XML 74 R22.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Pension and Employee Benefit Plans | 12 Months Ended
--- | ---
Dec. 31, 2012
Pension and Employee Benefit Plans [Abstract] |
Pension and Employee Benefit Plans | 12. Pension and Employee Benefit Plans We sponsor a non-contributory defined benefit pension plan for certain union employees. The plan is funded in accordance with the funding requirements of the Employee Retirement Income Security Act of 1974. We also sponsor a postretirement health care plan for office employees retired before January 1, 1990. The plan allows retirees who have attained the age of 65 to elect the type of coverage desired. The following tables set forth the plans’ changes in benefit obligations, plan assets and funded status on the measurement dates, December 31, 2012 and 2011, and amounts recognized in our consolidated balance sheets as of those dates.
|  | Pension Benefits |  |  | Other Benefits |
$ in thousands |  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Change in projected benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year |  | $ | 7,886 |  |  | $ | 7,157 |  |  |  | n/a |  |  |  | n/a |
Accumulated post retirement benefit obligation |  |  | n/a |  |  |  | n/a |  |  | $ | 146 |  |  | $ | 156 |
Service cost |  |  | 58 |  |  |  | 41 |  |  |  | — |  |  |  | — |
Interest cost |  |  | 328 |  |  |  | 367 |  |  |  | 6 |  |  |  | 7 |
Actuarial (gain)/loss |  |  | 629 |  |  |  | 631 |  |  |  | (43 | ) |  |  | 12 |
Benefits paid |  |  | (366 | ) |  |  | (310 | ) |  |  | (20 | ) |  |  | (29 | )
Projected benefit obligation at end of year |  |  | 8,535 |  |  |  | 7,886 |  |  |  | 89 |  |  |  | 146 |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  |  | 5,020 |  |  |  | 5,144 |  |  |  | — |  |  |  | — |
Actual return (loss) on plan assets |  |  | 603 |  |  |  | (212 | ) |  |  | — |  |  |  | — |
Employer contribution |  |  | 292 |  |  |  | 398 |  |  |  | 20 |  |  |  | 29 |
Benefits paid |  |  | (366 | ) |  |  | (310 | ) |  |  | (20 | ) |  |  | (29 | )
Fair value of plan assets at end of year |  |  | 5,549 |  |  |  | 5,020 |  |  |  | — |  |  |  | — |
Funded status |  | $ | (2,986 | ) |  | $ | (2,866 | ) |  | $ | (89 | ) |  | $ | (146 | )
Defined benefit liabilities included in accounts payable and accrued expenses |  | $ | — |  |  | $ | — |  |  | $ | (15 | ) |  | $ | (25 | )
Defined benefit liabilities included in other liabilities |  |  | (2,986 | ) |  |  | (2,866 | ) |  |  | (74 | ) |  |  | (121 | )
Deferred tax benefit/ (expense) associated with AOCL |  |  | 1,505 |  |  |  | 1,476 |  |  |  | (45 | ) |  |  | (31 | )
AOCL, net of tax |  |  | 2,257 |  |  |  | 2,215 |  |  |  | (67 | ) |  |  | (46 | )
Net amount recognized |  | $ | 776 |  |  | $ | 825 |  |  | $ | (201 | ) |  | $ | (223 | )
Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss (gain) |  | $ | 404 |  |  | $ | 1,231 |  |  | $ | (43 | ) |  | $ | 12 |
Amortization of prior service cost |  |  | (1 | ) |  |  | (1 | ) |  |  | — |  |  |  | — |
Amortization of net actuarial loss |  |  | (332 | ) |  |  | (251 | ) |  |  | 8 |  |  |  | 10 |
Total recognized in other comprehensive income |  | $ | 71 |  |  | $ | 979 |  |  | $ | (35 | ) |  | $ | 22 |
Accumulated other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net loss (gain) |  | $ | 3,756 |  |  | $ | 3,685 |  |  | $ | (112 | ) |  | $ | (77 | )
Prior service cost |  |  | 5 |  |  |  | 6 |  |  |  | — |  |  |  | — |
Amount recognized in accumulated other comprehensive income (loss) |  | $ | 3,761 |  |  | $ | 3,691 |  |  | $ | (112 | ) |  | $ | (77 | )
Weighted-average assumptions used to determine benefit obligations for the year ended December 31: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  |  | 3.75 | % |  |  | 4.25 | % |  |  | 3.75 | % |  |  | 4.25 | %
Compensation increase rate |  |  | N/A |  |  |  | N/A |  |  |  | N/A |  |  |  | N/A |
Benefits under the plans are not based on wages and, therefore, future wage adjustments have no effect on the projected benefit obligations. Included in other comprehensive income for our defined benefit plans, net of related tax effect, were an increase in the minimum liability of $21,000 in 2012 and an increase of $601,000 in 2011. The details of net periodic benefit cost for pension benefits included in the accompanying Consolidated Statements of Income for the years ended December 31, 2012 and 2011 are as follows:
