Hess 2011 Annual Report Download - page 138
Download and view the complete annual report
Please find page 138 of the 2011 Hess annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128 -
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139 -
140 -
141 -
142 -
143 -
144 -
145 -
146 -
147 -
148 -
149
-
150
-
151
-
152
 |
 |
HOVENSA L.L.C.
NOTES TO FINANCIAL STATEMENTS – (Continued)
(Dollars in Thousands)
9. Retirement Plans
The Company has a funded non-contributory, defined benefit pension plan for substantially all of its
employees. The plan provides defined benefits based on years of service and final average salary. At
December 31, 2011, the actuarial assumptions for the determination of the projected benefit obligation reflect the
pending refinery shutdown. The non-contributory defined benefit pension plan will remain in place and meet
future obligations in accordance with terms of the plan, but terminated employees will cease to earn service
toward future benefits.
The following table reconciles the projected benefit obligation and fair value of plan assets and shows the
funded status of the pension plan:
2011 2010
Reconciliation of projected benefit obligation:
Benefit obligation at January 1 ................................... $116,572 $100,703
Service costs ................................................. 9,243 8,964
Interest costs ................................................. 6,373 5,683
Actuarial (gain) loss ........................................... (1,403) 3,057
Benefit payments .............................................. (2,218) (1,835)
Projected benefit obligation at December 31 .......................... 128,567 116,572
Reconciliation of fair value of plan assets:
Fair value of plan assets at January 1 .............................. 72,400 50,971
Actual return on plan assets ..................................... 1,809 7,444
Employer contributions ......................................... 12,760 15,820
Benefit payments .............................................. (2,218) (1,835)
Fair value of plan assets at December 31 ............................. 84,751 72,400
Funded status (plan assets less benefit obligation) ...................... (43,816) (44,172)
Unrecognized net actuarial loss .................................... 36,367 36,049
Net amount recognized ........................................... $ (7,449) $ (8,123)
The accumulated benefit obligation was $124,769 at December 31, 2011 and $93,208 at December 31,
2010.
Components of funded pension expense consist of the following:
2011 2010 2009
Service cost ............................................ $ 9,243 $ 8,964 $ 7,133
Interest cost ............................................ 6,373 5,684 4,493
Expected return on plan assets .............................. (5,427) (4,095) (3,180)
Amortization of unrecognized net actuarial losses .............. 1,896 1,944 2,937
Net periodic benefit cost .................................. $12,085 $12,497 $11,383
112