Defined Benefit Postretirement Plans

6 Months Ended

Jun. 30, 2016

Defined Benefit Postretirement Plans [Abstract]

Note 5.

Defined Benefit Postretirement Plans

The Company has a qualified, noncontributory, defined benefit pension plan (“the Plan”) covering substantially all of its employees at June 30, 2016. Benefits paid from the plan are based on age, years of service, compensation and social security benefits, and are determined in accordance with defined formulas. The Company’s policy is to fund the pension plan in accordance with Employee Retirement Income Security Act of 1974 (“ERISA”) standards. Assets of the plan are invested in publicly traded stocks and bonds. The Company is not required to make contributions to the Plan in 2016 and did not do so during the six months ended June 30, 2016.

Market conditions can result in an unusually high degree of volatility and increase the risks and short-term liquidity associated with certain investments held by the Plan which could impact the value of these investments.

In addition to the Plan, the Company also provides supplemental employee retirement plans to certain current and former executives. These supplemental employee retirement plans and the Plan are collectively referred to herein as “Pension Benefits.”

Also, the Company provides certain health care benefits for retired employees. Benefits are accrued over the employees’ active service period. Only employees that were employed by the Company on or before January 1, 2000 are eligible to receive postretirement health care benefits. In addition, the Company assumed post-retirement medical life insurance benefits for certain Alliance employees, retirees and their spouses, if applicable, in the Alliance acquisition. These postretirement benefits are referred to herein as “Other Benefits.” The components of expense for Pension Benefits and Other Benefits are set forth below (in thousands):

	Pension Benefits								Other Benefits
	Three months ended June 30,								Three months ended June 30,
Components of net periodic (benefit) cost:	2016				2015				2016			2015
Service cost		$	560			$	655			$	4		$	4
Interest cost			1,051				998				94			91
Expected return on plan assets			(1,835	)			(2,150	)			-			-
Net amortization			483				546				29			15
Total cost (benefit)		$	259			$	49			$	127		$	110

	Pension Benefits								Other Benefits
	Six months ended June 30,								Six months ended June 30,
Components of net periodic (benefit) cost:	2016				2015				2016			2015
Service cost		$	1,120			$	1,310			$	8		$	8
Interest cost			2,102				1,996				188			182
Expected return on plan assets			(3,670	)			(4,300	)			-			-
Net amortization			966				1,092				58			30
Total cost (benefit)		$	518			$	98			$	254		$	220