Pension Note

12 Months Ended

Mar. 31, 2012

General Discussion Of Pension And Other Postretirement Benefits Abstract

Pension And Other Postretirement Benefits Disclosure Text Block

13.       Pensions and Other Benefit Plans

The Company provides retirement plans, including defined benefit and defined contribution plans, and postretirement benefit plans to certain employees. The Company applies ASC Topic 715 “Compensation – Retirement Benefits,” which required the recognition in pension and other postretirement benefits obligations and accumulated other comprehensive income of actuarial gains or losses, prior service costs or credits and transition assets or obligations that had previously been deferred. This statement also requires an entity to measure a defined benefit postretirement plan's assets and obligations that determine its funded status as of the end of the fiscal year.

Pension Plans

The Company provides defined benefit pension plans to certain employees. The Company uses March 31 as the measurement date. The following provides a reconciliation of benefit obligation, plan assets, and funded status of the plans:

	March 31,
	2012	2011
Change in benefit obligation:
Benefit obligation at beginning of year	$ 177,760	$ 168,918
Curtailment	(3,256)	-
Amendment	648	-
Service cost	3,530	3,368
Interest cost	10,010	9,738
Actuarial loss	36,723	4,583
Benefits paid	(9,165)	(9,655)
Foreign exchange rate changes	(1,037)	808
Benefit obligation at end of year	$ 215,213	$ 177,760
Change in plan assets:
Fair value of plan assets at beginning of year	$ 145,394	$ 132,136
Actual gain on plan assets	8,032	15,010
Employer contribution	5,974	7,796
Benefits paid	(9,165)	(9,655)
Foreign exchange rate changes	(145)	107
Fair value of plan assets at end of year	$ 150,090	$ 145,394
Funded status	$ (65,123)	$ (32,366)
Unrecognized actuarial loss	76,600	43,620
Unrecognized prior service cost	415	1,018
Net amount recognized	$ 11,892	$ 12,272
Amounts recognized in the consolidated balance sheets are as follows:
	March 31,
	2012	2011
Accrued liabilities	(844)	(899)
Other non-current liabilities	(64,279)	(31,467)
Deferred tax effect of accumulated other comprehensive loss	18,511	17,751
Accumulated other comprehensive loss	58,504	26,887
Net amount recognized	$ 11,892	$ 12,272

In fiscal 2013, an estimated net loss of $6,096,000and prior service cost of $162,000 for the defined benefit pension plans will be amortized from accumulated other comprehensive loss to net periodic benefit cost.

Net periodic pension cost included the following components:

	2012	2011	2010
Service costs—benefits earned during the period	$ 3,530	$ 3,368	$ 3,687
Interest cost on projected benefit obligation	10,010	9,738	9,950
Expected return on plan assets	(10,704)	(9,865)	(7,479)
Net amortization	3,591	3,572	4,210
Curtailment/settlement loss	1,120	23	2,417
Net periodic pension cost	$ 7,547	$ 6,836	$ 12,785

In fiscal 2010, the Company recorded a curtailment loss on the statement of operations within restructuring charges. Refer to Note 17 for further discussion.

In fiscal 2012, the Company completed negotiations with one of its labor unions which resulted in an amendment to one of its pension plans.  The Company also amended one of its pension plans with its non-union employees. Within cost of products sold for fiscal 2012, the Company recorded a curtailment charge of $1,120,000 resulting from the amendments.

Information for pension plans with a projected benefit obligation in excess of plan assets is as follows:

		March 31,
		2012		2011
Projected benefit obligation	$	215,213	$	177,760
Fair value of plan assets		150,090		145,394

Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows:

		March 31,
		2012		2011
Accumulated benefit obligation	$	206,985	$	172,830
Fair value of plan assets		150,090		145,394

Unrecognized gains and losses are amortized through March 31, 2012 on a straight-line basis over the average remaining service period of active participants.

       The weighted-average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also net periodic pension cost for the following year:

	2012		2011		2010
Discount rate	4.70	%	5.75	%	6.00	%
Expected long-term rate of return on plan assets	7.50		7.50		7.50
Rate of compensation increase	2.00		2.00		2.00

The expected rates of return on plan asset assumptions are determined considering long-term historical averages and real returns on each asset class.

The Company's retirement plan target and actual asset allocations are as follows:

	Target	Actual
	2013	2012	2011
Equity securities	70%	63%	61%
Fixed income	30%	37%	39%
Total plan assets	100%	100%	100%

       The Company has an investment objective for domestic pension plans to adequately provide for both the growth and liquidity needed to support all current and future benefit payment obligations. The investment strategy is to invest in a diversified portfolio of assets which are expected to satisfy the aforementioned objective and produce both absolute and risk adjusted returns competitive with a benchmark that is a blend of major US and international equity indexes and an aggregate bond fund. The shift to the targeted allocation is the result of management's re-evaluation of its investment allocation. The targeted allocation will be accomplished as some plan assets governed by collective bargaining contracts will be transferred from fixed income into equity securities, as well as reallocation of remaining assets to achieve the desired balance during fiscal 2013.

The Company's funding policy with respect to the defined benefit pension plans is to contribute annually at least the minimum amount required by the Employee Retirement Income Security Act of 1974 (ERISA). Additional contributions may be made to minimize PBGC premiums. The Company expects to contribute approximately $10,400,000 to its pension plans in fiscal 2013.

