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Defined Pension Plans
 12 Months Ended
Dec. 31, 2011
Compensation and Retirement Disclosure [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block]

Note 10
Employee Benefit Plans

Defined Benefit Plan
The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers most of its employees. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the plan over a period of approximately 30 years.

A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:

December 31,
(In thousands) 2011 2010
Projected benefit obligation:
       Balance, January 1 $ 43,337 $      36,588
       Service cost 2,073 1,771
       Interest cost 2,423 2,290
       Actuarial loss 7,357 3,853
       Benefits paid (1,218 ) (1,165 )
Balance, December 31 $ 53,972 $ 43,337
Plan assets:
       Fair value, January 1 $ 45,427 $ 33,362
       Actual return 686 3,880
       Employer contribution 9,000 9,350
       Benefits paid   (1,218 ) (1,165 )
Fair value, December 31 $ 53,895   $ 45,427
Funded status:      
Accrued pension asset (liability)       $      (77 )       $ 2,090
 

The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2011, 2010 and 2009 the Plan’s expected benefit cash flows were discounted using the Citibank Above Median Curve.

2011 2010 2009
Weighted average discount rate 4.75%       5.75%   6.25%
Rate of increase in compensation levels 4.00% 4.00%       4.00%
 

The accumulated benefit obligation was $43,421,000 and $34,881,000 as of December 31, 2011 and 2010, respectively. The Company expects to contribute approximately $3,000,000 to the Plan in 2012. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan:

Amount
2012 1,315,000
2013 1,359,000
2014 1,512,000
2015 1,640,000
2016 1,855,000
2017-2021 13,025,000
 
The Plan’s pension cost included the following components:
 
For the Year Ended
December 31,
(In thousands) 2011 2010 2009
Service cost – benefits earned during the year $ 2,073 $      1,771 $      1,606
Interest cost on projected benefit obligations   2,423 2,290 2,080
Expected return on plan assets   (3,314 ) (2,440 )   (1,880 )
Net amortization and deferral 603     616   873  
Net periodic pension cost       $      1,785       $ 2,237       $ 2,679
 

The following represent the major assumptions used to determine the net pension cost of the Plan:

2011   2010 2009
Weighted average discount rate 5.75% 6.25% 6.50%
Rate of increase in compensation levels 4.00% 4.00%   4.00%
Expected long-term rate of return on assets 7.25%       7.25%       7.25%
 

The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 50% fixed income, 34% US equity and 16% Non-US equity. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity components are invested in pooled large cap, small/mid cap and Non-US stocks. The assumed long-term rate of return on assets, which falls within the expected range, is 7.25% as derived below:

Expected Long-Term
Asset Class Return on Class       X       Allocation       =       Assumption
Fixed Income 4 – 6% 50%   2.0 – 3.0%
US Equity 5 – 9% 34% 1.7 – 3.1%
Non-US Equity 5 – 10%   16%   0.8 – 1.6%
4.5 – 7.7%
 

A summary of the fair value measurements by type of asset is as follows:

Fair Value Measurements as of December 31
2011 2010
Quoted Prices Quoted Prices
in Active in Active
Markets for Significant Markets for Significant
Identical Observable Identical Observable
Assets Inputs Assets Inputs
(In thousands) Total (Level 1) (Level 2) Total (Level 1) (Level 2)
Cash $ 219 $ 219 $ — $ 203 $ 203 $ —
Equity securities  
       U. S. Large Cap Growth 4,497 — 4,497 3,844 — 3,844
       U. S. Large Cap Value 4,586 — 4,586 3,853 — 3,853
       U. S. Small/Mid Cap Growth 1,856 — 1,856 1,594 — 1,594
       U. S. Small/Mid Cap Value 1,888 — 1,888 1,597 — 1,597
       Non-U. S. Core 8,470 — 8,470 7,236 — 7,236
       U. S. Large Cap Passive 5,387     — 5,387   4,542   — 4,542
Fixed Income  
       U. S. Core Opportunistic 19,410 —   19,410 16,227   —     16,227
       U. S. Passive 7,582 —   7,582 6,331 — 6,331
              Total     $      53,895     $      219     $      53,676     $      45,427     $      203     $      45,224
 

Supplemental Executive Retirement Plan
The Company also has an unfunded supplemental executive retirement plan (“SERP”) which covers key executives of the Company. The SERP is a noncontributory plan in which the Company’s subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as the Plan.

A summary of the activity in the SERP’s projected benefit obligation, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:
 
December 31,
(In thousands)       2011       2010
Benefit obligation:
       Balance, January 1 $      5,479 $      5,369
       Service cost 89 78
       Interest cost 295 315
       Benefits paid (236 ) (235 )
       Actuarial loss (gain) 1,807 (48 )
Balance, December 31 $ 7,434 $ 5,479
 

The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2011, 2010 and 2009, the SERP’s expected benefit cash flows were discounted using the Citigroup Above Median Curve.

      2011       2010       2009
Weighted average discount rate   4.50 %   5.50 %   6.00 %
Rate of increase in compensation levels 4.00 % 4.00 % 4.00 %
 

The accumulated benefit obligation was $5,109,000 and $4,136,000 as of December 31, 2011 and 2010, respectively. Since this is an unfunded plan there are no plan assets. Benefits paid were $236,000 in 2011, $235,000 in 2010 and $317,000 in 2009. Expected future benefits payable by the Company over the next 10 years are as follows:

      Amount
2012 236,000
2013 235,000
2014 234,000
2015 233,000
2016 245,000
2017-2021 1,714,000
 

The SERP’s pension cost included the following components:

For the Year Ended December 31,
(In thousands)       2011       2010       2009
Service cost – benefits earned during the year $      89 $      78 $      33
Interest cost on projected benefit obligations 295 315 278
Net amortization and deferral 250 258 130
Net periodic pension cost $ 634 $ 651 $ 441
 

The pre-tax amounts in accumulated other comprehensive loss as of December 31, were as follows:

The Plan SERP
(In thousands)       2011       2010       2011       2010
Prior service cost $      24 $      33 $      — $      50
Net actuarial loss 21,376 11,985 3,802 2,194
      Total $ 21,400 $ 12,018 $ 3,802 $ 2,244
 

The estimated pre-tax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2011 expected to be recognized as components of net periodic benefit cost in 2012 for the Plan are $8,000 and $1,387,000, respectively. The estimated pre-tax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2011, expected to be recognized as components of net periodic benefit cost in 2012 for SERP are $0 and $421,000 respectively.

The Company also maintains a noncontributory profit sharing plan, which covers most of its employees. Employer contributions are calculated based upon formulas which relate to current operating results and other factors. Profit sharing expense recognized in the consolidated statements of income in 2011, 2010 and 2009 was $5,270,000, $4,665,000, and $3,668,000, respectively.

The Company also sponsors a defined contribution 401(k) plan to provide additional retirement benefits to substantially all employees. Contributions under the 401(k) plan for 2011, 2010 and 2009 were $497,000, $450,000 and $470,000, respectively.