Retirement Benefits

12 Months Ended

Dec. 31, 2012

Retirement Benefits [Abstract]

Retirement Benefits

Retirement Benefits

The Company has an unfunded noncontributory defined benefit plan that covers its chief executive officer and chairman of the board. The plan provides that the benefit payments shall commence on the earliest of (i) January 2, 2014, (ii) the date of death or (iii) a change in control of the Company. The discount rate used to derive the projected benefit obligation and related retirement expense was 3.39% in 2012 and 4.36% in 2011. The discount rate assumption used to determine the benefit obligation is based on a yield curve approach. Under this approach, a weighted average yield is determined from a hypothetical portfolio of AA rated bonds. Following is a summary of the projected benefit obligation as of December 31, 2012 and 2011:

(In thousands)	2012			2011
Beginning of year	$	56,787		$	51,828
Interest cost	2,476			2,716
Benefits paid	(1,426		)	—
Actuarial loss	6,795			2,243
End of year	$	64,632		$	56,787

Following is a summary of the amounts recognized in accumulated other comprehensive income as of December 31, 2012 and 2011:

(In thousands)	2012		2011
Net actuarial loss	$	14,605	$	10,007
Prior service cost	9,012		12,035
Net pension asset	$	23,617	$	22,042

The components of net periodic pension benefit cost are as follows:

(In thousands)	2012		2011		2010
Components of net periodic benefit cost:
Interest cost	$	2,476	$	2,716	$	2,675
Amortization of unrecognized:
Prior service costs	3,023		3,023		3,023
Net actuarial loss	2,197		1,330		424
Net periodic pension cost	$	7,696	$	7,069	$	6,122

The changes in plan assets and projected benefit obligation recognized in other comprehensive income are as follows:

(In thousands)	2012			2011
Changes in plan assets and projected benefit obligation:
Net actuarial loss	$	6,795		$	2,243
Amortization of:
Net actuarial loss	(2,197		)	(1,330		)
Prior service costs	(3,023		)	(3,023		)
Total recognized in other comprehensive income (loss)	$	1,575		$	(2,110	)

The estimated prior service cost and net actuarial loss that will be amortized from accumulated other comprehensive income into periodic benefit cost during 2013 are $3,023,000 and $8,142,000, respectively.