<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 11pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <font style="FONT-SIZE: 10pt"><strong><em>9. Accumulated Other Comprehensive Income</em></strong></font></p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The Company adopted the provisions of Accounting Standards Update 2013-02 in the first quarter of 2013, which requires enhanced disclosures of Accumulated Other Comprehensive Income.</p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The table below presents changes in the components of Accumulated Other Comprehensive Income for the period December 31, 2012 to June 30, 2013:</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> (in thousands)</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">Translation adjustments</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">Pension and postretirement liability adjustments</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">Derivative valuation adjustment</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">Total Other Comprehensive Income</td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 40%"> Balance, December 31, 2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> ($7,659</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> ($69,484</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> ($2,878</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> ($80,021</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> </tr> <tr> <td> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left">Other comprehensive income before reclassifications</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> (14,494</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 1,225</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 2,301</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> (10,968</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left">Interest expense related to swaps reclassified to the Statement of Operations, net of tax</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> (549</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> (549</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Pension and postretirement liability adjustments reclassified to Statement of Operations, net of tax</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,004</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,004</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Net current period other comprehensive income</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (14,494</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 2,229</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,752</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (10,513</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> Balance, June 30, 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($22,153</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($67,255</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($1,126</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($90,534</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> </table> <p style="FONT: 11pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 6pt 0.5in"> </p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The components of our Accumulated Other Comprehensive Income that are reclassified to the Statement of Operations relate to our pension and postretirement plans and interest rate swaps. The table below presents the amounts reclassified, and the line items of the Statement of Operations that were affected.</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left" nowrap="nowrap">(in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Three months ended<br /> June 30, 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Six months ended<br /> June 30, 2013</td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:</td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 56%"> Swap interest expense</td> <td style="COLOR: black; WIDTH: 8%"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right; WIDTH: 13%"> ($500</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="COLOR: black; WIDTH: 8%"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right; WIDTH: 13%"> ($900</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Income tax effect</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (195</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (351</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Effect on net income due to items reclassified from Accumulated Other Comprehensive Income</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($305</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($549</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:</td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left"> Amortization of prior service cost/(credit)</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> ($908</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> ($1,817</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left"> Amortization of transition obligation</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 17</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 34</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Amortization of net actuarial loss</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,664</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 3,328</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left">Total pretax amount reclassified</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 773</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 1,545</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Income tax effect</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (270</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (541</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Effect on net income due to items reclassified from Accumulated Other Comprehensive Income</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $503</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $1,004</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
377000
998000
533000
1209000
30.59
28.53
20.22
22.08
2013-09-10
3.50
3.00
2026
2018
50000000
50000000
125549000
123886000
12400000
-2728000
3310000
-30325000
-33564000
7795000
13552000
13000000
0.39
0.39
0.265
0.265
169000
120000
125000
69000
8.57
1.75
125000000
36585
9787
8600000
200000
1
1
0.882
0.118
36
4100000
-1894000
-1903000
3133000
-699000
-7864000
-3991000
-58125000
-125244000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="MARGIN-BOTTOM: 10pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"> The table below presents pension settlement and restructuring costs by reportable segment (also see Note 5):</p> <table style="BORDER-COLLAPSE: collapse; MARGIN-LEFT: 0.5in; WIDTH: 90%" cellspacing="0" cellpadding="0"> <tr> <td style="FONT-SIZE: 10pt"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="3">Three months ended<br /> June 30,</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="4">Six months ended<br /> June 30,</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> </tr> <tr> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Pension settlement</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $0</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $110,560</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $0</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $119,735</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> </tr> <tr> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Restructuring expense</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> </tr> <tr> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Machine Clothing</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,230</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $2,903</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,423</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,576</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Engineered Composites</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 91</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 534</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 12%"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 12%"> 249</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 12%"> <strong>-</strong></td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> (166</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Consolidated total</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,321</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,152</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,957</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,410</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> </table> <!--EndFragment--></div> </div>
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--12-31
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ALBANY INTERNATIONAL CORP /DE/
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in"> <strong>17. Recent Accounting Pronouncements</strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in"> <strong> </strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> In February 2013, the Financial Accounting Standards Board (FASB) issued ASU 2013-02 which requires enhanced disclosures about changes in Accumulated Other Comprehensive Income. We adopted these provisions in the first quarter of 2013 by adding a Note to the Consolidated Financial Statements that provides the additional disclosures.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> In the first quarter of 2013, the Company adopted the provisions of ASU 2013-01 which requires enhanced disclosures of the effect or potential effect of netting arrangements on an entity's financial position. This includes the effect or potential effect of rights of setoff associated with an entity's recognized assets and recognized liabilities within the scope of this Update. The Company has an interest rate swap agreement that is within the scope of Update and we have added additional disclosure in the Notes to Consolidated Financial Statements about the offsetting asset and liability components of that agreement.</p> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 0px"> <strong><em>2. Discontinued Operations</em></strong></p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> In October 2011 we entered into a contract to sell the assets and liabilities of our Albany Door Systems (ADS) business to Assa Abloy AB for $130 million. Closing on the transaction occurred on January 11, 2012. Under the terms of the contract, Assa Abloy AB acquired our equity ownership of Albany Doors Systems GmbH in Germany, Albany Door Systems AB in Sweden, and other ADS affiliates in Germany, France, the Netherlands, Turkey, Poland, Belgium, New Zealand, and other countries, as well as the remaining ADS business assets, most of which were located in the United States, Australia, China, and Italy. <font style="COLOR: black">In January 2012, the Company completed the sale of Albany Door Systems,</font> and in March 2012, we finalized certain post-closing adjustments that increased the sale price by $5 million. <font style="COLOR: black">As of December 31, 2012, $122 million of the total $135 million sale price had been received, with the remainder received in July 2013.</font></p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> In May 2012, we announced an agreement to sell our PrimaLoft<sup>®</sup> Products business and that transaction closed on June 29, 2012. Under the terms of the agreement, the purchaser acquired all of the assets of that business, which were located in the United States, Italy and Germany. The purchase price of $38.0 million included $3.8 million held in an escrow account which is included in Accounts receivable and is expected to be received in December 2013. The Company recorded a pre-tax gain in the second quarter of 2012 of $34.9 million as result of that sale. The Company recorded an accrual of $0.6 million for pre-closing liabilities that arose during the second quarter of 2013.</p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> We have provided customary representations and warranties in the sale of both of these businesses but we do not expect any material negative financial consequence will result from these arrangements. In accordance with the applicable accounting guidance for discontinued businesses, the associated results of operations and financial position are reported separately in the accompanying Consolidated Statements of Operations and Balance Sheets. Cash flows of the discontinued operation were combined with cash flows from continuing operations in the Consolidated Statements of Cash Flows.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in"> </p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The table below summarizes operating results of the discontinued operations:</p> <table style="FONT-FAMILY: Arial, Helvetica, Sans-Serif; BORDER-COLLAPSE: collapse; MARGIN-LEFT: 0.5in; WIDTH: 90%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 36%"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 16%"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 16%"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 16%"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 16%"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">Three months ended</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">Three months ended</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">Six months ended</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">Six months ended</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <strong>(in thousands)</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2012</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2012</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Net sales</td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $0</strong></font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> $ 10,283</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $0</strong></font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> $ 19,774</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> (Loss)/Income from operations of discontinued business before tax</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong> (575)</strong></td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2,760</font> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong> (575)</strong></td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 4,776</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Gain on disposition of discontinued operations</td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> -</strong></font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 34,709</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> -</strong></font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 92,677</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Income tax (benefit)/expense</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong> (224)</strong></td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 13,439</font> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong> (224)</strong></td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 26,253</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> </table> <p style="FONT: 11pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0.5in; TEXT-INDENT: 0.5in"> </p> <!--EndFragment--></div> </div>
9171000
9171000
28400000
-0.23
0.13
-1.08
0.42
-0.23
0.13
-1.08
0.42
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong><em>8. Earnings Per Share</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> Earnings per share are computed using the weighted average number of shares of Class A Common Stock and Class B Common Stock outstanding during the period. Diluted earnings per share include the effect of all potentially dilutive securities.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center" colspan="5">Three months ended<br /> June 30,</td> <td> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center" colspan="5">Six months ended <br /> June 30,</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> <strong>(in thousands, except market price data)</strong></td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> </tr> <tr> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Net income/(loss) available to common shareholders</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right; WIDTH: 11%"> ($7,379</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%"> ($33,745</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="FONT-WEIGHT: bold; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right; WIDTH: 11%"> $4,132</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%"> $13,296</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; PADDING-LEFT: 5.4pt">Weighted average number of shares:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> Weighted average number of shares used in</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt" nowrap="nowrap"> calculating basic net income/(loss) per share</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">31,628</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">31,349</td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">31,562</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">31,329</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Effect of dilutive stock-based compensation plans:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Stock options</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">-</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">125</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">69</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Long-term incentive plan</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> 169</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 120</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt">Weighted average number of shares used in</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> calculating diluted net income/(loss) per share</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> 31,628</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 31,349</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> 31,856</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 31,518</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt">Average market price of common stock used</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt">for calculation of dilutive shares</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $30.59</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $20.22</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $28.53</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $22.08</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; PADDING-LEFT: 5.4pt">Net income per share:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> Basic</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">($0.23</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: right">($1.08</td> <td style="TEXT-ALIGN: left">)</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">$0.13</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">$0.42</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> Diluted</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> ($0.23</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> ($1.08</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $0.13</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $0.42</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> As a result of a net loss in the second quarter of 2013 and 2012, the potential dilutive effect of stock-based compensation plans was not included in the computation of diluted earnings per share for these periods because to do so would have been antidilutive.</p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The following table presents the number of shares issued and outstanding:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 31%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; WIDTH: 15%"> Class A</td> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 3%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; WIDTH: 15%"> Class B</td> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 3%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; WIDTH: 15%"> Less: Treasury</td> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 3%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; WIDTH: 15%"> Net shares</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> Shares</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> Shares</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> Shares</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> Outstanding</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> June 30, 2013</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">36,875,127</font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">3,236,098</font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> (8,463,635)</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">31,647,590</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> March 31, 2013</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">36,827,227</font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">3,236,098</font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> (8,467,873)</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">31,595,452</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> June 30, 2012</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">36,589,304</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">3,236,098</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> (8,467,873)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">31,357,529</font> </td> </tr> </table> <!--EndFragment--></div> </div>
1278000
-2193000
-6976000
1593000
10000000
172000
524000
8000
11000
172000
524000
8000
