DEFINED BENEFIT PLANS

6 Months Ended

Mar. 31, 2013

DEFINED BENEFIT PLANS

10. 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				Six Months Ended
	March 31,				March 31,
	2013		2012		2013		2012
Pension Plans:
Service Cost	$	830	$	720	$	1,660	$	1,440
Interest Cost		984		962		1,967		1,925
Expected Return on Plan Assets		(1,100)		(770)		(2,200)		(1,540)
Recognized Actuarial Losses		892		598		1,785		1,195
Amortization of Prior Service Costs		15		17		31		35
Net Periodic Pension Cost	$	1,621	$	1,527	$	3,243	$	3,055
Supplemental Executive Retirement Plan:
Service Cost	$	204	$	110	$	408	$	220
Interest Cost		105		92		211		185
Recognized Actuarial Losses		94		-		188		-
Amortization of Prior Service Costs		105		105		210		210
Net Periodic Pension Cost	$	508	$	307	$	1,017	$	615

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 six months ended March 31, 2013, we contributed $3,552 to the Pension Plans to fund benefit payments and anticipate making approximately $3,152 in additional contributions through September 30, 2013. For the six months ended March 31, 2013, we contributed $264 to the SERP to fund benefit payments and anticipate making approximately $263 in additional contributions through September 30, 2013.