Pensions and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2011

Pensions and Other Postretirement Benefits [Abstract]

Pensions and Other Postretirement Benefits

6. Pensions and Other Postretirement Benefits

We have defined benefit pension plans in the United States, or U.S., the United Kingdom, or U.K., Canada, Finland, France, India and South Africa, and we have other postretirement benefit plans for health care and life insurance benefits in the U.S. and Canada.

Defined Benefit Pension Plans — Our defined benefit pension plans, or pension plans, cover certain full-time employees. Under the pension plans, retirement benefits are primarily a function of both years of service and level of compensation. The U.S. pension plans, which are closed to new entrants and additional benefit accruals, and the Canada, Finland, France and India pension plans are non-contributory. The U.K. pension plan, which is closed to new entrants and additional benefit accruals, and the South Africa pension plan are both contributory plans.

Effective March 31, 2010, we closed the U.K. pensionplan for future defined benefit accrual. As a result of the U.K. plan closure, we recognized a curtailment gain in our consolidated statement of operations in the nine months endedSeptember 30, 2010 of approximately £13,300 (approximately $20,100 at the exchange rate in effect at the time of the pension plan closure).

As a result of a recent change in the U.K. governmentalstandard, our U.K. pension plan adopted the use of the U.K. consumer prices index as a basis for inflationary increases in the calculation of the funded status of our U.K. pension plan. The U.K. retail prices index was the former U.K. governmentalstandard that was used by our U.K. pension plan. We have accounted for this change as a plan amendment as of May 31, 2011 and recognized a prior service credit in comprehensive income during the nine months endedSeptember 30,2011 of approximately £29,600 (approximately $48,100 at the exchange rate in effect during the period).

Based on the minimum statutory funding requirements for 2011, we are not required to make any mandatory contributions to our U.S. pension plans. The following table provides details on 2011 mandatory contribution activity for our non-U.S. pension plans:

Contributions in the nine months ended September 30, 2011	$	14,100
Remaining contributions expected for the year 2011		6,800
Contributions expected for the year 2011	$	20,900

We did not make any discretionary contributions during the first nine months of 2011; however, we may elect to make discretionary contributions to our U.S. and/or non-U.S. pension plans during 2011.

Other Postretirement Benefit Plans — Certain employees in the U.S. and Canada may become eligible for health care and life insurance benefits (“other postretirement benefits”) if they qualify for and commence normal or early retirement pension benefits as defined in the U.S. and Canada pension plans while working for us. Additionally, one of our subsidiaries in the U.S. also has a benefit plan, referred to as the Survivor Income Plan (“SIP”), which provides coverage for an employee's beneficiary upon the death of the employee. This plan has been closed to new entrants since 1988.

The components of net periodic benefit cost/(credit) for our defined benefit pension plans and other postretirement benefit plans were as follows:

			Defined Benefit Pension Plans								Other Postretirement Benefit Plans
		Quarter Ended				Nine Months Ended				Quarter Ended				Nine Months Ended
		September 30,				September 30,				September 30,				September 30,
			2011		2010		2011		2010		2011		2010		2011		2010
Net periodic benefit cost/(credit):
Service cost		$	276	$	333	$	978	$	2,538	$	23	$	27	$	70	$	82
Interest cost			14,287		15,268		45,212		45,662		824		913		2,471		2,739
Expected return on plan assets			(17,167)		(15,520)		(53,138)		(46,088)		-		-		-		-
Amortization of net actuarial loss			3,522		3,542		10,477		12,806		35		7		106		36
Amortization of prior service (credit)/cost			(539)		8		(521)		(408)		(891)		(1,002)		(2,673)		(2,987)
Amortization of transition obligation/(asset)			12		(13)		35		35		-		8		-		-
(Curtailment gain)/settlement charges*			-		-		-		(19,665)		-		-		-		-
Net periodic benefit cost/(credit)		$	391	$	3,618	$	3,043	$	(5,120)	$	(9)	$	(47)	$	(26)	$	(130)
Changes recognized in
	other comprehensive income:
Net actuarial loss		$	-	$	675	$	3,597	$	21,805	$	-	$	-	$	-	$	-
Prior service credit			-		-		(48,056)		(9,054)		-		-		-		-
Amortization of net actuarial loss			(3,522)		(3,542)		(10,477)		(12,806)		(35)		(7)		(106)		(36)
Amortization of prior service credit/(cost)			539		(8)		521		408		891		1,002		2,673		2,987
Amortization of transition (obligation)/asset			(12)		13		(35)		(35)		-		(8)		-		-
Total recognized in other
comprehensive income - before tax		$	(2,995)	$	(2,862)	$	(54,450)	$	318	$	856	$	987	$	2,567	$	2,951

_________

* During the nine months ended September 30, 2010, a curtailment gain resulted from the closure of the U.K. pension plan for future benefit accrual. During the nine months ended September 30, 2010, a charge was incurred related to the settlement of pension obligations with former employees of the Canada pension plan.