Note 12 — Pension and other postretirement benefits

The Company has a number of defined benefit pension and postretirement plans covering eligible U.S. and non-U.S. employees. The defined benefit pension plans are noncontributory. The benefits under these plans are based primarily on years of service and employees’ pay near retirement. The Company’s funding policy for U.S. plans is to contribute annually, at a minimum, amounts required by applicable laws and regulations. Obligations under non-U.S. plans are systematically provided for by depositing funds with trustees or by book reserves. As of June 30, 2013, the Company’s U.S. defined benefit pension plans and the Company’s other postretirement benefit plans, except certain postretirement benefit plans covering employees subject to a collective bargaining agreement, are effectively frozen.

The Company and certain of its subsidiaries provide medical, dental and life insurance benefits to pensioners and survivors. The associated plans are unfunded and approved claims are paid from Company funds.

Net benefit cost of pension and postretirement benefit plans consisted of the following:


	Pension Three Months Ended						Postretirement Benefits Three Months Ended				Pension Six Months Ended						Postretirement Benefits Six Months Ended
	June 30, 2013			July 1, 2012			June 30, 2013		July 1, 2012		June 30, 2013			July 1, 2012			June 30, 2013		July 1, 2012
	(Dollars in thousands)
Service cost	$	464		$	711		$	161	$	158	$	929		$	1,389		$	325	$	316
Interest cost		4,142			4,125			542		473		8,281			8,251			1,541		946
Expected return on Plan assets		(5,774	)		(5,042	)		—		—		(11,544	)		(10,085	)		—		—
Net amortization and deferral		1,414			1,604			202		122		2,824			3,210			932		245
Settlement charge		—			(124	)		—		—		—			(124	)		—		—
Curtailment charge		—			111			—		—		—			111			—		—

Net benefit cost	$	246		$	1,385		$	905	$	753	$	490		$	2,752		$	2,798	$	1,507

The Company’s pension contributions are expected to be approximately $17.5 million during 2013, of which $1.9 million and $13.6 million were made during the three and six months ended June 30, 2013, respectively.