EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2012

Disclosures for our Pension Plans and other postretirement benefit plans

The changes in the benefit obligation, the changes in fair value of plan assets, the funded status and the amounts recognized in our consolidated balance sheet for our Pension Plans and other postretirement benefit plans as of and for the years ended December 31, 2012 and 2011 were as follows:



	Pension Plans						Other Postretirement Benefit Plans
	2012			2011			2012			2011
	(Thousands of Dollars)
Change in benefit obligation:
Benefit obligation, January 1	$	78,017		$	50,292		$	18,672		$	15,368
Service cost	15,614			12,484			1,258			1,040
Interest cost	4,012			2,881			976			888
Transfer to joint venture	—			—			(90		)	—
Disposition charges (a)	4,397			—			1,284			—
Plan amendments	(295		)	—			(2,420		)	—
Benefits paid	(1,647		)	(1,217		)	(149		)	(126		)
Participants contributions	—			—			62			69
Actuarial loss	18,359			13,577			2,622			1,433
Curtailment (a)	(4,411		)	—			(1,253		)	—
Benefit obligation, December 31	$	114,046		$	78,017		$	20,962		$	18,672
Change in plan assets:
Plan assets at fair value, January 1	$	53,787		$	46,877		$	—		$	—
Actual return on plan assets	6,063			934			—			—
Company contributions	11,066			7,193			87			57
Benefits paid	(1,647		)	(1,217		)	(149		)	(126		)
Participants contributions	—			—			62			69
Plan assets at fair value, December 31	$	69,269		$	53,787		$	—		$	—
Reconciliation of funded status:
Fair value of plan assets at December 31	$	69,269		$	53,787		$	—		$	—
Less: Benefit obligation at December 31	114,046			78,017			20,962			18,672
Funded status at December 31	$	(44,777	)	$	(24,230	)	$	(20,962	)	$	(18,672	)
Amounts recognized in the consolidated balance sheets:
Accrued compensation expense	$	(137	)	$	(99	)	$	(243	)	$	(162	)
Long-term liabilities	(44,640		)	(24,131		)	(20,719		)	(18,510		)
Net pension liability	$	(44,777	)	$	(24,230	)	$	(20,962	)	$	(18,672	)


(a)	Disposition charges and curtailment in 2012 relate to Asphalt JV. Disposition charges have been reimbursed to us by Asphalt JV, and curtailment impacts our accumulated other comprehensive loss.

The components of net periodic benefit cost



	Pension Plans									Other Postretirement Benefit Plans
	Year Ended December 31,									Year Ended December 31,
	2012			2011			2010			2012		2011		2010
	(Thousands of Dollars)
Components of net periodic benefit cost:
Service cost	$	15,614		$	12,484		$	11,384		$	1,258	$	1,040	$	904
Interest cost	4,012			2,881			2,233			976		888		832
Expected return on plan assets	(3,917		)	(3,617		)	(2,314		)	—		—		—
Amortization of prior service credit	(18		)	(18		)	(18		)	—		—		—
Amortization of net loss	1,393			485			542			139		71		83
Net periodic benefit cost before disposition charges	17,084			12,215			11,827			2,373		1,999		1,819
Disposition charges	4,397			—			—			1,284		—		—
Net periodic benefit cost	$	21,481		$	12,215		$	11,827		$	3,657	$	1,999	$	1,819

Adjustments recognized in other comprehensive (loss) income



	Pension Plans									Other Postretirement Benefit Plans
	Year Ended December 31,									Year Ended December 31,
	2012			2011			2010			2012			2011			2010
	(Thousands of Dollars)
Net unrecognized (loss) gain arising during the year:
Net actuarial (loss) gain	$	(11,800	)	$	(16,260	)	$	366		$	(1,368	)	$	(1,433	)	$	(84	)
Prior service credit	295			—			—			2,420			—			—
Net unrealized (loss) gain arising during the year	(11,505		)	(16,260		)	366			1,052			(1,433		)	(84		)
Net loss reclassified into income:
Amortization of prior service credit	(18		)	(18		)	(18		)	—			—			—
Amortization of net loss	1,393			485			542			139			71			83
Net loss reclassified into income	1,375			467			524			139			71			83

