EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

The Company has responsibility for a defined benefit plan that covered 20 active non-supervisory Canadian employees as of December 31, 2012. The Company recognizes the over funded or under funded status of the pension plan as an asset or liability. The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligations to current and retired employees.

The following table presents the net periodic pension cost for the years ended December 31, (in thousands):

	2012			2011			2010
Service cost	$	218		$	156		$	144
Interest cost	457			462			421
Expected return on fair value of assets	(452		)	(502		)	(466		)
Actuarial loss	69			35			31
Net periodic pension cost	$	292		$	151		$	130

Weighted average assumptions used to determine pension benefit obligations at year end and net pension cost for the following years were as follows:

	2012		2011		2010
Discount rate	4.40	%	5.40	%	5.75	%
Expected return on fair value of assets	5.75	%	6.50	%	6.75	%
Rate of compensation increase	3.75	%	3.75	%	3.75	%

The long-term rate-of-return-on-assets assumption was determined using a building-block method, which integrates historical inflation, real risk-free rates and risk premiums for the different asset categories forming the plan fund. A weighted average of the above result and the historical return of the plan's fund is then calculated. The current asset mix is assumed to remain constant and a 0.65% adjustment for investment and custodial fees was taken into account.

The accumulated benefit obligation was $9.3 million and $7.7 million at December 31, 2012 and 2011, respectively.

The following table sets forth the changes in benefit obligations, plan assets and the net pension liability accrued on the Company's consolidated balance sheets at December 31, (in thousands):

	2012			2011
Change in benefit obligations:
Benefit obligation at the beginning of year	$	8,227		$	7,933
Service cost	218			156
Interest cost	457			462
Employee contributions	38			50
Actuarial gain	1,283			39
Benefits paid	(511		)	(250		)
Currency translation	197			(163		)
Benefit obligation at end of year	$	9,909		$	8,227

	2012			2011
Change in plan assets:
Fair value of plan assets at beginning of year	$	7,666		$	7,660
Actual return on plan assets	785			102
Employer contributions	471			254
Employee contributions	38			50
Benefits paid	(511		)	(250		)
Currency translation	181			(150		)
Fair value of plan assets at end of year	$	8,630		$	7,666

	2012			2011
Unfunded pension liability (included in other long-term liabilities)	$	(1,279	)	$	(561	)

The Company's pension assets measured at fair value by asset class at December 31, 2012 and 2011 were as follows (in thousands):

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at December 31, 2012
Canadian equities	$	2,520	$	—	$	—	$	2,520
Canadian corporate and other bonds	—		2,106		—		2,106
United States equities	1,502		—		—		1,502
International equities	1,329		—		—		1,329
Canadian government bonds	716		—		—		716
Cash and cash equivalents	457		—		—		457
Total	$	6,524	$	2,106	$	—	$	8,630

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Balance at December 31, 2011
Canadian equities	$	2,146	$	—	$	—	$	2,146
Canadian corporate and other bonds	—		2,146		—		2,146
United States equities	1,304		—		—		1,304
International equities	1,073		—		—		1,073
Canadian government bonds	690		—		—		690
Cash and cash equivalents	307		—		—		307
Total	$	5,520	$	2,146	$	—	$	7,666

Components of net periodic benefit cost and other amounts recognized in other comprehensive income were as follows at December 31, (in thousands):

	2012			2011			2010
Net loss	$	954		$	427		$	111
Amortization of net loss	(69		)	(34		)	(32		)
Total expense recognized in other comprehensive income	$	885		$	393		$	79

Amounts recognized in other comprehensive income during the years ended December 31, 2012, 2011 and 2010 were $2.5 million, $1.6 million and $1.2 million, respectively. The estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $133 thousand.

The Company's investment policy targets up to a 55% allocation to equity securities, a 39% allocation to debt securities, and a 6% allocation to cash. The asset mix is frequently reviewed by the fund manager by examining the domestic and international macroeconomic factors and relative valuation levels of equity versus fixed income markets as well as internal forecasts of interest rate trends. The objective is to add value through longer-term asset mix positioning rather than short-term trading. The portfolio's volatility is kept to a minimum by implementing only incremental asset mix changes. Management believes that this investment policy fits the long-term nature of the pension obligations.

The Company's weighted average asset allocations at December 31, 2012 and 2011 were as follows:

	2012		2011
Canadian equities	29	%	28	%
Canadian corporate bonds	25	%	28	%
United States equities	18	%	17	%
International equities	15	%	14	%
Canadian government bonds	8	%	9	%
Cash and cash equivalents	5	%	4	%
Total	100	%	100	%

The Company expects to contribute $243 thousand to this pension plan in 2013.

Benefit payments including those amounts to be paid out of corporate assets and reflecting future expected service as appropriate, are expected to be paid as follows (in thousands):

Year	Expected benefit payments
2013	$	307
2014	305
2015	337
2016	370
2017	385
Thereafter	2,207

The Company has profit-sharing plans under Section 401(k) of the Internal Revenue Code covering substantially all U.S. employees and a Canadian Registered Retired Savings Plan covering all Canadian employees. Both plans allow employees to make contributions up to a specified percentage of their compensation. The Company makes discretionary partial matching contributions established annually by the Board of Directors. The Company expensed $4.8 million, $3.9 million, and $3.3 million for the years ended December 31, 2012, 2011 and 2010, respectively, related to the U.S. plan and $2.1 million, $1.6 million and $1.3 million for the years ended December 31, 2012, 2011 and 2010, respectively, related to the Canadian plan.