XML 82 R21.htm IDEA: XBRL DOCUMENT
v2.4.0.6

RETIREMENT PLANS | 12 Months Ended
--- | ---
Dec. 31, 2012
RETIREMENT PLANS |
RETIREMENT PLANS | 11. RETIREMENT PLANS The Company has a noncontributory defined benefit pension plan for eligible employees of GT&T who meet certain age and employment criteria. Company contributions to fund the plan are intended to provide not only for benefits attributed for service to date but also for those expected to be earned in the future. The Company's funding policy is to contribute to the plan such amounts as are actuarially determined to meet funding requirements. The benefits are based on the participants' average salary or hourly wages during the last three years of employment and credited service years. The weighted-average rates assumed in the actuarial calculations for the pension plan are as follows as of December 31, 2010, 2011 and 2012:
|  | 2010 |  | 2011 |  | 2012 |
--- | --- | --- | --- | --- | --- | --- | ---
Discount rate |  |  | 7.00 | % |  | 6.25 | % |  | 6.00 | %
Annual salary increase |  |  | 7.50 | % |  | 7.50 | % |  | 7.50 | %
Expected long-term return on plan assets |  |  | 8.00 | % |  | 8.00 | % |  | 8.00 | %
The expected long-term rate of return on pension plan assets was determined based on several factors including input from pension investment consultants, projected long-term returns of equity and bond indices in Guyana and elsewhere, including the United States, and historical returns over the life of the related obligations of the fund. The Company, in conjunction with its pension investment consultants, reviews its asset allocation periodically and rebalances its investments when appropriate in an effort to earn the expected long-term returns. The Company will continue to evaluate its long-term rate of return assumptions at least annually and will adjust them as necessary. Changes during the year in the projected benefit obligations and in the fair value of plan assets are as follows for 2011 and 2012 (in thousands):
|  | 2011 |  | 2012 |
--- | --- | --- | --- | --- | ---
Projected benefit obligations: |  |  |  |  |  |  |
Balance at beginning of year: |  | $ | 12,580 |  | $ | 13,355 |
Service cost |  |  | 617 |  |  | 612 |
Interest cost |  |  | 865 |  |  | 810 |
Benefits paid |  |  | (659 | ) |  | (674 | )
Actuarial loss |  |  | (48 | ) |  | (2,443 | )
Balance at end of year |  | $ | 13,355 |  | $ | 11,660 |
Plan net assets: |  |  |  |  |  |  |
Balance at beginning of year: |  | $ | 11,736 |  | $ | 11,994 |
Actual return on plan assets |  |  | 83 |  |  | 759 |
Company contributions |  |  | 834 |  |  | 853 |
Benefits paid |  |  | (659 | ) |  | (674 | )
Balance at end of year |  | $ | 11,994 |  | $ | 12,932 |
(Under) over funded status of plan |  | $ | (1,361 | ) | $ | 1,272 |
The Company's investment policy for its pension assets is to have a reasonably balanced investment approach, with a long-term bias toward debt investments. The Company's strategy allocates plan assets among equity, debt and other assets in both Guyana and the United States to achieve long-term returns without significant risk to principal. The fund is prohibited under Guyana law from investing in the equity, debt or other securities of the employer, its subsidiaries or associates of the employer or any company of which the employer is a subsidiary or an associate. Furthermore, the plan must invest between 70%-80% of its total plan assets within Guyana. The fair values for the pension plan's net assets, by asset category, at December 31, 2012 are as follows (in thousands):
Asset Category |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |
--- | --- | --- | --- | --- | --- | --- | --- | --- | ---
Cash, cash equivalents, money markets and other |  | $ | 10,178 |  | $ | 10,178 |  | $ | — |  | $ | — |
Equity securities |  |  | 1,189 |  |  | 1,189 |  |  | — |  |  | — |
Fixed income securities |  |  | 1,564 |  |  | 854 |  |  | 710 |  |  | — |
Total |  | $ | 12,931 |  | $ | 12,221 |  |  | 710 |  |  | — |
The plan's weighted-average asset allocations at December 31, 2011 and 2012, by asset category are as follows:
|  | 2011 |  | 2012 |
--- | --- | --- | --- | --- | ---
Cash, cash equivalents, money markets and other |  |  | 80.3 | % |  | 78.7 | %
Equity securities |  |  | 8.0 |  |  | 9.2 |
Fixed income securities |  |  | 11.7 |  |  | 12.1 |
Total |  |  | 100.0 | % |  | 100.0 | %
Amounts recognized on the Company's consolidated balance sheets consist of (in thousands):
|  | As of December 31, |
--- | --- | --- | ---
|  | 2011 |  | 2012 |
Other assets |  | $ | — |  | $ | 1,272 |
Other liabilities |  |  | (1,361 | ) |  | — |
Accumulated other comprehensive loss, net of tax |  |  | 2,714 |  |  | 1,318 |
Amounts recognized in accumulated other comprehensive loss consist of (in thousands):
|  | 2011 |  | 2012 |
--- | --- | --- | --- | --- | ---
Net actuarial loss |  | $ | (5,390 | ) | $ | (2,918 | )
Prior service cost |  |  | — |  |  | — |
Accumulated other comprehensive loss, pre-tax |  | $ | (5,390 | ) | $ | (2,918 | )
Accumulated other comprehensive loss, net of tax |  | $ | (2,714 | ) | $ | (1,318 | )
Components of the plan's net periodic pension cost are as follows for the years ended December 31, 2010, 2011 and 2012 (in thousands):
|  | 2010 |  | 2011 |  | 2012 |
--- | --- | --- | --- | --- | --- | --- | ---
Service cost |  | $ | 545 |  | $ | 617 |  | $ | 612 |
Interest cost |  |  | 784 |  |  | 865 |  |  | 810 |
Expected return on plan assets |  |  | (835 | ) |  | (961 | ) |  | (972 | )
Amortization of unrecognized net actuarial loss |  |  | 177 |  |  | 229 |  |  | 242 |
Amortization of prior service costs |  |  | 11 |  |  | 11 |  |  | — |
Net periodic pension cost |  | $ | 682 |  | $ | 761 |  | $ | 692 |
For 2013, the Company expects to contribute approximately $754,000 to its pension plan. The following estimated pension benefits, which reflect expected future service, as appropriate, are expected to be paid over the next ten years as indicated below (in thousands):
Fiscal Year |  | Pension Benefits |
--- | --- | --- | ---
2013 |  |  | 537 |
2014 |  |  | 327 |
2015 |  |  | 444 |
2016 |  |  | 522 |
2017 |  |  | 541 |
2018 - 2022 |  |  | 4,127 |
|  |  | 6,498 |

X
- Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number FAS88 -Paragraph 63 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 518 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7, 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 8 -Subparagraph m -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 264 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 30 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-2 -Paragraph 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph h -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph q -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration