XML 59 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Pension Plans
 6 Months Ended
Jun. 30, 2012
Pension Plans  
Pension Plans

 

Note 11 - Pension Plans

 

The Company sponsors two defined benefit pension plans - a qualified retirement plan (the "Pension Plan") which is generally available to all employees, and a Supplemental Executive Retirement Plan (the "SERP"), which is for the benefit of certain senior management executives of the Company.

 

The Company recorded pension expense totaling $619,000 and $832,000 for the three months ended June 30, 2012 and 2011, respectively, related to the Pension Plan and the SERP. The following table contains the components of the pension expense.

 

    For the Three Months Ended June 30,  
    2012     2011     2012     2011     2012 Total     2011 Total  
($ in thousands)   Pension Plan     Pension Plan     SERP     SERP     Both Plans     Both Plans  
Service cost - benefits earned during the period   $ 457       478       76       115       533       593  
Interest cost     363       432       70       102       433       534  
Expected return on plan assets     (492 )     (444 )     ─       ─       (492 )     (444 )
Amortization of transition obligation     1       1       ─       ─       1       1  
Amortization of net (gain)/loss     136       114       ─       26       136       140  
Amortization of prior service cost     3       3       5       5       8       8  
  Net periodic pension cost   $ 468       584       151       248       619       832  

 

The Company recorded pension expense totaling $1,658,000 and $1,664,000 for the six months ended June 30, 2012 and 2011, respectively, related to the Pension Plan and the SERP. The following table contains the components of the pension expense.

 

    For the Six Months Ended June 30,  
    2012     2011     2012     2011     2012 Total     2011 Total  
($ in thousands)   Pension Plan     Pension Plan     SERP     SERP     Both Plans     Both Plans  
Service cost - benefits earned during the period   $ 1,061       956       170       230       1,231       1,186  
Interest cost     799       864       157       204       956       1,068  
Expected return on plan assets     (984 )     (888 )     ─       ─       (984 )     (888 )
Amortization of transition obligation     2       2       ─       ─       2       2  
Amortization of net (gain)/loss     403       228       34       52       437       280  
Amortization of prior service cost     6       6       10       10       16       16  
  Net periodic pension cost   $ 1,287       1,168       371       496       1,658       1,664  

 

The Company's contributions to the Pension Plan are based on computations by independent actuarial consultants and are intended to provide the Company with the maximum deduction for income tax purposes. The contributions are invested to provide for benefits under the Pension Plan. The Company expects that it will contribute $2,500,000 to the Pension Plan in 2012.

 

The Company's funding policy with respect to the SERP is to fund the related benefits from the operating cash flow of the Company.