Retirement Benefit Plans

During the third quarter of 2013, the Company amended the Combined Defined Benefit Plan for NACCO Industries, Inc. and its subsidiaries (the “Combined Plan”) to freeze pension benefits for all employees, including those for certain unconsolidated mines' employees and cost of living adjustments ("COLA's") for other employees, effective January 1, 2014. As a result of this amendment, the Company remeasured the Combined Plan and recorded a $1.7 million pre-tax curtailment gain applying a discount rate of 4.70% and a long-term rate of return on assets of 7.75%. In connection with the plan freeze, the Company recognized a decrease to its pension liability of $7.3 million.

The Company also approved freezing all pension benefits under its Supplemental Retirement Benefit Plan (the “SERP”). In years prior to 2013, benefits other than COLA’s were frozen for all SERP participants. Effective January 1, 2014, all COLA benefits under the SERP will be eliminated for all plan participants.

For the third quarter of 2013, the net periodic benefit cost for defined benefit pension plans reflects expense calculated based upon the remeasurement.

The components of pension and postretirement health care (income) expense are set forth below:



	THREE MONTHS ENDED						NINE MONTHS ENDED
	SEPTEMBER 30						SEPTEMBER 30
	2013			2012			2013			2012
U.S. Pension and Postretirement Health Care
Service cost	$	20		$	20		$	58		$	59
Interest cost	698			765			2,164			2,411
Expected return on plan assets	(1,100		)	(1,056		)	(3,403		)	(3,291		)
Amortization of actuarial loss	365			680			1,617			2,133
Amortization of prior service credit	(33		)	(64		)	(133		)	(190		)
Curtailment gain	(1,701		)	—			(1,701		)	—
Total	$	(1,751	)	$	345		$	(1,398	)	$	1,122
Non-U.S. Pension
Service cost	$	—		$	—		$	—		$	—
Interest cost	48			52			149			155
Expected return on plan assets	(72		)	(72		)	(215		)	(214		)
Amortization of actuarial loss	31			33			92			98
Total	$	7		$	13		$	26		$	39