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EMPLOYEE BENEFIT PLANS (Tables) - Pension Plan
 12 Months Ended
Dec. 31, 2015
Employee Benefit Plans  
Summary of benefit plans for employees

 

 

 

2015

 

2014

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

Change in benefit obligations:

 

 

 

 

 

Benefit obligations at beginning of year

 

$
109,626

 

$
85,662

 

Service cost

 
2,473

 
2,174

 

Interest cost

 
4,296

 
4,074

 

Actuarial (gain) loss

 
(6,420)

 
19,841

 

Benefits paid

 
(2,499)

 
(2,125)

 

 

 

 

 

 

 

Benefit obligations at end of year

 
107,476

 
109,626

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

Fair value of plan assets at beginning of year

 
69,521

 
67,480

 

Employer contribution

 
3,116

 
2,671

 

Actual return on plan assets

 
(1,693)

 
1,495

 

Benefits paid

 
(2,499)

 
(2,125)

 

 

 

 

 

 

 

Fair value of plan assets at end of year

 
68,445

 
69,521

 

 

 

 

 

 

 

Funded status at the end of year

 

$
(39,031)

 

$
(40,105)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in balance sheet:

 

 

 

 

 

Non-current liability

 

$
(39,031)

 

$
(40,105)

 

 

 

 

 

 

 

 

 

 

 

$
(39,031)

 

$
(40,105)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts recognized in accumulated other comprehensive income consists of:

 

 

 

 

 

Net actuarial loss

 

$
(38,787)

 

$
(41,278)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average assumptions to determine benefit obligations as of December 31,

 

 

 

 

 

Discount rate

 
4.27%

 
3.92%

 

Expected rate of return on plan assets

 
8.00%

 
8.00%

 

 

 

 

 

 

 

Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31,

 

 

 

 

 

Discount rate

 
3.92%

 
4.89%

 

Expected return on plan assets

 
8.00%

 
8.00%

 

 

Schedule of long-term rate of return assumptions

 

As of December 31, 2015

 

Asset allocation
assumption

 

Expected long-
term rate of
return

 

 

 

 

 

 

 

Domestic equity securities

 
70%

 
8.6%

 

Foreign equity securities

 
10%

 
5.3%

 

Fixed income securities/cash

 
20%

 
5.1%

 

 

 

 

 

 

 

 

 
100%

 

 

 

 

 

 

 

 

 

 

Components of net periodic benefit cost

 

 

 

2015

 

2014

 

2013

 

 

 

 

 

(in thousands)

 

 

 

Components of net periodic benefit cost:

 

 

 

 

 

 

 

Service cost

 

$
2,473

 

$
2,174

 

$
2,783

 

Interest cost

 
4,296

 
4,074

 
3,640

 

Expected return on plan assets

 
(5,590)

 
(5,475)

 
(4,446)

 

Amortization of net loss

 
3,354

 
773

 
2,653

 

 

 

 

 

 

 

 

 

Net periodic benefit cost

 

$
4,533

 

$
1,546

 

$
4,630

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of other changes in plan assets and benefit obligation recognized in accumulated other comprehensive income

 

 

 

2015

 

2014

 

 

 

(in thousands)

 

Other changes in plan assets and benefit obligation recognized in accumulated other comprehensive income:

 

 

 

 

 

Net actuarial loss

 

$
(863)

 

$
(23,821)

 

Reversal of amortization item:

 

 

 

 

 

Net actuarial loss

 
3,354

 
773

 

 

 

 

 

 

 

Total recognized in accumulated other comprehensive income (loss)

 
2,491

 
(23,048)

 

Net periodic benefit cost

 
(4,533)

 
(1,546)

 

 

 

 

 

 

 

Total recognized in net periodic benefit cost and accumulated other comprehensive loss

 

$
(2,042)

 

$
(24,594)

 

 

 

 

 

 

 

 

 

 

Schedule of estimated future benefit payments

 

Year Ending

 

 

 

December 31,

 

(in thousands)

 

 

 

 

 

2016

 

$
2,972

 

2017

 
3,340

 

2018

 
3,766

 

2019

 
4,193

 

2020

 
4,653

 

2021-2025

 
29,193

 

 

 

 

 

 

 

$
48,117

 

 

 

 

 

 

 

Schedule of asset allocation guidelines, actual asset allocations and fair value of Pension Plan assets

