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Note 8 - Benefit Plans
 12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Pension and Other Postretirement Benefits Disclosure [Text Block]
NOTE
8
– Benefit Plans:
 
Defined Benefit Plans
 
The Company is the sponsor of
two
noncontributory qualified defined benefit pension plans, providing for normal retirement at age
65,
covering all eligible employees (as defined). Periodic benefit payments on retirement are determined based on a fixed amount applied to service or determined as a percentage of earnings prior to retirement. The Company is also the sponsor of an unfunded supplemental executive retirement plan (SERP) in which several of its employees are participants. Pension plan assets for retirement benefits consist primarily of fixed income securities and common stock equities.
 
Effective
June 30, 2013,
the Company
no
longer accrues additional benefits for future service or for future increases in compensation levels for the company’s primary defined benefit pension plan. 
 
Effective
December 31, 2014,
the Company
no
longer accrues additional benefits for future service for the Company’s hourly defined benefit plan.
 
The Company recognizes the funded status of its defined benefit post retirement plans in the Company’s consolidated balance sheets.
 
At
December 31, 2018,
the fair value of plan assets for the noncontributory qualified defined benefit pension plans exceeded their projected benefit obligations by
$1.7
million and thus the plans are overfunded. The Company’s projected benefit obligation under the SERP exceeded the fair value of the plans’ assets by
$8.8
million and thus the plan is underfunded. 
 
It is our policy to make contributions to the various plans in accordance with statutory funding requirements and any additional funding that
may
be deemed appropriate.
 
The following tables present the changes in the benefit obligations and the various plan assets, the funded status of the plans, and the amounts recognized in the Company's consolidated balance sheets
at
December 
31,
2018
and
2017:
 
(In thousands)
  
December 31,
  
   
2018
    
2017
  
                 
Changes in benefit obligation
  
 
 
 
  
 
 
 
Benefit obligation at beginning of year
   $
28,386
     $
25,258
  
Service cost
    
108
      
65
  
Interest cost
    
970
      
965
  
Actuarial (gain) loss
    
(1,597
 )    
3,755
  
Benefits paid
    
(742
 )    
(1,657
 )
Benefit obligation at end of year
    
27,125
      
28,386
  
                 
Changes in plan assets
  
 
 
 
  
 
 
 
Fair value of plan assets at beginning of year
    
22,145
      
15,791
  
Actual return on assets
    
(1,526
 )    
2,413
  
Employer contributions
    
103
      
5,598
  
Benefits paid
    
(742
 )    
(1,657
 )
Fair value of plan assets at end of year
    
19,980
      
22,145
  
                 
Funded status at end of year
   $
(7,145
 )   $
(6,241
 )
                 
Amounts recognized in consolidated balance sheet
 
 
 
 
  
 
 
 
Other assets
   $
1,663
     $
2,181
  
Other current liabilities
    
(103
 )    
(103
 )
Long-term pension liability
    
(8,705
 )    
(8,319
 )
     
(7,145
 )    
(6,241
 )
                 
Amounts recognized in accumulated other comprehensive income consist of:
  
 
 
 
  
 
 
 
Net actuarial loss
   $
11,417
     $
10,903
  
 
Information for pension plans with projected benefit obligation in excess of plan assets
 
   
December 31,
  
   
2018
    
2017
  
Projected benefit obligation
   $
27,125
     $
28,386
  
Fair value of plan assets
    
(19,980
 )    
(22,145
 )
    $
7,145
     $
6,241
  
 
Components of net periodic benefit cost
 
   
2018
    
2017
    
2016
  
Service cost - benefits earned during the period
   $
108
     $
65
     $
57
  
Interest cost on projected benefit obligation
    
970
      
965
      
988
  
Expected return on plan assets
    
(1,717
 )    
(1,218
 )    
(1,188
 )
Recognized actuarial loss
    
1,132
      
1,042
      
1,027
  
Settlement loss
    
-
      
435
      
445
  
Net periodic pension cost after settlements
   $
493
     $
1,289
     $
1,329
  
 
The pension settlement losses included in the table above relates to lump sum payments made to various employees upon their retirement or termination each year.
 
The estimated net actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is
$1.3
million.
 
The table below presents various assumptions used in determining the benefit obligation for each year and reflects the percentages for the various plans.
 
Weighted-average assumptions used to determine benefit obligations at
December 31,
  
                    Long Term Rate                  
   
Discount Rate
     of Return     Salary Scale  
   
Corp.
    