$ in thousands |  | 2012 |  |  | 2011 |
Service cost |  | $ | 58 |  |  | $ | 41 |
Interest cost |  |  | 328 |  |  |  | 367 |
Expected return on plan assets |  |  | (377 | ) |  |  | (388 | )
Net amortization and deferral |  |  | 333 |  |  |  | 252 |
Net periodic benefit cost |  | $ | 342 |  |  | $ | 272 |
Weighted-average assumptions used to determine net periodic benefit costs for the years ended December 31: |  |  |  |  |  |  |  |
Discount rate |  |  | 4.25 | % |  |  | 5.25 | %
Expected return on assets |  |  | 7.50 | % |  |  | 7.50 | %
Compensation increase rate |  |  | N/A |  |  |  | N/A |
The basis of the long-term rate of return assumption reflects the current asset mix for the pension plan of approximately 30% debt securities and 70% equity securities with assumed average annual returns of approximately 4% to 6% for debt securities and 8% for equity securities. The investment portfolio for the pension plan will be adjusted periodically to maintain the current ratios of debt securities and equity securities. Additional consideration is given to the historical returns for the pension plan as well as future long range projections of investment returns for each asset category. The net loss and prior service cost for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2013 are $370,000 and $1,000, respectively. The net gain for the healthcare plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2013 is $(14,000). The net periodic benefit cost (representing interest cost and amortization of net actuarial loss only) for the healthcare plan included in the accompanying consolidated statements of income was $(3,000) for each of the years ended December 31, 2012 and 2011. The weighted average discount rate to determine the net periodic benefit cost for 2012 and 2011 was 4.25% and 5.25%, respectively. Changes in health care costs have no effect on the plan as future increases are assumed by the retirees. Pension plan assets are invested in trusts comprised primarily of investments in various debt and equity funds. A fiduciary committee establishes the target asset mix and monitors asset performance. The expected rate of return on assets includes the determination of a real rate of return for equity and fixed income investment applied to the portfolio based on their relative weighting, increased by an underlying inflation rate. Our defined benefit pension plan asset allocation by asset category is as follows:
|  | Target Allocation 2013 |  |  | Percentage of Plan Assets |
|  |  | 2012 |  |  | 2011 |
Asset Category: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  | 70 | % |  |  | 69 | % |  |  | 61 | %
Debt securities |  |  | 30 | % |  |  | 31 | % |  |  | 39 | %
Total |  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
Estimated pension plan cash obligations are $388,000, $409,000, $413,000, $425,000, and $440,000 for 2013 – 2017, respectively, and a total of $2,521,000 for the years 2018 through 2022. Estimated healthcare plan cash obligations are $15,000, $14,000, $12,000, $11,000, and $10,000 for 2013–2017, respectively, and a total of $30,000 for the years 2018 through 2022. Fair Value Measurements of Pension Plan Assets Following is a description of the valuation methodologies used for pension assets measured at fair value:
| • |  | Cash and cash equivalents: Cash and cash equivalents consist of cash on deposit in a money market fund. Cash and cash equivalents are stated at cost, which approximates fair value.
| • |  | U.S. government and agency securities: Valued at closing price reported in the active market in which the individual security is traded.
| • |  | Corporate bonds and notes: Valued using market inputs including benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. Inputs may be prioritized differently at certain times based on market conditions.
| • |  | Mutual funds: Valued at the net asset value (NAV) of shares held by the plans at year end. The NAV is calculated based on the underlying shares and investments held by the fund.
