Components of Net Periodic Benefit Cost

9 Months Ended

Sep. 30, 2011

Components of Net Periodic Benefit Cost

Components of Net Periodic Benefit Cost

10.Components of Net Periodic Benefit Cost

The net periodic benefit costs for pension and other postretirement benefits for the three and nine months ended September 30, 2011 and 2010 were as follows:

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2011			2010			2011			2010
	(in thousands)
Pension Benefits
Service cost	$	—		$	31		$	18		$	91
Interest cost	835			884			2,505			2,629
Expected return on plan assets	(757		)	(699		)	(2,270		)	(2,109		)
Amortization of prior service cost	—			1			8			3
Amortization of transition liability	—			1			11			5
Recognized actuarial loss	203			207			607			574
Net expense	$	281		$	425		$	879		$	1,193
Other Benefits
Service cost	$	—		$	—		$	—		$	33
Interest cost	—			33			—			98
Amortization of prior service cost	—			(20		)	—			(59		)
Recognized actuarial gain	—			(213		)	—			(637		)
Recognized gain due to curtailment	—			—			—			(576		)
Recognized gain due to settlement	—			—			—			(2,683		)
Net expense (credit)	$	—		$	(200	)	$	—		$	(3,824	)

In 2011, there are no other postretirement benefits as the Company’s postretirement health and life insurance plans were terminated in 2010.  In January 2010, the Company terminated its postretirement life insurance plan and in February 2010, the Company terminated its postretirement medical coverage for non-bargaining retirees.  The curtailment and settlement gain from these events totaled $3,259,000 of which $2,334,000 was recorded in discontinued operations and $921,000 was included in general and administrative expense in the first quarter of 2010.  In December 2010, the Company’s postretirement medical coverage for bargaining unit employees was cancelled.

The minimum required contributions to the Company’s defined benefit pension plans in 2011 are expected to be $2.0 million, $1.6 million of which has been funded through September 30, 2011.

The Company’s cessation of its pineapple operations at the end of 2009 and the corresponding reduction in the active participant count for the Pension Plan for Bargaining Unit and Hourly Employees (the “Bargaining Plan”) triggered the requirement that the Company provide security to the Pension Benefits Guaranty Corporation (PBGC) of approximately $5.2 million to support the unfunded liabilities of the Bargaining Plan.  In April 2011, the Company executed a settlement agreement with the PBGC and pledged security of approximately 1,400 acres in West Maui that will be released in five years if the Company does not otherwise default on the agreement.  The Company was advised in October 2011 that the cessation of its golf operations and the corresponding reduction in the active participant count for the Bargaining Plan and the Pension Plan for Non-Bargaining Unit Employees has triggered the requirement that the Company provide additional security to the PBGC to support the unfunded liabilities of the two pension plans or to make contributions to the plans in excess of the minimum required amounts.  The Company is currently working with the PBGC to reach an agreement as to the amount of the contributions that will be made or the form and amount of collateral that will be provided.