11000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt"> <strong><em>14. Fair-Value Measurements</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting principles establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three general levels: Level 1 inputs are quoted prices in active markets for identical assets or liabilities; Level 2 inputs include data points that are observable, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) such as interest rates and yield curves that are observable for the asset and liability, either directly or indirectly; Level 3 inputs are unobservable data points for the asset or liability, and include situations in which there is little, if any, market activity for the asset or liability.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> The following table presents the fair-value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis:</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 0px 0.5in; TEXT-INDENT: 0.5in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0.5in; WIDTH: 90%" cellspacing="0" cellpadding="0"> <tr> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: center"> </td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center"> </td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">Total fair value</td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center"> </td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">Quoted prices in active markets</td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center"> </td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">Significant other observable inputs</td> </tr> <tr> <td style="BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black"> (in thousands)</td> <td style="FONT-SIZE: 8pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 8pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: center" colspan="3"> </td> <td style="FONT-SIZE: 9pt; BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-SIZE: 9pt; BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">(Level 1)</td> <td style="FONT-SIZE: 9pt; BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-SIZE: 9pt; BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">(Level 2)</td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black; PADDING-LEFT: 1.5pt"> Fair Value at June 30, 2013</td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; PADDING-LEFT: 1.5pt"> Assets:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt; WIDTH: 46%"> Cash equivalents</td> <td style="COLOR: black; WIDTH: 5%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">30,586</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 5%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">30,586</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 5%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">-</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Other assets:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Common stock of foreign public company</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">848</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">848</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Interest rate swap</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">1,852</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">1,852</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; PADDING-LEFT: 1.5pt"> Liabilities:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Other noncurrent liabilities:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Interest rate swap</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(3,699</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(3,699</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black; PADDING-LEFT: 1.5pt"> Fair Value at December 31, 2012</td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; PADDING-LEFT: 1.5pt"> Assets:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Cash equivalents</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">33,171</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">33,171</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Other assets:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Common stock of foreign public company</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">562</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">562</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Interest rate swap</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; PADDING-LEFT: 1.5pt"> Liabilities:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Other noncurrent liabilities:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Interest rate swap</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(4,718</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(4,718</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 0px 0.5in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> During the six-months ended June 30, 2013, there were no transfers between levels 1, 2, and 3.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Cash equivalents include short-term securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> The common stock of a foreign public company is traded in an active market exchange. The shares are measured at fair value using closing stock prices and are recorded in the Consolidated Balance Sheets as Other assets. The securities are classified as available for sale, and as a result any gain or loss is recorded in the Shareholders' Equity section of the Consolidated Balance Sheets rather than in the Consolidated Statements of Operations. When the security is sold or impaired, gains and losses are reported on the Consolidated Statements of Operations. Investments are considered to be impaired when a decline in fair value is judged to be other than temporary.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Foreign currency instruments are entered into periodically, and consist of foreign currency option contracts and forward contracts that are valued using quoted prices in active markets obtained from independent pricing sources. These instruments are measured using market foreign exchange prices and are recorded in the Consolidated Balance Sheets as Other current assets and Accounts payable, as applicable. Changes in fair value of these instruments are recorded as gains or losses within Other (income)/expense. There were no gains/(losses) for the six months ended June 30, 2013, and there were no open contracts at that date. Gains for the six months ended June 30, 2012 were $0.1 million.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 0px 0in; TEXT-INDENT: 0.5in"> When exercised, the foreign currency instruments are net settled with the same financial institution that bought or sold them. For all positions, whether options or forward contracts, there is risk from the possible inability of the financial institution to meet the terms of the contracts and the risk of unfavorable changes in interest and currency rates, which may reduce the value of the instruments. We seek to control risk by evaluating the creditworthiness of counterparties and by monitoring the currency exchange and interest rate markets while reviewing the hedging risks and contracts to ensure compliance with our internal guidelines and policies.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 0px 0in; TEXT-INDENT: 0.5in"> We operate our business in many regions of the world, and currency rate movements can have a significant effect on operating results.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 0px 0in; TEXT-INDENT: 0.5in"> Changes in exchange rates can result in revaluation gains and losses that are recorded in Selling, General and Administrative expenses or Other income/expense, net. Revaluation gains and losses occur when our business units have intercompany (recorded in Other income/expense) or third-party trade receivable or payable balances (recorded in Selling, General and Administrative expenses) in a currency other than their local reporting (or functional) currency.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 0px 0in; TEXT-INDENT: 0.5in"> Operating results can also be affected by the translation of sales and costs, for each non-U.S. subsidiary, from the local functional currency to the U.S. dollar. The translation effect on the income statement is dependent on our net income or expense position in each non-U.S. currency in which we do business. A net income position exists when sales realized in a particular currency exceed expenses paid in that currency; a net expense position exists if the opposite is true.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 0px 0in; TEXT-INDENT: 0.5in"> The interest rate swaps are accounted for as hedges of future cash flows. The fair value of our interest rate swaps are derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve, and is included in Other assets and Other noncurrent liabilities in the Consolidated Balance Sheet. As of June 30, 2013, we reported an asset of $1.9 million, which is comprised of a liability of $4.1 million for the floating rate leg and a receivable of $5.9 million for the fixed rate leg, and a liability of $3.7 million, which is comprised of a liability of $4.9 million for the fixed rate leg, and a receivable of $1.2 million for the floating rate leg. Unrealized gains and losses on the swaps will flow through the caption Derivative valuation adjustment in the Shareholders' equity section of the Consolidated Balance Sheets, to the extent that the hedges are highly effective. Gains and losses related to the ineffective portion of the hedges will be recognized in the current period in earnings. Amounts accumulated in Other comprehensive income are reclassified as Interest expense, net when the related interest payments (that is, the hedged forecasted transactions) affect earnings. Interest expense related to the swaps totaled $0.9 million and $0.8 million for the six months ended June 30, 2013 and 2012, respectively.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> Gains/ (losses) related to changes in fair value of derivative instruments that were recognized in Other expense/(income), net in the Statement of Operations were as follows:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="BORDER-TOP: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center" colspan="2">Three months ended<br /> June 30,</td> <td style="BORDER-TOP: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center" colspan="2">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; WIDTH: 56%" nowrap="nowrap">(in thousands)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center; WIDTH: 10%" nowrap="nowrap"><strong>2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center; WIDTH: 12%" nowrap="nowrap">2012</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center; WIDTH: 10%" nowrap="nowrap"><strong>2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center; WIDTH: 12%" nowrap="nowrap">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt"> Derivatives not designated as hedging instruments</td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> Forward exchange options</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> - </strong></font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> 119</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> - </strong></font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> 118</font> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> The following table presents the fair-value hierarchy for our financial assets and liabilities measured at fair value on a recurring basis:</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 0px 0.5in; TEXT-INDENT: 0.5in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0.5in; WIDTH: 90%" cellspacing="0" cellpadding="0"> <tr> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: center"> </td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center"> </td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">Total fair value</td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center"> </td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">Quoted prices in active markets</td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center"> </td> <td style="FONT-SIZE: 8pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">Significant other observable inputs</td> </tr> <tr> <td style="BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black"> (in thousands)</td> <td style="FONT-SIZE: 8pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 8pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: center" colspan="3"> </td> <td style="FONT-SIZE: 9pt; BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-SIZE: 9pt; BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">(Level 1)</td> <td style="FONT-SIZE: 9pt; BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-SIZE: 9pt; BORDER-BOTTOM: black 2pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">(Level 2)</td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black; PADDING-LEFT: 1.5pt"> Fair Value at June 30, 2013</td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; PADDING-LEFT: 1.5pt"> Assets:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt; WIDTH: 46%"> Cash equivalents</td> <td style="COLOR: black; WIDTH: 5%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">30,586</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 5%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">30,586</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 5%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">$</td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">-</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Other assets:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Common stock of foreign public company</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">848</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">848</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Interest rate swap</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">1,852</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">1,852</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; PADDING-LEFT: 1.5pt"> Liabilities:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Other noncurrent liabilities:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Interest rate swap</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(3,699</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(3,699</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black; PADDING-LEFT: 1.5pt"> Fair Value at December 31, 2012</td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 9pt; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; PADDING-LEFT: 1.5pt"> Assets:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Cash equivalents</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">33,171</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">33,171</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left">$</td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Other assets:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Common stock of foreign public company</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">562</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">562</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Interest rate swap</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; PADDING-LEFT: 1.5pt"> Liabilities:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; FONT-STYLE: italic; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Other noncurrent liabilities:</td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Interest rate swap</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(4,718</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(4,718</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 2pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
231000
29000
29000
231000
231000
36000
38000
505000
606000
192000
204000
733000
848000
3763000
34709000
92677000
75688000
76522000
75700000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong><em>12. Goodwill and Other Intangible Assets</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Goodwill and intangible assets with indefinite useful lives are not amortized, but are tested for impairment at least annually. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in each business combination. Our reporting units are consistent with our operating segments.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Determining the fair value of a reporting unit requires the use of significant estimates and assumptions, including revenue growth rates, operating margins, discount rates, and future market conditions, among others. Goodwill and other long-lived assets are reviewed for impairment whenever events, such as significant changes in the business climate, plant closures, changes in product offerings, or other circumstances indicate that the carrying amount may not be recoverable.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> To determine fair value, we utilize two market-based approaches and an income approach. Under the market-based approaches, we utilize information regarding the Company as well as publicly available industry information to determine earnings multiples and sales multiples. Under the income approach, we determine fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> The entire balance of goodwill is attributable to the Machine Clothing business. In the second quarter of 2013 the Company applied the quantitative assessment approach in performing its annual evaluation of goodwill and concluded that no impairment provision was required. In addition, there were no amounts at risk due to the large spread between the fair and carrying values.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> We are continuing to amortize certain patents, trade names, customer contracts and technology assets that have finite lives. The changes in intangible assets and goodwill from December 31, 2012 to June 30, 2013, were as follows:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2">Balance at</td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2">Currency</td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2">Balance at</td> </tr> <tr> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left" nowrap="nowrap">(in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black" nowrap="nowrap"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2" nowrap="nowrap">December 31, 2012</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" nowrap="nowrap"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2" nowrap="nowrap"><strong>Amortization</strong></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" nowrap="nowrap"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2" nowrap="nowrap">Translation</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" nowrap="nowrap"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2" nowrap="nowrap">June 30, 2013</td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Amortized intangible assets:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt; WIDTH: 40%"> AEC trade names</td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">$38</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">($2</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> $ -</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> $36</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> AEC customer contracts</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">606</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(101</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 505</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> AEC technology</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 204</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (12</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 192</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Total amortized intangible assets</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $848</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($115</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $ -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $733</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Unamortized intangible assets:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; PADDING-LEFT: 1.5pt"> Goodwill</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $76,522</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $ -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($834</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $75,688</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> As of June 30, 2013, the balance of goodwill was $75.7 million and was completely attributable to our Machine Clothing reportable segment.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> Estimated amortization expense of intangibles for the years ending December 31, 2013 through 2017, is as follows:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 40%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 43%"> </td> <td style="FONT-SIZE: 8pt; BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 8%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right; WIDTH: 49%"> <strong>Annual amortization</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>Year</strong></td> <td style="FONT-SIZE: 8pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong>(in thousands)</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2013</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$231</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2014</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 231</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2015</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 231</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2016</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 29</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2017</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 29</font> </td> </tr> </table> <!--EndFragment--></div> </div>
-834000
77433000
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78500000
146786000
21000
65000
677000
200000
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4483000
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-0.22
0.14
-1.84
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0.14
-1.84
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24030000
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0.76
2.27
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0.76
2.26
