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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2018
Weighted Average Assumptions used in Determining Net Periodic Benefit Cost
The following table indicates the weighted average assumptions used in determining the net periodic benefit cost for the years indicated:
  
 
 
Years Ended December 31,
 
 
 
2018
 
 
2017
 
 
2016
 
Discount rate
 
 
3.4%
 
 
3.9%
 
 
4.1%
Expected rate of return on plan assets
 
 
7.0
 
 
 
7.5
 
 
 
7.5
 
Fair Value Measurements of Investments Held by Retirement Plan
The following table presents information about the fair value measurements of the investments held by the Retirement Plan as of December 31, 2018:
 
(in thousands)
 
Total
 
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
 
Significant Other
Observable
Inputs
(Level 2)
 
 
Significant
Unobservable
Inputs
(Level 3)
 
Equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Large-cap value 
(1)
 
$18,431
 
 
$—
 
 
$18,431
 
 
$—
 
Large-cap growth 
(2)
 
 
18,846
 
 
 
—
 
 
 
18,846
 
 
 
—
 
Large-cap core 
(3)
 
 
13,365
 
 
 
—
 
 
 
13,365
 
 
 
—
 
Mid-cap value 
(4)
 
 
3,950
 
 
 
—
 
 
 
3,950
 
 
 
—
 
Mid-cap growth 
(5)
 
 
4,034
 
 
 
—
 
 
 
4,034
 
 
 
—
 
Mid-cap core 
(6)
 
 
4,072
 
 
 
—
 
 
 
4,072
 
 
 
—
 
Small-cap value 
(7)
 
 
3,143
 
 
 
—
 
 
 
3,143
 
 
 
—
 
Small-cap growth 
(8)
 
 
5,492
 
 
 
—
 
 
 
5,492
 
 
 
—
 
Small-cap core 
(9)
 
 
3,070
 
 
 
—
 
 
 
3,070
 
 
 
—
 
International equity 
(10)
 
 
22,946
 
 
 
—
 
 
 
22,946
 
 
 
—
 
Fixed Income Funds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Income – U.S. Core 
(11)
 
 
65,274
 
 
 
—
 
 
 
65,274
 
 
 
—
 
Intermediate duration 
(12)
 
 
21,649
 
 
 
—
 
 
 
21,649
 
 
 
—
 
Equity Securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Company common stock
 
 
21,968
 
 
 
21,968
 
 
 
—
 
 
 
—
 
Cash Equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market 
*
 
 
4,006
 
 
 
1,053
 
 
 
2,953
 
 
 
—
 
 
 
$210,246
 
 
$23,021
 
 
$187,225
 
 
$—
 
 

 
*
Includes cash equivalent investments in equity and fixed income strategies.
(1)
This category contains large-cap stocks with above-average yield. The portfolio typically holds between 60 and 70 stocks.
(2)
This category seeks long-term capital appreciation by investing primarily in large growth companies based in the U.S.
(3)
This fund tracks the performance of the S&P 500 Index by purchasing the securities represented in the Index in approximately the same weightings as the Index.
(4)
This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Value Index.
(5)
This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Growth Index.
(6)
This category seeks to track the performance of the S&P Midcap 400 Index.
(7)
This category consists of a selection of investments based on the Russell 2000 Value Index.
(8)
This category consists of a mutual fund invested in small cap growth companies along with a fund invested in a selection of investments based on the Russell 2000 Growth Index.
(9)
This category consists of a mutual fund investing in readily marketable securities of U.S. companies with market capitalizations within the smallest 10% of the market universe, or smaller than the 1000th largest US company.
(10)
This category has investments in medium to large non-US companies, including high quality, durable growth companies and companies based in countries with stable economic and political systems. A portion of this category consists of an index fund designed to track the MSC ACWI ex-US Net Dividend Return Index.
(11)
This category currently includes equal investments in three mutual funds, two of which usually hold at least 8
0
% of fund assets in investment grade fixed income securities, seeking to outperform the Barclays US Aggregate Bond Index while maintaining a similar duration to that index. The third fund targets investments of 5
0
% or more in mortgage-backed securities guaranteed by the US government and its agencies.
(12)
This category consists of a mutual fund which invest in a diversified portfolio of high-quality bonds and other fixed income securities, including U.S. Government obligations, mortgage-related and asset backed securities, corporate and municipal bonds, CMOs, and other securities mostly rated A or better.
Weighted Average Asset Allocations for Retirement Plan
Current Asset Allocation
Expected Future Annuity Payments by Retirement Plan
The following annuity payments, which reflect expected future service, as appropriate, are expected to be paid by the Retirement Plan during the years indicated:
 
(in thousands)
 
 
 
2019
 
$7,668
 
2020
 
 
7,865
 
2021
 
 
7,906
 
2022
 
 
8,032
 
2023
 
 
8,246
 
2024 and thereafter
 
 
43,509
 
Total
 
$83,226
 
Weighted Average Assumptions used in Determining Net Periodic Benefit Cost of Health and Welfare Plan
The following table presents the weighted average assumptions used in determining the net periodic benefit cost for the years indicated:
 
 
 
 
Years Ended December 31,
 
 
 
2018
 
 
2017
 
 
2016
 
Discount rate
 
 
3.3%
 
 
3.7%
 
 
3.8%
Current medical trend rate
 
 
6.5
 
 
 
6.5
 
 
 
6.5
 
Ultimate trend rate
 
 
5.0
 
 
 
5.0
 
 
 
5.0
 
Year when ultimate trend rate will be reached
 
 
2024
 
 
 
2023
 
 
 
2022
 
Expected Future Payments for Premiums and Claims under Health and Welfare Plan
The following amounts are currently expected to be paid for premiums and claims during the years indicated under the Health & Welfare Plan:
 
