XML 113 R38.htm IDEA: XBRL DOCUMENT v2.4.0.8
Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2013
Changes in Benefit Obligations and Plan Assets as Well as Funded Status of Retirement Plans
The changes in benefit obligations and plan assets as well as the funded status of our retirement plans at December 31 were as follows:
 
Pension Benefits
 
Other
Postretirement Benefits
 
2013
 
2012
 
2013
 
2012
 
(Dollars in thousands)
Change in benefit obligation
 
 
 
 
 
 
 
Obligation at beginning of year
$
672,372

 
$
609,738

 
$
49,177

 
$
51,131

Service cost
15,834

 
14,788

 
682

 
830

Interest cost
26,791

 
27,363

 
1,605

 
2,051

Actuarial (gains) losses
(54,746
)
 
49,067

 
(10,352
)
 
(1,299
)
Plan amendments
1,521

 
(1,269
)
 
(1,790
)
 
(504
)
Benefits paid
(29,071
)
 
(28,301
)
 
(3,714
)
 
(3,904
)
Participants’ contributions
—

 
—

 
897

 
872

Foreign currency exchange rate changes
2,542

 
986

 
—

 
—

Obligation at end of year
635,243

 
672,372

 
36,505

 
49,177

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
633,261

 
509,877

 
—

 
—

Actual return on plan assets
85,809

 
74,774

 
—

 
—

Employer contributions
1,064

 
76,911

 
2,817

 
3,032

Participants’ contributions
—

 
—

 
897

 
872

Benefits paid
(29,071
)
 
(28,301
)
 
(3,714
)
 
(3,904
)
Fair value of plan assets at end of year
691,063

 
633,261

 
—

 
—

Funded status
$
55,820

 
$
(39,111
)
 
$
(36,505
)
 
$
(49,177
)
 
 
Pension Benefits
 
Other
Postretirement Benefits
 
2013
 
2012
 
2013
 
2012
 
(Dollars in thousands)
Amounts recognized in the consolidated
balance sheets
 
 
 
 
 
 
 
Non-current assets
$
116,888

 
$
25,548

 
$
—

 
$
—

Current liabilities
(1,241
)
 
(1,061
)
 
(3,291
)
 
(3,941
)
Non-current liabilities
(59,827
)
 
(63,598
)
 
(33,214
)
 
(45,236
)
Net amount recognized
$
55,820

 
$
(39,111
)
 
$
(36,505
)
 
$
(49,177
)
Amounts recognized in accumulated other
comprehensive loss (income)
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
75,539

 
$
175,763

 
$
(5,124
)
 
$
4,994

Prior service cost (credit)
3,578

 
3,843

 
(14,682
)
 
(15,576
)
Net amount recognized
$
79,117

 
$
179,606

 
$
(19,806
)
 
$
(10,582
)
Items to be Recognized in 2013 as Component of Net Periodic Cost
 
Pension Benefits
 
Other
Postretirement
Benefits
 
(Dollars in thousands)
Items to be recognized in 2014 as a component
of net periodic cost
 
 
 
Net actuarial loss (gain)
$
826

 
$
(330
)
Prior service cost (credit)
1,189

 
(2,854
)
Net periodic cost (credit) to be recorded in 2014
$
2,015

 
$
(3,184
)
Benefits Expected to Be Paid from Pension and Other Postretirement Benefit Plans, Which Reflect Future Years of Services and Medicare Subsidy Expected to Be Received
The benefits expected to be paid from our pension and other postretirement benefit plans, which reflect future years of service and the Medicare subsidy expected to be received, are as follows (dollars in thousands):
 
Pension
Benefits
 
Other
Postretirement
Benefits
2014
$
30,138

 
$
3,291

2015
31,690

 
3,194

2016
33,299

 
2,827

2017
34,969

 
2,838

2018
36,663

 
2,726

2019 — 2023
203,677

 
12,436

 
$
370,436

 
$
27,312
Components of Net Periodic Benefit Cost
The components of the net periodic benefit cost for each of the years ended December 31 were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
 
(Dollars in thousands)
Service cost
$
15,834

 
$
14,788

 
$
13,857

 
$
682

 
$
830

 
$
862

Interest cost
26,791

 
27,363

 
28,519

 
1,605

 
2,051

 
2,441

Expected return on plan assets
(52,480
)
 
