PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

6 Months Ended

Jun. 30, 2011

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

NOTE E — PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

Nonunion Defined Benefit Pension, Supplemental Benefit Pension and Postretirement Health Plans

The following is a summary of the components of net periodic benefit cost:

	Three Months Ended June 30
	Nonunion Defined						Supplemental				Postretirement
	Benefit Pension Plan						Benefit Pension Plan				Health Benefit Plan
	2011			2010			2011		2010		2011			2010
	($ thousands)
Service cost	$	2,164		$	2,236		$	—	$	—	$	56		$	35
Interest cost	2,488			2,734			96		103		196			217
Expected return on plan assets	(3,146		)	(3,043		)	—		—		—			—
Amortization of transition obligation	—			—			—		—		—			33
Amortization of prior service credit	—			(1		)	—		—		(47		)	—
Pension settlement expense	—			—			—		178		—			—
Amortization of net actuarial loss and other	1,730			1,896			82		70		28			5
Net periodic benefit cost	$	3,236		$	3,822		$	178	$	351	$	233		$	290

	Six Months Ended June 30
	Nonunion Defined						Supplemental				Postretirement
	Benefit Pension Plan						Benefit Pension Plan				Health Benefit Plan
	2011			2010			2011		2010		2011			2010
	($ thousands)
Service cost	$	4,328		$	4,472		$	—	$	—	$	112		$	70
Interest cost	4,977			5,468			193		208		391			435
Expected return on plan assets	(6,292		)	(6,086		)	—		—		—			—
Amortization of transition obligation	—			—			—		—		—			67
Amortization of prior service credit	—			(3		)	—		—		(95		)	—
Pension settlement expense	—			—			—		178		—			—
Amortization of net actuarial loss and other	3,460			3,794			164		129		56			9
Net periodic benefit cost	$	6,473		$	7,645		$	357	$	515	$	464		$	581

The Company’s full-year 2011 nonunion defined benefit pension plan expense is estimated to be $12.9 million compared to $15.3 million for the year ended December 31, 2010. The Company does not have a required minimum cash contribution but, depending on all relevant factors, could make contributions to its nonunion defined benefit pension plan in 2011. The Company’s nonunion defined benefit pension plan covers substantially all noncontractual employees hired before January 1, 2006. All eligible noncontractual employees hired subsequent to December 31, 2005 participate in a defined contribution plan for which the Company may make discretionary contributions on an annual basis.

Multiemployer Plans

Under the provisions of the Taft-Hartley Act, retirement and health care benefits for ABF’s contractual employees are provided by a number of multiemployer plans. ABF’s contributions to these plans are based generally on the time worked by its contractual employees, as specified in ABF’s five-year collective bargaining agreement that became effective on April 1, 2008 and other supporting supplemental agreements. ABF recognizes as expense the contractually required contribution for the period and recognizes as a liability any contributions due and unpaid.

ABF currently contributes to 25 multiemployer pension plans, which vary in size and in funded status. In the event of the termination of a multiemployer pension plan or if ABF were to withdraw from a multiemployer pension plan, under current law, ABF would have material liabilities for its share of the unfunded vested liabilities of each such plan. Multiemployer plans that enter reorganization status subject contributing employers to an increased contribution requirement, but will generally not require a contribution increase of more than 7% over the level required in the preceding year. ABF has not received notification of any plan termination, and ABF does not currently intend to withdraw from these plans. Therefore, the Company believes the occurrence of events that would require recognition of liabilities for its share of unfunded vested benefits is remote.

The multiemployer plan administrators have provided to the Company no other significant changes in information related to multiemployer plans from the information disclosed in the Company’s 2010 Annual Report on Form 10-K.