Annual report pursuant to Section 13 and 15(d)

Pension and Other Post-retirement Benefit Plans (Tables)

v2.4.0.6
Pension and Other Post-retirement Benefit Plans (Tables)
12 Months Ended
Mar. 31, 2013
Pension and Other Post-retirement Benefit Plans  
Summary of the changes in benefit obligations and plan assets

A summary of the changes in benefit obligations and plan assets is as follows (amounts in thousands):

 
  Pension   Other Benefits  
 
  2013   2012   2013   2012  

Change in Benefit Obligation

                         

Benefit obligation at beginning of the year

  $ 47,892   $ 44,402   $ 1,057   $ 1,339  

Service cost

    1,583     1,310          

Interest cost

    1,903     2,111     27     44  

Plan participants' contributions

    73     84     503     517  

Actuarial (gain) loss

    4,108     2,852     (145 )   (206 )

Foreign currency exchange rate change

    (1,391 )   (1,352 )        

Gross benefits paid

    (1,300 )   (1,515 )   (643 )   (637 )

Curtailments and settlements

    (13,772 )            
                   

Benefit obligation at end of year

  $ 39,096   $ 47,892   $ 799   $ 1,057  
                   

Change in Plan Assets

                         

Fair value of plan assets at beginning of year

  $ 17,156   $ 15,919   $   $  

Actual return on plan assets

    1,097     719          

Foreign currency exchange rate changes

    (799 )   48          

Employer contributions

    2,490     1,901     140     120  

Settlements

    (9,911 )            

Plan participants' contributions

    73     84     503     517  

Gross benefits paid

    (1,300 )   (1,515 )   (643 )   (637 )
                   

Fair value of plan assets at end of year

  $ 8,806   $ 17,156   $   $  
                   

Funded status at end of year

                         

Fair value of plan assets

  $ 8,806   $ 17,156   $   $  

Benefit obligations

    (39,096 )   (47,892 )   (799 )   (1,057 )
                   

Amount recognized at end of year

  $ (30,290 ) $ (30,736 ) $ (799 ) $ (1,057 )
                   
Schedule of amounts recognized in the Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets consist of the following (amounts in thousands):

 
  Pension   Other Benefits  
 
  2013   2012   2013   2012  

Current liability

  $ (644 ) $ (1,183 ) $ (90 ) $ (117 )

Noncurrent liability

    (29,646 )   (29,553 )   (709 )   (940 )
                   

Amount recognized, end of year

  $ (30,290 ) $ (30,736 ) $ (799 ) $ (1,057 )
                   
Schedule of amounts recognized in Accumulated other comprehensive income (loss)

Amounts recognized in Accumulated other comprehensive income (loss) consist of the following (amounts in thousands):

 
  Pension   Other Benefits  
 
  2013   2012   2013   2012  

Net actuarial loss (gain)

  $ 9,742   $ 10,889   $ (1,816 ) $ (1,993 )

Prior service cost

    32     137          
                   

Accumulated other comprehensive income

  $ 9,774   $ 11,026   $ (1,816 ) $ (1,993 )
                   
Schedule of components of benefit costs (credit)

Components of benefit costs (credit) consist of the following (amounts in thousands):

 
  Pension   Other Benefits  
 
  2013   2012   2011   2013   2012   2011  

Net service cost

  $ 1,583   $ 1,310   $ 1,060   $   $   $  

Interest cost

    1,903     2,111     1,836     27     44     62  

Expected return on plan assets

    (656 )   (712 )   (677 )            

Amortization:

                                     

Actuarial (gain) loss

    544     392     126     (322 )   (323 )   (306 )

Prior service cost

    20     25     22              
                           

Recurring activity

    3,394     3,126     2,367     (295 )   (279 )   (244 )

One time curtailment expense

    266         291              
                           

Net periodic benefit cost (credit)

  $ 3,660   $ 3,126   $ 2,658   $ (295 ) $ (279 ) $ (244 )
                           
Schedule of asset allocation for the Company's defined benefit pension plans and the target allocation by asset category

The asset allocation for the Company's defined benefit pension plans at March 31, 2013 and the target allocation for 2013, by asset category, are as follows:

Asset Category
  Target
Allocation
(%)
  Plan Assets
at March 31,
2013
(%)
 

Insurance(1)

    10     7  

International equities

    30     33  

International bonds

    50     58  

Other

    10     2  
           

 

    100     100  
           

(1)
Comprised of assets held by the defined benefit pension plan in Germany.
Schedule of other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income (loss)

