Pensions

6 Months Ended

Jun. 30, 2011

Note 7. Pensions

Effective January 20, 2011, the defined benefit pension plan covering the employees at our Eltmann Plant is under control of the bankruptcy trustee and has been or will be taken over by the German government’s pension security fund. The plan is no longer a responsibility of NN, resulting in a reduction of Accrued pension liabilities of $5,623 on January 20, 2011. We have no remaining pension obligations. (See Note 1 of the Notes to Condensed Consolidated Financial Statements).

Severance Indemnity

In accordance with Italian law, the Company has an unfunded severance plan covering our Pinerolo Plant employees under which all employees at that location are entitled to receive severance indemnities upon termination of their employment. The table below summarizes the changes to the severance indemnity for the three and six month periods ended June 30, 2011 and 2010:


	Three months ended						Six months ended
	June 30,						June 30,
(In Thousands of Dollars)	2011			2010			2011			2010

Beginning balance	$	7,658		$	7,488		$	7,115		$	8,015
Amounts accrued		311			278			651			575
Payments to employees		(120	)		(235	)		(134	)		(330	)
Payments to government managed plan		(168	)		(173	)		(403	)		(387	)
Currency impacts		133			635			585			120

Ending balance	$	7,814		$	7,993		$	7,814		$	7,993

Service and Early Retirement Provisions

We have two plans that cover our Veenendaal Plant employees. One plan provides an award for employees who achieve 25 or 40 years of service and the other plan is an award for employees upon retirement. These plans are both unfunded and the benefits are based on years of service and rate of compensation at the time the award is paid. The table below summarizes the combined changes in the two plans during the three and six month periods ended June 30, 2011 and 2010.


	Three months ended						Six months ended
	June 30,						June 30,
(In Thousands of Dollars)	2011			2010			2011			2010

Beginning balance	$	835		$	768		$	749		$	805
Service cost		6			14			26			33
Interest cost		17			3			38			40
Benefits paid		(33	)		1			(36	)		(39	)
Currency impacts		15			(67	)		63			(120	)

Ending balance	$	840		$	719		$	840		$	719

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details