PENSION AND OTHER POSTRETIREMENT PLANS

12 Months Ended

Sep. 30, 2012

PENSION AND OTHER POSTRETIREMENT PLANS [Abstract]

PENSION AND OTHER POSTRETIREMENT PLANS

11. PENSION AND OTHER POSTRETIREMENT PLANS:

The Company provides defined benefit pension and other postretirement plans to certain employees. The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans as of the Company's actuarial valuation as of September 30, 2012 and 2011:

	Pension						Other Postretirement
	2012			2011			2012			2011
Change in benefit obligation:
Benefit obligation, beginning of year	$	168,033		$	145,909		$	27,547		$	24,400
Service cost		5,852			5,016			730			632
Interest cost		7,842			7,510			1,283			1,254
Assumption changes		19,701			16,501			2,508			2,285
Actuarial loss (gain)		688			(887	)		(2,473	)		(226	)
Benefit payments		(6,256	)		(6,016	)		(764	)		(798	)
Benefit obligation, end of year		195,860			168,033			28,831			27,547
Change in plan assets:
Fair value, beginning of year		100,554			94,869			-			-
Actual return		16,000			1,300			-			-
Benefit payments		(6,256	)		(6,016	)		(764	)		(798	)
Employer contributions		6,279			10,401			764			798
Fair value, end of year		116,577			100,554			-			-
Funded status		(79,283	)		(67,480	)		(28,831	)		(27,547	)
Unrecognized actuarial loss		92,940			85,868			8,561			8,462
Unrecognized prior service cost		(2,142	)		(525	)		(1,774	)		(1,607	)
Net amount recognized	$	11,515		$	17,863		$	(22,044	)	$	(20,692	)
Amounts recognized in the consolidated balance sheet:
Current liability	$	(720	)	$	(766	)	$	(1,106	)	$	(1,130	)
Noncurrent benefit liability		(78,563	)		(66,714	)		(27,725	)		(26,417	)
Accumulated other comprehensive loss		90,798			85,343			6,787			6,855
Net amount recognized	$	11,515		$	17,863		$	(22,044	)	$	(20,692	)
Amounts recognized in accumulated
other comprehensive loss:
Net actuarial loss	$	92,940		$	85,868		$	8,561		$	8,462
Prior service cost		(2,142	)		(525	)		(1,774	)		(1,607	)
Net amount recognized	$	90,798		$	85,343		$	6,787		$	6,855

Based upon actuarial valuations performed as of September 30, 2012 and 2011, the accumulated benefit obligation for the Company's defined benefit pension plans was $172,142 and $149,846 at September 30, 2012 and 2011, respectively, and the projected benefit obligation for the Company's defined benefit pension plans was $195,860 and $168,033 at September 30, 2012 and 2011, respectively.

Net periodic pension and other postretirement benefit cost for the plans included the following:

	Pension									Other Postretirement
	2012			2011			2010			2012			2011			2010
Service cost	$	5,852		$	5,016		$	4,489		$	730		$	632		$	691
Interest cost		7,842			7,510			7,495			1,283			1,254			1,383
Expected return on plan assets		(7,836	)		(7,398	)		(6,982	)		-			-			-
Amortization:
Prior service cost		(45	)		26			24			(451	)		(476	)		(726	)
Net actuarial loss		6,814			5,364			5,395			535			407			521
Net benefit cost	$	12,627		$	10,518		$	10,421		$	2,097		$	1,817		$	1,869

Benefit payments under the Company's principal retirement plan are made from plan assets, while benefit payments under the supplemental retirement plan and postretirement benefit plan are made from the Company's operating cash. Under I.R.S. regulations, the Company was not required to make any significant contributions to its principal retirement plan in fiscal 2012. The Company is not required to make any significant contributions to its principal retirement plan in fiscal 2013.

Contributions made in fiscal 2012 are as follows:

Contributions	Pension		Other Postretirement
Principal retirement plan	$	5,000	$	-
Supplemental retirement plan		728		-
Other postretirement plan		-		953

Amounts of AOCL expected to be recognized in net periodic benefit costs in fiscal 2013 include:

				Other
	Pension			Postretirement
	Benefits			Benefits
Net actuarial loss	$	7,316		$	439
Prior service cost		(206	)		(272	)

The measurement date of annual actuarial valuations for the Company's principal retirement and other postretirement benefit plans was September 30 for fiscal 2012, 2011 and 2010. The weighted-average assumptions for those plans were:

	Pension									Other Postretirement
	2012			2011			2010			2012			2011			2010
Discount rate		4.00	%		4.75	%		5.25	%		4.00	%		4.75	%		5.25	%
Return on plan assets		8.00			8.00			8.00			-			-			-
Compensation increase		3.50			3.50			3.50			-			-			-

The underlying basis of the investment strategy of the Company's defined benefit plans is to ensure the assets are invested to achieve a positive rate of return over the long term sufficient to meet the plans' actuarial interest rate and provide for the payment of benefit obligations and expenses in perpetuity in a secure and prudent fashion, maintain a prudent risk level that balances growth with the need to preserve capital, diversify plan assets so as to minimize the risk of large losses or excessive fluctuations in market value from year to year, achieve investment results over the long term that compare favorably with other pension plans and appropriate indices. The Company's investment policy, as established by the Company's pension board, specifies the types of investments appropriate for the plans, asset allocation guidelines, criteria for the selection of investment managers, procedures to monitor overall investment performance as well as investment manager performance. It also provides guidelines enabling plan fiduciaries to fulfill their responsibilities.

