Coterra Energy (CTRA) 10-Q 30 Apr 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	3 Months Ended Mar. 31, 2010	Apr. 27, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	CABOT OIL & GAS CORP
Entity Central Index Key	0000858470
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			3.2
Entity Common Stock, Shares Outstanding		103,910,058

Condensed Consolidated Statemen

Condensed Consolidated Statement of Operations (Unaudited) (USD $)
In Thousands, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
OPERATING REVENUES
Natural Gas Production	$166,081	$184,522
Brokered Natural Gas	24,873	33,381
Crude Oil and Condensate	19,982	14,242
Other	1,620	1,794
Total Operating Revenues	212,556	233,939
OPERATING EXPENSES
Brokered Natural Gas Cost	21,268	29,749
Direct Operations - Field and Pipeline	22,983	25,479
Exploration	8,426	6,466
Depreciation, Depletion and Amortization	58,275	55,785
Impairment of Unproved Properties	15,223	9,307
General and Administrative	15,746	17,065
Taxes Other Than Income	10,805	12,898
Total Operating Expenses	152,726	156,749
Gain on Sale of Assets	759	12,707
INCOME FROM OPERATIONS	60,589	89,897
Interest Expense, Net	14,912	14,226
Income Before Income Taxes	45,677	75,671
Income Tax Expense	16,981	28,091
NET INCOME	$28,696	$47,580
Basic Earnings Per Share	0.28	0.46
Diluted Earnings Per Share	0.27	0.46
Weighted-Average Common Shares Outstanding	103,794	103,521
Diluted Common Shares (Note 5)	104,978	104,111
Dividends per Common Share	0.03	0.03

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Current Assets
Cash and Cash Equivalents	$28,505	$40,158
Accounts Receivable, Net (Note 3)	93,551	80,362
Income Taxes Receivable	14,019	8,909
Inventories (Note 3)	17,671	27,990
Current Derivative Contracts (Note 7)	133,418	114,686
Other Current Assets (Note 3)	6,733	9,397
Total Current Assets	293,897	281,502
Properties and Equipment, Net (Successful Efforts Method) (Note 2)	3,470,038	3,358,199
Investment in Equity Securities (Note 2)	20,636	20,636
Other Assets (Note 3)	27,346	23,064
Total Assets	3,811,917	3,683,401
Current Liabilities
Accounts Payable (Note 3)	184,019	215,588
Deferred Income Taxes	41,556	35,104
Accrued Liabilities (Note 3)	39,727	58,049
Total Current Liabilities	265,302	308,741
Long-Term Debt (Note 4)	915,000	805,000
Deferred Income Taxes	663,579	644,801
Other Liabilities (Note 3)	113,906	112,345
Total Liabilities	1,957,787	1,870,887
Commitments and Contingencies (Note 6)
Stockholders' Equity
Common Stock: Authorized -- 240,000,000 Shares of $0.10 Par Value in 2010 and 2009 Issued -- 104,112,258 Shares and 103,856,447 Shares in 2010 and 2009, respectively	10,411	10,386
Additional Paid-in Capital	706,028	705,569
Retained Earnings	1,083,056	1,057,472
Accumulated Other Comprehensive Income (Note 9)	57,984	42,436
Less Treasury Stock, at Cost: 202,200 Shares in 2010 and 2009, respectively	(3,349)	(3,349)
Total Stockholders' Equity	1,854,130	1,812,514
Total Liabilities and Stockholders' Equity	$3,811,917	$3,683,401

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheet (Unaudited) (Parenthetical)
	Mar. 31, 2010	Dec. 31, 2009
Stockholders' Equity
Common Stock, Par Value	0.1	0.1
Common Stock, Shares Authorized	240,000,000	240,000,000
Common Stock, Shares Issued	104,112,258	103,856,447
Treasury Stock, Shares	202,200	202,200

