Annual report pursuant to Section 13 and 15(d)

Deferred Compensation

v2.4.0.8
Deferred Compensation
 12 Months Ended
Dec. 31, 2013
Deferred Compensation  
Deferred Compensation

11. Deferred Compensation

        The Company has a long-term incentive compensation plan covering certain management employees. Under the terms of the plan, prior to December 31, 2010 participants earned (lost) additional compensation based upon a percentage of the Company's cash flow from operations reduced by capital expenditures under a predetermined formula. In addition, participants' account balances under the plan increased or decreased on an annual basis based upon the Company's cash flow from operations reduced by capital expenditures under a predetermined formula. Amounts credited to participant accounts under the plan were, and continue to be as of December 31, 2013, non-forfeitable unless a participant is terminated for cause or voluntarily terminates his or her employment with the Company. In either of these events, the terminated participant will forfeit any positive amounts allocated to his or her account for the two years preceding the year of termination.

        Compensation earned under the plan is deferred until such time as the participant has an account balance of more than two times his or her base compensation, at which point 20% of the balance is paid to the participant in cash in a lump sum. Participants are paid their vested account balances under the plan upon separation from the Company as follows:

 
   Payment Method

Balance of less than $75,000

   Lump sum

Balance greater than $75,000

   5 equal annual installments

        With respect to account balances paid in installments, participants earn interest each year on the unpaid balance at the one-year U.S. Treasury rate in effect at the beginning of the year. Effective December 31, 2010, the Company froze the long-term incentive plan. The Company will continue to pay its obligations to previously designated recipients in accordance with the plan, but no new compensation will be earned under the plan.

        Activity for the plan is as follows:

 
   December 31  
 
   2013   2012  

Balance at beginning of year

   $ 911   $ 1,067  

Payments to current and former participants

     (155 )   (156 )
           
​ ​ ​ ​ ​ ​ ​ ​

Balance at end of year

     756     911  

Less current portion

     (98 )   (155 )
           
​ ​ ​ ​ ​ ​ ​ ​

Long term balance at end of year

   $ 658   $ 756  
           
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