The following table provides information for pension plans with projected benefit obligations and accumulated benefit obligations in  excess of plan assets: The net periodic costs are as follows: Pension Benefits  June 30,  2012 2011  Projected benefit obligations  $  47,151 $  53,490 $_{ }$ Accumulated benefit obligations  47,151 43,528 $_{ }$ Fair value of plan assets  6,439 6,056 $_{ }$ Pension Benefits  Retiree Health Care Benefits  Year Ended June 30,  2012-- 2011-- 2010-- 2012-- 2011-- 2010--  Service cost  $  289  $  460  $_{ }$ $  574  $_{ }$  $  30  $  39  $_{ }$ $  52  Interest cost  2,047  2,232  $_{ }$  2,911  237  235  $_{ }$  259  Expected return on plan assets  (396) (385) (351) — — — Recognized net actuarial loss (gain)  644  1,449  $_{ }$  924  $_{ }$  (72) (83) (87)  Amortization of prior service cost  412  710  $_{ }$  797  139  139  $_{ }$  148  Recognition of prior service cost upon plan curtailment  3,117  — $_{ }$  — $_{ }$  — — $_{ }$  — Net periodic cost  $  6,113  $  4,466  $_{ }$ $  4,855  $_{ }$  $  334  $  330  $_{ }$ $  372  The estimated net actuarial loss and prior service cost for the pension plans that will be amortized from accumulated other  comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $735 and $83, respectively. The estimated  net actuarial gain and prior service cost for the retiree health care benefits that will be amortized from accumulated other  comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $(53) and $107, respectively.  The discount rate is used to determine the present value of future payments. In general, the Company’s liability increases as the  discount rate decreases and decreases as the discount rate increases. The Company computes a weighted-average discount rate  taking into account anticipated plan payments and the associated interest rates from the Citigroup Pension Discount Yield Curve.  The weighted-average actuarial assumptions used to determine benefit obligations and net periodic benefit cost for the plans were  as follows: Assumptions  Pension Benefits  Retiree Health Care Benefits  June 30,  2012  2011  2012  2011  Assumptions used to determine benefit obligations at year end:  Discount rate  2.8%  4.5%  4.0%  5.5%  Rate of compensation increase  N/A  5.5%  N/A  N/A  Assumptions used to determine net periodic benefit cost:  Discount rate  3.5%  4.3%  5.5%  5.5%  Expected return on plan assets  7.5%  7.5%  N/A  N/A  Rate of compensation increase  5.5%  5.5%  N/A  N/A  One-Percentage Point  Increase  Decrease  Effect on total service and interest cost components of periodic expense  $  48 $  (39)  Effect on postretirement benefit obligation  854 (701)  Due to freezing participant benefits in the SERP plan, the rate of compensation increase is no longer applicable. The assumed health  care cost trend rates used in measuring the accumulated benefit obligation for retiree health care benefits were 7.5% and 8% as of  June 30, 2012 and 2011, respectively, decreasing to 5% by 2018. A one-percentage point change in the assumed health care cost trend rates would have had the following effects as of June 30,  2012 and for the year then ended: 33 Applied Industrial Technologies, Inc. and Subsidiaries