|
 |
|
Deferred Compensation Plans
The Parent Company and certain of its subsidiaries have deferred
compensation plans for several of their present and former officers
and key employees. These plans provide for retirement, involuntary
termination, and death benefits. The involuntary termination and
retirement benefits are accrued over the period of active employment
from the execution dates of the plans to the normal retirement dates
(age 65) of the employees covered. Deferred compensation expense
applicable to the plans was approximately $227,000, $292,000, and
$324,000 for the years ended December 31, 2000, 1999 and 1998, respectively.
Accruals of approximately $2,096,000 and $2,644,000 related to these
plans are included in deferred compensation in the accompanying
balance sheets at December 31, 2000 and 1999, respectively.
8. Pension Plan and Other Postretirement
Benefits
Pension Plan and Supplemental Executive
Retirement Plan
Substantially all of the Company’s employees participate in
a noncontributory defined benefit pension plan (the “Pension
Plan”). The Pension Plan calls for benefits to be paid to all
eligible employees at retirement based primarily on years of service
with the Company and compensation rates in effect near retirement.
The Pension Plan’s assets consist of shares held in collective
investment funds and group annuity contracts. The Company’s
policy is to fund benefits attributed to employees’ service
to date as well as service expected to be earned in the future.
Contributions to the Pension Plan totaled approximately $5,116,000,
$5,526,000, and $4,784,000 in 2000, 1999 and 1998, respectively.
|
Effective December 31, 1998, the Company adopted SFAS No. 132,
“Employers’ Disclosures About Pensions and Other Postretirement
Benefits.” The provisions of SFAS No. 132 revise employers’
disclosures about pension and other postretirement benefit plans.
SFAS No. 132 does not change the measurement or recognition of these
plans. It standardizes the disclosure requirements for pensions
and other postretirement benefits.
During 1996, the Company adopted a supplemental executive retirement
plan (“SERP”), which provides benefits to participants
based on average compensation. The SERP covers certain executives
of the Company commencing upon retirement. The SERP is unfunded
at December 31, 2000.
Pension expense for the Pension Plan and the SERP includes the
following components for the years ended December 31, 2000, 1999
and 1998 (in thousands):
|
 |
|
2000 |
1999 |
1998 |
 |
| Service cost of benefits
earned |
$ 3,628 |
$ 3,236 |
$ 2,569 |
| Interest cost on projected
|
|
|
|
|
benefit obligation |
4,422 |
3,649 |
3,281 |
| Actual loss (gain)
on plan assets |
844 |
(8,485) |
(5,293) |
| Net amortization and
deferral |
(5,781) |
5,219 |
2,832 |
|
| Net pension expense |
$ 3,113 |
$ 3,619 |
$ 3,389 |
|
|
| The table below represents a reconciliation of the funded
status of the Pension Plan and the SERP to prepaid (accrued)
pension cost as of December 31, 2000 and 1999 (in thousands): |
|
|
|
SERP |
Pension Plan |
|
|
|
|
|
|
|
2000 |
1999 |
2000 |
1999 |
|
| Change in benefit obligation: |
|
|
|
|
|
Projected benefit obligation at end of prior year |
$ 2,814 |
$ 2,320 |
$ 52,354 |
$ 48,558 |
|
|
Service cost |
133 |
123 |
3,495 |
3,113 |
|
|
Interest cost |
236 |
190 |
4,187 |
3,459 |
|
|
Actuarial loss (gain) |
267 |
181 |
2,510 |
(1,738) |
|
|
Plan amendments |
– |
– |
– |
786 |
|
|
Acquisitions |
– |
– |
– |
1,282 |
|
|
Benefits paid |
– |
– |
(3,310) |
(3,106) |
|
|
Projected benefit obligation at end of year |
3,450 |
2,814 |
59,236 |
52,354 |
|
| Change in plan assets: |
|
|
|
|
|
Fair value of plan assets at end of prior year |
– |
– |
55,106 |
43,196 |
|
|
Actual return on plan assets |
– |
– |
(844) |
8,485 |
|
|
Employer contributions |
– |
– |
5,116 |
5,526 |
|
|
Benefits paid |
– |
– |
(3,310) |
(3,106) |
|
|
Acquisitions |
– |
– |
– |
1,005 |
|
|
Fair value of plan assets at end of year |
– |
– |
56,068 |
55,106 |
|
| Funded status of the plans |
(3,450) |
(2,814) |
(3,168) |
2,752 |
| Unrecognized transition obligation |
1,252 |
1,366 |
– |
– |
| Unrecognized prior service cost |
– |
– |
913 |
1,168 |
| Unrecognized net loss |
549 |
307 |
10,026 |
1,338 |
|
| (Accrued) prepaid pension cost before minimum pension |
|
|
|
|
|
liability adjustment |
$ (1,649) |
$ (1,141) |
$ 7,771 |
$ 5,258 |
|
| Other comprehensive income: |
|
|
|
|
|
Increase (decrease) in intangible asset |
$ 55 |
$ 55 |
$ – |
$ (695) |
|
(Increase) decrease in additional minimum pension
liability |
(55) |
(55) |
– |
3,572 |
|
| Other comprehensive income |
$ – |
$ – |
$ – |
$ 2,877 |
|
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35
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