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Pension Plans and Other Postretirement Benefits
 6 Months Ended
Jun. 30, 2012
Pension Plans and Other Postretirement Benefits [Abstract]  
Pension Plans and Other Postretirement Benefits

Note 5 - Pension Plans and Other Postretirement Benefits

The Company has the following retirement plans: a defined contribution plan; a 401(k) plan; a defined benefit plan for employees hired on or before December 31, 1998; and certain employees participate in a supplemental defined contribution plan or a supplemental defined benefit plan or both.

Defined Benefit Plan and Supplemental Defined Benefit Plans

The following tables summarize the components of net periodic pension cost recognized for the defined benefit plan and the supplemental defined benefit plans for the three and six months ended June 30, 2012 and 2011.

 

                                 
    Defined Benefit Plan  
    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2012     2011     2012     2011  

Components of net periodic pension (income) expense:

                                

Service cost:

                                

Benefit accrual

   $ —       $ —       $ —       $ —    

Other expenses

     90       57       180       125  

Interest cost

     357       388       714       844  

Expected return on plan assets

     (606 )      (556 )      (1,212 )      (1,210 ) 

Settlement loss

     459       —         918       —    

Amortization of:

                                

Prior service cost

     —         —         —         —    

Actuarial loss

     513       408       1,026       888  
   

 

 

    

 

 

    

 

 

    

 

 

  

Net periodic pension expense

   $     813     $     297     $     1,626     $     647  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

                                 
    Supplemental Defined Benefit Plans  
    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2012     2011     2012     2011  

Components of net periodic pension (income) expense:

                                

Service cost:

                                

Benefit accrual

   $ —       $ —       $ —       $ —    

Other expenses

     —         —         —         —    

Interest cost

     167       208       335       397  

Expected return on plan assets

     —         —         —         —    

Settlement loss

     —         —         —         —    

Amortization of:

                                

Prior service cost

     31       33       62       63  

Actuarial loss

     245       173       490       329  
   

 

 

    

 

 

    

 

 

    

 

 

  

Net periodic pension expense

   $     443     $     414     $       887     $       789  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

Postretirement Benefits Other Than Pensions

In addition to providing pension benefits, the Company also provides certain health care and life insurance benefits to eligible employees. Effective January 1, 2007, the Company eliminated the previous group health insurance benefits for retirees 65 years of age and over, including elimination of pharmacy benefits for Medicare eligible retirees, and established a Health Reimbursement Account (“HRA”) for each eligible participant. Funding of HRA accounts was $88 and $116 for the six months ended June 30, 2012 and 2011, respectively.

The following table summarizes the components of the net periodic benefit for postretirement benefits other than pensions for the three and six months ended June 30, 2012 and 2011.

 

                                 
    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2012     2011     2012     2011  

Components of net periodic benefit:

                                

Service cost

   $ —       $ —       $ —       $ —    

Interest cost

     23       35       46       59  

Amortization of prior service cost

     —         —         —         —    

Amortization of prior gains

     (130 )      (161 )      (261 )      (275 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Net periodic benefit

   $ (107 )    $ (126 )    $ (215 )    $ (216 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

2012 Contributions

In 2012, there is a minimum funding requirement for the Company’s defined benefit plan. The following table discloses that minimum funding requirement, contributions made and expected full year contributions for the Company’s plans.

 

                         
    Defined Benefit Pension Plans     Other
Postretirement
Benefits		  
    Defined
Benefit
Plan		     Supplemental
Defined Benefit
Plans		    
       

Minimum funding requirement for 2012

   $ 1,000       N/A       N/A  

Contributions made in the six months ended June 30, 2012

     373     $ 657     $ 270  

Expected contributions (approximations) for the year ended December 31, 2012 as of the time of :

                        

This Form 10-Q (1)

     2,300       1,300       519  

2011 Form 10-K (2)

     2,300       1,300       519  

 

N/A - Not applicable.
(1) HMEC’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012.
(2) HMEC’s Annual Report on Form 10-K for the year ended December 31, 2011, specifically “Notes to Consolidated Financial Statements — Note 9 — Pension Plans and Other Postretirement Benefits”.