Pension Plans and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2012

Pension Plans and Other Postretirement Benefits

NOTE 10—Pension Plans and Other Postretirement Benefits:

The following information is provided for domestic and foreign pension and postretirement defined benefit plans:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(In thousands)
Net Periodic Pension Benefit Cost (Credit):
Service cost	$	3,174		$	3,242		$	9,391		$	9,677
Interest cost		8,076			8,252			24,271			24,713
Expected return on assets		(11,634	)		(12,152	)		(34,913	)		(36,438	)
Amortization of prior service benefit		(245	)		(238	)		(731	)		(714	)
Amortization of net loss		9,124			6,562			27,224			19,669
Total net periodic pension benefit cost	$	8,495		$	5,666		$	25,242		$	16,907
Net Periodic Postretirement Benefit Cost (Credit):
Service cost	$	69		$	65		$	206		$	197
Interest cost		793			848			2,379			2,545
Expected return on assets		(122	)		(127	)		(366	)		(382	)
Amortization of prior service benefit		(24	)		(174	)		(72	)		(523	)
Amortization of net loss		446			602			1,338			1,807
Total net periodic postretirement benefit cost	$	1,162		$	1,214		$	3,485		$	3,644
Total net periodic pension and postretirement benefit cost	$	9,657		$	6,880		$	28,727		$	20,551

During the three-month and nine-month periods ended September 30, 2012, we made a contribution of $14.1 million to our SERP in connection with the retirement of our former CEO and executive chairman, triggering a pension settlement charge of approximately $6.5 million which was reported in Restructuring and other charges on our consolidated statements of income for the three-month and nine-month periods ended September 30, 2012.

During the three-month and nine-month periods ended September 30, 2012, we made contributions of $0.3 million and $3.0 million, respectively, to our qualified and nonqualified pension plans. During the three-month and nine-month periods ended September 30, 2011, we made contributions of $1.1 million and $54.7 million, respectively, to our qualified and nonqualified pension plans.

We paid $0.7 million and $2.6 million in premiums to the U.S. postretirement benefit plan during the three-month and nine-month periods ended September 30, 2012, respectively. Also, we paid $0.7 million and $2.8 million in premiums to the U.S. postretirement benefit plan during the three-month and nine-month periods ended September 30, 2011, respectively.

On October 1, 2012, various amendments to certain of our U.S. pension and defined contribution plans were approved by our Board of Directors. These amendments provide for formula changes to the related defined contribution plans as well as special benefits for certain defined benefit plan participants which culminate in a freeze of pension benefits under the related qualified and nonqualified defined benefit plan after a two year transition period. Using latest available actuarial assumptions, these changes are expected to result in the recognition of a defined benefit pension plan curtailment gain in the fourth quarter of 2012 expected to range between $4 million and $6 million, as well as a one-time employer contribution to the Company’s defined contribution plan in the fourth quarter of 2012 (estimated to range between $10 million and $11 million).