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Note D - Pension And Other Postretirement Benefits

6 Months Ended

Jun. 30, 2013

Pension and Other Postretirement Benefits Disclosure [Text Block]

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 available to all 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 continued increased lump-sum retirement payments, the Company recorded a GAAP-required $1.6 million non-cash pension settlement charge during the second quarter of 2013 relating to its defined benefit pension plan. The Company has recorded $3.0 million in non-cash pension settlement charges during the first six months of 2013. These required charges were driven by exceeding the actuarial payments threshold relating to retirees receiving lump-sum distributions during 2013.

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

	Pension Benefits						Postretirement Benefits
(Thousands of dollars)	Three Months Ended June 30,						Three Months Ended June 30,
	2013			2012			2013			2012
Service cost	$	811		$	797		$	289		$	289
Interest cost		697			701			181			217
Expected return on plan assets		(1,306	)		(1,147	)		-			-
Recognized actuarial loss (gain)		532			610			(180	)		(162	)
Settlement loss		1,601			-			-			-
Net periodic benefit cost	$	2,335		$	961		$	290		$	344

	Pension Benefits						Postretirement Benefits
(Thousands of dollars)	Six Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Service cost	$	1,660		$	1,594		$	577		$	578
Interest cost		1,363			1,402			363			435
Expected return on plan assets		(2,599	)		(2,295	)		-			-
Recognized actuarial loss (gain)		1,144			1,220			(361	)		(324	)
Settlement loss		2,987			-			-			-
Net periodic benefit cost	$	4,555		$	1,921		$	579		$	689