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Benefit Plans and Other Postretirement Benefits
6 Months Ended
Jun. 30, 2014
Benefit Plans and Other Postretirement Benefits  
Benefit Plans and Other Postretirement Benefits

Note 10—Benefit Plans and Other Postretirement Benefits

 

The Company and certain of its domestic subsidiaries have defined benefit pension plans (the “U.S. Plans”), which cover certain U.S. employees and which represent the majority of the assets and benefit obligations of the aggregate defined benefit plans of the Company. The U.S. Plans’ benefits are generally based on years of service and compensation and are generally noncontributory.  Certain U.S. employees not covered by the U.S. Plans are covered by defined contribution plans.  Certain foreign subsidiaries have defined benefit plans covering their employees (the “International Plans” and, together with the U.S. Plans, the “Plans”). The following is a summary, based on the most recent actuarial valuations of the Company’s net cost for pension benefits, of the Plans and other postretirement benefits for the three and six months ended June 30, 2014 and 2013.

 

 

 

Pension Benefits

 

Other Postretirement
Benefits

 

 

 

Three months ended June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Service cost

 

$

2,049

 

$

2,103

 

$

28

 

$

40

 

Interest cost

 

6,035

 

5,107

 

123

 

127

 

Expected return on plan assets

 

(7,123

)

(6,071

)

 

 

Amortization of transition obligation

 

(25

)

(27

)

 

 

Amortization of prior service cost

 

673

 

485

 

 

 

Amortization of net actuarial losses

 

4,022

 

5,897

 

104

 

193

 

Net pension expense

 

$

5,631

 

$

7,494

 

$

255

 

$

360

 

 

 

 

Pension Benefits

 

Other Postretirement
Benefits

 

 

 

Six months ended June 30,

 

 

 

2014

 

2013

 

2014

 

2013

 

Service cost

 

$

4,095

 

$

4,215

 

$

55

 

$

80

 

Interest cost

 

12,052

 

10,314

 

245

 

255

 

Expected return on plan assets

 

(14,255

)

(12,274

)

 

 

Amortization of transition obligation

 

(49

)

(54

)

 

 

Amortization of prior service cost

 

1,346

 

980

 

 

 

Amortization of net actuarial losses

 

8,035

 

11,802

 

210

 

385

 

Net pension expense

 

$

11,224

 

$

14,983

 

$

510

 

$

720

 

 

For the three and six months ended June 30, 2014, the Company made cash contributions to the U.S. Plans of approximately $4,000 and estimates that, based on current actuarial calculations, it will make aggregate cash contributions to the Plans in 2014 of approximately $20,000, the majority of which will be to the U.S. Plans.  The timing and amount of cash contributions in subsequent years will depend on a number of factors, including the investment performance of the assets of the Plans.

 

The Company offers various defined contribution plans for certain U.S. and foreign employees. Participation in these plans is based on certain eligibility requirements. The Company matches the majority of employee contributions to U.S. defined contribution plans with cash contributions up to a maximum of 5% of eligible compensation.  During the six months ended June 30, 2014 and 2013, the total matching contributions to these U.S. defined contribution plans were approximately $1,800 and $1,600, respectively.