Postretirement Benefits

12 Months Ended

Sep. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Postretirement Benefits

Postretirement Benefits

Defined Benefit Pension Plans

The Company has two active defined benefit pension plans (collectively, the “Plans”). The Plans cover substantially all of the Company’s employees in Switzerland and Taiwan. Retirement benefits are generally earned based on years of service and compensation during active employment; however, the level of benefits varies within the Plans. Eligibility is determined in accordance with local statutory requirements.

In connection with actions taken under the Company’s restructuring programs, the number of employees accumulating benefits under the Switzerland Plan has declined significantly. As a result, a partial settlement event occurred and resulted in accelerated amortization of approximately $0.1 million of prior pension losses. The settlement loss, recorded in the quarter ended December 31, 2012, is included in restructuring and other charges in the Consolidated Statements of Operations.

In addition, the Company had a plan that was acquired through its purchase of Helix Technology Corporation that covered certain employees in the United States. The Company settled its pension obligation with the participants in the quarter ended September 30, 2012 which resulted in accelerated cash payments of approximately $6.4 million and $8.9 million of accelerated amortization of prior pension losses which is included as a pension settlement charge in the Consolidated Statements of Operations.

The Company uses a September 30th measurement date in the determination of net periodic benefit costs, benefit obligations and the value of plan assets for all plans. The following tables set forth the funded status and amounts recognized in the Company’s Consolidated Balance Sheets at September 30, 2013 and 2012 (in thousands):

	September 30,
	2013			2012
Benefit obligation at beginning of year	$	10,181		$	28,068
Service cost	604			787
Interest cost	148			984
Actuarial (gain) loss	(670		)	1,235
Benefits paid	(1,421		)	(2,203		)
Settlement loss	—			1,040
Settlements paid	(1,383		)	(18,928		)
Curtailment gain	(500		)	—
Foreign currency translation	148			(802		)
Benefit obligation at end of year	$	7,107		$	10,181

	September 30,
	2013			2012
Fair value of assets at beginning of year	$	8,015		$	20,173
Actual return on plan assets	304			1,446
Disbursements	(1,573		)	(2,463		)
Employer contributions	292			7,684
Employee contributions	194			334
Settlements paid	(1,383		)	(18,928		)
Foreign currency translation	147			(231		)
Fair value of assets at end of year	$	5,996		$	8,015

	September 30,
	2013			2012
Funded status/accrued benefit liability	$	(1,111	)	$	(2,166	)

The following table provides pension amounts recorded within the account line items of the Company’s consolidated balance sheets (in thousands):

	September 30,
	2013		2012
Accrued compensation and benefits	$	296	$	478
Long-term pension liability	815		1,688

In addition, accumulated other comprehensive income at September 30, 2013 and 2012 includes unrecognized net actuarial gains (losses) of $0.5 million and $(1.1) million, respectively.

The components of the Company’s net pension cost for the years ended September 30, 2013, 2012 and 2011 is as follows (in thousands):

	Year ended September 30,
	2013			2012			2011
Service cost	$	604		$	787		$	216
Interest cost	148			984			796
Expected return on assets	(247		)	(1,072		)	(764		)
Amortization of losses	4			620			458
Other	160			—			—
Net periodic pension cost	669			1,319			706
Settlement loss	87			8,937			—
Total pension cost	$	756		$	10,256		$	706

Other changes in Plan assets and benefit obligations recognized in other comprehensive loss (in thousands):

	September 30,
	2013			2012
Net (gain) loss	$	(791	)	$	1,226
Amortization of net loss	(3		)	(620		)
Curtailment loss	(675		)	—
Settlement loss	(87		)	(8,937		)
Total recognized in other comprehensive income (loss)	(1,556		)	(8,331		)
Total recognized in net periodic pension cost and other comprehensive income (loss)	$	(887	)	$	(7,012	)

Certain information for the Plans with respect to accumulated benefit obligations follows (in thousands):

	September 30,
	2013		2012
Projected benefit obligation	$	7,107	$	10,181
Accumulated benefit obligation	6,272		8,906
Fair value of plan assets	5,996		8,015

Weighted-average assumptions used to determine net cost at September 30, 2013, 2012 and 2011 follows:

	Year Ended September 30,
	2013		2012		2011
Discount rate	2.15	%	3.51	%	3.99	%
Expected return on plan assets	2.17	%	2.18	%	4.68	%
Rate of compensation increase	1.89	%	1.84	%	1.79	%

The expected return on plan assets is based on an evaluation of fixed income yield curves and equity return assumption studies applied to the asset allocation.

Weighted-average assumptions used to determine the pension obligation at September 30, 2013, 2012 and 2011 follows:

	Year Ended September 30,
	2013		2012		2011
Discount rate	2.15	%	1.89	%	3.76	%
Rate of compensation increase	1.89	%	1.84	%	1.79	%

Compensation increase assumptions for the periodic pension cost and pension obligation apply to the Switzerland Plan and Taiwan Plan only.

The Company bases its determination of pension expense or benefit on a market-related valuation of assets, which reduces year-to-year volatility. This market-related valuation recognizes investment gains or losses over a five-year period from the year in which they occur. Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return on assets. Since the market-related value of assets recognizes gains or losses over a five-year period, the future value of assets will be impacted as previously deferred gains or losses are recognized. As of September 30, 2013, under the Plans, the Company had cumulative investment gains of approximately $0.1 million, which remain to be recognized in the calculation of the market-related value of assets. The Company also had cumulative other actuarial gains of $0.4 million at September 30, 2013, which are amortized into net periodic benefit costs over the average remaining service period of active participants in the plans.

Plan Assets

The fair value of plan assets for the Switzerland Plan and Taiwan Plan were $5.5 million and $0.5 million, respectively, at September 30, 2013. As is customary with Swiss pension plans, the assets of the Switzerland Plan are invested in a collective fund with multiple employers through a Swiss insurance company. The Company does not have any rights to the assets of the plan. Investment holdings are primarily in highly rated debt securities. The assets of the Taiwan Plan are invested with a trustee that has been selected by the Taiwan government. The Company has no investment authority over the assets of either the Switzerland Plan or the Taiwan Plan. The asset allocation of the plan assets at September 30, 2013 was as follows:

	Percentage of Plan Assets at September 30, 2013
Debt securities	75	%
Equity securities	5
Cash	2
Other	18
	100	%

The fair value of pension assets by asset category and by level at September 30, 2013 were as follows (in thousands):

	As of September 30, 2013
	Level 1		Level 2		Level 3		Total
Swiss Life collective foundation	$	—	$	5,474	$	—	$	5,474
Taiwan collective trust	—		522		—		522
Total	$	—	$	5,996	$	—	$	5,996

See "Note 5. Fair Value Measurements" for a description of the levels of inputs used to determine fair value measurements.

During the first quarter of fiscal year 2013, the Company made contributions of $0.1 million to the Switzerland Plan in connection with the settlement, which was in addition to the $0.2 million of required minimum contributions made to both Plans throughout fiscal year 2013. The Company made required minimum contributions throughout fiscal year 2013 to all of its plans of $0.3 million. The Company expects to contribute $0.2 million to its plans in fiscal 2014 to meet minimum funding targets.

Expected benefit payments over the next ten years are anticipated to be paid as follows (in thousands):

2014	$	232
2015	56
2016	57
2017	58
2018	59
2019-2023	583

Defined Contribution Plans

The Company sponsors defined contribution plans that meet the requirements of Section 401(k) of the Internal Revenue Code. All United States employees of the Company who meet minimum age and service requirements are eligible to participate in the plan. The plan allows employees to invest, on a pre-tax basis, a percentage of their annual salary subject to statutory limitations.

The Company’s contribution expense for worldwide defined contribution plans was $3.2 million, $3.1 million and $2.9 million for the years ended September 30, 2013, 2012 and 2011, respectively.