Postretirement and Other Employee Benefits

9 Months Ended

May 31, 2012

Postretirement and Other Employee Benefits

9. Postretirement and Other Employee Benefits

The Company sponsors defined benefit pension plans in several countries in which it operates. The pension obligations relate primarily to the following: (a) a funded retirement plan in the United Kingdom and (b) both funded and unfunded retirement plans mainly in Austria, Canada, France, Germany, Japan, The Netherlands, Poland, and Taiwan and which provide benefits based upon years of service and compensation at retirement.

The following table provides information about net periodic benefit cost for the pension plans during the three months and nine months ended May 31, 2012 and 2011 (in thousands):

	Three months ended						Nine months ended
	May 31, 2012			May 31, 2011			May 31, 2012			May 31, 2011
Service cost	$	370		$	376		$	1,060		$	1,136
Interest cost		1,986			1,441			5,609			4,259
Expected long-term return on plan assets		(1,650	)		(1,118	)		(4,524	)		(3,315	)
Amortization of prior service cost		(7	)		(6	)		(21	)		(19	)
Recognized actuarial loss		308			447			913			1,453
Curtailment gain		—			—			—			(1,874	)
Net periodic benefit cost	$	1,007		$	1,140		$	3,037		$	1,640

During the nine months ended May 31, 2012, the Company made contributions of approximately $3.5 million to its defined benefit pension plans. The Company expects to make total cash contributions of between $4.2 million and $4.8 million to its funded pension plans during fiscal year 2012.