EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2012

EMPLOYEE BENEFIT PLANS

9. EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plans

The Company sponsors defined benefit pension plans that cover certain U.S., Canadian, German, and United Kingdom employees and which provide benefits of stated amounts for each year of service of the employee. The Company uses a December 31 measurement date for the plans.

The following tables provide information regarding the Company’s defined benefit pension plans summarized by U.S. and international components.

Obligations and Funded Status

	U.S.						International
In thousands	2012			2011			2012			2011
Change in projected benefit obligation
Obligation at beginning of year	$	(52,351	)	$	(47,623	)	$	(144,641	)	$	(141,151	)
Service cost		(379	)		(309	)		(2,006	)		(3,204	)
Interest cost		(2,113	)		(2,428	)		(7,114	)		(7,575	)
Employee contributions		—			—			(419	)		(443	)
Plan curtailments and amendments		—			—			—			1,025
Benefits paid		3,548			3,585			9,335			8,913
Expenses and premiums paid		—			—			541			651
Acquisition		—			—			(1,050	)		—
Actuarial gain (loss)		(931	)		(5,576	)		(13,360	)		(5,377	)
Effect of currency rate changes		—			—			(4,793	)		2,520
Obligation at end of year	$	(52,226	)	$	(52,351	)	$	(163,507	)	$	(144,641	)
Change in plan assets
Fair value of plan assets at beginning of year	$	39,951		$	39,738		$	131,327		$	125,568
Actual return on plan assets		4,484			1,105			10,621			673
Employer contributions		1,516			2,693			6,739			16,777
Employee contributions		—			—			419			443
Benefits paid		(3,548	)		(3,585	)		(9,335	)		(8,913	)
Expenses and premiums paid		—			—			(541	)		(651	)
Acquisition		—			—			667			—
Effect of currency rate changes		—			—			4,192			(2,570	)
Fair value of plan assets at end of year	$	42,403		$	39,951		$	144,089		$	131,327
Funded status
Fair value of plan assets	$	42,403		$	39,951		$	144,089		$	131,327
Benefit obligations		(52,226	)		(52,351	)		(163,507	)		(144,641	)
Funded Status	$	(9,823	)	$	(12,400	)	$	(19,418	)	$	(13,314	)
Amounts recognized in the statement of financial position consist of:
Noncurrent assets	$	—		$	—		$	930		$	2,582
Current liabilities		—			—			(47	)		(46	)
Noncurrent liabilities		(9,823	)		(12,400	)		(20,301	)		(15,850	)
Net amount recognized	$	(9,823	)	$	(12,400	)	$	(19,418	)	$	(13,314	)
Amounts recognized in accumulated other comprehensive income (loss) consist of:
Initial net obligation	$	—		$	—		$	(801	)	$	(924	)
Prior service costs		(98	)		(160	)		(390	)		(539	)
Net actuarial loss		(30,557	)		(33,983	)		(45,824	)		(37,244	)
Net amount recognized	$	(30,655	)	$	(34,143	)	$	(47,015	)	$	(38,707	)

The aggregate accumulated benefit obligation for the U.S. pension plans was $51.4 million and $51.7 million as of December 31, 2012 and 2011, respectively. The aggregate accumulated benefit obligation for the international pension plans was $154.2 million and $133.9 million as of December 31, 2012 and 2011, respectively.

	U.S.						International
In thousands	2012			2011			2012			2011
Information for pension plans with accumulated benefit obligations in excess of plan assets:
Projected benefit obligation	$	(52,226	)	$	(52,351	)	$	(125,145	)	$	(101,228	)
Accumulated benefit obligation		(51,428	)		(51,735	)		(115,885	)		(94,505	)
Fair value of plan assets		42,403			39,951			104,797			86,199
Information for pension plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation	$	(52,226	)	$	(52,351	)	$	(125,145	)	$	(110,860	)
Fair value of plan assets		42,403			39,951			104,797			94,965

