Employee Savings, Stock Purchase and Supplemental Executive Retirement Plans

12 Months Ended

Dec. 31, 2012

Employee Savings, Stock Purchase and Supplemental Executive Retirement Plans

Employee Savings, Stock Purchase and Supplemental Executive Retirement Plans

Note I: Employee Savings, Stock Purchase and Supplemental Executive Retirement Plans

Retirement Savings Opportunity Plan ("RSOP")

All full-time employees are eligible to participate in the RSOP. Part-time employees are eligible to participate in the RSOP following the completion of 1,000 hours of service within the first 12 months of employment or within any plan year after the date of hire. Pursuant to Section 401(k) of the Internal Revenue Code, the plan permits deferral of a portion of a participant's income into a variety of investment options. Total compensation expense related to the Company's matching contributions for this plan totaled $2.0 million, $1.8 million and $1.9 million in 2012, 2011 and 2010, respectively.

Employee Stock Purchase Plan ("ESPP")

All full-time employees of the Company, with the exception of its executive officers, are eligible to participate in the ESPP. Eligible employees authorize payroll deductions to be made for the purchase of shares. The Company matches a portion of the employee's contribution by donating an additional 20.0 percent of the employee's payroll deduction. Stock is purchased by a plan administrator on a monthly basis. All brokerage and transaction fees for purchasing the stock are paid for by the Company. The Company's expense related to its matching contributions for this plan totaled $164,000, $153,000 and $135,000 in 2012, 2011 and 2010, respectively.

Supplemental Executive Retirement Plan

The Company has a supplemental nonqualified retirement plan, which generally vests over five-year periods beginning in 2003, pursuant to which it will pay supplemental pension benefits to key employees upon retirement. In connection with this plan, the Company has purchased cost-recovery life insurance on the lives of certain employees. Insurance contracts associated with the plan are held by trusts established as part of the plan to implement and carry out its provisions and to finance its related benefits. The trusts are owners and beneficiaries of such contracts. The amount of coverage is designed to provide sufficient revenue to cover all costs of the plan if assumptions made as to employment term, mortality experience, policy earnings and other factors are realized. At December 31, 2012, the value of the assets held in trust totaled $13.1 million, compared to $11.1 million at December 31, 2011, and was included in "Other" assets within the Consolidated Balance Sheets. The net periodic benefit income of this plan for the year ended December 31, 2012, totaled $599,000, which included an investment gain of $1.1 million on the cash surrender value of the insurance contracts and a death benefit of $863,000, offset by interest costs of $1.2 million and by service costs of $121,000. The net periodic benefit cost for the year ended December 31, 2011, totaled $1.6 million, which included interest costs of $731,000, an investment loss of $521,000 on the cash surrender value of the insurance contracts and service costs of $347,000. The net periodic benefit cost for the year ended December 31, 2010, totaled $351,000, which included interest costs of $660,000 and service costs of $204,000, offset by an investment gain of $513,000 on the cash surrender value of the insurance contracts. The $12.7 million and $11.3 million projected benefit obligations at December 31, 2012 and 2011, respectively, were equal to the net liabilities recognized in the Consolidated Balance Sheets at those dates. The weighted-average discount rates used for the plan were 6.6 percent for 2012 and 7.0 percent for 2011 and 2010.