2_Condensed Consolidated Statem

Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $)
In Thousands	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$28,696	$47,580
Adjustments to Reconcile Net Income to Cash Provided by Operating Activities:
Depreciation, Depletion and Amortization	58,275	55,785
Impairment of Unproved Properties	15,223	9,307
Deferred Income Tax Expense	15,716	26,349
Gain on Sale of Assets	(759)	(12,707)
Exploration Expense	8,426	6,466
Unrealized Loss/(Gain) on Derivatives	587	(941)
Stock-Based Compensation Expense and Other	5,278	6,200
Changes in Assets and Liabilities:
Accounts Receivable, Net	(13,189)	33,869
Income Taxes Receivable	(5,110)	526
Inventories	10,319	18,059
Other Current Assets	2,664	2,201
Accounts Payable and Accrued Liabilities	(12,913)	(45,489)
Income Taxes Payable		2,238
Other Assets and Liabilities	2,884	3,091
Net Cash Provided by Operating Activities	116,097	152,534
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures	(226,977)	(171,029)
Proceeds from Sale of Assets	803	15,063
Exploration Expense	(8,426)	(6,466)
Net Cash Used in Investing Activities	(234,600)	(162,432)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings from Debt	110,000	50,000
Repayments of Debt		(40,000)
Dividends Paid	(3,112)	(3,103)
Other	(38)	149
Net Cash Provided by Financing Activities	106,850	7,046
Net Decrease in Cash and Cash Equivalents	(11,653)	(2,852)
Cash and Cash Equivalents, Beginning of Period	40,158	28,101
Cash and Cash Equivalents, End of Period	$28,505	$25,249

Financial Statement Presentatio

Financial Statement Presentation
	3 Months Ended Mar. 31, 2010
Financial Statement Presentation [Abstract]
FINANCIAL STATEMENT PRESENTATION	1. FINANCIAL STATEMENT PRESENTATION During interim periods, Cabot Oil Gas Corporation (the Company) follows the same accounting policies used in its Annual Report on Form 10-K for the year ended December31, 2009 (Form 10-K) filed with the Securities and Exchange Commission (SEC). The interim financial statements should be read in conjunction with the notes to the consolidated financial statements and information presented in the Form 10-K. In managements opinion, the accompanying interim condensed consolidated financial statements contain all material adjustments, consisting only of normal recurring adjustments, necessary for a fair statement. The results for any interim period are not necessarily indicative of the expected results for the entire year. Certain reclassifications have been made to prior year statements to conform to the current year presentation. These reclassifications have no impact on net income, the condensed consolidated balance sheet, or the condensed consolidated statement of cash flows. In 2009, the Company restructured its operations by combining the Rocky Mountain and Appalachian areas to form the North Region and by combining the Anadarko Basin with its Texas and Louisiana areas to form the South Region. Certain prior year amounts have been reclassified to reflect this reorganization. Additionally, the Company exited Canada through the sale of its reserves. Prior to the third quarter of 2009, the Company presented the geographic areas as East, Gulf Coast, West and Canada. With respect to the unaudited financial information of the Company as of March31, 2010 and for the three months ended March31, 2010 and 2009, PricewaterhouseCoopers LLP reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate report dated April30, 2010 appearing herein states that they did not audit and they do not express an opinion on that unaudited financial information. Accordingly, the degree of reliance on their report on such information should be restricted in light of the limited nature of the review procedures applied. PricewaterhouseCoopers LLP is not subject to the liability provisions of Section11 of the Securities Act of 1933 for their report on the unaudited financial information because that report is not a report or a part of the registration statement prepared or certified by PricewaterhouseCoopers LLP within the meaning of Sections7 and 11 of the Act. Recently Adopted Accounting Standards In February2010, the Financial Accounting Standards Board (FASB)issued Accounting Standards Update (ASU)No.2010-09, Subsequent Events, which amends Accounting Standards Codification (ASC) 855 to eliminate the requirement to disclose the date through which management has evaluated subsequent events in the financial statements. ASU No.2010-09 was effective upon issuance and its adoption had no impact on the Companys financial position, results of operations or cash flows. Effective January1, 2010, the Company partially adopted the provisions of FASB ASU No.2010-06, Improving Disclosures about Fair Value Measurements, which amends

