Postretirement Benefits Other Than Pensions

12 Months Ended

Dec. 31, 2011

Post Retirement Benefits Other Than Pensions [Abstract]

Postretirement Benefits Other Than Pensions

11. Postretirement Benefits Other Than Pensions

The Company sponsors unfunded defined benefit postretirement health care and life insurance plans for certain employees. The Company contributes toward the cost of health insurance benefits and contributes the full cost of providing life insurance benefits. In order to be eligible for these postretirement benefits, an employee must retire after attainment of age 55 and completion of 15 years of service, or attainment of age 65 and completion of 10 years of service. The Company’s Benefits Trust Committee determines retiree premiums.

Effective January 1, 2011, the plan options available to new retirees under these plans changed. All retirees subsequent to that date must participate in single plan option. The Company’s benefit obligation decreased $1.1 million as a result of this amendment.

The following table reconciles the change in benefit obligation of the postretirement plans to the accrued postretirement liability as reflected in other liabilities in the accompanying consolidated balance sheets at December 31 (amounts in thousands):

	2011			2010
Benefit obligation at beginning of year	$	19,937		$	17,354
Service cost		46			51
Interest cost		1,052			1,045
Actuarial loss		5,492			2,335
Amendments		(1,075	)		—
Benefits paid		(831	)		(848	)
Benefit obligation at end of year	$	24,621		$	19,937

Net postretirement benefit expense reflected in the accompanying consolidated statements of operations included the following components for the years ended December 31 (amounts in thousands):

	2011			2010			2009
Service cost	$	46		$	51		$	62
Interest cost		1,052			1,045			966
Recognized net actuarial (gain) loss		2			—			(183	)
Amortization of prior service cost		(434	)		—			—
Amortization of curtailment gain		(244	)		(244	)		(244	)
Net postretirement benefit expense	$	422		$	852		$	601

The weighted-average assumptions used to determine the benefit obligation at December 31 are as follows:

	2011			2010			2009
Discount rate		4.21	%		5.29	%		5.77	%
Measurement date		12/31/2011			12/31/2010			12/31/2009

The weighted-average assumptions used to determine the net postretirement benefit expense for years ended December 31 are as follows:

	2011			2010			2009
Discount rate		5.29	%		5.77	%		6.10	%
Measurement date		12/31/2011			12/31/2010			12/31/2009

The health care cost trend is projected to be 7.3% in 2012, declining each year thereafter to an ultimate trend rate of 4%-6% per year. The health care cost trend rates are not applicable to the life insurance benefit plan. The health care cost trend rate assumption has a significant effect on the amounts reported. To illustrate, a 1% increase in the assumed health care cost trend rate each year would increase the accumulated postretirement benefit obligation as of December 31, 2011 by approximately 11% and the aggregate of the service and interest cost components of net postretirement benefit expense would increase approximately 14%. Conversely, a 1% decrease in the assumed health care cost trend rate each year would decrease the accumulated postretirement benefit obligation as of December 31, 2011 by approximately 9% and the aggregate of the service and interest cost components of net postretirement benefit expense would decrease approximately 11%.

The Company expects to contribute $1.1 million to the plan in 2012. Based on the Company’s assumptions discussed above, the Company expects to make the following estimated future benefit payments under the plan during the years ending December 31 (amounts in thousands):

2012	$	1,055
2013		1,125
2014		1,196
2015		1,218
2016		1,261
2017-2021		6,611

The net loss, prior service credit, amortization of prior service credit, and amortization of curtailment gain recognized in other comprehensive income for 2011 was $5.5 million, $1.1 million, $0.4 million and $0.2 million, respectively. Included in accumulated other comprehensive loss at December 31, 2011 are the following amounts that have not yet been recognized in net postretirement benefit expense: unrecognized actuarial losses of $6.0 million ($3.9 million net of tax), unrecognized prior service credit of $0.6 million ($0.4 net of tax), and unrecognized curtailment gains of $0.1 million ($0.1 million net of tax). The net loss and amortization of curtailment gain recognized in other comprehensive income for 2010 was $2.3 million and $0.2 million, respectively. Included in accumulated other comprehensive loss at December 31, 2010 are the following amounts that had not yet been recognized in net postretirement benefit expense: unrecognized actuarial losses of $0.5 million ($0.3 million net of tax) and unrecognized curtailment gains of $0.3 million ($0.2 million net of tax). The net loss, prior service credit, and curtailment gain for the postretirement plans included in accumulated other comprehensive loss that will be amortized from accumulated other comprehensive loss into net postretirement benefit expense over the next fiscal year is $0.7 million, $0.4 million and $0.1 million, respectively.

The Company amended the plans effective December 31, 2001 such that only retirees currently receiving benefits under the plans and active employees whose age plus years of service total at least 60 and who have at least 10 years of service as of December 31, 2001 remain eligible.