The Company's primary defined benefit pension plan's weighted-average asset allocation at September 30, 2012 and 2011 and weighted-average target allocation were as follows:

	Plan Assets at				Target
Asset Category	2012		2011		Allocation
Equity securities	$	63,186	$	50,147		50	%
Fixed income, cash and cash equivalents		35,218		37,032		30	%
Other investments		18,173		13,375		20	%
	$	116,577	$	100,554		100	%

Plan assets in the fixed income, cash and cash equivalents category include cash of 4% and 9% of plan assets at September 30, 2012 and 2011, respectively, which reflects cash contributions to the Company's principal pension plan immediately prior to the end of each fiscal year.

Based on an analysis of the historical performance of the plan's assets and information provided by its independent investment advisor, the Company set the long-term rate of return assumption for these assets at 8.0% in 2012 for purposes of determining pension cost and funded status under current guidance. The Company's discount rate assumption used in determining the present value of the projected benefit obligation is based upon published indices.

The Company categorizes plan assets within a three level fair value hierarchy (see Note 3 for a further discussion of the fair value hierarchy). The valuation methodologies used to measure the fair value of pension assets, including the level in the fair value hierarchy in which each type of pension plan asset is classified as follows.

Equity securities consist of direct investments in the stocks of publicly traded companies. Such investments are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are classified as Level 1.

Mutual funds are valued at the net asset values of shares held by the Plan at year end. As such, these mutual fund investments are classified as Level 1.

Fixed income securities consist of publicly traded fixed interest obligations (primarily U.S. government notes and corporate and agency bonds). Such investments are valued through consultation and evaluation with brokers in the institutional market using quoted prices and other observable market data. As such, U.S. government notes are included in Level 1, and the remainder of the fixed income securities is included in Level 2.

Cash and cash equivalents consist of direct cash holdings and short-term money market mutual funds. These values are valued based on cost, which approximates fair value, and as such, are classified as Level 1.

Other investments consist primarily of real estate, commodities, private equity holdings and hedge fund investments. These holdings are valued by investment managers based on the most recent information available. The valuation information used by investment managers may not be readily observable. As such, these investments are classified as Level 3.

The Company's defined benefit pension plans' asset categories at September 30, 2012 and 2011 were as follows:

	September 30, 2012
AssetCategory	Level 1		Level 2		Level 3		Total
Equity securities - stocks	$	34,127	$	-	$	-	$	34,127
Equity securities - mutual funds		29,059		-		-		29,059
Fixed income securities		10,523		12,707		-		23,230
Cash and cash equivalents		11,988		-		-		11,988
Other investments		-		-		18,173		18,173
Total	$	85,697	$	12,707	$	18,173	$	116,577

	September 30, 2011
AssetCategory	Level 1		Level 2		Level 3		Total
Equity securities - stocks	$	23,954	$	-	$	-	$	23,954
Equity securities - mutual funds		26,193		-		-		26,193
Fixed income securities		7,197		14,421		-		21,618
Cash and cash equivalents		15,414		-		-		15,414
Other investments		-		-		13,375		13,375
Total	$	72,758	$	14,421	$	13,375	$	100,554

Changes in the fair value of Level 3 assets at September 30, 2012 and 2011 are summarized as follows:

	Fair Value,											Fair Value,
	Beginning of						Realized			Unrealized		End of
AssetCategory	Period		Acquisitions		Dispositions		Gains (Losses)			Gains		Period
Otherinvestments:
Fiscal Year Ended:
September 30, 2012	$	13,375	$	3,800	$	-	$	766		$	232	$	18,173
September 30, 2011		12,212		-		-		(90	)		1,073		13,375

Benefit payments expected to be paid are as follows:

			Other
	Pension		Postretirement
Years ending September 30:	Benefits		Benefits
2013	$	6,307	$	1,106
2014		6,667		1,203
2015		6,981		1,284
2016		7,402		1,347
2017		7,879		1,478
2018-2022		47,811		9,394
	$	83,047	$	15,812

For measurement purposes, a rate of increase of 9.0% in the per capita cost of health care benefits was assumed for 2012; the rate was assumed to decrease gradually to 5.0% for 2031 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported. An increase in the assumed health care cost trend rates by one percentage point would have increased the accumulated postretirement benefit obligation as of September 30, 2012 by $1,447 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year then ended by $122. A decrease in the assumed health care cost trend rates by one percentage point would have decreased the accumulated postretirement benefit obligation as of September 30, 2012 by $1,283 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year then ended by $107.