Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2013

General Discussion of Pension and Other Postretirement Benefits [Abstract]

Schedule of Changes in Projected Benefit Obligations

We use a December 31 measurement date for our benefit plans and obligations.

The change in benefit obligation, change in plan assets and funded status for company-sponsored benefit plans and obligations are as follows:



	PENSION PLANS						OTHER POSTRETIREMENT EMPLOYEE BENEFITS
(Dollars in thousands)	2013			2012			2013			2012
Benefit obligation at beginning of year	$	445,535		$	418,251		$	52,033		$	65,195
Service cost	5,318			5,238			94			284
Interest cost	17,826			19,986			1,810			2,478
Plan amendments	—			510			—			(6,045		)
Actuarial loss (gain)	(41,178		)	38,329			(2,692		)	(4,878		)
Benefits paid	(33,936		)	(36,779		)	(3,902		)	(5,001		)
Benefit obligation at end of year	393,565			445,535			47,343			52,033

Fair value of plan assets at beginning of year	345,633			312,158			—			—
Actual return on plan assets	37,157			46,905			—			—
Employer contributions and benefit payments	1,734			23,349			3,902			5,001
Benefits paid	(33,936		)	(36,779		)	(3,902		)	(5,001		)
Fair value of plan assets at end of year	350,588			345,633			—			—

Amounts recognized in the consolidated balance sheets:
Current liabilities	$	(1,772	)	$	(1,775	)	$	(4,929	)	$	(5,113	)
Noncurrent liabilities	(41,205		)	(98,127		)	(42,414		)	(46,920		)
Funded status	$	(42,977	)	$	(99,902	)	$	(47,343	)	$	(52,033	)

Schedule of Weighted Average Asset Allocations of the Pension Benefit Plans' Assets

The weighted average asset allocations of the pension benefit plans’ assets at December 31 by asset category are as follows:



	PENSION PLANS
ASSET CATEGORY	2013		2012
Domestic equity securities	20	%	22	%
Debt securities	38		36
Global/international equity securities	27		28
Other	15		14
Total	100	%	100	%

Schedule of Allocation of Plan Assets

Fair Value Measurements at December 31, 2013:



(Dollars in thousands)
ASSET CATEGORY	QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)		SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		TOTAL
Cash and equivalents	$	9,673	$	—	$	—	$	9,673
Equity securities:
U.S. large cap¹	32,304		—		—		32,304
U.S. small/mid cap²	19,053		—		—		19,053
International companies	34,773		—		—		34,773
Mutual funds³	185,505		—		—		185,505
Collective investments:
Developed markets⁴	—		17,401		—		17,401
Emerging markets⁵	—		41,300		—		41,300
Hedge funds⁶	—		—		10,579		10,579
Total	$	281,308	$	58,701	$	10,579	$	350,588


¹	These are managed investments in US large cap equities that track the Russell 1000 Value index.


²	These are managed investments in US small/mid cap equities that track the Russell 2500 Growth index.


³	The mutual funds were 50% invested in high-quality intermediate and long-term investment grade securities and 50% invested in a diversified portfolio of fixed-income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements and debt securities.


⁴	These collective investments are invested in equity funds of developed markets outside of the US & Canada, that track the MSCI EAFE index.


⁵	These collective investments are invested in equity funds of emerging markets outside of the US & Canada, that track the MSCI Emerging Markets index.


⁶	The hedge funds are 37% invested in long/short and event-driven equity, 24% invested in long and short credit, 11% in relative value, 10% invested in distressed debt, 6% invested in convertible bond hedging, with the remaining 12% in other investments.

Fair Value Measurements at December 31, 2012:



(Dollars in thousands)
ASSET CATEGORY	QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)			SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2)		SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)		TOTAL
Cash and equivalents	$	2,085		$	—	$	—	$	2,085
Equity securities:
U.S. large cap¹	35,099			—		—		35,099
U.S. small/mid cap²	21,516			—		—		21,516
International companies	9,400			—		—		9,400
Mutual funds³	124,453			—		—		124,453
Collective investments:
U.S. small/mid cap⁴	—			19,803		—		19,803
Developed markets⁵	—			47,916		—		47,916
Emerging markets⁶	—			40,983		—		40,983
Hedge funds⁷	—			—		45,693		45,693
Securities pledged to creditors:
Money market⁸	—			1,499		—		1,499
Mortgage-backed securities⁹	—			1,992		—		1,992
Subtotal	192,553			112,193		45,693		350,439
Payable held under securities lending agreements¹⁰	(4,806		)	—		—		(4,806		)
Total	$	187,747		$	112,193	$	45,693	$	345,633


¹	These are managed investments in US large cap equities that track the Russell 1000 Value index.


²	These are managed investments in US small/mid cap equities that track the Russell 2500 Growth index.


³	The mutual funds were 50% invested in high-quality intermediate and long-term investment grade securities and 50% invested in a diversified portfolio of fixed-income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements and debt securities.


⁴	These are managed investments in US small/mid cap equities that track the Russell 2500 Value index.


⁵	These collective investments are invested in equity funds of developed markets outside of the US & Canada, that track the MSCI EAFE index.


⁶	These collective investments are invested in equity funds of emerging markets outside of the US & Canada, that track the MSCI Emerging Markets index.


⁷	The hedge funds are 53% invested in long/short and event-driven equity, 11% invested in long and short credit, 14% in relative value, 5% invested in fixed income relative value, 4% invested in distressed debt, with the remaining 13% in other investments.


