Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Pension and Profit-Sharing Benefits

The Company provides a defined contribution profit sharing plan for the benefit of substantially all the Company's domestic salaried and non-union hourly employees. The plan contains both contributory and noncontributory profit sharing arrangements, as defined. Aggregate charges included in the accompanying statement of income under this plan for both continuing and discontinued operations were approximately $5.4 million, $4.5 million and $4.2 million in 2012, 2011 and 2010, respectively. The Company's foreign and union hourly employees participate in defined benefit pension plans.

Postretirement Benefits

The Company provides postretirement medical and life insurance benefits, none of which are pre-funded, for certain of its active and retired employees.

Plan Assets, Expenses and Obligations

Plan assets, expenses and obligations for pension and postretirement benefit plans disclosed herein include both continuing and discontinued operations.

Net periodic pension and postretirement benefit expense (income) recorded in the Company's statement of income for defined benefit pension plans and postretirement benefit plans include the following components:

	Pension Benefit									Postretirement Benefit
	2012			2011			2010			2012			2011			2010
	(dollars in thousands)
Service cost	$	600		$	640		$	600		$	—		$	—		$	—
Interest cost	1,620			1,590			1,570			50			50			70
Expected return on plan assets	(1,720		)	(1,600		)	(1,570		)	—			—			—
Amortization of prior-service cost	—			—			—			(200		)	(270		)	(270		)
Settlement/curtailment	190			—			—			(1,490		)	—			—
Amortization of net (gain)/loss	1,070			720			440			(80		)	(90		)	(50		)
Net periodic benefit expense (income)	$	1,760		$	1,350		$	1,040		$	(1,720	)	$	(310	)	$	(250	)

The estimated net actuarial loss and prior service cost for the defined benefit pension and postretirement benefit plans that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2013 is $1.2 million.

Actuarial valuations of the Company's defined benefit pension and postretirement plans were prepared as of December 31, 2012, 2011 and 2010. Weighted-average assumptions used in accounting for the U.S. defined benefit pension plans and postretirement benefit plans are as follows:

	Pension Benefit						Postretirement Benefit
	2012		2011		2010		2012		2011		2010
Discount rate for obligations	4.24	%	4.78	%	5.50	%	3.69	%	4.54	%	4.66	%
Discount rate for benefit costs	4.78	%	5.50	%	6.13	%	4.54	%	4.66	%	5.25	%
Rate of increase in compensation levels	N/A		N/A		N/A		N/A		N/A		N/A
Expected long-term rate of return on plan assets	7.75	%	7.75	%	8.00	%	N/A		N/A		N/A

The Company utilizes a high-quality (Aa) corporate bond yield curve as the basis for its domestic discount rate for its pension and postretirement benefit plans. Management believes this yield curve removes the impact of including additional required corporate bond yields (potentially considered in the above-median curve) resulting from the uncertain economic climate that does not necessarily reflect the general trend in high-quality interest rates.

Actuarial valuations of the Company's non-U.S. defined benefit pension plans were prepared as of December 31, 2012, 2011 and 2010. Weighted-average assumptions used in accounting for the non-U.S. defined benefit pension plans are as follows:

	Pension Benefit
	2012		2011		2010
Discount rate for obligations	4.50	%	4.80	%	5.50	%
Discount rate for benefit costs	4.80	%	5.50	%	5.90	%
Rate of increase in compensation levels	3.70	%	4.00	%	4.00	%
Expected long-term rate of return on plan assets	5.50	%	7.00	%	7.00	%

The following provides a reconciliation of the changes in the Company's defined benefit pension and postretirement benefit plans' projected benefit obligations and fair value of assets for each of the years ended December 31, 2012 and 2011 and the funded status as of December 31, 2012 and 2011:

	Pension Benefit						Postretirement Benefit
	2012			2011			2012			2011
	(dollars in thousands)
Changes in Projected Benefit Obligations
Benefit obligations at January 1	$	(34,560	)	$	(29,850	)	$	(1,040	)	$	(1,100	)
Service cost	(600		)	(640		)	—			—
Interest cost	(1,620		)	(1,590		)	(50		)	(50		)
Participant contributions	(40		)	(40		)	(10		)	(20		)
Actuarial gain (loss)	(2,900		)	(4,090		)	80			90
Benefit payments	1,890			1,550			50			40
Settlement/curtailment	(190		)	—			—			—
Change in foreign currency	(710		)	100			—			—
Projected benefit obligations at December 31	(38,730		)	(34,560		)	(970		)	(1,040		)
Changes in Plan Assets
Fair value of plan assets at January 1	$	21,280		$	20,150		$	—		$	—
Actual return on plan assets	1,680			470			—			—
Employer contributions	6,130			2,290			40			20
Participant contributions	40			40			10			20
Benefit payments	(1,890		)	(1,550		)	(50		)	(40		)
Change in foreign currency	620			(120		)	—			—
Fair value of plan assets at December 31	27,860			21,280			—			—
Funded status at December 31	$	(10,870	)	$	(13,280	)	$	(970	)	$	(1,040	)

	Pension Benefit						Postretirement Benefit
	2012			2011			2012			2011
	(dollars in thousands)
Amounts Recognized in Balance Sheet
Prepaid benefit cost	$	1,020		$	1,060		$	—		$	—
Current liabilities	(410		)	(390		)	(90		)	(110		)
Noncurrent liabilities	(11,480		)	(13,940		)	(880		)	(930		)
Net liability recognized at December 31	$	(10,870	)	$	(13,270	)	$	(970	)	$	(1,040	)

	Pension Benefit				Postretirement Benefit
	2012		2011		2012			2011
	(dollars in thousands)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
Unrecognized prior-service cost	$	130	$	130	$	—		$	(1,530	)
Unrecognized net loss/(gain)	19,430		17,280		(570		)	(680		)
Total accumulated other comprehensive income (loss) recognized at December 31	$	19,560	$	17,410	$	(570	)	$	(2,210	)

	Pension Benefit						Postretirement Benefit
	2012			2011			2012			2011
	(dollars in thousands)
Accumulated benefit obligations at December 31	$	(36,320	)	$	(32,320	)	$	(970	)	$	(1,040	)
Plans with Benefit Obligation Exceeding Plan Assets
Benefit obligation	$	(37,660	)	$	(33,470	)	$	(970	)	$	(1,040	)
Plan assets	25,770			19,140			—			—
Benefit obligation in excess of plan assets	$	(11,890	)	$	(14,330	)	$	(970	)	$	(1,040	)

The assumptions regarding discount rates and expected return on plan assets can have a significant impact on amounts reported for benefit plans. A 25 basis point change in benefit obligation discount rates or 50 basis point change in expected return on plan assets would have the following affect:

	December 31, 2012 Benefit Obligation						2012 Expense
	Pension			Postretirement Benefit			Pension			Postretirement Benefit
	(dollars in thousands)
Discount rate
25 basis point increase	$	(1,380	)	$	(20	)	$	(110	)	$	—
25 basis point decrease	$	1,450		$	20		$	110		—
Expected return on assets
50 basis point increase	N/A			N/A			$	(150	)	N/A
50 basis point decrease	N/A			N/A			$	150		N/A

The Company expects to make contributions of approximately $3.0 million to fund its pension plans and $0.1 million to fund its postretirement benefit payments during 2013.

Plan Assets

The Company's overall investment goal is to provide for capital growth with a moderate level of volatility by investing assets in targeted allocation ranges. Specific long term investment goals include total investment return, diversity to reduce volatility and risk, and to achieve an asset allocation profile that reflects the general nature and sensitivity of the plans' liabilities. Investment goals are established after a comprehensive review of current and projected financial statement requirements, plan assets and liability structure, market returns and risks as well as special requirements of the plans. The Company reviews investment goals and actual results annually to determine whether stated objectives are still relevant and the continued feasibility of achieving the objectives.

The actual weighted average asset allocation of the Company's domestic and foreign pension plans' assets at December 31, 2012 and 2011 and target allocations by class, were as follows:

	Domestic Pension						Foreign Pension
			Actual						Actual
	Target		2012		2011		Target		2012		2011
Equity securities	50%-70%		61	%	57	%	40	%	30	%	35	%
Fixed income securities	30%-50%		37	%	37	%	60	%	49	%	65	%
Cash and cash equivalents	—		2	%	6	%	—		21	%	—	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

Actual allocations to each asset vary from target allocations due to periodic investment strategy changes, market value fluctuations and the timing of benefit payments and contributions. The expected long-term rate of return for both the domestic and foreign plans' total assets is based on the expected return of each of the above categories, weighted based on the target allocation for each class. Actual allocation is reviewed regularly and rebalancing investments to their targeted allocation range is performed when deemed appropriate. During 2012, the Company made higher than expected contributions to one of its foreign defined benefit plans as part of a recovery plan to reduce the plan's net funding deficit.  As of December 31, 2012, the Company had not yet completed its investment allocation strategy with respect to the incremental contributions, with the funds remaining in a cash account and causing a deviation from the targeted asset allocation.

In managing the plan assets, the Company reviews and manages risk associated with the funded status risk, interest rate risk, market risk, liquidity risk and operational risk. Investment policies reflect the unique circumstances of the respective plans and include requirements designed to mitigate these risks by including quality and diversification standards.

The following table summarizes the level under the fair value hierarchy (see Note 3) that the Company's pension plan assets are measured on a recurring basis as of December 31, 2012:

	Total		Level 1		Level 2		Level 3
Equity Securities
Investment funds	$	11,740	$	4,300	$	7,440	$	—
Fixed Income Securities
Investment funds	8,120		—		8,120		—
Government bonds	2,400		2,400		—		—
Government agencies	440		440		—		—
Corporate bonds	1,040		1,040		—		—
Other(a)	350		110		240		—
Cash and Cash Equivalents
Short term investment funds	3,770		150		3,620		—
Total	$	27,860	$	8,440	$	19,420	$	—

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^(a)  Comprised of mortgage-backed and asset backed securities.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

	Pension Benefit		Postretirement Benefit
	(dollars in thousands)
December 31, 2013	$	1,800	$	90
December 31, 2014	$	1,850	$	90
December 31, 2015	$	1,890	$	80
December 31, 2016	$	1,960	$	80
December 31, 2017	$	2,060	$	60
Years 2018-2022	$	11,630	$	250

The assumed health care cost trend rate used for purposes of calculating the Company's postretirement benefit obligation in 2012 was 7.5% for both pre-65 and post-65 plan participants, decreasing to an ultimate rate in 2018 of 5.0%. A one-percentage point change in the assumed health care cost trend would have the following effects:

	One Percentage-Point Increase		One Percentage-Point Decrease
	(dollars in thousands)
Effect on total service and interest cost	$	—	$	—
Effect on postretirement benefit obligation	$	70	$	(60	)