Retirement Benefits

9 Months Ended

Sep. 30, 2011

Term of credit facility

3Y

Retirement Benefits

11. Retirement Benefits

The Company has a qualified noncontributory pension plan covering substantially all U.S. employees. The benefits provided by this plan, which are currently funded by trusts established under the plan, are measured by length of service, compensation and other factors. Funding of retirement costs for this plan complies with the minimum funding requirements specified by the Employee Retirement Income Security Act, as amended. 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 Company also provides a Supplemental Executive Retirement Plan that 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 pension plans are included in "Other current accrued liabilities" and “Other liabilities” in the Condensed Consolidated Balance Sheet.

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. employees, the Company makes contributions of 75% of employee contributions up to a maximum employee contribution of 6% of employee earnings. Employees may contribute up to an additional 18% (in 1% increments), which is not subject to match by the Company. For Canadian employees, the Company makes contributions of 3%-8% of an employee's salary with no individual employee match required. All obligations of the Company are funded through September 30, 2011. In addition, the Company provides an unfunded non-qualified deferred compensation defined contribution plan for certain U.S. employees. The Company's and each 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 each participant's contributions under the qualified plan. The Company's expense for these plans totaled $1.2 million and $1.0 million in the three months ended September 30, 2011 and 2010, respectively, and $3.4 million and $2.8 million in the nine months ended September 30, 2011 and 2010, respectively. The liability for the non-qualified deferred defined contribution plan is included in "Other current accrued liabilities" in the Condensed Consolidated Balance Sheet.

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

	Pension Benefits						Other Benefits
Three Months Ended September 30,	2011			2010			2011			2010
Service cost	$	1,723		$	1,414		$	32		$	23
Interest cost		2,959			2,896			87			88
Expected return on plan assets		(3,400	)		(3,188	)		-			-
Amortization of prior service cost		236			196			13			13
Amortization of unrecognized net loss (gain)		979			928			(56	)		(73	)
Net periodic benefit cost	$	2,497		$	2,246		$	76		$	51

	Pension Benefits						Other Benefits
Nine Months Ended September 30,	2011			2010			2011			2010
Service cost	$	5,168		$	4,242		$	96		$	69
Interest cost		8,878			8,689			260			263
Expected return on plan assets		(10,199	)		(9,564	)		-			-
Amortization of prior service cost		709			589			38			38
Amortization of unrecognized net loss (gain)		2,936			2,784			(167	)		(218	)
Net periodic benefit cost	$	7,492		$	6,740		$	227		$	152

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, 2010, that it expected to make contributions of $6.4 million to its pension plans in 2011. The Company also disclosed that it expected to make contributions of $0.5 million to its postretirement plan in 2011. As of September 30, 2011, the Company had made contributions of $0.2 million to its pension plans and $0.2 million to its postretirement plan.  The Company presently anticipates making additional contributions of $0.1 million to its postretirement plan during the remainder of 2011.  The Company anticipates making an additional contribution of $8.0 million to its pension plans which is not due until September 2012, but can be paid early.  As of September 30, 2011 no election has been made for the payment date.