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong><em>7. Income Taxes</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The following table presents components of income tax expense/(benefit) for the three and six month periods ended June 30, 2013 and 2012:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-TOP: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-TOP: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-TOP: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-TOP: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: right"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="5">Three months ended<br /> June 30,</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="5">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt; WIDTH: 40%"> Income tax based on income from continuing operations, at estimated tax rates of 39.0% and 26.5%, respectively</td> <td style="FONT-WEIGHT: bold; COLOR: black; WIDTH: 1%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 10%"> ($3,616</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 10%">$6,133</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 10%"> $3,310</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 10%">$5,896</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Pension plan settlement</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(37,047</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(39,460</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt">Tax rate adjustment on pension plan settlement</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">886</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Provision for change in estimated tax rates</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 888</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (297</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Income tax before discrete items</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> (2,728</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(30,325</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 3,310</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(33,564</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Discrete tax expense/(benefit):</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Provision for/resolution of tax audits and<br /> contingencies, net</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 425</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">682</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 425</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(6,051</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Repatriation of non-U.S. prior year earnings</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 186</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 186</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Adjustments to prior period tax liabilities</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> (126</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 84</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Total income tax expense/(benefit)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($2,243</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($29,643</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $4,005</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($39,615</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The second quarter estimated effective tax rate on continuing operations was 39.0 percent in 2013 compared to 26.5 percent for the same period in 2012. The change in the estimated effective tax rate was primarily attributable to changes in the anticipated amount and distribution of income and loss among the countries in which we operate. The 2012 second quarter tax rate was also impacted by operating losses generated in tax jurisdictions where no tax benefit was recognized.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The Company records the residual U.S. and foreign taxes on certain amounts of current foreign earnings that have been targeted for repatriation to the U.S. As a result, such amounts are not considered to be permanently reinvested, and the Company accrued for the residual taxes on these earnings to the extent they cannot be repatriated in a tax-free manner. At June 30, 2013, the Company recorded a deferred tax liability of $0.9 million on $12.4 million of non-U.S. earnings that have been targeted for future repatriation to the U.S.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> We conduct business globally and, as a result, the Company or one or more of our subsidiaries files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business we are subject to examination by taxing authorities throughout the world, including major jurisdictions as the United States, Brazil, Canada, France, Germany, Italy, Mexico, and Switzerland. Open tax years in these jurisdictions range from 2000 to 2012. We are currently under audit in the U.S. and non-U.S. tax jurisdictions, including but not limited to Canada, Germany, and France.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> It is reasonably possible that over the next twelve months the amount of unrecognized tax benefits may change within a range of a net increase of $0 million to a net decrease of $2.5 million, from the reevaluation of uncertain tax positions arising in examinations, in appeals, or in the courts, or from the closure of tax statutes. Not included in the range is $22.7 million of tax benefits in Germany related to a 1999 reorganization that have been challenged by the German tax authorities in the course of an audit, of which $11.6 million would have a direct impact on our statement of income if resolved unfavorably. In 2008 the German Federal Tax Court (FTC) denied tax benefits to other taxpayers in a case involving German tax laws relevant to our reorganization. One of these cases involved a non-German party, and in the ruling in that case, the FTC acknowledged that the German law in question may be violative of European Union (EU) principles and referred the issue to the European Court of Justice (ECJ) for its determination on this issue. In September 2009, the ECJ issued an opinion in this case that is generally favorable to the other taxpayer and referred the case back to the FTC for further consideration. In May 2010 the FTC released its decision, in which it resolved certain tax issues that may be relevant to our audit and remanded the case to a lower court for further development. In 2012, the lower court decided in favor of the taxpayer and the government appealed the findings to the FTC. Although we were required to pay tax and interest of approximately $13.0 million to the German tax authorities in order to continue to pursue the position, when taking into consideration the ECJ decision, the latest FTC decision and the lower court decision, we believe that it is more likely than not that the relevant German law is violative of EU principles and, accordingly, we have not accrued tax expense on this matter. As we continue to monitor developments, it may become necessary for us to accrue tax expense and related interest.</p> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong><em>11. Inventories</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The components of Inventories are summarized below:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 64%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 18%"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </font> </td> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 18%"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> <strong>(in thousands)</strong> </font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> December 31, 2012</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Finished goods</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $48,698</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$49,235</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Work in process</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> 42,871</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 44,866</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Raw material and supplies</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> 25,874</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 25,082</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Total inventories</td> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $117,443</strong></font> </td> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$119,183</font> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Inventories are stated at the lower of cost or market and are valued at average cost, net of reserves. We record a provision for obsolete inventory based on the age and category of the inventories.</p> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong><em>15. Contingencies</em></strong></p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 0px"> <strong>Asbestos Litigation</strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> Albany International Corp. is a defendant in suits brought in various courts in the United States by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing products that we previously manufactured. We produced asbestos-containing paper machine clothing synthetic dryer fabrics marketed during the period from 1967 to 1976 and used in certain paper mills. Such fabrics generally had a useful life of three to twelve months.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> We were defending 4,295 claims as of July 19, 2013.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; WIDTH: 16%" nowrap="nowrap"><em>Year ended<br /> December 31,</em></td> <td style="BORDER-TOP: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; WIDTH: 16%" nowrap="nowrap"> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em>Opening Number of Claims</em></p> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em> </em></p> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in; WIDTH: 18%" nowrap="nowrap"><em>Claims Dismissed,<br /> Settled, or<br /> Resolved</em></td> <td style="BORDER-TOP: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; WIDTH: 14%" nowrap="nowrap"> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em> </em></p> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em>New Claims</em></p> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in; WIDTH: 13%" nowrap="nowrap"><em>Closing<br /> Number<br /> of<br /> Claims</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 0.05in; TEXT-ALIGN: right; TEXT-INDENT: -0.25in; WIDTH: 23%" nowrap="nowrap"><em>Amounts Paid<br /> (thousands) to<br /> Settle or<br /> Resolve</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2005</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>29,411</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>6,257</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>1,297</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>24,451</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em> $ 504</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2006</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>24,451</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>6,841</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>1,806</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>19,416</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>3,879</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2007</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>19,416</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>808</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em> 190</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>18,798</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>15</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2008</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>18,798</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>523</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>110</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>18,385</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>52</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2009</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>18,385</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,482</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>42</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,945</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>88</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2010</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,945</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>3,963</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>188</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>5,170</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>159</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2011</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>5,170</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>789</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>65</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>4,446</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>1,111</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2012</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>4,446</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>90</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>107</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>4,463</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>530</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><strong><em>2013 as of July 19</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>4,463</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>215</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>47</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>4,295</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>$ 3</em></strong></td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> We anticipate that additional claims will be filed against the Company and related companies in the future, but are unable to predict the number and timing of such future claims.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> Exposure and disease information sufficient to meaningfully estimate a range of possible loss of a particular claim is typically not available until late in the discovery process, and often not until a trial date is imminent and a settlement demand has been received. For these reasons, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to pending or future claims.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> While we believe we have meritorious defenses to these claims, we have settled certain claims for amounts we consider reasonable given the facts and circumstances of each case. Our insurer, Liberty Mutual, has defended each case and funded settlements under a standard reservation of rights. As of July 19, 2013, we had resolved, by means of settlement or dismissal, 36,585 claims. The total cost of resolving all claims was $8.6 million. Of this amount, almost 100% was paid by our insurance carrier. The Company has over $125 million in confirmed insurance coverage that should be available with respect to current and future asbestos claims, as well as additional insurance coverage that we should be able to access.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> Brandon Drying Fabrics, Inc. ("Brandon"), a subsidiary of Geschmay Corp., which is a subsidiary of the Company, is also a separate defendant in many of the asbestos cases in which Albany is named as a defendant. Brandon was defending against 7,815 claims as of July 19, 2013.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right" nowrap="nowrap"><em>Year ended<br /> December<br /> 31,</em></td> <td style="BORDER-TOP: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em>Opening Number<br /> of Claims</em></p> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em> </em></p> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>Claims Dismissed,<br /> Settled, or<br /> Resolved</em></td> <td style="BORDER-TOP: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em> </em></p> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em>New Claims</em></p> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>Closing<br /> Number of<br /> Claims</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 0.05in; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>Amounts Paid<br /> (thousands) to<br /> Settle or<br /> Resolve</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2005</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,985</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>642</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>223</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,566</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>$ 0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2006</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,566</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>1,182</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>730</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,114</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2007</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,114</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>462</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>88</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,740</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2008</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,740</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>86</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>10</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,664</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2009</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,664</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>760</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>3</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,907</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2010</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,907</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>47</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,869</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2011</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,869</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>3</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>11</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,877</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2012</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,877</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>12</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>2</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,867</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><strong><em>2013 as of July 19</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>7,867</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>54</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>2</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>7,815</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>$ 0</em></strong></td> </tr> </table> <p style="FONT: 11pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> We acquired Geschmay Corp., formerly known as Wangner Systems Corporation, in 1999. Brandon is a wholly owned subsidiary of Geschmay Corp. In 1978, Brandon acquired certain assets from Abney Mills ("Abney"), a South Carolina textile manufacturer. Among the assets acquired by Brandon from Abney were assets of Abney's wholly owned subsidiary, Brandon Sales, Inc. which had sold, among other things, dryer fabrics containing asbestos made by its parent, Abney. Although Brandon manufactured and sold dryer fabrics under its own name subsequent to the asset purchase, none of such fabrics contained asbestos. Because Brandon did not manufacture asbestos-containing products, and because it does not believe that it was the legal successor to, or otherwise responsible for obligations of Abney with respect to products manufactured by Abney, it believes it has strong defenses to the claims that have been asserted against it. As of July 19, 2013, Brandon has resolved, by means of settlement or dismissal, 9,787 claims for a total of $0.2 million. Brandon's insurance carriers initially agreed to pay 88.2% of the total indemnification and defense costs related to these proceedings, subject to the standard reservation of rights. The remaining 11.8% of the costs had been borne directly by Brandon. During 2004, Brandon's insurance carriers agreed to cover 100% of indemnification and defense costs, subject to policy limits and the standard reservation of rights, and to reimburse Brandon for all indemnity and defense costs paid directly by Brandon related to these proceedings.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> For the same reasons set forth above with respect to Albany's claims, as well as the fact that no amounts have been paid to resolve any Brandon claims since 2001, we do not believe a meaningful estimate can be made regarding the range of possible loss with respect to these remaining claims.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> In some of these asbestos cases, the Company is named both as a direct defendant and as the "successor in interest" to Mount Vernon Mills ("Mount Vernon"). We acquired certain assets from Mount Vernon in 1993. Certain plaintiffs allege injury caused by asbestos-containing products alleged to have been sold by Mount Vernon many years prior to this acquisition. Mount Vernon is contractually obligated to indemnify the Company against any liability arising out of such products. We deny any liability for products sold by Mount Vernon prior to the acquisition of the Mount Vernon assets. Pursuant to its contractual indemnification obligations, Mount Vernon has assumed the defense of these claims. On this basis, we have successfully moved for dismissal in a number of actions.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> Although we do not believe, based on currently available information and for the reasons stated above, that a meaningful estimate of a range of possible loss can be made with respect to such claims, based on our understanding of the insurance policies available, how settlement amounts have been allocated to various policies, our settlement experience, the absence of any judgments against the Company or Brandon, the ratio of paper mill claims to total claims filed, and the defenses available, we currently do not anticipate any material liability relating to the resolution of the aforementioned pending proceedings in excess of existing insurance limits. Consequently, we currently do not anticipate, based on currently available information, that the ultimate resolution of the aforementioned proceedings will have a material adverse effect on the financial position, results of operations, or cash flows of the Company. Although we cannot predict the number and timing of future claims, based on the foregoing factors and the trends in claims against us to date, we do not anticipate that additional claims likely to be filed against us in the future will have a material adverse effect on our financial position, results of operations, or cash flows. We are aware that litigation is inherently uncertain, especially when the outcome is dependent primarily on determinations of factual matters to be made by juries.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong>NAFTA Audits</strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The Company's affiliate in Mexico was notified in November 2010 that Mexican customs authorities expected to issue demands for duties on certain imports of paper machine clothing (PMC) from the Company and the Company's affiliate in Canada for which the Company has claimed duty-free treatment under the North American Free Trade Agreement ("NAFTA"). </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The notices result from a decision by the Mexican Servicio de Administración Tributaria ("SAT") to invalidate NAFTA certificates provided by the Company on products shipped to its Mexican affiliate during the years 2006 through 2008. The Demand Notices arose from an SAT audit during 2010, at the conclusion of which the SAT determined that the Company had failed to provide documentation sufficient to show that the certificates were validly issued, and declared the certificates issued during this period to be invalid. The Company believed that the certificates of origin were valid and properly issued and therefore commenced administrative appeals with SAT disputing its resolutions. </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> As a result of the aforementioned appeals, SAT ultimately revoked its earlier declarations of invalidation with respect to the certificates of origin at issue in all 36 open audit files, and ordered a further review of such certificates. The Company has now been informed that review of all 36 audit files has been completed, and that only a small number of shipments were ineligible for duty-free NAFTA treatment, primarily due to some alternative raw material that was sourced from Europe during a brief period when sufficient U.S.-sourced material was temporarily unavailable. As a result, the Company could be liable for an immaterial amount of tariff charges and penalties with respect to the shipments determined to be ineligible. The Company does not believe that it faces any material risk of certificates being invalidated with respect to any period other than the 2006 through 2008 audit period. For this reason, the Company does not feel that this matter is likely to have a material adverse effect on the Company's financial position, results of operations and cash flows.</p> <!--EndFragment--></div> </div>
