11. Pensions

U.S. Plans:

For U.S. plans, the following table provides the components of net periodic pension costs of the plans for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended June 30						Six Months Ended June 30
Pension Benefits (in thousands)	2013			2012			2013			2012
Service cost	$	292		$	265		$	583		$	530
Interest cost	1,127			1,164			2,254			2,380
Expected return on plan assets	(1,667		)	(1,522		)	(3,334		)	(3,081		)
Amortization of prior service cost	19			(6		)	38			13
Net actuarial loss amortization	909			876			1,818			1,710
Net periodic pension cost	$	680		$	777		$	1,359		$	1,552

The expected long-term rate of return on plan assets is 7.75% in 2013.

Employer Contributions

In its 2012 financial statements, the Company disclosed that it expected to contribute $1.3 million to its U.S. pension plans in 2013. As of June 30, 2013, the Company made contributions of $0.5 million. The Company expects to contribute the remaining $0.8 million over the balance of the year.

European Plans:

For European plans, the following table provides the components of net periodic pension costs of the plans for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended June 30						Six Months Ended June 30
Pension Benefits (in thousands)	2013			2012			2013			2012
Service cost	$	79		$	42		$	157		$	84
Interest cost	382			439			756			878
Expected return on plan assets	(394		)	(325		)	(631		)	(650		)
Net actuarial loss amortization	126			4			102			8
Foreign currency exchange	2			(2		)	8			(1		)
Net periodic pension cost	$	195		$	158		$	392		$	319

The expected long-term rate of return on plan assets is between 4.50% and 5.40% in 2013.

Employer Contributions

In its 2012 financial statements, the Company disclosed that it expected to contribute $2.1 million to its European pension plans in 2013. As of June 30, 2013, the Company contributed $0.7 million. The Company expects to contribute the remaining $1.4 million over the balance of the year.

Multi-Employer Plan:

In addition to the aforementioned European plans, the Company participates in a multi-employer plan in Europe. This multi-employer plan almost entirely relates to former employees of operations it has divested. Benefits are distributed by the multi-employer plan. In August 2012, the Company learned that the multi-employer plan had elected to reduce benefits to entitled parties. Also in August 2012, the Company learned that the local Labor Court had issued a judgment where it concluded that an employer was required to compensate its pensioners for the shortfall if benefits had been reduced by the plan. As a result, the Company has accrued a liability for the past shortfall to its former employees. The Company recorded a $0.9 million reduction in this liability as of the quarter ended June 30, 2013. The Company cannot predict if future benefit payments to be made by the multi-employer plan will be reduced. As of June 30, 2013 and December 31, 2012, respectively, the Company has a $0.8 million and $1.7 million liability recorded to account for the reduction of benefits.