Note 11 - Benfit Plans

12 Months Ended

Dec. 31, 2012

Pension and Other Postretirement Benefits Disclosure [Text Block]

11.           BENEFIT PLANS

Chyron has a domestic defined benefit pension plan (the "U.S. Pension Plan") covering substantially all U.S. employees meeting minimum eligibility requirements. Benefits paid to retirees are based upon age at retirement, years of credited service and average compensation. The U.S. Pension Plan was closed to new employees that joined the Company on or after October 1, 2006. Pension expense is actuarially determined using the projected unit credit method. The Company's policy is to fund the minimum contributions required under the Employee Retirement Income Security Act (ERISA), and, subject to cash flow levels, the Company may choose to make a discretionary contribution to the Pension Plan to reduce the unfunded liability. During 2012, the Company made an additional contribution of $0.39 million in order to exceed an 80% funding level as measured at January 1, 2012. The Company also made required contributions in 2012 of $0.5 million. Based on current assumptions, the Company expects to make approximately $0.3 million in contributions during 2013. The Company uses a December 31 measurement date to determine pension benefit obligations.

Benefit plan information for the U.S. Pension Plan is as follows (in thousands):

	2012			2011
Reconciliation of projected benefit obligation:
Obligation at January 1	$	7,535		$	5,866
Service cost		482			401
Interest cost		360			331
Actuarial loss		1,164			1,215
Benefit payments		(62	)		(278	)
Obligation at December 31	$	9,479		$	7,535
Reconciliation of fair value of plan assets:
Fair value of plan assets at January 1	$	4,088		$	3,643
Actual return on plan assets		407			35
Employer contributions		895			688
Benefit payments		(62	)		(278	)
Fair value of plan assets at December 31	$	5,328		$	4,088
Funded Status:
Unfunded status at December 31	$	(4,151	)	$	(3,447	)
Projected benefit obligation	$	9,479		$	7,535
Accumulated benefit obligation		8,701			6,928
Fair value of plan assets		5,328			4,088
Amounts recognized in consolidated balance sheets:
Prior service credit	$	7		$	19
Net loss		(3,093	)		(2,194	)
Accumulated other comprehensive loss		(3,086	)		(2,175	)
Net periodic benefit cost in excess of accumulated contributions		(1,065	)		(1,272	)
Net amount recognized in consolidated balance sheet	$	(4,151	)	$	(3,447	)

	2012			2011
Components of net periodic pension cost:
Service cost	$	482		$	401
Interest cost		360			331
Expected return on plan assets		(345	)		(294	)
Amortization of net loss		203			39
Amortization of prior service credit		(11	)		(25	)
Net periodic benefit cost		689			452
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net loss		1,102			1,473
Amortization of net loss		(203	)		(39	)
Amortization of prior service cost		11			25
Total loss recognized in other comprehensive (income) loss		910			1,459
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	1,599		$	1,911

In 2013, the Company expects that a net loss of $246 thousand and a prior service cost of $7 thousand will be amortized from accumulated other comprehensive income (loss) into net periodic pension cost.

	2012			2011
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate		4.61	%		5.61	%
Expected long-term return on plan assets		7.50	%		7.50	%
Rate of compensation increase			(1)		2.00	%
Weighted-average assumptions used to determine pension benefit obligation as of December 31:
Discount rate		4.03	%		4.61	%
Rate of compensation increase			(1)		2.00	%

(1) 0.0% in 2012 and 2013, 2.0% thereafter

The assumed expected long-term rate of return on plan assets is an estimate based on the Company's plan investment guidelines which specify the Company's strategic asset allocation, historical performance for the various asset classes in its strategic allocation, and its expectations for long-term rates of return for these various asset classes. The Company recognizes that market performance varies and that its assumed expected long-term rate of return may not be meaningful during some periods. The Company re-evaluates its assumed expected long-term rate of return on plan assets annually through discussion with its plan investment manager. The Company selects that return which it believes best reflects a reasonable expected return on funds invested and to be invested to provide for the benefits included in the projected benefit obligation. The overall investment objective for the pension plan investment portfolio is to achieve the highest level of return with the least amount of risk. The Company's actual pension plan asset allocations at December 31, 2012 and 2011 are as follows:

	Target Allocation Range			Actual
	(+/- 1 to 5%)			Allocation
Asset Category	2012			2012			2011
Equity securities		60	%		58	%		58	%
Debt securities		35	%		33	%		33	%
Cash and cash equivalents		5	%		9	%		9	%

The following table presents estimated future benefit payments over the next ten years (in thousands):

2013	$	369
2014		220
2015		183
2016		301
2017		412
2018 to 2022		2,995

The amortization of gains and losses is determined by using a 10% corridor of the greater of the market-related value of assets and the projected benefit obligation. Total unamortized gains and losses in excess of the corridor are amortized into income over the average remaining future service. Prior service costs/(benefits) are amortized over the average remaining future service at the time the prior service was established. Average remaining future service as of January 1, 2012 was about 9 years.

The following table sets forth by level, within the fair value hierarchy, the Plan's assets measured at fair value on a recurring basis as of December 31 (in thousands):

	2012
	Level 1		Level 2		Level 3		Total
Government and other fixed income securities	$	601	$	1,158	$	-	$	1,759
Equities		3,063		-		-		3,063
	$	3,664	$	1,158	$	-	$	4,822

	2011
	Level 1		Level 2		Level 3		Total
Government and other fixed income securities	$	335	$	1,013	$	-	$	1,348
Equities		2,386		-		-		2,386
	$	2,721	$	1,013	$	-	$	3,734

The Company has adopted a 401(k) Plan exclusively for the benefit of participants and their beneficiaries. All U.S. employees of Chyron are eligible to participate in the 401(k) Plan. An employee may elect to contribute a percentage of his or her current compensation to the 401(k) Plan, subject to a maximum of 20% of compensation or the Internal Revenue Service annual contribution limit, whichever is less. The Company may make discretionary matching contributions of the compensation contributed by a participant. The discretionary matching contribution is two-thirds of the first 6% of qualifying compensation. The Company has the option of making the matching contributions in cash or through shares of Company common stock. Employees will vest in the matching contributions in equal increments annually over three years. During 2012 and 2011, the Company match was substantially made in the form of newly issued Chyron common stock. As a result, the Company issued 233 thousand and 130 thousand shares of common stock, in lieu of an aggregate cash match of $288 thousand and $265 thousand during 2012 and 2011, respectively.

The Company also has several U.K. employees that are provided with pension benefits through the Chyron International Corporation Group Personal Pension Plan (the "CIC Pension Plan"). Under the CIC Pension Plan, each member has an individual account within the defined contribution plan and the Company contributes monthly an amount equal to approximately 3% of his/her monthly salary.