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Employee Benefits
 12 Months Ended
Dec. 31, 2012
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Employee Benefits
Employee Benefits
The Company has a defined contribution savings plan covering all regular full-time and part-time employees whereby eligible employees may elect to contribute up to 100% of their annual compensation. The Company matches 100% of an employee's contribution up to the first 4% of such employee's compensation. The Company may, at its discretion, make an additional contribution in an amount as the board of directors may determine. For the years ended December 31, 2012, 2011 and 2010, the Company charged approximately $5,180, $4,801 and $4,556, respectively, to expense for these contributions.
Further, within the defined contribution savings plan, the Company also makes an annual retirement contribution to substantially all employees of one subsidiary and certain employees of another subsidiary who have completed one year of service. The Company's contributions to the plan are determined as a percentage of employees' base and overtime pay. For the years ended December 31, 2012, 2011 and 2010, the Company charged approximately $6,310, $5,234 and $5,209, respectively, to expense for these contributions.
The Company has noncontributory defined benefit pension plans that cover certain eligible salaried and wage employees of one subsidiary. Benefits for salaried employees under these plans are based primarily on years of service and employees' pay near retirement. Benefits for wage employees are based upon years of service and a fixed amount as periodically adjusted. The Company recognizes the years of service prior to the Company's acquisition of the subsidiary's facilities for purposes of determining vesting, eligibility and benefit levels for certain employees of the subsidiary and for determining vesting and eligibility for certain other employees of the subsidiary. The measurement date for these plans is December 31.
In 2012, the Company announced a plan amendment to one of the Company's defined benefit pension plans. Under the plan amendment, no additional benefits may be earned by participants after December 31, 2013 and participants' accrued benefit will freeze at the level earned as of December 31, 2013. In addition, the amendment added a lump sum payment option effective January 1, 2014. In conjunction with the defined benefit pension plan amendment, the Company is amending its defined contribution savings plan to allow participants impacted by the plan amendment to participate in the Company's annual retirement contribution.
The Company also provides post-retirement healthcare benefits to the employees of two subsidiaries who meet certain minimum age and service requirements. The Company has the right to modify or terminate some of these benefits.
Details of the changes in benefit obligations, plan assets and funded status of the Company's pension and post-retirement healthcare plans are as follows:
 
 
Pension Benefits
 
Post-retirement
Healthcare
 
 
2012
 
2011
 
2012
 
2011
Change in benefit obligation
 
 
 
 
 
 
 
 
Benefit obligation, beginning of year
 
$
59,876

 
$
54,033

 
$
20,212

 
$
20,047

Service cost
 
1,005

 
930

 
9

 
16

Interest cost
 
2,580

 
2,723

 
745

 
840

Actuarial loss
 
9,481

 
4,358

 
2,021

 
816

Benefits paid
 
(2,145
)
 
(2,168
)
 
(1,604
)
 
(1,507
)
Curtailment
 
(5,484
)
 
—

 
—

 
—

Benefit obligation, end of year
 
$
65,313

 
$
59,876

 
$
21,383

 
$
20,212

 
 
 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
 
 
Fair value of plan assets, beginning of year
 
$
35,478

 
$
32,867

 
$
—

 
$
—

Actual return
 
4,207

 
833

 
—

 
—

Employer contribution
 
4,785

 
3,946

 
1,604

 
1,507

Benefits paid
 
(2,145
)
 
(2,168
)
 
(1,604
)
 
(1,507
)
Fair value of plan assets, end of year
 
$
42,325

 
$
35,478

 
$
—

 
$
—

Funded status, end of year
 
$
(22,988
)
 
$
(24,398
)
 
$
(21,383
)
 
$
(20,212
)

 
 
Pension Benefits
 
Post-retirement
Healthcare
 
 
2012
 
2011
 
2012
 
2011
Amounts recognized in the consolidated
   balance sheet at December 31
 
 
 
 
 
 
 
 
Current liabilities
 
$
—

 
$
—

 
$
(1,753
)
 
$
(1,710
)
Noncurrent liabilities
 
(22,988
)
 
(24,398
)
 
(19,630
)
 
(18,502
)
Net amount recognized
 
$
(22,988
)
 
$
(24,398
)
 
$
(21,383
)
 
$
(20,212
)

 
 
