XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.6.0.2

PENSION PLAN | 12 Months Ended
--- | ---
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract] |
PENSION PLAN | NOTE M - PENSION PLAN On January 26, 2006, the Company’s defined-benefit pension plan was frozen and amended to eliminate future benefit accruals after February 15, 2006. The Company had a noncontributory defined benefit pension plan (the “Plan”) covers all eligible employees. Plan assets are invested in six diversified investment funds of the Pentegra Retirement Trust (the “Trust”), a no load series open-ended mutual fund. The Trust has been given discretion by the Plan Sponsor to determine the appropriate strategic asset allocation versus plan liabilities, as governed by the Trust’s Statement of Investment Objectives and Guidelines (the Guidelines). The long-term investment objective is to be invested 65% in equity securities (equity mutual funds) and 35% in debt securities (bond mutual funds). If the Plan is underfunded under the Guidelines, the bond fund portion will be temporarily increased to 50% in order to lessen asset value volatility. When the Plan is no longer underfunded, the bond fund portion will be decreased back to 35%. Asset rebalancing is performed at least annually, with interim adjustments made when the investment mix varies more than 5% from the target (i.e., a 10% target range). Risk/volatility is further managed by the distinct investment objectives of each of the Trust funds and the diversification within each fund. The following table sets forth the Plan’s funded status and amounts recognized in the Company’s Consolidated Balance Sheets at September 30, 2016 and September 30, 2015.
|  | At September 30, |
|  | 2016 |  |  | 2015 |
|  | (In thousands) |
Actuarial present value of benefit obligations |  | $ | 4,779 |  |  | $ | 4,337 |
Change in benefit obligations |  |  |  |  |  |  |  |
Projected benefit obligation, beginning |  | $ | 4,337 |  |  | $ | 3,890 |
Interest cost |  |  | 191 |  |  |  | 170 |
Actuarial loss |  |  | 441 |  |  |  | 463 |
Annuity payments and lump sum distributions |  |  | (190 | ) |  |  | (186 | )
Projected benefit obligation, end |  | $ | 4,779 |  |  | $ | 4,337 |
Change in plan assets |  |  |  |  |  |  |  |
Fair value of assets, beginning |  | $ | 2,766 |  |  | $ | 2,860 |
Actual return on plan assets |  |  | 251 |  |  |  | (84 | )
Employer contributions |  |  | 124 |  |  |  | 176 |
Annuity payments and lump sum distributions |  |  | (190 | ) |  |  | (186 | )
Fair value of assets, end |  | $ | 2,951 |  |  | $ | 2,766 |
Funded status included with other liabilities |  | $ | (1,828 | ) |  | $ | (1,571 | )
Net pension cost for the years ended September 30, 2016 and 2015 included the following components:
|  | September 30, |
|  | 2016 |  |  | 2015 |
|  | (In thousands) |
Service cost benefits earned during the year |  | $ | — |  |  | $ | — |
Interest cost on projected benefit obligation |  |  | 191 |  |  |  | 170 |
Expected return on plan assets |  |  | (191 | ) |  |  | (198 | )
Amortization of unrecognized net loss |  |  | 139 |  |  |  | 75 |
Net pension cost |  | $ | 139 |  |  | $ | 47 |
For the year ended September 30, 2016, the weighted average discount rate used in determining the actuarial present value of the projected benefit obligation was 3.75%. For the year ended September 30, 2015, the weighted average discount rate used in determining the actuarial present value of the projected benefit obligation was 4.50%. The long-term rate-of-return-on-assets assumption was set based on historical returns earned by equities and fixed income securities, adjusted to reflect expectations of future returns as applied to the plan’s target allocation of asset classes. Equities and fixed income securities were assumed to earn rates of return in the ranges of 6-8% and 3-5% for the year ended September 30, 2016, respectively. When these overall return expectations are applied to the plan’s target allocation, the result is an expected rate of return of 5.0% to 7.0%. Accordingly, the expected long-term rate of return on assets was 7.00% for 2016 and 2015. Current Asset Allocation The Plan’s weighted-average asset allocations at September 30, 2016 and 2015, by asset category are as follows:
|  | September 30, |
|  | 2016 |  |  | 2015 |
Equity securities |  |  | 64% |  |  |  | 62% |
Debt securities (bond mutual funds) |  |  | 36% |  |  |  | 37% |
Other (money market fund) |  |  | 0% |  |  |  | 1% |
Total |  |  | 100% |  |  |  | 100% |
