Pensions and Other Benefits

6 Months Ended

Jun. 30, 2012

Pensions and Other Benefits [Abstract]

Pensions and Other Benefits

4. Pensions and Other Benefits

We sponsor defined benefit pension plans in various countries. The amount of contributions to the plans is based on several factors including the funding rules in each country. We also provide certain medical, dental and life insurance benefits ("Other Postretirement Benefits") for retired United States and Canadian employees that meet program qualifications. We currently fund this plan as claims are paid.

The components of net periodic benefit cost for the six months ended June 30, 2012 and 2011 are, as follows:

	Pension Plans				Other Postretirement Benefits
(in thousands)	2012		2011		2012		2011
Service cost	$1,699		$1,698		$536		$456
Interest cost	7,589		10,068		1,844		1,909
Expected return on plan assets	(7,184	)	(7,962	)	-		-
Amortization:
Transition obligation	37		44		-		-
Prior service cost/(credit)	17		18		(1,834	)	(1,833	)
Net actuarial loss	2,839		2,844		1,608		1,506
Settlement charge	119,735		-		-		-
Net periodic benefit costs	$124,732		$6,710		$2,154		$2,038

In the first quarter of 2012, the Company announced a plan to significantly reduce its pension plan liabilities by settling certain pension obligations leading to settlement charges totaling $119.7 million for the first six months of 2012. In the first quarter of 2012, we recorded a settlement charge of $9.2 million related to the extinguishment of our pension plan liability in Sweden. In the second quarter of 2012, we recorded settlement charges totaling $110.6 million related to settling a majority of the defined benefit pension plan liabilities in the United States and Canada. As a result of settling these pension liabilities and making additional voluntary contributions, the combined unfunded pension liability declined from $101.2 million as of December 31, 2011 to $26.9 million at June 30, 2012.