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Retirement Plans
 12 Months Ended
Dec. 31, 2011
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract]  
Retirement Plans [Text Block]
Retirement Plans
Pension Plans. The Company currently has two defined benefit pension plans for certain of its employees in the United States. The defined benefit plans provide benefit payments using formulas based on an employees compensation and length of service, or stated amounts for each year of service. The Company expects to continue to fund these plans based on governmental requirements, amounts deductible for income tax purposes and as needed to ensure that plan assets are sufficient to satisfy plan liabilities. Most of the employee benefits under the Company’s defined benefit plans are frozen.
Supplemental Executive Retirement Plans. The Company has various supplemental executive retirement plans (“SERP”), which provide benefits to certain former directors and executives. For accounting purposes, these plans are unfunded, however, one plan has annuities that cover a portion of the liability to the participants in its plan and the income from the annuities offsets a portion of the cost of the plan. These annuities are included in other assets, net in the consolidated balance sheets.
Other Postretirement Plans.  The Company has various other-postretirement benefit plans (“OPEB”), primarily focused on postretirement healthcare, such as medical insurance and life insurance and related benefits for certain of its former employees and, in some instances, their spouses. Benefits, eligibility and cost-sharing provisions vary by plan documents or union collective bargaining arrangements.
Savings Plan. The Company sponsors a defined contribution plan to provide substantially all United States salaried and certain hourly employees an opportunity to accumulate personal funds for their retirement. In 2011, 2010 and 2009, the Company matched only certain union employee’s voluntary contributions and contributions required under the collective bargaining agreements. Company contributions to the plan were less than $0.1 million in 2011, 2010 and 2009. Employees participating in the plan held 2,479,862 shares of the Company’s common stock as of the year ended 2011.

Funded Status and Net Periodic Cost. The following table provides a reconciliation of the changes in the Company’s pension, SERP and OPEB plans benefit obligations and fair value of assets for 2011 and 2010, a statement of the funded status as of the years ended 2011 and 2010, respectively, and the amounts recognized in the consolidated balance sheets as of the years ended 2011 and 2010 (in thousands).

 
Pensions
 
SERPs
 
OPEBs
 
2011
 
2010
 
2011
 
2010
 
2011
 
2010
Reconciliation of benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
280,275

 
$
262,366

 
$
18,881

 
$
18,965

 
$
2,801

 
$
2,847

Service cost                                                     
1,382

 
439

 
—

 
—

 
—

 
—

Interest cost                                                     
14,299

 
14,803

 
940

 
1,427

 
138

 
153

Actuarial (gain) loss                                                     
47,115

 
16,332

 
1,773

 
558

 
(219
)
 
(65
)
Benefits paid                                                     
(15,160
)
 
(13,665
)
 
(2,056
)
 
(2,069
)
 
(169
)
 
(134
)
Prior service cost due to aquisition                  
612

 
—

 
—

 
—

 
—

 
—

Benefit obligation at end of year
$
328,523

 
$
280,275

 
$
19,538

 
$
18,881

 
$
2,551

 
$
2,801

Reconciliation of fair value of plan assets:
 

 
 

 
 

 
 

 
 

 
 

Fair value of plan assets at beginning of year
$
202,839

 
$
183,433

 
$
—

 
$
—

 
$
—

 
$
—

Actual return on plan assets
3,735

 
24,466

 
—

 
—

 
—

 
—

Employer contributions                                                     
19,163

 
8,605

 
2,056

 
2,069

 
169

 
134

Benefits paid                                                     
(15,160
)
 
(13,665
)
 
(2,056
)
 
(2,069
)
 
(169
)
 
(134
)
Fair value of plan assets at end of year
210,577

 
202,839

 
—

 
—

 
—

 
—

Funded status at end of year
$
(117,946
)
 
$
(77,436
)
 
$
(19,538
)
 
$
(18,881
)
 
$
(2,551
)
 
$
(2,801
)
Amounts recognized in accumulated other comprehensive loss:
 

 
 

 
 

 
 

 
 

 
 

Net actuarial loss                                                     
$
97,567

 
$
38,698

 
$
3,502

 
$
1,789

 
$
(181
)
 
$
41

Prior service cost                                                     
—

 
2

 
—

 
—

 
(29
)
 
(35
)
Total                                               
$
97,567

 
$
38,700

 
$
3,502

 
$
1,789

 
$
(210
)
 
$
6

Amounts recognized in the consolidated balance sheets:
 

 
 

 
 

 
 

 
 

 
 

Other current liabilities                                                     
$
—

