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Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2011
Retirement Benefits [Abstract]  
Changes benefit obligation and plan assets
Obligations and Funded Status
At December 31
 
Pension Benefits
  
Other Benefits
 
(Thousands of dollars)
 
2011
  
2010
  
2011
  
2010
 
              
Changes in benefit obligation
            
              
Benefit obligation at beginning of year
 $227,259  $208,747  $6,961  $8,486 
                  
Service cost
  6,881   5,655   129   92 
Interest cost
  11,842   11,584   347   350 
Plan participants' contributions
  -   -   646   770 
Actuarial loss (gain)
  48,250   11,116   673   (1,325)
Benefits paid
  (10,333)  (9,767)  (862)  (1,412)
Other
  (33)  (76)        
                  
Benefit obligation at end of year
  283,866   227,259   7,894   6,961 
                  
Change in plan assets
                
                  
                  
Fair value of plan assets at beginning of year
  205,054   192,630   -   - 
Actual return on plan assets
  (4,595)  21,896   -   - 
Employer contributions
  441   339   216   642 
Plan participants' contributions
  -   -   646   770 
Benefits paid
  (10,333)  (9,767)  (862)  (1,412)
Other
  (20)  (44)  -   - 
                  
Fair value of plan assets at end of year
  190,547   205,054   -   - 
                  
Unfunded status at end of year
 $(93,319) $(22,205) $(7,894) $(6,961)
 
Amounts recognized in the balance sheet consist of:

   
Pension Benefits
  
Other Benefits
 
(Thousands of dollars)
 
2011
  
2010
  
2011
  
2010
 
              
Other current accrued liabilities
 $(383) $(354) $(379) $(508)
Postretirement benefits
  -   -   (7,515)  (6,453)
Other long-term liabilities
  (92,936)  (21,851)  -   - 
   $(93,319) $(22,205) $(7,894) $(6,961)
 
Amounts recognized in accumulated other comprehensive income consist of:

   
Pension Benefits
  
Other Benefits
 
(Thousands of dollars)
 
2011
  
2010
  
2011
  
2010
 
              
Prior service cost
 $3,247  $3,872  $245  $284 
Net loss (gain)
  78,238   39,500   (1,320)  (1,933)
   $81,485  $43,372  $(1,075) $(1,649)

The accumulated benefit obligation for all defined benefit pension plans was $268.3 million and $211.7 million at December 31, 2011, and 2010, respectively.
Amounts recognized in balance sheet
Amounts recognized in the balance sheet consist of:

 
Pension Benefits
 
 
Other Benefits
 
(Thousands of dollars)
 
2011
 
 
2010
 
 
2011
 
 
2010
 
 
 
 
 
 
 
 
 
 
 
 
 
Other current accrued liabilities
 
$
(383
)
 
$
(354
)
 
$
(379
)
 
$
(508
)
Postretirement benefits
 
 
-
 
 
 
-
 
 
 
(7,515
)
 
 
(6,453
)
Other long-term liabilities
 
 
(92,936
)
 
 
(21,851
)
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
(93,319
)
 
$
(22,205
)
 
$
(7,894
)
 
$
(6,961
)
Amounts recognized in accumulated other comprehensive income
Amounts recognized in accumulated other comprehensive income consist of:

 
Pension Benefits
 
 
Other Benefits
 
(Thousands of dollars)
 
2011
 
 
2010
 
 
2011
 
 
2010
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service cost
 
$
3,247
 
 
$
3,872
 
 
$
245
 
 
$
284
 
Net loss (gain)
 
 
78,238
 
 
 
39,500
 
 
 
(1,320
)
 
 
(1,933
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
81,485
 
 
$
43,372
 
 
$
(1,075
)
 
$
(1,649
)
Components of net periodic benefit cost
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income

 
Pension Benefits
 
 
Other Benefits
 
(Thousands of dollars)
 
2011
 
 
2010
 
 
2009
 
 
2011
 
 
2010
 
 
2009
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
6,881
 
 
$
5,654
 
 
$
4,769
 
 
$
129
 
 
$
92
 
 
$
145
 
Interest cost
 
 
11,842
 
 
 
11,585
 
 
 
11,970
 
 
 
346
 
 
 
350
 
 
 
503
 
Expected return on plan assets
 
 
(13,564
)
 
 
(12,752
)
 
 
(12,285
)
 
 
-
 
 
 
-
 
 
 
-
 
Amortization of prior service cost
 
 
946
 
 
 
785
 
 
 
795
 
 
 
51
 
 
 
51
 
 
 
54
 
Amortization of net (gain) loss
 
 
3,917
 
 
 
3,712
 
 
 
4,566
 
 
 
(223
)
 
 
(291
)
 
 
(217
)
Curtailment
 
 
-
 
 
 
-
 
 
 
1,542
 
 
 
-
 
 
 
-
 
 
 
(145
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net periodic benefit cost (income)
 
$
10,022
 
 
$
8,984
 
 
$
11,357
 
 
$
303
 
 
$
202
 
 
$
340
 
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost
Assumptions

Weighted-average assumptions used to determine benefit obligations at December 31

