Employee Benefit And Retirement Plans

12 Months Ended

Apr. 30, 2012

Employee Benefit And Retirement Plans [Abstract]

Employee Benefits And Retirement Plans

Note H – Employee Benefit and Retirement Plans

Employee Stock Ownership Plan

In fiscal 1990, the Company instituted the American Woodmark Investment Savings Stock Ownership Plan. Under this plan, all employees who are at least 18 years old and have been employed by the Company for at least six consecutive months are eligible to receive Company stock through a discretionary profit-sharing contribution and a 401(k) matching contribution based upon the employee's contribution to the plan.

The Company did not make, or recognize any expenses for, discretionary profit-sharing contributions in fiscal years 2012, 2011 and 2010.

During fiscal 2012, the Company matched 401(k) contributions in the form of Company stock at 50% of an employee's annual contribution to the plan up to 4% of base earnings for an effective maximum Company contribution of 2% of base earnings.As part of the realignment of its retirement plans, the Company will match 401(k) contributions in the form of Company stock at 100% of an employee’s annual contribution to the plan up to 4% of base earnings beginning in fiscal 2013.The expense for 401(k) matching contributions for this plan was $1,284,000, $1,272,000, and $1,284,000, in fiscal years 2012, 2011 and 2010, respectively.

Pension Benefits

The Company has two defined benefit pension plans covering virtually all of the Company’s employees. These plans provide defined benefits based on years of service and final average earnings (for salaried employees) or benefit rate (for hourly employees).

In December 2011, the Company’s Board of Directors approved the freezing of both of the Company’s defined benefit pension plans, effective April 30, 2012.As a result, the Company re-measured its pension liability, updating the pension measurement assumptions, and recorded pension curtailment charges of $0.3 million.

Included in accumulated other comprehensive loss at April 30, 2012 is $45.3 million ($27.6 million net of tax) related to net unrecognized actuarial losses and unrecognized prior service costs that have not yet been recognized in net periodic pension benefit costs. The Company expects to recognize $0.9 million ($0.6 million net of tax) in net actuarial losses in net periodic pension benefit costs during fiscal 2013.The Company uses an April 30 measurement date for its benefit plans.

The following provides a reconciliation of benefit obligations, plan assets and funded status of the Company’s non-contributory defined benefit pension plans as of April 30:

		APRIL 30
(in thousands)		2012		2011
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year	$	120,059	$	107,441
Service cost		5,305		4,717
Interest cost		6,533		6,268
Actuarial (gains) and losses		26,318		4,530
Benefits paid		(3,293)		(2,897)
Curtailments		(18,658)		0
Projected benefit obligation at end of year	$	136,264	$	120,059
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$	83,334	$	78,376
Actual return on plan assets		2,805		7,855
Company contributions		2,871		0
Benefits paid		(3,293)		(2,897)
Fair value of plan assets at end of year	$	85,717	$	83,334
Funded status of the plans	$	(50,547)	$	(36,726)
Unamortized prior service cost		0		384
Unrecognized net actuarial loss		45,255		35,578
Prepaid (accrued) benefit cost	$	(5,292)	$	(764)
AMOUNTS RECOGNIZED IN THE CONSOLIDATED BALANCE SHEETS
Defined benefit pension liabilities	$	(50,547)	$	(36,726)
Accumulated other comprehensive loss		45,255		35,962
Net amount recognized	$	(5,292)	$	(764)

The accumulated benefit obligation for both pension plans was $136,264,000 and $106,600,000 at April 30, 2012 and 2011, respectively.

		PENSION BENEFITS
(in thousands)		2012		2011		2010
COMPONENTS OF NET PERIODIC PENSION BENEFIT COST
Service cost	$	5,305	$	4,717	$	3,321
Interest cost		6,533		6,268		5,619
Expected return on plan assets		(6,533)		(6,159)		(5,282)
Amortization of prior service cost		53		85		115
Curtailment loss		331		- -		- -
Recognized net actuarial loss		1,710		1,996		1,256
Pension benefit cost	$	7,399	$	6,907	$	5,029

Actuarial Assumptions:The discount rate at April 30 was used to measure the year-end benefit obligations and the earnings effects for the subsequent year. Actuarial assumptions used to determine benefit obligations and earnings effects for the pension plans follow:

	FISCAL YEARS ENDED APRIL 30
	2012		2011
WEIGHTED-AVERAGE ASSUMPTIONS TO DETERMINE BENEFIT OBLIGATIONS
Discount rate	4.66	%	5.66	%
Rate of compensation increase	*	%	4.0	%
* The rate of compensation increase is not applicable for periods beyond April 30, 2012 because the Company froze its pension plans.
	FISCAL YEARS ENDED APRIL 30
	2012		2011		2010
WEIGHTED-AVERAGE ASSUMPTIONS TO DETERMINE NET PERIODIC PENSION BENEFIT COST
Discount rate	5.66%/4.76% 1		5.91	%	7.16	%
Expected return on plan assets	8.0	%	8.0	%	8.0	%
Rate of compensation increase	4.0	%	4.0	%	4.0	%
1 The discount rate was 5.66% from May 1, 2011 to December 31, 2011 and 4.76% from January 1, 2012 to April 30, 2012.The rate changed during fiscal 2012 as a result of the required re-measurement of the Company's pension liability upon its decision to freeze its pension plans.

