			4,518
Settlements		(11,392	)		(7,073	)
Benefits and expenses paid		(541	)		(225	)
Fair value of assets, end of year	$	60,953		$	70,189
Funded status at end of year	$	35,125		$	40,992
Ratio of plan assets to projected benefit obligation		236	%		240	%

The Company recognized a prepaid pension asset of $35.1 million and $41.0 million at December 31, 2011 and 2010, respectively. The accumulated benefit obligation of the Pension Plan was $25.8 million and $28.8 million at December 31, 2011 and 2010, respectively

Amounts not yet reflected in net periodic pension cost and included in accumulated other comprehensive loss at December 31 are as follows:

	2011		2010		2009
Prior service cost	$	2,502	$	3,272	$	3,553
Loss		7,378		9,910		12,278
Accumulated other comprehensive loss	$	9,880	$	13,182	$	15,831

A summary of the net periodic pension cost (credit) and other amounts recognized in other comprehensive loss (income) are as follows:

	2011			2010			2009
Service cost	$	3,059		$	1,864		$	1,445
Interest cost		1,225			1,479			4,823
Expected return on assets		(3,038	)		(4,243	)		(9,434	)
Prior service costs		649			695			709
Amortization of loss		—			—			1,015
Settlement loss		3,698			2,791			46,042
One-time charge in connection with an increase in benefits for certain participants		1,401			—			—
Curtailment charge		2,173			1,346			—
Net periodic pension cost	$	9,167		$	3,932		$	44,600
Other changes in Plan Assets and Benefit Obligations recognized in Other Comprehensive Income:
Prior service (cost) credit		(769	)		(282	)		(710	)
Loss (gain)		(2,531	)		(2,368	)		(44,202	)
Total recognized in other comprehensive loss (income)		(3,300	)		(2,650	)		(44,912	)
Total recognized in net periodic pension cost and other comprehensive loss (income)	$	5,867		$	1,282		$	(312	)

The estimated transition obligation, prior service costs and actuarial loss that will be amortized from accumulated other comprehensive income into net periodic pension cost (credit) over the next fiscal year is zero and $0.4 million and zero, respectively.

The Company incurred settlement losses and curtailment charges for certain participants totaling $5.9 million in 2011 and $4.1 million in 2010 related to its reduced employment levels in connection with its restructurings.

On June 18, 2009, the Company, as plan sponsor of the pension plan, signed a commitment for the pension plan to purchase a group annuity contract from Massachusetts Mutual Life Insurance Company for the benefit of the retired participants and certain other former employee participants in the pension plan. Current employees and former employees with cash balances in the pension plan are not affected by the transaction. The purchase price of the group annuity contract was approximately $101.0 million, which was funded from the assets of the pension plan on June 25, 2009. The transaction resulted in the transfer and settlement of pension benefit obligations of approximately $93.0 million. In addition, the Company recorded a non-cash pre-tax settlement charge to earnings during the second quarter of 2009 of $44.7 million. The Company also recorded a pre-tax credit in the amount of $44.7 million in Accumulated Other Comprehensive Income on its Consolidated Balance Sheets offsetting the non-cash charge to earnings. As a result of this transaction, the Company was able to significantly increase the funded ratio thereby reducing the potential for future funding requirements.

Assumptions

Assumptions used to develop end of period benefit obligations:

	2011			2010
Discount rate		4.19	%		5.04	%
Rate of compensation increase		3.75	%		3.75	%

Assumptions used to develop net periodic pension cost (credit):

	2011			2010			2009
Average discount rate		4.59	%		5.06	%		6.05	%
Expected long term rate of return on plan assets		5.00	%		6.00	%		8.00	%
Rate of compensation increase		3.75	%		3.75	%		4.00	%

To develop the expected long-term rate of return on assets assumption, the Company considered the current level of expected returns on risk free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return on assets assumption for the portfolio. This resulted in the selection of the 5.0%, 6.0% and 8.0% assumption in 2011, 2010 and 2009, respectively.

Plan Assets

The Company's investment policy is to ensure, over the long-term life of the Pension Plan, an adequate pool of assets to support the benefit obligations to participants, retirees and beneficiaries. In meeting this objective, the Pension Plan seeks the opportunity to achieve an adequate return to fund the obligations in a manner consistent with the fiduciary standards of ERISA and with a prudent level of diversification. Specifically, these objectives include the desire to:

• invest assets in a manner such that contributions remain within a reasonable range and future assets are available to fund liabilities;

• maintain liquidity sufficient to pay current benefits when due; and

• diversify, over time, among asset classes so assets earn a reasonable return with acceptable risk of capital loss.

The Company's overall investment strategy is to achieve a range of 65-95% fixed income investments and 5% -35% equity type investments.

Following is a description of the valuation methodologies used for assets measured at fair value at December 31, 2011.

Common/collective trusts: Valued based on information reported by the investment advisor using the financial statements of the collective trusts at year end.

Mutual funds and money market funds: Valued at the net asset value (NAV) of shares held by the Plan at year end.

Other: The other investment consists of a royalty investment for which there is no quoted market price. Fair value of the royalty investment is estimated based on the present value of future cash flows, using management's best estimate of key assumptions, including discount rates.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2011:

Assets at Fair Value as of December 31, 2011

Asset Category:	Level 1		Level 2		Level 3		Total
Cash	$	401	$	—	$	—	$	401
Common/collective Trusts(a)		—		35,805		—		35,805
Mutual Funds(b)		—		23,878		—		23,878
Money market Funds		59		—		—		59
Other		—		—		810		810
Total	$	460	$	59,683	$	810	$	60,953

(a) Common/collective trusts invest in 67% U.S. short maturity fixed income investments, 25% U. S. Large Cap equities and 8% international equities.

(b) One hundred percent of mutual funds invest in a short term fixed income fund.

The following table sets forth a summary of changes in the fair value of the Plan's level 3 assets for the year ended December 31, 2011.

	2011
Balance, beginning of year	$	582
Unrealized gains (losses) relating to instruments still held at the reporting date		228
Balance, end of year	$	810

The Company does not anticipate making any contributions to the plan during 2012. Expected benefit payments for the next ten years are as follows:

Year Ended	Expected  Benefit Payments
2012		10,484
2013		1,089
2014		552
2015		662
2016		1,036
2017-2021		7,350

Postretirement Benefits

During 2011, the Company discontinued funding postretirement medical benefits to retirees, beneficiaries and surviving spouses. As a result, the retiree medical liability was reduced by $10.5 million, accumulated comprehensive (loss) was reduced by $5.0 million, and employee insurance expense was reduced by $5.5 million. A liability of $0.1 million and $11.3 million has been included in accrued liabilities to reflect the Company's obligation to fund postretirement benefits at December 31, 2011 and 2010, respectively.

Deferred Compensation Plans and ESPP

The Company maintains a 401(k) retirement plan covering substantially all officers and employees, which permits participants to defer up to the maximum allowable amount determined by the IRS of their eligible compensation. This deferred compensation, together with Company matching contributions, which generally equal 100% of the first 1% of eligible compensation and 50% on the next 5% of eligible compensation, up to 3.5% of eligible compensation, is fully vested and funded as of December 31, 2011. The Company contributions to the plan were approximately $0.2 million, $0.4 million and $0.6 million in 2011, 2010 and 2009, respectively. The Company discontinued the matching contributions as of July 1, 2011.

In March 2011, the Company's Supplemental Executive Retirement Plan ("SERP") was combined with the Company's Pension Plan.

The Company discontinued the employee stock purchase plan as of July 1, 2011.