XML 40 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Deferred Compensation and Retirement Plans
 3 Months Ended
Jul. 31, 2012
Deferred Compensation and Retirement Plans

6. Deferred Compensation and Retirement Plans

The Company has several deferred compensation and retirement plans for eligible consultants and vice-presidents that provide defined benefits to participants based on the deferral of current compensation or contributions made by the Company subject to vesting and retirement or termination provisions.

The components of net periodic benefit costs are as follows:

 

     Three Months Ended
July  31,		  
     2012      2011  
     (in thousands)  

Interest cost

    $ 756       $ 884   

Amortization of actuarial loss

      594         355   
  

 

 

     

 

 

  

Net periodic benefit costs

    $ 1,350       $ 1,239   
  

 

 

     

 

 

  

The Company purchased COLI contracts insuring employees eligible to participate in the deferred compensation and pension plans as a means of funding benefits under such plans. The gross CSV of these contracts of $152.2 million and $151.1 million is offset by outstanding policy loans of $73.3 million in the accompanying consolidated balance sheets as of July 31, 2012 and April 30, 2011, respectively. The market value of the underlying COLI investments increased by $0.7 million and $0.9 million during the three months ended July 31, 2012 and 2011, respectively, and is recorded as a decrease in compensation and benefits expense in the accompanying consolidated statement of income.

The Company has an ECAP, which is intended to provide certain employees an opportunity to defer salary and/or bonus on a pre-tax basis or make an after-tax contribution. The Company made contributions to the ECAP during the three months ended July 31, 2012 and 2011, of $17.5 million and $12.3 million, respectively. The Company expects to contribute an additional $2.0 million in the remainder of fiscal 2013. Participants generally vest in Company contributions over a four year period. The ECAP is accounted for whereby the changes in the fair value of the vested amounts owed to the participants are adjusted with a corresponding charge (or credit) to compensation and benefits costs. During the three months ended July 31, 2012 and 2011, deferred compensation liability decreased; therefore, the Company recognized a reduction in compensation expense of $1.0 million and $1.3 million, respectively.