Pension Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2013

Financial Assets Accounted for at Fair Value on Recurring Basis

The following table sets forth the assets of our pension and postretirement plans that were accounted for at fair value on a recurring basis as of December 31, 2012 (in thousands):

	December 31, 2012		Quoted Prices in Active Markets for Identical Items (Level 1)		Quoted Prices in Active Markets for Similar Items (Level 2)		Unobservable Inputs (Level 3)
Pension Assets:
Domestic Equity(a)	$	218,145	$	153,465	$	64,680	$	—
International Equity(b)	107,647		18,977		88,670		—
Fixed Income(c)	142,967		51,306		91,661		—
Absolute Return(d)	80,714		9,885		—		70,829
Cash	13,830		13,830		—		—
Total Pension Assets	$	563,303	$	247,463	$	245,011	$	70,829
Postretirement Assets:
Fixed Income(c)	$	6,611	$	—	$	6,611	$	—

(a) Consists primarily of U.S. equity securities covering a diverse group of companies and U.S. stock funds that primarily track or are actively managed and measured against indices including the S&P 500 and the Russell 2000.

(b) Consists primarily of international equity funds which include stocks and debt obligations of non-U.S. entities that primarily track or are actively managed and measured against various MSCI indices.

(c) Consists primarily of fixed income mutual funds, corporate bonds, U.S. Treasury notes, other government securities and insurance policies.

(d) Consists primarily of funds with holdings in private investment companies. See additional information about the Absolute Return investments below.

The following table sets forth the assets of our pension and postretirement plans that were accounted for at fair value on a recurring basis as of December 31, 2013 (in thousands):

	December 31, 2013		Quoted Prices in Active Markets for Identical Items (Level 1)		Quoted Prices in Active Markets for Similar Items (Level 2)		Unobservable Inputs (Level 3)
Pension Assets:
Domestic Equity(a)	$	167,627	$	167,627	$	—	$	—
International Equity(b)	70,609		70,609		—		—
Fixed Income(c)	248,095		237,151		10,944		—
Absolute Return(d)	125,137		1,538		—		123,599
Cash	5,077		5,077		—		—
Total Pension Assets	$	616,545	$	482,002	$	10,944	$	123,599
Postretirement Assets:
Fixed Income(c)	$	5,620	$	—	$	5,620	$	—

(a) Consists primarily of U.S. stock funds that track or are actively managed and measured against the S&P 500 index.

(b) Consists primarily of an international equity fund which invests in common stocks and other securities whose value is based on an international equity index or an underlying equity security or basket of equity securities.

(c) Consists primarily of mutual funds that hold debt obligations issued by governments, corporations, municipalities and other borrowers. Also includes insurance policies.

(d) Consists primarily of funds with holdings in private investment companies. See additional information about the Absolute Return investments below.

Changes in Fair Value of Plans Level 3 Assets

The table below sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2013 (in thousands):

Absolute Return:	Year Ended December 31, 2013
Beginning Balance	$	70,829
Total gains relating to assets sold during the period(a)	994
Total unrealized losses relating to assets still held at the reporting date(a)	(4,511		)
Purchases	76,643
Sales	(20,356		)
Ending Balance	$	123,599

(a) These gains (losses) are recognized in the consolidated balance sheets and are included as changes in plan assets in the tables above.

The table below sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2012 (in thousands):

Absolute Return:	Year Ended December 31, 2012
Beginning Balance	$	73,025
Total losses relating to assets sold during the period(a)	(31		)
Total unrealized gains relating to assets still held at the reporting date(a)	2,311
Sales	(4,476		)
Ending Balance	$	70,829

(a) These gains (losses) are recognized in the consolidated balance sheets and are included as changes in plan assets in the tables above.

Current Forecast of Benefit Payments, which Reflect Expected Future Service

The current forecast of benefit payments, which reflect expected future service, amounts to (in millions):

	Total Pension  Benefits		Domestic Pension  Benefits		Total Postretirement Benefits
2014	$	40.0	$	37.6	$	4.8
2015	$	39.6	$	37.8	$	4.9
2016	$	41.2	$	39.4	$	5.0
2017	$	43.2	$	40.9	$	4.9
2018	$	46.2	$	44.5	$	4.8
2019-2023	$	236.3	$	223.0	$	21.4

Total Pension Benefits

Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Plans

The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans, as well as a summary of significant assumptions for our pension benefit plans (in thousands):

	Year Ended December 31, 2013						Year Ended December 31, 2012
	Total Pension Benefits			Domestic Pension Benefits			Total Pension Benefits			Domestic Pension Benefits
Change in benefit obligations:
Benefit obligation at January 1	$	762,395		$	714,158		$	674,665		$	634,184
Service cost	13,962			12,177			12,741			11,274
Interest cost	29,883			28,406			31,636			29,843
Plan amendments	—			—			1,123			1,123
Actuarial (gain) loss	(88,392		)	(85,774		)	90,336			83,428
Benefits paid	(41,132		)	(39,630		)	(49,234		)	(45,694		)
Employee contributions	320			—			294			—
Foreign exchange loss	1,546			—			834			—
Benefit obligation at December 31	$	678,582		$	629,337		$	762,395		$	714,158
Change in plan assets:
Fair value of plan assets at January 1	$	563,303		$	554,179		$	531,105		$	522,408
Actual return on plan assets	83,853			83,499			62,577			62,167
Employer contributions	9,790			7,556			18,299			15,298
Benefits paid	(41,132		)	(39,630		)	(49,234		)	(45,694		)
Employee contributions	320			—			294			—
Foreign exchange gain	411			—			262			—
Fair value of plan assets at December 31	$	616,545		$	605,604		$	563,303		$	554,179
Funded status at December 31	$	(62,037	)	$	(23,733	)	$	(199,092	)	$	(159,979	)

