Tecumseh Products 2012 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2012 Tecumseh Products annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 77

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77

46
The accumulated benefit obligation for all defined benefit pension plans was $177.4 million and $176.2 million at
December 31, 2012 and 2011, respectively.
Information for pension plans with an accumulated benefit obligation in excess of plan assets:
December 31,
(in millions) 2012 2011
Projected benefit obligation............................................................................ $ 184.2 $ 180.8
Accumulated benefit obligation...................................................................... $ 175.9 $ 175.4
Fair value of plan assets.................................................................................. $ 146.9 $ 142.9
Information for pension plans with a projected benefit obligation in excess of plan assets:
December 31,
(in millions) 2012 2011
Projected benefit obligation............................................................................ $ 186.5 $ 182.3
Accumulated benefit obligation...................................................................... $ 177.4 $ 176.2
Fair value of plan assets.................................................................................. $ 148.5 $ 144.2
Components of net periodic expense (benefit) during the year:
Pension Benefits Other Benefits
(in millions) 2012 2011 2012 2011
Service cost ........................................................................... $ 2.4 $ 2.2 $ — $ 0.1
Interest cost ........................................................................... 7.2 8.3 0.1 0.4
Expected return on plan assets .............................................. (8.4)(8.0)— —
Amortization of net loss (gain) ............................................. 3.0 1.5 (9.2)(2.3)
Amortization of unrecognized prior service costs ................ (0.2)(0.3)(3.9)(7.2)
Curtailment and settlement gain ........................................... — — (45.0)—
Net periodic expense (benefit) .............................................. $ 4.0 $ 3.7 $ (58.0)$ (9.0)
Additional Information
Assumptions
Weighted-average assumptions used to determine benefit obligations as of December 31;
Pension Benefits Other Benefits
2012 2011 2012 2011
U.S.-Based Plans:
Discount rate ........................................................................ 3.75% 4.00% 0.50% 4.00%
Rate of compensation increase............................................. 3.50% 4.25% N/A N/A
Europe-Based Plans:
Discount rate ........................................................................ 2.75% 3.80% N/A N/A
Rate of compensation increase............................................. 3.00% 3.00% N/A N/A
India-Based Plans:
Discount rate ........................................................................ 8.25% 8.60% N/A N/A
Rate of compensation increase............................................. 6.00% 6.00% N/A N/A