In fiscal 2012, the Company determined the discount rate by referencing the Aon Hewitt AA Bond Universe Yield Curve.In fiscal 2011, the Company referred to the Hewitt Above Median Yield Curve in establishing the discount rate.This change was caused by the merger of Aon and Hewitt and the corresponding elimination of the Hewitt Above Median Yield Curve.The Company believes that using a yield curve approach accurately reflects changes in the present value of liabilities over time since each cash flow is discounted at the rate at which it could effectively be settled.

In developing the expected long-term rate of return assumption for the assets of the defined benefit pension

plans, the Company evaluated input from its third party pension plan asset managers, including their review of asset class return expectations and long-term inflation assumptions.The Company also considered the related historical ten-year average asset returns at April 30, 2012.

The Company amortizes experience gains and losses, as well as the effects of changes in actuarial assumptions and plan provisions, over a period no longer than the average future working lifetime of the active participants.

Contributions:The Company funds the pension plans in amounts sufficient to meet minimum funding requirements set forth in employee benefit and tax laws plus additional amounts the Company deems appropriate.

The Company expects to contribute $7.4 million to its pension plans in fiscal 2013.The Company made contributions of $2.9 million to its pension plans in fiscal 2012.The Company was not required to make, and did not make, any contributions to the pension plans in fiscal 2011.

Estimated Future Benefit Payments: The following benefit payments, which reflect expected future service, are expected to be paid:

FISCAL YEAR	BENEFIT PAYMENTS (in thousands)
2013	$	3,846
2014		4,261
2015		4,674
2016		5,103
2017		5,479
Years 2018-2022		33,489

Plan Assets:Pension assets by major category of plan assets and the type of fair value measurement as of April 30, 2012 and 2011 are presented in the following table:

FAIR VALUE MEASUREMENTS AT APRIL 30, 2012
(in thousands)	TOTAL		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS(LEVEL 3)
Cash Equivalents	$	273	$	273	$	- -	$	- -
Equity Collective Funds:1
Equity Index Value Fund		17,094		- -		17,094		- -
Equity Index Growth Fund		16,850		- -		16,850		- -
Small Cap Index Fund		5,002		- -		5,002		- -
International Equity Fund		3,315		- -		3,315		- -
Fixed Income Collective Funds:1
Core Fixed Income Fund		25,824		- -		25,824		- -
Capital Preservation Fund		17,359		- -		17,359		- -
Total	$	85,717	$	273	$	85,444	$	0
FAIR VALUE MEASUREMENTS AT APRIL 30, 2011
(in thousands)	TOTAL		QUOTED PRICES IN ACTIVE MARKETS (LEVEL 1)		SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS(LEVEL 3)
Cash Equivalents	$	248	$	248	$	- -	$	- -
Equity Collective Funds:1
Equity Index Value Fund		16,773		- -		16,773		- -
Equity Index Growth Fund		16,957		- -		16,957		- -
Small Cap Index Fund		5,119		- -		5,119		- -
International Equity Fund		3,490		- -		3,490		- -
Fixed Income Collective Funds:1
Core Fixed Income Fund		23,499		- -		23,499		- -
Capital Preservation Fund		17,248		- -		17,248		- -
Total	$	83,334	$	248	$	83,086	$	$ - -
1 The Collective Trust Funds are valued by applying each plan's ownership percentage in the fund to the fund's net assets at fair value at the valuation date.

Investment Strategy:The Company has established formal investment policies for the assets associated with its pension plans.The objectives of the investment strategies include preservation of capital and long-term growth of capital while avoiding excessive risk.Target allocation percentages are established at an asset class level by the Pension Committee.Target allocation ranges are guidelines, not limitations, and occasionally the Pension Committee will approve allocations above or below a target range.

During a period of uncertainty in the equity and fixed income markets, the Pension Committee may suspend the Target Asset Allocation and manage the investment mix as it sees reasonable, prudent and in the best interest of the plans to better protect the value of the plan assets.

The Company’s pension plans’ weighted-average asset allocations at April 30, 2012 and 2011, by asset category, were as follows:

PLAN ASSET ALLOCATION
	2012		2012		2011
APRIL 30	TARGET		ACTUAL		ACTUAL
Equity Funds	50.0	%	49.5	%	50.8	%
Fixed Income Funds	50.0	%	50.5	%	49.2	%
Total	100.0	%	100.0	%	100.0	%

Within the broad categories outlined in the preceding table, the Company has targeted the following specific allocations as a percentage of total funds invested:20% Capital Preservation, 30% Bond, 20% Large Capital Growth, 20% Large Capital Value, 6% Small Capital and 4% International.