Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

We sponsor an employee savings plan (“401(k) plan”) and a defined benefit pension plan (the “pension plan”) covering substantially all our United States based employees.

Total employer contributions to the 401(k) plan were $6.8 million, $6.5 million and $6.3 million during the years ended December 31, 2009, 2010 and 2011, respectively.

During the first quarter of 2009, the Company announced the freezing of benefit accruals under the defined benefit pension plan for United States employees (“the Plan”) effective May 14, 2009.  As a result, the Company recorded a curtailment gain of $4.4 million and a reduction in accrued pension of $11.4 million which is included in other long term liabilities.  During 2009, the Company recorded a one-time discretionary $4.0 million employer 401(k) contribution and in 2010 permanently increased the 401(k) employer contribution to offset the negative impact of the Plan freeze.

We use a December 31, measurement date for our pension plan.  Gains and losses are amortized on a straight-line basis over the average remaining service period of active participants.  The following table provides a reconciliation of the projected benefit obligation, plan assets and funded status of the pension plan at December 31,:

	2010			2011
Accumulated Benefit Obligation	$	66,136		$	82,289
Change in benefit obligation
Projected benefit obligation at beginning of year	$	61,222		$	66,136
Service cost	219			281
Interest cost	3,585			3,519
Actuarial loss	5,538			15,305
Benefits paid	(4,428		)	(2,952		)
Projected benefit obligation at end of year	$	66,136		$	82,289
Change in plan assets
Fair value of plan assets at beginning of year	$	52,842		$	55,309
Actual gain (loss) on plan assets	4,962			(2,145		)
Employer contributions	1,933			1,610
Benefits paid	(4,428		)	(2,952		)
Fair value of plan assets at end of year	$	55,309		$	51,822
Funded status	$	(10,827	)	$	(30,467	)

Amounts recognized in the consolidated balance sheets consist of the following at December 31,:

	2010			2011
Accrued long-term pension liability	$	10,827		$	30,467
Accumulated other comprehensive loss	(29,313		)	(49,563		)

The following actuarial assumptions were used to determine our accumulated and projected benefit obligations as of December 31,:

	2010		2011
Discount rate	5.41	%	4.30	%
Expected return on plan assets	8.00	%	8.00	%

Accumulated other comprehensive loss for the years ended December 31, 2010 and 2011 consists of net actuarial losses of $29,313 and $49,563, respectively, not yet recognized in net periodic pension cost (before income taxes).

Other changes in plan assets and benefit obligations recognized in other comprehensive income in 2011 are as follows:

Current year actuarial loss	$	(21,828	)
Amortization of actuarial loss	1,578
Total recognized in other comprehensive loss	$	(20,250	)

The estimated portion of net actuarial loss in accumulated other comprehensive loss that is expected to be recognized as a component of net periodic pension cost in 2012 is $2,927.

Net periodic pension cost for the years ended December 31, consists of the following:

	2009			2010			2011
Service cost — benefits earned during the period	$	1,887		$	219		$	281
Interest cost on projected benefit obligation	3,920			3,585			3,519
Return on plan assets	(3,817		)	(4,227		)	(4,378		)
Curtailment gain	(4,368		)	—			—
Transition amount	1			—			—
Prior service cost	(88		)	—			—
Amortization of loss	1,627			1,313			1,578
Net periodic pension cost	$	(838	)	$	890		$	1,000

The following actuarial assumptions were used to determine our net periodic pension benefit cost for the years ended December 31,:

	2009			2010		2011
Discount rate	5.97	%	*	5.86	%	5.41	%
Expected return on plan assets	8.00	%		8.00	%	8.00	%
Rate of compensation increase	3.50	%		N/A		N/A

*For the year ending December 31, 2009, the discount rate used in determining pension expense was 5.97% in the first quarter of 2009;  the discount rate used for purposes of remeasuring plan liabilities as of the date the plan freeze was approved and for purposes of measuring pension expense for the remainder of 2009 was 7.30%.

In determining the expected return on pension plan assets, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance.  In addition, we consult with financial and investment management professionals in developing appropriate targeted rates of return.

Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and providing adequate liquidity to meet immediate and future benefit payment requirements.

The allocation of pension plan assets by category is as follows at December 31,:

	Percentage of Pension Plan Assets				Target Allocation
	2010		2011		2012
Equity securities	70	%	69	%	75	%
Debt securities	30		31		25
Total	100	%	100	%	100	%

As of December 31, 2011, the Plan held 27,562 shares of our common stock, which had a fair value of $0.7 million.  We believe that our long-term asset allocation on average will approximate the targeted allocation. We regularly review our actual asset allocation and periodically rebalance the pension plan’s investments to our targeted allocation when deemed appropriate.

The following table sets forth the fair value of Plan assets as of December 31,:

	2010		2011
Common Stock	$	24,035	$	21,893
Money Market Fund	14,818		12,461
Mutual Funds	14,456		14,112
Fixed Income Securities	2,000		3,356
Total Assets at Fair Value	$	55,309	$	51,822

FASB guidance, defines fair value, establishes a framework for measuring fair value and related disclosure requirements. A valuation hierarchy was established for disclosure of the inputs to the valuations used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from or corroborated by observable market data through correlation. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2010 and 2011:

Common Stock:	Common stock is valued at the closing price reported on the common stock’s respective stock exchange and is classified within level 1 of the valuation hierarchy.
Money Market Fund:	These investments are public investment vehicles valued using $1 for the Net Asset Value (NAV). The money market fund is classified within level 2 of the valuation hierarchy.
Mutual Funds:	These investments are public investment vehicles valued using the NAV provided by the administrator of the fund.  The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding.  The NAV is a quoted price in an active market and is classified within level 1 of the valuation hierarchy.
Fixed Income Securities:	Valued at the closing price reported on the active market on which the individual securities are traded and are classified within level 1 of the valuation hierarchy.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The following table sets forth by level, within the fair value hierarchy, the Plan's assets at fair value as of December 31, 2011:

	Level 1		Level 2		Total
Common Stock	$	21,893	$	—	$	21,893
Money Market Fund	—		12,461		12,461
Mutual Funds	14,112		—		14,112
Fixed Income Securities	3,356		—		3,356
	$	39,361	$	12,461	$	51,822

We are required and expect to contribute approximately $2.0 million to our pension plan for the 2012 Plan year.

The following table summarizes the benefits expected to be paid by our pension plan in each of the next five years and in aggregate for the following five years.  The expected benefit payments are estimated based on the same assumptions used to measure the Company’s projected benefit obligation at December 31, 2011 and reflect the impact of expected future employee service.

2012		$3,665
2013	2,571
2014	3,072
2015	2,986
2016	2,895
2017-2021	20,980