Pension Plans

6 Months Ended

Jun. 30, 2011

Pension Plans

Pension Plans

Note 6 – Pension Plans

At June 30, 2011 and December 31, 2010, the Company had pension liabilities of $53.0 million and $58.8 million, respectively, the majority of which were assumed in the EaglePicher Technologies acquisition. The EaglePicher Technologies pension plans consist of four non-contributory defined benefit pension plans. The Technologies Salaried Plan is a defined benefit, cash balance plan that covers EaglePicher Technologies salaried employees hired prior to January 1, 2007. The Technologies Hourly Plan is a defined benefit plan that covers EaglePicher Technologies non-union hourly employees hired prior to January 1, 2007 and union hourly employees hired prior to May 3, 2008. The Company also assumed two frozen defined benefit pension plans. Pension benefits are paid to plan participants directly from pension plan assets.

The Company also has a funded, non-contributory, defined benefit pension plan for certain retired employees in the United States related to the Company's divested SCM business. Pension benefits are paid to plan participants directly from pension plan assets. In addition, the Company has an unfunded obligation to its former chief executive officer in settlement of an unfunded supplemental executive retirement plan ("SERP"). Payments under the SERP are made directly from the Company. Certain non-U.S. employees are covered under other defined benefit plans. These non-U.S. plans are not material.

Set forth below is a detail of the net periodic expense for the U.S. pension defined benefit plans (in thousands):

		$2,697			$2,697			$2,697			$2,697
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Interest cost	$	2,697		$	2,814		$	5,396		$	4,801
Service cost		267			261			535			436
Amortization of unrecognized net loss		97			84			195			168
Expected return on plan assets		(2,575	)		(2,573	)		(5,148	)		(4,361	)
Total expense	$	486		$	586		$	978		$	1,044