Properties and Equipment, Net

Properties and Equipment, Net
	3 Months Ended Mar. 31, 2010
Properties and Equipment, Net [Abstract]
PROPERTIES AND EQUIPMENT, NET	2. PROPERTIES AND EQUIPMENT, NET Properties and equipment, net are comprised of the following: March 31, December 31, (In thousands) 2010 2009 Unproved Oil and Gas Properties $ 483,813 $ 423,373 Proved Oil and Gas Properties 4,222,500 4,118,005 Gathering and Pipeline Systems 300,958 294,755 Land, Building and Other Equipment 80,231 77,474 5,087,502 4,913,607 Accumulated Depreciation, Depletion and Amortization (1,617,464 ) (1,555,408 ) $ 3,470,038 $ 3,358,199 At March31, 2010, the Company did not have any projects that had exploratory well costs that were capitalized for a period of greater than one year after drilling. The Company recognized a $12.7million gain on sale of assets in the first quarter of 2009 primarily related to the sale of the Thornwood properties in the North region. Cash proceeds of $11.4million were received from the sale of the Thornwood properties. In April2009, the Company sold substantially all of its Canadian properties to a private Canadian company. Total consideration received from the sale was $84.4million, consisting of $64.3million in cash and $20.1million in common stock of the Canadian company (included on the Condensed Consolidated Balance Sheet as Investment in Equity Securities at March31, 2010 and December31, 2009). The common stock investment is being accounted for using the cost method. The total net book value of the Canadian properties sold was $95.0million.

Additional Balance Sheet Inform

Additional Balance Sheet Information
	3 Months Ended Mar. 31, 2010
Additional Balance Sheet Information [Abstract]
ADDITIONAL BALANCE SHEET INFORMATION	3. ADDITIONAL BALANCE SHEET INFORMATION Certain balance sheet amounts are comprised of the following: March 31, December 31, (In thousands) 2010 2009 ACCOUNTS RECEIVABLE, NET Trade Accounts $ 86,432 $ 78,656 Joint Interest Accounts 9,131 3,564 Other 1,606 1,756 97,169 83,976 Allowance for Doubtful Accounts (3,618 ) (3,614 ) $ 93,551 $ 80,362 INVENTORIES Natural Gas in Storage $ 5,723 $ 14,434 Tubular Goods and Well Equipment 11,253 14,420 Pipeline Imbalances 695 (864 ) $ 17,671 $ 27,990 OTHER CURRENT ASSETS Drilling Advances $ 2,647 $ 3,417 Prepaid Balances 4,086 5,980 $ 6,733 $ 9,397 OTHER ASSETS Rabbi Trust Deferred Compensation Plan $ 10,316 $ 10,031 Deferred Charges for Credit Agreements 10,554 11,621 Derivative Contracts 5,056 Other 1,420 1,412 $ 27,346 $ 23,064 ACCOUNTS PAYABLE Trade Accounts $ 18,454 $ 17,434 Natural Gas Purchases 4,385 3,558 Royalty and Other Owners 47,544 40,080 Capital Costs 99,487 141,122 Taxes Other Than Income 3,475 4,267 Drilling Advances 962 864 Wellhead Gas Imbalances 5,126 4,140 Other 4,586 4,123 $ 184,019 $ 215,588 ACCRUED LIABILITIES Employee Benefits $ 4,085 $ 11,222 Current Liability for Pension Benefits 488 488 Current Liability for Postretirement Benefits 981 981 Taxes Other Than Income 19,301 22,780 Interest Payable 12,478 20,205 Derivative Contracts 401 425 Other 1,993 1,948 $ 39,727 $ 58,049 OTHER LIABILITIES Accrued Pension Cost $ 40,114 $ 40,511 Postretirement Benefits Other Than Pension 16,290 14,324 Rabbi Trust Deferred Compensation Plan 17,840 19,087 Accrued Plugging and Abandonment Liability 30,278 29,676 Derivative Contracts 2,541 1,954 Other 6,843 6,793 $ 113,906 $ 112,345

