Components of Net Periodic Benefit Cost

9 Months Ended

Sep. 30, 2012

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 benefits for the three and nine months ended September 30, 2012 and 2011 were as follows:

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2012			2011			2012			2011
	(in thousands)
Service cost	$	—		$	—		$	—		$	18
Interest cost	798			835			2,394			2,505
Expected return on plan assets	(717		)	(757		)	(2,151		)	(2,270		)
Amortization of prior service cost	—			—			—			8
Amortization of transition liability	—			—			—			11
Recognized actuarial loss	185			203			555			607
Net expense	$	266		$	281		$	798		$	879

The minimum required contributions to the Company’s defined benefit pension plans in 2012 are expected to be $2.0 million, of which $1.7 million has been funded through September 30, 2012.

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 (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 of approximately $18.7 million 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 form and amount of collateral that will be provided to the PBGC in connection with the unfunded liabilities.