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the fair value of assets and liabilities and their placement within the fair value hierarchy levels. The levels assigned to the defined benefit plan assets as of December 31, 2012, are summarized in the tables below:
$ in thousands |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Pension assets, at fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash in money market fund |  | $ | 156 |  |  | $ | — |  |  | $ | — |  |  | $ | 156 |
U.S. government and agency securities |  |  | 169 |  |  |  | — |  |  |  | — |  |  |  | 169 |
Mutual funds |  |  | 5,224 |  |  |  | — |  |  |  | — |  |  |  | 5,224 |
Total assets |  | $ | 5,549 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,549 |
The levels assigned to the defined benefit plan assets as of December 31, 2011, are summarized in the tables below:
$ in thousands |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Pension assets, at fair value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash in money market fund |  | $ | 323 |  |  | $ | — |  |  | $ | — |  |  | $ | 323 |
U.S. government and agency securities |  |  | 172 |  |  |  | — |  |  |  | — |  |  |  | 172 |
Corporate bonds and notes |  |  | — |  |  |  | 348 |  |  |  | — |  |  |  | 348 |
Mutual funds |  |  | 4,177 |  |  |  | — |  |  |  | — |  |  |  | 4,177 |
Total assets |  | $ | 4,672 |  |  | $ | 348 |  |  | $ | — |  |  | $ | 5,020 |
The Company contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:
| • |  | Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.
| • |  | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
| • |  | If the Company chooses to stop participating in some of its multiemployer plans, CECO may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
The Company participation in these plans for the annual period ended December 31, 2012, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employee Identification Number and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2012 and 2011 is for the plan’s year-end at December 31, 2011, and December 31, 2010, respectively. The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject.
Pension Fund |  | EIN/Pension Plan Number |  |  | Pension Protection Act Zone Status 2012 |  | FIF/RP Status Pending/ Implemented |  | Surcharge Imposed |  |  | Expiration of Collective Bargaining Agreement
Sheet Metal Workers’ National Pension Fund |  |  | 52-6112463/001 |  |  | Red |  | FIF: did not disclose |  |  | No |  |  | various
|  |  | RP: Yes - Implemented |  |
Sheet Metal Workers Local 224 Pension Plan |  |  | 31-6171353/001 |  |  | Red |  | FIF: Yes - Implemented |  |  | No |  |  | May 31, 2013
|  |  | RP: Yes - Implemented |  |
Sheet Metal Workers Local No. 20, Indianapolis Area Pension fund |  |  | 51-0168516/001 |  |  | Green |  | Is not subject |  |  | No |  |  | May 31, 2014
Sheet Metal Workers Local No. 177 Pension Fund |  |  | 62-6093256/001 |  |  | Green |  | Is not subject |  |  | No |  |  | not available
The Company was not listed in any of the plans’ Forms 5500 as providing more than 5 percent of the total contributions for the plans and plan years. At the date the financial statements were issued, Forms 5500 were not available for the plan years ended December 31, 2012. We have no current intention of withdrawing from any plan and, therefore, no liability has been provided in the accompanying consolidated financial statements. Amounts charged to pension expense under the above plans including the multi-employer plans totaled $1.8 million and $1.3 million for 2012 and 2011, respectively. We have a profit sharing and 401(k) savings retirement plan for non-union employees of certain of our subsidiaries. The plan covers substantially all employees who have 6 months of service, completed 1,000 hours of service and who have attained 18 years of age. The plan allows us to make discretionary contributions and provides for employee salary deferrals of up to 100%. We increased, effective January 1, 2008, the matching contributions to 100% of the first 1% and 50% of the next 5% of the employee deferral for a maximum match of 3.5%. We made aggregate matching contributions and discretionary contributions of $402,000 and $381,000 during 2012 and 2011, respectively.

X
- Details
Name: | us-gaap_DefinedBenefitPensionPlansAndDefinedBenefitPostretirementPlansDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number FAS88 -Paragraph 63 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 518 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7, 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 8 -Subparagraph m -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 264 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 30 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-2 -Paragraph 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph h -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph q -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration