Pension Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2012

Financial Assets Accounted for at Fair Value on Recurring Basis

The following table sets forth our financial assets 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 holdings in private investment companies. See additional information about the Absolute Return investments below.

	December 31, 2011		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)	$	229,842	$	173,710	$	56,132	$	—
International Equity(b)		90,056		—		90,056		—
Fixed Income(c)		129,608		46,308		83,300		—
Absolute Return(d)		78,432		5,407		—		73,025
Cash		3,167		3,167		—		—
Total Pension Assets	$	531,105	$	228,592	$	229,488	$	73,025
Postretirement Assets:
Fixed Income(c)	$	7,681	$	—	$	7,681	$	—

(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 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, 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.

.

Absolute Return:	Year Ended December 31, 2011
Beginning Balance	$	69,399
Total gains relating to assets sold during the period(a)		4,471
Total unrealized losses relating to assets still held at the reporting date(a)		(6,367	)
Purchases		25,000
Sales		(19,478	)
Ending Balance	$	73,025

(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
2013	$	37.1	$	35.4	$	4.7
2014	$	39.8	$	37.1	$	4.9
2015	$	40.4	$	38.6	$	5.0
2016	$	41.7	$	40.2	$	5.1
2017	$	43.9	$	41.7	$	5.0
2018-2022	$	248.4	$	237.1	$	22.2

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, 2012						Year Ended December 31, 2011
	Total Pension Benefits			Domestic Pension Benefits			Total Pension Benefits			Domestic Pension Benefits
Change in benefit obligations:
Benefit obligation at January 1	$	674,665		$	634,184		$	613,880		$	572,963
Service cost		12,741			11,274			12,830			11,169
Interest cost		31,636			29,843			32,933			30,945
Plan amendments		1,123			1,123			508			508
Actuarial loss		90,336			83,428			49,729			48,977
Benefits paid		(49,234	)		(45,694	)		(35,249	)		(30,378	)
Employee contributions		294			—			299			—
Foreign exchange loss (gain)		834			—			(265	)		—
Benefit obligation at December 31	$	762,395		$	714,158		$	674,665		$	634,184
Change in plan assets:
Fair value of plan assets at January 1	$	531,105		$	522,408		$	507,064		$	498,967
Actual return on plan assets		62,577			62,167			3,107			2,662
Employer contributions		18,299			15,298			56,105			51,157
Benefits paid		(49,234	)		(45,694	)		(35,249	)		(30,378	)
Employee contributions		294			—			299			—
Foreign exchange gain (loss)		262			—			(221	)		—
Fair value of plan assets at December 31	$	563,303		$	554,179		$	531,105		$	522,408
Funded status at December 31	$	(199,092	)	$	(159,979	)	$	(143,560	)	$	(111,776	)

	December 31, 2012						December 31, 2011
	Total Pension Benefits			Domestic Pension Benefits			Total Pension Benefits			Domestic Pension Benefits
Amounts recognized in consolidated balance sheets:
Current liabilities (accrued expenses)	$	(3,611	)	$	(2,015	)	$	(15,596	)	$	(13,927	)
Noncurrent liabilities (pension benefits)		(195,481	)		(157,964	)		(127,964	)		(97,849	)
Net pension liability	$	(199,092	)	$	(159,979	)	$	(143,560	)	$	(111,776	)
Amounts recognized in accumulated other comprehensive income:
Prior service benefit	$	(759	)	$	(1,181	)	$	(7,193	)	$	(7,616	)
Net amount recognized	$	(759	)	$	(1,181	)	$	(7,193	)	$	(7,616	)
Weighted-average assumption percentages:
Discount rate		4.04	%		4.10	%		5.04	%		5.07	%
Rate of compensation increase		3.37	%		3.50	%		3.96	%		4.11	%

Components of Pension Benefits Expense

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

	Year Ended December 31, 2012						Year Ended December 31, 2011						Year Ended December 31, 2010
	Total Pension Benefits			Domestic Pension Benefits			Total Pension Benefits			Domestic Pension Benefits			Total Pension Benefits			Domestic Pension Benefits
Service cost	$	12,741		$	11,274		$	12,830		$	11,169		$	11,271		$	9,577
Interest cost		31,636			29,843			32,933			30,945			31,844			29,934
Expected return on assets		(44,752	)		(44,342	)		(42,186	)		(41,776	)		(40,213	)		(39,903	)
Actuarial loss		72,550			65,603			88,809			88,091			29,512			29,556
Amortization of net transition asset		—			—			—			—			(9	)		(9	)
Amortization of prior service benefit		(757	)		(812	)		(953	)		(1,009	)		(986	)		(1,038	)
Benefits expense	$	71,418		$	61,566		$	91,433		$	87,420		$	31,419		$	28,117
Weighted-average assumption percentages:
Discount rate		5.04	%		5.07	%		5.40	%		5.45	%		5.77	%		5.86	%
Expected return on plan assets		8.19	%		8.25	%		8.19	%		8.25	%		8.19	%		8.25	%
Rate of compensation increase		3.96	%		4.11	%		3.93	%		4.11	%		3.90	%		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 2013 are as follows (in thousands):

	Total Pension Benefits			Domestic Pension Benefits
Amortization of prior service benefit	$	(686	)	$	(741	)

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,
	2012			2011
	Total Other Postretirement Benefits			Total Other Postretirement Benefits
Change in benefit obligations:
Benefit obligation at January 1	$	68,935		$	66,436
Service cost		274			263
Interest cost		3,172			3,393
Actuarial loss		3,032			3,555
Benefits paid		(4,626	)		(4,712	)
Benefit obligation at December 31	$	70,787		$	68,935
Change in plan assets:
Fair value of plan assets at January 1	$	7,681		$	7,985
Actual return on plan assets		358			740
Employer contributions		3,198			3,668
Benefits paid		(4,626	)		(4,712	)
Fair value of plan assets at December 31	$	6,611		$	7,681
Funded status at December 31	$	(64,176	)	$	(61,254	)

	December 31,
	2012			2011
	Total Other Postretirement Benefits			Total Other Postretirement Benefits
Amounts recognized in consolidated balance sheets:
Current liabilities (accrued expenses)	$	(3,361	)	$	(3,666	)
Noncurrent liabilities (postretirement benefits)		(60,815	)		(57,588	)
Net postretirement liability	$	(64,176	)	$	(61,254	)
Amounts recognized in accumulated other comprehensive loss:
Prior service benefit		(525	)		(620	)
Net amount recognized	$	(525	)	$	(620	)
Weighted-average assumption percentages:
Discount rate		4.00	%		5.10	%
Rate of compensation increase		3.50	%		4.00	%

Components of Pension Benefits Expense

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

	Year Ended December 31,
	2012			2011			2010
	Total Other Postretirement Benefits			Total Other Postretirement Benefits			Total Other Postretirement Benefits
Service cost	$	274		$	263		$	382
Interest cost		3,172			3,393			3,564
Expected return on assets		(488	)		(509	)		(526	)
Actuarial loss		3,161			3,324			763
Amortization of prior service benefit		(95	)		(697	)		(1,704	)
Benefits expense	$	6,024		$	5,774		$	2,479
Weighted-average assumption percentages:
Discount rate		5.10	%		5.30	%		5.70	%
Expected return on plan assets		7.00	%		7.00	%		7.00	%
Rate of compensation increase		4.00	%		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 2013 are as follows (in thousands):

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