Employee Benefit Plans

The Company has a 401(k) retirement savings plan (the “Mohawk Plan”) open to substantially all U.S. and Puerto Rico based employees who have completed 90 days of eligible service. The Company contributes $.50 for every $1.00 of employee contributions up to a maximum of 6% of the employee’s salary based upon each individual participants election. Employee and employer contributions to the Mohawk Plan were $42,681 and $17,654 in 2014, $38,632 and $15,994 in 2013 and $35,986 and $15,046 in 2012, respectively.

The Company also has various pension plans covering employees in Belgium, France, and the Netherlands (the “Non-U.S. Plans”) within the Laminate and Wood segment. Benefits under the Non-U.S. Plans depend on compensation and years of service. The Non-U.S. Plans are funded in accordance with local regulations. For 2014, the Company determined that the Belgian pension plan no longer qualified as a defined benefit plan. As a result, the activity for the Belgian pension plan has not been included in the following reported results for the year ended December 31, 2014. The Company uses December 31 as the measurement date for its Non-U.S. Plans.

Components of the net periodic benefit cost of the Non-U.S. Plans are as follows:



	2014			(a)	2013		2012
Service cost of benefits earned	$	591			2,450		1,870
Interest cost on projected benefit obligation	796				1,285		1,367
Expected return on plan assets	(695		)		(1,094	)	(1,192	)
Amortization of actuarial loss (gain)	11				13		(10	)
Effect of curtailments and settlements	(19		)		—		—
Net pension expense	$	684			2,654		2,035

Assumptions used to determine net periodic pension expense for the Non-U.S. Plans:



	2014	(a)	2013
Discount rate	3.50%		3.25%
Expected rate of return on plan assets	3.27%		3.27%
Rate of compensation increase	2.00%-4.00%		2.00%-4.00%
Underlying inflation rate	2.00%		2.00%

The obligations, plan assets and funding status of the Non-U.S. Plans were as follows:



	2014			(a)	2013
Change in benefit obligation:
Projected benefit obligation at end of prior year	$	23,192			37,551
Cumulative foreign exchange effect	(2,822		)		1,813
Service cost	591				2,450
Interest cost	796				1,285
Plan participants contributions	180				886
Actuarial loss	5,240				(2,952	)
Benefits paid	(640		)		(1,337	)
Prior service cost	29				(7	)
Effect of curtailment and settlement	(22		)		—
Projected benefit obligation at end of year	$	26,544			39,689
Change in plan assets:
Fair value of plan assets at end of prior year	$	20,664			32,558
Cumulative foreign exchange effect	(2,464		)		1,444
Actual return on plan assets	4,995				(940	)
Employer contributions	489				2,114
Benefits paid	(640		)		(1,337	)
Plan participant contributions	180				886
Fair value of plan assets at end of year	$	23,224			34,725
Funded status of the plans:
Ending funded status	$	(3,320	)		(4,964	)
Net amount recognized in consolidated balance sheets:
Accrued benefit liability (non-current liability)	$	(3,320	)		(4,964	)
Accumulated other comprehensive income	1,450				157
Net amount recognized	$	(1,870	)		(4,807	)

(a) Belgian pension plan has not been included in the reported results for the year ended December 31, 2014.

The Company’s net amount recognized in other comprehensive income related to actuarial gains (losses) was $(659), $771 and $(1,591) for the years ended December 31, 2014, 2013 and 2012, respectively.

Assumptions used to determine the projected benefit obligation for the Non-U.S. Plans were as follows:



	2014	(a)	2013
Discount rate	2.25%		3.50%
Rate of compensation increase	2.00%-4.00%		2.00%-4.00%
Underlying inflation rate	1.80%		2.00%

(a) Belgian pension plan has not been included in the reported results for the year ended December 31, 2014.

The discount rate assumptions used to account for pension obligations reflect the rates at which the Company believes these obligations will be effectively settled. In developing the discount rate, the Company evaluated input from its actuaries, including estimated timing of obligation payments and yield on investments. The rate of compensation increase for the Non-U.S. Plans is based upon the Company’s annual reviews.



	Non-U.S. Plans
	December 31, 2014		(a)	December 31, 2013
Plans with accumulated benefit obligations in excess of plan assets:
Projected benefit obligation	$	23,570		21,579
Accumulated benefit obligation	22,020			20,302
Fair value of plan assets	20,321			18,934
Plans with plan assets in excess of accumulated benefit obligations:
Projected benefit obligation	$	2,974		18,110
Accumulated benefit obligation	2,880			15,554
Fair value of plan assets	2,902			15,791

(a) Belgian pension plan has not been included in the reported results for the year ended December 31, 2014.

Estimated future benefit payments for the Non-U.S. Plans are as follows:



2015	$	636
2016	628
2017	630
2018	645
2019	718
Thereafter	4,159

The Company expects to make cash contributions of $489 to the Non-U.S. Plans in 2015.

The fair value of the Non-U.S. Plans' investments were estimated using market observable data. Within the hierarchy of fair value measurements, these investments represent Level 2 fair values. The fair value and percentage of each asset category of the total investments held by the plans as of December 31, 2014 and 2013 were as follows:

The Company’s approach to developing its expected long-term rate of return on pension plan assets combines an analysis of historical investment performance by asset class, the Company’s investment guidelines and current and expected economic fundamentals.

Non-U.S. Plans:

Insurance contracts (100%)