DEFINED BENEFIT PENSION PLAN

3 Months Ended

Mar. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 14. DEFINED BENEFIT PENSION PLAN

The Company maintains a defined benefit pension plan for employees from Zoo Publishing, Inc.’s predecessor, Destination Software, Inc. Effective December 31, 2007, the plan was frozen and benefits ceased to accrue; therefore, only participants’ service and earnings prior to that date were used by the actuary to determine the expected employee benefits. The Company’s funding policy is to satisfy the minimum funding requirements of the Employee Retirement Income Security Act (“ERISA”). The assets of the Company-sponsored plan are invested in mutual funds, cash, money market accounts and certificates of deposits. In accordance with the recognition and disclosure provisions of ASC 715-30 “Defined Benefit Plans – Pension,” the Company recognizes the funded status of the Company’s retirement plan on the condensed consolidated balance sheets.

The following table sets forth the retirement trust’s approximate benefit obligations, fair value of the plans assets, and funded status for the defined benefit pension plan for the three months ended March 31, 2012.

Change in benefit obligation
Benefit obligation at January 1, 2012	$	1,148,107
Service cost		–
Interest cost		14,351
Actuarial gain		–
Disbursements		–
Benefit obligation at March 31, 2012	$	1,162,458
Change in plan assets
Fair value of plan assets at January 1, 2012	$	899,328
Employer contributions		–
Benefit payments		–
Actual return on assets		49,835
Fair value of plan of assets at March 31, 2012	$	949,163
Funded status	$	(213,295	)

The amount unfunded as of December 31, 2011 was approximately $249,000.

Net periodic pension cost for the period January 1, 2012 through March 31, 2012 consists of the following:

Service costs	$	–
Interest costs		14,351
Expected return on assets		(13,495	)
Amortization costs		2,763
Net periodic pension cost	$	3,619

Actuarial assumptions are described below:

Discount rate	5.00	%
Expected long-term rate of return on plan assets	6.00	%
Rate of compensation increase	0.00	%

Amounts recognized in the condensed consolidated balance sheet as of March 31, 2012:

Non-current liabilities

213,295

Amounts recognized in the condensed consolidated balance sheet as of December 31, 2011:

Non-current liabilities

248,779

Amounts recognized in accumulated other comprehensive income for the three months ended March 31, 2012:

Minimum pension liability

39,000

Accrued pension expense as of March 31, 2012

3,619

The following table sets forth, by level, within the fair value hierarchy, the plan’s assets measured at fair value as of March 31, 2012:

	Level 1		Level 2		Level 3		Total
Cash/Money Market/CDs	$	17,068	$	–	$	–	$	17,068
Mutual Funds		932,095		–		–		932,095
Total Investments at Fair Value	$	949,163	$	–	$	–	$	949,163

The following table sets forth, by level, within the fair value hierarchy, the plan’s assets measured at fair value as of December 31, 2011:

	Level 1		Level 2		Level 3		Total
Cash/Money Market/CDs	$	25,924	$	–	$	–	$	25,924
Mutual Funds		873,404		–		–		873,404
Total Investments at Fair Value	$	899,328	$	–	$	–	$	899,328

The estimated net loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the remaining 2012 year is approximately $11,000.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

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+ Details

Zoo Entertainment, Inc 10-Q