Other changes in plan assets and benefit obligations recognized in Accumulated other comprehensive income (loss) are as follows (amounts in thousands):

 
  Pension   Other Benefits  
 
  2013   2012   2011   2013   2012   2011  

Current year actuarial (gain) loss

  $ 3,669   $ 2,845   $ 2,918   $ (145 ) $ (206 ) $ (7 )

Foreign currency exchange rate changes

    (238 )   (218 )   728     322     323     306  

Amortization of actuarial gain (loss)

    (4,582 )   (392 )   (649 )            

Current year prior service cost

            270              

Amortization of prior service cost

    (101 )   (25 )   (292 )            
                           

Total recognized in other comprehensive income

  $ (1,252 ) $ 2,210   $ 2,975   $ 177   $ 117   $ 299  
                           

Total recognized in net periodic benefit cost and other comprehensive income (loss)

  $ 2,408   $ 5,336   $ 5,633   $ (118 ) $ (162 ) $ 55  
                           
Schedule of expected future benefit payments

The Company expects to have benefit payments in the future as follows (amounts in thousands):

 
  Expected benefit payments  
 
  2014   2015   2016   2017   2018   2019 - 2023  

Pension benefits

  $ 1,444   $ 1,450   $ 1,546   $ 1,658   $ 1,683   $ 10,450  

Other benefits

    91     90     86     82     77     295  
                           

 

  $ 1,535   $ 1,540   $ 1,632   $ 1,740   $ 1,760   $ 10,745  
                           
Schedule of weighted-average assumptions used to determine the projected benefit obligation at the measurement date and the net periodic cost for the pension and post-retirement plan

The following weighted-average assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic cost for the pension and post-retirement plan (amounts in thousands except percentages):

 
  Pension   Other Benefits  
 
  2013   2012   2013   2012  

Projected benefit obligation:

                         

Discount rate

    4.5 %   4.2 %   2.8 %   3.5 %

Rate of compensation increase

    3.5 %   2.9 %        

Health care cost trend on covered charges

            7.0 %   7.5 %

 

                decreasing to
ultimate trend
of 5% in 2017
    decreasing to
ultimate trend
of 5% in 2017
 

Net periodic benefit cost:

                         

Discount rate

    4.2 %   5.0 %   3.5 %   4.4 %

Rate of compensation increase

    2.9 %   2.9 %        

Expected return on plan assets

    4.0 %   4.4 %        

Health care cost trend on covered charges

            7.5 %   7.5 %

 

                decreasing to
ultimate trend
of 5% in 2017
    decreasing to
ultimate trend
of 5% in 2016
 

Sensitivity of retiree welfare results

                         

Effect of a one percentage point increase in assumed health care cost trend:

                         

—On total service and interest costs components

              $   $ 1  

—On post-retirement benefits obligation

                11     27  

Effect of a one percentage point decrease in assumed health care cost trend:

                         

—On total service and interest costs components

                    (1 )

—On post-retirement benefits obligation

                (10 )   (25 )
Schedule of fair value of pension plan assets measured on recurring basis

The following table sets forth by level, within the fair value hierarchy as described in Note 1, the pension plan's assets, required to be carried at fair value on a recurring basis as of March 31, 2013 and March 31, 2012 (amounts in thousands):

 
   
  Fair Value Measurement Using    
  Fair Value Measurement Using  
 
  Fair Value
March 31,
2013
  Fair Value
March 31,
2012
 
 
  Level 1   Level 2   Level 3   Level 1   Level 2   Level 3  

Cash and cash equivalents

  $   $   $   $   $   $   $   $  

Equity securities:

                                                 

International equities

    2,884     2,884             2,520     2,520          

Fixed income securities:

                                                 

International bonds

    5,098     5,098             4,802     4,802          

Insurance contracts

    636             636     9,700             9,700  

Other

    188     188             134     134          
                                   

 

  $ 8,806   $ 8,170   $   $ 636   $ 17,156   $ 7,456   $   $ 9,700  
                                   
Summary of changes in the fair value of the defined benefit pension plan's Level 3 assets

The table below sets forth a summary of changes in the fair value of the defined benefit pension plan's Level 3 assets for the fiscal year ended March 31, 2013 (amounts in thousands):

Balance at March 31, 2012

  $ 9,700  

Actual return on plan assets

    132  

Employer contributions

    848  

Settlements

    (9,255 )

Employee contributions

    73  

Benefits paid

    (524 )

Foreign currency exchange rate change

    (338 )
       

Balance at March 31, 2013

  $ 636