8. EMPLOYEE BENEFIT PLANS

The Company had defined benefit pension plans covering substantially all full-time, part-time and intermittent employees. Effective as of January 1, 2010, the defined benefit pension plan covering non-bargaining salaried employees was frozen, and effective January 1, 2011, pension benefits for non-bargaining hourly employees were also frozen and no further pension benefits will accrue to the affected employees. Effective April 1, 2011, the Company did not have any active employees accruing pension benefits as the remaining employees who were covered under the Pension Plan for Bargaining Unit and Hourly Employees (Bargaining Plan) were terminated when the Company's golf course operations ceased.

The measurement date for the Company's benefit plan disclosures is December 31^st of each year. The changes in benefit obligations and plan assets for 2012 and 2011, and the funded status of the plans, and assumptions used to determine benefit information at December 31, 2012 and 2011 were as follows:

	Pension Benefits

	2012			2011
	(in thousands)
Change in benefit obligations:
Benefit obligations at beginning of year	$	66,645		$	63,306
Service cost		—			18
Interest cost		3,189			3,338
Actuarial loss		7,218			4,034
Benefits paid		(4,228	)		(4,051	)

Benefit obligations at end of year		72,824			66,645

Change in plan assets:
Fair value of plan assets at beginning of year		39,053			41,255
Actual return on plan assets		5,336			(443	)
Employer contributions		2,357			2,292
Benefits paid		(4,228	)		(4,051	)

Fair value of plan assets at end of year		42,518			39,053

Funded status	$	(30,306	)	$	(27,592	)

Accumulated Benefit Obligations	$	72,824		$	66,645

Weighted average assumption used to determine benefit obligations at December 31:
Discount rate		3.87% - 4.16	%		4.79% - 4.98	%
Expected long-term return on plan assets		7.50	%		7.50	%
Rate of compensation increase		n/a			n/a

The amounts recognized for pension benefits on the Company's consolidated balance sheets as of December 31, 2012 and 2011 were as follows:

	2012		2011

	(in thousands)
Current Liability	$	306	$	300
Noncurrent Liability		30,000		27,292

Net amounts recognized	$	30,306	$	27,592

Amounts recognized for pension benefits in accumulated other comprehensive loss (before income tax effect of $0) at December 31, 2012 and 2011 are as follows:

	2012		2011

	(in thousands)
Net loss	$	27,579	$	23,569

Net amounts recognized	$	27,579	$	23,569

In 2013, $873,000 of the net loss included in other comprehensive loss at December 31, 2012 is expected to be recognized as a component of net periodic pension cost.

Components of net periodic benefit cost and other amounts recognized in other comprehensive loss were as follows:

	Pension Benefits

	2012			2011
	(in thousands)
Pension and other benefits:
Service cost	$	—		$	18
Interest cost		3,189			3,338
Expected return on plan assets		(2,864	)		(3,027	)
Recognized net actuarial (gain) loss		739			809
Amortization of obligation		—			5
Amortization of prior service cost		—			2
Recognition of (gain) loss due to curtailment		—			12

Net expense	$	1,064		$	1,157

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss:
Net loss	$	4,749		$	7,503
Recognized gain (loss)		(739	)		(809	)
Recognized prior service cost		—			(8	)
Recognized net initial obligation		—			(11	)

Total recognized in other comprehensive loss	$	4,010		$	6,675

	2012	2011

Weighed average assumptions used to determine net periodic cost:
Pension benefits:
Discount rate	4.79% - 4.98%	5.25% - 5.47%
Expected long-term return on plan assets	7.50%	7.50%
Rate of compensation increase	n/a	n/a

The expected long-term rate of return on plan assets was based on a building-block approach. Historical markets are studied and long-term historical relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, are evaluated before long-term capital markets are determined. Diversification and rebalancing of the plan assets are properly considered as part of establishing the long-term portfolio returns.

The fair values of the Company's pension plan assets at December 31, 2012 and 2011, by asset category, were as follows:

	2012 Fair Value Measurements (in thousands)

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
AHGT Pooled equity funds	$	—	$	23,706	$	23,706
AHGT Pooled fixed income funds		—		17,671		17,671
Cash management funds		—		1,141		1,141

	$	—	$	42,518	$	42,518

	2011 Fair Value Measurements (in thousands)

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
Pooled equity funds	$	14,851	$	—	$	14,851
Common stock		11,470		—		11,470
U.S. government securities		2,630		3,126		5,756
Pooled fixed income funds		4,814		—		4,814
Cash management funds		1,870		—		1,870
Other investments		245		47		292

	$	35,880	$	3,173	$	39,053

Aon Hewitt Group Trust (AHGT) Pooled equity and fixed income funds: Pooled equity and fixed income funds consist of various AHGT Funds offered through a private placement. The units are valued daily using the net asset value (NAV). The NAVs are based on the fair value of each fund's underlying investments. Level 1 assets are priced using quotes for trades occurring in active markets for the identical asset. Level 2 assets are priced using observable inputs for the asset (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

An administrative committee consisting of certain senior management employees administers the Company's defined benefit pension plans. The pension plan assets are allocated among approved asset types based on the plans current funded status and other characteristics set by the administrative committee, and subject to liquidity requirements of the plans.

The Company expects to contribute $2.4 million to its defined benefit pension plans in 2013. Estimated future benefit payments are as follows (in thousands):


2013	$	4,317
2014		4,269
2015		4,251
2016		4,330
2017		4,368
2018 - 2022		22,216

The Company's cessation of its pineapple operations at the end of 2009 and the corresponding reduction in the active participant count for the Pension Plan for Bargaining Unit and Hourly Employees (Bargaining Plan) triggered the requirement that the Company provide security to the Pension Benefits Guaranty Corporation (PBGC) of approximately $5.2 million to support the unfunded liabilities of the Bargaining Plan. In April 2011, the Company executed a settlement agreement with the PBGC and pledged security of approximately 1,400 acres in West Maui that will be released in five years if the Company does not otherwise default on the agreement. The Company was advised in October 2011 that the cessation of its golf operations and the corresponding reduction in the active participant count for the Bargaining Plan and the Pension Plan for Non-Bargaining Unit Employees triggered the requirement that the Company provide additional security to the PBGC of approximately $18.7 million to support the unfunded liabilities of the two pension plans or to make contributions to the plans in excess of the minimum required amounts. In November 2012, the Company executed a settlement agreement with the PBGC and pledged security of approximately 7,000 acres in West Maui that will be released in five years if the Company does not otherwise default on the agreement.

The Company has investment and savings plans that allow eligible employees on a voluntary basis to make pre-tax contributions of their cash compensation. Substantially all employees are eligible to participate in one or more plans. No Company contributions were made to these plans in 2012 or 2011.

On October 1, 1998, deferred compensation plans that provided for specified payments after retirement for certain management employees were amended to eliminate future benefits. At the termination date, these employees were given credit for existing years of service and the future vesting of additional benefits was discontinued. The present value of the benefits to be paid was being accrued over the period of active employment. As of December 31, 2012 and 2011, deferred compensation plan liabilities totaled $512,000 and $697,000, respectively.