Long-Term Debt

Long-Term Debt
	3 Months Ended Mar. 31, 2010
Long-Term Debt [Abstract]
LONG-TERM DEBT	4. LONG-TERM DEBT The Companys debt consisted of the following: March 31, December 31, (In thousands) 2010 2009 Long-Term Debt 7.33% Weighted-Average Fixed Rate Notes $ 170,000 $ 170,000 6.51% Weighted-Average Fixed Rate Notes 425,000 425,000 9.78% Notes 67,000 67,000 Credit Facility 253,000 143,000 $ 915,000 $ 805,000 In April2009, the Company entered into a new revolving credit facility and terminated its prior credit facility. The credit facility provides for an available credit line of $500million and contains an accordion feature allowing the Company to increase the available credit line to $600million, if any one or more of the existing banks or new banks agree to provide such increased commitment amount. The credit facility also provides for the issuance of letters of credit, which would reduce the Companys borrowing capacity. The term of the facility expires in April2012. At March31, 2010, the Company had $253million of borrowings outstanding under its revolving credit facility at a weighted-average interest rate of 3.8% and $247million available for future borrowings. In addition, the Company had letters of credit outstanding at March31, 2010 of $1.0 million. The Company believes it is in compliance in all material respects with its debt covenants.

Earnings Per Common Share

Earnings Per Common Share
	3 Months Ended Mar. 31, 2010
Earnings Per Common Share [Abstract]
EARNINGS PER COMMON SHARE	5. EARNINGS PER COMMON SHARE Basic EPS is computed by dividing net income (the numerator) by the weighted-average number of common shares outstanding for the period (the denominator). Diluted EPS is similarly calculated except that the denominator is increased using the treasury stock method to reflect the potential dilution that could occur if outstanding stock options and stock appreciation rights were exercised and stock awards were vested at the end of the applicable period. The following is a calculation of basic and diluted weighted-average shares outstanding for the three months ended March31, 2010 and 2009: Three Months Ended March 31, 2010 2009 Weighted-Average Shares Basic 103,794,072 103,520,914 Dilution Effect of Stock Options, Stock Appreciation Rights and Stock Awards at End of Period 1,183,853 589,791 Weighted-Average Shares Diluted 104,977,925 104,110,705 Weighted-Average Stock Awards and Shares Excluded from Diluted Earnings per Share due to the Anti-Dilutive Effect 286,792 933,426

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	6. COMMITMENTS AND CONTINGENCIES Contingencies The Company is a defendant in various legal proceedings arising in the normal course of its business. All known liabilities are accrued based on managements best estimate of the potential loss. While the outcome and impact of such legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings through settlement or adverse judgment will not have a material adverse effect on the Companys condensed consolidated financial position or cash flow. Operating results, however, could be significantly impacted in the reporting periods in which such matters are resolved. Commitment and Contingency Reserves When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve involves an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur approximately $1.0million of additional loss with respect to those matters in which reserves have been established. Future changes in the facts and circumstances could result in the actual liability exceeding the estimated ranges of loss and amounts accrued. Environmental Matters On November4, 2009, the Company and the Pennsylvania Department of Environmental Protection (PaDEP) entered into a single settlement agreement (Consent Order) covering a number of separate, unrelated environmental issues occurring in 2008 and 2009, including releases of drilling mud and other substances, record keeping violations at various wells and alleged natural gas contamination of 13 water wells in Susquehanna County, Pennsylvania. The Company paid an aggregate $120,000 civil penalty with respect to all the matters covered by the Consent Order, which were consolidated at the request of the PaDEP. On April15, 2010, the Company and PaDEP reached agreement on modifications to the Consent Order (Modified Consent Order). In the Modified Consent Order, PaDEP and the Company agreed that the Company will provide a permanent source of potable water to 14 households, most of which the Company has already been supplying with water. The Company agreed to plug and abandon three vertical wells in close proximity to two of the households and to bring into compliance a fourth well in the nine square mile area of concern in Susquehanna County. The Company agreed to complete these actions prior to any new well drilling permits being issued for drilling in Pennsylvania, and prior to initiating hydraulic fracturing of seven wells already drilled in the area of concern. The Company also agreed to postpone drilling of new wells in the area of concern for one year. In addition, the Company agreed to take certain other actions if requested by PaDEP, which could include the plugging and abandonment of up to eleven additional wells. In the event the PaDEP requires the Company to plug and abandon all eleven additional wells in the area of concern, the decrease in production would have a minimal impact on the Companys overall