Pension Benefits
 
Post-retirement
Healthcare
 
 
2012
 
2011
 
2012
 
2011
Amounts recognized in accumulated other
   comprehensive income
 
 
 
 
 
 
 
 
Net loss
 
$
20,831

 
$
20,325

 
$
5,358

 
$
3,523

Prior service cost
 
594

 
890

 
134

 
218

Total before tax (1)
 
$
21,425

 
$
21,215

 
$
5,492

 
$
3,741



______________________________
(1)
For 2012, after-tax totals for pension benefits and post-retirement healthcare benefits were $13,015 and $3,336, respectively. The sum of these amounts ($16,351) is reflected in stockholders' equity as accumulated other comprehensive income. For 2011, after-tax totals for pension benefits and post-retirement healthcare benefits were $12,873 and $2,270, respectively. The sum of these amounts ($15,143) is reflected in stockholders' equity as accumulated other comprehensive income.
The Pension Protection Act of 2006 (the "Pension Protection Act") established a relationship between a qualified pension plan's funded status and the actual benefits that can be provided. Restrictions on plan benefits and additional funding and notice requirements are imposed when a plan's funded status is less than certain threshold levels. For the 2012 plan year, the funded status for the Company's pension plans are in the 80% to 100% range. Accordingly, the Company's pension plans are exempt from the Pension Protection Act's benefit restrictions.
Pension plans with an accumulated benefit obligation in excess of plan assets at December 31 are as follows:
 
 
Pension Benefits
 
 
2012
 
2011
Information for pension plans with an accumulated benefit obligation
   in excess of plan assets
 
 
 
 
Projected benefit obligation
 
$
(65,313
)
 
$
(59,876
)
Accumulated benefit obligation
 
(65,074
)
 
(54,508
)
Fair value of plan assets
 
42,325

 
35,478


 
 
Pension Benefits
 
Post-retirement Healthcare
 
 
Year Ended December 31,
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
1,005

 
$
930

 
$
938

 
$
9

 
$
16

 
$
45

Interest cost
 
2,580

 
2,723

 
2,751

 
745

 
840

 
919

Expected return on plan assets
 
(2,490
)
 
(2,279
)
 
(1,935
)
 
—

 
—

 
—

Net amortization
 
2,071

 
1,567

 
1,899

 
269

 
418

 
377

Net periodic benefit cost
 
$
3,166

 
$
2,941

 
$
3,653

 
$
1,023

 
$
1,274

 
$
1,341

 
 
 
 
 
 
 
 
 
 
 
 
 
Other changes in plan assets and
   benefit obligation recognized in
   other comprehensive income (OCI)
 
 
 
 
 
 
 
 
 
 
 
 
Net loss (gain) emerging
 
$
7,765

 
$
5,804

 
$
(1,521
)
 
$
2,021

 
$
816

 
$
(656
)
Curtailment
 
(5,484
)
 
—

 
—

 
—

 
—

 
—

Amortization of net loss
 
(1,774
)
 
(1,271
)
 
(1,602
)
 
(185
)
 
(118
)
 
(51
)
Amortization of transition obligation
 
—

 
—

 
—

 
—

 
(114
)
 
(114
)
Amortization of prior service cost
 
(297
)
 
(296
)
 
(297
)
 
(84
)
 
(186
)
 
(212
)
Total recognized in OCI
 
$
210

 
$
4,237

 
$
(3,420
)
 
$
1,752

 
$
398

 
$
(1,033
)
Total net periodic benefit cost and OCI
 
$
3,376

 
$
7,178

 
$
233

 
$
2,775

 
$
1,672

 
$
308

The estimated prior service cost and net loss for the defined benefit plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2013 are expected to be $297 and $1,716, respectively. The estimated prior service cost and net loss for the post-retirement healthcare benefit plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2013 are expected to be $84 and $359, respectively.
The weighted-average assumptions used to determine pension and post-retirement healthcare plan obligations and net periodic benefit costs for the plans are as follows:
 
 
Pension Benefits
 
Post-retirement Healthcare
 
 
2012
 
2011
 
2010
 
2012
 
2011
 
2010
Weighted average assumptions used to
   determine benefit obligations at
   December 31
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
3.3
%
 
