14. Employee Benefit Plans

Retirement Plans

The Company offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. In addition, the Company sponsors qualified defined benefit pension plans covering certain employees of the Company and its subsidiaries. The plans’ benefits are generally based on years of service and employee compensation. The Company also provides to certain management employees, through non-qualified plans, supplemental retirement benefits in excess of qualified plan limits imposed by federal tax law.

In July 2013, the Company announced that, after December 31, 2013, the U.S. qualified and non-qualified defined benefit plans will be closed to new employees. All pension-eligible employees as of December 31, 2013 will continue to earn a pension benefit through December 31, 2023 as long as they remain employed by an operating company participating in the plan. The Company also announced that effective, January 1, 2024, the plan would be frozen to any future benefit accruals.

As a result of the effective 10-year freeze of these defined benefit plans, pension assets and liabilities were re-measured as of the interim effective date of the change, assuming a discount rate of 4.8%. The Company's discount rate assumption is determined by developing a yield curve based on high-quality corporate bonds with maturities matching the plans' expected benefit payment streams. Accordingly, as of July 31, 2013, this re-measurement resulted in a decrease in current quarter pension expense of $7,348, of which $4,411 reflects a one-time curtailment gain in the Company's non-qualified benefit plan. Due to the recent amendments to the defined benefit plan, the Company is currently reevaluating contribution amounts for full year 2013.

The following tables set forth the components of the Company’s net periodic expense relating to retirement benefit plans:

Qualified Defined Benefits



	Three Months Ended September 30,												Nine Months Ended September 30,
	U.S. Plan						Non-U.S. Plans						U.S. Plan						Non-U.S. Plans
	2013			2012			2013			2012			2013			2012			2013			2012
Service Cost	$	4,088		$	3,602		$	1,471		$	1,079		$	13,290		$	10,804		$	4,387		$	3,147
Interest Cost	6,247			6,284			2,264			2,231			18,491			18,852			6,748			6,428
Expected return on plan assets	(10,106		)	(9,744		)	(2,395		)	(2,022		)	(30,011		)	(29,234		)	(7,138		)	(5,810		)
Amortization:
Prior service cost	256			260			28			30			769			786			85			89
Recognized actuarial loss	3,771			3,378			373			130			14,741			10,136			1,112			371
Transition obligation	—			—			(3		)	(13		)	—			—			(10		)	(36		)
Settlement loss	—			—			353			—			—			—			353			—
Other	—			—			39			56			—			—			118			158
Net periodic expense	$	4,256		$	3,780		$	2,130		$	1,491		$	17,280		$	11,344		$	5,655		$	4,347

Non-Qualified Supplemental Benefits



	Three Months Ended September 30,					Nine Months Ended September 30,
	2013			2012		2013			2012
Service Cost	$	1,246		$	1,326	$	4,604		$	3,978
Interest Cost	1,633			1,979		5,180			5,937
Amortization:
Prior service cost	2,045			1,857		6,040			5,569
Recognized actuarial loss	(32		)	33		52			103
Settlement and curtailment gain	(4,411		)	—		(4,411		)	—
Net periodic expense	$	481		$	5,195	$	11,465		$	15,587

Post-Retirement Plans

The Company also maintains post retirement benefit plans, although these plans are effectively closed to new entrants. The supplemental and post retirement benefit plans are supported by the general assets of the Company. The following table sets forth the components of the Company’s net periodic expense relating to its post-retirement benefit plans:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Service Cost	$	59		$	62		$	176		$	186
Interest Cost	130			149			392			445
Amortization:
Prior service cost	(104		)	(104		)	(312		)	(312		)
Recognized actuarial loss (gain)	34			(5		)	102			(15		)
Settlement gains	—			—			—			(1,493		)
Net periodic expense	$	119		$	102		$	358		$	(1,189	)

The Company purchased life insurance contracts to settle a portion of the post-retirement obligations relating to employees of two businesses that were sold in 2011, resulting in a settlement gain of $1,493, which are included within the results of discontinued operations for the nine months ended September 30, 2012.

The total amount amortized out of accumulated other comprehensive income into net periodic benefit expense for the three and nine months ended September 30, 2013 totaled $6,368 and $22,579, respectively.