677667000
663186000
1157944000
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227720000
235788000
164000000
351000
770000
330000000
390000000
166000000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong><em>10. Accounts Receivable</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> Accounts receivable includes trade receivables and revenue in excess of progress billings on Engineered Composites contracts accounted for under the percentage of completion method. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company determines the allowance based on historical write-off experience, customer specific facts and economic conditions. If the financial condition of the Company's customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The components of Accounts receivable are summarized below:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; WIDTH: 63%"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; WIDTH: 18%"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; WIDTH: 19%"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; PADDING-TOP: 12pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> <strong>(in thousands)</strong> </font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; PADDING-TOP: 12pt; TEXT-ALIGN: center"> <strong>June 30, 2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; PADDING-TOP: 12pt; TEXT-ALIGN: center"> December 31, 2012</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Trade accounts receivable</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $154,279</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$149,737</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Revenue in excess of progress billings</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> 15,688</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">17,105</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Receivables related to the sale of discontinued businesses</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> 16,795</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">16,555</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Less: allowance for doubtful accounts</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; TEXT-ALIGN: right"> <strong> (11,881)</strong></td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; TEXT-ALIGN: right"> (11,862)</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Total Accounts receivable, net</td> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $174,881</strong></font> </td> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$171,535</font> </td> </tr> </table> <!--EndFragment--></div> </div>
28261000
150000000
150000000
164000000
132000000
6382000
8892000
320382000
319153000
55014000
83276000
168500000
265368000
235877000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong><em>13. Financial Instruments</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> Long-term debt consists of:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="3"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="3"> </td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="3"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="3"> </td> </tr> <tr> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> (in thousands, except interest rates)</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">June 30, <br /> 2013</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">December 31, 2012</td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt; WIDTH: 56%"> Convertible notes, par value $28,437, issued in March 2006 with fixed contractual interest rates of 2.25%, due in 2026, redeemed March 2013</td> <td style="FONT-WEIGHT: bold; COLOR: black; WIDTH: 8%"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 1%"> $</td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 12%"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 8%"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right; WIDTH: 1%"> $</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right; WIDTH: 12%"> 28,261</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Private placement with a fixed interest rate of 6.84%, due in 2013 through 2017</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 150,000</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 150,000</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Credit agreement with borrowings outstanding at an end of period interest rate of 2.75% in 2013 and 3.92% in 2012, due in 2018</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 164,000</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 132,000</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Various notes and mortgages relative to operations principally outside the United States, at an average end of period rate of 3.07% in 2013 and 3.06% in 2012, due in varying amounts through 2021</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 6,382</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 8,892</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; PADDING-LEFT: 1.5pt">Long-term debt</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 320,382</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 319,153</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Less: current portion</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> (55,014</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (83,276</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Long-term debt, net of current portion</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 265,368</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 235,877</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> The note agreement and guaranty ("Prudential agreement") was entered into in October 2005, and was amended and restated September 17, 2010 and March 26, 2013, with the Prudential Insurance Company of America, and on certain other purchasers, in an aggregate principal amount of $150 million, with interest at 6.84% and a maturity date of October 25, 2017. There are mandatory payments of $50 million on October 25, 2013 and October 25, 2015. At the noteholders' election, certain prepayments may also be required in connection with certain asset dispositions or financings. The notes may not otherwise be prepaid without a premium, under certain market conditions. The Prudential agreement contains customary terms, as well as affirmative covenants, negative covenants, and events of default comparable to those in our current principal credit facility (as described below). For disclosure purposes, we are required to measure the fair value of outstanding debt on a recurring basis. As of June 30, 2013, the fair value of the Prudential agreement was approximately $168.5 million, which was measured using active market interest rates, which would be considered Level 2 for fair value measurement purposes.</p> <p style="FONT: 10pt TimesNewRomanPSMT; MARGIN: 0px"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> On March 26, 2013, we entered into a $330 million, unsecured Five-Year Revolving Credit Facility Agreement ("Credit agreement"), under which $164 million of borrowings were outstanding as of June 30, 2013. The Credit agreement replaces the previous $390 million five-year Credit agreement made in 2010. The applicable interest rate for borrowings under the Credit agreement, as well as under the former agreement, is LIBOR plus a spread, based on our leverage ratio at the time of borrowing. At the time of the last borrowing on June 24, 2013, the spread was 1.375%. The spread is based on a pricing grid, which can go as low as 1.25% or as high as 1.875%, based on our leverage ratio.</p> <p style="FONT: 10pt TimesNewRomanPSMT; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Our ability to borrow additional amounts under the Credit agreement is conditional upon the absence of any defaults, as well as the absence of any material adverse change. Based on our maximum leverage ratio and our consolidated EBITDA (as defined in the Credit agreement), and without modification to any other Credit agreements, as of June 30, 2013 we would have been able to borrow an additional $166 million under the Credit agreement.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> On July 16, 2010, we entered into interest rate hedging transactions that have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $105 million of the indebtedness drawn under the Credit agreement at the rate of 2.04% for five years. Under the terms of these transactions, we pay the fixed rate of 2.04% and the counterparties pay a floating rate based on the three-month LIBOR rate at each quarterly calculation date, which on April 16, 2013 was 0.28%. The net effect is to fix the effective interest rate on $105 million of indebtedness at 2.04%, plus the applicable spread, until these swap agreements expire on July 16, 2015. As of June 30, 2013, the all-in rate on the $105 million of debt was 3.415%.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> On May 20, 2013, we entered into interest rate hedging transactions for the period July 16, 2015 through March 16, 2018. These transactions have the effect of fixing the LIBOR portion of the effective interest rate (before addition of the spread) on $110 million of the indebtedness drawn under the Credit agreement at the rate of 1.414% during this period. Under the terms of these transactions, we pay the fixed rate of 1.414% and the counterparties pay a floating rate based on the one-month LIBOR rate at each monthly calculation date, which on June 28, 2013 was 0.19%. The net effect is to fix the effective interest rate on $110 million of indebtedness at 1.414%, plus the applicable spread, during the swap period.</p> <p style="FONT: 11pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> The interest rate swaps are accounted for as a hedge of future cash flows, as further described in Note 14 of the Notes to Consolidated Financial Statements. No cash collateral was received or pledged in relation to the swap agreements.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> We are currently required to maintain a leverage ratio of not greater than 3.50 to 1.00 and minimum interest coverage of 3.00 to 1.00 under the Credit agreement and Prudential agreement.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> As of June 30, 2013, our leverage ratio was 1.75 to 1.00 and our interest coverage ratio was 8.57 to 1.00. We may purchase our Common Stock or pay dividends to the extent our leverage ratio remains at or below 3.50 to 1.00, and may make acquisitions with cash provided our leverage ratio would not exceed 3.50 to 1.00 after giving pro forma effect to the acquisition.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> On March 15, 2013, the Company redeemed, at 100 percent of par, all remaining 2.25% Convertible Senior Notes due 2026 (the "Notes"). The cash payments of $28.4 million were funded by increased borrowings under the Credit agreement.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> In connection with the sale of the Notes, we entered into hedge and warrant transactions with respect to our Class A common stock. These transactions were intended to reduce the potential dilution upon conversion of the Notes by providing us with the option, subject to certain exceptions, to acquire shares in an amount equal to the number of shares that we would be required to deliver upon conversion of the Notes. These transactions had the economic effect to the Company of increasing the conversion price of the Notes to $52.25 per share. The Notes hedge and warrant transactions had a net cost of $14.7 million. The hedge transactions expired on March 15, 2013.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Pursuant to the warrant transactions, we sold a total of 4.1 million warrants, each exercisable to buy a single share of Class A common stock at an initial strike price of $52.25 per share. The warrants are American-style warrants (exercisable at any time), and expire over a period of sixty trading days, which began on June 15, 2013, with a final expiration date of September 10, 2013. If the warrants are exercised when they expire, we may choose either net cash or net share settlement. If the warrants are exercised before they expire, they must be net share settled. If we elect to net cash settle the warrants, we will pay cash in an amount equal to, for each exercise of warrants, (i) the number of warrants exercised multiplied by (ii) the excess of the volume weighted average price of our Class A common stock on the expiration date of such warrants (the "settlement price") over the strike price. Under net share settlement, we will deliver to the warrant holders a number of shares of our Class A common stock equal to, for each exercise of warrants, the amount payable upon net cash settlement divided by the settlement price.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Indebtedness under the Prudential agreement and the Credit agreement is ranked equally in right of payment to all unsecured senior debt.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> We were in compliance with all debt covenants as of June 30, 2013.</p> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 0px"> <strong><em>1. Basis of Presentation</em></strong></p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments and elimination of intercompany transactions necessary for a fair presentation of results for such periods. Albany International Corp. consolidates the financial results of its subsidiaries for all periods presented. The results for any interim period are not necessarily indicative of results for the full year. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with "Risk Factors," " Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operation," "Quantitative and Qualitative Disclosures about Market Risk" and the Consolidated Financial Statements and Notes thereto included in Items 1A, 3, 7, 7A and 8, respectively, of the Albany International Corp. Annual Report on Form 10-K for the fiscal year ended December 31, 2012.</p> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The preparation of financial statements in accordance with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in Albany International Corp.'s Consolidated Financial Statements and accompanying Notes. Actual results could differ materially from those estimates.</p> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong><em>6. Other Expense/(Income), net</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The components of Other expense/(income), net, are:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center" colspan="5"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center" colspan="5"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="5">Three months ended<br /> June 30,</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="5">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black"><strong>(in thousands)</strong></font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt; WIDTH: 40%"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Currency transactions</font></font> </td> <td style="FONT-WEIGHT: bold; WIDTH: 1%"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right; WIDTH: 10%"> $1,894</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">($3,133</td> <td style="TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="FONT-WEIGHT: bold; WIDTH: 3%"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right; WIDTH: 10%"> $1,903</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">$699</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt" nowrap="nowrap"> Bank fees and amortization of debt issuance costs</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">377</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">533</td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">998</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">1,209</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Letter of credit fees</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">-</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">351</td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">-</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">770</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Other</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> (60</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (306</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> 44</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (685</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Total</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $2,211</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> ($2,555</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $2,945</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $1,993</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