Plants
    
Corp.
    
Plants
     Corp.     Plants  
2017
    
3.53
 %    
3.45
 %    
8.00
 %    
8.00
 %    
N/A
      
N/A
  
2018
    
4.14
 %    
4.06
 %    
8.00
 %    
8.00
 %    
N/A
      
N/A
  
 
Weighted-average assumptions used to determine net periodic benefit cost for years ending
December 31,
 
                    Long Term Rate                  
   
Discount Rate
     of Return     Salary Scale  
   
Corp.
    
Plants
    
Corp.
    
Plants
     Corp.     Plants  
2016
    
4.19
 %    
4.09
 %    
8.00
 %    
8.00
 %    
N/A
      
N/A
  
2017
    
4.04
 %    
3.91
 %    
8.00
 %    
8.00
 %    
N/A
      
N/A
  
2018
    
3.53
 %    
3.45
 %    
8.00
 %    
8.00
 %    
N/A
      
N/A
  
 
 
The methodology used to determine the expected rate of return on the pension plan assets was based on a review of actual returns in the past and consideration of projected returns based upon our projected asset allocation. Our strategy with respect to our investments in pension plan assets is to be invested with a long-term outlook. Therefore, the risk and return balance of our asset portfolio should reflect a long-term horizon. Our pension plan asset allocation at
December 
31,
2018,
2017
and target allocation for
2019
are as follows:
 
   
Percentage of Plan
Assets at
December 31,
    
Target
Allocation
 
Investment description
  
201
8
    
201
7
    
201
9
  
Equity securities
    
59
 %    
52
 %    
60
 %
Fixed income
    
40
 %    
29
 %    
40
 %
Other
    
1
 %    
19
 %    
-
 %
Total
    
100
 %    
100
 %    
100
 %
 
The Company plans to contribute
$0.1
million to our defined benefit pension plans in
2019.
 
The following table includes projected benefit payments for the years indicated:
 
Year
  
Projected Benefit Payments
  
 
   (in thousands)  
         
2019
   $
1,612
  
2020
   $
2,108
  
2021
   $
2,000
  
2022
   $
2,009
  
2023
   $
1,471
  
2024-2028
   $
8,590
  
 
Rabbi Trust
 
In connection with the Company’s unfunded SERP, we have life insurance contracts on the lives of designated individuals. The insurance contracts associated with the SERP are held in a Rabbi trust. The trust is the owner and beneficiary of such insurance contracts. The policies are being utilized to help offset the costs and liabilities of the SERP. The cash surrender value of the life insurance contracts was
$2.7
million and
$2.2
million at
December 31, 2018
and
2017
respectively. We recognized an investment loss on the cash surrender value of these life insurance contracts of
$0.3
million for the year ended
December 31, 2018.
We recognized an investment gain on the cash surrender value of these life insurance contracts of
$0.3
and
$0.1
million for the years ended
December 31, 2017
and
2016
respectively. The cash surrender value of these policies is included in other assets in the Consolidated Balance Sheets.
 
In
2013,
we initiated a Non-Qualified Deferred Compensation Plan, and we have purchased life insurance contracts on the lives of designated individuals. The insurance contracts associated with the Non-Qualified Deferred Compensation Plan are also held in a Rabbi trust. The trust is the owner and beneficiary of such insurance contracts. The policies are being utilized to help offset the costs and liabilities of the Non-Qualified Deferred Compensation Plan. The cash surrender value of the life insurance contracts was
$2.9
million and
$2.2
million at
December 31, 2018
and
2017
respectively.    The cash surrender value of these policies is included in other assets in the Consolidated Balance Sheets. The liability for participant deferrals was
$2.9
million and
$2.2
million as of
December 31, 2018
and
2017
respectively and is included in other long-term liabilities in the Consolidated Balance Sheets.
 
Defined Contribution Plan
 
The Company provides a defined contribution plan covering qualified employees. The plan includes a provision that allows employees to make pre-tax contributions under Section
401
(k) of the Internal Revenue Code. The plan provides for the Company to make a guaranteed match equal to
25%
of each employee’s eligible contributions. The plan also provides the Company with the option of making an additional discretionary contribution to the plan each year. Currently the discretionary contribution is set at
3%
of eligible employees’ wages. The Company contributions for the years ended
December 31, 2018,
2017
and
2016
were approximately
$0.8
million,
$1.0
million and
$1.1
million, respectively.