13. Defined Benefit Plans

The Company assumed sponsorship of statutory pension plans in Switzerland as part of the BlueHill ID acquisition on January 4, 2010, and polyright SA acquisition on July 18, 2011. These pension plans are maintained by private insurance companies, and in accordance with Swiss law, the plans function as defined contribution plans whereby employee and employer contributions are defined based upon a percentage of an individual’s salary, depending on the age of the employee, and using a minimum guaranteed interest rate, which is annually defined by the Swiss Federal Council and reviewed every two years. Under U.S. GAAP, these plans are treated as defined benefit plans. The Company measures the defined benefit plan assets and obligations in accordance with ASC 715. As stated in Note 2, Discontinued Operations, the Company sold the Swiss entities which had these pension plans during the fourth quarter of 2013. As a result, all the pension plan assets and obligations were transferred with the sale of these entities to the buyer.

As of December 31, 2012, the assets of the qualified plans included old-age savings and cash account balances held at the private insurance companies.

The net periodic pension cost (income) for the Company’s pension plans includes the following components for the years ended December 31, 2013, 2012 and 2011:

	Year Ended December 31,
(in thousands)	2013			2012			2011
Service cost	$	331		$	495		$	133
Interest cost		89			124			63
Expected return on plan assets		(62	)		(127	)		(49	)
Amortization of actuarial loss		0			7			0
Amortization of prior service costs		23			16			13
Amortization of transition obligation		54			52			0
Net periodic pension cost		435			567			160
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Prior service costs arising during the period		110			120			0
Current year actuarial (gain) loss		(55)			(68	)		143
Amortization of actuarial loss		0			(7	)		0
Amortization of prior service costs		(23	)		(16	)		(13	)
Amortization of transition obligation		(54	)		(52	)		0
Total (gain) loss recognized in other comprehensive loss		(22	)		(23	)		130
Total recognized in net periodic pension cost (income) and other comprehensive loss	$	413		$	544		$	290

The funded status and the amounts recognized in the consolidated balance sheets for the Company’s pension plans are as follows:

(In thousands)	December 31, 2013			December 31, 2012
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	4,927		$	6,070
Service cost		331			495
Interest cost		89			124
Actuarial (gain) loss		(15)			(20	)
Employee contribution		182			243
Prior service cost		110			120
Benefits paid		(19	)		(2,105	)
Divestures		(5,605	)		—
Projected benefit obligation at end of year	$	—		$	4,927
Change in plan assets:
Fair value of plan assets at beginning of year	$	3,474		$	4,892
Actual (loss) return on plan assets		150			175
Employee contribution		182			243
Employer contribution		201			269
Divestures		(3,988	)		—
Benefits paid		(19	)		(2,105	)
Fair value of plan assets at end of year	$	—		$	3,474
Funded status, end of year:
Fair value of plan assets	$	—		$	3,474
Benefit obligations		—			4,927
Funded status (Deficit) at end of year	$	—		$	(1,453	)
Amounts recognized in the balance sheet:
Current liability		—			—
Noncurrent liability		—			(1,453	)
Amount recognized at end of year	$	—		$	(1,453	)
Changes in accumulated other comprehensive loss:
Accumulated other comprehensive loss at beginning of year	$	232		$	261
Net amount recognized in other comprehensive loss		(22)			(23	)
Divestures		(208	)		—
Foreign exchange impact		(2)			(6	)
Accumulated other comprehensive loss at end of year	$	—		$	232
Accumulated benefit obligation at end of year	$	—		$	4,668

The changes in accrued benefit asset/(liability) in the consolidated balance sheets are as follows:

(In thousands)	December 31, 2013			December 31, 2012
Accrued benefit asset (liability) at beginning of year	$	(1,453	)	$	(1,178	)
Employer contributions made during the year		201			269
Net periodic benefit (cost) income for the year		(435	)		(567	)
Divestures		1,665			—
Net (increase) decrease in accumulated other comprehensive loss		22			23
Accrued benefit asset (liability) at end of year	$	—		$	(1,453	)

Assumptions used in accounting for the Company’s pension plans for the years ended December 31, 2013, 2012 and 2011 are as follows:

	Fiscal 2013			Fiscal 2012			Fiscal 2011
Weighted average assumptions used to determine benefit obligations:
Measurement date		12/31/2013			12/31/2012			12/31/2011
Discount rate		1.95	%		1.90	%		2.25	%
Rate of compensation increase		1.50	%		1.50	%		1.50	%
Weighted average assumptions used to determine net (income) cost:
Measurement date		12/31/2013			12/31/2012			12/31/2011
Discount rate		1.95	%		1.90	%		2.25	%
Expected return on plan assets		1.95	%		1.90	%		2.50	%
Rate of compensation increase		1.50	%		1.50	%		1.50	%