XML 56 R12.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Employee Benefit Plans | 12 Months Ended
--- | ---
Jun. 30, 2012
Employee Benefit Plans | F. Employee Benefit Plans We have a profit sharing plan pursuant to Section 401(k) of the Code, whereby participants may contribute a percentage of compensation not in excess of the maximum allowed under the Code. All employees with six months of continuous employment are eligible to participate in the plan. Effective January 1, 2004, the plan was amended to require that we match 100% of the first 3% and 50% of the next 2% of a participant’s compensation contributed to the plan. Effective January 1, 2009, we elected to temporarily discontinue the company match program. The match program was reinstated effective July 15, 2011. The total contributions under the plan charged to income from operations totaled $183,000 for fiscal 2012. We did not make any matching contributions in fiscal 2011. We have a “Cafeteria Plan” pursuant to Section 125 of the Code, whereby health care benefits are provided for active employees through insurance companies. Substantially all active full-time employees are eligible for these benefits. We recognize the cost of providing these benefits by expensing the annual premiums, which are based on benefits paid during the year. The premiums expensed to operating income for these benefits totaled $843,000 for the fiscal year ended June 30, 2012 and $754,000 for fiscal 2011. We sponsor a defined benefit pension plan, which provides retirement benefits to employees based generally on years of service and compensation during the last five years before retirement. Effective June 21, 1999, we adopted an amendment to freeze benefit accruals to the participants. We contribute an amount not less than the minimum funding requirements of the Employee Retirement Income Security Act of 1974 nor more than the maximum tax-deductible amount. Disclosure of Funded Status The following table sets forth the defined benefit pension plan’s funded status and amount recognized in our consolidated balance sheets at June 30 (in thousands):
|  | 2012 |  |  | 2011 |
Change in Benefit Obligation |  |  |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | 1,652 |  |  | $ | 1,613 |
Interest cost |  |  | 87 |  |  |  | 80 |
Actuarial (gain) loss |  |  | (83 | ) |  |  | 110 |
Benefits paid |  |  | (63 | ) |  |  | (151 | )
Benefit obligation at end of year |  | $ | 1,593 |  |  | $ | 1,652 |
Change in Plan Assets |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 1,716 |  |  | $ | 1,649 |
Actual return on plan assets |  |  | 31 |  |  |  | 218 |
Employer contributions |  |  | — |  |  |  | — |
Benefits paid |  |  | (63 | ) |  |  | (151 | )
Plan expenses |  |  | (2 | ) |  |  |  |
Fair value of plan assets at end of year |  | $ | 1,682 |  |  | $ | 1,716 |
Reconciliation of Funded Status |  |  |  |  |  |  |  |
Fair value of plan assets in excess of benefit obligation |  | $ | 89 |  |  | $ | 64 |
Unrecognized net actuarial loss |  |  | 542 |  |  |  | 572 |
Net amount recognized |  | $ | 631 |  |  | $ | 636 |
Additional Minimum Liability Disclosures |  |  |  |  |  |  |  |
Accrued benefit asset |  | $ | 89 |  |  | $ | 64 |
The weighted-average discount rate used for the years ended June 30, 2012 and 2011 in determining the projected benefit obligations for the defined benefit pension plan was 5.50%. Net Periodic Benefit Cost The components included in the defined benefit pension plan’s net periodic benefit expense for the fiscal years ended June 30 were as follows (in thousands):
|  | 2012 |  |  | 2011 |
Interest cost |  | $ | 87 |  |  | $ | 80 |
Expected return on plan assets |  |  | (116 | ) |  |  | (105 | )
Recognized actuarial loss |  |  | 33 |  |  |  | 32 |
Net periodic benefit expense |  | $ | 4 |  |  | $ | 7 |
We do not expect to make any contribution to our defined benefit pension plan in fiscal 2013. The following benefit payments are expected to be paid:
2013 |  | $ | 13 |
2014 |  |  | 13 |
2015 |  |  | 30 |
2016 |  |  | 30 |
2017 |  |  | 45 |
2018-2022 |  |  | 572 |
|  | $ | 703 |
The weighted-average rates used for the years ended June 30 in determining the defined benefit pension plan’s net pension costs, were as follows:
|  | 2012 |  |  | 2011 |
Discount rate |  |  | 5.50 | % |  |  | 5.50 | %
Expected long-term rate of return |  |  | 7.00 | % |  |  | 7.00 | %
Compensation increase rate |  |  | N/A |  |  |  | N/A |
Our expected rate of return is determined based on a methodology that considers historical returns of multiple classes analyzed to develop a risk free real rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk free real rate of return, and the associated risk premium. A weighted average rate was developed based on those overall rates and the target asset allocation of the plan. Our defined benefit pension plan’s weighted average asset allocation at June 30 and weighted average target allocation were as follows:
|  | 2012 |  |  | 2011 |  |  | Target Allocation |
Equity securities |  |  | 54 | % |  |  | 55 | % |  |  | 46 | %
Debt securities |  |  | 40 | % |  |  | 40 | % |  |  | 49 | %
Commodities |  |  | — | % |  |  | — | % |  |  | 2 | %
Cash and money market funds |  |  | 6 | % |  |  | 5 | % |  |  | 3 | %
|  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
The underlying basis of the investment strategy of our defined benefit pension plan is to ensure that pension funds are available to meet the plan’s benefit obligations when due. Our investment strategy is a long-term risk controlled approach using diversified investment options with relatively minimal exposure to volatile investment options like derivatives. The fair values by asset category of our defined benefit pension plan at June 30, 2012 were as follows (in thousands):
|  | Total |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Cash and money market funds |  | $ | 104 |  |  | $ | 104 |  |  | $ | — |  |  | $ | — |
Equity securities(1) |  | $ | 911 |  |  | $ | 911 |  |  | $ | — |  |  | $ | — |
Debt securities(2) |  | $ | 667 |  |  | $ | 667 |  |  | $ | — |  |  | $ | — |
Total |  | $ | 1,682 |  |  | $ | 1,682 |  |  | $ | — |  |  | $ | — |
(1) | This category is comprised of publicly traded funds, of which 77% are large-cap funds, 14% are emerging markets equity funds, and 9% are international equity funds.
(2) | This category is comprised of publicly traded funds, of which 31% are short-term fixed income funds, 32% are high-yield fixed income funds, 11% are intermediate fixed income funds, 9% are international/emerging markets funds and 17% are REITs and MLPs funds.

X
- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References No definition available. + Details
Name: | us-gaap_CompensationAndEmployeeBenefitPlansTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration