Defined Benefit Plans

3 Months Ended

Dec. 31, 2012

Defined Benefit Plans

9. DEFINED BENEFIT PLANS

Defined Benefit Plan Descriptions.  We maintain three defined benefit pension plans which cover substantially all of our employees who were employed by the Company prior to July 1, 2010: the Amended and Restated American Pacific Corporation Defined Benefit Pension Plan, the Ampac Fine Chemicals LLC Pension Plan for Salaried Employees, and the Ampac Fine Chemicals LLC Pension Plan for Bargaining Unit Employees, each as amended to date. Collectively, these three plans are referred to as the “Pension Plans”. Pension Plan benefits are paid based on an average of earnings, retirement age, and length of service, among other factors. In May 2010, our board of directors approved amendments to our Pension Plans which effectively closed the Pension Plans to participation by any new employees. Retirement benefits for existing U.S. employees and retirees through June 30, 2010 were not affected by this change. Beginning July 1, 2010, new employees began participating solely in one of the Company’s 401(k) plans. In addition, we maintain the American Pacific Corporation Supplemental Executive Retirement Plan, as amended and restated, (the “SERP”) that includes three executive officers and two former executive officers. We use a measurement date of September 30 to account for our Pension Plans and SERP.

Net periodic pension cost consists of the following:

	Three Months Ended
	December 31,
	2012		2011
Pension Plans:
Service Cost	$	830	$	720
Interest Cost		983		963
Expected Return on Plan Assets		(1,100)		(770)
Recognized Actuarial Losses		893		597
Amortization of Prior Service Costs		16		18
Net Periodic Pension Cost	$	1,622	$	1,528
Supplemental Executive Retirement Plan:
Service Cost	$	204	$	110
Interest Cost		106		93
Recognized Actuarial Losses		94		-
Amortization of Prior Service Costs		105		105
Net Periodic Pension Cost	$	509	$	308

Defined Contribution Plan Descriptions. We maintain two 401(k) plans in which participating employees may make contributions. One covers substantially all employees except bargaining unit employees of our Fine Chemicals segment and the other covers those bargaining unit employees. We make matching contributions for all Fine Chemicals segment employees and, since July 1, 2010, for all eligible new employees.

Contributions and Benefit Payments. For the three months ended December 31, 2012, we contributed $2,391 to the Pension Plans to fund benefit payments and anticipate making approximately $4,313 in additional contributions through September 30, 2013. For the three months ended December 31, 2012, we contributed $132 to the SERP to fund benefit payments and anticipate making approximately $396 in additional contributions through September 30, 2013.