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Note 14 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2014

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,
		2014				2013
Service cost		$	13			$	24
Interest cost on projected benefit obligation			1,789				1,652
Net amortization of actuarial loss			531				824
Expected return on plan assets			(2,390	)			(2,522	)
		$	(57	)		$	(22	)

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,
		2014				2013
Change in benefit obligation:
Benefit obligation at beginning of year		$	40,526			$	45,561
Service cost			13				24
Interest cost			1,789				1,652
Actuarial loss (gain)			6,231				(3,534	)
Benefits paid			(3,121	)			(3,177	)
Benefit obligation at end of year		$	45,438			$	40,526

Change in plan assets:
Fair value of plan assets at beginning of year		$	36,566			$	35,067
Actual return on plan assets			3,503				4,013
Company contributions			1,090				663
Benefits paid			(3,121	)			(3,177	)
Fair value of plan assets at end of year		$	38,038			$	36,566

Underfunded status of the plans		$	(7,400	)		$	(3,960	)

Balance sheet assets (liabilities):
Other assets		$	0			$	660
Other liabilities			(7,400	)			(4,620	)
Net amount recognized		$	(7,400	)		$	(3,960	)

Pension plans with accumulated benefit obligation in excess of plan assets:
Projected benefit obligation		$	45,438			$	26,773
Accumulated benefit obligation			45,428				26,760
Fair value of plan assets			38,038				22,153

		December 31,
		2014				2013
Projected benefit obligation and net periodic pension cost assumptions:
Discount rate			3.90	%			4.65
Rate of compensation increase			4.00				4.00
Expected long-term rate of return on plan assets			6.75				7.50

Weighted average asset allocation:
Equity securities			32	%			46	%
Debt securities			68				54
Total			100	%			100	%

The fair values of our pension plan assets as of December 31, 2014, are as follows (in thousands):

						Significant
		Quoted Prices				Other
		In Active				Observable
		Markets				Inputs
		(Level 1)				(Level 2)
Asset categories:
Cash and cash equivalents		$	1,270			$	0
Equity investments:
U.S. Large Cap			8,105				0
U.S. Mid Cap			1,245				0
U.S. Small Cap			504				0
World Equity			1,596				0
Real estate			292				0
Other			266				0
Fixed income securities			11,710				13,050
Total Plan Assets		$	24,988			$	13,050

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.

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 2015 is approximately $800,000, 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 2014 and 2013 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, 2014 includes $17,814,000 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, 2015 is $717,000. The actual loss reclassified from accumulated other comprehensive loss for 2014 and 2013 was $531,000 and $824,000, respectively.

At December 31, 2014, 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):

2015		$	3,185
2016			3,181
2017			3,158
2018			3,122
2019			3,085
2020-2025			14,563
		$	30,294

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 2014 and 2013 totaled approximately $1,137,000 and $973,000, 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 670 and 668 at December 31, 2014 and 2013, respectively. The Medical Plans limit the Company’s annual obligations to fund claims to specified amounts per participant. The Company is insured for amounts in excess of these limits. Employees are responsible for payment of a portion of the premiums. During 2014 and 2013, the Company charged approximately $4,967,000 and $3,909,000, 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 $26,000 and $247,000 in 2014 and 2013, respectively. The aggregate benefit plan assets and accumulated benefit obligation of these plans are not significant.

- Definition

The entire disclosure for pension and other postretirement benefits.

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