(46,967
)
 
(40,817
)
 
—

 
—

 
—

Amortization of prior service cost
(credit)
1,786

 
1,797

 
2,042

 
(2,684
)
 
(2,616
)
 
(2,582
)
Amortization of actuarial losses
(gains)
12,556

 
12,168

 
8,171

 
(234
)
 
12

 
134

Net curtailment gain
—

 
(706
)
 
(449
)
 
—

 
—

 
—

Net periodic benefit cost (credit)
$
4,487

 
$
8,443

 
$
11,323

 
$
(631
)
 
$
277

 
$
855
Effect of a One Percentage Point Change in Assumed Health Care Cost Trend Rates
A one percentage point change in the assumed health care cost trend rates would have the following effects:
 
 
1-Percentage
Point Increase
 
1-Percentage
Point Decrease
 
(Dollars in thousands)
Effect on service and interest cost
$
77

 
$
(68
)
Effect on postretirement benefit obligation
945

 
(851
)
Multiemployer Pension Plans
Further information on these multiemployer plans for the years ended December 31, 2013, 2012 and 2011 is as follows:
Pension Fund
 
EIN/Pension Plan
Number
 
Pension
Protection
Act Zone
Status
 
FIP / RP
Status
Pending /
Implemented
 
Contributions
 
Surcharge
Imposed
2013
 
2012
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
Central States, Southeast & Southwest Areas Pension Fund (1)
 
36-6044243/001
 
Red
 
Red
 
Implemented
 
$
1,752

 
$
1,834

 
$
1,724

 
No
United Food & Commercial
Workers — Local 1 Pension Fund (2)
 
16-6144007/001
 
Red
 
Red
 
Implemented
 
123

 
120

 
107

 
No
All Other
 
 
 
 
 
 
 
 
 
4,287

 
4,444

 
4,196

 
 
Total Contributions
 
 
 
 
 
 
 
 
 
$
6,162

 
$
6,398

 
$
6,027

 
 

______________________
(1) 
The applicable collective bargaining agreements related to this pension fund expire between January 31, 2014 and April 30, 2016.
(2) 
The collective bargaining agreement related to this pension fund expires on December 31, 2014.
Weighted Average Asset Allocation for Pension Plans and Target Allocation
The weighted average asset allocation for our pension plans at December 31, 2013 and 2012 and target allocation for 2013 was as follows:
 
Target
Allocation
 
Actual Allocation
 
2013
 
2012
Equity securities—U.S.
49
%
 
48
%
 
48
%
Equity securities—International
9
%
 
10
%
 
9
%
Debt securities
42
%
 
41
%
 
42
%
Cash and cash equivalents
—

 
1
%
 
1
%
 
100
%
 
100
%
 
100
%
Fair Value of Plan Assets by Asset Category
The fair value of our plan assets by asset category consisted of the following at December 31:
 
2013
 
2012
 
(Dollars in thousands)
Equity securities—U.S.
$
330,506

 
$
302,169

Equity securities—International
69,811

 
62,770

Debt securities
286,422

 
264,158

Cash and cash equivalents
4,324

 
4,164

 
$
691,063

 
$
633,261
Benefit Obligation
  
Weighted Average Actuarial Assumptions
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine the benefit obligations at December 31:
 
2013
 
2012
Discount rate
4.9
%
 
4.1
%
Expected return on plan assets
8.5
%
 
8.5
%
Rate of compensation increase
3.0
%
 
3.1
%
Health care cost trend rate:
 
 
 
Assumed for next year
7.2
%
 
7.2
%
Ultimate rate
4.9
%
 
4.5
%
Year that the ultimate rate is reached
2055

 
2046
Benefit Costs
  
Weighted Average Actuarial Assumptions
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine net periodic benefit cost for the years ended December 31:
 
 
2013
 
2012
 
2011
Discount rate
4.1
%
 
4.6
%
 
5.4
%
Expected return on plan assets
8.5
%
 
8.5
%
 
8.5
%
Rate of compensation increase
3.1
%
 
3.1
%
 
3.2
%
Health care cost trend rate
7.2
%
 
7.8
%
 
8.0
%