Information about the expected benefit payments for the Company's defined benefit plans is as follows (in $ thousands):

2013	$ 9,537
2014	9,737
2015	10,375
2016	10,878
2017	11,389
2018-2022	66,325

Postretirement Benefit Plans

The Company sponsors a defined benefit postretirement health care plan that provide medical and life insurance coverage to certain U.S. retirees and their dependents of one of its subsidiaries. Prior to the acquisition of this subsidiary, the Company did not sponsor any postretirement benefit plans. The Company pays the majority of the medical costs for certain retirees and their spouses who are under age 65. For retirees and dependents of retirees who retired prior to January 1, 1989, and are age 65 or over, the Company contributes 100% toward the American Association of Retired Persons (“AARP”) premium frozen at the 1992 level. For retirees and dependents of retirees who retired after January 1, 1989, the Company contributes $35 per month toward the AARP premium. The life insurance plan is noncontributory.

The Company's postretirement health benefit plans are not funded. The following sets forth a reconciliation of benefit obligation and the funded status of the plan:

	March 31,
	2012	2011
Change in benefit obligation:
Benefit obligation at beginning of year	$ 8,833	$ 9,078
Interest cost	388	476
Actuarial gain	(1,669)	(93)
Benefits paid	(476)	(628)
Benefit obligation at end of year	$ 7,076	$ 8,833
Funded status	$ (7,076)	$ (8,833)
Unrecognized actuarial loss	1,940	3,768
Net amount recognized	$ (5,136)	$ (5,065)

Amounts recognized in the consolidated balance sheets are as follows:

	March 31,
	2012	2011
Accrued liabilities	$ (855)	$ (1,021)
Other non-current liabilities	(6,221)	(7,812)
Deferred tax effect of accumulated other comprehensive loss	1,507	1,507
Accumulated other comprehensive loss	433	2,261
Net amount recognized	(5,136)	(5,065)

In fiscal 2013, an estimated net loss of $143,000 for the defined benefit postretirement health care plans will be amortized from accumulated other comprehensive loss to net periodic benefit cost. In fiscal 2012, net periodic postretirement benefit cost included the following:

	Year Ended March 31,
	2012	2011	2010
Service cost—benefits attributed to service during the period	$ -	$ -	$ -
Interest cost	388	476	586
Net amortization	158	301	313
Net periodic postretirement benefit cost	$ 546	$ 777	$ 899

For measurement purposes, healthcare costs are assumed to increase 8.0% in fiscal 2013, grading down over time to 5.0% in six years. The discount rate used in determining the accumulated postretirement benefit obligation was 4.70% and 5.75% as of March 31, 2012 and 2011, respectively.

Information about the expected benefit payments for the Company's postretirement health benefit plans is as follows:

2013	$ 855
2014	832
2015	779
2016	735
2017	697
2018-2022	2,705

Assumed medical claims cost trend rates have an effect on the amounts reported for the health care plans. A one-percentage point change in assumed health care cost trend rates would have the following effects

	One Percentage	One Percentage
	Point Increase	Point Decrease
Effect on total of service and interest cost components	$ 21	$ (19)
Effect on postretirement obligation	423	(379)

The Company has collateralized split-dollar life insurance arrangements with two of its former officers. Under these arrangements, the Company pays certain premium costs on life insurance policies for the former officers. Upon the later of the death of the former officer or their spouse, the Company will receive all of the premiums paid to-date. The net periodic pension cost for fiscal 2012was $254,000 and the liability at March 31, 2012 is $3,715,000with 3,575,000 included in other non-current liabilities and $140,000 included in accrued liabilities in the consolidated balance sheet. The cash surrender value of the policies is $2,109,000 at March 31, 2012 and is included in other assets in the consolidated balance sheet.

Other Benefit Plans

The Company also sponsors defined contribution plans covering substantially all domestic employees. Participants may elect to contribute basic contributions. These plans provide for employer contributions based primarily on employee participation. The Company recorded a charge for such contributions of approximately $1,344,000, $389,000, and $340,000 for the years ended March 31, 2012, 2011and 2010, respectively. Due to the significant global economic downturn, the Company significantly reduced its contribution to the defined contribution plans in fiscal 2010 and 2011.

Fair Values of Plan Assets

The Company classified its investments within the categories of equity securities, fixed income securities, and cash equivalents, as the Company's management bases its investment objectives and decisions from these three categories. The Company's investment policy as it relates to its pension assets is to invest in broad-based mutual funds, with an investment objective of being diversified. Further the Company's investment objective of its equity securities is long-term growth, its objective of the fixed income securities is long-term growth, consistency of income and preservation of capital, and its objective of cash equivalents is preservation of capital. It is the Company's position that its investment policy and investment objectives as defined above reduce the risk of concentrations within its investments.

The fair values of the Company's defined benefit plans' consolidated assets by asset category as of March 31 were as follows:

		March 31,
		2012	2011
Asset categories:
	Equity securities	$ 94,587	$ 88,556
	Fixed income securities	55,373	55,690
	Cash equivalents	130	1,148
	Total	$ 150,090	$ 145,394

The fair values of our defined benefit plans' consolidated assets were determined using the fair value hierarchy of inputs described in Note 5. The fair values by category of inputs as of March 31, 2012 were as follows:

			Quoted Prices in Active Markets for Identical Assets		Significant other observable inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)		Total
Asset categories:
	Equity securities	$	46,939	$	47,648	$	-	$	94,587
	Fixed income securities		38,892				16,481		55,373
	Cash equivalents		130				-		130
	Total	$	85,961	$	47,648	$	16,481	$	150,090

Level 1 fixed income securities consist of fixed income mutual funds with quoted market prices.

Level 2 equity securities consist of short term investments stated at net asset value which approximates fair value.

Fair value of Level 3 fixed income securities at the beginning of the year was $15,872,000. During fiscal 2012 fixed income securities earned investment return of $1,037,000 and had disbursements of$428,000 resulting in an ending balance of $16,481,000.These fixed income securities consist primarily of insurance contracts which are carried at their liquidation value based on actuarial calculations and the terms of the contracts.