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<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <strong><em>4. Pensions and Other Postretirement Benefit Plans</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <em>Pension Plans</em></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The U.S. qualified defined benefit pension plan has been closed to new participants since October 1998 and, as of February 2009, benefits accrued under this plan were frozen. As a result of the freeze, employees covered by the pension plan will receive, at retirement, benefits already accrued through February 2009, but no new benefits accrue after that date. Benefit accruals under the U.S. Supplemental Executive Retirement Plan ("SERP") were similarly frozen. The eligibility, benefit formulas, and contribution requirements for plans outside of the U.S. vary by location.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> <em>Other Postretirement Benefits</em></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> In addition to providing pension benefits, the Company provides various medical, dental, and life insurance benefits for certain retired United States employees. U.S. employees hired prior to 2005 may become eligible for these benefits if they reach normal retirement age while working for the Company. Benefits provided under this plan are subject to change. Retirees share in the cost of these benefits. Effective January 2005, any new employees who wish to be covered under this plan will be responsible for the full cost of such benefits, except for life insurance benefits, which continue to be provided. In September 2008, we changed the cost sharing arrangement under this program such that increases in health care costs are the responsibility of plan participants.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The Company also provides certain postretirement life insurance benefits to retired employees in Canada. The Company accrues the cost of providing postretirement benefits during the active service period of the employees. The Company currently funds the plan as claims are paid.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> The composition of the net periodic benefit plan cost for the six months ended June 30, 2013 and 2012 was as follows:</p> <table style="BORDER-COLLAPSE: collapse; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="4">Pension plans</td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Other postretirement benefits</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2012</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2012</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Components of net periodic benefit cost:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Service cost</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $1,684</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $1,699</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $571</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $536</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Interest cost</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 4,000</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 7,589</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 1,604</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 1,844</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Expected return on assets</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (4,068</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (7,184</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Amortization of prior service cost/(credit)</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 17</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 17</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (1,834</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (1,834</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Amortization of transition obligation</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 34</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 37</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Amortization of net actuarial loss</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 1,571</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2,839</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 1,757</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 1,608</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Settlement</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 119,735</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Net periodic benefit cost</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $3,238</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $124,732</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $2,098</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $2,154</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> </table> <p style="FONT: 11pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> In the first quarter of 2012, the Company announced a plan to significantly reduce its pension plan liabilities by settling certain pension obligations leading to settlement charges totaling $119.7 million for the first six months of 2012. In the first quarter of 2012, we recorded a settlement charge of $9.2 million related to the extinguishment of our pension plan liability in Sweden. In the second quarter of 2012, we recorded settlement charges totaling $110.6 million related to settling a majority of the defined benefit pension plan liabilities in the United States and Canada.</p> <!--EndFragment--></div> </div>
5.00
5.00
2000000
2000000
0
0
12311000
10435000
38000000
122000000
130000000
38081000
150654000
5037000
51905000
29164000
38164000
6268000
1004000
2968000
79000
268000
406845000
420154000
15688000
17105000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The components of our Accumulated Other Comprehensive Income that are reclassified to the Statement of Operations relate to our pension and postretirement plans and interest rate swaps. The table below presents the amounts reclassified, and the line items of the Statement of Operations that were affected.</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left" nowrap="nowrap">(in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Three months ended<br /> June 30, 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black" nowrap="nowrap"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2" nowrap="nowrap">Six months ended<br /> June 30, 2013</td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> Pretax Derivative valuation reclassified from Accumulated Other Comprehensive Income:</td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 56%"> Swap interest expense</td> <td style="COLOR: black; WIDTH: 8%"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right; WIDTH: 13%"> ($500</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="COLOR: black; WIDTH: 8%"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right; WIDTH: 13%"> ($900</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Income tax effect</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (195</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (351</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Effect on net income due to items reclassified from Accumulated Other Comprehensive Income</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($305</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($549</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> Pretax pension and postretirement liabilities reclassified from Accumulated Other Comprehensive Income:</td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left"> Amortization of prior service cost/(credit)</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> ($908</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> ($1,817</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left"> Amortization of transition obligation</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 17</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 34</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Amortization of net actuarial loss</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,664</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 3,328</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left">Total pretax amount reclassified</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 773</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 1,545</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Income tax effect</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (270</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (541</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Effect on net income due to items reclassified from Accumulated Other Comprehensive Income</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $503</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $1,004</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
18476000
50659000
11981000
69223000
3800000
-476000
-1174000
566000
1403000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt; TEXT-INDENT: 0.5in"> <strong><em>5. Restructuring</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> During the second quarter of 2013, the Company completed consultations with employee works councils regarding a plan to restructure operations at the Company's Machine Clothing production facilities in Sélestat and St. Junien, France. The restructuring program was driven by the Company's need to balance manufacturing capacity and demand. The restructuring charges recorded primarily related to severance and social costs. Under the terms of the restructuring plan, the Company will also provide training, outplacement and other programs. The costs for those benefits will be recorded as restructuring in future quarters when they are incurred and are expected to total $6 to $8 million.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> The Company expects to record a pension curtailment gain the second half of 2013 related to this restructuring activity, but the amount has not yet been determined. Whereas most of the affected employees were involved in the production process, the full effect of cost savings associated with the restructuring, estimated to be $10 million per year, will not be fully realized until the second half of 2014. The effects of the cost reduction will principally affect cost of goods sold.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Substantially all of the restructuring charges recorded in the second quarter of 2013 relate to the completion of these consultations, which will result in the reduction of approximately 200 employees, most of which will leave the Company during the third quarter of 2013. Whereas most of the affected employees were involved in the production process, the full effect of cost savings associated with the restructuring will not be fully realized until the second half of 2014. Through the first six months of 2013, the Company incurred some restructuring costs in the Engineered Composites segment that were related to organizational changes and exiting certain aerospace programs.</p> <p style="FONT: 11pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The 2012 restructuring expense was principally due to a reduction in workforce in Sweden and curtailment of manufacturing in New York and Wisconsin which was related to the lower demand for paper machine clothing. Those costs were partially offset by a reduction in accruals related to the Company's headquarters.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The following table summarizes charges reported in the Statements of Operations under "Restructuring and other":</p> <table style="BORDER-COLLAPSE: collapse; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Three months ended<br /> June 30,</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Machine Clothing</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $24,230</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $2,903</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $24,423</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $3,576</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Engineered Composites</font> </font> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 91</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 534</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 249</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (166</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Total</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,321</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,152</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,957</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,410</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> Six months ended June 30, 2013<br /> <br /> (in thousands)</td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong>Total <font style="COLOR: black">restructuring costs incurred</font></strong></font> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> <font style="COLOR: black">Termination and other costs</font> </strong></font> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> Impairment of plant and equipment</td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> <font style="COLOR: black">Benefit plan curtailment/ settlement</font> </strong></font> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Machine Clothing</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%">$24,423</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%">$24,587</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%"> $ -</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%">($164)</td> </tr> <tr> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Engineered Composites</font> </font> </td> <td> </td> <td style="TEXT-ALIGN: right">534</td> <td> </td> <td style="TEXT-ALIGN: right">446</td> <td> </td> <td style="TEXT-ALIGN: right">88</td> <td> </td> <td style="TEXT-ALIGN: right">- </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> - </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Total</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $24,957</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $25,033</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $88</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> ($164)</td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> Six months ended June 30, 2012<br /> <br /> (in thousands)</td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong>Total <font style="COLOR: black">restructuring costs incurred</font></strong></font> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> <font style="COLOR: black">Termination and other costs</font> </strong></font> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> Impairment of plant and equipment</td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> <font style="COLOR: black">Benefit plan curtailment/ settlement</font> </strong></font> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Machine Clothing</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt; WIDTH: 12%"> $3,576</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%">$3,576</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt; WIDTH: 12%"> $ - </td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt; WIDTH: 12%"> $ -</td> </tr> <tr> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Engineered Composites</font> </font> </td> <td> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt">-</td> <td> </td> <td style="TEXT-ALIGN: right">-</td> <td> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt">- </td> <td> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt">-</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (166)</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 380</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (546)</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-RIGHT: 3pt"> -</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Total</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-RIGHT: 3pt"> $3,410</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $3,956</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($546)</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-RIGHT: 3pt"> $ -</td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> We expect that substantially all accruals for restructuring liabilities will be paid within one year. The table below presents year-to-date changes in restructuring liabilities for 2013 and 2012 all of which related to termination costs:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: left; VERTICAL-ALIGN: bottom"> <strong>(in thousands)</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>December 31, 2012</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>Restructuring charges accrued</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>Payments</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>Currency translation/<br /> other</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>June 30,<br /> 2013</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 32%"> Total</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 13%"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$4,947</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 14%"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$24,869</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right; WIDTH: 10%"> ($2,576)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right; WIDTH: 11%"> ($269)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 12%"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$26,971</font> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: left; VERTICAL-ALIGN: bottom; WIDTH: 34%"> <strong>(in thousands)</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 15%"> <strong>December 31, 2011</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 15%"> <strong>Restructuring charges accrued</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 11%"> <strong>Payments</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 12%"> <strong>Currency translation/<br /> other</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 13%"> <strong>June 30,<br /> 2012</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Total</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$6,979</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$3,830</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> ($2,778)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> ($243)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$7,788</font> </td> </tr> </table> <!--EndFragment--></div> </div>
6000000
8000000
200
24869000
3830000
24321000
24957000
3152000
3410000
24230000
24423000
2903000
3576000
91000
534000
249000
-166000
24587000
3576000
446000
88000
380000
-546000
25033000
3956000
88000
-546000
-164000
-164000
26971000
4947000
7788000
6979000
-269000
-243000
430736000
435775000
197974000
384628000
191940000
372017000
177536000
344946000
177122000
341410000
20438000
39682000
14818000
30607000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The components of Accounts receivable are summarized below:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; WIDTH: 63%"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; WIDTH: 18%"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; WIDTH: 19%"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; PADDING-TOP: 12pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> <strong>(in thousands)</strong> </font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; PADDING-TOP: 12pt; TEXT-ALIGN: center"> <strong>June 30, 2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; PADDING-TOP: 12pt; TEXT-ALIGN: center"> December 31, 2012</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Trade accounts receivable</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $154,279</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$149,737</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Revenue in excess of progress billings</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> 15,688</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">17,105</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Receivables related to the sale of discontinued businesses</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> 16,795</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">16,555</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Less: allowance for doubtful accounts</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; TEXT-ALIGN: right"> <strong> (11,881)</strong></td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt; TEXT-ALIGN: right"> (11,862)</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> Total Accounts receivable, net</td> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $174,881</strong></font> </td> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 3pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$171,535</font> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The table below presents changes in the components of Accumulated Other Comprehensive Income for the period December 31, 2012 to June 30, 2013:</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> (in thousands)</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">Translation adjustments</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">Pension and postretirement liability adjustments</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">Derivative valuation adjustment</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">Total Other Comprehensive Income</td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 40%"> Balance, December 31, 2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> ($7,659</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> ($69,484</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> ($2,878</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> ($80,021</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> </tr> <tr> <td> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left">Other comprehensive income before reclassifications</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> (14,494</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 1,225</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 2,301</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> (10,968</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left">Interest expense related to swaps reclassified to the Statement of Operations, net of tax</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> (549</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> (549</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Pension and postretirement liability adjustments reclassified to Statement of Operations, net of tax</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,004</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,004</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> Net current period other comprehensive income</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (14,494</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 2,229</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,752</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (10,513</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> Balance, June 30, 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($22,153</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($67,255</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($1,126</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($90,534</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The following table presents components of income tax expense/(benefit) for the three and six month periods ended June 30, 2013 and 2012:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-TOP: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-TOP: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="FONT-SIZE: 11pt; BORDER-TOP: black 1pt solid"> </td> <td style="FONT-SIZE: 11pt; BORDER-TOP: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: right"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="5">Three months ended<br /> June 30,</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: center" colspan="5">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="2">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="2"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt; WIDTH: 40%"> Income tax based on income from continuing operations, at estimated tax rates of 39.0% and 26.5%, respectively</td> <td