10. RETIREMENT PLANS

12 Months Ended

Dec. 31, 2012

Pension and Other Postretirement Benefits Disclosure [Text Block]

10. RETIREMENT PLANS

Prior to the end of 2011, we sponsored a noncontributory defined benefit pension plan covering our non-union workers in our Ohio and Puerto Rico operations. Benefits under the non-union plan were based upon years of service and highest compensation levels as defined. We contributed to the plan the minimum amount required by regulation. On December 31, 2005 we froze the noncontributory defined benefit pension plan for all non-U.S. territorial employees.

In the fourth quarter of 2011, we made a decision to fully fund and terminate the pension plan. During the fourth quarter, we contributed $4.9 million into the plan and incurred related expenses and other adjustments of $0.4 million. As a result of these actions, we recorded pension termination charges totaling $5.3 million and an income tax benefit of $1.6 million.

The funded status of the Company’s plan and reconciliation of accrued pension cost at December 31, 2011 is presented below (information with respect to benefit obligations and plan assets are as of December 31):

	December 31,
	2011
Change in benefit obligation:
Projected benefit obligation at beginning of the year	$	11,548,148
Service cost		123,360
Interest cost		625,322
Change in discount rate		-
Curtailment decrease		-
Actuarial (gain)/loss		296,751
Benefits paid		(12,593,581	)
Projected benefit obligation at end of year	$	-
Change in plan assets:
Fair value of plan assets at beginning of year	$	8,028,855
Employer contributions		5,038,632
Actual return on plan assets		(473,906	)
Benefits paid		(12,593,581	)
Fair value of plan assets at end of year	$	-

F-18

Net pension cost of our plan is as follows:

	2011			2010
Service cost	$	123,360		$	79,909
Interest cost		625,322			646,708
Expected return on assets		(626,365	)		(532,218	)
Amortization of unrecognized net loss		219,050			287,413
Amortization of unrecognized transition obligation		-			-
Amortization of unrecognized prior service cost		75,205			72,392
Net periodic pension cost	$	416,572		$	554,204

We also sponsor a 401(k) savings plan for substantially all of our employees. We provide a contribution of 3% of applicable salary to the plan for all employees with greater than six months of service. Additionally, we match eligible employee contributions at a rate of 0.25%, per one percent of applicable salary contributed to the plan by the employee. This matching contribution will be made by us up to a maximum of 1% of the employee’s applicable salary for all qualified employees. Our contributions to the 401(k) plan were approximately $0.9 million in 2012, $1.0 million in 2011 and $1.0 million in 2010.