Employee Benefit Plans

12 Months Ended

Mar. 31, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

(12) EMPLOYEE BENEFIT PLANS

The Company maintains a 401K retirement savings plan (Plan) for U.S. employees who meet certain service requirements. The Plan provides for voluntary contributions by eligible U.S. employees up to a specified maximum percentage of gross pay. At the discretion of the Company's Board of Directors, the Company may contribute a specified matching percentage of the employee contributions. The Company also makes contributions to various retirement savings plans for Australian employees as required by law equal to 9% of gross pay, and for South African employees under a voluntary plan equal to 8% of gross pay. Company contributions to the U.S., Australia, South Africa and China retirement savings plans were $2,864, $2,671 and $2,403 in 2012, 2011 and 2010, respectively.

The Company also makes contributions to a retirement savings plan for Italian employees as required by collective national labor agreements equal to either 1.5% or 4% of gross pay for all those employees who elect voluntarily to adhere to such plan by paying a similar portion out of their gross pay. The percentage applicable to each employee depends upon the employment level of the individual employee. Company contributions to such retirement savings plans were $85 and $25 in 2012 and 2011, respectively.

The Company has a single employer defined benefit pension plan (Pension Plan) which covers eligible union employees at its Norway, Michigan plant who were hired prior to July 14, 1998. The Pension Plan provides benefits based on a flat payment formula and years of credited service at a normal retirement age of 65. The benefits are actuarially reduced for early retirement. An active participant may annually elect to irrevocably freeze their benefits to participate in the Company 401K retirement savings plan.

The Company also has a post retirement health and welfare plan (Health Plan) that upon retirement provides health benefits to certain active Norway plant employees hired on or before July 31, 1998. The Health Plan allows participants to retire as early as age 62 and remain in the active medical plan until reaching Medicare eligibility at age 65. The Health Plan has no assets and the Company pays benefits as incurred.

The Company used a March 31 measurement date (the fiscal year end) for the Pension Plan and Health Plan in 2012, 2011 and 2010. Reconciliation of the Plans' funded status and obligations as of March 31, 2012 and 2011 consisted of the following:

	Pension Plan
	2012			2011			2010
Net periodic cost components
Service cost	$	29		$	27		$	25
Interest cost		85			87			80
Expected (return) or loss on plan assets		(93	)		(102	)		(214	)
Recognized net actuarial gain or (loss)		—			24			154
Amortization of net actuarial loss		23			15			36
Net periodic pension cost	$	44		$	51		$	81
	Health Plan
	2012			2011			2010
Net periodic cost components
Service cost	$	26		$	26		$	25
Interest cost		31			33			32
Expected (return) or loss on plan assets		—			—			—
Recognized net actuarial gain or (loss)		—			—			—
Amortization of net actuarial loss		—			—			—
Net periodic pension cost	$	57		$	59		$	57

	Pension Plan						Health Plan
	2012			2011			2012			2011
Change in benefit obligation
Projected benefit obligation at beginning of year	$	1,490		$	1,404		$	631		$	602
Service cost		29			27			26			26
Interest cost		85			87			31			33
Actuarial loss/(gain)		419			116			(105	)		(30	)
Amendments		14			—			—			—
Benefits paid		(254	)		(142	)		—			—
Plan expenses paid		—			(2	)		—			—
Projected benefit obligation at end of year	$	1,783		$	1,490		$	583		$	631
Change in plan assets
Fair value of plan assets at beginning of year	$	1,150		$	975		$	—		$	—
Actual return on plan assets		19			102			—			—
Employer contributions		205			217			—			—
Benefits paid		(254	)		(142	)		—			—
Plan expenses paid		—			(2	)		—			—
Fair value of plan assets at end of year	$	1,120		$	1,150		$	—		$	—
Reconciliation of funded status
Funded status	$	(663	)	$	(340	)	$	(583	)	$	(631	)
Unrecognized net actuarial (gain)		—			—			(125	)		(19	)
Accrued cost at end of year	$	(663	)	$	(340	)	$	(708	)	$	(650	)
Weighted average assumptions
Discount rate – net periodic cost		5.75	%		6.20	%		5.00	%		5.60	%
Discount rate – projected benefit obligation		4.65	%		5.75	%		3.85	%		5.00	%
Expected long-term rate of return on plan assets		8.00	%		8.00	%		—			—

Rate of compensation increases are not applicable as a result of flat benefit formulas. The discount rate and rate of return were selected based upon current market conditions, Company experience and future expectations. The amount expected to be amortized from accumulated other comprehensive income and expected to be included in net periodic pension cost during the next twelve months is less than $70. The liability for the unfunded status of the Pension Plan and Health Plan was classified as long-term in other liabilities on the Company's consolidated balance sheets.

Pension Plan assets consist primarily of listed equity and debt securities. Below are the weighted average asset allocations by category at March 31, 2012 and 2011, and the target allocations for 2013:

Asset category	2012			2011			Target % 2013
Equity securities		61	%		59	%		50-60	%
Debt securities		16	%		15	%		10-20	%
Real estate		0	%		0	%		0-10	%
Other		23	%		26	%		20-30	%
Total		100	%		100	%		100	%

At March 31, 2012, the fair value of the company's pension plan assets were as follows:

(in thousands)	Total		Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Guaranteed:
Stable Fund	$	261	$	—	$	261	$	—
Balanced		441		—		441		—
U.S. Common Stock
Equity Growth		65		65		—		—
Value & Income		143		—		143		—
Growth & Income		113		113		—		—
Special Equity		63		—		63		—
International		34		—		34		—
Total	$	1,120	$	178	$	942	$	—

At March 31, 2011, the fair value of the company's pension plan assets were as follows:

(in thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Guaranteed:
Stable Fund	$	304	$	—	$	304	$	—
Balanced		437		—		437		—
U.S. Common Stock
Equity Growth		61		—		61		—
Value & Income		142		—		142		—
Growth & Income		104		—		104		—
Special Equity		63		—		63		—
International		39		—		39		—
Total	$	1,150	$	—	$	1,150	$	—

The fair value of the guaranteed fund, balanced fund, domestic common stocks and international fund represents the reported net asset value of shares or underlying assets of the investment. The stable fund's book value approximates fair value. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Assumed health care cost trend rates have a significant effect on the amounts reported for the Health Plan. The health care cost trend rate assumed in measuring the Health Plan benefit obligation is 8% gradually decreasing to 4% in 2016 and thereafter. A one percentage point change in these assumed rates would increase the post retirement obligation by $59 or decrease the post retirement obligation by $53.

The Health Plan has no assets and the Company pays the benefits as incurred. The Company expects to pay $13 to the Pension Plan and expects to pay $10 to the Health Plan in 2013. Benefits expected to be paid from these plans in the future are as follows:

	Pension Plan		Health Plan
2013	$	13	$	10
2014		13		—
2015		23		22
2016		22		47
2017		22		60
2018-2022	$	324	$	345