Postretirement Benefits

6 Months Ended

Jun. 30, 2011

Postretirement Benefits [Abstract]

Postretirement Benefits

Postretirement Benefits

Alon has three defined benefit pension plans covering substantially all of its refining and unbranded marketing segment employees. The benefits are based on years of service and the employee’s final average monthly compensation. Alon’s funding policy is to contribute annually not less than the minimum required nor more than the maximum amount that can be deducted for federal income tax purposes. Contributions are intended to provide not only for benefits attributed to service to date but also for those benefits expected to be earned in the future. Alon’s estimated contributions during 2011 to its pension plans has not changed significantly from amounts previously disclosed in Alon’s consolidated financial statements for the year ended December 31, 2010. For the six months ended June 30, 2011 and 2010, Alon contributed $2,340 and $1,940, respectively, to its qualified pension plans.

The components of net periodic benefit cost related to Alon’s benefit plans were as follows for the six months ended June 30, 2011 and 2010:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Components of net periodic benefit cost:
Service cost	$	915		$	1,019		$	1,829		$	2,037
Interest cost	1,035			946			2,070			1,892
Expected return on plan assets	(933		)	(905		)	(1,866		)	(1,810		)
Amortization of net loss	448			385			896			771
Net periodic benefit cost	$	1,465		$	1,445		$	2,929		$	2,890