XML 26 R16.htm IDEA: XBRL DOCUMENT v3.8.0.1
Employee Benefit Plans
 9 Months Ended
Sep. 30, 2017
Retirement Benefits [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
Postretirement Benefits
The change in the Company's postretirement benefit obligation is as follows:
(In thousands)
 
Nine Months Ended September 30, 2017
 
Year Ended December 31, 2016
Change in Benefit Obligation
 
 
 
 
Benefit obligation at beginning of the period
 
$
37,482

 
$
36,626

Service cost
 
1,163

 
2,323

Interest cost
 
810

 
1,498

Actuarial (gain) loss
 
3,084

 
(2,846
)
Benefits paid
 
(817
)
 
(934
)
Curtailment (gain) loss
 
(4,185
)
 
—

Plan amendments
 
(8,643
)
 
815

Benefit obligation at end of the period
 
28,894

 
37,482

Change in Plan Assets
 
 
 
 
Fair value of plan assets at end of the period
 
—

 
—

Funded status at end of the period
 
$
(28,894
)
 
$
(37,482
)

In September 2017, in conjunction with its sale of properties located in West Virginia, Virginia and Ohio, the Company terminated approximately 100 employees. As a result, the employees’ participation in the postretirement plan terminated, which resulted in a remeasurement and curtailment of the postretirement benefit obligation at September 30, 2017.
The change in benefit obligation for the nine months ended September 30, 2017 also reflects a plan amendment for the Company's change from a Medicare Supplemental program to a Medicare Advantage program for participants age 65 and older. This coverage continues to be provided under a fully-insured arrangement.
Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss)
 
 
Nine Months Ended September 30,
(In thousands)
 
2017
 
2016
Components of Net Periodic Postretirement Benefit Cost
 
 
 
 
Service cost
 
$
1,163

 
$
1,743

Interest cost
 
810

 
1,123

Amortization of prior service cost (credit)
 
(934
)
 
83

Net periodic postretirement cost
 
$
1,039

 
$
2,949

Recognized curtailment (gain) loss
 
(4,850
)
 
—

Total postretirement cost (benefit)
 
$
(3,811
)
 
$
2,949

Other Changes in Benefit Obligations Recognized in Other Comprehensive Income (Loss)
 
 
 
 
Net (gain) loss
 
$
2,266

 
$
—

Amortization of prior service cost
 
2,416

 
(83
)
Prior service credit
 
(8,643
)
 
—

Total recognized in other comprehensive income
 
$
(3,961
)
 
$
(83
)
 
 

 
 
Total recognized in net periodic benefit cost and other comprehensive income (loss)
 
$
(7,772
)
 
$
2,866


Assumptions
Assumptions used to determine projected postretirement benefit obligations and postretirement costs are as follows:
(In thousands)
 
September 30,
2017
 
December 31,
2016
Discount rate
 
4.00
%
 
4.30
%
Health care cost trend rate for medical benefits assumed for next year (pre-65)
 
7.75
%
 
7.50
%
Health care cost trend rate for medical benefits assumed for next year (post-65)
 
6.00
%
 
5.00
%
Ultimate trend rate (pre-65)
 
4.50
%
 
4.50
%
Ultimate trend rate (post-65)
 
4.50
%
 
4.50
%
Year that the rate reaches the ultimate trend rate (pre-65)
 
2030

 
2023

Year that the rate reaches the ultimate trend rate (post-65)
 
2023

 
2018