NoTE 8: EMployEE BENEFIT plANS Pensions and Other Post-retirement Plans 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. 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): 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): 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. F-18 [ HL:10-K ]  Pension Benefits Other Benefits  2012 2011 2012 2011 Change in benefit obligation:  Benefit obligation at beginning of year $ 87,895 $ 76,925 $ 65 $ 68 Service cost 3,974 3,877 — — Interest cost 4,069 4,114 3 3 Participants’ contributions 29 — — — Amendments — 396 — — Actuarial loss 7,450 6,476 7 4 Benefits paid (4,050)  (3,893)  (12)  (10) Benefit obligation at end of year 99,367  87,895  63  65  Change in fair value of plan assets:  Fair value of plan assets at beginning of year  65,082  70,462  —  —  Actual return (loss) on plan assets  6,007  (1,818)  —  —  Employer contributions 1,447 331 12 10 Participants’ contributions 29 — — — Benefits paid (4,050)  (3,893)  (12)  (10) Fair value of plan assets at end of year  68,515  65,082  —  —  Funded status at end of year  $ (30,852)  $ (22,813)  $ (63)  $ (65) Pension Benefits Other Benefits  2012 2011 2012 2011 Current liabilities: Accrued benefit liability $ (322) $ (330) $ (3) $ (3) Other non-current liabilities:  Accrued benefit liability (30,530) (22,484) (60) (62) Accumulated other comprehensive (income) loss 33,545  30,747  (305)  (340) Net amount recognized $ 2,693  $ 7,933  $ (368)  $ (405) Pension Benefits Other Benefits  2012 2011 2012 2011 Discount rate: net periodic pension cost 4.75% 5.50% — — Discount rate: projected benefit obligation 4.00% 4.75% 4.00% 4.75% Expected rate of return on plan assets  7.20%  8.00%  —  —  Rate of compensation increase 4.00% 4.00% — — The benefit obligation and prepaid benefit costs were calculated by applying the following weighted average assumptions: