XML 78 R23.htm IDEA: XBRL DOCUMENT

Note 14 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

(14) 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):

	Year ended December 31,
	2013			2012
Service cost	$	24		$	25
Interest cost on projected benefit obligation		1,652			1,870
Net amortizations and deferrals		824			842
Expected return on plan assets		(2,522	)		(2,430	)
	$	(22	)	$	307

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,
	2013			2012
Change in benefit obligation:
Benefit obligation at beginning of year	$	45,561		$	44,144
Service cost		24			25
Interest cost		1,652			1,870
Actuarial (gain) loss		(3,534	)		2,780
Benefits paid		(3,177	)		(3,258	)

Benefit obligation at end of year	$	40,526		$	45,561

	December 31,
	2013			2012
Change in plan assets:
Fair value of plan assets at beginning of year	$	35,067		$	32,420
Actual return on plan assets		4,013			4,307
Company contributions		663			1,598
Benefits paid		(3,177	)		(3,258	)

Fair value of plan assets at end of year	$	36,566		$	35,067

Underfunded status of the plans	$	(3,960	)	$	(10,494	)

Balance sheet assets (liabilities):
Other assets	$	660		$	0
Accrued liabilities		0			0
Other liabilities		(4,620	)		(10,494	)

Net amount recognized	$	(3,960	)	$	(10,494	)

Pension plans with accumulated benefit obligation in excess of plan assets:
Projected benefit obligation	$	26,773		$	45,561
Accumulated benefit obligation		26,760			45,543
Fair value of plan assets		22,153			35,067

Projected benefit obligation and net periodic pension cost assumptions:
Discount rate		4.65	%		3.80	%
Rate of compensation increase		4.00			4.00
Expected long-term rate of return on plan assets		7.50			7.75

Weighted average asset allocation:
Equity securities		46	%		58	%
Debt securities		54			42

Total		100	%		100	%

The fair values of our pension plan assets as of December 31, 2013, are as follows (in thousands):

			Significant
	Quoted Prices		Other
	In Active		Observable
	Markets		Inputs
	(Level 1)		(Level 2)
Asset categories:
Cash and cash equivalents	$	1,047	$	0
Equity investments:
U.S. Large Cap		9,926		0
U.S. Mid Cap		1,552		0
U.S. Small Cap		788		0
World Equity		3,152		0
Real estate		911		0
Other		637		0
Fixed income securities		8,405		10,148
Total Plan Assets	$	26,418	$	10,148

Investments in our defined benefit plans are stated at fair value. The following valuation methods were used to value our pension assets:

Equity securities

The fair value of equity securities is determined by either direct or indirect quoted market prices. When the value of assets held in separate accounts is not published, the value is based on the underlying holdings, which are primarily direct quoted market prices on regulated financial exchanges.

Fixed income securities

The fair value of fixed income securities is determined by either direct or indirect quoted market prices. When the value of assets held in separate accounts is not published, the value is based on the underlying holdings, which are primarily direct quoted market prices on regulated financial exchanges.

Real estate

The fair value of investments in real estate is provided by fund managers. The fund managers value the real estate investments via independent third party appraisals on a periodic basis. Assumptions used to revalue the properties are updated every quarter. We believe this is an appropriate methodology to obtain the fair value of these assets.

Cash and cash equivalents

The fair value of cash and cash equivalents is set equal to its cost.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

The Company uses December 31 as the measurement date for the Pension Plans. Total estimated contributions expected to be paid to the plans during 2014 is $2,700,000, which represents the minimum funding amounts required by federal law, in addition to funds expected to be required as additional contributions by the Pension Benefit Guaranty Corp. (PBGC). The expected long-term rates of return on plan assets for determining net periodic pension cost for 2013 and 2012 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 0-55%, fixed income securities ranging 35-100% and non-traditional/other of 0%-10% of total investments.

Accumulated other comprehensive loss at December 31, 2013 includes $13,225,000 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, 2014 is $551,000.

At December 31, 2013, 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):

2014	$	3,216
2015		3,209
2016		3,202
2017		3,175
2018		3,124
2019-2023		14,622
	$	30,548

The Company sponsors a defined contribution plan (the Defined Contribution Plan) for substantially all domestic 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 up to 3% and provide discretionary contributions. Contributions to the Defined Contribution Plan by the Company in 2013 and 2012 totaled approximately $973,000 and $908,000, 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 668 and 702 at December 31, 2013 and 2012, 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 2013 and 2012, the Company charged approximately $3,909,000 and $4,107,000, 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 totaled approximately $247,000 and $200,000 in 2013 and 2012, respectively. The aggregate benefit plan assets and accumulated benefit obligation of these plans are not significant.