Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2013 |
Employee Benefit Plans [Abstract] | ' |
Employee Benefit Plans | ' |
|
Note 13 – Employee Benefit Plans |
|
|
|
The Company has qualified, defined benefit pension plans that were established to provide benefits to certain employees. These plans are frozen and participants are no longer accruing benefits. The Company also provides certain postretirement health care benefits for certain of its salaried and hourly retired employees. Generally, employees may become eligible for health care benefits if they retire after attaining specified age and service requirements. These benefits are subject to deductibles, co-payment provisions and other limitations. |
|
|
|
A substantial portion of the Company's postretirement benefit plan obligation relates to a settlement with the union representing employees at the Company's and its predecessors' Johnstown manufacturing facilities. The terms of that settlement agreement (the "2005 Settlement Agreement") required the Company to pay until November 30, 2012 certain monthly amounts toward the cost of retiree health care coverage. The Company engaged in voluntary negotiations for two years in an effort to reach a consensual agreement related to the expired 2005 Settlement Agreement but no agreements were reached. In July 2013, the Company provided notice of its intent to terminate, its contributions for medical coverage and life insurance benefits to affected retirees. On July 8, 2013, the Company filed a complaint seeking declaratory relief from the United States District Court for the Northern District of Illinois to confirm its rights to reduce or terminate retiree medical coverage and life insurance benefits pursuant to the plans that were the subject of the 2005 Settlement Agreement, and on July 9, 2013, the union and certain retiree defendants filed suit in the United States District Court for the Western District of Pennsylvania regarding the same dispute (see Note 14). The outcome of the pending litigation and the impact on the Company's postretirement benefit plan obligation cannot be determined at this time. The Company's recorded postretirement benefit plan obligation assumes for accounting purposes a continuation of those monthly payments after November 30, 2012 (as permitted under the settlement). However, the Company's postretirement benefit plan obligation could significantly increase or decrease as a result of the litigation or if the parties agree to an alternative settlement agreement. |
|
|
|
Generally, contributions to the plans are not less than the minimum amounts required under the Employee Retirement Income Security Act of 1974 ("ERISA") and not more than the maximum amount that can be deducted for federal income tax purposes. The plans' assets are held by independent trustees and consist primarily of equity and fixed income securities. |
|
|
|
The components of net periodic benefit cost (benefit) for the three and nine months ended September 30, 2013 and 2012, are as follows: |
|
|
|
| | | | |
| Three Months Ended | Nine Months Ended |
| |
September 30, | September 30, |
| |
| |
| |
Pension Benefits | 2013 | 2012 | 2013 | 2012 |
|
|
|
Interest cost | $ 632 | $ 725 | $ 1,896 | $ 2,175 |
Expected return on plan assets | (887 ) | (862 ) | (2,661 ) | (2,586 ) |
Amortization of unrecognized net loss | 131 | 126 | 393 | 378 |
| | | | |
|
| $ (124) | $ (11) | $ (372) | $ (33) |
| | | | |
|
|
|
|
| | | | |
| Three Months Ended | Nine Months Ended |
| |
September 30, | September 30, |
| |
| |
| |
Postretirement Benefit Plan | 2013 | 2012 | 2013 | 2012 |
|
|
|
Service cost | $ 18 | $ 16 | $ 54 | $ 48 |
Interest cost | 657 | 755 | 1,971 | 2,265 |
Amortization of prior service cost | 60 | 60 | 180 | 180 |
Amortization of unrecognized net loss | 153 | 94 | 460 | 281 |
| | | | |
|
| $ 888 | $ 925 | $ 2,665 | $ 2,774 |
| | | | |
|
|
|
|
Amortization of unrecognized net loss for the Company's defined benefit pension plans was reclassified to income, from accumulated other comprehensive income, of which $118 and $13 was recognized in cost of sales and selling, general and administrative expenses, respectively for the three months ended September 30, 2013, and $77 and $49 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the three months ended September 30, 2012. Amortization of unrecognized net loss for the Company's defined benefit pension plans was reclassified to income, from accumulated other comprehensive income, of which $354 and $39 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the nine months ended September 30, 2013 and $231 and $147 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the nine months ended September 30, 2012. The Company made contributions to the Company's defined benefit pension plans of $61 and $513 for the three months ended September 30, 2013 and 2012, respectively, and $122 and $2,069 for the nine months ended September 30, 2013 and 2012, respectively. The Company expects to make $759 in contributions to its pension plans in 2013 to meet its minimum funding requirements. |
|
|
|
Amortization of prior service cost for the Company's postretirement benefit plan was reclassified to income, from accumulated other comprehensive income, of which $57 and $3 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the three months ended September 30, 2013 and $56 and $4 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the three months ended September 30, 2012. Amortization of unrecognized net loss for the Company's postretirement benefit plan was reclassified to income, from accumulated other comprehensive income, of which $145 and $8 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the three months ended September 30, 2013 and $88 and $6 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the three months ended September 30, 2012. Amortization of prior service cost for the Company's postretirement benefit plan was reclassified to income, from accumulated other comprehensive income, of which $171 and $9 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the nine months ended September 30, 2013 and $169 and $11 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the nine months ended September 30, 2012. Amortization of unrecognized net loss for the Company's postretirement benefit plan was reclassified to income, from accumulated other comprehensive income, of which $437 and $23 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the nine months ended September 30, 2013 and $264 and $17 was recognized in cost of sales and selling, general and administrative expenses, respectively, for the nine months ended September 30, 2012. The Company made payments to the Company's postretirement benefit plan of approximately $508 and $1,188 for the three months ended September 30, 2013 and 2012, respectively, and $2,977 and $3,719 for the nine months ended September 30, 2013 and 2012, respectively. When the Company terminates, effective November 1, 2013, its contributions to fund its postretirement benefit plan, then the Company would make approximately $3,453 in payments to the plan in 2013. The Company would have made approximately $4,946 in payments to the plan in 2013 based on the 2005 Settlement Agreement. |
|
|
|
The Company also maintains qualified defined contribution plans, which provide benefits to employees based on employee contributions, employee earnings or certain subsidiary earnings, with discretionary contributions allowed. Expenses related to these plans were $310 and $402 for the three months ended September 30, 2013 and 2012, respectively, and $1,190 and $1,369 for the nine months ended September 30, 2013 and 2012, respectively. |
|