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 plans would be frozen to any future benefit accruals.

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 June 30,												Six Months Ended June 30,
	U.S. Plan						Non-U.S. Plans						U.S. Plan						Non-U.S. Plans
	2014			2013			2014			2013			2014			2013			2014			2013
Service Cost	$	3,721		$	4,601		$	1,530		$	1,333		$	7,442		$	9,202		$	3,045		$	2,690
Interest Cost	6,315			6,122			2,023			1,632			12,629			12,244			4,006			3,293
Expected return on plan assets	(10,399		)	(9,952		)	(2,082		)	(1,743		)	(20,797		)	(19,905		)	(4,111		)	(3,518		)
Amortization:
Prior service cost	270			256			27			27			541			513			54			54
Recognized actuarial loss	2,072			5,485			222			305			4,144			10,970			443			615
Transition obligation	—			—			2			(4		)	—			—			2			(7		)
Other	—			—			—			1			—			—			3			2
Net periodic expense	$	1,979		$	6,512		$	1,722		$	1,551		$	3,959		$	13,024		$	3,442		$	3,129

The net periodic expense reflected above for non-U.S. plans for the three and six months ended June 30, 2014 and 2013 excludes certain non-U.S. plans sponsored by Knowles that were reallocated as part of the separation on February 28, 2014. The historical expense relating to these plans was $0 and $59 for the three and six months ended June 30, 2014 and $196 and $396 for the three and six months ended June 30, 2013, respectively. The expense relating to these plans is reflected in earnings from discontinued operations.

Non-Qualified Supplemental Benefits



	Three Months Ended June 30,					Six Months Ended June 30,
	2014			2013		2014			2013
Service Cost	$	830		$	1,679	$	1,660		$	3,358
Interest Cost	1,537			1,774		3,074			3,547
Amortization:
Prior service cost	1,943			1,998		3,887			3,995
Recognized actuarial (gain) loss	(106		)	42		(213		)	84
Net periodic expense	$	4,204		$	5,493	$	8,408		$	10,984

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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Service Cost	$	62		$	59		$	124		$	117
Interest Cost	157			131			314			262
Amortization:
Prior service cost	(102		)	(104		)	(204		)	(208		)
Recognized actuarial loss	13			34			26			68
Net periodic expense	$	130		$	120		$	260		$	239

The total amount amortized out of accumulated other comprehensive income into net periodic benefit expense for the three months ended June 30, 2014 and 2013 totaled $4,341 and $8,101, respectively. For the six months ended June 30, 2014 and 2013, the total amount amortized totaled $8,680 and $16,211, respectively. The amortization included in other comprehensive income for the three and six months ended June 30, 2013 includes $62 and $127, respectively, relating to plans sponsored by Knowles that were transfered as part of the separation in 2014.

Defined Contribution Retirement Plans

The Company also offers defined contribution retirement plans which cover the majority of its U.S. employees, as well as employees in certain other countries. The Company’s expense relating to defined contribution plans was $9,159, and $6,714 for the three months ended June 30, 2014 and 2013. For the six months ended June 30, 2014 and 2013, expense relating to these plans was $17,927 and $14,940, respectively.