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 31, 2010
Derivative Instruments and Hedging Activities [Abstract]
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES	7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company periodically enters into derivative commodity instruments to hedge its exposure to price fluctuations on natural gas and crude oil production. The Companys credit agreement restricts the ability of the Company to enter into commodity hedges other than to hedge or mitigate risks to which the Company has actual or projected exposure or as permitted under the Companys risk management policies and not subjecting the Company to material speculative risks. All of the Companys derivatives are used for risk management purposes and are not held for trading purposes. As of March31, 2010, the Company had 21 derivative contracts open: 13 natural gas price swap arrangements, six natural gas basis swaps and two crude oil price swap arrangements. During the first three months of 2010, the Company entered into three new derivative contracts covering anticipated crude oil production for 2010 and natural gas production for 2011. As of March31, 2010, the Company had the following outstanding commodity derivatives: Weighted-Average Commodity and Derivative Type Contract Price Volume Contract Period Derivatives designated as Hedging Instruments Natural Gas Swap $ 9.30 per Mcf 27,015 Mmcf April December 2010 Natural Gas Swap $ 6.83 per Mcf 6,432 Mmcf January December 2011 Crude Oil Swap $ 104.25 per Bbl 550 Mbbl April December 2010 Derivatives not designated as Hedging Instruments Natural Gas Basis Swap $ (0.27 ) per Mcf 16,123 Mmcf January December 2012 The change in the fair value of derivatives designated as hedges that is effective is recorded to Accumulated Other Comprehensive Income in Stockholders Equity in the Balance Sheet. The ineffective portion of the change in the fair value of derivatives designated as hedges, and the change in fair value of derivatives not designated as hedges, are recorded currently in earnings as a component of Natural Gas Production and Crude Oil and Condensate Revenue, as appropriate. The following schedules reflect the fair values of derivative instruments on the Companys condensed consolidated financial statements: Effect of derivative instruments on the Condensed Consolidated Balance Sheet Fair Value Type of Contract Asset (Liability) (In thousands) Balance Sheet Location March 31, 2010 December 31, 2009 Derivatives designated as hedging instruments Natural Gas Commodity Contracts Current Derivative Contracts $ 122,441 $ 99,151 Natural Gas Commodity Contracts Accrued Liabilities $ $ (425 ) Natural Gas Commodity Contracts Other Assets 5,056 Crude Oil Commodity Contracts Current Derivative Contracts 10,977 15,535 Crude Oil Commodity Contracts Accrued Liabilities (401 ) $ 138,073 $ 114,261 Derivatives not designated as hedging instruments

