XML 68 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Retirement Benefit Plans
 6 Months Ended
Jun. 30, 2012
General Discussion of Pension and Other Postretirement Benefits [Abstract]  
Retirement Benefit Plans
RETIREMENT BENEFIT PLANS
Defined Contribution Plans
The company operates defined contribution retirement benefit plans for all qualifying employees. The assets of the plans are held separately from those of the company in funds under the control of trustees. When employees leave the plans prior to vesting fully in the contributions, the contributions payable by the company are reduced by the amount of forfeited contributions.
The total amounts charged to the Condensed Consolidated Statements of Income for the six months ended June 30, 2012 and 2011, of $30.9 million and $29.7 million, respectively, represent contributions paid or payable to these plans by the company at rates specified in the rules of the plans. As of June 30, 2012, accrued contributions of $12.4 million (December 31, 2011: $20.0 million) for the current year will be paid to the plans when due.
Defined Benefit Plans
The company maintains legacy defined benefit pension plans for qualifying employees of its subsidiaries in the U.K., Ireland, Germany, and Taiwan. All defined benefit plans are closed to new participants. The company also maintains a post-retirement medical plan in the U.S., which was closed to new participants in 2005. In 2006, the plan was amended to eliminate benefits for all participants who did not meet retirement eligibility by 2008. The assets of all defined benefit plans are held in separate trustee-administered funds. Under the plans, the employees are generally entitled to retirement benefits based on final salary at retirement.
The components of net periodic benefit cost in respect of these defined benefit plans are as follows:
 
Three months ended June 30,
 
Six months ended June 30,
 
Retirement Plans
 
Medical Plan
 
Retirement Plans
 
Medical Plan
$ in millions
2012
 
2011
 
2012
 
2011
 
2012
 
2011
 
2012
 
2011
Service cost
(1.1
)
 
(1.1
)
 
(0.1
)
 
(0.1
)
 
(2.2
)
 
(2.1
)
 
(0.2
)
 
(0.3
)
Interest cost
(4.8
)
 
(4.5
)
 
(0.6
)
 
(0.6
)
 
(9.6
)
 
(9.1
)
 
(1.2
)
 
(1.3
)
Expected return on plan assets
4.4

 
3.8

 
0.1

 
0.1

 
8.8

 
7.5

 
0.2

 
0.2

Amortization of prior service cost
—

 
(0.7
)
 
0.5

 
0.5

 
—

 
(1.5
)
 
1.0

 
1.0

Amortization of net actuarial (loss)/gain
(0.3
)
 
0.2

 
(0.1
)
 
(0.7
)
 
(0.6
)
 
0.3

 
(0.2
)
 
(1.4
)
Net periodic benefit cost
(1.8
)
 
(2.3
)
 
(0.2
)
 
(0.8
)
 
(3.6
)
 
(4.9
)
 
(0.4
)
 
(1.8
)

The estimated amount of contributions expected to be paid to the retirement plans during 2012 is $6.1 million, with an additional expected contribution of $2.1 million to the medical plan.