 

 

 

Percentage of Total Portfolio

 

 

Minimum

 

Target

 

Maximum

 

 

 

 

 

 

 

Domestic equity securities

 
50%

 
70%

 
90%

Foreign equity securities

 
0%

 
10%

 
20%

Fixed income securities/cash

 
5%

 
20%

 
40%

 

 

 

 

 

 

 

 

Asset allocations as of December 31,

 

2015

 

2014

 

 

 

 

 

 

 

Domestic equity securities

 
70%

 
71%

 

Foreign equity securities

 
10%

 
8%

 

Fixed income securities/cash

 
20%

 
21%

 

 

 
100%

 
100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

December 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1 (a)

 

Level 2 (a)

 

Level 3 (a)

 

Level 1 (a)

 

Level 2 (a)

 

Level 3 (a)

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$
883

 

$

-

 

$

-

 

$
917

 

$

-

 

$

-

 

Equity securities (b):

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. large-cap growth

 
17,977

 

-

 

-

 
19,147

 

-

 

-

 

U.S. large-cap value

 
17,635

 

-

 

-

 
19,196

 

-

 

-

 

U.S. small/mid-cap blend

 
7,609

 

-

 

-

 
8,681

 

-

 

-

 

International large-cap core

 
3,257

 

-

 

-

 
2,934

 

-

 

-

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury securities (c)

 
1,234

 

-

 

-

 
1,455

 

-

 

-

 

Corporate bonds (d)

 

-

 
1,938

 

-

 

-

 
1,802

 

-

 

Preferred stock

 

-

 

-

 

-

 

-

 
61

 

-

 

Taxable municipal bonds (d)

 

-

 
182

 

-

 

-

 
193

 

-

 

International bonds (d)

 

-

 
319

 

-

 

-

 
227

 

-

 

Equity mutual funds (e):

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. mid-cap growth

 

-

 
4,948

 

-

 

-

 
2,537

 

-

 

International

 

-

 
3,322

 

-

 

-

 
2,856

 

-

 

Fixed income mutual funds (e):

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate bond

 

-

 
4,668

 

-

 

-

 
4,729

 

-

 

Mortgage backed-securities

 

-

 
1,277

 

-

 

-

 
1,226

 

-

 

Short term investment grade bond

 

-

 
1,322

 

-

 

-

 
1,417

 

-

 

Intermediate investment grade bond

 

-

 
801

 

-

 

-

 
1,013

 

-

 

High yield bond

 

-

 
693

 

-

 

-

 
689

 

-

 

International bond

 

-

 
226

 

-

 

-

 
296

 

-

 

Stock market index options (f):

 

 

 

 

 

 

 

 

 

 

 

 

 

Puts

 
143

 

-

 

-

 
111

 

-

 

-

 

Calls

 
(54)

 

-

 

-

 
(40)

 

-

 

-

 

Accrued income (g)

 

-

 
65

 

-

 

-

 
74

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
48,684

 

$
19,761

 

$

-

 

$
52,401

 

$
17,120

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

See Note 2 – Summary of Significant Accounting Policies – Fair Value Measurements for more information regarding the definitions of fair value hierarchy levels.

(b)

Equity securities include investments in publicly traded common stock and preferred stock.  Publicly-traded common stocks are traded on a national securities exchange and investments in common and preferred stocks are valued using quoted market prices multiplied by the number of shares owned.

(c)

U.S. Treasury securities include agency and treasury debt.  These investments are valued using dealer quotes in an active market.

(d)

Bonds are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer spreads, and/or other applicable reference data. The corporate bonds and notes category is primarily comprised of U.S. dollar denominated, investment grade securities. Less than 5 percent of the securities have a rating below investment grade.

(e)

Mutual funds are valued daily in actively traded markets by an independent custodian for the investment manager.  For purposes of calculating the value, portfolio securities and other assets for which market quotes are readily available are valued at market value.  Market value is generally determined on a basis of last reported sales prices, or if no sales are reported, based on quotes obtained from a quotation reporting system, established market makers, or pricing services.  Investments initially valued in currencies other than the U.S. dollars are converted to the U.S. dollar using exchange rates obtained from pricing services.

(f)

Options are valued utilizing quotes in active markets.

(g)

Accrued income represents dividends declared, but not received, on equity securities owned at December 31, 2015 and 2014.