(17)	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 in 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. It is the Company’s policy to contribute to the domestic pension plan to ensure adequate funds are available in the plan to make benefit payments to plan participants and beneficiaries when required.

In the third quarter of 2014, the Company announced a program to offer a one-time option to elect to receive a voluntary lump-sum pension payout to certain former employees with deferred vested balances in the Company’s U.S. pension plan. As part of this voluntary lump-sum program, the Company settled $17,381 of pension obligations for the U.S. plan with an equal amount paid from plan assets. As a result, the Company recorded settlement losses of $7,170 reflecting the accelerated recognition of unamortized losses in the U.S. pension plan proportionate to the obligation that was settled. The loss on voluntary pension settlement is reflected as a separate line in the consolidated income statement with a corresponding balance sheet reduction in “Accumulated other comprehensive loss.”

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 $941, $731 and $733 in 2014, 2013 and 2012, 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, 2014 and 2013 is $932 and $1,049, 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, 2014 and 2013 is $932 and $1,049, 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, 2014 and 2013 were 49,121, and are included as a reduction of equity. The value of the shares held in trust and the corresponding liability of $1,062 and $876 at December 31, 2014 and 2013, 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, 2014 and 2013 are as follows:

	Pension Plans
	Domestic						SERP						International
	2014			2013			2014			2013			2014			2013
Change in benefit obligation
Benefit obligation, beginning of year	$	70,709		$	79,958		$	3,086		$	3,690		$	25,627		$	27,033
Service cost		-			-			-			-			674			743
Interest cost		3,310			3,057			33			41			884			658
Actuarial loss/(gain)		11,813			(8,269	)		2			(9	)		5,319			(2,314	)
Benefits paid		(3,160	)		(4,037	)		(732	)		(636	)		(763	)		(808	)
Currency translation affect		-			-			-			-			(5,041	)		315
Settlements		(17,847	)		-			-			-			-			-
Benefit obligation, end of year	$	64,825		$	70,709		$	2,389		$	3,086		$	26,700		$	25,627

The plan assets and funded status of the Domestic Pension Plan as of December 31, 2014 and 2013 are as follows:

	2014			2013
Change in plan assets
Fair value of plan assets, beginning of period	$	57,743		$	53,900
Actual return on plan assets		2,605			6,894
Contributions		2,324			986
Benefits paid		(3,160	)		(4,037	)
Settlements		(17,847	)		-
Fair value of plan assets, end of period	$	41,665		$	57,743

Unfunded status		(23,160	)		(12,966	)
Accrued benefit cost, end of period	$	(23,160	)	$	(12,966	)

The unfunded status of the SERP was ($2,389) and ($3,086) as of December 31, 2014 and 2013, respectively. The unfunded status of the International Pension Plan was ($26,700) and ($25,627) as of December 31, 2014 and 2013, respectively.

The amounts recognized in AOCI as of December 31, 2014 and 2013 consist of the following:

	Pension Plans
	Domestic				SERP				International
	2014		2013		2014		2013		2014			2013

Actuarial loss	$	26,042	$	20,373	$	702	$	830	$	9,597		$	4,765
Prior service cost/(benefit)		-		-		172		230		(17	)		(24	)
Total	$	26,042	$	20,373	$	874	$	1,060	$	9,580		$	4,741

The components of net periodic benefit cost are as follows:

	Pension Plans
	Domestic									SERP						International
	2014			2013			2012			2014		2013		2012		2014			2013			2012
Components of net periodic benefit cost
Service cost	$	-		$	-		$	-		$	-	$	-	$	-	$	674		$	743		$	660
Interest cost		3,310			3,057			3,284			33		41		85		884			658			795
Expected return on plan assets		(4,153	)		(3,826	)		(3,674	)		-		-		-		-			-			-
Amortization of prior service cost/(benefit)		-			-			60			57		57		57		(7	)		(7	)		(7	)
Recognized actuarial loss		522			937			864			131		118		76		149			284			200
Settlement loss		7,170			-			-			-		-		-		-			-			-
Net periodic benefit cost	$	6,849		$	168		$	534		$	221	$	216	$	218	$	1,700		$	1,678		$	1,648

The estimated amounts that will be amortized from AOCI into net periodic benefit cost in 2015 are as follows:

	Pension Plans

	Domestic		SERP		International
Actuarial loss	$	811	$	154	$	359
Prior service cost/(benefit)		-		57		(6	)
Total	$	811	$	211	$	353

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

	2014	2013

Discount rate:
Domestic Pension Plan	3.85%	4.80%
SERP	1.35%	1.40%
International Pension Plan	2.40%	3.70%

Rate of compensation increase:
International Pension Plan	2.20%	2.50%

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

	2014	2013	2012

Discount rate:
Domestic Pension Plan	4.80%	3.90%	4.45%
SERP	1.40%	1.35%	2.40%
International Pension Plan	3.70%	3.40%	3.40%

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

Rate of compensation increase:
International Pension Plan	2.20%	2.50%	2.40%

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 $64,825 exceeds plan assets by $23,160 as of December 31, 2014 for the Domestic Pension Plan. The aggregate ABO is $25,459 for the International Pension Plan as of December 31, 2014. The International Pension Plan is unfunded.

The Company expects to contribute approximately $1,900 in cash to the Domestic Pension Plan in 2015. The Company does not expect to contribute cash to its International Pension Plan in 2015.

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

	Pension Plans
	Domestic		SERP		International

2015	$	3,429	$	609	$	689
2016	$	3,401	$	609	$	699
2017	$	3,470	$	609	$	709
2018	$	3,400	$	609	$	767
2019	$	3,482	$	-	$	824
2020-2024	$	18,054	$	-	$	4,865

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 5% - 15% all other investments. Equity securities primarily include investments in large-cap and small-cap companies, U.S. fixed income securities including 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, 2014 using:
Asset Category	Total		(Level 1)		(Level 2)		(Level 3)
Equity securities:
U.S. companies	$	14,513	$	-	$	14,513	$	-
International companies		7,900		-		7,900		-
U.S. fixed income		14,093		-		11,964		2,129
Commodities		3,161		-		3,161		-
TIPS		1,998		-		1,998		-
	$	41,665	$	-	$	39,536	$	2,129

			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

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, 2014:

	Group Annuity Contract

Balance at December 31, 2013	$	2,076
Net investment gain		53
Balance at December 31, 2014	$	2,129