Retirement Plans

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Retirement Plans

Retirement Plans

The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s frozen defined benefit pension plan (“The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02”) provides benefits primarily based upon a fixed amount for each year of service as defined.

Net periodic pension cost for the years ended December 31, 2012, 2011 and 2010 was as follows:

	2012			2011			2010
	Underfunded			Underfunded			Underfunded
Service cost	$	70		$	74		$	39
Interest cost	287			303			320
Expected return on assets	(306		)	(309		)	(300		)
Amortization of net loss	101			64			59
Net periodic pension cost	$	152		$	132		$	118

The reconciliation of changes in projected benefit obligations are as follows:

	2012			2011
Accumulated benefit obligation at beginning of year	$	6,591		$	5,973
Service cost	70			74
Interest cost	287			303
Actuarial loss	600			724
Expenses paid	(31		)	(70		)
Benefits paid	(408		)	(413		)
Accumulated benefit obligation at end of year	$	7,109		$	6,591

The assumptions used to determine the net periodic benefit cost and benefit obligations are as follows:

	2012		2011		2010
Discount rate for net periodic pension cost	4.50	%	5.25	%	5.75	%
Discount rate for benefit obligations	3.75	%	4.50	%	5.25	%
Expected long-term return of plan assets	8.00	%	8.00	%	8.00	%

The expected long-term rate of return assumption is based on the actual historical rate of return on assets adjusted to reflect recent market conditions and future expectation consistent with the Company’s current asset allocation and investment policy. This policy provides for aggressive capital growth balanced with moderate income production. The inherent risks of equity exposure exists, however, returns generally are less volatile than maximum growth programs. The assumed discount rates represent long-term high quality corporate bond rates commensurate with the liability duration of its plan.

The following table reflects the change in the fair value of the plan’s assets:

	2012			2011
Fair value of plan assets at beginning of year	$	3,731		$	3,946
Actual return on plan assets	575			—
Company contributions	661			268
Expenses paid	(31		)	(70		)
Benefits paid	(408		)	(413		)
Fair value of plan assets at end of year	$	4,528		$	3,731

The fair value of plan assets are all categorized as level 1 and were determined based on period end closing prices in active markets. The weighted average asset allocations at December 31, 2012 and 2011 are as follows:

	2012		2011
U.S. Equities securities	79	%	80	%
U.S. Debt securities	20	%	19	%
Cash	1	%	1	%
Total	100	%	100	%

The following table provides a reconciliation of the funded status of the plan at December 31, 2012 and 2011:

	2012			2011
Projected benefit obligation	$	7,109		$	6,591
Plan assets at fair value	4,528			3,731
Funded status	$	(2,581	)	$	(2,860	)

The funded status shown above is included in other long term liabilities in the Company’s Consolidated Statements of Financial Position at December 31, 2012 and 2011. The Company expects to make a contribution of $364 to the plan in 2013.

Benefit payments projected for the plan are as follows:

2013	$	416
2014	405
2015	399
2016	397
2017	391
2018-2022	1,911

Effective January 1, 2012 the Company changed its profit sharing and 401(k) plan which includes an increase in the Company’s matching contributions and the frequency of the Company’s match. The Myers Industries Profit Sharing and 401(k) Plan is maintained for the Company’s U.S. based employees, not covered under defined benefit plans, who have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of $2,609 in 2012. The Company recognized profit sharing plan expense of $1,678 and $1,355 in 2011 and 2010, respectively, and contributed that amount.

In addition, the Company has a Supplemental Executive Retirement Plan (“SERP”) to provide certain participating senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Expense related to the SERP was approximately $477, $784, and $459 for the years ended December 2012, 2011 and 2010, respectively. The SERP liability is based on the discounted present value of expected future benefit payments using a discount rate of 3.75%. The SERP liability was approximately $4.5 million and $4.5 million at December 31, 2012 and 2011, respectively, and is included in accrued employee compensation and Other Long-Term Liabilities on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.