Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2011

Reconciliations of Benefit Obligation, Plan Assets of Pension Plans and Funded Status of Plans

The following tables present reconciliations of the benefit obligation of the plans, the plan assets of the pension plans and the funded status of the plans:

	Pension benefits						Post-retirement
In thousands	2011			2010			2011			2010
Change in benefit obligation
Benefit obligation beginning of year	$	586,808		$	552,309		$	33,715		$	35,301
Service cost		12,466			11,588			180			200
Interest cost		32,768			31,671			1,889			2,013
Amendments		—			(281	)		—			—
Settlements		(257	)		(104	)		—			—
Actuarial (gain) loss		62,751			24,677			2,494			(647)
Translation (gain) loss		(2,477	)		(4,208	)		—			—
Benefits paid		(30,488	)		(28,844	)		(3,197	)		(3,152)
Benefit obligation end of year	$	661,571		$	586,808		$	35,081		$	33,715
Change in plan assets
Fair value of plan assets beginning of year	$	385,483		$	329,188		$	—		$	—
Actual gain (loss) return on plan assets		27,971			35,495			—			—
Company contributions		37,097			49,840			3,197			3,152
Settlements		(257	)		(104	)		—			—
Translation gain (loss)		(35	)		(92	)		—			—
Benefits paid		(30,488	)		(28,844	)		(3,197	)		(3,152)
Fair value of plan assets end of year	$	419,771		$	385,483		$	—		$	—
Funded status
Plan assets less than benefit obligation	$	(241,800	)	$	(201,325	)	$	(35,081	)	$	(33,715)
Net amount recognized	$	(241,800	)	$	(201,325	)	$	(35,081	)	$	(33,715)

Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets are as follows:

	Pension benefits						Post-retirement
In thousands	2011			2010			2011			2010
Current liabilities	$	(5,745	)	$	(5,343	)	$	(3,307	)	$	(3,390)
Noncurrent liabilities		(236,055	)		(195,982	)		(31,774	)		(30,325)
Net amount recognized	$	(241,800	)	$	(201,325	)	$	(35,081	)	$	(33,715)

Information for Pension Plans with Accumulated Benefit Obligation or Projected Benefit Obligation in Excess of Plan Assets

Information for pension plans with an accumulated benefit obligation or projected benefit obligation in excess of plan assets are as follows:

In thousands	2011		2010
Pension plans with an accumulated benefit obligation in excess of plan assets:
Fair value of plan assets	$	419,771	$	385,483
Accumulated benefit obligation		625,884		557,712
Pension plans with a projected benefit obligation in excess of plan assets:
Fair value of plan assets	$	419,771	$	385,483
Accumulated benefit obligation		661,571		586,808

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost are as follows:

	Pension benefits									Post-retirement
In thousands	2011			2010			2009			2011			2010			2009
Service cost	$	12,466		$	11,588		$	12,334		$	180		$	200		$	214
Interest cost		32,768			31,671			32,612			1,889			2,013			2,377
Expected return on plan assets		(31,849	)		(30,910	)		(30,286	)		—			—			—
Amortization of transition obligation		—			13			25			—			—			—
Amortization of prior year service cost (benefit)		—			7			23			(27	)		(27	)		(41)
Recognized net actuarial (gain) loss		3,887			1,674			82			(3,306	)		(3,295	)		(3,326)
Settlement gain		23			(8	)		(9	)		—			—			—
Net periodic benefit cost	$	17,295		$	14,035		$	14,781		$	(1,264	)	$	(1,109	)	$	(776)

Amounts Not Yet Recognized in Net Periodic Benefit Cost and Included in Accumulated Other Comprehensive Income (Pre-Tax)

Amounts not yet recognized in net periodic benefit cost and included in accumulated other comprehensive income (pre-tax):

	Pension benefits						Post-retirement
In thousands	2011			2010			2011			2010
Prior service cost (benefit)		(171	)		(162	)		(850	)		(878)
Net actuarial (gain) loss		201,093			138,558			(14,982	)		(20,781)
Accumulated other comprehensive (income) loss	$	200,922		$	138,396		$	(15,832	)	$	(21,659)

Estimated Amount that will be Amortized from Accumulated Other Comprehensive Income into Net Periodic Benefit Cost

The estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2012 is as follows:

	Pension		Post-
In thousands	benefits		retirement
Prior service cost (benefit)	$	—	$	(27)
Net actuarial (gain) loss		10,308		(3,306)
Total estimated 2012 amortization	$	10,308	$	(3,333	)

Change in Accumulated Other Comprehensive Income, Net of Tax

Change in accumulated other comprehensive income, net of tax:

In thousands	2011			2010
Beginning of the year	$	(71,210	)	$	(58,448)
Additional prior service cost incurred during the year		—			171
Actuarial gains (losses) incurred during the year		(42,139	)		(11,861)
Translation gains (losses) incurred during the year		118			(75)
Amortization during the year:
Transition obligation		—			8
Unrecognized prior service cost (benefit)		(16	)		(12)
Actuarial gains		354			(993)
End of the year	$	(112,893	)	$	(71,210)

