Retirement Benefits

3 Months Ended

Mar. 31, 2012

Retirement Benefits [Abstract]

Retirement Benefits

10. Retirement Benefits

The Company has a qualified noncontributory pension plan covering substantially all U.S. employees. The benefits provided by this plan are measured by length of service, compensation and other factors, and are currently funded by trusts established under the plan. Funding of retirement costs for the plan complies with the minimum funding requirements specified by the Employee Retirement Income Security Act, as amended.  As of December 31, 2011, the qualified noncontributory pension plan was closed to new participants.  In addition, the Company has two unfunded non-qualified deferred compensation pension plans for certain U.S. employees. The Pension Restoration Plan provides supplemental retirement benefits. The benefit is based on the same benefit formula as the qualified pension plan except that it does not limit the amount of a participant's compensation or maximum benefit. The Supplemental Executive Retirement Plan credits an individual with 0.5 years of service for each year of service credited under the qualified plan. The benefits calculated under the non-qualified pension plans are offset by the participant's benefit payable under the qualified plan. The liabilities for the non-qualified deferred compensation pensions plans are included in "Other current accrued liabilities" and "Other liabilities" in the Consolidated Balance Sheet.

The Company is also required by the French government to provide a lump sum benefit payable upon retirement to its French employees.  A dedicated insurance policy is in place that can reimburse the Company for these retirement payments.

The Company sponsors two defined benefit postretirement plans that cover both salaried and hourly employees. One plan provides medical benefits, and the other plan provides life insurance benefits. Both plans are contributory, with retiree contributions adjusted periodically. The Company accrues the estimated costs of the plans over the employee's service periods. The Company's postretirement health care plan is unfunded. For measurement purposes, the submitted claims medical trend was assumed to be 9.25% in 1997. Thereafter, the Company's obligation is fixed at the amount of the Company's contribution for 1997.

The Company also has qualified defined contribution retirement plans covering substantially all of its U.S. and Canadian employees. For U.S. salaried employees, the Company makes contributions of 75% of employee contributions up to a maximum employee contribution of 6% of employee earnings. For U.S. hourly employees, the

Company made contributions of 75% of employee contributions from January 1, 2011 through September 30, 2011 and then 100% of employee contributions thereafter up to a maximum employee contribution of 6% of employee earnings.  The plan was amended to include the change for U.S. hourly employees on October 1, 2011.  Employees may contribute up to an additional 18% (in 1% increments), which is not subject to matching by the Company. For Canadian employees, the Company makes contributions of 3%-8% of an employee's salary with no individual employee matching required. All obligations of the Company are funded through March 31, 2012. In addition, the Company provides an unfunded non-qualified deferred compensation defined contribution plan for certain U.S. employees. The Company's and individual's contributions are based on the same formula as the qualified contribution plan except that it does not limit the amount of a participant's compensation or maximum benefit. The contribution calculated under the non-qualified defined contribution plan is offset by the Company's and participant's contributions under the qualified plan. The Company's expense for these plans totaled $3.3 million and $1.2 million in the three months ended March 31, 2012 and 2011, respectively.  The liability for the non-qualified deferred defined contribution plan is included in "Other current accrued liabilities" in the Consolidated Balance Sheet.

Components of Net Periodic Benefit Cost (in thousands of dollars)

	Pension Benefits						Other Benefits
Three Months Ended March 31,	2012			2011			2012			2011
Service cost	$	2,151		$	1,672		$	57		$	48
Interest cost		2,905			3,012			74			77
Expected return on plan assets		(3,230	)		(3,404	)		-			-
Amortization of prior service cost		232			236			13			13
Amortization of unrecognized net loss (gain)		2,203			909			(45	)		(61	)
Net periodic benefit cost	$	4,261		$	2,425		$	99		$	77

Employer Contributions

The Company previously disclosed in the consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011, that it expected to make contributions of between $16.0 million and $20.0 million to its pension plans in 2012. The Company also disclosed that it expected to make contributions of $0.5 million to its postretirement plan in 2012. As of March 31, 2012, the Company had made contributions of $0.1 million to its pension plans and $0.1 million to its postretirement plan.  The Company presently anticipates making additional contributions of between $15.9 million and $19.9 million to its pension plans and $0.4 million to its postretirement plan during the remainder of 2012.