Defined Benefit Pension and Other Post Retirement Plans

9 Months Ended

Sep. 30, 2011

Defined Benefit Pension and Other Post Retirement Plans [Abstract]

Defined Benefit Pension and Other Post Retirement Plans

(7) In February 2008, the Company spun-off its newspaper businesses and related assets to a separate company, A. H. Belo. Subsequent to the spin-off, Belo retained sponsorship of The G. B. Dealey Retirement Pension Plan (Pension Plan). As the sole plan sponsor for the Pension Plan, Belo continued to administer benefits for Belo and A. H. Belo current and former employees. In October 2010, Belo and A. H. Belo agreed to split the Pension Plan into separately-sponsored pension plans effective January 1, 2011. Under the agreement, participant benefit liabilities and assets allocable to approximately 5,100 current and former employees of A. H. Belo and its related newspaper businesses were transferred to two new defined benefit pension plans created, sponsored, and managed by or on behalf of A. H. Belo. Effective January 1, 2011, the new A. H. Belo plans were solely responsible for paying participant benefits for the current and former employees of A. H. Belo, and the Company is no longer responsible for those liabilities. The participant benefit liabilities and assets pertaining to current and former employees of Belo, and its related television businesses, continue to be held by the Pension Plan sponsored and managed by or on behalf of Belo. As of September 30, 2011, the remaining unfunded liability pertaining to Belo’s current and former employees was $69,411.

For Belo, the January 1, 2011, pension split transaction was treated as a settlement under ASC 715. Under settlement accounting for pensions, the split of the Company’s Pension Plan results in the transfer of $238,833 in Pension Plan assets and $339,799 in Pension Plan liabilities to the new plans sponsored by A. H. Belo. This resulted in a reduction in the net unfunded liability of $100,966, which was recorded as a non-cash settlement gain, and recognition of actuarial losses of $129,665 previously recognized in accumulated other comprehensive loss, which was recorded as a non-cash settlement charge. This settlement gain and charge resulted in a net non-cash settlement charge of $28,699. This charge was partially offset by a final net pension contribution reimbursement of $8,233 received from A. H. Belo as discussed below. The combined result of all pension split transactions was a net charge before taxes of $20,466. Additionally, the Company’s 2011 effective tax rate reflects the effect of deferred tax adjustments of $7,143 in pension settlement items.

Belo’s funding policy is to contribute annually to the Pension Plan amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws, but not in excess of the maximum tax-deductible contribution. For the nine months ended September 30, 2011, the Company made contributions totaling $23,257 to the Pension Plan related to the 2010 and 2011 plan years and A. H. Belo reimbursed the Company $8,233 related to contributions for the 2010 plan year. A. H. Belo has no further obligation to reimburse the Company for any contributions after the 2010 plan year. During the fourth quarter of 2011, the Company expects to make contributions of approximately $3,900 to the Pension Plan for the 2011 plan year. These expected contributions are for the benefit of Belo’s current and former employees. No plan assets are expected to be returned to the Company during the year ending December 31, 2011. For the three and nine months ended September 30, 2010, the Company made contributions totaling $500 and $14,287, respectively, to the Pension Plan related to the 2010 plan year and A. H. Belo reimbursed the Company $300 and $8,572, respectively.

Net periodic pension cost includes the following components for the three and nine months ended September 30, 2011, subsequent to the Pension Plan split, and for the three and nine months ended September 30, 2010, prior to the Pension Plan split when the Company was the sole plan sponsor:

	Three months ended						Nine months ended
	September 30,						September 30,
	2011			2010			2011			2010
Interest cost on projected benefit obligation	$	3,414		$	8,251		$	10,244		$	24,577
Expected return on assets		(3,018	)		(8,063	)		(9,055	)		(23,953	)
Amortization of net loss		679			1,186			2,039			3,384
Net periodic pension cost before settlement charge		1,075			1,374			3,228			4,008
Settlement charge		—			—			28,699			—
Net periodic pension cost	$	1,075		$	1,374		$	31,927		$	4,008