Employee Benefit Plans

6 Months Ended

Jun. 30, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

Note 12 — Employee Benefit Plans

The Company is the sponsor of two defined benefit pension plans that cover certain employees at designated repair facilities. One plan, which covers certain salaried and hourly employees, is frozen and no additional benefits are accruing thereunder. The second plan, which covers only certain of the Company’s union employees, is currently active and benefits will continue to accrue thereunder until January 1, 2012, when the plan will be frozen. The assets of all funded plans are held by independent trustees and consist primarily of equity and fixed income securities. The Company is also the sponsor of an unfunded, non-qualified supplemental executive retirement plan (SERP) in which several of its current and former employees are participants. The SERP is frozen and no additional benefits are accruing thereunder.

The Company also provides postretirement healthcare benefits for certain of its retired employees and life insurance benefits for certain of its union employees. Employees may become eligible for healthcare benefits and union employees may become eligible for life insurance benefits, only if they retire after attaining specified age and service requirements. These benefits are subject to deductibles, co-payment provisions and other limitations. During 2009, postretirement healthcare premium rates for retirees were increased. This change resulted in a decrease to the postretirement benefit liability of $2.8 million that was recorded to accumulated other comprehensive income as of December 31, 2009. This adjustment is being recognized over the remaining weighted-average service period of active plan participants.

The components of net periodic benefit cost for the pension and postretirement plans are as follows:

	Pension Benefits
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(in thousands)						(in thousands)
Service cost	$	79		$	67		$	158		$	134
Interest cost		254			256			508			512
Expected loss on plan assets		(249	)		(221	)		(499	)		(442	)
Amortization of unrecognized net loss		94			86			189			172
Amortization of unrecognized prior service cost		2			2			4			4
Adjustment to benefits		—			14			—			28
Net periodic benefit cost recognized	$	180		$	204		$	360		$	408

	Postretirement Benefits
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(in thousands)						(in thousands)
Service cost	$	—		$	—		$	1		$	1
Interest cost		1			2			2			3
Amortization of prior service credit		(98	)		(98	)		(196	)		(196	)
Amortization of gain		(22	)		(25	)		(45	)		(50	)
Net periodic income recognized	$	(119	)	$	(121	)	$	(238	)	$	(242	)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
	(in thousands)						(in thousands)
Pension	$	180		$	204		$	360		$	408
Postretirement		(119	)		(121	)		(238	)		(242	)
Total net periodic benefit cost recognized for all plans	$	61		$	83		$	122		$	166

The Company also maintains qualified defined contribution plans, which provide benefits to ARI’s employees based on employee contributions, years of service, and employee earnings with discretionary contributions allowed. Expenses related to these plans were $0.2 million for both the three months ended June 30, 2011 and 2010. Expenses related to these plans were $0.3 million and $0.4 million for the six months ended June 30, 2011 and 2010, respectively.