Quarterly report pursuant to Section 13 or 15(d)

Pensions

v3.4.0.3
Pensions
3 Months Ended
Mar. 31, 2016
Pensions [Abstract]  
Pensions

NOTE 12 – PENSIONS



The Company’s U.K. based subsidiary Austin Taylor maintained a  defined benefit pension plan.  The Company does not provide any other post-retirement benefits to its employees.  Components of net periodic benefit of the pension plans for the three months ended March 31, 2016 and 2015 were:





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

Three Months Ended March 31

 



 

 

2016

 

 

2015

 

Service cost

 

$

 -

 

$

2,000 

 

Interest cost

 

 

26,000 

 

 

34,000 

 

Expected return on assets

 

 

(24,000)

 

 

(45,000)

 

Settlement benefit

 

 

(43,000)

 

 

 -

 

Net periodic pension benefit

 

$

(41,000)

 

$

(9,000)

 













The Company settled all its obligations under pension plan in the first quarter of 2016. The Company had contributed $650,000 toward the settlement of the pension into annuities in 2015, which resulted in the recognition of $1,222,000 of pension settlement costs in the income statement in the fourth quarter of 2015.  The Company contributed an additional $68,000 toward the settlement in the first quarter of 2016, which resulted in a benefit of $43,000 recorded within operating expenses.  As a result of the final settlement of all of its pension obligations, in the first quarter of 2016, the Company recorded $4,148,000 in pension liability adjustment gains previously recorded in accumulated other comprehensive income within operating expenses in the consolidated statement of income.