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	8. FAIR VALUE MEASUREMENTS Effective January1, 2009, the Company applied the authoritative guidance that applies to non-financial assets and liabilities required to be measured and recorded at fair value. The Company previously adopted the guidance as it relates to financial assets and liabilities that are measured at fair value on a recurring basis effective January1, 2008. This guidance established a formal framework for measuring fair values of assets and liabilities in financial statements that are already required by generally accepted accounting principles (GAAP) to be measured at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The transaction is based on a hypothetical transaction in the principal or most advantageous market considered from the perspective of the market participant that holds the asset or owes the liability. The Company utilizes market data or assumptions that market participants who are independent, knowledgeable and willing and able to transact would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally unobservable. The Company attempts to utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company is able to classify fair value balances based on the observability of those inputs. A formal fair value hierarchy was established based on the inputs used to measure fair value. The hierarchy gives the highest priority to Level 1 measurements and the lowest priority to level 3 measurements, and accordingly, Level 1 measurements should be used whenever possible. The Company has classified its assets and liabilities into these levels depending upon the data relied on to determine the fair values. For further information regarding the fair value hierarchy, refer to Note 11 of the Notes to the Consolidated Financial Statements in the Form 10-K. Non-Financial Assets and Liabilities The Company discloses or recognizes its non-financial assets and liabilities, such as asset retirement obligations and impairments of long-lived assets, at fair value on a nonrecurring basis. As none of the Companys non-financial assets and liabilities were impaired as of March31, 2010 and 2009 and no other fair value measurements were required to be recognized on a non-recurring basis, additional disclosures were not provided. Financial Assets and Liabilities Our financial assets and liabilities are measured at fair value on a recurring basis. The following fair value hierarchy table presents information about the Companys financial assets and liabilities measured at fair value on a recurring basis as of March31, 2010: Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Balance as of Identical Assets Inputs Inputs March 31, (In thou

Comprehensive Income

Comprehensive Income
	3 Months Ended Mar. 31, 2010
Comprehensive Income [Abstract]
COMPREHENSIVE INCOME	9. COMPREHENSIVE INCOME Comprehensive Income includes Net Income and certain items recorded directly to Stockholders Equity and classified as Accumulated Other Comprehensive Income. The following table illustrates the calculation of Comprehensive Income for the three months ended March31, 2010 and 2009: Three Months Ended March 31, (In thousands) 2010 2009 Net Income $ 28,696 $ 47,580 Other Comprehensive Income, net of taxes Reclassification Adjustment for Settled Contracts, net of taxes of $12,318 and $33,231, respectively (20,706 ) (55,863 ) Changes in Fair Value of Hedge Positions, net of taxes of $(21,454) and $(51,881), respectively 35,381 86,256 Defined Benefit Pension and Postretirement Plans: Amortization of Net Obligation at Transition, net of taxes of $(59) and $(59), respectively $ 99 $ 99 Amortization of Prior Service Cost, net of taxes of $(7) and $(67), respectively 14 113 Amortization of Net Loss, net of taxes of $(312) and $(359), respectively 532 645 604 816 Foreign Currency Translation Adjustment, net of taxes of $(133) and $584, respectively 228 (951 ) Total Other Comprehensive Income 15,548 30,258 Comprehensive Income $ 44,244 $ 77,838 Changes in the components of Accumulated Other Comprehensive Income, net of taxes, for the three months ended March31, 2010 were as follows: Net Gains / Defined Benefit Foreign (Losses) on Pension and Currency Cash Flow Postretirement Translation (In thousands) Hedges Plans Adjustment Total Balance at December31, 2009 $ 71,872 $ (29,349 ) $ (87 ) $ 42,436 Net change in unrealized gain on cash flow hedges, net of taxes of $(9,136) 14,675 14,675 Net change in defined benefit pension and postretirement plans, net of taxes of $(378) 645 645 Change in foreign currency translation adjustment, net of taxes of $133 228 228 Balance at March31, 2010 $ 86,547 $ (28,704 ) $ 141 $ 57,984