 
Pension Benefits
 
 
Other Benefits
 
 
2011
 
 
2010
 
 
2011
 
 
2010
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
4.09% - 4.19%
 
 
5.19% - 5.26%
 
 
4.05
%
 
 
4.97
%
Rate of compensation increase
 
 
4.90
%
 
 
5.12% - 5.21%
 
 
N/A
 
 
 
N/A
 
 
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31

 
Pension Benefits
 
 
Other Benefits
 
 
2011
 
 
2010
 
 
2009
 
 
2011
 
 
2010
 
 
2009
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
 
5.19% - 5.26%
 
 
5.26% - 5.80%
 
 
6.00% - 6.40%
 
 
4.97
%
 
 
5.58
%
 
 
6.25
%
Expected long-term return on plan assets
 
 
6.80
%
 
 
6.80
%
 
 
7.30
%
 
 
N/A
 
 
 
N/A
 
 
 
N/A
 
Rate of compensation increase
 
 
4.90
%
 
 
5.12
%
 
 
4.50
%
 
 
N/A
 
 
 
N/A
 
 
 
N/A
 
Fair value measurement of plan assets
The Company's qualified pension plan assets at December 31, 2011 are as follows:

Fair Value Measurements at December 31, 2011 (in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Asset Category
 
Total
 
 
Quoted Prices in
Active markets for
Identical Assets
(Level 1)
 
 
Significant
Observable
Inputs
(Level 2)
 
 
Significant
Unobservable
Inputs
(Level 3)
 
Cash
 
$
3,661
 
 
$
3,661
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
 
49,234
 
 
 
49,234
 
 
 
 
 
 
 
International stock - commingled funds (a)
 
 
28,391
 
 
 
 
 
 
$
28,391
 
 
 
 
International stock - mutual fund
 
 
8,465
 
 
 
8,465
 
 
 
 
 
 
 
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasuries
 
 
14,055
 
 
 
14,055
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
 
6,953
 
 
 
 
 
 
 
6,953
 
 
 
 
Collateralized mortgage obligations
 
 
2,156
 
 
 
 
 
 
 
 
 
2156
 
Corporate bonds (b)
 
 
20,698
 
 
 
 
 
 
 
20,698
 
 
 
 
Other types of investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity long/short hedge funds (c)
 
 
35,288
 
 
 
 
 
 
 
 
 
 
$
35,288
 
Insurance policy (d)
 
 
645
 
 
 
 
 
 
 
 
 
 
 
645
 
Real Estate (e)
 
 
21,001
 
 
 
 
 
 
 
 
 
 
 
21,001
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
190,547
 
 
$
75,415
 
 
$
56,042
 
 
$
59,090
 

 
(a)
This category represents International Equity Commingled Funds which invests in international stocks. The benchmark is the MSCI EAFE Index.
 
(b)
This category represents investment grade bonds of U.S. issuers from diverse industries.
 
(c)
This category includes hedge funds that invest both long and short in primarily U.S. common stocks. Management of the hedge funds has the ability to shift investments from value to growth strategies, from small to large capitalization stocks, and from a net long position to a net short position; however it is expected that the equity long/short hedge funds will have a net long position.
 
(d)
This category includes a private insurance policy used for French retirement benefits.
 
(e)
This category includes a RREEF America II Fund and Black Rock Granite Properties which consists of commingled private real estate.
Fair value measurements of plan assets using significant unobservable inputs (Level 3)
 
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity Long/Short
Hedge Funds
 
 
Real Estate
 
 
Insurance
Contracts
Collateralized Morgage Obligations
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance at December 31, 2010
 
$
36,305
 
 
$
13,663
 
 
$
643
 
 
$
50,611
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Actual return on plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Relating to assets still held at the reporting date
 
 
(1,017
)
 
 
1,338
 
 
 
 
 
 
 
(321
)
Relating to assets sold during the period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-
 
Purchases, sales, and settlements
 
 
 
 
 
 
6,000
 
 
 
 
 
 
 
6,000
 
Other
 
 
 
 
 
 
 
 
 
 
2
2,156
 
 
2,158
 
Transfers in and/or out of Level 3
 
 
 
 
 
 
 
 
 
 
 
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance at December 31, 2011
 
$
35,288
 
 
$
21,001
 
 
$
645
2,156
 
$
59,090
 
 
 
The Company invests in a diversified portfolio consisting of an array of assets classes that attempts to maximize returns while minimizing volatility. These asset classes include U.S. domestic equities, developed market equities, international equities, fixed income, real estate and hedged investments. Fixed income securities include medium-term government notes, corporate bonds and highly-rated mortgage-backed securities and collateralized mortgage obligations. Real estate primarily includes REIT investments focused on U.S. commercial warehouses. Hedged investments are primarily concentrated in funds focused on long/short investment strategies.
 
