Tecumseh Products 2012 Annual Report Download - page 46

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Amounts recognized for both pension and other postretirement benefit plans in the consolidated balance sheets and in accumulated
other comprehensive income as of December 31 consist of:
Pension Benefit Other Benefit
(in millions) 2012 2011 2012 2011
Assets and liabilities:
Liabilities – current............................................................................. $ (0.8)$ (0.9)$ (0.2)$ (0.6)
Liabilities – long term......................................................................... $ (37.1)$ (37.5)$ — $ (4.9)
Accumulated other comprehensive income:
Prior service cost (credit).................................................................... $ 0.8 $ 0.6 $ (2.1)$ (42.3)
Net actuarial loss (gain) ...................................................................... $ 41.7 $ 45.4 $ (12.8)$ (26.0)
The estimated net actuarial loss (gain) and prior service cost (credit) for the defined benefit pension plans that will be amortized
from accumulated other comprehensive income into net periodic benefit cost over the next twelve months are $2.7 million and
($0.2) million, respectively. The estimated net actuarial gain and prior service credit for the other defined benefit postretirement
plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next twelve
months is ($12.8) million and ($2.1) million, respectively.
In the fourth quarter of 2012, based on a detailed review of the provisions of our defined benefit plans in India, we have
reclassified these plans from other postretirement benefit plans to pension benefit plans. We have reclassified the disclosures
related to these plans for 2011 accordingly, to conform to classifications used at December 31, 2012. See Note 1, "Accounting
Policies", for a discussion of the impact of this reclassification on our financial statements.
The following table provides a reconciliation of the changes in the pension and postretirement plan benefit obligations and fair
value of plan assets for 2012 and 2011:
Pension Benefit Other Benefit
(in millions) 2012 2011 2012 2011
Change in benefit obligation
Benefit obligation at beginning of period .............................. $ 182.3 $ 164.9 $ 5.2 $ 9.0
Service cost ..................................................................... 2.4 2.2 — 0.1
Interest cost ..................................................................... 7.2 8.3 0.1 0.4
Plan amendments ............................................................ — 0.2 (3.5)(1.2)
Actuarial loss (gain) ........................................................ 4.9 18.7 (0.3)(2.7)
Benefit payments............................................................. (11.0)(11.4)(0.4)(0.4)
Special termination benefits............................................ 0.2 0.4 — —
Settlements ...................................................................... — — (0.9)—
Effect of changes in exchange rate.................................. 0.5 (1.0)— —
Benefit obligation at measurement date ................................. $ 186.5 $ 182.3 $ 0.2 $ 5.2
Change in plan assets
Fair value at beginning of period............................................ $ 144.2 $ 145.8 $ — $ —
Actual return on plan assets............................................. 14.0 9.0 — —
Employer contributions ................................................... 1.3 0.7 0.4 —
Benefit payments ............................................................. (11.0)(10.9)(0.4)—
Effect of changes in exchange rate.................................. — (0.4)— —
Fair value at measurement date .............................................. $ 148.5 $ 144.2 $ — $ —
The changes in benefit obligation due to the "Plan amendments" of $3.5 million and "Settlements" of $0.9 million in 2012 are
related to termination of our postretirement benefits in the second quarter of 2012. The related balance was also reversed from
"Accumulated Other Comprehensive Income" ("AOCI"), resulting in a total non-cash gain of $45.0 million on our
Consolidated Statement of Operations. Due to the negative plan amendment, described in clause (2) of the second paragraph of
this note above, we will record increased amortization of net gains until December 31, 2013.
"Plan amendments" of $1.2 million in 2011, included in “Other Benefit” were due to the elimination of medical coverage for
retirees over 65 and eligible for Medicare.