 
$
—

 
$
2,059

 
$
2,081

 
$
267

 
$
332

Other liabilities                                                     
117,946

 
77,436

 
17,479

 
16,800

 
2,284

 
2,469

  Total liabilities                                                           
$
117,946

 
$
77,436

 
$
19,538

 
$
18,881

 
$
2,551

 
$
2,801

The following table provides components of the net periodic cost for the pension, SERP and OPEB plans for the years ended 2011, 2010 and 2009 (in thousands):

 
2011
 
2010
 
2009
Service cost
$
1,382

 
$
439

 
$
543

Interest cost on projected benefit obligation
15,377

 
16,383

 
12,301

Expected return on plan assets
(16,426
)
 
(14,478
)
 
(9,251
)
Net amortization and deferral
(5
)
 
2

 
2

Recognized actuarial loss
1,015

 
2,304

 
2,383

Net periodic cost
$
1,343

 
$
4,650

 
$
5,978


Interest cost on projected benefit obligation includes $1.1 million, $1.6 million and $1.5 million related to the Company’s SERP and OPEB plans in 2011, 2010 and 2009, respectively.

The pre-tax amount of actuarial losses in accumulated other comprehensive loss at December 31, 2011 that is expected to be recognized in net periodic benefit cost in 2012 is $6.4 million and $0.1 million, respectively, for defined benefit pension plans and other post retirement benefit plans. The pre-tax amount of prior service cost included in accumulated other comprehensive loss at December 31, 2011, that is expected to be recognized in net periodic benefit cost in 2012 is $2.1 million for defined benefit pension plans.



The assumptions used in computing the net periodic cost and the funded status were as follows:

 
2011
 
2010
 
2009
Weighted average discount rate
4.25
%
 
5.25
%
 
5.75
%
Expected long-term rate of return on plan assets
8.00
%
 
8.00
%
 
8.00
%
Rate of compensation increase
3.00
%
 
4.00
%
 
4.00
%
The discount rate assumption used to determine the Company’s pension obligations as of the years ended 2011 and 2010 takes into account the projected future benefit cash flow and the underlying individual yields in the Citigroup Pension Liability Index that would be available to provide for the payment of those benefits. The ultimate rate is developed by calculating an equivalent discounted present value of the benefit cash flow as of the years ended 2011 and 2010, respectively, using a single discount rate rounded to the nearest 0.25%.
The expected long-term rate of return on plan assets of 8.0% for the years ended 2011 and 2010 was based on historical returns and the expectations for future returns for each asset class in which plan assets are invested as well as the target asset allocation of the investments of the plan assets.
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Company’s pension and other postretirement plans with accumulated benefit obligations in excess of plan assets were as follows (in thousands):

 
2011
 
2010
Projected benefit obligation                                                                           
$
348,061

 
$
299,156

Accumulated benefit obligation                                                                           
347,638

 
298,751

Fair value of plan assets                                                                           
210,577

 
202,839

The Company currently expects to contribute approximately $20.0 million to its pension plans and approximately $2.4 million to its SERP and OPEB plans in 2012.
The estimated pension benefit payments expected to be paid by the pension plans and the estimated SERP and OPEB payments expected to be paid by the Company for the years 2012 through 2016, and in the aggregate for the years 2017 through 2021, are as follows (in thousands):
 
 
Pension Plans
 
SERP
 
OPEB 
2012
$
15,199

 
$
2,102

 
$
272

2013
15,523

 
2,106

 
257

2014
16,065

 
1,988

 
242

2015
16,509

 
1,917

 
227

2016
16,909

 
1,894

 
212

2017 through 2021
92,308

 
7,151

 
870

Fair Value of Assets. The Company's investment objective is to maximize the long-term return on its pension plan assets within prudent levels of risk. Investments are primarily diversified with a blend of equity securities, fixed income securities and alternative investments. The intent is to minimize plan expenses by outperforming plan liabilities over the long run.

The Company segregated its plan assets by the following major categories and levels for determining their fair value as of the years ended 2011 and 2010:

Cash and cash equivalents - Carrying value approximates fair value. As such, these assets were classified as Level 1.

Equity - Equity investments are diversified by including United States and non-United States stock, growth stocks, value stocks and stocks of large and small companies. The values of individual equity securities are based on quoted prices in active markets and are classified as Level 1.


Fixed income - Fixed income securities are primarily United States governmental and corporate bonds including mutual funds. The Company invests in certain fixed income funds that were priced on active markets and were classified as Level 1. The Company also invests in certain fixed income securities that are priced based on valuation models rather than a last trade basis and are not exchange-traded and are classified as Level 2.

Other - The Company also invests in group annuity contracts, which are invested in certain fixed income securities and are classified as Level 2.

Alternative investments - Alternative investments are primarily private equity hedge funds and hedge fund-of-funds. The fair value of alternative investments has been estimated using their Net Asset Values (“NAV”) as reported by the investment manager of the respective alternative investment funds. NAV reported by the hedge funds is used as a practical expedient to estimate the fair value. The investment manager values these investments on a periodic basis with models that use market, income and valuation methods. The valuation inputs are not highly observable, and these interests are not actively traded on an open market. These investments were classified as Level 3.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value, or reflective of future fair values. While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. The Company invests in various assets in which valuation is determined by NAV. The Company believes that the NAV is representative of fair value, as there are no significant restrictions on redemption on these investments or other reasons that indicate the investment would be redeemed at an amount different than the NAV.
The fair values of the Company’s pension plan assets as of the years ended 2011 and 2010, by asset category are as follows (in thousands):

 
2011
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
$
27,066

 
$
—

 
$
—

 
$
27,066

Equity
101,716

 
—

 
—

 
101,716

Fixed Income
44,093

 
7,018

 
—

 
51,111

Other
—

 
1,922

 
—

 
1,922

Alternative investments
—

 
—

 
28,762

 
28,762

Total
$
172,875

 
$
8,940

 
$
28,762

 
$
210,577


 
2010
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
$
6,263

 
$
—

 
$
—

 
$
6,263

Equity
104,825

 
—

 
—

 
104,825

Fixed Income
47,345

 
1,898

 
—

 
49,243

Other
3,039

 
2,047

 
—

 
5,086

Alternative investments
—

 
—

 
37,422

 
37,422

Total
$
161,472

 
$
3,945

 
$
37,422

 
$
202,839

The following table provides a summary of changes in the fair value of the Company’s Level 3 assets (in thousands):

 
Alternative Investments
Balance as of the year ended 2009
$
35,707

Purchases, sales and settlements
(1,422
)
Unrealized gains
3,137

Balance as of the year ended 2010
37,422

Purchases, sales and settlements
(9,002
)
Unrealized gains
342

Balance as of the year ended 2011
$
28,762

The range of asset allocations and the target allocations for the pension and other post-retirement asset investments were as follows:

 
2011
 
2010
 
Target
Equity securities                                                                           
55%
 
52-61%
 
60-75%
Fixed income securities
25-39%
 
25-34%
 
25-35%
Alternative investments and other
6-20%
 
5-23%
 
0-10%
Multi-Employer Plans. Certain of the Company’s employees are included in multi-employer pension plans to which the Company makes contributions in accordance with contractual union agreements. Such contributions are made on a monthly basis in accordance with the requirements of the plans and the actuarial computations and assumptions of the administrators of the plans. Contributions to multi-employer plans were $1.6 million in 2011, $2.4 million in 2010 and $2.7 million in 2009. In 2011 and 2010, the Company recorded withdrawal liabilities of $1.4 million and $8.8 million, respectively, as a result of exiting certain multi-employer pension plans in connection with its cost savings and restructuring plans.
The Company's participation in these plans for the year ended 2011, is outlined in the table below:
Pension Fund
EIN/Pension Plan Number
Pension Protection Act Reported Status (1)
FIP/RP Status (2)
Contributions
Surcharge imposed
Expiration Date of Collective Bargaining Agreement
 
 
2011
2010
 
2011
2010
2009
 
 
 
 
 
 
 
(in thousands)
 
 
GCC/IBT National Pension Fund
52-6118568/001
Red
Red
Implemented
$
249

$
231

$
260

Yes
6/30/2013
GCC/IBT National Pension Fund
52-6118568/001
Red
Red
Implemented
206

333

370

Yes
12/31/2014
GCC/IBT National Pension Fund
52-6118568/001
Red
Red
Implemented
25

41

56

Yes
4/30/2014
Graphic Communications Pension Trust Fund Of Canada
M5000050-223
Red
Red
Implemented
250

250

231

No
6/30/2012
Graphic Communications Supplemental Retirement and Disability Fund
M5000050-226-251
Red
Red
Implemented
523

575

577

No
6/30/2012
CWA/ITU Negotiated Pension Plan
13-6212879/001
Red
Red
Implemented
347

408

394

No
2/1/2012
 
 
 
Total contributions
$
1,600

$
1,838

$
1,888

 
 

(1)
Unless otherwise noted, the most recent Pension Protection Act (“PPA”) zone status available in 2011 and 2010 is for the plan's year end, not the Company's year end. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded.
(2)
The FIP/RP Status column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented.