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 September 30,												Nine Months Ended September 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	$	3,722		$	4,088		$	1,282		$	1,356		$	11,164		$	13,290		$	4,327		$	4,046
Interest Cost	6,314			6,247			1,710			1,664			18,943			18,491			5,716			4,957
Expected return on plan assets	(10,398		)	(10,106		)	(1,771		)	(1,776		)	(31,195		)	(30,011		)	(5,882		)	(5,294		)
Amortization:
Prior service cost	271			256			22			26			812			769			76			80
Recognized actuarial loss	2,073			3,771			183			311			6,217			14,741			626			926
Transition obligation	—			—			1			(3		)	—			—			3			(10		)
Other	—			—			2			2			—			—			5			4
Net periodic expense	$	1,982		$	4,256		$	1,429		$	1,580		$	5,941		$	17,280		$	4,871		$	4,709

The net periodic expense reflected above for non-U.S. plans for the three and nine months ended September 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 nine months ended September 30, 2014 and $550 and $946 for the three and nine months ended September 30, 2013, respectively. The expense relating to these plans is reflected in earnings from discontinued operations.

In connection with the recent separation of Knowles, the Company offered one-time lump sum payments to Knowles employees that participated in Dover's qualified defined benefit pension plan. As of October 1, 2014, the Company had made total lump sum payments to participants in this plan during the year of $46,100. Based on the total of the lump sum payments expected to be made to both Knowles and other participants in the plan through the remainder of the year, the Company expects to record a settlement charge of approximately $9,500 in the fourth quarter of 2014. $6,000 of this settlement charge is attributable to Knowles participants and, therefore, will be included in the results of discontinued operations in the fourth quarter of 2014, with the remaining $3,500 included in the results of continuing operations. These estimates may vary based on changes in economic conditions in the fourth quarter of 2014.

Non-Qualified Supplemental Benefits



	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Service Cost	$	830		$	1,246		$	2,490		$	4,604
Interest Cost	1,537			1,633			4,611			5,180
Amortization:
Prior service cost	1,944			2,045			5,831			6,040
Recognized actuarial (gain) loss	(107		)	(32		)	(320		)	52
Settlement and curtailment gain	—			(4,411		)	—			(4,411		)
Net periodic expense	$	4,204		$	481		$	12,612		$	11,465

As a result of the non-qualified defined benefit plan being frozen to any future benefit accruals, effective January 1, 2024, the Company re-measured the related liability as of the interim effective date of the change (July 31, 2013). This re-measurement resulted in a decrease in the 2013 pension expense of $7,348, of which $4,411 reflected a one-time curtailment gain in the Company's non-qualified benefit plan.

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,
	2014			2013			2014			2013
Service Cost	$	63		$	59		$	187		$	176
Interest Cost	156			130			470			392
Amortization:
Prior service cost	(103		)	(104		)	(307		)	(312		)
Recognized actuarial loss	14			34			40			102
Net periodic expense	$	130		$	119		$	390		$	358

The total amount amortized out of accumulated other comprehensive income into net periodic benefit expense for the three months ended September 30, 2014 and 2013 totaled $4,298 and $6,368, respectively. For the nine months ended September 30, 2014 and 2013, the total amount amortized totaled $12,978 and $22,579, respectively. The amortization included in other comprehensive income for the three and nine months ended September 30, 2013 includes $61 and $191, 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 $8,644, and $6,195 for the three months ended September 30, 2014 and 2013. For the nine months ended September 30, 2014 and 2013, expense relating to these plans was $26,571 and $21,136, respectively.