Employee Retirement Plans

12 Months Ended

Dec. 31, 2011

Employee Retirement Plans

Employee Retirement Plans

(6) Employee Retirement Plans

        The Company has a noncontributory defined benefit pension plan (the "Corson Plan") that covers substantially all union employees previously employed by its wholly owned subsidiary, Corson Lime Company. In 1997, the Company sold substantially all of the assets of Corson Lime Company, and all benefits for participants in the Corson Plan were frozen. During 1997 and 1998, the Company made contributions to the Corson Plan that were intended to fully fund the benefits earned by the participants. The Company made no contributions to the Corson Plan from 1999 through 2002. In prior years, significant declines in the financial markets have unfavorably impacted plan asset values, resulting in an unfunded projected benefit obligation of $487 and $233 at December 31, 2011 and 2010, respectively. The Company recorded a comprehensive loss of $149, net of $96 tax benefit and, a comprehensive gain of $30, net of $17 tax expense, for the years ended December 31, 2011 and 2010, respectively. The Company made contributions of $18 and $194 and $333 to the Corson Plan in 2011, 2010 and 2009, respectively. The Company expects to make a contribution of $290 in 2012.

        In consultation with the investment advisor for the Corson Plan, the administrative committee, consisting of management employees appointed by the Company's Board of Directors, establishes the investment objectives for the Corson Plan's assets. Corson Plan assets are invested using a total return investment approach, whereby a mix of equity securities, debt securities, other investments and cash and cash equivalents are used to preserve asset values, diversify risk and achieve the target investment return benchmark. Investment strategies and asset allocations are based on careful consideration of plan liabilities, the plan's funded status and financial condition. Investment performance and asset allocation are measured and monitored on an ongoing basis.

        Corson Plan assets are managed in a balanced portfolio composed of two major components: an equity portion and a fixed income portion. The expected role of equity investments is to maximize the long-term real growth of the Corson Plan's assets, while the role of fixed income investments is to generate current income, provide for more stable periodic returns and provide some protection against a prolonged decline in the market value of equity investments.

        The current target allocations for Corson Plan assets are 50-70% for equity securities, 30-50% for fixed income securities and 0-10% for cash and cash equivalents. Equity securities include U.S. and international equity, while fixed income securities include short-duration government agencies and medium-duration bond funds and high-yield bond funds. Other investments include investments in a commodity linked fund and a real estate index fund. The following table sets forth the asset allocation at December 31 for the Corson Plan:

	2011			2010
Equity securities and funds		47.0	%		50.2	%
Institutional bond funds		39.6			36.1
Other investments		10.2			11.2
Cash and cash equivalents		3.2			2.5
		100.0	%		100.0	%

        The fair values of the Corson Plan assets at December 31 by asset category are as follows:

	2011		2010
Equity securities and funds	$	782	$	913
Institutional bond funds		660		655
Other investments		170		204
Cash and cash equivalents		52		43
	$	1,664	$	1,815

        All fair values of the Corson Plan assets are determined by quoted prices on active markets for identical assets (Level 1).

        The following table sets forth the funded status at December 31 of the Corson Plan accrued pension benefits:

	2011			2010
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	2,048		$	1,980
Interest cost		104			108
Actuarial loss on plan assets		115			83
Benefits paid		(116	)		(123	)
Projected benefit obligation at end of year	$	2,151		$	2,048
Change in plan assets:
Fair value of plan assets at beginning of year	$	1,815		$	1,559
Employer contribution		18			194
Actual gain on plan assets		(53	)		185
Benefits paid		(116	)		(123	)
Fair value of plan assets at end of year	$	1,664		$	1,815
Underfunded status	$	(487	)	$	(233	)
Accumulated benefit obligation	$	2,151		$	2,048

        The net liability recognized for the Corson Plan in the Consolidated Balance Sheets at December 31 consists of the following:

	2011		2010
Accrued benefit cost	$	487	$	233

        The weighted-average assumptions used in the measurement of the Corson Plan benefit obligation at December 31 are as follows:

	2011			2010
Discount rate		4.25	%		5.25	%
Expected long-term return on plan assets		7.75	%		7.75	%

        The following table provides the components of the Corson Plan net periodic benefit cost:

	Year Ended December 31,
	2011			2010			2009
Interest cost	$	104		$	108		$	102
Expected return on plan assets		(137	)		(126	)		(99	)
Amortization of net actuarial loss		71			71			68
Net periodic benefit cost	$	38		$	53		$	71

        The Company expects benefit payments of $123 in 2012, $127 in 2013, $133 in 2014, $131 in 2015, $134 in 2016 and $732 for years 2017-2021.

        The Company has contributory retirement (401(k)) savings plans for nonunion employees and for union employees of Arkansas Lime Company and Texas Lime Company. Company contributions to these plans were $147, $149 and $130 in 2011, 2010 and 2009, respectively.