Employee Retirement Plans

12 Months Ended

Dec. 31, 2012

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 $290 and $487 at December 31, 2012 and 2011, respectively. The Company recorded a comprehensive loss of $64, net of $36 tax benefit, and a comprehensive loss of $149, net of $85 tax benefit, for the years ended December 31, 2012 and 2011, respectively. The Company made contributions of $68 and $18 and $194 to the Corson Plan in 2012, 2011 and 2010, respectively. The Company expects to make a contribution of $83 in 2013.

        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. The Plan's 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.

        The Corson Plan's 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, 25-50% for fixed income securities, 0-15% for other investments 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 Plan:

	2012			2011
Equity securities and funds		28.9	%		47.0	%
Institutional bond funds		58.2			39.6
Other investments		5.9			10.2
Cash and cash equivalents		7.0			3.2
		100.0	%		100.0	%

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

	2012		2011
Equity securities and funds	$	547	$	782
Institutional bond funds		1,101		660
Other investments		112		170
Cash and cash equivalents		132		52
	$	1,892	$	1,664

        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:

	2012			2011
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	2,151		$	2,048
Interest cost		89			104
Actuarial loss on plan assets		54			115
Benefits paid		(112	)		(116	)
Projected benefit obligation at end of year	$	2,182		$	2,151
Change in plan assets:
Fair value of plan assets at beginning of year	$	1,664		$	1,815
Employer contribution		151			18
Actual gain (loss) on plan assets		189			(53	)
Benefits		(112	)		(116	)
Fair value of plan assets at end of year	$	1,892		$	1,664
Underfunded status	$	(290	)	$	(487	)
Accumulated benefit obligation	$	2,182		$	2,151

        The net liability recognized for the Corson Plan on the Company's Consolidated Balance Sheets at December 31 consists of the following:

	2012		2011
Accrued benefit cost	$	290	$	487

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

	2012			2011
Discount rate		3.64	%		4.25	%
Expected long-term return on plan assets		7.00	%		7.75	%

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

	Year Ended December 31,
	2012			2011			2010
Interest cost	$	89		$	104		$	108
Expected return on plan assets		(119	)		(137	)		(126	)
Amortization of net actuarial loss		84			71			71
Net periodic benefit cost	$	54		$	38		$	53

        The Company expects benefit payments of $119 in 2013, $125 in 2014, $124 in 2015, $125 in 2016, $130 in 2017 and $707 for years 2018-2022.

        The Company has contributory retirement (401(k)) savings plans for non-union employees and for union employees of Arkansas Lime Company and Texas Lime Company. Company contributions to these plans were $147, $147 and $149 in 2012, 2011 and 2010, respectively.