POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

12 Months Ended

Dec. 31, 2011

POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

Note 11 — POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

The Company sponsors several defined postretirement benefit plans that cover a majority of salaried and a portion of nonunion hourly employees.  These plans provide health care benefits and, in some instances, provide life insurance benefits.  Postretirement health care plans are contributory, with retiree contributions adjusted annually.  Life insurance plans are noncontributory.

Net periodic postretirement benefit costs included the following components for the years ended December 31, 2011, 2010, and 2009:

(in thousands)	2011			2010			2009
Service cost - benefits earned during the year	$	327		$	305		$	224
Interest cost on accumulated postretirement benefit obligation	440			446			610
Amortization of prior service (credit)	(642		)	(750		)	(454		)
Recognized actuarial net (gain)	(436		)	(464		)	(524		)
Net periodic postretirement benefit (income)	$	(311	)	$	(463	)	$	(144	)

Changes in benefit obligation and plan assets, and a reconciliation of the funded status at December 31, 2011 and 2010, are as follows:

(in thousands)	2011			2010
Change in Benefit Obligation
Benefit obligation at the beginning of the year	$	7,807		$	9,987
Service cost	327			305
Interest cost	440			446
Participant contributions	582			534
Plan amendments	946			(1,791		)
Actuarial (gain) or loss	1,158			(6		)
Benefits paid	(1,844		)	(1,668		)
Benefit obligation at the end of the year	$	9,416		$	7,807
Change in Plan Assets
Fair value of plan assets at the beginning of the year	$	—		$	—
Employee contributions	582			534
Employer contribution	1,262			1,134
Benefits paid	(1,844		)	(1,668		)
Fair value of plan assets at the end of the year	$	—		$	—
Funded (unfunded) status at year end:	$	(9,416	)	$	(7,807	)

(in thousands)	2011			2010
Amount recognized in consolidated balance sheet consists of:
Accrued benefit liability, current	$	(707	)	$	(677	)
Accrued benefit liability, non-current	(8,710		)	(7,130		)
Deferred tax liability	(3,080		)	(4,311		)
Accumulated other comprehensive income	(5,202		)	(7,153		)
Net amount recognized in consolidated balance sheet	$	(17,699	)	$	(19,271	)

Accumulated other comprehensive income related to other postretirement benefit plans is as follows:

(in thousands)	2011			2010
Unrecognized net actuarial losses (gains)	$	(4,589	)	$	(6,183	)
Unrecognized net prior service costs (benefits)	(3,693		)	(5,281		)
Tax expense (benefit)	3,080			4,311
Accumulated other comprehensive loss (income), end of year	$	(5,202	)	$	(7,153	)

Estimated amounts in accumulated other comprehensive income expected to be reclassified to net period cost during 2012 are as follows:

(in thousands)
Net actuarial (gains) losses	$	(304	)
Net prior service costs (benefits)	(643		)
Total	$	(947	)

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

(in thousands)	Benefit Payments
2012	$	706
2013	676
2014	702
2015	724
2016	736
Years 2017-2021	4,012

The employer contributions for the years ended December 31, 2011 and 2010, were $1.2 million and $1.1 million, respectively.  The expected contribution for 2012 is $0.7 million which is expected to satisfy plan funding requirements.

The health care cost trend rate assumption affects the amounts reported.  For measurement purposes, the assumed annual rate of increase in the per capita cost of covered health care benefits was 8.0 percent for 2011 and was 8.5 percent for 2010; each year’s estimated rate was assumed to decrease gradually to 5.0 percent and remain at that level thereafter.  The annual incremental decrease was assumed to be one-half percent for both 2011 and 2010.  A one-percentage point change in assumed health care trends would have the following effects:

	One Percentage		One Percentage
(in thousands)	Point Increase		Point Decrease
Effect on total of service and interest cost components for 2011	$	4	$	(3	)
Effect on postretirement benefit obligation at December 31, 2011	65		(60		)

The Company’s actuarial valuation date is December 31.  The weighted-average discount rates used to determine the actuarial present value of the net postretirement projected benefit obligation for the years ended December 31, 2011 and 2010 were 4.25 percent and 5.25 percent, respectively.  The weighted-average discount rates used to determine the net postretirement benefit cost was 5.25 percent, 5.75 percent, and 6.00 percent for the years ended December 31, 2011, 2010, and 2009, respectively.