Retirement Plans

6 Months Ended

Nov. 30, 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 expenses associated with the defined benefit pension plan and postretirement health benefit plan are included in the computation of total employee benefit cost which is allocated to costs of products sold and to selling, general, and administrative in the consolidated statement of operations. The expense (benefits) associated with these plans for the three-month and six-month periods ended November 30, 2013 and 2012, was as follows:

	Three months ended						Six months ended
	November 30,			November 30,			November 30,			November 30,
In thousands	2013			2012			2013			2012
Defined benefit pension plan
Service cost	$	—		$	61		$	—		$	216
Interest cost	683			635			1,366			1,343
Expected return on plan assets	(851		)	(770		)	(1,702		)	(1,518		)
Amortization of net actuarial loss	154			217			308			948
	$	(14	)	$	143		$	(28	)	$	989
Postretirement health benefit plan
Service cost	$	25		$	27		$	50		$	54
Interest cost	72			88			144			176
Amortization of prior service cost	(194		)	(194		)	(388		)	(388		)
Amortization of net actuarial loss	57			129			112			258
	$	(40	)	$	50		$	(82	)	$	100

The Riverside defined benefit pension plan (“Pension Plan”) was amended during the first quarter of fiscal year 2013. This amendment provided for the cessation of all benefit accruals under the Pension Plan effective December 31, 2012 and the Pension Plan was frozen as of that date. The amendment was designed to reduce future pension costs and provides 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.

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 expenses associated with the financial security plan are included in the computation of total employee benefit cost which is allocated to costs of products sold and to selling, general, and administrative in the consolidated statement of operations. The costs of this plan for the three-month and six-month periods ended November 30, 2013 and 2012, was as follows:

	Three months ended				Six months ended
	November 30,		November 30,		November 30,		November 30,
In thousands	2013		2012		2013		2012
Service cost	$	536	$	593	$	1,072	$	1,186
Interest cost	609		591		1,218		1,182
	$	1,145	$	1,184	$	2,290	$	2,368

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