XML 16 R12.htm IDEA: XBRL DOCUMENT v2.3.0.15
Post retirement Benefits
9 Months Ended
Sep. 30, 2011
Compensation and Retirement Disclosure [Abstract] 
Post retirement Benefits
Post Retirement Benefits
The components of expense for Core Molding Technologies’ post retirement benefit plans for the three and nine months ended September 30, 2011 and 2010 are as follows:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2011

 
2010
 
2011
 
2010
Pension expense:
 
 
 
 
 
 
 
Defined contribution plan contributions
$
121,041

 
$
90,116

 
$
411,539

 
$
311,853

Multi-employer plan contributions
103,450

 
90,918

 
307,179

 
299,975

Total pension expense
224,491

 
181,034

 
718,718

 
611,828

 
 
 
 
 
 
 
 
Health and life insurance:
 
 
 
 
 
 
 
Service cost
—

 
28,000

 
—

 
208,000

Interest cost
132,750

 
170,000

 
398,250

 
708,000

Recognition of previously unrecognized actuarial losses due to partial settlement
—

 
584,000

 
—

 
584,000

Amortization of prior service costs
(124,000
)
 
(83,000
)
 
(372,000
)
 
(83,000
)
Amortization of net loss
54,750

 
38,000

 
164,250

 
96,000

Net periodic benefit cost
63,500

 
737,000

 
190,500

 
1,513,000

 
 
 
 
 
 
 
 
Total post retirement benefits expense
$
287,991

 
$
918,034

 
$
909,218

 
$
2,124,828

The Company made payments of $758,814 to pension plans and $378,820 for post retirement healthcare and life insurance during the nine months ended September 30, 2011. For the remainder of 2011 the Company expects to make approximately $169,975 of pension plan payments, of which $41,132 was accrued at September 30, 2011. The Company also expects to make approximately $554,180 of post retirement healthcare and life insurance payments for the remainder of 2011, all of which are accrued at September 30, 2011.
On August 7, 2010, the Company entered into a new collective bargaining agreement with employees represented by the International Association of Machinists and Aerospace Workers at the Company’s Columbus, Ohio production facility. As part of the new agreement, the post retirement health and life insurance benefits for all current and future represented employees who were not retired as of August 7, 2010 were eliminated in exchange for a one-time cash payment of $1,257,000. Individuals who retired prior to August 7, 2010 remain eligible for post retirement health and life insurance benefits.
The elimination of post retirement health and life insurance benefits described above resulted in a reduction of the Company’s post retirement benefits liability of approximately $10,282,000 in 2010. This reduction in post retirement benefits liability was treated as a negative plan amendment and is being amortized as a reduction to net periodic benefit cost over approximately twenty years, the actuarial life expectancy of the remaining participants in the plan at the time of the amendment. This negative plan amendment will result in net periodic benefit cost reductions of approximately $496,000 per year in 2011 and each year thereafter during the amortization period, and lower interest costs associated with the reduced post retirement benefits liability. The plan was re-measured using a discount rate of 5.1% at the time of the negative plan amendment.