Assumed Health Care Cost Trend Rates

The assumed health care cost trend rates at December 31 are as follows:

	2011		2010
Health care cost trend rate assumed for next year		7.50 %		7.50 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		4.50 %		4.50 %
Year that the rate reaches the ultimate trend rate		2027		2027

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

The assumed health care cost trend rates can have a significant effect on the amounts reported for health care plans. A one-percentage-point change in the assumed health care cost trend rates would have the following effects:

In thousands	1-Percentage- point increase		1-Percentage- point decrease
Effect on total annual service and interest cost	$	45	$	(40	)
Effect on post-retirement benefit obligation		905		(801	)

Actual Overall Asset Allocation for Plans as Compared to Investment Policy Goals

Our actual overall asset allocation for the plans as compared to our investment policy goals is as follows:

	Plan assets				Target allocation
Asset class	2011		2010		2011		2010
Equity securities		42 %		47 %		40 %		50 %
Fixed income investments		50 %		37 %		50 %		40 %
Alternative investments		5 %		12 %		10 %		10 %
Cash		3 %		4 %		- %		- %

Plan Assets Using Fair Value Hierarchy

The following table presents our plan assets using the fair value hierarchy as of December 31, 2011 and December 31, 2010.

in thousands	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Cash equivalents	$	—	$	13,084	$	—	$	13,084
Fixed income:
Corporate and non U.S. government		—		76,046		150		76,196
U.S. treasuries		—		82,989		—		82,989
Mortgage-backed securities		—		40,286		629		40,915
Other		—		7,958		219		8,177
Global equity securities:
Small cap equity		7,094		—		—		7,094
Mid cap equity		7,528		4		—		7,532
Large cap equity		—		47,398		—		47,398
International equity		19,942		19,652		—		39,594
Long/short equity		—		56,575		—		56,575
Pentair company stock		16,645		—		—		16,645
Other investments		—		4,563		19,009		23,572
Total as of December 31, 2011	$	51,209	$	348,555	$	20,007	$	419,771
in thousands	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Total
Cash equivalents	$	—	$	13,803	$	—	$	13,803
Fixed income:
Corporate and non U.S. government		—		42,544		284		42,828
U.S. treasuries		—		60,710		—		60,710
Mortgage-backed securities		—		30,052		1,368		31,420
Other		—		6,818		125		6,943
Global equity securities:
Small cap equity		7,982		—		—		7,982
Mid cap equity		8,811		—		—		8,811
Large cap equity		—		45,700		—		45,700
International equity		23,964		21,895		—		45,859
Long/short equity		—		56,639		—		56,639
Pentair company stock		18,255		—		—		18,255
Other investments		—		33,542		12,991		46,533
Total as of December 31, 2010	$	59,012	$	311,703	$	14,768	$	385,483

Reconciliation of Level 3 Assets

The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2011 and December 31, 2010, respectively.

	Balance January 1, 2011		Net realized and unrealized gains (losses)		Net purchases, issuances and settlements			Net transfers into (out of) level 3		Balance December 31, 2011
Other investments	$	12,991	$	251	$	5,767		$	—	$	19,009
Fixed income investments		1,777		87		(866	)		—		998
	$	14,768	$	338	$	4,901		$	—	$	20,007
	Balance January 1, 2010		Net realized and unrealized gains (losses)		Net purchases, issuances and settlements			Net transfers into (out of) level 3		Balance December 31, 2010
Other investments	$	14,427	$	678	$	(2,114	)	$	—	$	12,991
Fixed income investments		2,739		334		(1,296	)		—		1,777
	$	17,166	$	1,012	$	(3,410	)	$	—	$	14,768

Expected Future Service to Be Paid by Plans

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the plans as follows:

In millions	Pension benefits		Post-retirement
2012	$	31.8	$	3.3
2013		32.6		3.2
2014		33.5		3.1
2015		35.9		3.0
2016		38.7		2.9
2017-2021		221.4		13.1

Benefit Obligations

Weighted-Average Assumptions used to Determine Domestic Benefit Obligations and Domestic Net Periodic Benefit Cost

Weighted-average assumptions used to determine domestic benefit obligations at December 31 are as follows:

	Pension benefits						Post-retirement
Percentages	2011		2010		2009		2011		2010		2009
Discount rate		5.05		5.90		6.00		5.05		5.90		6.00
Rate of compensation increase		4.00		4.00		4.00

Net Periodic Benefit Cost

Weighted-Average Assumptions used to Determine Domestic Benefit Obligations and Domestic Net Periodic Benefit Cost

Weighted-average assumptions used to determine the domestic net periodic benefit cost for years ending December 31 are as follows:

	Pension benefits						Post-retirement
Percentages	2011		2010		2009		2011		2010		2009
Discount rate		5.90		6.00		6.50		5.90		6.00		6.50
Expected long-term return on plan assets		8.00		8.50		8.50
Rate of compensation increase		4.00		4.00		4.00