(16)	Retirement Plans

Domestic Pension Plan

The Company maintains a defined-benefit pension plan (“Domestic Pension Plan”) for certain salaried and certain hourly employees. The Company also has a Supplemental Executive Retirement Plan (“SERP”) for key executives. This plan is non-qualified and unfunded. Benefits accruing under both plans were frozen as of August 31, 2007. In July 2008, the Board of Directors of the Company amended the SERP to allow for lump sum payments effective January 1, 2009. The lump sum value as of January 1, 2009 will be paid in 10 equal actuarial equivalent installments through 2018. For the Domestic Pension Plan, the Company's policy is to fund pension costs to the full extent required by the Internal Revenue Code.

International Pension Plans

A foreign subsidiary of the Company maintains a pension plan (“International Pension Plan”) for its employees that conforms to the common practice in that country. Based on local laws and customs, this plan is unfunded.

Savings Plan

Cambrex makes available to all domestic employees a savings plan. Employee contributions are matched in part by Cambrex. The cost of this plan amounted to $731, $733 and $604 in 2013, 2012 and 2011, respectively.

Other

The Company has a non-qualified Deferred Compensation Plan for Key Executives (“The Plan”). Under this Plan, officers and key employees may elect to defer all or any portion of their pre-tax earnings or elect to defer receipt of the Company’s stock which would otherwise have been issued upon the exercise of the Company’s options. Included within other liabilities at December 31, 2013 and 2012 is $1,049 and $1,118, respectively, representing the Company’s obligation under the plan. The Company invests in certain mutual funds and as such, included within other assets at December 31, 2013 and 2012 is $1,049 and $1,118, respectively, representing the fair value of these funds. The fair values of these mutual funds are based on quoted market prices in active markets (Level 1). The number of Cambrex shares held in trust under this plan as of December 31, 2013 and 2012 were 49,121, and are included as a reduction of equity. The value of the shares held in trust and the corresponding liability of $876 and $559 at December 31, 2013 and 2012, respectively, have also been recorded in equity. The Plan is not funded by the Company, but the Company has established a Deferred Compensation Trust Fund which holds the shares issued. Effective December 2011 the Board of Directors suspended employee contributions to this Plan.

The benefit obligations as of December 31, 2013 and 2012 are as follows:

	Pension Plans

	Domestic						SERP						International
	2013			2012			2013			2012			2013			2012
Change in benefit obligation
Benefit obligation, beginning of year	$	79,958		$	75,430		$	3,690		$	4,153		$	27,033		$	23,020
Service cost		-			-			-			-			743			660
Interest cost		3,057			3,284			41			85			658			795
Actuarial (gain)/loss		(8,269	)		4,699			(9	)		88			(2,314	)		1,852
Benefits paid		(4,037	)		(3,455	)		(636	)		(636	)		(808	)		(755	)
Currency translation affect		-			-			-			-			315			1,461
Benefit obligation, end of year	$	70,709		$	79,958		$	3,086		$	3,690		$	25,627		$	27,033

The plan assets and funded status of the Domestic Pension Plan as of December 31, 2013 and 2012 are as follows:

	2013			2012
Change in plan assets
Fair value of plan assets, beginning of period	$	53,900		$	49,104
Actual return on plan assets		6,894			5,945
Contributions		986			2,306
Benefits paid		(4,037	)		(3,455	)
Fair value of plan assets, end of period	$	57,743		$	53,900

Unfunded status		(12,966	)		(26,058	)
Accrued benefit cost, end of period	$	(12,966	)	$	(26,058	)

The unfunded status of the SERP was ($3,086) and ($3,690) as of December 31, 2013 and 2012, respectively. The unfunded status of the International Pension Plan was ($25,627) and ($27,033) as of December 31, 2013 and 2012, respectively.

The amounts recognized in AOCI as of December 31, 2013 and 2012 consist of the following:

	Pension Plans

	Domestic				SERP				International
	2013		2012		2013		2012		2013			2012

Actuarial loss	$	20,373	$	32,646	$	830	$	958	$	4,765		$	7,354
Prior service cost/(benefit)		-		-		230		287		(24	)		(31	)
Total	$	20,373	$	32,646	$	1,060	$	1,245	$	4,741		$	7,323

The components of net periodic benefit cost are as follows:

