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Pension Plans
 12 Months Ended
Dec. 31, 2011
Pension Plans [Abstract]  
Pension Plans

Note C—Pension Plans

PLP-USA hourly employees of the Company who meet specific requirements as to age and service are covered by a defined benefit pension plan. The Company uses a December 31 measurement date for its plan.

Net periodic pension cost for PLP-USA’s pension plan consists of the following components for the years ended December 31:

 

      September 30,       September 30,       September 30,  
     2011     2010     2009  
       

Service cost

   $ 1,003     $ 813     $ 908  

Interest cost

     1,373       1,195       1,195  

Expected return on plan assets

     (1,089 )      (960 )      (759 ) 

Recognized net actuarial loss

     412       280       562  
   

 

 

    

 

 

    

 

 

  

Net periodic pension cost

   $ 1,699     $ 1,328     $ 1,906  
   

 

 

    

 

 

    

 

 

  

The following tables set forth benefit obligations, plan assets and the accrued benefit cost of PLP-USA’s pension plan at December 31:

 

      September 30,       September 30,  
     2011     2010  
     

Projected benefit obligation at beginning of the year

   $ 23,665     $ 21,718  

Service cost

     1,003       813  

Interest cost

     1,373       1,195  

Actuarial (gain) loss

     5,364       415  

Benefits paid

     (542 )      (476 ) 
   

 

 

    

 

 

  

Projected benefit obligation at end of year

   $ 30,863     $ 23,665  
   

 

 

    

 

 

  
     

Fair value of plan assets at beginning of the year

   $ 14,192     $ 13,040  

Actual return on plan assets

     297       1,628  

Employer contributions

     1,130       —    

Benefits paid

     (542 )      (476 ) 
   

 

 

    

 

 

  

Fair value of plan assets at end of the year

   $ 15,077     $ 14,192  
   

 

 

    

 

 

  
     

Unfunded pension obligation

   $ (15,786 )    $ (9,473 ) 
   

 

 

    

 

 

  

In accordance with ASC 715-20, the Company recognizes the underfunded status of its PLP-USA pension plan as a liability. The amount recognized in accumulated other comprehensive loss related to PLP-USA’s pension plan at December 31 is comprised of the following:

 

      September 30,       September 30,  
     2011     2010  

Balance at January 1

   $ (4,431 )    $ (4,762 ) 
     

Reclassification adjustments:

                

Pretax amortized net actuarial loss

     412       280  

Tax provision

     (156 )      (106 ) 
   

 

 

    

 

 

  
      256       174  
   

 

 

    

 

 

  
     

Adjustment to recognize (loss) gain on unfunded pension obligations:

                

Pretax (loss) gain

     (6,156 )      253  

Tax provision (benefit)

     2,331       (96 ) 
   

 

 

    

 

 

  
      (3,825 )      157  
   

 

 

    

 

 

  

Balance at December 31

   $ (8,000 )    $ (4,431 ) 
   

 

 

    

 

 

  

The estimated net loss for the PLP-USA pension plan that will be amortized from accumulated other comprehensive income into periodic benefit cost for 2012 is $.7 million. There is no prior service cost to be amortized in the future.

The PLP-USA pension plan had accumulated benefit obligations in excess of plan assets as follows:

 

      September 30,       September 30,  
     2011     2010  
     

Accumulated benefit obligation

   $ 26,302     $ 19,915  

Fair market value of assets

     15,077       14,192  

Weighted-average assumptions used to determine benefit obligations at December 31 are as follows:

 

      September 30,       September 30,  
     2011     2010  

Discount rate

     4.50 %      5.60 % 

Rate of compensation increase

     2.50       3.50  

Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31 are as follows:

 

      September 30,       September 30,       September 30,  
     2011     2010     2009  

Discount rate

     5.60 %      6.00 %      5.75 % 

Rate of compensation increase

     3.50       3.50       3.50  

Expected long-term return on plan assets

     8.00       8.00       8.00  

The net periodic pension cost for 2011 was based on a long-term asset rate of return of 8.0%. This rate is based upon management’s estimate of future long-term rates of return on similar assets and is consistent with historical returns on such assets. Using the plan’s current mix of assets and based on the average historical returns for such mix, an expected long-term rate-of-return of 8.0% is justified.

At December 31, 2011, the fair value of the Company’s pension plan assets included inputs in Level 1: Quoted market prices in active markets for identical assets or liabilities, and Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. The fair value of the Company’s pension plan assets as of December 31, 2011 and 2010, by category, are as follows:

 

      September 30,       September 30,       September 30,       September 30,  
    At December 31, 2011  
     Total Assets at Fair
Value		     Quoted Prices in
Active Markets
for Identical
Assets (Level 1)		     Significant
Observable Inputs
(Level 2)		     Significant
Unobservable
Inputs (Level 3)		  

Asset Category

                                

Cash

   $ 304     $ 304     $ —       $ —    

Equity Securities

     5,445       5,445       —         —    

U.S. Treasury Bonds

     1,880       1,880                  

Agency Bonds

     905       905                  

Etf-Equity

     458       458       —         —    

Mutual Funds—Equity

     3,226       3,226       —         —    

Corporate Bonds

     2,827       —         2,827       —    

Mortgage-Backed Securities

     32       —         32       —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 15,077     $ 12,218     $ 2,859     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

 

      September 30,       September 30,       September 30,       September 30,  
    At December 31, 2010  
     Total Assets at Fair
Value		     Quoted Prices in
Active Markets
for Identical
Assets (Level 1)		     Significant
Observable Inputs
(Level 2)		     Significant
Unobservable
Inputs (Level 3)		  

Asset Category

                                

Cash

   $ 374     $ 374     $ —       $ —    

Equity Securities

     5,060       5,060       —         —    

U.S. Treasury Securities

     2,535       2,535       —         —    

Mutual Funds

     3,446       3,446       —         —    

Corporate Bonds

     2,726       —         2,726       —    

Mortgage-Backed Securities

     51       —         51       —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 14,192     $ 11,415     $ 2,777     $ —    
   

 

 

    

 

 

    

 

 

    

 

 

  

The Company’s pension plan weighted-average asset allocations at December 31, 2011 and 2010, by asset category, are as follows:

 

      September 30,       September 30,  
    Plan assets
at December 31		  
     2011     2010  

Asset category

                

Equity securities

     61 %      60 % 

Debt securities

     37       37  

Cash and equivalents

     2       3  
   

 

 

    

 

 

  
      100 %      100 % 
   

 

 

    

 

 

  

Management seeks to maximize the long-term total return of financial assets consistent with the fiduciary standards of ERISA. The ability to achieve these returns is dependent upon the need to accept moderate risk to achieve long-term capital appreciation.

In recognition of the expected returns and volatility from financial assets, retirement plan assets are invested in the following ranges with the target allocation noted:

 

      September 30,       September 30,  
     Range     Target  

Equities

     30-80 %      60 % 

Fixed Income

     20-70 %      40 % 

Cash Equivalents

     0-10 %         

Investment in these markets is projected to provide performance consistent with expected long-term returns with appropriate diversification.

The Company’s policy is to fund amounts deductible for federal income tax purposes. The Company expects to contribute $2.2 million to its pension plan in 2012.

The benefits expected to be paid out of the plan assets in each of the next five years and the aggregate benefits expected to be paid for the subsequent five years are as follows:

 

      September 30,  

Year

   Pension Benefits  
   

2012

   $ 586,567  

2013

     669,868  

2014

     740,561  

2015

     809,830  

2016

     906,945  

2017-2021

     6,239,015  

The Company also provides retirement benefits through various defined contribution plans including PLP-USA’s Profit Sharing Plan. Expense for these defined contribution plans was $4.8 million in 2011, $4.6 million in 2010 and $3.7 million in 2009.

Further, the Company also provides retirement benefits through the Supplemental Profit Sharing Plan. To the extent an employee’s award under PLP-USA’s Profit Sharing Plan exceeds the maximum allowable contribution permitted under existing tax laws, the excess is accrued for (but not funded) under a non-qualified Supplemental Profit Sharing Plan. The return under this Supplemental Profit Sharing Plan is calculated at a weighted average of the one year Treasury Bill rate plus 1%. At December 31, 2011 and 2010, the interest rate for the Supplemental Profit Sharing Plan was 1.29% and 1.47%, respectively. Expense for the Supplemental Profit Sharing Plan was $.3 million for 2011, $.3 million for 2010 and $.3 million for 2009. The Supplemental Profit Sharing Plan unfunded status as of December 31, 2011 and 2010 was $2.2 million and $1.9 million and is included in Other noncurrent liabilities.