XML 45 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Pension and Other Postretirement Benefits
9 Months Ended
Apr. 30, 2014
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Pension and Other Postretirement Benefits Disclosure
PENSION AND OTHER POSTRETIREMENT BENEFITS

The components of net periodic pension and postretirement health benefit costs were as follows:
 
Pension Benefits
 
(in thousands)
 
For the Three Months Ended April 30,
 
For the Nine Months Ended April 30,
 
2014
 
2013
 
2014
 
2013
Service cost
$
352

 
$
437

 
$
1,073

 
$
1,313

Interest cost
445

 
386

 
1,316

 
1,158

Expected return on plan assets
(428
)
 
(377
)
 
(1,286
)
 
(1,132
)
Amortization of:
 
 
 
 
 
 
 
  Prior service costs
3

 
4

 
10

 
11

  Other actuarial loss
93

 
221

 
249

 
663

Net periodic benefit cost
$
465

 
$
671

 
$
1,362

 
$
2,013

 
 
 
 
 
 
 
 
 
Postretirement Health Benefits
 
(in thousands)
 
For the Three Months Ended April 30,
 
For the Nine Months Ended April 30,
 
2014
 
2013
 
2014
 
2013
Service cost
$
26

 
$
34

 
$
86

 
$
102

Interest cost
26

 
24

 
84

 
72

Amortization of:
 
 
 
 
 
 
 
  Net transition obligation
4

 
4

 
12

 
12

  Prior service costs
(2
)
 

 
(5
)
 

  Other actuarial loss
5

 
13

 
20

 
39

Net periodic benefit cost
$
59

 
$
75

 
$
197

 
$
225



Our plan covering postretirement health benefits is an unfunded plan. We have funded the pension plan based upon actuarially determined contributions that take into account the amount deductible for income tax purposes, the normal cost and the minimum and the maximum contribution requirements of various regulations. We contributed $375,000 to our pension plan during the third quarter ended April 30, 2014. We estimate contributions will be $230,000 for the remainder of fiscal 2014. See Item 3. "Quantitative and Qualitative Disclosures About Market Risk" for a discussion of the potential impact of financial market fluctuations on pension plan assets and future funding contributions.

Assumptions used in the previous calculations were as follows:
 
Pension Benefits
 
Postretirement Health Benefits
 
For the Three and Nine Months Ended April 30,
 
2014
 
2013
 
2014
 
2013
Discount rate for net periodic benefit cost
4.80
%
 
3.75
%
 
4.80
%
 
3.75
%
Rate of increase in compensation levels
3.50
%
 
3.50
%
 

 

Long-term expected rate of return on assets
7.50
%
 
7.50
%
 

 



The medical cost trend assumption for postretirement health benefits was 8.0%. The graded trend rate is expected to decrease to an ultimate rate of 5.0% in fiscal 2024.