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Note 6. RETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block]
Note 6. RETIREMENT BENEFIT PLANS

Pension and Other Postretirement Plans

Certain subsidiaries have pension plans covering substantially all of their employees.  These plans are noncontributory, defined benefit pension plans.  The benefits to be paid under these plans are generally based on employees’ retirement age and years of service.  The Company’s funding policies, subject to the minimum funding requirements of employee benefit and tax laws, are to contribute such amounts as determined on an actuarial basis to provide the plans with assets sufficient to meet the benefit obligations.  Plan assets consist primarily of fixed income investments, corporate equities and government securities.  The Company also provides certain health care and life insurance benefits for some of its retired employees.  The postretirement health plans are unfunded.

The Company recognizes the overfunded or underfunded positions of defined benefit postretirement plans as an asset or liability in its Consolidated Balance Sheets and recognizes as a component of other comprehensive loss the gains or losses and prior service costs or credits that arise during the period but were not recognized as components of net periodic benefit cost.

The Company expects to contribute $76,000 to the pension plans in fiscal 2014.  The Company uses a December 31 measurement date for its pension and other postretirement benefit plans.  The fair value of plan assets was determined by using quoted prices in active markets for identical assets (Level 1 inputs per the fair value hierarchy).  The fair value and allocation of pension plan assets is as follows (amounts in thousands):

 
 
December 31,
 
 
 
2013
   
2012
 
 
 
Plan Assets
   
Plan Assets
 
Asset Category
 
Fair Value
   
Percentage
   
Fair Value
   
Percentage
 
 
 
   
   
   
 
 
 
   
   
   
 
Equity Securities
 
$
670
     
63
%
 
$
550
     
58
%
Fixed Income Securities
   
272
     
25
%
   
273
     
29
%
Money Market
   
113
     
11
%
   
103
     
11
%
Other
   
14
     
1
%
   
15
     
2
%
 
 
$
1,069
     
100
%
 
$
941
     
100
%

The following table presents the funded status of the Company’s pension and postretirement benefit plans for the years ended December 31, 2013 and 2012:

 
 
Pension Benefits
   
Other Benefits
 
 
 
2013
   
2012
   
2013
   
2012
 
 
 
   
(Amounts in Thousands)
   
 
Change in projected benefit obligation:
   
   
   
 
Projected benefit obligation at beginning of year
 
$
1,454
   
$
1,395
   
$
2,769
   
$
2,699
 
Interest cost
   
56
     
64
     
41
     
123
 
Actuarial (gain) loss
   
(58
)
   
122
     
(1,598
)
   
214
 
Benefits paid
   
(30
)
   
(127
)
   
(215
)
   
(267
)
Projected benefit obligation at end of year
 
$
1,422
   
$
1,454
   
$
997
   
$
2,769
 
 
                               
Change in plan assets:
                               
Fair value of plan assets at beginning of year
 
$
941
   
$
955
   
$
-
   
$
-
 
Actual return on plan assets
   
100
     
46
     
-
     
-
 
Employer contributions
   
58
     
67
     
214
     
266
 
Benefits paid
   
(30
)
   
(127
)
   
(214
)
   
(266
)
Fair value of plan assets at end of year
 
$
1,069
   
$
941
   
$
-
   
$
-
 
 
                               
Funded status at end of year
 
$
(353
)
 
$
(513
)
 
$
(997
)
 
$
(2,769
)
 
                               
Amounts recognized in Consolidated Balance Sheets:
                               
Other non-current assets
 
$
(46
)
 
$
(36
)
 
$
-
   
$
-
 
Accrued expenses
   
-
     
-
     
146
     
231
 
Other liabilities
   
399
     
549
     
851
     
2,538
 
Total
 
$
353
   
$
513
   
$
997
   
$
2,769
 

Accumulated other comprehensive loss at December 31, 2013 and 2012 included unrecognized actuarial losses related to pension benefits of $0.6 million and $0.8 million, respectively, that had not yet been recognized in net periodic pension cost.  Accumulated other comprehensive loss at December 31, 2013 included unrecognized actuarial gains related to other benefits of $0.4 million that had not yet been recognized in net periodic pension cost.  The actuarial losses and gains included in accumulated other comprehensive loss and expected to be recognized in net periodic pension cost during the fiscal year ending December 31, 2014 are $37,000 gain for pension benefits and $17,000 loss for other benefits.  The accumulated benefit obligation for all pension plans was $1.4 million and $1.5 million at December 31, 2013 and 2012, respectively.

The following table lists the projected benefit obligation (“PBO”), accumulated benefit obligation (“ABO”) and fair value of plan assets for the pension plans with PBOs and ABOs in excess of plan assets at December 31, 2013 and 2012 (amounts in thousands):

 
 
2013
   
2012
 
 
 
Projected benefit obligation exceeds plan assets
   
Accumulated benefit obligation exceeds plan assets
   
Projected benefit obligation exceeds plan assets
   
Accumulated benefit obligation exceeds plan assets
 
 
 
   
   
   
 
Projected benefit obligation
 
$
1,261
   
$
1,261
   
$
1,284
   
$
1,284
 
Accumulated benefit obligation
 
$
1,261
   
$
1,261
   
$
1,284
   
$
1,284
 
Fair value of plan assets
 
$
863
   
$
863
   
$
735
   
$
735
 

The following table presents the assumptions used to determine the Company’s benefit obligations at December 31, 2013 and 2012 along with sensitivity of the Company’s plans to potential changes in certain key assumptions (dollars in thousands):

 
 
Pension Benefits
   
Other Benefits
 
 
 
2013
   
2012
   
2013
   
2012
 
Assumptions as of December 31:
 
   
   
   
 
Discount rates
   
4.25
%
   
4.80
%
   
4.00
%
   
4.80
%
Expected long-term return rate on assets
   
5.75
%
   
6.00
%
   
N/A
 
   
N/A
Assumed rates of compensation increases
   
N/A
   
N/A
   
N/A
 
   
N/A
Medical trend rate pre-65 (initial)
   
N/A
   
N/A
   
8.00
%
   
7.50
%
Medical trend rate post-65 (initial)
   
N/A
   
N/A
   
7.50
%
   
7.50
%
Medical trend rate (ultimate)
   
N/A
   
N/A
   
5.00
%
   
5.00
%
Years to ultimate rate pre-65
   
N/A
   
N/A
   
8
     
8
 
Years to ultimate rate post-65
   
N/A
   
N/A
   
8
     
8
 
 
                               
Impact of one-percent increase in medical trend rate:
                               
Increase in accumulated postretirement benefit obligation
                 
$
58
   
$
287
 
Increase in service cost and interest cost
                 
$
2
   
$
12
 
 
                               
Impact of one-percent decrease in medical trend rate:
                               
Decrease in accumulated postretirement benefit obligation
                 
$
53
   
$
246
 
Decrease in service cost and interest cost
                 
$
2
   
$
10
 

The discount rate was based on several factors comparing Moody’s AA Corporate rate and actuarial-based yield curves.  In determining the expected return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance.  In addition, the Company may consult with and consider the opinions of financial and other professionals in developing appropriate return benchmarks.

The following table presents components of the net periodic benefit cost for the Company’s pension and postretirement benefit plans during 2013 and 2012 (amounts in thousands):

 
 
Pension Benefits
   
Other Benefits
 
 
 
2013
   
2012
   
2013
   
2012
 
 
 
   
   
   
 
Interest cost
 
$
56
   
$
64
   
$
41
   
$
123
 
Expected return on plan assets
   
(55
)
   
(56
)
   
-
     
-
 
Amortization of net loss (gain)
   
48
     
48
     
(23
)
   
44
 
Net periodic benefit cost
 
$
49
   
$
56
   
$
18
   
$
167
 

The following table presents estimated future benefit payments (amounts in thousands):

 
 
Pension Benefits
   
Other Benefits
 
 
 
   
 
2013
 
$
37
   
$
145
 
2014
   
89
     
145
 
2015
   
270
     
113
 
2016
   
46
     
100
 
2017
   
108
     
95
 
Thereafter
   
387
     
372
 
 
 
$
937
   
$
970
 

In addition to the plans described above, in 1993 the Company’s Board of Directors approved a retirement compensation program for certain officers and employees of the Company and a retirement compensation arrangement for the Company’s then Chairman and Chief Executive Officer.  The Board approved a total of $3.5 million to fund such plans.  Participants were allowed to defer 50% of their annual compensation as well as be eligible to participate in a profit sharing arrangement in which they vest over a five year period.  In 2001, the Company limited participation to existing participants as well as discontinued any profit sharing arrangements.  Participants can withdraw from the plan upon the latter of age 62 or termination from the Company.  The obligation created by this plan is partially funded.  Assets are held in a rabbi trust invested in various mutual funds.  Gains and/or losses are earned by the participant.  For the unfunded portion of the obligation, interest was accrued at 4% each year until March 2011, when interest earnings were suspended by the Company.  The Company had $0.3 million and $0.4 million recorded in accrued compensation and other liabilities at December 31, 2013 and 2012, respectively, for this obligation.

401(k) Plans

The Company offers its employees the opportunity to voluntarily participate in the 401(k) plan administered by the Company.  The Company makes matching and other contributions in accordance with the provisions of the plan and, under certain provisions, at the discretion of the Company.  The Company suspended matching and other contributions on January 1, 2011 and will evaluate on an annual basis whether such contributions will be reinstated. No contributions were made for 2013 and 2012.

The Company also provides to the Union employees, under the terms of the collective bargaining agreement, a fixed contribution to the 401K plan administered by the Union. The contributions were $136,000 and $140,000 for 2013 and 2012, respectively.