	December 31, 2013						December 31, 2012
	Total Pension Benefits			Domestic Pension Benefits			Total Pension Benefits			Domestic Pension Benefits
Amounts recognized in consolidated balance sheets:
Current liabilities (accrued expenses)	$	(4,390	)	$	(2,856	)	$	(3,611	)	$	(2,015	)
Noncurrent liabilities (pension benefits)	(57,647		)	(20,877		)	(195,481		)	(157,964		)
Net pension liability	$	(62,037	)	$	(23,733	)	$	(199,092	)	$	(159,979	)
Amounts recognized in accumulated other comprehensive income:
Prior service benefit	$	(70	)	$	(441	)	$	(759	)	$	(1,181	)
Net amount recognized	$	(70	)	$	(441	)	$	(759	)	$	(1,181	)
Weighted-average assumption percentages:
Discount rate	5.00		%	5.14		%	4.04		%	4.10		%
Rate of compensation increase	2.78		%	3.50		%	3.37		%	3.50		%

Components of Pension Benefits Expense

The components of pension benefits (credit) cost are as follows (in thousands):

	Year Ended						Year Ended						Year Ended
	December 31, 2013						December 31, 2012						December 31, 2011
	Total Pension Benefits			Domestic Pension Benefits			Total Pension Benefits			Domestic Pension Benefits			Total Pension Benefits			Domestic Pension Benefits
Service cost	$	13,962		$	12,177		$	12,741		$	11,274		$	12,830		$	11,169
Interest cost	29,883			28,406			31,636			29,843			32,933			30,945
Expected return on assets	(39,392		)	(38,975		)	(44,752		)	(44,342		)	(42,186		)	(41,776		)
Actuarial (gain) loss(a)	(132,916		)	(130,297		)	72,550			65,603			88,809			88,091
Amortization of prior service benefit	(689		)	(741		)	(757		)	(812		)	(953		)	(1,009		)
Total net pension benefits (credit) cost	$	(129,152	)	$	(129,430	)	$	71,418		$	61,566		$	91,433		$	87,420
Weighted-average assumption percentages:
Discount rate	4.04		%	4.10		%	5.04		%	5.07		%	5.40		%	5.45		%
Expected return on plan assets	7.20		%	7.25		%	8.19		%	8.25		%	8.19		%	8.25		%
Rate of compensation increase	3.37		%	3.50		%	3.96		%	4.11		%	3.93		%	4.11		%

Estimated Amounts to Be Amortized from Accumulated Other Comprehensive Income

The estimated amounts to be amortized from accumulated other comprehensive income into net periodic pension costs during 2014 are as follows (in thousands):

	Total Pension Benefits			Domestic Pension Benefits
Amortization of prior service benefit	$	(689	)	$	(741	)

Total Postretirement Benefits

Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Plans

The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans, as well as a summary of significant assumptions for our postretirement benefit plans (in thousands):

	Year Ended December 31,
	2013			2012
	Total Other Postretirement Benefits			Total Other Postretirement Benefits
Change in benefit obligations:
Benefit obligation at January 1	$	70,787		$	68,935
Service cost	309			274
Interest cost	2,764			3,172
Actuarial (gain) loss	(6,165		)	3,032
Benefits paid	(4,863		)	(4,626		)
Benefit obligation at December 31	$	62,832		$	70,787
Change in plan assets:
Fair value of plan assets at January 1	$	6,611		$	7,681
Actual return on plan assets	368			358
Employer contributions	3,504			3,198
Benefits paid	(4,863		)	(4,626		)
Fair value of plan assets at December 31	$	5,620		$	6,611
Funded status at December 31	$	(57,212	)	$	(64,176	)

	December 31,
	2013			2012
	Total Other Postretirement Benefits			Total Other Postretirement Benefits
Amounts recognized in consolidated balance sheets:
Current liabilities (accrued expenses)	$	(3,309	)	$	(3,361	)
Noncurrent liabilities (postretirement benefits)	(53,903		)	(60,815		)
Net postretirement liability	$	(57,212	)	$	(64,176	)
Amounts recognized in accumulated other comprehensive income:
Prior service benefit	(429		)	(525		)
Net amount recognized	$	(429	)	$	(525	)
Weighted-average assumption percentages:
Discount rate	5.03		%	4.00		%
Rate of compensation increase	3.50		%	3.50		%

Components of Pension Benefits Expense

The components of postretirement benefits (credit) cost are as follows (in thousands):

	Year Ended December 31,
	2013			2012			2011
	Total Other Postretirement Benefits			Total Other Postretirement Benefits			Total Other Postretirement Benefits
Service cost	$	309		$	274		$	263
Interest cost	2,764			3,172			3,393
Expected return on assets	(413		)	(488		)	(509		)
Actuarial (gain) loss(a)	(6,120		)	3,161			3,324
Amortization of prior service benefit	(95		)	(95		)	(697		)
Total net postretirement benefits (credit) cost	$	(3,555	)	$	6,024		$	5,774
Weighted-average assumption percentages:
Discount rate	4.00		%	5.10		%	5.30		%
Expected return on plan assets	7.00		%	7.00		%	7.00		%
Rate of compensation increase	3.50		%	4.00		%	4.00		%

Estimated Amounts to Be Amortized from Accumulated Other Comprehensive Income

The estimated amounts to be amortized from accumulated other comprehensive income into net periodic postretirement costs during 2014 are as follows (in thousands):

	Total Other Postretirement Benefits
Amortization of prior service benefit	$	(95	)