Estimated future benefit payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the fiscal years ending:

 
Pension
 
 
Other
 
(Thousands of dollars)
 
Benefits
 
 
Benefits
 
 
 
 
 
 
 
2012
 
$
11,862
 
 
$
457
 
2013
 
 
12,504
 
 
 
477
 
2014
 
 
13,338
 
 
 
490
 
2015
 
 
14,174
 
 
 
506
 
2016
 
 
14,990
 
 
 
519
 
2017 - 2021
 
 
86,672
 
 
 
2,649
 
Components of comprehensive income
The following table illustrates the related tax effect allocated to each component of other comprehensive income:

Statement of Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
Pre-Tax
 
 
Tax (Expense)/
 
 
Net
 
(Thousands of dollars)
 
Amount
 
 
Benefit
 
 
Amount
 
Year ended December 31, 2009
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
$
3,525
 
 
$
-
 
 
$
3,525
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit pension plans:
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of net prior service cost
 
 
795
 
 
 
(293
)
 
 
502
 
Amortization of net loss
 
 
4,566
 
 
 
(1,682
)
 
 
2,884
 
Net loss arising during period
 
 
(1,717
)
 
 
632
 
 
 
(1,085
)
Other
 
 
2,678
 
 
 
(986
)
 
 
1,692
 
Total defined benefit pension plans
 
 
6,322
 
 
 
(2,329
)
 
 
3,993
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit postretirement plans:
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of net prior service cost
 
 
54
 
 
 
(20
)
 
 
34
 
Amortization of net gain
 
 
(217
)
 
 
80
 
 
 
(137
)
Net loss arising during period
 
 
(471
)
 
 
174
 
 
 
(297
)
Net prior service cost
 
 
(640
)
 
 
235
 
 
 
(405
)
Other
 
 
96
 
 
 
(35
)
 
 
61
 
Total defined benefit postretirement plans
 
 
(1,178
)
 
 
434
 
 
 
(744
)
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income
 
$
8,669
 
 
$
(1,895
)
 
$
6,774
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2010
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
$
(960
)
 
$
-
 
 
$
(960
)
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit pension plans:
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of net prior service cost
 
 
785
 
 
 
(290
)
 
 
495
 
Amortization of net loss
 
 
3,712
 
 
 
(1,371
)
 
 
2,341
 
Net loss arising during period
 
 
(2,030
)
 
 
750
 
 
 
(1,280
)
Total defined benefit pension plans
 
 
2,467
 
 
 
(911
)
 
 
1,556
 
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit postretirement plans:
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of net prior service cost
 
 
51
 
 
 
(19
)
 
 
32
 
Amortization of net gain
 
 
(291
)
 
 
108
 
 
 
(183
)
Net loss arising during period
 
 
1,325
 
 
 
(490
)
 
 
835
 
Total defined benefit postretirement plans
 
 
1,085
 
 
 
(401
)
 
 
684
 
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income
 
$
2,592
 
 
$
(1,312
)
 
$
1,280
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
$
(3,316
)
 
$
-
 
 
$
(3,316
)
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit pension plans:
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of net prior service cost
 
 
946
 
 
 
(350
)
 
 
596
 
Amortization of net loss
 
 
3,917
 
 
 
(1,449
)
 
 
2,468
 
Net loss arising during period
 
 
(65,879
)
 
 
24,374
 
 
 
(41,505
)
Total defined benefit pension plans
 
 
(61,016
)
 
 
22,575
 
 
 
(38,441
)
 
 
 
 
 
 
 
 
 
 
 
 
Defined benefit postretirement plans:
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of net prior service cost
 
 
51
 
 
 
(19
)
 
 
32
 
Amortization of net gain
 
 
(223
)
 
 
83
 
 
 
(140
)
Net loss arising during period
 
 
(673
)
 
 
248
 
 
 
(425
)
Total defined benefit postretirement plans
 
 
(845
)
 
 
312
 
 
 
(533
)
 
 
 
 
 
 
 
 
 
 
 
 
Other comprehensive income
 
$
(65,177
)
 
$
22,887
 
 
$
(42,290
)
Accumulated other comprehensive income (loss)
The following table illustrates the balances of accumulated other comprehensive income:

 
 
 
 
Defined
 
 
Defined
 
 
Accumulated
 
 
Foreign
 
 
Benefit
 
 
Benefit
 
 
Other
 
 
Currency
 
 
Pension
 
 
Postretirement
 
 
Comprehensive
 
(Thousands of dollars)
 
Translation
 
 
Plans
 
 
Plans
 
 
Loss
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, Dec. 31, 2009
 
$
6,037
 
 
$
(44,928
)
 
$
965
 
 
$
(37,926
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current-period change
 
 
(960
)
 
 
1,556
 
 
 
684
 
 
 
1,280
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, Dec. 31, 2010
 
 
5,077
 
 
 
(43,372
)
 
 
1,649
 
 
 
(36,646
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current-period change
 
 
(3,316
)
 
 
(38,441
)
 
 
(533
)
 
 
(42,290
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, Dec. 31, 2011
 
$
1,761
 
 
$
(81,813
)
 
$
1,116
 
 
$
(78,936
)