(in thousands)
 
 
 
2019
 
$1,160
 
2020
 
 
1,130
 
2021
 
 
1,099
 
2022
 
 
1,061
 
2023
 
 
1,025
 
2024 and thereafter
 
 
4,552
 
Total
 
$10,027
 
Pension Benefits  
Information Regarding Benefit Plan
The following table sets forth certain information regarding the Retirement Plan as of the dates indicated:
 
 
 
December 31,
 
(in thousands)
 
2018
 
 
2017
 
Change in Benefit Obligation:
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
 
$
151,411
 
 
$
146,429
 
Interest cost
 
 
5,085
 
 
 
5,616
 
Actuarial (gain) loss
 
 
(4,676
)
 
 
8,267
 
Annuity payments
 
 
(6,453
)
 
 
(6,485
)
Settlements
 
 
(2,132
)
 
 
(2,416
)
Benefit obligation at end of year
 
$
143,235
 
 
$
151,411
 
Change in Plan Assets:
 
 
 
 
 
 
 
 
Fair value of assets at beginning of year
 
$
234,136
 
 
$
220,740
 
Actual (loss) return on plan assets
 
 
(15,305
)
 
 
22,297
 
Contributions
 
 
—
 
 
 
—
 
Annuity payments
 
 
(6,453
)
 
 
(6,485
)
Settlements
 
 
(2,132
)
 
 
(2,416
)
Fair value of assets at end of year
 
$
210,246
 
 
$
234,136
 
Funded status (included in “Other assets”)
 
$
67,011
 
 
$
82,725
 
Changes recognized in other comprehensive income (loss) for the year ended December 31:
 
 
 
 
 
 
 
 
Amortization of prior service cost
 
$
—
 
 
$
—
 
Amortization of actuarial loss
 
 
(7,179
)
 
 
(8,209
)
Net actuarial loss arising during the year
 
 
26,768
 
 
 
2,260
 
Total recognized in other comprehensive income (loss) for the year (pre-tax)
 
$
19,589
 
 
$
(5,949
)
Accumulated other comprehensive loss (pre-tax) not yet recognized in net periodic benefit cost at December 31:
 
 
 
 
 
 
 
 
Prior service cost
 
$
—
 
 
$
—
 
Actuarial loss, net
 
 
93,180
 
 
 
73,591
 
Total accumulated other comprehensive loss (pre-tax)
 
$
93,180
 
 
$
73,591
 
Components of Net Periodic Benefit Cost
The components of net periodic pension credit were as follows for the years indicated:
 
 
 
Years Ended December 31,
 
(in thousands)
 
2018
 
 
2017
 
 
2016
 
Components of net periodic pension credit:
 
 
 
 
 
 
 
 
 
 
 
 
Interest cost
 
$5,085
 
 
$5,616
 
 
$5,881
 
Expected return on plan assets
 
 
(16,139)
 
 
(16,290)
 
 
(15,627)
Amortization of net actuarial loss
 
 
7,179
 
 
 
8,209
 
 
 
9,050
 
Net periodic pension credit
 
$(3,875)
 
$(2,465)
 
$(696)
Post-Retirement Benefits  
Information Regarding Benefit Plan
The following table sets forth certain information regarding the Health & Welfare Plan as of the dates indicated:
 
 
 
 
December 31,
 
(in thousands)
 
2018
 
 
2017
 
Change in benefit obligation:
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
 
$16,349
 
 
$16,294
 
Interest cost
 
 
513
 
 
 
577
 
Actuarial (gain) loss
 
 
(2,248)
 
 
517
 
Premiums and claims paid
 
 
(1,031)
 
 
(1,039)
Benefit obligation at end of year
 
$13,583
 
 
$16,349
 
Change in plan assets:
 
 
 
 
 
 
 
 
Fair value of assets at beginning of year
 
$—
 
 
$—
 
Employer contribution
 
 
1,031
 
 
 
1,039
 
Premiums and claims paid
 
 
(1,031)
 
 
(1,039)
Fair value of assets at end of year
 
$—
 
 
$—
 
Funded status (included in “Other liabilities”)
 
$(13,583)
 
$(16,349)
Changes recognized in other comprehensive (loss) income for the year ended December 31:
 
 
 
 
 
 
 
 
Amortization of prior service cost
 
$249
 
 
$249
 
Amortization of actuarial gain
 
 
(309)
 
 
(274)
Net actuarial (gain) loss arising during the year
 
 
(2,248)
 
 
517
 
Total recognized in other comprehensive loss for the year (pre-tax)
 
$(2,308)
 
$492
 
Accumulated other comprehensive loss (pre-tax) not yet recognized in net periodic benefit cost at December 31:
 
 
 
 
 
 
 
 
Prior service cost
 
$(785)
 
$(1,034)
Actuarial loss, net
 
 
2,823
 
 
 
5,380
 
Total accumulated other comprehensive loss (pre-tax)
 
$2,038
 
 
$4,346
 
Components of Net Periodic Benefit Cost
The following table presents the components of net periodic benefit cost for the years indicated:
 
 
 
 
Years Ended December 31,
 
(in thousands)
 
2018
 
 
2017
 
 
2016
 
Components of Net Periodic Benefit Cost:
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$—
 
 
$—
 
 
$5
 
Interest cost
 
 
513
 
 
 
577
 
 
 
639
 
Amortization of past-service liability
 
 
(249)
 
 
(249)
 
 
(249)
Amortization of net actuarial loss
 
 
309
 
 
 
274
 
 
 
326
 
Net periodic benefit cost
 
$573
 
 
$602
 
 
$721