The target asset allocation set for the assets of the Plan are in equity securities ranging from 40 percent to 70 percent and in debt securities ranging from 30 percent to 60 percent. In general, the Plan assets are investment securities that are well-diversified in terms of industry, capitalization and asset class. The Plan assets are mostly a mix of U.S. Treasury security indexed funds, mutual funds indexed to the performance of Fortune 500 U.S. companies, debt securities held in bond funds, domestic and foreign common equity funds, and a money market fund. The Plan’s exposure to a concentration of credit risk is limited by the diversification of the investments into various investment options with multiple asset managers. Expected Contributions For the fiscal year ending September 30, 2017, the Company expects to contribute $78,000 to the Plan. Estimated Future Benefit Payments The following benefit payments are expected to be paid as follows (in thousands):
October 1, 2016 through September 30, 2017 |  | $ | 203 |
October 1, 2017 through September 30, 2018 |  |  | 204 |
October 1, 2018 through September 30, 2019 |  |  | 207 |
October 1, 2019 through September 30, 2020 |  |  | 209 |
October 1, 2020 through September 30, 2021 |  |  | 209 |
October 1, 2021 through September 30, 2026 |  |  | 1,136 |
|  | $ | 2,168 |
Included in the funded status of the Plan at September 30, 2016 and 2015, are actuarial losses of $1,984,000 and $1,742,000, respectively. These amounts are included, net of related income tax effects of $793,000 and $696,000, respectively, in the accumulated other comprehensive loss component of stockholders’ equity. During the year ending September 30, 2017, approximately $166,000 of the actuarial losses is expected to be amortized into net periodic pension expense. The following table presents the Plan assets that are measured at fair value on a recurring basis by level within the fair value hierarchy under ASC Topic 820. Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note R for further detail regarding fair value hierarchy.
|  |  |  |  | Fair Value Measurements at Reporting Date Using: |
|  |  |  |  | Quoted Prices |  |  | Significant |  |  |  |
|  |  |  |  | in Active Markets |  |  | Other |  |  | Significant |
|  |  |  |  | for Identical |  |  | Observable |  |  | Unobservable |
|  | Total |  |  | Assets (Level 1) |  |  | Inputs (Level 2) |  |  | Inputs (Level 3) |
|  | (In thousands) |
At September 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment Type |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual Funds- Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Large-Cap Value |  | $ | 400 |  |  | $ | 400 |  |  | $ | — |  |  | $ | — |
Large-Cap Core |  |  | 414 |  |  |  | 414 |  |  |  | — |  |  |  | — |
Mid-Cap Core |  |  | 198 |  |  |  | 198 |  |  |  | — |  |  |  | — |
Small-Cap Core |  |  | 193 |  |  |  | 193 |  |  |  | — |  |  |  | — |
Non-U.S. Core |  |  | 686 |  |  |  | 686 |  |  |  | — |  |  |  | — |
Mutual Funds- Fixed Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intermediate-Term Core |  |  | 1,055 |  |  |  | 1,055 |  |  |  | — |  |  |  | — |
Cash Equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market |  |  | 5 |  |  |  | 5 |  |  |  | — |  |  |  | — |
Total Investment |  | $ | 2,951 |  |  | $ | 2,951 |  |  | $ | — |  |  | $ | — |
At September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment Type |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual Funds- Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Large-Cap Value |  | $ | 351 |  |  | $ | 351 |  |  | $ | — |  |  | $ | — |
Large-Cap Core |  |  | 366 |  |  |  | 366 |  |  |  | — |  |  |  | — |
Mid-Cap Core |  |  | 180 |  |  |  | 180 |  |  |  | — |  |  |  | — |
Small-Cap Core |  |  | 171 |  |  |  | 171 |  |  |  | — |  |  |  | — |
Non-U.S. Core |  |  | 638 |  |  |  | 638 |  |  |  | — |  |  |  | — |
Mutual Funds- Fixed Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Intermediate-Term Core |  |  | 1,020 |  |  |  | 1,020 |  |  |  | — |  |  |  | — |
Cash Equivalents |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Money Market |  |  | 40 |  |  |  | 40 |  |  |  | — |  |  |  | — |
Total Investment |  | $ | 2,766 |  |  | $ | 2,766 |  |  | $ | — |  |  | $ | — |
Equity and debt securities are reported at fair value in the table above utilizing exchange quoted prices in active markets for identical instruments (Level 1 inputs).

X
- References No definition available. + 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 Accounting Standards Codification -Topic 715 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65877416&loc=SL14450702-114947 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66047640&loc=d3e39622-114963 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration