v2.3.0.15
FUTURE EMPLOYEE BENEFITS
9 Months Ended
Sep. 30, 2011
FUTURE EMPLOYEE BENEFITS 
FUTURE EMPLOYEE BENEFITS

Note 15—FUTURE EMPLOYEE BENEFITS

        Defined Benefit Pension Plan—In accordance with the terms of the purchase agreement associated with the acquisition of the Moab assets in 2000 (the "Moab Purchase Agreement"), the Moab subsidiary established the Moab Salt, L.L.C. Employees' Pension Plan ("Pension Plan"), a defined benefit pension plan. Pursuant to the terms of the Moab Purchase Agreement, employees transferring from the seller were granted credit under the Pension Plan for their prior service and for the benefits they had accrued under the seller's pension plan. Approximately $1.5 million was transferred from the seller's pension plan to the Pension Plan to accommodate the recognition of such prior service and benefits. In February 2002, the Pension Plan was "frozen" by limiting participation in the Pension Plan solely to employees hired before February 22, 2002, and by including only pay and service through February 22, 2002, in the calculation of benefits. The Pension Plan is required to be maintained for the existing participants and for the benefits they had accrued as of that date. Intrepid expects to contribute $156,000 to the Pension Plan in 2011, $114,950 of which has been paid through September 30, 2011.

        The components of the net periodic pension expense are set forth below (in thousands):

 
   Three months ended   Nine months ended  
 
   September 30, 2011   September 30, 2010   September 30, 2011   September 30, 2010  

Components of net periodic benefit cost:

                          
 

Service cost

   $ —   $ —   $ —   $ —  
 

Interest cost

     49     50     147     151  
 

Expected return on assets

     (49 )   (42 )   (147 )   (126 )
 

Amortization of transition obligation/(asset)

     —     —     —     —  
 

Amortization of prior service cost

     —     —     —     —  
 

Amortization of actuarial loss

     25     21     75     63  
                   

Net periodic benefit cost

   $ 25   $ 29   $ 75   $ 88  
                   

        In October 2011, Intrepid adopted resolutions to terminate the Pension Plan effective December 31, 2011. Prior to Intrepid's Pension Plan liability being terminated, certain regulatory approvals, plan amendments and participant settlement elections need to be obtained. Any plan liabilities in excess of plan assets will be fully funded by Intrepid prior to termination.