content_image/174568.jpg content_image/174569.jpg content_image/174570.jpg
assurance as to the ultimate disposition of these other matters, we believe they will not have a material adverse effect on our results from operations or financial position. 

## NoTE 8: EMployEE BENEFIT plANS 

## Pensions and Other Post-retirement Plans 

We sponsor defined benefit pension plans covering substantially all U.S. employees and we provide certain post-retirement benefits for qualifying retired employees. The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of assets over the two- year period ended December 31, 2012, and the funded status as of December 31, 2012 and December 31, 2011 (in thousands): 

<img src='content_image/174568.jpg'>

We also sponsor post-retirement term life insurance benefits for substantially all retirees who retire from active service. The accumulated post- retirement benefit obligation under all such plans totaled $1.9 million at December 31, 2012 and $1.6 million at December 31, 2011. We are indemnified by insurance carriers for all retiree term life coverage. 

The following table provides the amounts recognized in the consolidated balance sheets as of December 31, 2012 and December 31, 2011 (in thousands): 

<img src='content_image/174569.jpg'>

The benefit obligation and prepaid benefit costs were calculated by applying the following weighted average assumptions: 

<img src='content_image/174570.jpg'>

The above assumptions were calculated based on information as of December 31, 2012 and December 31, 2011, the measurement dates for the plans. The discount rate is based on the yield curve for investment-grade corporate bonds as published by the U.S. Treasury Department. The expected rate of return on plan assets is based upon consideration of the plan’s current asset mix, historical long-term return rates and the plan’s historical performance. Our current expected rate on plan assets of 7.2% is based on historical returns over the past ten years. 

