Employee Benefits

9 Months Ended

Sep. 30, 2011

Employee Benefits [Abstract]

Employee Benefits

Note 9.    Employee Benefits

During the second quarter of 2011, we announced that our postretirement medical benefit plans to substantially all eligible U.S. and Canadian employees will terminate on December 31, 2016.  There will be no change to the eligibility or plan provided to the 64 former union employees.  The remeasurement of the postretirement medical benefit plans resulting from these benefit modifications generated a $14.4 million reduction in the accumulated postretirement benefit obligation and a $3.6 million curtailment gain.  The remaining unrecognized prior service cost is being amortized on a straight-line basis over the remaining term of the plan.  The $3.6 million curtailment gain is included in selling, general and administrative expenses in the consolidated statement of operations.

The discount rate assumptions used to determine the remeasurement of the costs and benefit obligation related to our U.S. and Canadian postretirement plans were 1.87% and 3.75%, respectively.  These rates reflect the shorter duration of our obligation as a result of the negative plan amendments.

The components of net periodic benefit cost for our defined benefit plans and postretirement benefit plans for the three months and nine months ended September 30, 2011 and 2010 were as follows (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Pension Benefits	2011			2010			2011			2010
Service cost	$	36		$	22		$	110		$	67
Interest cost		59			36			179			109
Amortization of prior service cost		30			40			84			120
Actuarial net (gain) loss		91			-			275			-
Net periodic benefit cost	$	216		$	98		$	648		$	296
Postretirement Benefits
Service cost	$	1		$	47		$	75		$	143
Interest cost		35			290			516			903
Amortization of prior service cost		(1,642	)		(2,257	)		(4,873	)		(6,772	)
Amortization of transition obligation		-			1			2			3
Actuarial net loss		728			315			1,473			1,001
Curtailment gain		-			-			(3,647	)		-
Net periodic benefit cost	$	(878	)	$	(1,604	)	$	(6,454	)	$	(4,722	)

For the nine months ended September 30, 2011, we made employee benefit contributions of $0.9 million related to our postretirement plans.  Based on current actuarial estimates, we believe we will be required to make approximately $1.1 million in contributions for 2011.

We maintain a Supplemental Executive Retirement Plan (“SERP”) for key employees. Under the plan, these employees may elect to defer a portion of their compensation and, in addition, we may at our discretion make contributions to the plan on behalf of the employees.  In March 2011, contributions of $0.2 million were made related to calendar year 2010.

We maintain an employee benefits trust to which we contributed 750,000 shares of treasury stock. We are authorized to instruct the trustees to distribute such shares toward the satisfaction of our future obligations under employee benefit plans. The shares held in trust are not considered outstanding for purposes of calculating earnings per share until they are committed to be released. The trustees will vote the shares in accordance with their fiduciary duties.  During 2011, we contributed to the trust an additional 180,000 shares from our treasury and released 183,000 shares from the trust leaving 3,930 shares remaining in the trust as of September 30, 2011.