Retirement Plans

12 Months Ended

Dec. 31, 2011

Retirement Plans [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, 2011, 2010 and 2009 was as follows:

	2011			2010			2009
	Underfunded			Underfunded			Underfunded
Service cost	$	74		$	39		$	60
Interest cost		303			320			324
Expected return on assets		(309	)		(300	)		(259	)
Amortization of net loss		64			59			94
Net periodic pension cost	$	132		$	118		$	219

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

	2011			2010
Accumulated benefit obligation at beginning of year	$	5,973		$	5,757
Service cost		74			39
Interest cost		303			320
Actuarial loss		724			327
Expenses paid		(70	)		(73	)
Benefits paid		(413	)		(397	)
Accumulated benefit obligation at end of year	$	6,591		$	5,973

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

	2011			2010			2009
Discount rate for net periodic pension cost		5.25	%		5.75	%		5.75	%
Discount rate for benefit obligations		4.50	%		5.25	%		5.75	%
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:

	2011			2010
Fair value of plan assets at beginning of year	$	3,946		$	3,951
Actual return on plan assets		-0-			465
Company contributions		268			-0-
Expenses paid		(70	)		(73	)
Benefits paid		(413	)		(397	)
Fair value of plan assets at end of year	$	3,731		$	3,946

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, 2011 and 2010 are as follows:

	2011			2010
U.S. Equities securities		80	%		81	%
U.S. Debt securities		19			18
Cash		1			1
Total		100	%		100	%

The following table provides a reconciliation of the funded status of the plan at December 31, 2011 and 2010:

	2011			2010
Projected benefit obligation	$	6,591		$	5,973
Plan assets at fair value		3,731			3,946
Funded status	$	(2,860	)	$	(2,027	)

The funded status shown above is included in other long term liabilities in the Company’s Consolidated Statements of Financial Position at December 31, 2011 and 2010. The Company expects to make a contribution of $661 to the plan in 2012.

Benefit payments projected for the plan are as follows:

2012	$	401
2013		404
2014		396
2015		395
2016		392
2017-2021		1,901

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 amount to be contributed by the Company under the profit sharing plan is determined at the discretion of the Board of Directors. For 2011, the Company has recognized profit sharing plan expense of $1,678 and expects to make a contribution of that amount. The Company recognized profit sharing plan expense of $1,355 and $420 in 2010 and 2009, respectively and contributed that amount. Effective January 1, 2012 the Company made changes to 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.

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 profit sharing plan. Expense related to the SERP was approximately $784, $459, and $161 for the years ended December 2011, 2010 and 2009, respectively. The SERP liability is based on the discounted present value of expected future benefit payments using a discount rate of 4.50%. The SERP liability was approximately $4.5 million and $4.0 million at December 31, 2011 and 2010, 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.