RETIREMENT PLANS

12 Months Ended

Dec. 31, 2011

RETIREMENT PLANS

RETIREMENT PLANS

20. RETIREMENT PLANS

        The Company offers a qualified tax-deferred retirement plan ("DDMG Retirement Plan") for all of its eligible employees. Under the DDMG Retirement Plan, each participant is permitted to make voluntary contributions not to exceed the lesser of 70% of his or her respective compensation, or the applicable statutory limitation, and is immediately 100% vested. The DDMG Retirement Plan does not provide any matching by the Company.

        Digital Domain has adopted a qualified tax-deferred retirement plan ("DD Retirement Plan") for all of its eligible employees. Under the DD Retirement Plan, as amended on November 1, 2002, each participant is permitted to make voluntary contributions not to exceed the lesser of 60% of his or her respective compensation or the applicable statutory limitation, and is immediately 100% vested. The Retirement Plan was amended on January 1, 2007 to allow for safe-harbor matching contributions. Under the terms of the safe-harbor match, each employee is immediately 100% vested in the matching contribution. The matching contributions are made on an annual basis to all employees who participated in the DD Retirement Plan during the preceding year. In January 2010, Digital Domain cancelled its safe-harbor matching contribution for the calendar year 2010 but maintained the plan for employee contributions.

        Expenses related to these contributions totaled $1.0 million and $0.7 million for the 2009 Consolidated Period and 2009 Predecessor Period, respectively.