Qualified Employee Benefit Plans

9 Months Ended

Sep. 30, 2012

Qualified Employee Benefit Plans [Abstract]

Qualified Employee Benefit Plans

10.      Qualified Employee Benefit Plans

We maintain a qualified profit sharing plan covering U.S. employees and certain foreign employees. Employer contributions are discretionary and generally limited to the maximum amount deductible for federal income tax purposes.

We maintain several defined contribution plans for foreign employees in our subsidiaries in the United Kingdom, Australia, Japan and other locations outside the United States. Employer contributions are generally consistent with regulatory requirements and tax limits. Defined contribution expense for foreign entities was $1.6 million and $2.0 million during the three months ended September 30, 2012 and 2011 and $5.2 million and $5.9 million during the nine months ended September 30, 2012 and 2011, respectively.

We maintain a qualified, noncontributory, defined benefit retirement plan ("Retirement Plan") covering current and former employees who were employed by AllianceBernstein in the United States prior to October 2, 2000. Benefits are based on years of credited service, average final base salary (as defined in the Retirement Plan), and primary Social Security benefits. Service and compensation after December 31, 2008 are not taken into account in determining participants' retirement benefits.

Our policy is to satisfy our funding obligation for each year in an amount not less than the minimum required by the Employee Retirement Income Security Act of 1974, as amended, and not greater than the maximum amount we can deduct for federal income tax purposes. During September 2012, we contributed $4.9 million to the Retirement Plan. We do not intend to make any additional contributions this year. Contribution estimates, which are subject to change, are based on regulatory requirements, future market conditions and assumptions used for actuarial computations of the Retirement Plan's obligations and assets. Management, at the present time, has not determined the amount, if any, of additional future contributions that may be required.

Net expense (benefit) under the Retirement Plan consisted of:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(in thousands)
Interest cost on projected benefit obligations	$	1,139		$	1,133		$	3,493		$	3,493
Expected return on plan assets		(1,231	)		(1,272	)		(3,737	)		(3,860	)
Recognized actuarial loss		208			92			642			308
Amortization of transition asset		(36	)		(36	)		(108	)		(108	)
Net pension expense (benefit)	$	80		$	(83	)	$	290		$	(167	)