style="FONT-WEIGHT: bold; COLOR: black; WIDTH: 1%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 10%"> ($3,616</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 10%">$6,133</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 10%"> $3,310</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 10%">$5,896</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Pension plan settlement</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(37,047</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(39,460</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt">Tax rate adjustment on pension plan settlement</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">886</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Provision for change in estimated tax rates</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 888</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (297</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Income tax before discrete items</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> (2,728</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(30,325</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 3,310</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(33,564</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Discrete tax expense/(benefit):</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Provision for/resolution of tax audits and<br /> contingencies, net</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 425</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">682</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 425</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(6,051</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Repatriation of non-U.S. prior year earnings</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 186</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 186</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Adjustments to prior period tax liabilities</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> (126</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 84</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Total income tax expense/(benefit)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($2,243</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($29,643</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $4,005</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($39,615</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> Long-term debt consists of:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="3"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="3"> </td> </tr> <tr> <td style="TEXT-ALIGN: right"> </td> <td> </td> <td style="TEXT-ALIGN: right" colspan="3"> </td> <td> </td> <td style="TEXT-ALIGN: center" colspan="3"> </td> </tr> <tr> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> (in thousands, except interest rates)</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: center" colspan="3">June 30, <br /> 2013</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">December 31, 2012</td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt; WIDTH: 56%"> Convertible notes, par value $28,437, issued in March 2006 with fixed contractual interest rates of 2.25%, due in 2026, redeemed March 2013</td> <td style="FONT-WEIGHT: bold; COLOR: black; WIDTH: 8%"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 1%"> $</td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 12%"> -</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 8%"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right; WIDTH: 1%"> $</td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right; WIDTH: 12%"> 28,261</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Private placement with a fixed interest rate of 6.84%, due in 2013 through 2017</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 150,000</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 150,000</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Credit agreement with borrowings outstanding at an end of period interest rate of 2.75% in 2013 and 3.92% in 2012, due in 2018</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 164,000</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 132,000</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Various notes and mortgages relative to operations principally outside the United States, at an average end of period rate of 3.07% in 2013 and 3.06% in 2012, due in varying amounts through 2021</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 6,382</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 8,892</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; PADDING-LEFT: 1.5pt">Long-term debt</td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 320,382</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; COLOR: black; TEXT-ALIGN: right"> 319,153</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Less: current portion</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> (55,014</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (83,276</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Long-term debt, net of current portion</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 265,368</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 235,877</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> Gains/ (losses) related to changes in fair value of derivative instruments that were recognized in Other expense/(income), net in the Statement of Operations were as follows:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="BORDER-TOP: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center" colspan="2">Three months ended<br /> June 30,</td> <td style="BORDER-TOP: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center" colspan="2">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; WIDTH: 56%" nowrap="nowrap">(in thousands)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center; WIDTH: 10%" nowrap="nowrap"><strong>2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center; WIDTH: 12%" nowrap="nowrap">2012</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center; WIDTH: 10%" nowrap="nowrap"><strong>2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: center; WIDTH: 12%" nowrap="nowrap">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt"> Derivatives not designated as hedging instruments</td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> <td style="PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> Forward exchange options</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> - </strong></font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> 119</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> - </strong></font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> 118</font> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The table below summarizes operating results of the discontinued operations:</p> <table style="FONT-FAMILY: Arial, Helvetica, Sans-Serif; BORDER-COLLAPSE: collapse; MARGIN-LEFT: 0.5in; WIDTH: 90%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 42%"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 14%"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 15%"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 14%"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 15%"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">Three months ended</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">Three months ended</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">Six months ended</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">Six months ended</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <strong>(in thousands)</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2012</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2012</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Net sales</td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $0</strong></font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> $ 10,283</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $0</strong></font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> $ 19,774</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> (Loss)/Income from operations of discontinued business before tax</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong> (575)</strong></td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2,760</font> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong> (575)</strong></td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 4,776</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Gain on disposition of discontinued operations</td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> -</strong></font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 34,709</font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> -</strong></font> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 92,677</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Income tax (benefit)/expense</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong> (224)</strong></td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 13,439</font> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 10pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong> (224)</strong></td> <td style="FONT-SIZE: 10pt; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 26,253</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 11pt; BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="FONT-SIZE: 10pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The amounts used in computing earnings per share and the weighted average number of shares of potentially dilutive securities are as follows:</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center" colspan="5">Three months ended<br /> June 30,</td> <td> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center" colspan="5">Six months ended <br /> June 30,</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> <strong>(in thousands, except market price data)</strong></td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> </tr> <tr> <td> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Net income/(loss) available to common shareholders</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right; WIDTH: 11%"> ($7,379</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%"> ($33,745</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%"> )</td> <td style="FONT-WEIGHT: bold; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right; WIDTH: 11%"> $4,132</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; WIDTH: 11%"> $13,296</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; PADDING-LEFT: 5.4pt">Weighted average number of shares:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> Weighted average number of shares used in</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt" nowrap="nowrap"> calculating basic net income/(loss) per share</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">31,628</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">31,349</td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">31,562</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">31,329</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Effect of dilutive stock-based compensation plans:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Stock options</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">-</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">-</td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">125</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">69</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Long-term incentive plan</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> 169</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 120</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt">Weighted average number of shares used in</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> calculating diluted net income/(loss) per share</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> 31,628</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 31,349</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> 31,856</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 31,518</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt">Average market price of common stock used</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt">for calculation of dilutive shares</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $30.59</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $20.22</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $28.53</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $22.08</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; PADDING-LEFT: 5.4pt">Net income per share:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> Basic</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">($0.23</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left">)</td> <td> </td> <td style="TEXT-ALIGN: right">($1.08</td> <td style="TEXT-ALIGN: left">)</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">$0.13</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">$0.42</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> Diluted</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> ($0.23</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> ($1.08</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $0.13</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $0.42</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> Estimated amortization expense of intangibles for the years ending December 31, 2013 through 2017, is as follows:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 40%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 43%"> </td> <td style="FONT-SIZE: 8pt; BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 8%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right; WIDTH: 49%"> <strong>Annual amortization</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>Year</strong></td> <td style="FONT-SIZE: 8pt; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 8pt Arial, Helvetica, Sans-Serif; FONT-SIZE: 8pt; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> <strong>(in thousands)</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2013</td> <td style="FONT-SIZE: 8pt; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$231</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2014</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 231</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2015</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 231</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2016</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 29</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> 2017</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 29</font> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> The changes in intangible assets and goodwill from December 31, 2012 to June 30, 2013, were as follows:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2"> </td> </tr> <tr> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2">Balance at</td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2">Currency</td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="VERTICAL-ALIGN: bottom; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2">Balance at</td> </tr> <tr> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left" nowrap="nowrap">(in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black" nowrap="nowrap"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2" nowrap="nowrap">December 31, 2012</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" nowrap="nowrap"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right" colspan="2" nowrap="nowrap"><strong>Amortization</strong></td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" nowrap="nowrap"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2" nowrap="nowrap">Translation</td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" nowrap="nowrap"> </td> <td style="VERTICAL-ALIGN: bottom; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right" colspan="2" nowrap="nowrap">June 30, 2013</td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Amortized intangible assets:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt; WIDTH: 40%"> AEC trade names</td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">$38</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%">($2</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="COLOR: black; WIDTH: 3%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> $ -</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; WIDTH: 3%"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right; WIDTH: 11%"> $36</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> AEC customer contracts</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">606</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(101</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 505</td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> AEC technology</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 204</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> (12</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> 192</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Total amortized intangible assets</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $848</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($115</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $ -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $733</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold; COLOR: black"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> </td> <td style="FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Unamortized intangible assets:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; PADDING-LEFT: 1.5pt"> Goodwill</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $76,522</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> $ -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($834</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $75,688</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td style="COLOR: black"> </td> <td style="COLOR: black; TEXT-ALIGN: right"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The components of Inventories are summarized below:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 64%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 18%"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </font> </td> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 18%"> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> <strong>(in thousands)</strong> </font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> <strong>June 30, 2013</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> December 31, 2012</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Finished goods</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $48,698</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$49,235</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Work in process</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> 42,871</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 44,866</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Raw material and supplies</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> 25,874</strong></font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> 25,082</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Total inventories</td> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> $117,443</strong></font> </td> <td style="BORDER-TOP: windowtext 1pt solid; BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$119,183</font> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right" nowrap="nowrap"><em>Year ended<br /> December<br /> 31,</em></td> <td style="BORDER-TOP: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em>Opening Number<br /> of Claims</em></p> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em> </em></p> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>Claims Dismissed,<br /> Settled, or<br /> Resolved</em></td> <td style="BORDER-TOP: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em> </em></p> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em>New Claims</em></p> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>Closing<br /> Number of<br /> Claims</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 0.05in; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>Amounts Paid<br /> (thousands) to<br /> Settle or<br /> Resolve</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2005</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,985</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>642</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>223</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,566</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>$ 0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2006</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,566</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>1,182</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>730</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,114</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2007</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,114</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>462</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>88</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,740</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2008</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,740</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>86</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>10</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,664</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2009</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,664</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>760</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>3</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,907</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2010</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,907</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>47</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,869</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2011</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,869</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>3</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>11</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,877</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2012</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,877</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>12</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>2</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>7,867</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>0</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><strong><em>2013 