Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

The following tables set forth our pension obligations and funded status at December 31:

	Pension Benefits
	Defined Benefit Pension Plan						Supplementary Pension Plan
	2012			2011			2012			2011
Change in benefit obligations:
Beginning projected benefit obligation	$	58.1		$	48.0		$	11.6		$	9.2
Service cost		1.7			1.5			0.3			0.2
Interest cost		2.7			2.6			0.5			0.5
Actuarial (gain)/loss		2.6			7.2			1.2			2.0
Benefits paid		(1.3	)		(1.2	)		(0.4	)		(0.3	)
Ending projected benefit obligation		63.8			58.1			13.2			11.6

Change in plan assets:
Beginning fair value		34.5			35.8			-			-
Actual return		4.3			(1.5	)					-
Company contribution		1.7			1.5			0.4			0.4
Benefits paid		(1.4	)		(1.3	)		(0.4	)		(0.4	)
Ending fair value		39.1			34.5			-			-

Funded status of the plan		(24.7	)		(23.6	)		(13.2	)		(11.6	)

Summary of net periodic pension cost

Pension cost in each of the following years was comprised of:

	Defined Benefit Pension Plan									Supplementary Pension Plan
	2012			2011			2010			2012		2011		2010
Service cost – benefits earned during the year	$	1.7		$	1.5		$	1.4		$	0.3	$	0.2	$	0.3
Interest cost on accumulated benefit obligation		2.7			2.6			2.4			0.5		0.5		0.5
Expected return on plan assets		(2.6	)		(2.9	)		(2.6	)		-		-		-
Net amortization and deferral		1.0			0.1			0.1			0.2		0.1		0.1
Net periodic pension cost		2.8			1.3			1.3			1.0		0.8		0.9

Assumptions used to determine pension obligations

The following table summarizes the assumptions used in determining our pension obligations at the end of each of our last two years:

	Defined Benefit Pension Plan						Supplementary Pension Plan
	2012			2011			2012			2011
Discount rate		4.17	%		4.70	%		4.00	%		4.63	%
Rate of compensation increase		3.00	%		4.00	%		3.00	%		4.00	%
Long-term rate of return on plan assets		7.50	%		7.50	%		N/A			N/A

Assumptions used to determine net periodic benefit cost

The following table summarizes the assumptions used in determining our net periodic benefit cost in the years ended December 31:

	Defined Benefit Pension Plan									Supplementary Pension Plan
	2012			2011			2010			2012			2011			2010
Discount rate		4.70	%		5.51	%		5.91	%		4.63	%		5.36	%		5.95	%
Rate of compensation increase		4.00	%		4.00	%		4.00	%		4.00	%		4.00	%		4.00	%
Long-term rate of return on plan assets		7.50	%		8.00	%		8.25	%		N/A			N/A			N/A

Expected payment of future benefits

The estimated future benefit payments contemplated under these plans, reflecting expected future service, as appropriate, are presented in the following table:

	Defined Benefit Pension Plan		Supplementary Pension Plan

2013	$	1.8	$	0.4
2014		2.1		0.4
2015		2.3		0.4
2016		2.5		0.5
2017		2.8		0.7
2018 through 2022		17.5		4.0

Amounts recognized in other comprehensive income and prior service cost

Note 3 shows the amounts included within accumulated other comprehensive income as of December 31, 2012 and 2011 that have not yet been recognized as components of net periodic benefit cost. Of these balances at December 31, 2012, the amounts expected to be amortized in the next fiscal year are $0.1 and $1.2 for the unrecognized prior service cost and unrecognized net actuarial loss, respectively. Excluding the effect of income taxes, the amounts recognized within other comprehensive income and the prior service cost for 2012 and 2011, are as follows:

	2012			2011

Recognized in Other Comprehensive Income:
Net actuarial loss (gain)	$	2.1		$	13.7
Amortization of net actuarial loss (gain)		(1.1	)		(0.1	)
Amortization of prior service cost (credit)		(0.1	)		(0.1	)
Total change in other comprehensive income		0.9			13.5

Fair value of pension plan assets

Fair values of our defined benefit pension plan assets at December 31, by asset category, are as follows:

	Fair Value Measurements as of December 31, 2012
			Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
	Total		Level 1		Level 2		Level 3
Short term investment funds	$	0.6	$	-	$	0.6	$	-
Equity securities:
US equity securities		14.0		1.4		12.6		-
International equity securities		9.5		4.5		5.0		-
AMCOL International common stock		2.1		2.1		-		-
Fixed income securities and bonds
Governmental agencies		0.7		-		0.7		-
Corporate bonds		5.4		5.4		-		-
Guaranteed investment contracts		1.3		-		1.3		-
Other investments
Real estate index funds		0.8		-		0.8		-
Commodities linked funds		0.7		0.7		-		-
Hedge funds		4.0		-		-		4.0
Total		39.1		14.1		21.0		4.0

	Fair Value Measurements as of December 31, 2011
			Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
	Total		Level 1		Level 2		Level 3
Short term investment funds	$	0.7	$	-	$	0.7	$	-
Equity securities:
US equity securities		11.2		-		11.2		-
International equity securities		6.0		2.0		4.0		-
AMCOL International common stock		1.9		1.9		-		-
Fixed income securities and bonds
Governmental agencies		1.0		1.0		-		-
Corporate bonds		5.0		5.0		-		-
Guaranteed investment contracts		2.5		-		2.5		-
Other investments
Real estate index funds		0.6		-		0.6		-
Commodities linked funds		1.7		1.7		-		-
Hedge funds		3.9		-		-		3.9
Total		34.5		11.6		19.0		3.9

Reconciliation of changes in fair value measurements of plan assets

The following is a reconciliation of changes in fair value measurements of plan assets using significant unobservable inputs (Level 3):

	Hedge Funds
Beginning balance at December 31, 2010	$	2.2
Purchases, sales, and settlements		1.8
Actual return on plan assets still held at reporting date		(0.1	)
Ending balance at December 31, 2011		3.9
Purchases, sales, and settlements		-
Actual return on plan assets still held at reporting date		0.1
Ending balance at December 31, 2012		4.0