Components of Net Periodic Benefit Costs

	U.S.									International
In thousands	2012			2011			2010			2012			2011			2010
Service cost	$	379		$	309		$	267		$	2,006		$	3,204		$	2,915
Interest cost		2,113			2,428			2,488			7,114			7,575			7,531
Expected return on plan assets		(3,095	)		(3,331	)		(3,205	)		(8,132	)		(8,477	)		(7,807	)
Amortization of initial net obligation and prior service cost		62			62			62			322			380			380
Amortization of net loss		2,968			2,502			1,590			2,412			1,665			1,524
Curtailment loss recognized		—			—			—			—			312			1,261
Settlement loss recognized		—			—			—			1,149			712			1,030
Net periodic benefit cost	$	2,427		$	1,970		$	1,202		$	4,871		$	5,371		$	6,834

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2012 are as follows:

In thousands	U.S.		International
Net gain (loss) arising during the year	$	458	$	(10,871	)
Effect of exchange rates		—		(1,320	)
Amortization, settlement, or curtailment recognition of net transition obligation		—		162
Amortization or curtailment recognition of prior service cost		62		160
Amortization or settlement recognition of net loss		2,968		3,561
Total recognized in other comprehensive income (loss)	$	3,488	$	(8,308	)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	1,061	$	(13,179	)

The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also the net periodic benefit cost for the following year.

	U.S.									International
	2012			2011			2010			2012			2011			2010
Discount rate		3.90	%		4.30	%		5.20	%		4.30	%		4.96	%		5.43	%
Expected return on plan assets		7.50	%		7.50	%		8.00	%		6.09	%		6.12	%		6.72	%
Rate of compensation increase		3.00	%		3.00	%		3.00	%		3.10	%		3.21	%		3.17	%

The discount rate is based on settling the pension obligation with high grade, high yield corporate bonds, and the rate of compensation increase is based on actual experience. The expected return on plan assets is based on historical performance as well as expected future rates of return on plan assets considering the current investment portfolio mix and the long-term investment strategy.

As of December 31, 2012 the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2013.

In thousands	U.S.		International
Net transition obligation	$	—	$	166
Prior service cost		62		161
Net actuarial loss		3,294		3,216
	$	3,356	$	3,543

Pension Plan Assets

The Company has established formal investment policies for the assets associated with our pension plans. Objectives include maximizing long-term return at acceptable risk levels and diversifying among asset classes. Asset allocation targets are based on periodic asset liability study results which help determine the appropriate investment strategies. The investment policies permit variances from the targets within certain parameters. The plan assets consist primarily of equity security funds, debt security funds, and temporary cash and cash equivalent investments. The assets held in these funds are generally passively managed and are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. Generally, all plan assets are considered Level 2 based on the fair value valuation hierarchy (See Note 17 “Fair Value Measurement” included herein). Plan assets by asset category at December 31, 2012 and 2011 are as follows:

	U.S.				International
In thousands	2012		2011		2012		2011
Pension Plan Assets
Equity security funds	$	21,081	$	19,669	$	77,715	$	76,679
Debt security funds and other		20,785		19,650		65,674		53,396
Cash and cash equivalents		537		632		700		1,252
Fair value of plan assets	$	42,403	$	39,951	$	144,089	$	131,327

The U.S. pension plan has a target asset allocation of 50% equity securities and 50% debt securities. The international pension plans have target asset allocations of 50% equity securities and 50% debt securities. Investment policies are determined by the respective Plan’s Pension Committee and set forth in its Investment Policy. Rebalancing of the asset allocation occurs on a quarterly basis.

Cash Flows

The Company’s funding methods are based on governmental requirements and differ from those methods used to recognize pension expense. The Company expects to contribute $4.9 million to the international plans and does not expect to make a contribution to the U.S. plans during 2013.

Benefit payments expected to be paid to plan participants are as follows:

In thousands	U.S.		International
Year ended December 31,
2013	$	3,550	$	7,073
2014		3,545		7,191
2015		3,585		7,578
2016		3,497		6,976
2017		3,525		7,195
2018 through 2022		17,358		41,292

Post Retirement Benefit Plans

In addition to providing pension benefits, the Company has provided certain unfunded postretirement health care and life insurance benefits for a portion of North American employees. The Company is not obligated to pay health care and life insurance benefits to individuals who had retired prior to 1990.

