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, 2013 and 2012:

	Pension						Other Postretirement
	2013			2012			2013			2012
Change in benefit obligation:
Benefit obligation, beginning of year	$	195,860		$	168,033		$	28,831		$	27,547
Acquisitions		9,437			-			-			-
Service cost		7,160			5,852			796			730
Interest cost		8,024			7,842			1,129			1,283
Assumption changes		(26,288	)		19,701			(10,270	)		2,508
Actuarial (gain) loss		(891	)		688			(854	)		(2,473	)
Benefit payments		(7,225	)		(6,256	)		(751	)		(764	)
Benefit obligation, end of year		186,077			195,860			18,881			28,831

Change in plan assets:
Fair value, beginning of year		116,577			100,554			-			-
Actual return		10,838			16,000			-			-
Benefit payments		(7,225	)		(6,256	)		(751	)		(764	)
Employer contributions		3,523			6,279			751			764
Fair value, end of year		123,713			116,577			-			-

Funded status		(62,363	)		(79,283	)		(18,881	)		(28,831	)
Unrecognized actuarial loss (gain)		56,148			92,940			(3,001	)		8,561
Unrecognized prior service cost		(1,935	)		(2,142	)		(1,502	)		(1,774	)
Net amount recognized	$	(8,150	)	$	11,515		$	(23,384	)	$	(22,044	)

Amounts recognized in the consolidated balance sheet:
Current liability	$	(721	)	$	(720	)	$	(925	)	$	(1,106	)
Noncurrent benefit liability		(61,642	)		(78,563	)		(17,956	)		(27,725	)
Accumulated other comprehensive loss		54,213			90,798			(4,503	)		6,787
Net amount recognized	$	(8,150	)	$	11,515		$	(23,384	)	$	(22,044	)

Amounts recognized in accumulated
other comprehensive loss:
Net actuarial loss (income)	$	56,148		$	92,940		$	(3,001	)	$	8,561
Prior service cost		(1,935	)		(2,142	)		(1,502	)		(1,774	)
Net amount recognized	$	54,213		$	90,798		$	(4,503	)	$	6,787

Based upon actuarial valuations performed as of September 30, 2013 and 2012, the accumulated benefit obligation for the Company’s defined benefit pension plans was $156,661 and $172,142 at September 30, 2013 and 2012, respectively, and the projected benefit obligation for the Company’s defined benefit pension plans was $186,077 and $195,860 at September 30, 2013 and 2012, respectively.

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

	Pension									Other Postretirement
	2013			2012			2011			2013			2012			2011

Service cost	$	7,160		$	5,852		$	5,016		$	796		$	730		$	632
Interest cost		8,024			7,842			7,510			1,129			1,283			1,254
Expected return on plan assets		(9,071	)		(7,836	)		(7,398	)		-			-			-
Amortization:
Prior service cost		(206	)		(45	)		26			(272	)		(451	)		(476	)
Net actuarial loss		7,903			6,814			5,364			439			535			407
Net benefit cost	$	13,810		$	12,627		$	10,518		$	2,092		$	2,097		$	1,817

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 2013. The Company is not required to make any significant contributions to its principal retirement plan in fiscal 2014.

Contributions made in fiscal 2013 are as follows:

Contributions	Pension		Other Postretirement

Principal retirement plan	$	2,500	$	-
Supplemental retirement plan		725		-
Other postretirement plan		-		751

Amounts of AOCL expected to be recognized in net periodic benefit costs in fiscal 2014 include:

				Other
	Pension			Postretirement
	Benefits			Benefits

Net actuarial loss	$	3,964		$	(87	)
Prior service cost		(206	)		(195	)

The measurement date of annual actuarial valuations for the Company’s principal retirement and other postretirement benefit plans was September 30 for fiscal 2013, 2012 and 2011. The weighted-average assumptions for those plans were:

	Pension									Other Postretirement
	2013			2012			2011			2013			2012			2011
Discount rate		5.00	%		4.00	%		4.75	%		5.00	%		4.00	%		4.75	%
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, 2013 and 2012 and weighted-average target allocation were as follows:

	Plan Assets at				Target
Asset Category	2013		2012		Allocation
Equity securities	$	67,954	$	63,186		55	%
Fixed income, cash and cash equivalents		36,817		35,218		30	%
Other investments		18,942		18,173		15	%
	$	123,713	$	116,577		100	%

Plan assets in the fixed income, cash and cash equivalents category include cash of 2% and 4% of plan assets at September 30, 2013 and 2012, 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 and expected future 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 2013 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, 2013 and 2012 were as follows:

	September 30, 2013
Asset Category	Level 1		Level 2		Level 3		Total
Equity securities - stocks	$	36,127	$	-	$	-	$	36,127
Equity securities - mutual funds		30,507		1,320		-		31,827
Fixed income securities		17,912		9,487		-		27,399
Cash and cash equivalents		9,418		-		-		9,418
Other investments		-		-		18,942		18,942
Total	$	93,964	$	10,807	$	18,942	$	123,713

	September 30, 2012
Asset Category	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

Changes in the fair value of Level 3 assets at September 30, 2013 and 2012 are summarized as follows:

	Fair Value,										Fair Value,
	Beginning of						Realized		Unrealized		End of
Asset Category	Period		Acquisitions		Dispositions		Gains (Losses)		Gains		Period
Other investments:
Fiscal Year Ended:
September 30, 2013	$	18,173	$	-		-	$	48	$	721	$	18,942
September 30, 2012		13,375		3,800		-		766		232		18,173

Benefit payments expected to be paid are as follows:

			Other
	Pension		Postretirement
Years ending September 30:	Benefits		Benefits

2014	$	7,080	$	926
2015		7,722		917
2016		8,190		1,004
2017		8,550		1,126
2018		9,063		1,186
2019-2023		53,709		6,275
	$	94,314	$	11,434

For measurement purposes, a rate of increase of 8.0% in the per capita cost of health care benefits was assumed for 2013; the rate was assumed to decrease gradually to 5.0% for 2030 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, 2013 by $967 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year then ended by $107. 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, 2013 by $846 and the aggregate of the service and interest cost components of net periodic postretirement benefit cost for the year then ended by $94.