Employee Benefit Plans

6 Months Ended

Jun. 30, 2015

Employee Benefit Plans

Employee Benefit Plans

7.  Employee Benefit Plans

The Company sponsors a defined benefit pension plan, with benefits frozen as of March 1, 2012, and postretirement health and life insurance benefits for union employees.  The Company also sponsors a cash balance pension plan for nonunion employees, with benefits frozen as of April 1, 2007, and certain management employees receive postretirement health and life insurance under grandfathered provisions of a terminated plan.

The following provides the components of benefit costs (income) for the three and six months ended June 30, 2015 and 2014 (dollars in thousands):

Pension

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Interest cost	$	1,984		$	2,208		$	4,057		$	4,416
Expected asset return	(3,366		)	(3,178		)	(6,760		)	(6,356		)
Amortization of loss	39			29			(18		)	58
Net periodic benefit income	(1,343		)	(941		)	(2,721		)	(1,882		)
Settlement loss	1,397			—			2,248			—
Net benefit expense (income)	$	54		$	(941	)	$	(473	)	$	(1,882	)

Other Postretirement Benefits

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Service cost	$	259	$	230	$	518	$	460
Interest cost	589		602		1,178		1,204
Amortization of loss	149		15		299		30
Net periodic benefit cost	$	997	$	847	$	1,995	$	1,694

During the three and six months ended June 30, 2015, the Company’s pension plan for union employees paid lump-sum benefits to plan participants in full settlement of obligations due amounting to $13.7 million and $19.7 million, respectively.  During the six months ended June 30, 2015, the Company’s pension plan for management employees paid lump sum benefits in full settlement amounting to $0.6 million.  The Company’s pension plan for management employees paid such benefits for the first quarter of 2015 only.  This resulted in the recognition of a loss on settlement for both pension plans amounting to $1.4 and $2.2 million for the three and six months ended June 30, 2015, respectively.  Because of the settlements, the Company remeasured its union pension plan obligations and plan assets as of June 30, 2015.  The Company had previously measured both its union and management pension plan obligations and plan assets as of March 31, 2015 in determining its employee benefit obligations as of that date.  The Company used a discount rate of 4.09% as of June 30, 2015 to measure the union pension plan obligation.  The Company used discount rates of 3.54% to 3.57% to measure the plan obligations as of March 31, 2015.  The new measurements resulted in other comprehensive income of $3.9 million and $1.7 million for the three and six months ended June 30, 2015, respectively.

The Company previously disclosed in its consolidated financial statements for the year ended December 31, 2014 that it expected to contribute $10.0 million to its pension plan in 2015.  As of June 30, 2015, the Company has contributed $4.2 million.  The Company presently anticipates contributing the full amount during the remainder of 2015.