Retirement Plans

9 Months Ended

Feb. 28, 2013

Retirement Plans

Retirement Plans

Riverside Defined Benefit Plans. Approximately 600 employees and retirees of our subsidiary, Riverside Cement Company, are covered by a defined benefit pension plan and a postretirement health benefit plan. Unrecognized prior service costs and actuarial gains or losses for these plans are recognized in a systematic manner over the remaining service periods of active employees expected to receive benefits under these plans. The amount of the defined benefit pension plan and postretirement health benefit plan expense charged to costs and expenses for the three-month and nine-month periods ended February 28, 2013 and February 29, 2012, was as follows:

	Three months ended						Nine months ended
	February 28,			February 29,			February 28,			February 29,
In thousands	2013			2012			2013			2012
Defined benefit pension plan
Service cost	$	61		$	135		$	277		$	403
Interest cost	635			760			1,978			2,280
Expected return on plan assets	(770		)	(777		)	(2,288		)	(2,331		)
Amortization of net actuarial loss	217			430			1,165			1,291
	$	143		$	548		$	1,132		$	1,643
Postretirement health benefit plan
Service cost	$	27		$	23		$	81		$	73
Interest cost	88			104			264			312
Amortization of prior service cost	(194		)	(193		)	(582		)	(581		)
Amortization of net actuarial loss	129			142			387			424
	$	50		$	76		$	150		$	228

The Riverside defined benefit pension plan (“Pension Plan”) was amended during the first quarter of fiscal year 2013. This amendment provides that all benefit accruals under the Pension Plan shall cease effective December 31, 2012 and the Pension Plan will be frozen as of that date. The amendment was designed to reduce future pension costs and provide that, effective December 31, 2012, all future benefit accruals under the Pension Plan will automatically cease for all participants, and the accrued benefits under the Pension Plan will be determined and frozen as of that date. Accordingly, as a result of these amendments, accrued pension liability was reduced by $2.2 million with an offsetting reduction in the funded status of pension liability included in accumulated other comprehensive loss.

Financial Security Defined Benefit Plans. Substantially all of our executive and certain managerial employees are covered by a series of financial security plans that are non-qualified defined benefit plans. The financial security plans require deferral of a portion of a participant’s salary and provide retirement, death and disability benefits to participants. The financial security plans are unfunded and benefits are paid as they become due. Actuarial gains or losses are recognized when incurred. The amount of financial security plan benefit expense charged to costs and expenses for the three-month and nine-month periods ended February 28, 2013 and February 29, 2012, was as follows:

	Three months ended				Nine months ended
	February 28,		February 29,		February 28,		February 29,
In thousands	2013		2012		2013		2012
Service cost	$	593	$	537	$	1,778	$	1,611
Interest cost	591		629		1,773		1,887
	$	1,184	$	1,166	$	3,551	$	3,498

The financial security defined benefit plans were amended during the second quarter of fiscal year 2013. This amendment provides that effective December 31, 2012 the Plans were frozen.