Postretirement Benefit Plans

6 Months Ended

Jun. 30, 2012

Postretirement Benefit Plans [Abstract]

POSTRETIREMENT BENEFIT PLANS

8. POSTRETIREMENT BENEFIT PLANS

Defined Benefit Pension Plans

The Company sponsors various funded qualified and unfunded non-qualified defined benefit pension plans, the most significant of which cover employees in the U.S. and U.K. locations. The U.S. and U.K. defined benefit pension plans are frozen and service benefits are no longer being accrued.

Components of Net Periodic Benefit Cost

	UNITED STATES
(In thousands)	Three Months Ended June  30						Six Months Ended June  30
	2012			2011			2012			2011
Interest cost	$	1,735		$	1,761		$	3,471		$	3,523
Expected return on plan assets		(2,103	)		(2,013	)		(4,205	)		(4,025	)
Amortization of net loss		932			786			1,863			1,571
Net periodic benefit cost	$	564		$	534		$	1,129		$	1,069

	UNITED KINGDOM
(In thousands)	Three Months Ended June  30						Six Months Ended June  30
	2012			2011			2012			2011
Interest cost	$	210		$	279		$	419		$	555
Expected return on plan assets		(221	)		(264	)		(441	)		(525	)
Amortization of net loss		11			52			22			103
Net periodic benefit cost	$	—		$	67		$	—		$	133

Employer Contributions

U.S. Plans

The Company expects to contribute approximately $6,698,000 to its U.S. qualified defined benefit pension plans in 2012 and to pay $268,000 in 2012 related to its unfunded non-qualified plans. As of June 30, 2012, $2,120,000 had been contributed to the qualified plans and $152,000 had been paid related to the non-qualified plans.

U.K. Plan

The Company’s United Kingdom subsidiary expects to contribute approximately $940,000 to its defined benefit pension plan in 2012. As of June 30, 2012, $507,000 had been contributed to the plan.

Defined Contribution Plans

The Company sponsors retirement savings defined contribution plans that cover U.S. and U.K. employees. The Company also sponsors a qualified profit sharing plan for its U.S. employees. The retirement savings and profit sharing defined contribution plans include a qualified plan and a non-qualified supplemental executive plan.

Defined contribution plan expenses for the Company’s retirement savings plan were $1,058,000 and $2,112,000, respectively, for the three and six months ended June 30, 2012, compared to $1,005,000 and $1,955,000, respectively, for three and six months ended June 30, 2011.

Expenses related to the Company’s profit sharing plan were $1,352,000 and $2,881,000, respectively, for the three and six months ended June 30, 20112 compared to $1,510,000 and $2,660,000, respectively, for the three and six months ended June 30, 2011.

In July 2011, the Company established a rabbi trust to fund the obligations of its previously unfunded non-qualified supplemental executive defined contribution plans (supplemental plans). The trust comprises various mutual fund investments selected by the participants of the supplemental plans. In accordance with the accounting guidance for rabbi trust arrangements, the assets of the trust and the obligations of the supplemental plans are reported on the Company’s consolidated balance sheets. The Company elected the fair value option for the mutual fund investment assets so that offsetting changes in the mutual fund values and defined contribution plan obligations would be recorded in earnings in the same period. Therefore, the mutual funds are reported at fair value with any subsequent changes in fair value recorded in the statements of income. The liabilities related to the supplemental plans increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciates and decrease when the value of the trust assets declines (i.e., supplemental plan income is recognized). At June 30, 2012, the balance of the trust assets was $1,429,000, which equaled the balance of the supplemental plan liabilities (see the long-term investments section in Note 3 for further information regarding the Company’s mutual fund assets).