Retirement Plans

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Compensation and Employee Benefit Plans [Text Block]

14. Retirement Plans

Certain employees of the Standard Commercial Segment were participants in a defined cash balance plan covering all full-time employees who had completed at least 1,000 hours of service. This plan was frozen in March 2001 in anticipation of distribution of plan assets to members upon plan termination. All participants were vested when the plan was frozen.

The following tables provide detail of the changes in benefit obligations, components of benefit costs, weighted-average assumptions, and plan assets for the retirement plan as of and for the twelve months ending December 31, 2012, 2011 and 2010 (in thousands) using a measurement date of December 31.

	2012			2011			2010
Assumptions (end of period):
Discount rate used in determining benefit obligation		3.89	%		4.50	%		5.25	%
Rate of compensation increase		N/A			N/A			N/A
Reconciliation of funded status (end of period):
Accumulated benefit obligation	$	(13,439	)	$	(12,990	)	$	(12,050	)
Projected benefit obligation	$	(13,439	)	$	(12,990	)	$	(12,050	)
Fair value of plan assets		9,754			9,019			9,217
Funded status	$	(3,685	)	$	(3,971	)	$	(2,833	)
Net actuarial loss		(4,545	)		(4,582	)		(3,114	)
Accumulated other comprehensive loss		(4,545	)		(4,582	)		(3,114	)
Prepaid pension cost		860			611			281
Net amount recognized as of December 31	$	(3,685	)	$	(3,971	)	$	(2,833	)
Changes in projected benefit obligation:
Benefit obligation as of beginning of period	$	12,990		$	12,050		$	11,301
Interest cost		564			609			651
Actuarial liability loss		700			1,160			925
Benefits paid		(815	)		(829	)		(827	)
Benefit obligation as of end of period	$	13,439		$	12,990		$	12,050
Change in plan assets:
Fair value of plan assets as of beginning of period	$	9,019		$	9,217		$	8,673
Actual return on plan assets (net of expenses)		839			(4	)		937
Employer contributions		711			635			434
Benefits paid		(815	)		(829	)		(827	)
Fair value of plan assets as of end of period	$	9,754		$	9,019		$	9,217
Net periodic pension cost:
Service cost - benefits earned during the period	$	-		$	-		$	-
Interest cost on projected benefit obligation		564			609			651
Expected return on plan assets		(584	)		(590	)		(546	)
Recognized actuarial loss		482			287			224
Net periodic pension cost	$	462		$	306		$	329
Discount rate		4.50	%		5.25	%		6.00	%
Expected return on plan assets		6.50	%		6.50	%		6.50	%
Rate of compensation increase		N/A			N/A			N/A

Estimated future benefit payments by fiscal year (in thousands):

2013	$	901
2014	$	896
2015	$	900
2016	$	886
2017	$	882
2018-2022	$	4,223

As of December 31, 2012, the fair value of the plan assets was composed of cash and cash equivalents of $0.4 million, bonds and notes of $3.2 million and equity securities of $6.2 million.

Our investment objectives are to preserve capital and to achieve long-term growth through a favorable rate of return equal to or greater than 5% over the long-term (60 year) average inflation rate as measured by the consumer price index. The objective of the equity portion of the portfolio is to achieve a return in excess of the Standard & Poor’s 500 index. The objective of the fixed income portion of the portfolio is to add stability, consistency, safety and total return to the total fund portfolio.

We prohibit investments in options, futures, precious metals, short sales and purchase on margin. We also restrict the investment in fixed income securities to “A” rated or better by Moody’s or Standard & Poor’s rating services and restrict investments in common stocks to only those that are listed and actively traded on one or more of the major United States stock exchanges, including NASDAQ. We manage to an asset allocation of 45% to 75% in equity securities. An investment in any single stock issue is restricted to 5% of the total portfolio value and 90% of the securities held in mutual or commingled funds must meet the criteria for common stocks.

To develop the expected long-term rate of return on assets assumption, we consider the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. This resulted in the selection of the 6.5% long-term rate of return on assets assumption. To develop the discount rate used in determining the benefit obligation we used the Mercer Above Mean Yield Curve at the measurement date to match the timing and amounts of projected future benefits.

We estimate contributing $0.4 million to the defined benefit cash balance plan during 2013. We expect our 2013 periodic pension cost to be $0.4 million, the components of which are interest cost of $0.5 million, expected return on plan assets of ($0.6) million and amortization of actuarial loss of $0.5 million.

The following table shows the weighted-average asset allocation for the defined benefit cash balance plan held as of December 31, 2012 and 2011.

	12/31/12			12/31/11
Asset Category:
Fixed income securities		33	%		32	%
Equity securities		63	%		64	%
Other		4	%		4	%
Total		100	%		100	%

Effective January 1, 2008, we determine the fair value of our financial instruments based on the fair value hierarchy established in ASC 820. (See Note 3.)

The following table presents, for each of the fair value hierarchy levels, our plan assets that are measured at fair value on a recurring basis at December 31, 2012 and December 31, 2011 (in thousands).

	As of December 31, 2012
	Quoted Prices in		Other
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Debt securities	$	-	$	3,188	$	-	$	3,188
Equity securities		6,153		-		-		6,153
Cash and equivalents		413		-		-		413
Total	$	6,566	$	3,188	$	-	$	9,754

	As of December 31, 2011
	Quoted Prices in		Other
	Active Markets for		Observable		Unobservable
	Identical Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total
Debt securities	$	-	$	2,916	$	-	$	2,916
Equity securities		5,733		-		-		5,733
Cash and equivalents		370		-		-		370
Total	$	6,103	$	2,916	$	-	$	9,019

We sponsor two defined contribution plans. Under these plans, employees may contribute a portion of their compensation on a tax-deferred basis, and we may contribute a discretionary amount each year. We contributed $0.1 million for the year ended December 31, 2012 and $0.2 million for each of the years ended December 31, 2011 and 2010, respectively.