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10. RETIREMENT PLANS
9 Months Ended
Sep. 30, 2011
Pension and Other Postretirement Benefits Disclosure [Text Block]
10. 
RETIREMENT PLANS

We sponsor a noncontributory defined benefit pension plan covering non-union workers in our Ohio and Puerto Rico operations. Benefits under the non-union plan are based upon years of service and highest compensation levels as defined. On December 31, 2005, we froze the noncontributory defined benefit pension plan for all non-U.S. territorial employees.

We recently made a decision to fully fund and terminate the pension plan. We expect the transaction to be completed by the end of 2011. As a result, we expect to contribute approximately $4.2 million into the plan and record a pension termination expense of approximately $3.2 million net of tax in the fourth quarter of 2011. The ultimate pension expense and contribution is dependent on the fair value of plan assets at settlement.

Net pension cost of the Company’s plan is as follows:

   
(Unaudited)
   
(Unaudited)
 
   
Three Months Ended
   
Nine Months Ended
 
   
September 30,
   
September 30,
 
   
2011
   
2010
   
2011
   
2010
 
                         
Service cost
  $ 30,840     $ 19,977     $ 92,520     $ 59,931  
Interest
    156,331       161,677       468,991       485,031  
Expected return on assets
    (156,592 )     (133,055 )     (469,774 )     (399,163 )
Amortization of unrecognized net gain or loss
    54,762       71,854       164,288       215,560  
Amortization of unrecognized prior service cost
    18,802       18,098       56,404       54,294  
Net pension cost
  $ 104,143     $ 138,551     $ 312,429     $ 415,653  

Our unrecognized benefit obligations existing at the date of transition for the non-union plan are being amortized over 21 years. Actuarial assumptions used in the accounting for the plan were as follows:

   
2011
   
2010
 
             
Discount rate
    5.51 %     5.91 %
                 
Average rate of increase in compensation levels
    3.0 %     3.0 %
                 
Expected long-term rate of return on plan assets
    8.0 %     8.0 %