Note 13 - Employee Benefit Plans

12 Months Ended

Jun. 30, 2012

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

 
(13) Employee Benefit Plans

The Company applies the standards governing employer's accounting for defined benefit pension and other postretirement plans, which requires balance sheet recognition of the overfunded or underfunded status of pension and postretirement benefit plans. Under these rules, actuarial gains and losses, prior service costs or credits, and any remaining transition assets or obligations that have not been recognized under previous accounting standards must be recognized in accumulated other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost. In addition, the measurement date, the date at which plan assets and the benefit obligation are measured, is required to be the Company's fiscal year end.

Defined Benefit Plan

The Company has a noncontributory defined benefit pension plan covering eligible employees. Effective August 15, 2000, the plan was closed for new participants. Benefits under this plan generally are based on the employee’s years of service and compensation.

The following table presents the changes in the defined benefit pension plan and the fair value of the plan’s assets for the years ended June 30:

(amounts in thousands)	2013			2012
Change in benefit obligation:
Benefit obligation at beginning of year	$	21,681		$	16,653
Service cost		446			344
Interest cost		849			902
Actuarial (gain) loss		(1,721	)		4,247
Benefits paid		(582	)		(465	)
Benefit obligation at end of year	$	20,673		$	21,681
Change in plan assets:
Fair value of plan assets at beginning of year	$	12,612		$	12,350
Actual return on plan assets		1,495			99
Employer contributions		1,060			628
Benefits paid		(582	)		(465	)
Fair value of plan assets at end of year	$	14,585		$	12,612
Unfunded status	$	(6,088	)	$	(9,069	)
Amounts Recognized in Accumulated Other Comprehensive Income Loss
Minimum pension liability adjustment		4,569			6,583
Weighted average assumptions:
Discount rate at year-end		4.59	%		3.96	%
Rate of increase in compensation levels at year end		3.50	%		3.50	%
Expected return on plan assets during the year		7.50	%		7.50	%
Measurement date	June 30			June 30

Components of net periodic pension cost for the years ended June 30 are as follows:

(amounts in thousands)	2013			2012			2011
Service cost	$	446		$	344		$	370
Interest cost		849			902			849
Expected return on plan assets		(964	)		(1,045	)		(875	)
Amortization of unrecognized loss		801			350			495
Net periodic pension cost	$	1,132		$	551		$	839
Weighted average assumptions:
Discount rate		3.96	%		5.50	%		5.30	%
Expected increase in compensation levels at year end		3.50	%		4.00	%		4.00	%
Expected return on plan assets during the year		7.50	%		8.50	%		8.50	%

The estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive income (loss) into net periodic pension cost in 2014 is $0.5 million.

Plan Assets

	2013						2012
	Actual allocation		Percentage allocation			Actual allocation		Percentage allocation
(amounts in thousands)
Money market	$	573		3.93	%	$	502		3.98	%
Corporate debt securities		2,933		20.11			2,813		22.30
Government debt securities		1,863		12.77			1,899		15.06
Closed end equity mutual funds		7,691		52.73			6,342		50.29
Closed end global equity mutual funds		1,525		10.46			1,056		8.37
	$	14,585		100.00	%	$	12,612		100.00	%

Fair value of plan assets – The following table presents the fair value of the assets by asset category and their level within the fair value hierarchy as of June 30, 2013 and 2012. See note 4 for the description of each level within the fair value hierarchy.

(amounts in thousands)	Level 1		Level 2		Level 3		Total Fair Value as of June 30, 2013
Cash and cash equivalents:
Money market	$	573	$	-	$	-	$	573
Fixed income:
Corporate debt securities		2,933		-		-		2,933
Government debt securities		1,863		-		-		1,863
Mutual funds:
Closed equity mutual fund		7,691		-		-		7,691
Closed end global equity mutual fund		1,525		-		-		1,525
Total	$	14,585	$	-	$	-	$	14,585

(amounts in thousands)	Level 1		Level 2		Level 3		Total Fair Value as of June 30, 2012
Cash and cash equivalents:
Money market	$	502	$	-	$	-	$	502
Fixed income:
Corporate debt securities		2,813		-		-		2,813
Government debt securities		1,899		-		-		1,899
Mutual funds:
Closed equity mutual fund		6,342		-		-		6,342
Closed end global equity mutual fund		1,056		-		-		1,056
Total	$	12,612	$	-	$	-	$	12,612

Plan’s Investment Policy: Investments shall be made pursuant to the following objectives: 1) preserve purchasing power of plan’s assets base adjusted for inflation; 2) provide long term growth; 3) avoid significant volatility. Asset allocation shall be determined based on a long-term target allocation having 30% of assets invested in large-cap domestic equities, 11% in mid-cap domestic equities, 11% in small-cap domestic equities, 8% international equities, and 40% in the broad bond market, with little or none invested in cash. Both investment allocation and performance are reviewed periodically.

Determination of Assumed Rate of Return

The Company has selected the assumed rate of return based on the following:

	Target percentage allocation			Expected compound annualized 5-year (index) return			Expected weighted average return
Large-cap stocks		32.0	%		9.6	%		3.1	%
Mid-cap stocks		12.0			11.5			1.4
Small-cap stocks		12.0			12.4			1.5
International common stocks		9.0			8.9			0.8
Broad bond market		35.0			2.2			0.7
Total		100.0	%					7.5	%

The actual percentage allocation approximated the targeted allocation as of June 30, 2013 and 2012.

Expected Contributions

The Company had pension contributions amounting to approximately $1.1 million during fiscal 2013. Expected contributions for fiscal 2014 will be approximately $0.4 million.

Estimated Future Benefit Payments

(amounts in thousands)
The following estimated benefit payments, which reflect future service, as appropriate, are expected to be paid:

July 1, 2013– June 30, 2014	$	775
July 1, 2014– June 30, 2015		791
July 1, 2015– June 30, 2016		820
July 1, 2016– June 30, 2017		850
July 1, 2017– June 30, 2018		918
Years 2019 – 2023		5,453

Defined Contribution Plan

The Company maintains a voluntary contributory salary savings plan to which participants may contribute. The Company’s matching contribution is 100% of the participants’ contribution up to a maximum of 5% of the participants’ compensation. During fiscal
2013
,
2012
,
and
2011
the Company contributed $1.8 million
, $1.8 million
,
and
$1.8 million
,
respectively, to this plan. The Company also contributed approximately $0.2 million,
$0.2 million,
and $0.2 million
in fiscal
2013, 2012
,
and
2011
, respectively,
to purchase the Company’s stock for each participant.


Profit Sharing Plan

The Company maintains a profit sharing plan which provides an annual contribution by the Company based upon a percentage of operating earnings, as defined. Eligible employees are allocated amounts under the profit sharing plan based upon their respective earnings, as defined. Contributions under the plan were approximately $0.8 million
, $0.4 million
,
and
$1.0 million
in fiscal
2013
,
2012
,
and
2011
, respectively. While the Company intends to continue this plan, it reserves the right to terminate or amend the plan at any time.

Postretirement Health Benefit Plan
The Company has a contributory postretirement health benefit plan covering eligible employees. Effective August 15, 2000, the plan was closed for new participants. The Company provides medical coverage for current and future eligible retirees of the Company plus their eligible dependents. Employees generally become eligible for retiree medical coverage by retiring from the Company after attaining at least age 55 with 15 years of service (active employees at June 27, 1993 were eligible by retiring after attaining at least age 55 with 10 years of service).

The following table presents the changes in the postretirement benefit obligation and the funded status of the plan at June 30:

(amounts in thousands)	2013			2012
Benefit obligation at beginning of year	$	537		$	1,412
Service cost		11			19
Interest cost		16			37
Plan participants’ contributions		42			98
Amendments		-			(1,203	)
Actuarial loss (gain)		(79	)		257
Benefits paid		(33	)		(97	)
Medicare Part D prescription drug subsidy		16			14
Benefit obligation at the end of year	$	510		$	537
Fair value of plan assets	$	-		$	-
Under funded status		(510	)		(537	)
Accrued postretirement benefit cost	$	(510	)	$	(537	)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
Minimum postretirement liability adjustment	$	(1,109	)	$	(1,242	)

Net periodic postretirement benefit cost includes the following components:

(amounts in thousands)	2013			2012			2011
Service cost	$	11		$	19		$	32
Interest cost		16			37			68
Amortized actuarial gain		(209	)		(145	)		(73	)
Amortization of unrecognized prior service cost		(68	)		(72	)		(17	)
Net periodic postretirement benefit cost (benefit)	$	(250	)	$	(161	)	$	10

The weighted average discount rate used in determining the accumulated postretirement benefit obligation was 3.64%, 3.22%, and 5.20%, at the end of fiscal 2013, 2012, and 2011, respectively.

Assumed health care cost trend rates are as follows:

	2013			2012
Health care cost trend rate assumed for next year	6.0	–	8.0%	7.0	–	8.50%
Rate that the cost trend rate gradually declines to		5			5
Year that the rate reaches the rate it is assumed to remain at		2022			2020

A one-percentage point change in assumed health care cost trend rates would have the following effects:

(amounts in thousands)	1% increase	1% decrease
Effect on total of service and interest cost components	$ 2	$ 2
Effect on postretirement benefit obligation	32	29

Estimated Future Benefit Payments

Shown below are the expected benefit payments (including prescription drug benefits).

(amounts in thousands)	Gross payments
2014	$	41
2015		40
2016		42
2017		38
2018		40
Years 2019 - 2023		235