as of July 19</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>7,867</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>54</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>2</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>7,815</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>$ 0</em></strong></td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The following table sets forth the number of claims filed, the number of claims settled, dismissed or otherwise resolved, and the aggregate settlement amount during the periods presented:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; WIDTH: 16%" nowrap="nowrap"><em>Year ended<br /> December 31,</em></td> <td style="BORDER-TOP: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; WIDTH: 16%" nowrap="nowrap"> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em>Opening Number of Claims</em></p> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em> </em></p> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in; WIDTH: 18%" nowrap="nowrap"><em>Claims Dismissed,<br /> Settled, or<br /> Resolved</em></td> <td style="BORDER-TOP: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt; PADDING-RIGHT: 5.4pt; WIDTH: 14%" nowrap="nowrap"> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em> </em></p> <p style="TEXT-ALIGN: right; FONT: 8pt Arial IMT Bold,serif; MARGIN: 0px 0px 10pt 0.25in; TEXT-INDENT: -0.25in"> <em>New Claims</em></p> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in; WIDTH: 13%" nowrap="nowrap"><em>Closing<br /> Number<br /> of<br /> Claims</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; BORDER-TOP: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 0.05in; TEXT-ALIGN: right; TEXT-INDENT: -0.25in; WIDTH: 23%" nowrap="nowrap"><em>Amounts Paid<br /> (thousands) to<br /> Settle or<br /> Resolve</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2005</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>29,411</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>6,257</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>1,297</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>24,451</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em> $ 504</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2006</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>24,451</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>6,841</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>1,806</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>19,416</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>3,879</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2007</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>19,416</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>808</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em> 190</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>18,798</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>15</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2008</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>18,798</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>523</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>110</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>18,385</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>52</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2009</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>18,385</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>9,482</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>42</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,945</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>88</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2010</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>8,945</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>3,963</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>188</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>5,170</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>159</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><em>2011</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>5,170</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>789</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>65</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>4,446</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>1,111</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="FONT-SIZE: 8pt; BORDER-RIGHT: black 1pt solid; BORDER-BOTTOM: black 1pt solid; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; BORDER-LEFT: black 1pt solid; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><font style="FONT: 8pt Arial IMT Bold,serif"><em>2012</em></font> </td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>4,446</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>90</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>107</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>4,463</em></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><em>530</em></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-LEFT: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 8pt Arial IMT Bold,serif; FONT-SIZE: 8pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 5pt; PADDING-RIGHT: 5.4pt" nowrap="nowrap"><strong><em>2013 as of July 19</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>4,463</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>215</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>47</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>4,295</em></strong></td> <td style="BORDER-BOTTOM: black 1pt solid; BORDER-RIGHT: black 1pt solid; FONT: 12pt Arial IMT Bold,serif; FONT-SIZE: 12pt; PADDING-BOTTOM: 10pt; PADDING-LEFT: 0.25in; PADDING-RIGHT: 5.4pt; TEXT-ALIGN: right; TEXT-INDENT: -0.25in" nowrap="nowrap"><strong><em>$ 3</em></strong></td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> The composition of the net periodic benefit plan cost for the six months ended June 30, 2013 and 2012 was as follows:</p> <table style="BORDER-COLLAPSE: collapse; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="4">Pension plans</td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Other postretirement benefits</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2012</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2012</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Components of net periodic benefit cost:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Service cost</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $1,684</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $1,699</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $571</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $536</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Interest cost</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 4,000</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 7,589</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 1,604</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 1,844</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Expected return on assets</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (4,068</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (7,184</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Amortization of prior service cost/(credit)</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 17</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 17</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (1,834</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (1,834</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Amortization of transition obligation</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 34</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 37</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Amortization of net actuarial loss</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 1,571</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2,839</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 1,757</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 1,608</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Settlement</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 119,735</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Net periodic benefit cost</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $3,238</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $124,732</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $2,098</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $2,154</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The components of Other expense/(income), net, are:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center" colspan="5"> </td> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center" colspan="5"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="5">Three months ended<br /> June 30,</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="5">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black"><strong>(in thousands)</strong></font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center" colspan="2">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt; WIDTH: 40%"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Currency transactions</font></font> </td> <td style="FONT-WEIGHT: bold; WIDTH: 1%"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right; WIDTH: 10%"> $1,894</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">($3,133</td> <td style="TEXT-ALIGN: left; WIDTH: 1%">)</td> <td style="FONT-WEIGHT: bold; WIDTH: 3%"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right; WIDTH: 10%"> $1,903</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left; WIDTH: 1%"> </td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 10%">$699</td> <td style="TEXT-ALIGN: left; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt" nowrap="nowrap"> Bank fees and amortization of debt issuance costs</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">377</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">533</td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">998</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">1,209</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Letter of credit fees</td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">-</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">351</td> <td style="TEXT-ALIGN: left"> </td> <td style="FONT-WEIGHT: bold"> </td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: right">-</td> <td style="FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right">770</td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Other</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> (60</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (306</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> 44</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (685</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Total</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $2,211</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> ($2,555</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left">)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: right"> $2,945</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $1,993</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left"> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The following table summarizes charges reported in the Statements of Operations under "Restructuring and other":</p> <table style="BORDER-COLLAPSE: collapse; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Three months ended<br /> June 30,</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Machine Clothing</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $24,230</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $2,903</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $24,423</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $3,576</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Engineered Composites</font> </font> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 91</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 534</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 249</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (166</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Total</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,321</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,152</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,957</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,410</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> Six months ended June 30, 2013<br /> <br /> (in thousands)</td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong>Total <font style="COLOR: black">restructuring costs incurred</font></strong></font> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> <font style="COLOR: black">Termination and other costs</font> </strong></font> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> Impairment of plant and equipment</td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> <font style="COLOR: black">Benefit plan curtailment/ settlement</font> </strong></font> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Machine Clothing</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%">$24,423</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%">$24,587</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%"> $ -</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%">($164)</td> </tr> <tr> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Engineered Composites</font> </font> </td> <td> </td> <td style="TEXT-ALIGN: right">534</td> <td> </td> <td style="TEXT-ALIGN: right">446</td> <td> </td> <td style="TEXT-ALIGN: right">88</td> <td> </td> <td style="TEXT-ALIGN: right">- </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> - </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Total</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $24,957</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $25,033</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $88</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> ($164)</td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> Six months ended June 30, 2012<br /> <br /> (in thousands)</td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong>Total <font style="COLOR: black">restructuring costs incurred</font></strong></font> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> <font style="COLOR: black">Termination and other costs</font> </strong></font> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> Impairment of plant and equipment</td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold"> </td> <td style="BORDER-TOP: black 1pt solid; BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; TEXT-ALIGN: center"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"><strong> <font style="COLOR: black">Benefit plan curtailment/ settlement</font> </strong></font> </td> </tr> <tr> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Machine Clothing</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt; WIDTH: 12%"> $3,576</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; WIDTH: 12%">$3,576</td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt; WIDTH: 12%"> $ - </td> <td style="WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt; WIDTH: 12%"> $ -</td> </tr> <tr> <td style="TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"><font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Engineered Composites</font> </font> </td> <td> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt">-</td> <td> </td> <td style="TEXT-ALIGN: right">-</td> <td> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt">- </td> <td> </td> <td style="TEXT-ALIGN: right; PADDING-RIGHT: 3pt">-</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (166)</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> 380</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> (546)</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-RIGHT: 3pt"> -</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; PADDING-LEFT: 5.4pt"> <font style="FONT: 10pt Arial, Helvetica, Sans-Serif"> <font style="COLOR: black">Total</font> </font> </td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-RIGHT: 3pt"> $3,410</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right"> $3,956</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> ($546)</td> <td style="BORDER-BOTTOM: black 1pt solid"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; PADDING-RIGHT: 3pt"> $ -</td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> We expect that substantially all accruals for restructuring liabilities will be paid within one year. The table below presents year-to-date changes in restructuring liabilities for 2013 and 2012 all of which related to termination costs:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: left; VERTICAL-ALIGN: bottom"> <strong>(in thousands)</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>December 31, 2012</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>Restructuring charges accrued</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>Payments</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>Currency translation/<br /> other</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom"> <strong>June 30,<br /> 2013</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 32%"> Total</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 13%"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$4,947</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 14%"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$24,869</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right; WIDTH: 10%"> ($2,576)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right; WIDTH: 11%"> ($269)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 12%"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$26,971</font> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in"> </p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: left; VERTICAL-ALIGN: bottom; WIDTH: 34%"> <strong>(in thousands)</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 15%"> <strong>December 31, 2011</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 15%"> <strong>Restructuring charges accrued</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 11%"> <strong>Payments</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 12%"> <strong>Currency translation/<br /> other</strong></td> <td style="BORDER-BOTTOM: windowtext 1pt solid; BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; VERTICAL-ALIGN: bottom; WIDTH: 13%"> <strong>June 30,<br /> 2012</strong></td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> Total</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$6,979</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$3,830</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> ($2,778)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> ($243)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">$7,788</font> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0.5in"> The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements:</p> <table style="BORDER-COLLAPSE: collapse; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-SIZE: 10pt; BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; COLOR: black; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Three months ended<br /> June 30,</td> <td style="BORDER-TOP: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; COLOR: black; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Net sales</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Machine Clothing (MC)</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $177,536</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $177,122</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $344,946</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $341,410</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Engineered Composites (AEC)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 20,438</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 14,818</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 39,682</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 30,607</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Consolidated total</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $197,974</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $191,940</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $384,628</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $372,017</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Operating income/(loss)</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Machine Clothing</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $20,699</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $44,997</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $63,607</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $75,842</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Engineered Composites</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (1,825</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (369</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (3,888</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (340</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Research expense</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (7,673</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (7,253</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (14,664</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (13,318</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (14,714</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (123,379</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (26,050</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (149,097</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Operating