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Pension, Postretirement and Postemployment Benefits (Tables)
12 Months Ended
Dec. 31, 2012
Pension, Postretirement and Postemployment Benefits  
Pool pension plan

 

 

 

 

Pension Benefits

 

 

 

2012

 

2011

 

 

 

(In thousands)

 

Change in benefit obligation:

 

 

 

 

 

Benefit obligation at beginning of year

 

$

26,659

 

$

20,628

 

Remeasurement

 

 

1,517

 

Interest cost

 

1,116

 

1,198

 

Actuarial loss (gain)

 

2,107

 

3,975

 

Benefit payments

 

(677

)

(659

)

Benefit obligation at end of year (1)

 

$

29,205

 

$

26,659

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

16,352

 

$

15,219

 

Actual (loss) returns on plan assets

 

1,598

 

480

 

Employer contributions

 

1,507

 

1,312

 

Benefit payments

 

(677

)

(659

)

Fair value of plan assets at end of year

 

$

18,780

 

$

16,352

 

 

 

 

 

 

 

Funded status:

 

 

 

 

 

Underfunded status at end of year

 

$

(10,425

)

$

(10,307

)

Amounts recognized in consolidated balance sheets:

 

 

 

 

 

Other long-term liabilities

 

$

(10,425

)

$

(10,307

)

 

 

(1)      As of December 31, 2012 and 2011, the accumulated benefit obligation was the same as the projected benefit obligation.

 

 

 

Year Ended December 31,

 

 

 

2012

 

2011

 

2010

 

 

 

(In thousands)

 

Components of net periodic benefit cost (recognized in our consolidated statements of income):

 

 

 

 

 

 

 

Interest cost

 

$

1,116

 

$

1,198

 

$

1,116

 

Expected return on plan assets

 

(1,086

)

(1,008

)

(909

)

Recognized net actuarial loss

 

1,034

 

628

 

457

 

Net periodic benefit cost

 

$

1,064

 

$

818

 

$

664

 

 

 

 

 

 

 

 

 

Weighted-average assumptions:

 

 

 

 

 

 

 

Weighted-average discount rates

 

3.75

%

4.25

%

5.50

%

Expected long-term rate of return on plan assets

 

6.50

%

6.50

%

6.50

%

Investments within the fair value of Pool Pension Plan

 

 

 

 

Fair Value as of December 31, 2012

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

(In thousands)

 

Assets: (1)

 

 

 

 

 

 

 

 

 

Cash

 

$

 

$

520

 

$

 

$

520

 

Short-term investments:

 

 

 

 

 

 

 

 

 

Available-for-sale equity securities (2)

 

 

10,361

 

 

10,361

 

Available-for-sale debt securities (3)

 

 

7,899

 

 

7,899

 

Total investments

 

 

18,260

 

 

18,260

 

Total

 

$

 

$

18,780

 

$

 

$

18,780

 

 

(1)         Includes investments in collective trust funds that are valued based on the fair value of the underlying investments using quoted prices in active markets or other significant inputs that are deemed observable.

 

(2)         Includes funds that invest primarily in U.S. common stocks and foreign equity securities.

(3)         Includes funds that invest primarily in investment grade debt.

Weighted-average asset allocations of Pool Pension Plan

Our weighted-average asset allocations as of December 31, 2012 and 2011, by asset category are as follows:

 

 

 

Pension Benefits

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Cash

 

3

%

2

%

Equity securities

 

55

%

56

%

Debt securities

 

42

%

42

%

Total

 

100

%

100

%

Benefits paid for five years thereafter

As of December 31, 2012, we expect that benefits to be paid in each of the next five years after 2012 and in the aggregate for the five years thereafter will be as follows:

 

 

 

(In thousands)

 

2013

 

$

939

 

2014

 

1,055

 

2015

 

1,159

 

2016

 

1,237

 

2017

 

1,348

 

2018 - 2022

 

8,081

 

 

 

$

13,819