4.5
%
 
5.3
%
 
3.0
%
 
4.0
%
 
4.5
%
Expected return on plan assets
 
7.0
%
 
7.0
%
 
7.0
%
 
—

 
—

 
—

Rate of compensation increase
 
4.0
%
 
4.0
%
 
4.0
%
 
—

 
—

 
—

Weighted average assumptions used to
   determine net periodic benefit costs for
   years ended December 31
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
4.5
%
 
5.3
%
 
5.5
%
 
4.0
%
 
4.5
%
 
5.0
%
Expected return on plan assets
 
7.0
%
 
7.0
%
 
7.0
%
 
—

 
—

 
—

Rate of compensation increase
 
4.0
%
 
4.0
%
 
4.0
%
 
—

 
—

 
—


The Company's return on asset assumption of 7% is based on historical asset returns, anticipated future performance of the investments and financial markets and input from the Company's third-party independent actuary and the pension fund trustee. The discount rate is determined using a benchmark pension discount curve and applying spot rates from the curve to each year of expected benefit payments to determine the appropriate discount rate for the Company.
Assumed healthcare trend rates do not have a significant effect on the amounts reported for the healthcare plans because benefits for participants are capped at a fixed amount.
The Company's overall investment strategy is to achieve a balance between moderate income generation and capital appreciation. The investment strategy includes a mix of approximately 65% of investments for long-term growth and 35% for near-term benefit payments with a diversification of asset types. The Company does not believe that there are significant concentrations of risk in the pension plan assets due to its strategy of asset diversification. The pension fund investment policy allows the pension fund trustee a 10% discretionary range in the asset allocation model, with a target of approximately 55% equity securities and 45% fixed income. The Company expects to maintain the 55/45 investment policy for the near future. Equity securities primarily include investments in large-cap and small-cap companies located in the United States and international developed market stocks. Fixed income securities are comprised of investment grade bonds, including U.S. Treasuries and corporate bonds of companies from diversified industries.
Under the accounting guidance for fair value measurements, inputs used to measure fair value are classified in one of three levels:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
The investments in the bank collective trust funds are valued using a market approach based on the net asset value of units held. The fair values of the Company's pension plans assets at December 31, by asset category, are as follows:
 
 
2012
 
2011
 
 
Level 2
 
Level 3
 
Total
 
Level 2
 
Level 3
 
Total
Bank collective trust funds—Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
Large-cap index funds (1)
 
$
20,822

 
$
—

 
$
20,822

 
$
17,562

 
$
—

 
$
17,562

Small-cap index funds (2)
 
2,817

 
—

 
2,817

 
2,324

 
—

 
2,324

International index funds (3)
 
4,077

 
—

 
4,077

 
3,367

 
—

 
3,367

Bank collective trust funds—Fixed income:
 
 
 
 
 
 
 
 
 
 
 
 
Bond index funds (4)
 
14,106

 
—

 
14,106

 
11,806

 
—

 
11,806

Short term investment funds
 
—

 
503

 
503

 
—

 
419

 
419

 
 
$
41,822

 
$
503

 
$
42,325

 
$
35,059

 
$
419

 
$
35,478


______________________________
(1)
Over 90% of the assets of these funds are invested in large-cap U.S. companies. The remainder of the assets of these funds is invested in cash reserves.
(2)
Over 95% of the assets of these funds are invested in small-cap U.S. companies. The remainder of the assets of these funds is invested in cash reserves.
(3)
At least 90% of the assets of these funds are invested in international companies in developed markets (excluding the U.S. and Canada). The remainder of the assets of these funds is invested in cash reserves.
(4)
This category represents investment grade bonds of U.S. issuers, including U.S. Treasury notes.
Because of the immaterial amount of the Company's Level 3 pension plans assets, no summary of changes in the fair value of Level 3 pension plans assets is presented.
The Company's funding policy is consistent with the minimum funding requirements of federal law and regulations, and based on preliminary estimates, the Company expects to make contributions of approximately $1,164 for the salaried pension plan and approximately $930 for the wage pension plan in 2013.
The following benefit payments are expected to be paid:
 
 
Pension
Benefits
 
Post-
retirement
Healthcare
Estimated future benefit payments:
 
 
 
 
Year 1
 
$
2,548

 
$
1,753

Year 2
 
4,267

 
1,930

Year 3
 
4,633

 
2,080

Year 4
 
4,520

 
2,154

Year 5
 
4,174

 
1,996

Years 6 to 10
 
18,550

 
6,506