Pension and Other Postretiremen

Pension and Other Postretirement Benefits
	3 Months Ended Mar. 31, 2010
Pension and Other Postretirement Benefits [Abstract]
PENSION AND OTHER POSTRETIREMENT BENEFITS	10. PENSION AND OTHER POSTRETIREMENT BENEFITS The components of net periodic benefit costs for the three months ended March31, 2010 and 2009 were as follows: Three Months Ended March 31, (In thousands) 2010 2009 Qualified and Non-Qualified Pension Plans Current Period Service Cost $ 896 $ 861 Interest Cost 994 928 Expected Return on Plan Assets (1,039 ) (671 ) Amortization of Prior Service Cost 21 13 Amortization of Net Loss 591 794 Net Periodic Pension Cost $ 1,463 $ 1,925 Postretirement Benefits Other than Pension Plans Current Period Service Cost $ 392 $ 320 Interest Cost 487 398 Amortization of Prior Service Cost 167 Amortization of Net Loss 253 169 Amortization of Net Obligation at Transition 158 158 Total Postretirement Benefit Cost $ 1,290 $ 1,212 Employer Contributions The funding levels of the pension and postretirement plans are in compliance with standards set by applicable law or regulation. The Company does not have any required minimum funding obligations for its qualified pension plan in 2010. The Company previously disclosed in its financial statements for the year ended December31, 2009 that it expected to contribute $0.5million to its non-qualified pension plan and $1.0million to the postretirement benefit plan during 2010. It is anticipated that these contributions will be made prior to December31, 2010.

Stock-Based Compensation

Stock-Based Compensation
	3 Months Ended Mar. 31, 2010
Stock-Based Compensation [Abstract]
STOCK-BASED COMPENSATION	11. STOCK-BASED COMPENSATION Compensation expense charged against income for stock-based awards (including the supplemental employee incentive plan) during the three months ended March31, 2010 and 2009 was $3.2million and $5.1million, respectively, and is included in General and Administrative Expense in the Condensed Consolidated Statement of Operations. As disclosed in the Form 10-K, the Company realized a $13.8million tax benefit during the year ended December31, 2009 related primarily to the federal tax deduction in excess of book compensation cost for employee stock-based compensation for 2008 and, to a lesser extent, state tax deductions for 2007. For regular federal income tax purposes, the Company was in a net operating loss position in 2008. In accordance with ASC 718, the Company recognized this tax benefit only to the extent it reduced the Companys income taxes payable. As the Company carried back net operating losses concurrent with its 2008 tax return filing, the income tax benefit related to stock-based compensation was recorded in Additional Paid-in Capital in 2009. Due to the Companys net operating loss carryforward position, no income tax benefit related to stock-based compensation has been recognized for 2010 or 2009. For further information regarding Stock-Based Compensation or the Companys Incentive Plans, please refer to Note 10 of the Notes to the Consolidated Financial Statements in the Form 10-K. Restricted Stock Awards During the first quarter of 2010, the Compensation Committee granted 6,000 restricted stock awards with a weighted-average grant date per share value of $39.97. The fair value of restricted stock grants is based on the average of the high and low stock price on the grant date. During the first quarter of 2010, 3,000 restricted stock awards granted in prior periods vested with a weighted-average grant date per share value of $27.84. Compensation expense recorded for all unvested restricted stock awards for the three months ended March31, 2010 and 2009 was $0.4million and $0.2million, respectively. The Company used an annual forfeiture rate ranging from 0% to 7.0% based on approximately ten years of the Companys history for this type of award to various employee groups. Restricted Stock Units During the three months ended March31, 2010, 23,340 restricted stock units were granted to non-employee directors of the Company with a grant date per share value of $41.15. The fair value of these units is measured at the average of the high and low stock price on grant date and compensation expense is recorded immediately. These units immediately vest and are issued when the director ceases to be a director of the Company. The compensation cost, which reflects the total fair value of these units, recorded in the first quarter of 2010 and 2009 was $1.0 and $0.8 million, respectively. Stock Appreciation Rights During the first quarter of 2010, the Compensation Committee granted 79,550 stock appreciation rights (SARs) to employees. These awards allow the employee to receive common stock of the Company equal to the intrinsic value over the $40.53 grant date market price that may res