Retirement Plans

6 Months Ended

Jul. 02, 2011

Retirement Plans [Abstract]

Retirement Plans

Note 7 — Retirement Plans

The Company’s Alside division sponsors a defined benefit pension plan which covers hourly workers at its plant in West Salem, Ohio and a defined benefit retirement plan covering salaried employees, which was frozen in 1998 and subsequently replaced with a defined contribution plan. The Company’s Gentek subsidiary sponsors a defined benefit pension plan for hourly union employees at its Woodbridge, New Jersey plant (together with the Alside sponsored defined benefit plans, the “Domestic Plans”) as well as a defined benefit pension plan covering Gentek Canadian salaried employees and hourly union employees at the Lambeth, Ontario plant, a defined benefit pension plan for the hourly union employees at its Burlington, Ontario plant and a defined benefit pension plan for the hourly union employees at its Pointe Claire, Quebec plant (the “Foreign Plans”). Accrued pension liabilities are included in accrued and other long-term liabilities in the accompanying balance sheets. The actuarial valuation measurement date for the defined benefit pension plans is December 31st. Components of defined benefit pension plan costs are as follows (in thousands):

	Quarters Ended
	July 2, 2011						July 3, 2010
	Domestic			Foreign			Domestic			Foreign
	Plans			Plans			Plans			Plans
	Successor			Successor			Predecessor			Predecessor
Net periodic pension cost
Service cost	$	186		$	652		$	155		$	593
Interest cost		772			961			778			887
Expected return on assets		(845	)		(1,010	)		(760	)		(852	)
Amortization of unrecognized:
Prior service costs		—			—			7			11
Cumulative net loss		—			—			303			48
Net periodic pension cost	$	113		$	603		$	483		$	687

	Six Months Ended
	July 2, 2011						July 3, 2010
	Domestic			Foreign			Domestic			Foreign
	Plans			Plans			Plans			Plans
	Successor			Successor			Predecessor			Predecessor
Net periodic pension cost
Service cost	$	372		$	1,300		$	310		$	1,197
Interest cost		1,544			1,916			1,556			1,790
Expected return on assets		(1,690	)		(2,014	)		(1,520	)		(1,719	)
Amortization of unrecognized:
Prior service costs		—			—			14			22
Cumulative net loss		—			—			606			96
Net periodic pension cost	$	226		$	1,202		$	966		$	1,386

In March 2010, the President signed into law the Patient Protection and Affordable Care Act (“PPACA”) and the Health Care and Education Reconciliation Act of 2010 (“Reconciliation Act”). The PPACA and Reconciliation Act include provisions that reduce the tax benefits available to employers that receive Medicare Part D subsidies. During the first quarter of 2010, the Company recognized a $0.1 million impact on its deferred tax asset as a result of the reduced deductibility of the subsidy.

Although changes in market conditions, current pension law and uncertainties regarding significant assumptions used in the actuarial valuations may have a material impact on future required contributions to the Company’s pension plans, the Company currently does not expect funding requirements to have a material adverse impact on current or future liquidity.

The actuarial valuations require significant estimates and assumptions to be made by management, primarily the funding interest rate, discount rate and expected long-term return on plan assets. These assumptions are all susceptible to changes in market conditions. The funding interest rate and discount rate are based on representative bond yield curves maintained and monitored by independent third parties. In determining the expected long-term rate of return on plan assets, the Company considers historical market and portfolio rates of return, asset allocations and expectations of future rates of return.