income/(loss) before reconciling items</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (3,513</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (86,004</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 19,005</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (86,913</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Reconciling items:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Interest income</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (300</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (522</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (600</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (606</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Interest expense</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 3,847</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 4,491</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 8,172</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 9,219</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Other expense/ (income), net</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2,211</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (2,555</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2,945</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 1,993</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Income/(loss) from continuing operations before income taxes</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> ($9,271</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> ($87,418</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $8,488</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> ($97,519</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="MARGIN-BOTTOM: 6pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-LEFT: 0px; MARGIN-TOP: 0pt; TEXT-INDENT: 22pt"> The following table presents the number of shares issued and outstanding:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 31%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; WIDTH: 15%"> Class A</td> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 3%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; WIDTH: 15%"> Class B</td> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 3%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; WIDTH: 15%"> Less: Treasury</td> <td style="BORDER-TOP: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; WIDTH: 3%"> </td> <td style="BORDER-TOP: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center; WIDTH: 15%"> Net shares</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> Shares</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> Shares</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: center; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> Shares</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: center"> Outstanding</td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> June 30, 2013</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">36,875,127</font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">3,236,098</font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> (8,463,635)</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">31,647,590</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> March 31, 2013</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">36,827,227</font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">3,236,098</font> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> (8,467,873)</td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">31,595,452</font> </td> </tr> <tr style="VERTICAL-ALIGN: top"> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> June 30, 2012</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">36,589,304</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">3,236,098</font> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt; TEXT-ALIGN: right"> (8,467,873)</td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> </td> <td style="BORDER-BOTTOM: windowtext 1pt solid; TEXT-ALIGN: right; PADDING-LEFT: 1.5pt; PADDING-RIGHT: 1.5pt"> <font style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif">31,357,529</font> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 6pt 0in; TEXT-INDENT: 0.5in"> The following table summarizes changes in Stockholders' Equity:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 9pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Class A Common Stock</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Class B Common Stock</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Additional paid in capital</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Retained earnings</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Accumulated items of other comprehensive income</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Treasury<br /> stock</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left" colspan="3">Total<br /> Shareholders'<br /> Equity</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; PADDING-LEFT: 1.5pt">December 31, 2012</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%">$37</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%">$3</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> $395,381</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> $435,775</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> ($80,021</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%">)</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> ($257,664</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%">)</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> $493,511</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt">Net income</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">4,132</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">4,132</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Dividends declared</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(9,171</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(9,171</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Compensation and benefits paid or payable in Class A Common Stock</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(1,311</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(1,311</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Options exercised</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">3,492</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">3,492</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Shares issued to Directors</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">44</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">93</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">137</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Cumulative translation adjustment</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(14,494</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(14,494</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Change in pension liability adjustment</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,229</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,229</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Change in derivative valuation adjustment</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,752</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,752</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; PADDING-LEFT: 1.5pt"> June 30, 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $37</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $3</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $397,606</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $430,736</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($90,534</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> ($257,571</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: right"> $480,277</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt"> <strong><em>3. Reportable Segments</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0.5in"> The following tables show data by reportable segment, reconciled to consolidated totals included in the financial statements:</p> <table style="BORDER-COLLAPSE: collapse; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="FONT-SIZE: 10pt; BORDER-TOP: black 1pt solid"> </td> <td style="BORDER-TOP: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; COLOR: black; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Three months ended<br /> June 30,</td> <td style="BORDER-TOP: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-TOP: black 1pt solid; COLOR: black; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="5">Six months ended<br /> June 30,</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif" colspan="2">2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Net sales</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Machine Clothing (MC)</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $177,536</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $177,122</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $344,946</td> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> $341,410</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Engineered Composites (AEC)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 20,438</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 14,818</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 39,682</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 30,607</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Consolidated total</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $197,974</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $191,940</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $384,628</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $372,017</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Operating income/(loss)</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Machine Clothing</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $20,699</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $44,997</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $63,607</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $75,842</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Engineered Composites</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (1,825</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (369</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (3,888</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (340</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Research expense</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (7,673</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (7,253</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (14,664</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (13,318</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (14,714</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (123,379</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (26,050</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (149,097</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Operating income/(loss) before reconciling items</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (3,513</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (86,004</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 19,005</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (86,913</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Reconciling items:</td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Interest income</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (300</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (522</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> (600</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (606</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Interest expense</td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 3,847</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 4,491</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 8,172</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 9,219</td> <td style="COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Other expense/ (income), net</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2,211</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> (2,555</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2,945</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> 1,993</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Income/(loss) from continuing operations before income taxes</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> ($9,271</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> ($87,418</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $8,488</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> ($97,519</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> )</td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0.5in"> </p> <p style="MARGIN-BOTTOM: 10pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"> The table below presents pension settlement and restructuring costs by reportable segment (also see Note 5):</p> <table style="BORDER-COLLAPSE: collapse; MARGIN-LEFT: 0.5in; WIDTH: 90%" cellspacing="0" cellpadding="0"> <tr> <td style="FONT-SIZE: 10pt"> </td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="3">Three months ended<br /> June 30,</td> <td style="COLOR: black; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="COLOR: black; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="4">Six months ended<br /> June 30,</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif"> 2012</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: center; FONT: 10pt Arial, Helvetica, Sans-Serif" colspan="2">2012</td> </tr> <tr> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Pension settlement</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $0</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $110,560</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $0</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $119,735</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr> <td style="PADDING-LEFT: 5.4pt"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> </tr> <tr> <td style="TEXT-ALIGN: left; FONT: bold 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Restructuring expense</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td> </tr> <tr> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Machine Clothing</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,230</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $2,903</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,423</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,576</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Engineered Composites</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 91</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> 534</td> <td style="FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> -</td> <td style="TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt; WIDTH: 40%"> Unallocated expenses</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 12%"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 12%"> 249</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif; WIDTH: 12%"> <strong>-</strong></td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 3%"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 11%"> (166</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; WIDTH: 1%"> )</td> </tr> <tr> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif; PADDING-LEFT: 5.4pt"> Consolidated total</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,321</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,152</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: bold 10pt Arial, Helvetica, Sans-Serif"> $24,957</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: right; FONT: 10pt Arial, Helvetica, Sans-Serif"> $3,410</td> <td style="BORDER-BOTTOM: black 1pt solid; TEXT-ALIGN: left; FONT: 10pt Arial, Helvetica, Sans-Serif"> </td> </tr> </table> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0.5in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Substantially all of the restructuring charges recorded in the second quarter of 2013 relate to the completion of consultations with employee works councils in Sélestat and St. Junien, France, which will result in the reduction of approximately 200 employees, most of which will leave the Company during the third quarter of 2013. The restructuring program was driven by the Company's need to balance manufacturing capacity and demand.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> Through the first six months of 2013, the Company incurred some restructuring costs in the Engineered Composites segment that were related to organizational changes and exiting certain aerospace programs.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 0px 0in; TEXT-INDENT: 0.5in"> </p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> The 2012 restructuring expense was principally due to a reduction in workforce in Sweden and curtailment of manufacturing in New York and Wisconsin which was related to the lower demand for paper machine clothing. Those costs were partially offset by a reduction in accruals related to the Company's headquarters.</p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 0px 0px 10pt 0in; TEXT-INDENT: 0.5in"> There were no material changes in the total assets of the reportable segments during this period.</p> <!--EndFragment--></div> </div>
41994000
78547000
37146000
84169000
-2500000
0
37000
37000
3000
3000
480277000
493511000
397606000
395381000
430736000
435775000
-90534000
-80021000
-257571000
-257664000
<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --><div> <div><!--StartFragment--> <p style="MARGIN-BOTTOM: 10pt; FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN-TOP: 0px; MARGIN-RIGHT: 0px"> <strong><em>16. Changes in Shareholders' Equity</em></strong></p> <p style="FONT: 10pt Arial, Helvetica, Sans-Serif; MARGIN: 12pt 0px 6pt 0in; TEXT-INDENT: 0.5in"> The following table summarizes changes in Stockholders' Equity:</p> <table style="BORDER-COLLAPSE: collapse; FONT: 9pt Arial, Helvetica, Sans-Serif; WIDTH: 100%" cellspacing="0" cellpadding="0"> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> (in thousands)</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Class A Common Stock</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Class B Common Stock</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Additional paid in capital</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Retained earnings</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Accumulated items of other comprehensive income</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: center" colspan="3">Treasury<br /> stock</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left" colspan="3">Total<br /> Shareholders'<br /> Equity</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; PADDING-LEFT: 1.5pt">December 31, 2012</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%">$37</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%">$3</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> $395,381</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> $435,775</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> ($80,021</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%">)</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> ($257,664</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%">)</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> <td style="COLOR: black; TEXT-ALIGN: right; WIDTH: 5%"> $493,511</td> <td style="COLOR: black; TEXT-ALIGN: left; WIDTH: 2%"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt">Net income</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">4,132</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">4,132</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Dividends declared</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(9,171</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(9,171</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Compensation and benefits paid or payable in Class A Common Stock</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(1,311</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(1,311</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Options exercised</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">3,492</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">3,492</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Shares issued to Directors</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">44</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: left"> </td> <td style="TEXT-ALIGN: right"> </td> <td style="TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">93</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">137</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Cumulative translation adjustment</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(14,494</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">(14,494</td> <td style="COLOR: black; TEXT-ALIGN: left">)</td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Change in pension liability adjustment</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,229</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">-</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> <td style="COLOR: black; TEXT-ALIGN: right">2,229</td> <td style="COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left; PADDING-LEFT: 1.5pt"> Change in derivative valuation adjustment</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,752</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> -</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: right"> 1,752</td> <td style="BORDER-BOTTOM: black 1pt solid; COLOR: black; TEXT-ALIGN: left"> </td> </tr> <tr style="VERTICAL-ALIGN: bottom"> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; COLOR: black; PADDING-LEFT: 1.5pt"> June 30, 2013</td> <td style="BORDER-BOTTOM: black 1pt solid; FONT-WEIGHT: bold; 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FONT-WEIGHT: bold; COLOR: black; TEXT-ALIGN: left"> </td> </tr> </table> <!--EndFragment--></div> </div>
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