Employee Benefit Plans

12 Months Ended

Dec. 31, 2013

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

We sponsor various noncontributory defined benefit pension plans covering substantially all full-time employees that began employment prior to June 30, 2008. Benefits earned by employees are generally based upon employee compensation and years of service credits. We also have a non-qualified Supplemental Executive Retirement Plan ("SERP"). Effective June 30, 2009, we froze the accrual of benefits under our defined benefit pension plans and our SERP that cover the majority of our employees.

We sponsor a defined contribution plan covering substantially all non-union and certain union employees. We match a portion of employees' voluntary contributions to this plan. In connection with freezing the accrual of service credits under certain of our defined benefit pension plans, we began contributing additional amounts to certain employees' defined contribution retirement accounts in 2011. These transition credits, which we will make through 2014, are determined based upon the employee’s age and compensation.

Other union-represented employees are covered by defined benefit pension plans jointly sponsored by us and the union, or by union-sponsored multi-employer plans.

We use a December 31 measurement date for our retirement plans. Retirement plans expense is based on valuations as of the beginning of each fiscal year.

The components of the expense consisted of the following:

	For the years ended December 31,
(in thousands)	2013			2012			2011
Service cost	$	79		$	104		$	48
Interest cost	23,732			25,830			25,931
Expected return on plan assets, net of expenses	(21,501		)	(22,520		)	(23,009		)
Amortization of actuarial (gain)/loss	4,192			3,586			2,984
Curtailment/Settlement losses	—			664			8
Total for defined benefit plans	6,502			7,664			5,962
Multi-employer plans	407			467			467
SERP	2,335			956			2,044
Defined contribution plans	11,379			10,538			9,476
Net periodic benefit cost	20,623			19,625			17,949

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) were as follows:

	For the years ended December 31,
(in thousands)	2013		2012			2011
Current year actuarial gain/(loss)	$	52,063	$	(30,761	)	(29,350		)
Amortization of actuarial (gain)/loss	4,192		4,246			2,982
Amortization of prior service cost	—		4			4
Total	$	56,255	$	(26,511	)	$	(26,364	)

In addition to the amounts summarized above, amortization of actuarial losses of $0.4 million, $0.3 million and $1.3 million were recorded through other comprehensive income in 2013, 2012 and 2011, respectively, related to our SERP plan. A current year actuarial loss of $0.7 million, $2.3 million and $1.6 million was recognized in 2013, 2012 and 2011, respectively, related to our SERP plan. In 2013, a settlement charge of $1.1 million was recorded for our SERP plan.

Assumptions used in determining the annual retirement plans expense were as follows:

	2013		2012		2011
Discount rate	4.27	%	5.29	%	5.85	%
Long-term rate of return on plan assets	4.65	%	5.30	%	5.70	%
Increase in compensation levels	3.3	%	3.3	%	3.3	%

The discount rate used to determine our future pension obligations is based on a dedicated bond portfolio approach that includes securities rated Aa or better with maturities matching our expected benefit payments from the plans. The increase in compensation levels assumption is based on actual past experience and our near-term outlook.

The expected long-term rate of return on plan assets is based upon the weighted-average expected rate of return and capital market forecasts for each asset class employed. Our expected rate of return on plan assets also considers our historical compounded return on plan assets for 10- and 15-year periods.

Obligations and Funded Status — The defined benefit pension plan obligations and funded status are actuarially valued as of the end of each year. The following table presents information about our employee benefit plan assets and obligations:

	For the years ended December 31,
	Defined Benefit Plans						SERP
(in thousands)	2013			2012			2013			2012
Accumulated benefit obligation	$	503,500		$	568,679		$	14,593		$	15,607
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	570,219		$	499,843		$	15,920		$	14,337
Service cost	79			104			—			—
Interest cost	23,732			25,830			749			721
Benefits paid	(24,806		)	(19,927		)	(804		)	(1,440		)
Actuarial (gains)/losses	(64,653		)	66,388			662			2,302
Curtailments/Settlements	—			(2,019		)	(1,655		)	—
Projected benefit obligation at end of year	504,571			570,219			14,872			15,920
Plan assets:
Fair value at beginning of year	472,417			435,086			—			—
Actual return on plan assets	8,911			58,147			—			—
Company contributions	69			1,130			2,459			1,440
Benefits paid	(24,806		)	(19,927		)	(804		)	(1,440		)
Curtailments/Settlements	—			(2,019		)	(1,655		)	—
Fair value at end of year	456,591			472,417			—			—
Funded status	$	(47,980	)	$	(97,802	)	$	(14,872	)	$	(15,920	)
Amounts recognized in Consolidated Balance Sheets:
Current liabilities	$	—		$	—		$	(832	)	$	(1,540	)
Noncurrent liabilities	(47,980		)	(97,802		)	(14,040		)	(14,380		)
Total	$	(47,980	)	$	(97,802	)	$	(14,872	)	$	(15,920	)
Amounts recognized in accumulated other comprehensive loss consist of:
Unrecognized net actuarial loss	$	119,091		$	175,347		$	9,343		$	10,145

In 2014, for our defined benefit pension plans, we expect to recognize amortization of actuarial loss from accumulated other comprehensive loss into net periodic benefit costs of $2.9 million (including $0.3 million for the SERP).

Information for pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets was as follows:

	As of December 31,
	Defined Benefit Plans				SERP
(in thousands)	2013		2012		2013		2012
Accumulated benefit obligation	$	503,500	$	568,679	$	14,593	$	15,607
Projected benefit obligation	504,571		570,219		14,872		15,920
Fair value of plan assets	456,591		472,417		—		—

Assumptions used to determine the defined benefit pension plans benefit obligations were as follows:

	2013		2012		2011
Weighted average discount rate	5.08	%	4.27	%	5.29	%
Increase in compensation levels	2.0	%	3.3	%	3.3	%

We expect to contribute $0.8 million in 2014 to fund SERP benefits. We have met the minimum funding requirements for our qualified defined benefit pension plans and expect to make $0.1 million in contributions in 2014.

