(11) Employee Benefit Plans

The Company has a 401(k) retirement savings plan (the "Mohawk Plan") open to substantially all of its employees within the Mohawk segment, Dal-Tile segment and U.S. based employees of the Unilin segment, who have completed 90 days of eligible service. The Company contributes $.50 for every $1.00 of employee contributions up to a maximum of 6% of the employee's salary based upon each individual participants election. Employee and employer contributions to the Mohawk Plan were $34,595 and $14,541 in 2011, $33,071 and $13,062 in 2010 and $34,838 and $13,822 in 2009, respectively. The Company also made a discretionary contribution to the Mohawk Plan of approximately $1,908 in 2009. The Company discontinued the discretionary match on January 1, 2010.

The Company also has various pension plans covering employees in Belgium, France, and The Netherlands (the "Non-U.S. Plans") that it acquired with the acquisition of Unilin. Benefits under the Non-U.S. Plans depend on compensation and years of service. The Non-U.S. Plans are funded in accordance with local regulations. The Company uses December 31 as the measurement date for its Non-U.S. Plans.

Components of the net periodic benefit cost of the Non-U.S. Plans are as follows:


	2011			2010			2009
Service cost of benefits earned	$	1,708			1,506			1,315
Interest cost on projected benefit obligation		1,400			1,219			1,352
Expected return on plan assets		(1,232	)		(1,025	)		(1,069	)
Amortization of actuarial gain		(26	)		4			(322	)
Effect of curtailments and settlements		—			—			(200	)

Net pension expense	$	1,850			1,704			1,076

Assumptions used to determine net periodic pension expense for the Non-U.S. Plans:


	2011	2010
Discount rate	4.75%	5.00%
Expected rate of return on plan assets	4.00%-5.00%	4.00%-5.00%
Rate of compensation increase	0.00%-3.00%	0.00%-3.00%
Underlying inflation rate	2.00%	2.00%

The obligations, plan assets and funding status of the Non-U.S. Plans were as follows:


	2011			2010
Change in benefit obligation:
Projected benefit obligation at end of prior year	$	26,977			25,468
Cumulative foreign exchange effect		(876	)		(1,850	)
Service cost		1,708			1,506
Interest cost		1,400			1,219
Plan participants contributions		763			720
Actuarial loss		455			863
Benefits paid		(1,196	)		(949	)

Projected benefit obligation at end of year	$	29,231			26,977

Change in plan assets:
Fair value of plan assets at end of prior year	$	24,108			21,841
Cumulative foreign exchange effect		(594	)		(1,599	)
Actual return on plan assets		1,203			2,324
Employer contributions		1,825			1,771
Benefits paid		(1,196	)		(949	)
Plan participant contributions		763			720

Fair value of plan assets at end of year	$	26,109			24,108

Funded status of the plans:
Ending funded status	$	(3,122	)		(2,869	)

Net amount recognized in consolidated balance sheets:
Accrued benefit liability (non-current liability)	$	(3,122	)		(2,869	)
Accumulated other comprehensive income		(663	)		(1,115	)

Net amount recognized	$	(3,785	)		(3,984	)

The Company's net amount recognized in other comprehensive income related to actuarial gains (losses) was $(452), $380 and $(914) for the years ended December 31, 2011, 2010 and 2009, respectively.

Assumptions used to determine the projected benefit obligation for the Non-U.S. Plans were as follows:


	2011	2010
Discount rate	4.50%	4.75%
Rate of compensation increase	0.00%-3.00%	0.00%-3.00%
Underlying inflation rate	2.00%	2.00%

The discount rate assumptions used to account for pension obligations reflect the rates at which the Company believes these obligations will be effectively settled. In developing the discount rate, the Company evaluated input from its actuaries, including estimated timing of obligation payments and yield on investments. The rate of compensation increase for the Non-U.S. Plans is based upon the Company's annual reviews.


	Non-U.S. Plans
	December 31, 2011		December 31, 2010
Plans with accumulated benefit obligations in excess of plan assets:
Projected benefit obligation	$	16,492		17,236
Accumulated benefit obligation		15,496		16,122
Fair value of plan assets		14,703		15,356
Plans with plan assets in excess of accumulated benefit obligations:
Projected benefit obligation	$	12,739		9,741
Accumulated benefit obligation		10,687		8,132
Fair value of plan assets		11,406		8,752

Estimated future benefit payments for the Non-U.S. Plans are $967 in 2012, $909 in 2013, $1,080 in 2014, $1,582 in 2015, $1,476 in 2016 and $9,259 in total for 2017-2021.

The Company expects to make cash contributions of $1,866 to the Non-U.S. Plans in 2012.

The fair value of the Non-U.S. Plans investments were estimated using market observable data. Within the hierarchy of fair value measurements, these investments represent Level 2 fair values. The fair value and percentage of each asset category of the total investments held by the plans as of December 31, 2011 and 2010 were as follows:


	2011		2010
Non-U.S. Plans:
Insurance contracts	$	26,109		24,108



	2011			2010
Non-U.S. Plans:
Insurance contracts		100.0	%		100.0	%

The Company's approach to developing its expected long-term rate of return on pension plan assets combines an analysis of historical investment performance by asset class, the Company's investment guidelines and current and expected economic fundamentals.