XML 62 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Postretirement Benefits
 12 Months Ended
Dec. 31, 2011
Postretirement Benefits [Abstract]  
Postretirement Benefits

15. Postretirement Benefits

We maintain a postretirement benefit for two former officers of Summit, who also serve on our Board of Trust Managers. Benefits received by these former employees include medical benefits and office space. Participants in the postretirement plan contribute to the cost of the medical benefits. Our contribution for medical benefits was limited to amounts between $540 and $1,260 per month per participant including dependents. We contributed approximately $0.2 million for office space during the year ended December 31, 2011 and expect to contribute $0.2 million for office space in 2012. For measurement purposes, a 7.8% rate of increase in the per capita cost of covered health care claims was assumed; the rate of increase was assumed to decrease until 2027 at which point the annual rate of increase would be 4.5% and remain at that level thereafter.

As of December 31, the status of our defined postretirement benefit plan, calculated using generally accepted actuarial principles and procedures, was as follows:

 

September 30, September 30,

(in thousands)

      2011      2010  

Postretirement benefit obligation, beginning of year

      $ 2,844       $ 2,949   

Net periodic benefit cost

        193         174   

Actuarial (gain) loss

        609         (65 ) 

Prior service cost

        291         —     

Amortization of prior service cost

        (16 )       —     

Benefits paid

        (220 )       (214 ) 
    

 

 

     

 

 

  

Accumulated postretirement benefit obligation, end of year

      $ 3,701       $ 2,844   
    

 

 

     

 

 

  

The weighted average discount rate used to determine the value of accumulated postretirement benefit obligation for the years ended December 31, 2011 and 2010 was 4.50% and 6.10%, respectively. Postretirement liabilities are recorded in other liabilities in our consolidated balance sheets.

 

The following table details the components of net periodic benefit cost for the years ended December 31 related to postretirement benefits.

 

September 30, September 30, September 30,
(in thousands)      2011        2010        2009  

Interest cost

      $ 177         $ 174         $ 181   

Amortization of prior service cost

        16           —             —     
    

 

 

       

 

 

       

 

 

  

Total net periodic benefit cost

      $ 193         $ 174         $ 181   
    

 

 

       

 

 

       

 

 

  

The weighted average discount rate used to determine the value of the net periodic benefit cost for the years ended December 31, 2011, 2010 and 2009 was 5.25%, 6.10% and 6.29%, respectively.

The following table details the change in plan assets for the years ended December 31 related to postretirement benefits.

 

September 30, September 30,
(in thousands)      2011      2010  

Fair value of plan assets at end of prior year

      $ —         $ —     

Employer contributions

        220         214   

Benefits paid

        (220 )       (214 ) 
    

 

 

     

 

 

  

Fair value of plan assets at end of year

      $ —         $ —     
    

 

 

     

 

 

  

The following table details the amounts recognized in our accumulated other comprehensive income (loss) at December 31 related to postretirement benefits.

 

September 30, September 30,

(in thousands)

      2011      2010  

Accumulated other comprehensive income, beginning of year

      $ 201       $ 136   

Prior service cost arising during period

        (291 )       —     

Amortization of prior service cost

        16         —     

Net actuarial gain (loss) arising during period

        (609 )       65   
    

 

 

     

 

 

  

Accumulated other comprehensive income (loss), end of year

      $ (683 )     $ 201   
    

 

 

     

 

 

  

During 2012, we expect amortization of prior service cost from other comprehensive income (loss) and recognized as benefit cost to be consistent with 2011.

The benefits expected to be paid in each of the next five fiscal years, and in the aggregate for the five fiscal years thereafter, are as follows:

 

September 30,

(in thousands)

Year Beginning January 1

      Estimated Benefit
Payment		  

2012

      $ 228   

2013

        233   

2014

        239   

2015

        244   

2016

        245   

2017-2021

        1,273   
    

 

 

  

Total

      $ 2,462   
    

 

 

  

The estimated benefit payments are based on assumptions about future events. Actual benefit payments may vary significantly from these estimates.

A 1% increase or decrease in assumed health care cost trend rates has no significant effect on the interest cost component of net periodic postretirement benefit costs. A 1% increase or decrease in assumed health care cost trend rates would increase or decrease the accumulated postretirement benefit obligation by approximately $0.1 million.