Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

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. The pension plan was frozen in 2009.

Total employer contributions to the 401(k) plan were $6.5 million, $6.3 million and $6.7 million during the years ended December 31, 2010, 2011 and 2012, respectively.

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,:

	2011			2012
Accumulated Benefit Obligation	$	82,289		$	85,363
Change in benefit obligation
Projected benefit obligation at beginning of year	$	66,136		$	82,289
Service cost	281			277
Interest cost	3,519			3,429
Actuarial loss	15,305			2,790
Benefits paid	(2,952		)	(3,422		)
Projected benefit obligation at end of year	$	82,289		$	85,363
Change in plan assets
Fair value of plan assets at beginning of year	$	55,309		$	51,822
Actual gain (loss) on plan assets	(2,145		)	5,866
Employer contributions	1,610			8,497
Benefits paid	(2,952		)	(3,422		)
Fair value of plan assets at end of year	$	51,822		$	62,763
Funded status	$	(30,467	)	$	(22,600	)

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

	2011			2012
Accrued long-term pension liability	$	30,467		$	22,600
Accumulated other comprehensive loss	(49,563		)	(48,176		)

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

	2011		2012
Discount rate	4.30	%	3.90	%
Expected return on plan assets	8.00	%	8.00	%

Accumulated other comprehensive loss for the years ended December 31, 2011 and 2012 consists of net actuarial losses of $49,563 and $48,176, 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 2012 are as follows:

Current year actuarial loss	$	(1,489	)
Amortization of actuarial loss	2,876
Total recognized in other comprehensive loss	$	1,387

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 2013 is $2.9 million.

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

	2010			2011			2012
Service cost	$	219		$	281		$	277
Interest cost on projected benefit obligation	3,585			3,519			3,429
Return on plan assets	(4,227		)	(4,378		)	(4,566		)
Amortization of loss	1,313			1,578			2,876
Net periodic pension cost	$	890		$	1,000		$	2,016

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

	2010		2011		2012
Discount rate	5.86	%	5.41	%	4.30	%
Expected return on plan assets	8.00	%	8.00	%	8.00	%
Rate of compensation increase	N/A		N/A		N/A

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
	2011		2012		2013
Equity securities	69	%	76	%	75	%
Debt securities	31		24		25
Total	100	%	100	%	100	%

As of December 31, 2012, the Plan held 27,562 shares of our common stock, which had a fair value of $0.8 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,:

	2011		2012
Common Stock	$	21,893	$	25,124
Money Market Fund	12,461		5,209
Mutual Funds	14,112		22,810
Fixed Income Securities	3,356		9,620
Total Assets at Fair Value	$	51,822	$	62,763

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, 2011 and 2012:

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 and December 31, 2012:

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

December 31, 2012	Level 1		Level 2		Total
Common Stock	$	25,124	$	—	$	25,124
Money Market Fund	—		5,209		5,209
Mutual Funds	22,810		—		22,810
Fixed Income Securities	9,620		—		9,620
	$	57,554	$	5,209	$	62,763

We expect to contribute approximately $7.5 million to our pension plan for the 2013 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, 2012 and reflect the impact of expected future employee service.

2013		$2,503
2014	2,901
2015	2,989
2016	2,756
2017	3,359
2018-2022	21,336