Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

Defined Pension Plans Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note 10
Employee Benefit Plans

Defined Benefit Plan
The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers most of its employees. The Company accrues and makes contributions designed to fund normal service costs on a current basis using the projected unit credit with service proration method to amortize prior service costs arising from improvements in pension benefits and qualifying service prior to the establishment of the plan over a period of approximately 30 years.

A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:

(In thousands)	2012			2011
Projected benefit obligation:
Balance, January 1	$	53,972		$	43,337
Service cost		2,799			2,073
Interest cost		2,570			2,423
Actuarial loss		9,063			7,357
Benefits paid		(1,317	)		(1,218	)
Balance, December 31	$	67,087		$	53,972
Plan assets:
Fair value, January 1	$	53,895		$	45,427
Actual return		6,556			686
Employer contribution		2,250			9,000
Benefits paid		(1,317	)		(1,218	)
Fair value, December 31	$	61,384		$	53,895
Funded status:
Accrued pension asset (liability)	$	(5,703	)	$	(77	)

The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2012, 2011 and 2010, the Plan’s expected benefit cash flows were discounted using the Citibank Above Median Curve.

	2012		2011		2010
Weighted average discount rate	4.25	%	4.75	%	5.75	%
Rate of increase in compensation levels	3.75	%	4.00	%	4.00	%

The accumulated benefit obligation was $54,094,000 and $43,421,000 as of December 31, 2012 and 2011, respectively. The Company expects to contribute approximately $2,000,000 to the Plan in 2013. The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the Plan:

	Amount
2013	$	1,401,000
2014		1,540,000
2015		1,670,000
2016		1,884,000
2017		2,097,000
2018-2022		14,845,359

The Plan’s pension cost included the following components:

	For the Year Ended
	December 31,
(In thousands)	2012			2011			2010
Service cost – benefits earned during the year	$	2,799		$	2,073		$	1,771
Interest cost on projected benefit obligations		2,570			2,423			2,290
Expected return on plan assets		(3,967	)		(3,314	)		(2,440	)
Net amortization and deferral		1,473			603			616
Net periodic pension cost	$	2,875		$	1,785		$	2,237

The following represent the major assumptions used to determine the net pension cost of the Plan:

	2012		2011		2010
Weighted average discount rate	4.75	%	5.75	%	6.25	%
Rate of increase in compensation levels	4.00	%	4.00	%	4.00	%
Expected long-term rate of return on assets	7.25	%	7.25	%	7.25	%

The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 50% fixed income, 34% U.S. equity and 16% Non-U.S. equity. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity components are invested in pooled large cap, small/mid cap and Non-U.S. stocks. Theassumed long-term rate of return on assets, which falls within the expected range, is 7.25% as derived below:

	Expected Long-Term
Asset Class	Return on Class	X     Allocation	=     Assumption
Fixed Income	3 – 5%	50%	1.5 – 2.5%
U.S. Equity	5 – 9%	34%	1.7 – 3.1%
Non-U.S. Equity	5 – 10%	16%	0.8 – 1.7%
			4.0 – 7.3%

A summary of the fair value measurements by type of asset is as follows:

	Fair Value Measurements as of December 31,
	2012						2011
(In thousands)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)
Cash	$	238	$	238	$	—	$	219	$	219	$	—
Equity securities
U. S. Large Cap Growth		5,193		—		5,193		4,497		—		4,497
U. S. Large Cap Value		5,317		—		5,317		4,586		—		4,586
U. S. Small/Mid Cap Growth		2,159		—		2,159		1,856		—		1,856
U. S. Small/Mid Cap Value		2,167		—		2,167		1,888		—		1,888
Non-U. S. Core		9,478		—		9,478		8,470		—		8,470
U. S. Large Cap Passive		6,004		—		6,004		5,387		—		5,387
Emerging Markets		732		—		732		—		—		—
Fixed Income
U. S. Core Opportunistic		22,189		—		22,189		19,410		—		19,410
U. S. Passive		7,907		—		7,907		7,582		—		7,582
Total	$	61,384	$	238	$	61,146	$	53,895	$	219	$	53,676

Supplemental Executive Retirement Plan
The Company also has an unfunded supplemental executive retirement plan (“SERP”) which covers key executives of the Company. The SERP is a noncontributory plan in which the Company’s subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as the Plan.

A summary of the activity in the SERP’s projected benefit obligation, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:

	December 31,
(In thousands)	2012			2011
Benefit obligation:
Balance, January 1	$	7,434		$	5,479
Service cost		115			89
Interest cost		307			295
Benefits paid		(236	)		(236	)
Actuarial loss (gain)		862			1,807
Balance, December 31	$	8,482		$	7,434

The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2012, 2011 and 2010, the SERP’s expected benefit cash flows were discounted using the Citigroup Above Median Curve.

	2012		2011		2010
Weighted average discount rate	4.00	%	4.50	%	5.50	%
Rate of increase in compensation levels	3.75	%	4.00	%	4.00	%

The accumulated benefit obligation was $6,200,000 and $5,109,000 as of December 31, 2012 and 2011, respectively. Since this is an unfunded plan there are no plan assets. Benefits paid were $236,000 in 2012, $236,000 in 2011 and $235,000 in 2010. Expected future benefits payable by the Company over the next 10 years are as follows:

	Amount
2013	$	236,000
2014		235,000
2015		234,000
2016		241,000
2017		254,000
2018-2022		2,083,000

The SERP’s pension cost included the following components:

	For the Year Ended December 31,
(In thousands)	2012		2011		2010
Service cost – benefits earned during the year	$	115	$	89	$	78
Interest cost on projected benefit obligations		307		295		315
Net amortization and deferral		360		250		258
Net periodic pension cost	$	782	$	634	$	651

The pre-tax amounts in accumulated other comprehensive loss as of December 31, were as follows:

	The Plan				SERP
(In thousands)	2012		2011		2012		2011
Prior service cost	$	16	$	24	$	—	$	—
Net actuarial loss		26,385		21,376		4,304		3,802
Total	$	26,401	$	21,400	$	4,304	$	3,802

The estimated pre-tax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2012 expected to be recognized as components of net periodic benefit cost in 2013 for the Plan are $3,519,000 and $1,840,000, respectively. The estimated pre-tax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2012 expected to be recognized as components of net periodic benefit cost in 2013 for SERP are $144,000 and $551,000 respectively.

The Company also maintains a noncontributory profit sharing program, which covers most of its employees. Employer contributions are calculated based upon formulas which relate to current operating results and other factors. Profit sharing expense recognized in the consolidated statements of income in 2012, 2011 and 2010 was $5,213,000, $5,270,000 and $4,665,000, respectively.

The Company also sponsors a defined contribution 401(k) plan to provide additional retirement benefits to substantially all employees. Contributions under the 401(k) plan for 2012, 2011 and 2010 were $537,000, $497,000 and $450,000, respectively.