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:

(In thousands)	2014			2013
Projected benefit obligation:
Balance, January 1	$	63,439		$	67,087
Service cost		3,003			3,452
Interest cost		3,037			2,819
Actuarial loss (gain)		13,349			(8,496	)
Benefits paid		(1,486	)		(1,423	)
Balance, December 31	$	81,342		$	63,439
Plan assets:
Fair value, January 1	$	70,627		$	61,384
Actual return		3,831			9,166
Employer contribution		—			1,500
Benefits paid		(1,486	)		(1,423	)
Fair value, December 31	$	72,972		$	70,627
Funded status:
Accrued pension asset (liability)	$	(8,370	)	$	7,188

The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2014, 2013 and 2012, the Plan's expected benefit cash flows were discounted using the Citibank Above Median Curve. Also, for 2014, 2013, and 2012, the RP-2014 Mortality Tables were used.

	2014		2013		2012
Weighted average discount rate	4.00	%	5.00	%	4.25	%
Rate of increase in compensation levels	(a)		3.75	%	3.75	%

(a)	6.0% graded down to 3.25% over the first seven years of service

The accumulated benefit obligation was $69,420,000 and $52,187,000 as of December 31, 2014 and 2013, respectively. The Company does not expect to make a contribution to the Plan in 2015. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan:

	Amount
2015	$	1,842,000
2016		2,065,000
2017		2,305,000
2018		2,649,000
2019		2,822,000
2020-2024		18,649,000

The Plan's pension cost included the following components:

	For the Year Ended
	December 31,
(In thousands)	2014			2013			2012
Service cost benefits earned during the year	$	3,003		$	3,452		$	2,799
Interest cost on projected benefit obligations		3,037			2,819			2,570
Expected return on plan assets		(4,711	)		(4,469	)		(3,967	)
Net amortization and deferral		244			1,729			1,473
Net periodic pension cost	$	1,573		$	3,531		$	2,875

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

	2014		2013		2012
Weighted average discount rate	5.00	%	4.25	%	4.75	%
Rate of increase in compensation levels	3.75	%	3.75	%	4.00	%
Expected long-term rate of return on assets	6.75	%	7.25	%	7.25	%

For 2014, 2013, and 2012, the RP-2000 Employees Mortality Table, RP-2000 Healthy Annuitant Mortality Table, and RP-2000 Disabled Mortality Table were used.

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% U.S. equity and 16% non-U.S. 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-U.S. stocks. The expected one-year nominal returns and annual standard deviations are shown by asset class below:

			One-Year Nominal		Annual Standard
Asset Class	% of Total Portfolio		Return		Deviation
Core Fixed Income	49	%	4.79	%	4.68	%
Large Cap U.S. Equities	9	%	7.67	%	16.65	%
Large Cap U.S. Growth Equities	9	%	8.42	%	19.20	%
Large Cap U.S. Value Equities	9	%	7.53	%	16.73	%
Small Cap U.S. Equities	8	%	8.70	%	20.53	%
International (Developed)	15	%	8.98	%	19.79	%
International (Emerging)	1	%	10.77	%	28.45	%

Applying appropriate correlation factors between each of the asset classes the long-term rate of return on assets is estimated to be 6.75%.

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

	Fair Value Measurements as of December 31,
	2014						2013
			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	$	268	$	268	$	—	$	245	$	245	$	—
Equity securities
U.S. Large Cap Growth		7,165		—		7,165		6,650		—		6,650
U.S. Large Cap Value		7,066		—		7,066		6,835		—		6,835
U.S. Small/Mid Cap Growth		2,950		—		2,950		2,825		—		2,825
U.S. Small/Mid Cap Value		2,721		—		2,721		2,784		—		2,784
Non-U. S. Core		10,317		—		10,317		10,840		—		10,840
U.S. Large Cap Passive		7,192		—		7,192		6,929		—		6,929
Emerging Markets		703		—		703		711		—		711
Fixed Income
U.S. Core		24,019		—		24,019		22,720		—		22,720
U.S. Passive		9,275		—		9,275		8,747		—		8,747
Opportunistic		1,296		—		1,296		1,341		—		1,341
Total	$	72,972	$	268	$	72,704	$	70,627	$	245	$	70,382

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)	2014			2013
Benefit obligation:
Balance, January 1	$	8,048		$	8,482
Service cost		136			144
Interest cost		377			335
Benefits paid		(236	)		(236	)
Actuarial (gain) loss		1,078			(677	)
Balance, December 31	$	9,403		$	8,048

The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2014, 2013 and 2012, the SERP's expected benefit cash flows were discounted using the Citigroup Above Median Curve.

	2014		2013		2012
Weighted average discount rate	3.75	%	4.75	%	4.00	%
Rate of increase in compensation levels	(a)		3.75	%	3.75	%

(a)	6.00% graded down to 3.25% over the first seven years of service.

The accumulated benefit obligation was $7,622,000 and $5,917,000 as of December 31, 2014 and 2013, respectively. Since this is an unfunded plan there are no plan assets. Benefits paid were $236,000 in 2014, $236,000 in 2013 and $236,000 in 2012. Expected future benefits payable by the Company over the next ten years are as follows:

	Amount
2015	$	236,000
2016		244,000
2017		258,000
2018		324,000
2019		323,000
2020-2024		2,852,000

The SERP's pension cost included the following components:

	For the Year Ended December 31,
(In thousands)	2014		2013		2012
Service cost – benefits earned during the year	$	136	$	144	$	115
Interest cost on projected benefit obligations		377		335		307
Net amortization and deferral		431		551		360
Net periodic pension cost	$	944	$	1,030	$	782

The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows:

	The Plan				SERP
(In thousands)	2014		2013		2014		2013
Prior service cost	$	—	$	8	$	—	$	—
Net actuarial loss		25,464		11,471		3,723		3,075
Total	$	25,464	$	11,479	$	3,723	$	3,075

The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2014 expected to be recognized as components of net periodic benefit cost in 2015 for the Plan are $0 and $1,606,000, respectively. The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2014 expected to be recognized as components of net periodic benefit cost in 2015 for the SERP are $0 and $654,000 respectively.

The Company also maintains a noncontributory profit sharing program, 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 2014, 2013 and 2012 was $5,298,000, $5,065,000, and $5,213,000, 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 2014, 2013 and 2012 were $584,000, $591,000, and $537,000, respectively.