Income tax benefit (expense)	4,269			6,064			(136		)	(390		)	535			31
Total changes in other comprehensive (loss) income	$	(5,861	)	$	(9,729	)	$	754		$	801		$	(827	)	$	30

The amounts recorded as a component of accumulated other comprehensive loss



	Pension Plans									Other Postretirement Benefit Plans
	December 31,									December 31,
	2012			2011			2010			2012			2011			2010
	(Thousands of Dollars)
Unrecognized actuarial loss (a)	$	(36,476	)	$	(26,069	)	$	(10,294	)	$	(5,188	)	$	(3,959	)	$	(2,597	)
Prior service credit (a)	380			103			121			2,420			—			—
Deferred tax asset	14,414			10,145			4,081			1,171			1,561			1,026
Accumulated other comprehensive loss, net of tax	$	(21,682	)	$	(15,821	)	$	(6,092	)	$	(1,597	)	$	(2,398	)	$	(1,571	)


(a)	Represents the balance of accumulated other comprehensive loss that has not been recognized as a component of net periodic benefit cost.

Allocations of plan assets for the Pension Plan



	December 31,
	2012		2011
Equity securities	67	%	65	%
Fixed income securities	31	%	33	%
Cash equivalent securities	2	%	2	%

Schedule of fair value of plan assets



	December 31, 2012
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Asset class:
Cash equivalent securities	$	1,294	$	—	$	—	$	1,294
Equity securities:
U.S. large cap equity fund (a)	—		39,676		—		39,676
International stock index fund (b)	6,652		—		—		6,652
Fixed income securities:
Bond market index fund (c)	21,647		—		—		21,647
Total	$	29,593	$	39,676	$	—	$	69,269



	December 31, 2011
	Level 1		Level 2		Level 3		Total
	(Thousands of Dollars)
Asset class:
Cash equivalent securities	$	1,054	$	—	$	—	$	1,054
Equity securities:
U.S. large cap equity fund (a)	—		29,945		—		29,945
International stock index fund (b)	4,779		—		—		4,779
Fixed income securities:
Bond market index fund (c)	18,009		—		—		18,009
Total	$	23,842	$	29,945	$	—	$	53,787


(a)	This fund is a low-cost equity index fund not actively managed that tracks the S&P 500. Fair values were estimated using pricing models, quoted prices of securities with similar characteristics or discounted cash flows.


(b)	This fund tracks the performance of the Total International Composite Index.


(c)	This fund tracks the performance of the Barclays Capital U.S. Aggregate Bond Index.

Schedule of expected benefit payments



	Pension Plans		Other Postretirement Benefit Plans
	(Thousands of Dollars)
2013	$	3,926	$	243
2014	4,167		398
2015	5,107		597
2016	7,375		824
2017	7,247		993
Years 2018-2022	55,872		7,553

Assumptions used to determine the benefit obligations



	Pension Plans				Other Postretirement Benefit Plans
	December 31,				December 31,
	2012		2011		2012		2011
Discount rate	4.48	%	5.21	%	4.51	%	5.25	%
Rate of compensation increase	3.69	%	4.05	%	n/a		n/a

Assumptions used to determine the net periodic benefit cost



	Pension Plans						Other Postretirement Benefit Plans
	Year Ended December 31,						Year Ended December 31,
	2012		2011		2010		2012		2011		2010
Discount rate	5.21	%	5.82	%	6.16	%	5.25	%	5.80	%	6.14	%
Expected long-term rate of return on plan assets	7.00	%	7.50	%	7.50	%	n/a		n/a		n/a
Rate of compensation increase	4.05	%	4.07	%	4.56	%	n/a		n/a		n/a

Schedule of assumed health care cost trend rates



	December 31,
	2012		2011
Health care cost trend rate assumed for next year	7.64	%	7.38	%
Rate to which the cost trend rate was assumed to decline (the ultimate trend rate)	5.00	%	5.00	%
Year that the rate reached the ultimate trend rate	2020		2018