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Note D - Pension And Other Postretirement Benefits
 3 Months Ended
Mar. 31, 2013
Pension and Other Postretirement Benefits Disclosure [Text Block]
NOTE D - PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company sponsors a defined benefit pension plan (“Plan”) covering certain domestic employees.  Benefits are based on each covered employee’s years of service and compensation. The Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The Plan was closed to new participants effective January 1, 2008. Employees hired after this date participate in an enhanced 401(k) plan instead of the defined benefit pension plan.

Additionally, the Company sponsors defined contribution pension plans covering certain domestic employees and all Canadian employees.

The Company also sponsors a non-contributory defined benefit health care plan that provides health benefits to certain domestic and Canadian retirees and their spouses. The Company funds the cost of these benefits as incurred.

Due to increased retirement payments and additional announced retirements during the first quarter 2013, the Company recorded a GAAP-required $1.4 million non-cash pension settlement charge relating to its defined benefit pension plan which negatively impacted margins and earnings as detailed below.  This required charge is driven by our expectation that the actuarial payments threshold relating to retirees receiving lump-sum distributions will be exceeded during 2013.

The following tables present the components of net periodic benefit cost:

   
Pension Benefits
   
Postretirement Benefits
 
(Thousands of dollars)
 
Three Months Ended
March 31,
   
Three Months Ended
March 31,
 
   
2013
   
2012
   
2013
   
2012
 
Service cost
  $ 849     $ 797     $ 288     $ 289  
Interest cost
    666       701       182       218  
Expected return on plan assets
    (1,293 )     (1,148 )     -       -  
Recognized actuarial loss (gain)
    612       610       (181 )     (162 )
Settlement loss
    1,386       -       -       -  
Net periodic benefit cost
  $ 2,220     $ 960     $ 289     $ 345