Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2012

Reconciliations of Benefit Obligations, Plan Assets of Pension Plans and Funded Status of Plans

The following tables present reconciliations of plan benefit obligations, fair value of plan assets and the funded status of pension plans and other post-retirement plans as of and for the years ended December 31, 2012 and 2011:

	U.S. pension plans						Non-U.S. pension plans						Other post-retirement plans
In thousands	2012			2011			2012			2011			2012			2011
Change in benefit obligations
Benefit obligation beginning of year	$	572,068		$	502,657		$	89,503		$	84,151		$	35,081		$	33,715
Service cost	12,867			10,270			3,295			2,196			219			180
Interest cost	28,208			28,647			7,545			4,121			1,860			1,889
Amendments	372			—			—			—			—			—
Benefit obligations assumed in Merger	10,821			—			338,532			—			16,815			—
Settlements	—			—			—			(257		)	—			—
Actuarial loss	128,817			58,672			26,647			4,079			8,159			2,494
Translation (gain) loss	—			—			1,502			(2,477		)	—			—
Benefits paid	(358,854		)	(28,178		)	(6,175		)	(2,310		)	(2,837		)	(3,197		)
Benefit obligation end of year	394,299			572,068			460,849			89,503			59,297			35,081
Change in plan assets
Fair value of plan assets beginning of year	408,837			374,934			10,934			10,549			—			—
Actual return on plan assets	43,944			27,628			6,413			343			—			—
Plan assets acquired in Merger	7,482			—			227,253			—			—			—
Company contributions	224,786			34,453			10,391			2,644			2,837			3,197
Settlements	—			—			—			(257		)	—			—
Translation gain (loss)	—			—			166			(35		)	—			—
Benefits paid	(358,854		)	(28,178		)	(6,175		)	(2,310		)	(2,837		)	(3,197		)
Fair value of plan assets end of year	326,195			408,837			248,982			10,934			—			—
Funded status
Benefit obligations in excess of the fair value of plan assets	$	(68,104	)	$	(163,231	)	$	(211,867	)	$	(78,569	)	$	(59,297	)	$	(35,081	)

Amounts Recognized in Consolidated Balance Sheets

Amounts recorded in the Consolidated Balance Sheets were as follows:

	U.S. pension plans						Non-U.S. pension plans						Other post- retirement plans
In thousands	2012			2011			2012			2011			2012			2011
Current liabilities	$	(3,490	)	$	(3,303	)	$	(4,925	)	$	(2,442	)	$	(4,520	)	$	(3,307	)
Non-current liabilities	(64,614		)	(159,928		)	(206,942		)	(76,127		)	(54,777		)	(31,774		)
Benefit obligations in excess of the fair value of plan assets	$	(68,104	)	$	(163,231	)	$	(211,867	)	$	(78,569	)	$	(59,297	)	$	(35,081	)

Pension Plans with an Accumulated Benefit Obligation or Projected Benefit Obligation in Excess of Plan Assets

Information for pension plans with an accumulated benefit obligation or projected benefit obligation in excess of plan assets as of December 31 are as follows:

	Projected benefit obligation exceeds the fair value of plan assets				Accumulated benefit  obligation exceeds the fair value of plan assets
In thousands	2012		2011		2012		2011
U.S. pension plans
Projected benefit obligation	$	158,063	$	572,068	$	87,147	$	572,068
Fair value of plan assets	85,332		408,837		15,499		408,837
Accumulated benefit obligation	—		—		77,165		539,453
Non-U.S. pension plans
Projected benefit obligation	$	436,652	$	89,503	$	431,271	$	89,503
Fair value of plan assets	222,387		10,934		217,174		10,934
Accumulated benefit obligation	—		—		420,044		86,431

Assumed Health Care Cost Trend Rates

The assumed healthcare cost trend rates for other post-retirement plans as of December 31 were as follows:

	2012		2011
Healthcare cost trend rate assumed for following year	7.4	%	7.5	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.5	%	4.5	%
Year the cost trend rate reaches the ultimate trend rate	2027		2027

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one-percentage-point change in the assumed healthcare cost trend rates would have the following effects as of and for the year ended December 31, 2012:

	One Percentage Point
In thousands	Increase		Decrease
Increase (decrease) in annual service and interest cost	$	59	$	(52	)
Increase (decrease) in other post-retirement benefit obligations	2,748		(2,390		)

Actual Overall Asset Allocation for U.S. And Non-U.S. Plans as Compared to Investment Policy Goals

Our actual overall asset allocation for our U.S. and non-U.S. pension plans as compared to our investment policy goals as of December 31 was as follows:

	U.S. pension plans
	Actual				Target
Percentages	2012		2011		2012		2011
Equity securities	32	%	41	%	—		50	%
Fixed income	56	%	50	%	100	%	40	%
Alternative	7	%	6	%	—		10	%
Cash	5	%	3	%	—		—

	Non-U.S. pension plans
	Actual				Target
Percentages	2012		2011		2012		2011
Equity securities	51	%	66	%	55	%	75	%
Fixed income	42	%	20	%	45	%	25	%
Alternative	3	%	—		—		—
Cash	4	%	14	%	—		—

Plan Assets Using Fair Value Hierarchy

The fair values of our pension plan assets and their respective levels in the fair value hierarchy as of December 31, 2012 and December 31, 2011 were as follows:

	December 31, 2012
In thousands	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	6,238	$	21,235	$	—	$	27,473
Fixed income:
Corporate and non U.S. government	—		164,255		—		164,255
U.S. treasuries	—		69,375		—		69,375
Mortgage-backed securities	—		23,382		—		23,382
Other	—		28,111		—		28,111
Global equity securities:
Mid cap equity	—		6,726		—		6,726
Large cap equity	—		88,985		—		88,985
International equity	—		89,768		—		89,768
Long/short equity	—		47,597		—		47,597
Other investments	—		11,215		18,290		29,505
Total fair value of plan assets	$	6,238	$	550,649	$	18,290	$	575,177

	December 31, 2011
In thousands	Level 1		Level 2		Level 3		Total
Cash equivalents	$	—	$	13,084	$	—	$	13,084
Fixed income:
Corporate and non U.S. government	—		76,046		150		76,196
U.S. treasuries	—		82,989		—		82,989
Mortgage-backed securities	—		40,286		629		40,915
Other	—		7,958		219		8,177
Global equity securities:
Small cap equity	7,094		—		—		7,094
Mid cap equity	7,528		4		—		7,532
Large cap equity	—		47,398		—		47,398
International equity	19,942		19,652		—		39,594
Long/short equity	—		56,575		—		56,575
Pentair Ltd. common shares	16,645		—		—		16,645
Other investments	—		4,563		19,009		23,572
Total fair value of plan assets	$	51,209	$	348,555	$	20,007	$	419,771

Reconciliation of Level 3 Assets

The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2012 and 2011, respectively:

In thousands	January 1, 2012		Net realized and unrealized gains (losses)		Net issuances and settlements			Net transfers into (out of) level 3		December 31, 2012
Other investments	$	19,009	$	1,051	$	(1,770	)	$	—	$	18,290
Fixed income investments	998		22		(1,020		)	—		—
Total	$	20,007	$	1,073	$	(2,790	)	$	—	$	18,290

In thousands	January 1, 2011		Net realized and unrealized gains (losses)		Net issuances and settlements			Net transfers into (out of) level 3		December 31, 2011
Other investments	$	12,991	$	251	$	5,767		$	—	$	19,009
Fixed income investments	1,777		87		(866		)	—		998
Total	$	14,768	$	338	$	4,901		$	—	$	20,007

Expected Future Service to Be Paid by Plans

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the plans for the years ended December 31 as follows:

In millions	U.S. pension plans		Non-U.S. pension plans		Other post- retirement plans
2013	$	7.5	$	16.7	$	4.5
2014	8.6		17.8		4.5
2015	10.2		18.5		4.4
2016	12.9		17.5		4.3
2017	14.8		18.3		4.2
2018-2022	103.3		105.7		19.6

Pension benefits

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost for our pension plans for the years ended December 31 were as follows:

	U. S. pension plans									Non-U.S. pension plans
In thousands	2012			2011			2010			2012			2011			2010
Service cost	$	12,867		$	10,270		$	9,743		$	3,295		$	2,196		$	1,845
Interest cost	28,208			28,647			27,518			7,545			4,121			4,153
Expected return on plan assets	(29,400		)	(27,952		)	(24,679		)	(3,928		)	(461		)	(433		)
Amortization of transition obligation	—			—			—			—			—			13
Amortization of prior year service cost (benefit)	17			17			17			(15		)	(17		)	(10		)
Actuarial loss	114,272			58,995			6,990			24,162			4,196			7,305
Net periodic benefit cost	$	125,964		$	69,977		$	19,589		$	31,059		$	10,035		$	12,873

Post-retirement

Components of Net Periodic Benefit Cost

Components of net periodic benefit cost for our other post-retirement plans for the years ended December 31 were as follows:

	Other post-retirement plans
In thousands	2012			2011			2010
Service cost	$	219		$	180		$	200
Interest cost	1,860			1,889			2,013
Amortization of prior year service benefit	(24		)	(27		)	(27		)
Actuarial (gain) loss	8,159			2,494			(647		)
Net periodic benefit cost	$	10,214		$	4,536		$	1,539

Benefit Obligations

Weighted-Average Assumptions used to Determine Domestic Benefit Obligations and Domestic Net Periodic Benefit Cost

Weighted-average assumptions used to determine benefit obligations as of December 31 were as follows:

	U.S. pension plans			Non-U.S. pension plans			Other post-retirement plans
Percentages	2012	2011	2010	2012	2011	2010	2012	2011	2010
Discount rate	3.67	5.05	5.90	3.85	4.82	5.10	3.40	5.05	5.90
Rate of compensation increase	4.37	4.00	4.00	3.02	2.98	3.00	—	—	—

Net Periodic Benefit Cost

Weighted-Average Assumptions used to Determine Domestic Benefit Obligations and Domestic Net Periodic Benefit Cost

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 were as follows:

	U.S. pension plans			Non-U.S. pension plans			Other post- retirement plans
Percentages	2012	2011	2010	2012	2011	2010	2012	2011	2010
Discount rate	5.05	5.90	6.00	4.82	5.13	5.50	5.05	5.90	6.00
Expected long-term return on plan assets	7.50	8.00	8.50	4.09	4.50	4.50	—	—	—
Rate of compensation increase	4.21	4.00	4.00	2.98	2.98	3.00	—	—	—