(13)	Pension Plans

a. Defined Benefit Retirement Plans

The Company's subsidiary, GMI, sponsors three noncontributory defined benefit pension plans covering certain employees. These plans were frozen in 2003. The Company's subsidiary, Core Metals, sponsors a noncontributory defined benefit pension plan covering certain employees. This plan was closed to new participants in April 2009.

The Company's subsidiary, Quebec Silicon, sponsors a contributory defined benefit pension plan and postretirement benefit plan for certain employees, based on length of service and remuneration. Postretirement benefits consist of a group insurance plan covering plan members for life insurance, disability, hospital, medical, and dental benefits.

The Company's funding policy has been to contribute, as necessary, an amount in excess of the minimum requirements in order to achieve the Company's long-term funding targets. During the years ended June 30, 2012 and 2011, the Company made contributions of $2,482 and $1,080, respectively, to the pension plans.

The Company uses a June 30 measurement date for these defined benefit plans.

Benefit Obligations and Funded Status — The following provides a reconciliation of the benefit obligations, plan assets, and funded status of the plans at June 30, 2012 and 2011:

				Pension Plans			Nonpension Postretirement Plan
				2012	2011		2012	2011
Change in benefit obligations:
	Benefit obligations at beginning of year		$	30,218	28,367	$	—	—
	Acquisition of business			23,827	—		11,906	—
	Interest cost			1,553	1,439		—	—
	Service cost			102	114		—	—
	Amendments			465	—		—	—
	Actuarial loss			6,860	1,698		—	—
	Benefits paid			(1,430)	(1,400)		—	—
		Benefit obligations at end of year	$	61,595	30,218	$	11,906	—

Change in plan assets:
	Fair value of plan assets at beginning of year		$	22,502	19,249	$	—	—
	Acquisition of business			14,328	—		—	—
	Actual gain on plan assets			1,543	3,573		—	—
	Employer contributions			2,482	1,080		—	—
	Benefits paid			(1,430)	(1,400)		—	—
		Fair value of plan assets at end of year	$	39,425	22,502	$	—	—

Funded status at end of year:
	Fair value of plan assets		$	39,425	22,502	$	—	—
	Benefit obligations			61,595	30,218		11,906	—
		Funded status	$	(22,170)	(7,716)	$	(11,906)	—

Amounts recognized in the consolidated balance sheet consist of:
	Noncurrent liability		$	(22,170)	(7,716)	$	11,802	—
	Current liability			—	—		104	—
	Accumulated other comprehensive loss			13,008	6,356		—	—

All of our pension and postretirement plans are underfunded, and have been underfunded for all years presented. The amounts recognized in other comprehensive (loss) income consist entirely of net actuarial loss during the years ended June 30, 2012, 2011, and 2010 and totaled ($6,652), $1,066, and ($1,402), respectively.

At June 30, 2012 and 2011, the accumulated benefit obligations were $61,595 and $30,218, respectively, for defined benefit pension plans and $11,906 and $0, respectively, for the defined postretirement benefit plan.

Net Periodic Pension Expense — The components of net periodic pension expense (benefit) for the Company's defined benefit pension plans are as follows:

			2012	2011	2010
Interest cost		$	1,553	1,439	1,285
Service cost			102	114	26
Expected return on plan assets			(1,737)	(1,487)	(1,075)
Amortization of net loss			866	678	572
	Net periodic pension expense	$	784	744	808

In fiscal year 2013, actuarial net losses of approximately $1,774 are expected to be recognized into periodic benefit cost from accumulated other comprehensive loss.

Assumptions and Other Data — The assumptions used to determine benefit obligations at June 30, 2012 and 2011 follow:

	Pension Plans		Nonpension Postretirement Plans
	2012	2011	2012	2011
Discount rate	3.5% - 5.0%	5.25% - 5.30%	5.10%	—

The discount rate used in calculating the present value of our pension plan obligations is developed based on the Citigroup Pension Discount Curve for both the GMI plans and Core Metals plan, and the Mercer Yield Curve for Quebec Silicon pension and postretirement benefit plans and the expected cash flows of the benefit payments.

The assumptions used to determine net periodic expense for the Company's defined benefit pension plans for years ended June 30, 2012, 2011, and 2010 are as follows:

	2012	2011	2010
Discount rate	5.00% - 5.30%	5.25%	5.85% - 6.25%
Expected return on plan assets	5.50% - 8.00%	8.00% - 8.50%	8.00% - 8.50%

Expected return on plan assets is determined based on management's expectations of long-term average rates of return on funds invested to provide for benefits included in the projected benefit obligations. In determining the expected return on plan assets, the Company takes into account historical returns, plan asset allocations and related investment strategies, as well as the outlook for inflation and overall fixed income and equity returns.

The Company expects to make discretionary contributions of approximately $4,128 to the pension plans for the year ending June 30, 2013.

The following reflects the gross benefit payments that are expected to be paid for the benefit plans for the years ended June 30:

		Pension Plans		Nonpension Postretirement Plans
2013	$	2,555	$	104
2014		2,788		153
2015		2,981		209
2016		3,193		259
2017		3,305		303
Years 2018-2022		17,398		2,066

The accumulated nonpension postretirement benefit obligation has been determined by application of the provisions of the Company's health care and life insurance plans including established maximums, relevant actuarial assumptions and health care cost trend rates projected at 8.5% for fiscal 2013 and decreasing to an ultimate rate of 4.5% in fiscal 2027. The effect of a 1% increase in health care cost trend rate on nonpension postretirement benefit obligation is $2,801. The effect of a 1% decrease in health care cost trend rate on nonpension postretirement benefit obligation is ($2,134).

The Company's overall strategy is to invest in high-grade securities and other assets with a limited risk of market value fluctuation. In general, the Company's goal is to maintain the following allocation ranges:

Equity securities			55 - 70%
Fixed income securities			30 - 40
Real estate			5 - 10

The fair values of the Company's pension plan assets as of June 30, 2012 are as follows:

			Quoted Prices in Active Markets for Identical Assets	Significant Observable Inputs
			(Level 1)	(Level 2)	Total
Cash and cash equivalents		$	418	—	418
Equity securities:
	Domestic equity mutual funds		4,307	—	4,307
	International equity mutual funds		3,707	—	3,707
	Commingled domestic equity funds		—	3,253	3,253
	Commingled international equity funds		—	6,339	6,339
Fixed income securities:					—
	Fixed income mutual funds		9,348	—	9,348
	Commingled fixed income funds		—	11,082	11,082
Real estate mutual funds			971	—	971
		$	18,751	20,674	39,425

The fair values of the Company's pension plan assets as of June 30, 2011 are as follows:

			Quoted Prices in Active Markets for Identical Assets	Significant Observable Inputs
			(Level 1)	(Level 2)	Total
Cash and cash equivalents		$	341	—	341
Equity securities:
	Domestic equity mutual funds		5,083	—	5,083
	International equity mutual funds		2,573	—	2,573
	Commingled domestic equity funds		—	3,374	3,374
Fixed income securities:					—
	Fixed income mutual funds		8,212	—	8,212
	Commingled fixed income funds		—	2,037	2,037
Real estate mutual funds			882	—	882
		$	17,091	5,411	22,502

See note 20 (Fair Value Measures) for additional disclosures related to the fair value hierarchy. The Company held no level 3 assets during the year.