⁸	The money market holdings are invested in the Mount Vernon Securities Lending Trust Prime Portfolio.


⁹	The mortgage-backed securities are maintained in the U.S. Bank Illiquid Securities Liquidating Trust.


¹⁰	This category represents a payable under the securities lending agreements.

Schedule of Summary of Changes in the Fair Value of the Plans' Level 3 Assets

The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the years ended December 31:



	Hedge Funds
(Dollars in thousands)	2013			2012
Balance, beginning of year	$	45,693		$	42,940
Sales and settlements	(34,500		)	—
Unrealized gains (losses) relating to assets still held at the reporting date	(614		)	2,753
Balance, end of year	$	10,579		$	45,693

Schedule of Net Benefit Costs

Pre-tax components of net periodic cost (benefit) recognized in our Consolidated Statements of Income were as follows:



	PENSION PLANS									OTHER POSTRETIREMENT EMPLOYEE BENEFITS
(Dollars in thousands)	2013			2012			2011			2013			2012			2011
Service cost	$	5,318		$	5,238		$	4,456		$	94		$	284		$	446
Interest cost	17,826			19,986			21,325			1,810			2,478			3,486
Expected return on plan assets	(26,092		)	(28,755		)	(31,804		)	—			—			—
Curtailment credit	—			—			—			—			(103		)	—
Amortization of prior service cost (credit)	779			770			684			(9,708		)	(9,343		)	(8,536		)
Amortization of actuarial loss	19,929			15,356			9,916			3,209			3,127			3,967
Net periodic cost (benefit)	$	17,760		$	12,595		$	4,577		$	(4,595	)	$	(3,557	)	$	(637	)

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Other amounts recognized in our Consolidated Statements of Comprehensive Income were as follows:



	PENSION PLANS									OTHER POSTRETIREMENT EMPLOYEE BENEFITS
(Dollars in thousands)	2013			2012			2011			2013			2012			2011
Net amount at beginning of year	$	161,667		$	158,883		$	130,445		$	(20,769	)	$	(18,001	)	$	(16,690	)

Amounts arising during the period:
Net loss (gain)	(52,242		)	20,180			57,220			(2,692		)	(4,878		)	(913		)
Prior service cost (credit)	—			510			—			—			(5,942		)	(5,805		)
Taxes	20,374			(8,069		)	(22,316		)	1,050			4,260			2,620
Net amount arising during the period	(31,868		)	12,621			34,904			(1,642		)	(6,560		)	(4,098		)

Amounts reclassified during the period:
Amortization of prior service (cost) credit	(779		)	(770		)	(684		)	9,708			9,343			8,536
Amortization of actuarial loss	(19,929		)	(15,356		)	(9,916		)	(3,209		)	(3,127		)	(3,967		)
Taxes	8,076			6,289			4,134			(2,535		)	(2,424		)	(1,782		)
Net reclassifications during the period	(12,632		)	(9,837		)	(6,466		)	3,964			3,792			2,787

Net amount at end of year	$	117,167		$	161,667		$	158,883		$	(18,447	)	$	(20,769	)	$	(18,001	)

Schedule of Accumulated Other Comprehensive Income (Loss)

Amounts recognized in accumulated other comprehensive loss on our Consolidated Balance Sheets, net of tax, consist of:



	PENSION PLANS				OTHER POSTRETIREMENT EMPLOYEE BENEFITS
(Dollars in thousands)	2013		2012		2013			2012
Net loss	$	115,404	$	159,429	$	16,490		$	20,090
Prior service cost (credit)	1,763		2,238		(34,937		)	(40,859		)
Net amount recognized	$	117,167	$	161,667	$	(18,447	)	$	(20,769	)

Schedule of Expected Future Benefit Payments

Estimated future benefit payments, which reflect expected future service are as follows for the years indicated:



(Dollars in thousands)	PENSION PLANS		OTHER POSTRETIREMENT EMPLOYEE BENEFITS
2014	$	30,033	$	4,929
2015		29,836		4,835
2016		29,566		4,699
2017		29,287		4,490
2018		29,064		4,248
2019 – 2022		143,152		17,734

Weighted Average Assumptions Used to Determine the Benefit Obligation

The weighted average assumptions used to determine the benefit obligation as of December 31 were:



	PENSION PLANS						OTHER POSTRETIREMENT EMPLOYEE BENEFITS
	2013		2012		2011		2013		2012		2011
Discount rate	5.10	%	4.15	%	4.95	%	4.45	%	3.70	%	4.85	%
Rate of salaried compensation increase	3.00	%	3.50	%	3.50	%	—		—		—

Schedule of Weighted Average Assumptions Used to Determine the Net Periodic Benefit (Cost)

The weighted average assumptions used to determine the net periodic benefit (cost) for the years ended December 31 were:



	PENSION PLANS						OTHER POSTRETIREMENT EMPLOYEE BENEFITS
	2013		2012		2011		2013		2012		2011
Discount rate	4.15	%	4.95	%	5.65	%	3.70	%	4.85	%	5.40	%
Expected return on plan assets	8.00	%	8.00	%	8.50	%	—		—		—
Rate of salaried compensation increase	3.50	%	3.50	%	4.00	%	—		—		—

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

A one percentage point change in the health care cost trend rates would have the following effects on our December 31, 2013 Consolidated Financial Statements:



(Dollars in thousands)	1% INCREASE		1% DECREASE
Effect on total service and interest cost components	$	33	$	(29	)
Effect on accumulated postretirement benefit obligation	519		(475		)