Pension Plan

9 Months Ended

Sep. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note 9 – Pension Plan

As of December 31, 2003, the benefit service under the pension plan had been frozen and, accordingly, there is no service cost.  As of April 30, 2009, the compensation increments had been frozen and, accordingly, no additional benefits are being accrued under the plan.

The following table presents the components of net periodic pension cost:

		Three months ended September 30,				Nine months ended September 30,
In thousands		2013		2012		2013		2012
Interest cost	$	111	$	130	$	371	$	390
Expected return on plan assets		(154)		(109)		(374)		(329)
Amortization of net actuarial loss		151		121		393		363
Net periodic pension cost	$	108	$	142	$	390	$	424

As of September 30, 2013, the Company recorded a current pension liability of $1.4 million, which is included in Accrued liabilities in the Condensed Consolidated Balance Sheets, and a long-term pension liability of $4.9 million, which is included in Deferred pension liability and other in the Condensed Consolidated Balance Sheets.  The minimum required contribution for 2013 is expected to be $1.4 million.

The pension plan asset information included below is presented at fair value.  ASC 820 establishes a framework for measuring fair value and required disclosures about assets and liabilities measured at fair value. The fair values of these assets are determined using a three-tier fair value hierarchy.  Based on this hierarchy, the Company determined the fair value of its mutual stock funds using quoted market prices, a Level 1 or an observable input, and the guaranteed investment contracts and equity and index funds, a Level 2 based on observable inputs and quoted prices in markets that are not active.  The Company does not have any Level 3 pension assets, in which such valuation would be based on unobservable measurements and management’s estimates.

The following table presents the pension plan assets by level within the fair value hierarchy as of September 30, 2013:

In thousands		Level 1		Level 2		Level 3		Total
Guaranteed investment contracts	$	-	$	2,156	$	-	$	2,156
Mutual stock funds		1,241		-		-		1,241
Equity and index funds		-		3,348		-		3,348
Total pension plan assets	$	1,241	$	5,504	$	-	$	6,745

In March 2010, 2011 and 2013, the Company submitted to the Internal Revenue Service requests for waivers of the minimum funding standards for its defined benefit plan for the 2009, 2010 and 2012 plan years.  The waiver requests were submitted as a result of the economic climate and the business hardship that the Company experienced.  The waivers for the 2009 and 2010 plan years have been approved and granted subject to certain conditions, and have deferred payment of $285,000 and $559,000 of the minimum funding standard for the 2009 and 2010 plan years, respectively.  The March 2013 waiver request would defer $871,000 of the minimum funding standard for the 2012 plan year.  This waiver has been approved, but has not yet been granted.  If this waiver is not granted, the Pension Benefit Guaranty Corporation and the Internal Revenue Service have various enforcement remedies that can be implemented to protect the participant’s benefits, such as termination of the plan or a requirement that the Company make the unpaid contributions.  In 2012, the Company made $559,000 of contributions to the plan.  In 2013, the Company made the minimum required contributions to the plan of $669,000.  At this time, the Company is expecting to make its required contributions for the 2013 plan year and as of September 30, 2013 has already made $436,000 of contributions for the 2013 plan year.  Subsequent to September 30, 2013, the Company has made its regularly scheduled quarterly contributions totaling $436,000 to the Company’s pension plan, which was paid in increments of $218,000 each on October 15, 2013 and January 15, 2014.  As of September 30, 2013, the Pension Benefit Guaranty Corporation has placed a lien on the Company’s assets in respect of amounts owed under the plan.