Note E - Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2015

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE E - 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, in eligible locations, participate in an enhanced 401(k) plan instead of the defined benefit pension plan. Employees hired prior to this date continue to accrue benefits. Additionally, the Company sponsors defined contribution pension plans made available to all domestic and 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.

During the second quarter of 2015 the Company recorded a non-cash settlement loss relating to retirees that received lump-sum distributions from the Company’s defined benefit pension plan totaling $1.5 million. This charge was the result of lump-sum payments to retirees which exceeded the plan’s actuarial service and interest cost threshold for 2015.

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

	Pension Benefits						Postretirement Benefits
	Three Months Ended June 30,						Three Months Ended June 30,
(Dollars in thousands)	2015			2014			2015			2014
Service cost	$	783		$	726		$	299		$	226
Interest cost		659			728			199			212
Expected return on plan assets		(1,067	)		(1,170	)		-			-
Recognized actuarial loss (gain)		537			457			(164	)		(380	)
Settlement loss		1,452			-			-			-
Net periodic benefit cost	$	2,364		$	741		$	334		$	58

	Pension Benefits						Postretirement Benefits
	Six Months Ended June 30,						Six Months Ended June 30,
(Dollars in thousands)	2015			2014			2015			2014
Service cost	$	1,567		$	1,452		$	598		$	453
Interest cost		1,318			1,448			397			424
Expected return on plan assets		(2,134	)		(2,378	)		-			-
Recognized actuarial loss (gain)		1,074			915			(327	)		(577	)
Settlement loss		1,452			-			-			-
Net periodic benefit cost	$	3,277		$	1,437		$	668		$	300