The Company uses a December 31 measurement date for all post retirement plans. The following tables provide information regarding the Company’s post retirement benefit plans summarized by U.S. and international components.

Obligations and Funded Status

	U.S.						International
In thousands	2012			2011			2012			2011
Change in projected benefit obligation
Obligation at beginning of year	$	(33,464	)	$	(31,614	)	$	(4,003	)	$	(4,349	)
Service cost		(24	)		(31	)		(45	)		(56	)
Interest cost		(1,387	)		(1,610	)		(201	)		(231	)
Benefits paid		1,197			1,614			270			303
Actuarial gain (loss)		(129	)		(1,823	)		(228	)		241
Effect of currency rate changes		—			—			(89	)		89
Obligation at end of year	$	(33,807	)	$	(33,464	)	$	(4,296	)	$	(4,003	)
Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—		$	—		$	—
Employer contributions		1,197			1,614			270			303
Benefits paid		(1,197	)		(1,614	)		(270	)		(303	)
Fair value of plan assets at end of year	$	—		$	—		$	—		$	—
Funded status
Fair value of plan assets	$	—		$	—		$	—		$	—
Benefit obligations		(33,807	)		(33,464	)		(4,296	)		(4,003	)
Funded status	$	(33,807	)	$	(33,464	)	$	(4,296	)	$	(4,003	)
	U.S.						International
In thousands	2012			2011			2012			2011
Amounts recognized in the statement of financial position consist of:
Current liabilities	$	(1,509	)	$	(1,555	)	$	(330	)	$	(325	)
Noncurrent liabilities		(32,298	)		(31,909	)		(3,966	)		(3,678	)
Net amount recognized	$	(33,807	)	$	(33,464	)	$	(4,296	)	$	(4,003	)
Amounts recognized in accumulated other comprehensive income (loss) consist of:
Initial net obligation	$	—		$	—		$	—		$	—
Prior service credit		12,663			15,271			265			495
Net actuarial (loss) gain		(29,719	)		(31,380	)		753			1,049
Net amount recognized	$	(17,056	)	$	(16,109	)	$	1,018		$	1,544

Components of Net Periodic Benefit Cost

	U.S.									International
In thousands	2012			2011			2010			2012			2011			2010
Service cost	$	24		$	31		$	45		$	45		$	56		$	60
Interest cost		1,387			1,610			1,599			201			231			300
Amortization of initial net obligation and prior service credit		(2,608	)		(2,661	)		(2,563	)		(240	)		(243	)		(225	)
Amortization of net loss (gain)		1,790			1,761			1,378			(90	)		(142	)		(50	)
Net periodic benefit (credit) cost	$	593		$	741		$	459		$	(84	)	$	(98	)	$	85

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2012 are as follows:

In thousands	U.S.			International
Net gain (loss) arising during the year	$	(129	)	$	(228	)
Effect of exchange rates		—			32
Amortization or curtailment recognition of prior service cost		(2,608	)		(240	)
Amortization or settlement recognition of net loss (gain)		1,790			(90	)
Total recognized in other comprehensive (loss) income	$	(947	)	$	(526	)
Total recognized in net periodic benefit cost and other comprehensive (loss) income	$	(1,540	)	$	(442	)

The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also the net periodic benefit cost for the following year. The discount rate is based on settling the pension obligation with high grade, high yield corporate bonds.

	U.S.									International
	2012			2011			2010			2012			2011			2010
Discount rate		3.90	%		4.30	%		5.20	%		4.30	%		5.15	%		5.50	%

As of December 31, 2012 the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2013.

In thousands	U.S.			International
Prior service credit	$	(2,608	)	$	(218	)
Net actuarial loss (gain)		1,759			(96	)
	$	(849	)	$	(314	)

The assumed health care cost trend rate for the U.S. plans grades from an initial rate of 7.2% to an ultimate rate of 4.5% by 2027 and for international plans from 8.0% to 4.5% by 2030. A 1% increase in the assumed health care cost trend rate will increase the service and interest cost components of the expense recognized for the U.S. and international postretirement plans by approximately $180,000 and $22,000, respectively, for 2013, and increase the accumulated postretirement benefit obligation by approximately $4.4 million and $324,000, respectively. A 1% decrease in the assumed health care cost trend rate will decrease the service and interest cost components of the expense recognized for the U.S. and international postretirement plans by approximately $153,000 and $18,000, respectively, for 2013, and decrease the accumulated postretirement benefit obligation by approximately $3.7 million and $279,000, respectively.

Cash Flows

Benefit payments expected to be paid to plan participants are as follows:

In thousands	U.S.		International
Year ended December 31,
2013	$	1,510	$	330
2014		1,583		333
2015		1,654		330
2016		1,755		332
2017		1,799		350
2018 through 2022		10,381		1,930

Defined Contribution Plans

The Company also participates in certain defined contribution plans and multiemployer pension plans. Costs recognized under these plans are summarized as follows:

	For the year ended December 31,
In thousands	2012		2011		2010
Multi-employer pension and health & welfare plans	$	2,122	$	1,574	$	1,130
401(k) savings and other defined contribution plans		14,394		11,045		9,567
Total	$	16,516	$	12,619	$	10,697

The 401(k) savings plan is a participant directed defined contribution plan that holds shares of the Company’s stock as one of the investment options. At December 31, 2012 and 2011, the plan held on behalf of its participants about 371,100 shares with a market value of $32.5 million, and 403,400 shares with a market value of $28.2 million, respectively.

Additionally, the Company has stock option based benefit and other plans further described in Note 12.

The Company contributes to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain of its union-represented employees. The risks of participating in such plans are different from the risks of single-employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. If the Company ceases to have an obligation to contribute to the multiemployer plan in which it had been a contributing employer, it may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of the Company’s participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multiemployer plan is required to pay to the plan is referred to as a withdrawal liability.

The Company’s participation in multiemployer plans for the year ended December 31, 2012 is outlined in the table below. For plans that are not individually significant to the Company, the total amount of contributions is presented in the aggregate.

		Pension Protection Act Zone Status (b)		FIP / RP Status Pending / Implemented (c)	Contributions by the Company				Expiration Dates of Collective Bargaining Agreements
Pension Fund	EIN /PN (a)	2011	2010		2012	2011	2010	Surcharge Imposed (d)
Idaho Operating Engineers– Employers Pension Trust Fund	EIN # 91-6075538 Plan #001	Green	Green	No	$1,803(1)	$1,269(1)	$883(1)	No	6/30/2015
Automobile Mechanics’ Local No 701 Union and Industry Pension Plan	EIN #36-6042061 Plan #001	Red	Yellow	Yes (2)	$310	$298	$245	Yes (3)	12/11/2014
Other Plans					$9	$7	$2
Total Contributions					$2,122	$1,574	$1,130

(1) The Company’s contribution represents more than 5% of the total contributions to the plan.

(2) The Pension Fund’s board adopted a Rehabilitation Plan on September 30, 2012, increasing the weekly pension fund contribution rates by $75 with corresponding decreases to the weekly welfare fund contribution rates.

(3) Critical status triggered a 5% surcharge on employer contributions effective June 2012. Effective January 1, 2013, this surcharge increases to 10% and remains in effect until the Company’s union adopts the Rehabilitation Plan.

(a) The “EIN / PN” column provides the Employer Identification Number and the three-digit plan number assigned to a plan by the Internal Revenue Service.

(b) The most recent Pension Protection Act Zone Status available for 2011 and 2010 is for plan years that ended in 2011 and 2010, respectively. The zone status is based on information provided to the Company and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone has been determined to be in “critical status”, based on criteria established under the Internal Revenue Code (“Code”), and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded.

(c) The “FIP/RP Status Pending/Implemented” column indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2012.

(d) The “Surcharge Imposed” column indicates whether the Company’s contribution rate for 2012 included an amount in addition the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code.