Note 9 - Accrued Retirement Benefits

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

9. ACCRUED RETIREMENT BENEFITS

Accrued retirement benefits at December 31, 2014 and 2013 consisted of the following:

	2014			2013
	(in thousands)
Defined benefit pension plans	$	2,540		$	16,941
Supplemental executive retirement plan		4,468			3,972
Deferred compensation plan		276			397
Total		7,284			21,310
Less current portion		(391	)		(443	)
Non-current portion of accrued retirement benefits	$	6,893		$	20,867

The Company has two defined benefit pension plans which cover substantially all of its former bargaining and non-bargaining full-time, part-time and intermittent employees. In 2011, pension benefits under both plans were frozen. The Company also has an unfunded nonqualified supplemental executive retirement plan which covers seventeen of its former executives. The supplemental executive retirement plan was frozen in 2009 and future vesting of additional benefits was discontinued.

The measurement date for the Company’s benefit plan disclosures is December 31^st of each year. The changes in benefit obligations and plan assets for 2014 and 2013, and the funded status of the plans, and assumptions used to determine benefit information at December 31, 2014 and 2013 were as follows:

	2014			2013
	(in thousands)
Change in benefit obligations:
Benefit obligations at beginning of year	$	66,091		$	72,824
Interest cost		3,093			2,880
Actuarial (gain) loss		6,577			(5,193	)
Benefits paid		(4,412	)		(4,420	)
Benefit obligations at end of year		71,349			66,091
Change in plan assets:
Fair value of plan assets at beginning of year		45,178			42,518
Actual return on plan assets		3,404			4,691
Employer contributions		20,171			2,389
Benefits paid		(4,412	)		(4,420	)
Fair value of plan assets at end of year		64,341			45,178
Funded status	$	(7,008	)	$	(20,913	)
Accumulated benefit obligations	$	71,349		$	66,091
Weighted average assumptions used to determine benefit obligations at December 31:
Discount rate	3.96%	-	4.07%	4.68%	-	4.92%
Expected long-term return on plan assets		5.32%			7.00%
Rate of compensation increase		n/a			n/a

Accumulated other comprehensive loss of $25.6 million and $19.7 million at December 31, 2014 and 2013, respectively, represent the net actuarial loss which has not yet been recognized as a component of pension expense. In 2015, $0.8 million of net actuarial loss is expected to be recognized as a component of net pension expense.

Components of net periodic benefit cost and other amounts recognized in comprehensive income were as follows:

	2014			2013
	(in thousands)
Pension and other benefits:
Interest cost	$	3,093		$	2,880
Expected return on plan assets		(3,316	)		(2,906	)
Recognized net actuarial loss		604			914
Pension expense	$	381		$	888
Other changes in plan assets and benefit obligations recognized in comprehensive income:
Net (gain) loss	$	6,486		$	(6,973	)
Recognized loss		(604	)		(914	)
Total recognized (gain) loss in comprehensive income	$	5,882		$	(7,887	)

Weighted average assumptions used to determine net periodic benefit cost:	2014			2013
Pension benefits:
Discount rate	4.68%	-	4.92%	3.87%	-	4.16%
Expected long-term return on plan assets		7.00%			7.00%
Rate of compensation increase		n/a			n/a

The expected long-term rate of return on plan assets was based on a building-block approach. Historical markets are studied and long-term historical relationships between equities and fixed income are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, are evaluated before long-term capital markets are determined. Diversification and rebalancing of plan assets are properly considered as part of establishing long-term portfolio returns.

The fair values of the Company’s pension plan assets at December 31, 2014 and 2013, by asset category, were as follows:

	2014 Fair Value Measurements (in thousands)
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
AHGT pooled equity funds	$	-	$	9,884	$	9,884
AHGT pooled fixed income funds		-		51,483		51,483
Cash management funds		-		2,974		2,974
	$	-	$	64,341	$	64,341

	2013 Fair Value Measurements (in thousands)
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
AHGT pooled equity funds	$	-	$	25,061	$	25,061
AHGT pooled fixed income funds		-		19,160		19,160
Cash management funds		-		957		957
	$	-	$	45,178	$	45,178

Aon Hewitt Group Trust (AHGT) pooled equity and fixed income funds: Pooled equity and fixed income funds consist of various AHGT Funds offered through private placements. The units are valued daily using net asset values (NAV). NAV are based on the fair value of each fund’s underlying investments. Level 1 assets are priced using quotes for trades occurring in active markets for the identical asset. Level 2 assets are priced using observable inputs for the asset (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

An administrative committee consisting of certain senior management employees administers the Company’s defined benefit pension plans. The pension plan assets are allocated among approved asset types based on the plans current funded status and other characteristics set by the administrative committee, and subject to liquidity requirements of the plans.

Estimated future benefit payments are as follows (in thousands):

2015	$	4,555
2016		4,504
2017		4,482
2018		4,517
2019		4,528
2020 - 2024		22,437

The Company’s cessation of its agriculture and golf operations and the corresponding reduction in active participant counts triggered the requirement that the Company provide security to the Pension Benefits Guaranty Corporation (PBGC) of approximately $23.9 million to support the unfunded liabilities of its pension plans or to make contributions to the plans in excess of the minimum required amounts. In 2011 and 2012, the Company pledged a total of 8,400 acres of former agricultural lands in West Maui to the PBGC for five years in satisfaction of the requirement. No formal appraisal or determination of the fair value of the pledged properties was performed by the Company or the PBGC.

In October 2014, the Company sold its Lipoa Point property to the State of Hawaii for $19.8 million. The sale resulted from a bill enacted by the State of Hawaii in June 2013 which provided for the purchase of Lipoa Point with the stipulation that the proceeds from the sale be designated for the benefit of the Company’s pension plans. The Lipoa Point property was part of the 8,400 acres of former agricultural lands pledged to the PBGC.

Upon the closing of the Lipoa Point sale, the $19.8 million sale price, less closing costs of approximately $400,000, was transferred to the trustee of the Company’s pension plans and the mortgage on the property held by the PBGC was released. With the funding of the Company’s pension plans from the Lipoa Point sale, the Company does not expect to be required to make minimum contributions to its pension plans for the foreseeable future. Required minimum contributions totaled $2.8 million and $2.1 million for 2014 and 2013, respectively.