Retirement Plans

Savings and Retirement Plans. We maintain a voluntary 401(k) savings and retirement plan covering substantially all full-time and certain part-time employees in the United States who have completed one month of service and have attained age 18. We match a certain percentage of each employee’s contribution. The plan also provides for a minimum contribution by us to the plan for all eligible employees of 1% of their salary, subject to certain limits, and discretionary profit-sharing contributions. We may increase or decrease our matching contributions at our discretion, on a prospective basis. We incurred $10.8 million, $10.1 million, and $9.8 million of expense related to this plan in 2014, 2013 and 2012. We also maintain defined contribution plans in some of the European countries in which we operate. Expenses related to these plans were not material in 2014, 2013 or 2012.

Domestic Retirement Plans. We have a noncontributory, unfunded retirement plan for certain officers and other key employees in the United States (Domestic Retirement Plan). In February 2012, our Board of Directors amended the Domestic Retirement Plan to freeze benefit levels and modify vesting provisions under the plan effective as of March 31, 2012.

The following table sets forth the Domestic Retirement Plan’s financial status and the amounts recognized in our consolidated balance sheets:



December 31,	2014			2013
Change in benefit obligation
Benefit obligation, beginning of year	$	42,011		$	46,759
Interest cost	1,849			1,608
Actuarial (gain) loss	6,820			(4,700		)
Benefits paid	(1,625		)	(1,656		)
Benefit obligation, end of year	$	49,055		$	42,011
Change in plan assets
Fair value of plan assets, beginning of year	$	—		$	—
Employer contribution	1,625			1,656
Benefits paid	(1,625		)	(1,656		)
Fair value of plan assets, end of year	$	—		$	—
Funded status at December 31	$	(49,055	)	$	(42,011	)
Amounts recognized in the consolidated balance sheets
Other current liabilities	$	(1,770	)	$	(1,831	)
Other liabilities	(47,282		)	(40,178		)
Accumulated other comprehensive loss	16,853			10,849
Net amount recognized	$	(32,199	)	$	(31,160	)
Accumulated benefit obligation	$	49,055		$	42,011
Weighted average assumptions used to determine benefit obligation
Discount rate	3.75		%	4.50		%
Rate of increase in compensation levels	N/A			N/A

Plan benefit obligations of the Domestic Retirement Plan were measured as of December 31, 2014 and 2013. Plan benefit obligations are determined using assumptions developed at the measurement date. The weighted average discount rate, which is used to calculate the present value of plan liabilities, is an estimate of the interest rate at which the plan liabilities could be effectively settled at the measurement date. When estimating the discount rate, we review yields available on high-quality, fixed-income debt instruments and use a yield curve model from which the discount rate is derived by applying the projected benefit payments under the plan to points on a published yield curve.

The components of net periodic benefit cost for the Domestic Retirement Plan, which is included in selling, general, and administrative expenses in the consolidated statements of income, are as follows:



Year ended December 31,	2014			2013			2012
Service cost	$	—		$	—		$	130
Interest cost	1,849			1,608			1,616
Recognized net actuarial loss	816			1,366			971
Curtailment loss	—			—			234
Net periodic benefit cost	$	2,665		$	2,974		$	2,951
Weighted average assumptions used to determine net periodic benefit cost
Discount rate	4.50		%	3.50		%	4.00		%
Rate of increase in future compensation levels	N/A			N/A			3.00		%

Amounts recognized for the Domestic Retirement Plan as a component of accumulated other comprehensive loss as of the end of the year that have not been recognized as a component of the net periodic benefit cost are presented in the following table. We expect to recognize approximately $1.6 million of the net actuarial loss reported in the following table as of December 31, 2014, as a component of net periodic benefit cost during 2015.



Year ended December 31,	2014			2013
Net actuarial loss	$	(16,853	)	$	(10,848	)
Deferred tax benefit	6,573			4,231
Amounts included in accumulated other comprehensive income (loss), net of tax	$	(10,280	)	$	(6,617	)

As of December 31, 2014, the expected benefit payments required for each of the next five years and the five-year period thereafter for the Domestic Retirement Plan are as follows:



Year
2015	$	1,803
2016	1,937
2017	2,056
2018	2,179
2019	2,266
2020-2024	12,711

As a result of the acquisition of Medical Action on October 1, 2014, we also have a defined benefit plan covering certain of their employees. As of December 31, 2014, the accumulated benefit obligation under this plan was $0.9 million.

International Retirement Plans. Certain of our foreign subsidiaries have defined benefit pension plans covering substantially all of their respective employees. As of December 31, 2014 and 2013, the accumulated benefit obligation under these plans was $1.9 million and $2.4 million. We recorded $0.2 million, $0.2 million and $0.1 million in net periodic benefit cost in selling, general and administrative expenses for the years ended December 31, 2014, 2013 and 2012.