Estimated future benefit payments expected to be paid from the plans for the next ten years are $21.6 million in 2014, $22.6 million in 2015, $23.6 million in 2016, $25.0 million in 2017, $26.6 million in 2018 and a total of $156.4 million for the five years ending 2023.

Plan Assets and Investment Strategy

Our long-term investment strategy for pension assets is to earn a rate of return over time that minimizes future contributions to the plan while reducing the volatility of pension assets relative to pension liabilities. The strategy reflects the fact that we have frozen the accrual of service credits under defined benefit pension plans covering the majority of employees. We evaluate our asset allocation target ranges for equity, fixed income and other investments annually. We monitor actual asset allocations monthly and adjust as necessary. We control risk through diversification among multiple asset classes, managers and styles. Risk is further monitored at the manager and asset class level by evaluating performance against appropriate benchmarks.

Information related to our pension plan asset allocations by asset category were as follows:

	Target allocation		Percentage of plan assets as of December 31,
	2014		2013		2012
US equity securities	10	%	10	%	11	%
Non-US equity securities	15	%	16	%	14	%
Fixed-income securities	70	%	69	%	69	%
Other	5	%	5	%	6	%
Total	100	%	100	%	100	%

U.S. equity securities include common stocks of large, medium and small capitalization companies, which are predominantly U.S. based. Non-U.S. equity securities include companies domiciled outside of the U.S. and American depository receipts. Fixed-income securities include securities issued or guaranteed by the U.S. government, mortgage backed securities and corporate debt obligations. Other investments include real estate funds.

We have target asset allocations to invest plan assets in securities that match the timing of the payment of plan obligations. As a result, approximately 70% of plan assets are invested in a portfolio of fixed income securities with a duration approximately that of the projected payment of benefit obligations. The remaining 30% of plan assets are invested in equity securities and other return-seeking assets. The expected long-term rate of return on plan assets is based primarily upon the target asset allocation for plan assets and capital markets forecasts for each asset class employed. Our expected rate of return on plan assets also considers our historical compound rate of return on plan assets for 10- and 15 year periods.

The following tables present our plan assets using the fair value hierarchy as of December 31, 2013 and 2012:

	December 31, 2013
(in thousands)	Total		Level 1		Level 2		Level 3
Equity securities
Common/collective trust funds	$	122,851	$	—	$	122,851	$	—
Fixed income
Common/collective trust funds	312,626		—		312,626		—
Real estate fund	19,534		—		—		19,534
Cash equivalents	1,580		1,580		—		—
Fair value of plan assets	$	456,591	$	1,580	$	435,477	$	19,534

	December 31, 2012
(in thousands)	Total		Level 1		Level 2		Level 3
Equity securities
Common/collective trust funds	$	112,157	$	—	$	112,157	$	—
Other	11,783		11,783		—		—
Fixed income
Common/collective trust funds	319,682		—		319,682		—
Other	7,725		7,725		—		—
Real estate fund	17,766		—		—		17,766
Cash equivalents	3,304		3,304		—		—
Fair value of plan assets	$	472,417	$	22,812	$	431,839	$	17,766

Equity securities-common/collective trust funds and fixed income-common/collective trust funds are comprised of shares or units in commingled funds that are not publicly traded. The underlying assets in these funds (equity securities and fixed income securities) are publicly traded on exchanges and price quotes for the assets held by these funds are readily available. Common/collective trust funds are typically valued at their net asset values that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity.

Real estate pertains to an investment in a real estate fund which invests in limited partnerships, limited liability corporations, real estate investment trusts, other funds and insurance company group annuity contracts. The valuations for these holdings are based on property appraisals using cash flow analysis and market transactions.

The following table presents a reconciliation of Level 3 assets held during 2013 and 2012:

(in thousands)	Real Estate Fund
As of December 31, 2011	$	15,818
Unrealized gains/(losses)	1,948
As of December 31, 2012	17,766
Unrealized gains/(losses)	1,768
As of December 31, 2013	$	19,534

Multi-employer plans

We participate in four multi-employer pension plans that cover certain employees that are members of unions or trade associations that have a collective bargaining agreement with us. We represent fewer than 5% of the total contributions made to the four plans and deem only two of the four plans we participate in to be significant. The following table summarizes the two plans we deem significant:

		Pension Protection Act Zone Status			Contributions of the Company
Pension Fund	EIN/Pension Plan Number	2013	2012	FIP/RP Status Pending/Implemented	2013		2012		2011		Surcharge Imposed	Expiration Date of Collective Bargaining Agreement
GCIU	91-6024903	Red	Red	Implemented	$	99,594	$	117,131	$	108,262	Yes	2012
CWA/ITU	13-6212879	Red	Red	Implemented	$	116,295	$	126,205	$	134,441	NA	2012

Certain collective bargaining agreements have expired. We are either working under signed extensions of these agreements or under posted conditions consistent with these agreements, or are in negotiations to renew these agreements in 2014.

The CWA/ITU Negotiated Pension Plan has a withdrawal liability of approximately $4.8 million. Contribution rates are scheduled to remain consistent with current rates for the foreseeable future. A rehabilitation plan was adopted in 2010 related to pension vesting and early retirement, however, mandatory increases in contributions or surcharges were not implemented.

The GCIU-Employer Retirement Fund has a withdrawal liability of approximately $30.7 million. A rehabilitation plan was adopted in 2009, which increased employer contributions beginning in 2013 and will continue through 2014.