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 nine months ended September 30, 2013 and 2012:

	Three Months Ended September 30						Nine Months Ended September 30
Pension Benefits (in thousands)	2013			2012			2013			2012
Service cost	$	291		$	265		$	874		$	795
Interest cost	975			1,189			3,229			3,569
Expected return on plan assets	(1,661		)	(1,539		)	(4,995		)	(4,620		)
Amortization of prior service cost	18			7			56			20
Net actuarial loss amortization	909			854			2,727			2,564
Net periodic pension cost	$	532		$	776		$	1,891		$	2,328

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 September 30, 2013, the Company contributed the $1.3 million and elected to make a discretionary contribution of an additional $1.2 million.

European Plans:

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

	Three Months Ended September 30						Nine Months Ended September 30
Pension Benefits (in thousands)	2013			2012			2013			2012
Service cost	$	80		$	42		$	237		$	126
Interest cost	390			439			1,146			1,317
Expected return on plan assets	(326		)	(325		)	(957		)	(975		)
Net actuarial loss amortization	53			4			155			12
Foreign currency exchange	4			(6		)	12			(7		)
Net periodic pension cost	$	201		$	154		$	593		$	473

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 September 30, 2013, the Company contributed $1.1 million. The Company expects to contribute the remaining $1.0 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 cannot predict if future benefit payments to be made by the multi-employer plan will be reduced. As of September 30, 2013 and December 31, 2012, respectively, the Company has a $0.6 million and $1.7 million liability recorded to account for the reduction of benefits.