XML 51 R37.htm IDEA: XBRL DOCUMENT v3.3.1.900
Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2015
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
 
2015
 
2014
 
2015
 
2014
 
(Dollars in thousands)
Change in benefit obligation
 
 
 
 
 
 
 
Obligation at beginning of year
$
756,170

 
$
635,243

 
$
37,428

 
$
36,505

Service cost
15,562

 
13,529

 
444

 
535

Interest cost
28,066

 
29,757

 
1,281

 
1,661

Actuarial (gains) losses
(73,890
)
 
104,374

 
(5,018
)
 
1,438

Liabilities assumed in acquisition
—

 
11,080

 
—

 
—

Plan amendments
23

 
—

 
(3,730
)
 
(722
)
Benefits paid
(32,316
)
 
(30,079
)
 
(3,243
)
 
(2,893
)
Curtailment gain
(522
)
 
—

 
—

 
—

Participants’ contributions
—

 
—

 
860

 
904

Foreign currency exchange rate changes
(7,798
)
 
(7,734
)
 
—

 
—

Obligation at end of year
685,295

 
756,170

 
28,022

 
37,428

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
754,979

 
691,063

 
—

 
—

Actual return on plan assets
(19,054
)
 
83,120

 
—

 
—

Assets assumed in acquisition
—

 
9,631

 
—

 
—

Employer contributions
1,170

 
1,244

 
2,383

 
1,989

Participants’ contributions
—

 
—

 
860

 
904

Benefits paid
(32,316
)
 
(30,079
)
 
(3,243
)
 
(2,893
)
Fair value of plan assets at end of year
704,779

 
754,979

 
—

 
—

Funded status
$
19,484

 
$
(1,191
)
 
$
(28,022
)
 
$
(37,428
)
 
 
Pension Benefits
 
Other
Postretirement Benefits
 
2015
 
2014
 
2015
 
2014
 
(Dollars in thousands)
Amounts recognized in the consolidated
balance sheets
 
 
 
 
 
 
 
Non-current assets
$
79,548

 
$
76,199

 
$
—

 
$
—

Current liabilities
(1,191
)
 
(1,298
)
 
(2,672
)
 
(3,094
)
Non-current liabilities
(58,873
)
 
(76,092
)
 
(25,350
)
 
(34,334
)
Net amount recognized
$
19,484

 
$
(1,191
)
 
$
(28,022
)
 
$
(37,428
)
Amounts recognized in accumulated other
comprehensive loss (income)
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
151,872

 
$
152,480

 
$
(8,027
)
 
$
(3,357
)
Prior service cost (credit)
1,377

 
2,391

 
(13,207
)
 
(12,534
)
Net amount recognized
$
153,249

 
$
154,871

 
$
(21,234
)
 
$
(15,891
)
Items to be Recognized in 2015 as Component of Net Periodic Cost
 
Pension Benefits
 
Other
Postretirement
Benefits
 
(Dollars in thousands)
Items to be recognized in 2016 as a component
of net periodic cost
 
 
 
Net actuarial loss (gain)
$
8,340

 
$
(561
)
Prior service cost (credit)
608

 
(3,398
)
Net periodic cost (credit) to be recorded in 2016
$
8,948

 
$
(3,959
)
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, are as follows (dollars in thousands):
 
Pension
Benefits
 
Other
Postretirement
Benefits
2016
$
34,507

 
$
2,672

2017
34,750

 
2,393

2018
36,157

 
2,210

2019
37,456

 
2,178

2020
39,091

 
2,081

2021-2025
213,615

 
9,627

 
$
395,576

 
$
21,161
Components of Net Periodic Benefit Cost
The components of the net periodic benefit (credit) cost for each of the years ended December 31 were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
 
2015
 
2014
 
2013
 
2015
 
2014
 
2013
 
(Dollars in thousands)
Service cost
$
15,562

 
$
13,529

 
$
15,834

 
$
444

 
$
535

 
$
682

Interest cost
28,066

 
29,757

 
26,791

 
1,281

 
1,661

 
1,605

Expected return on plan assets
(62,726
)
 
(57,550
)
 
(52,480
)
 
—

 
—

 
—

Amortization of prior service cost
(credit)
1,037

 
1,187

 
1,786

 
(3,057
)
 
(2,871
)
 
(2,684
)
Amortization of actuarial losses
(gains)
5,556

 
774

 
12,556

 
(348
)
 
(328
)
 
(234
)
Net curtailment gain
(522
)
 
—

 
—

 
—

 
—

 
—

Net periodic benefit (credit) cost
$
(13,027
)
 
$
(12,303
)
 
$
4,487

 
$
(1,680
)
 
$
(1,003
)
 
$
(631
)
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 not have a significant impact on our service cost, interest cost or postretirement benefit obligation.
Multiemployer Pension Plans
Further information on these multiemployer plans for the years ended December 31, 2015, 2014 and 2013 is as follows:
Pension Fund
 
EIN/Pension Plan
Number
 
Pension
Protection
Act Zone
Status
 
FIP / RP
Status
Pending /
Implemented
 
Contributions
 
Surcharge
Imposed
2015
 
2014
 
2015
 
2014
 
2013
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
Central States, Southeast & Southwest Areas Pension Fund (1)
 
36-6044243/001
 
Red
 
Red
 
Implemented
 
$
1,996

 
$
1,806

 
$
1,752

 
No
United Food & Commercial
Workers — Local 1 Pension Fund (2)
 
16-6144007/001
 
Red
 
Red
 
Implemented
 
169

 
136

 
123

 
No
All Other
 
 
 
 
 
 
 
 
 
4,550

 
4,340

 
4,287

 
 
Total Contributions
 
 
 
 
 
 
 
 
 
$
6,715

 
$
6,282

 
$
6,162

 
 

______________________
(1) 
The applicable collective bargaining agreements related to this pension fund expire between April 30, 2016 and August 31, 2017.
(2) 
The collective bargaining agreement related to this pension fund expires on December 31, 2017.
Weighted Average Asset Allocation for Pension Plans and Target Allocation
The weighted average asset allocation for our pension plans at December 31, 2015 and 2014 and target allocation for 2015 was as follows:
 
Target
Allocation
 
Actual Allocation
 
2015
 
2014
Equity securities—U.S.
49
%
 
47
%
 
47
%
Equity securities—International
9
%
 
10
%
 
10
%
Debt securities
42
%
 
42
%
 
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:
 
2015
 
2014
 
(Dollars in thousands)
Equity securities—U.S.
$
336,297

 
$
358,067

Equity securities—International
70,552

 
74,999

Debt securities
294,125

 
317,562

Cash and cash equivalents
3,805

 
4,351

 
$
704,779

 
$
754,979
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:
 
2015
 
2014
Discount rate
4.7
%
 
4.1
%
Expected return on plan assets
8.5
%
 
8.5
%
Rate of compensation increase
3.1
%
 
3.0
%
Health care cost trend rate:
 
 
 
Assumed for next year
6.6
%
 
6.7
%
Ultimate rate
4.5
%
 
5.0
%
Year that the ultimate rate is reached
2035

 
2058
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 (credit) cost for the years ended December 31:
 
 
2015
 
2014
 
2013
Discount rate
4.1
%
 
4.9
%
 
4.1
%
Expected return on plan assets
8.5
%
 
8.5
%
 
8.5
%
Rate of compensation increase
3.0
%
 
3.0
%
 
3.1
%
Health care cost trend rate
6.7
%
 
7.2
%
 
7.2
%