	Pension Plans
	Domestic									SERP						International
	2013			2012			2011			2013		2012		2011		2013			2012			2011
Components of net periodic benefit cost
Service cost	$	-		$	-		$	-		$	-	$	-	$	-	$	743		$	660		$	611
Interest cost		3,057			3,284			3,462			41		85		150		658			795			944
Expected return on plan assets		(3,826	)		(3,674	)		(3,787	)		-		-		-		-			-			-
Amortization of prior service cost/(benefit)		-			60			436			57		57		57		(7	)		(7	)		(7	)
Recognized actuarial loss		937			864			458			118		76		49		284			200			111
Net periodic benefit cost	$	168		$	534		$	569		$	216	$	218	$	256	$	1,678		$	1,648		$	1,659

The estimated amounts that will be amortized from AOCI into net periodic benefit cost in 2014 are as follows:

	Pension Plans

	Domestic		SERP		International
Actuarial loss	$	522	$	131	$	160
Prior service cost/(benefit)		-		57		(7	)
Total	$	522	$	188	$	153

Major assumptions used in determining the benefit obligations are presented in the following table:

	2013			2012

Discount rate:
Domestic Pension Plan		4.80	%		3.90	%
SERP		1.40	%		1.35	%
International Pension Plan		3.70	%		3.40	%

Rate of compensation increase:
International Pension Plan		2.50	%		2.40	%

Major assumptions used in determining the net benefit cost are presented in the following table:

	2013			2012			2011

Discount rate:
Domestic Pension Plan		3.90	%		4.45	%		5.35	%
SERP		1.35	%		2.40	%		3.40	%
International Pension Plan		3.40	%		3.40	%		4.40	%

Expected return on plan assets:
Domestic Pension Plan		7.25	%		7.50	%		7.50	%

Rate of compensation increase:
International Pension Plan		2.50	%		2.40	%		2.80	%

In making its assumption for the long-term rate of return on plan assets, the Company has utilized historical rates earned on securities allocated consistently with its investments. The discount rate was selected by projecting cash flows associated with plan obligations, which were matched to a yield curve of high quality corporate bonds. The Company then selected the single rate that produced the same present value as if each cash flow were discounted by the corresponding spot rate on the yield curve.

The aggregate Accumulated Benefit Obligation (“ABO”) of $70,709 exceeds plan assets by $12,966 as of December 31, 2013 for the Domestic Pension Plan. The aggregate ABO is $24,243 for the International Pension Plan as of December 31, 2013. The International Pension Plan is unfunded.

The Company expects to contribute approximately $2,700 in cash to the Domestic Pension Plan in 2014. The Company does not expect to contribute cash to its International Pension Plan in 2014.

The following benefit payments are expected to be paid out of the plans:

	Pension Plans
	Domestic		SERP		International

2014	$	3,527	$	731	$	824
2015	$	3,478	$	609	$	836
2016	$	3,486	$	609	$	837
2017	$	3,628	$	609	$	858
2018	$	3,654	$	609	$	934
2019-2023	$	21,028		-	$	5,681

The investment objective for the Domestic Pension Plan’s assets is to achieve long-term growth with exposure to risk at an appropriate level. The Company invests in a diversified asset mix consisting of equities (domestic and international) and taxable fixed income securities. Assets are managed to obtain the highest total rate of return in keeping with a moderate level of risk. The target allocations for plan assets are 30% - 80% equity securities, 25% - 45% U.S. fixed income and 0% - 10% all other investments. Equity securities primarily include investments in large-cap and small-cap companies, U.S. Fixed income securities include high quality corporate bonds and U.S. government securities. Other types of investments include real asset funds, consisting primarily of investments in commodities, and Treasury Inflation-Protected Securities (“TIPS”).

The fair values of the Company’s pension plan assets by asset category are as follows:

			Fair Value Measurements at December 31, 2013 using:
Asset Category	Total		(Level 1)		(Level 2)		(Level 3)
Equity securities:
U.S. companies	$	20,633	$	-	$	20,633	$	-
International companies		11,157		-		11,157		-
U.S. fixed income		18,736		-		16,660		2,076
Commodities		4,436		-		4,436		-
TIPS		2,781		-		2,781		-
	$	57,743	$	-	$	55,667	$	2,076

			Fair Value Measurements at December 31, 2012 using:
Asset Category	Total		(Level 1)		(Level 2)		(Level 3)
Equity securities:
U.S. companies	$	19,238	$	-	$	19,238	$	-
International companies		10,337		-		10,337		-
U.S. fixed income		17,625		-		15,465		2,160
Commodities		4,131		-		4,131		-
TIPS		2,569		-		2,569		-
	$	53,900	$	-	$	51,740	$	2,160

The following table sets forth a summary of the changes in the fair value of the Domestic Plan’s Level 3 assets, which are annuity contracts with an insurance company, for the year ended December 31, 2013:

	Group Annuity Contract

Balance at December 31, 2012	$	2,160
Net investment loss		(84	)
Balance at December 31, 2013	$	2,076