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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2011
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
(18) Employee Benefit Plans

The Industrial Group sponsors noncontributory defined benefit pension plans (the Pension Plans) covering certain of its employees. The Pension Plans covering salaried and management employees provide pension benefits that are based on the employees' highest five-year average compensation within ten years before retirement. The Pension Plans covering hourly employees and union members generally provide benefits at stated amounts for each year of service. All of the Company's pension plans are frozen to new participants and certain plans are frozen to additional benefit accruals. The Company's funding policy is to make the minimum annual contributions required by the applicable regulations. The Pension Plans' assets are primarily invested in equity securities and fixed income securities. The following table details the components of pension (income) expense (in thousands):

 

     Years ended
December 31,		  
     2011     2010  

Service cost

    $ 36      $ 44   

Interest cost on projected benefit obligation

      2,068        2,204   

Net amortizations and deferrals

      585        532   

Expected return on plan assets

      (2,554 )      (2,594 ) 
  

 

 

    

 

 

  
   $ 135      $ 186   
  

 

 

    

 

 

  

The following are summaries of the changes in the benefit obligations and plan assets and of the funded status of the Pension Plans (in thousands):

 

     December 31,  
     2011     2010  

Change in benefit obligation:

     

Benefit obligation at beginning of year

    $ 42,094      $ 41,423   

Service cost

      36        44   

Interest cost

      2,068        2,204   

Actuarial loss

      3,041        1,255   

Benefits paid

      (3,095 )      (2,832 ) 
  

 

 

    

 

 

  

Benefit obligation at end of year

    $ 44,144      $ 42,094   
  

 

 

    

 

 

  

Change in plan assets:

     

Fair value of plan assets at beginning of year

    $ 34,364      $ 32,898   

Actual return on plan assets

      398        3,477   

Company contributions

      753        821   

Benefits paid

      (3,095 )      (2,832 ) 
  

 

 

    

 

 

  

Fair value of plan assets at end of year

    $ 32,420      $ 34,364   
  

 

 

    

 

 

  

Underfunded status of the plans

    $ (11,724 )    $ (7,730 ) 
  

 

 

    

 

 

  

Balance sheet assets (liabilities):

     

Other assets

    $ —        $ —     

Accrued liabilities

      —          —     

Other liabilities

      (11,724 )      (7,730 ) 
  

 

 

    

 

 

  

Net amount recognized

    $ (11,724 )    $ (7,730 ) 
  

 

 

    

 

 

  

Pension plans with accumulated benefit obligation in excess of plan assets:

     

Projected benefit obligation

    $ 44,144      $ 42,094   

Accumulated benefit obligation

      44,121        42,068   

Fair value of plan assets

      32,420        34,364   

 

     December 31,  
     2011     2010  

Projected benefit obligation and net periodic pension cost assumptions:

     

Discount rate

      4.40 %      5.70 % 

Rate of compensation increase

      4.00        4.00   

Expected long-term rate of return on plan assets

      7.75        8.25   

Weighted average asset allocation:

     

Equity securities

      61 %      63 % 

Debt securities

      39        37   
  

 

 

    

 

 

  

Total

      100 %      100 % 
  

 

 

    

 

 

  

Investments in our defined benefit plans are stated at fair value. The fair values of our pension plan assets as of December 31, 2011, are as follows (in thousands):

 

     Quoted
Prices In
Active
Markets
(Level 1)		      Significant
Other
Observable
Inputs
(Level 2)		  

Asset categories:

      

Cash and cash equivalents

    $ 480       $ —     

Equity investments:

      

U.S. Large Cap

      —           14,041   

U.S. Mid Cap

      1,162         —     

U.S. Small Cap

      1,023         —     

World Equity

      3,521         —     

Fixed income securities

      12,193         —     
  

 

 

     

 

 

  

Total Plan Assets

    $ 18,379       $ 14,041   
  

 

 

     

 

 

  

The Company uses December 31 as the measurement date for the Pension Plans. Total estimated contributions expected to be paid to the plans during 2012 ranges from $1,500,000 to $1,700,000, which represents the minimum funding amounts required by federal law. The expected long-term rates of return on plan assets for determining net periodic pension cost for 2011 and 2010 were chosen by the Company from a best estimate range determined by applying anticipated long-term returns and long-term volatility for various assets categories to the target asset allocation of the plan. The target asset allocation of plan assets is equity securities ranging 55-65% and fixed income securities ranging 35-45% of total investments.

Accumulated other comprehensive loss at December 31, 2011 includes $19,012,000 of unrecognized actuarial losses that have not yet been recognized in net periodic pension cost: The actuarial loss included in accumulated other comprehensive loss and expected to be recognized in net periodic pension cost during the fiscal year ended December 31, 2012 is $806,000.

At December 31, 2011, the benefits expected to be paid in each of the next five fiscal years, and in aggregate for the five fiscal years thereafter are as follows (in thousands):

 

2012

      3,272   

2013

      3,224   

2014

      3,234   

2015

      3,236   

2016

      3,245   

2017-2021

      15,467   
  

 

 

  
   $ 31,678   
  

 

 

  

 

The Company sponsors a defined contribution plan (the Defined Contribution Plan) for substantially all employees of the Company. The Defined Contribution Plan is intended to meet the requirements of Section 401(k) of the Internal Revenue Code. The Defined Contribution Plan allows the Company to match participant contributions and provide discretionary contributions. Effective March 2009, the Company suspended the participant match for all participants other than those covered by a union contract. Effective October 2010, the Company reinstated a 1% match for those same participants. Effective July 2011, the Company increased the match to 2% for those same participants. Contributions to the Defined Contribution Plan in 2011 and 2010 totaled approximately $446,000 and $332,000, respectively.

The Company has self-insured medical plans (the Medical Plans) covering substantially all domestic employees. The number of employees participating in the Medical Plans was approximately 715 and 693 at December 31, 2011 and 2010, respectively. The Medical Plans limit the Company's annual obligations to fund claims to specified amounts per participant. The Company is adequately insured for amounts in excess of these limits. Employees are responsible for payment of a portion of the premiums. During 2011 and 2010, the Company charged approximately $3,979,000 and $4,771,000, respectively, to operations related to medical claims incurred and estimated, reinsurance premiums, and administrative costs for the Medical Plans.

In addition, certain of the Company's non-U.S. employees are covered by various defined benefit and defined contribution plans. The Company's expenses for these plans related to continuing operations totaled approximately $262,000 and $225,000 in 2011 and 2010, respectively. The aggregate benefit plan assets and accumulated benefit obligation of these plans are not significant.