Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2018

Retirement Benefits [Abstract]

Schedule of Cost of Pension Plans

Cost of pension plans

Pension plan cost includes the following components:

(in thousands)
	2018			2017			2016
Service cost for benefits earned	$	38,052		$	31,106		$	28,201
Interest cost on benefit obligation	35,382			34,275			33,125
Expected return on plan assets	(51,260		)	(41,267		)	(39,520		)
Prior service cost amortization	1,353			871			696
Net actuarial loss amortization	12,809			9,301			8,111
Settlement cost (1)	—			302			—
Pension plan cost (2)	$	36,336		$	34,588		$	30,613

(1) The final SERP benefit for two former executives was settled with lump sum payments in 2017.

(2) Pension plan costs represent the total cost before reimbursements to Indemnity from the Exchange and its subsidiaries.

Schedule of Actuarial Assumptions Used to Measure the Year-End Obligations and Net Periodic Benefit Costs for the Subsequent Year

Actuarial assumptions

The following table describes the assumptions at December 31 used to measure the year-end obligations and the net periodic benefit costs for the subsequent year:

	2018		2017		2016		2015
Employee pension plan:
Discount rate	4.47	%	3.73	%	4.24	%	4.57	%
Expected return on assets	6.75		6.75		7.00		7.00
Compensation increases (1)	3.32		3.32		3.32		3.32
SERP:
Discount rate – pre-retirement/post-retirement	4.47/3.97		3.73/3.23		4.24/3.74		4.57/4.07
Rate of compensation increase	5.00		5.00		5.00		5.00

(1) The rate of compensation increase for the employee plan is age-graded.  An equivalent single compensation increase rate of 3.32% in 2018, 2017 and 2016 would produce similar results.

Schedule of Funded Status of Pension Plans and Amounts Recognized in the Statements of Financial Position

The following table sets forth the funded status of the pension plans and the amounts recognized in the Statements of Financial Position at December 31:

(in thousands)
	2018			2017
Funded status at end of year	$	(118,596	)	$	(207,766	)
Pension liabilities – due within one year (1)	$	(1,730	)	$	(236	)
Pension liabilities – due after one year	(116,866		)	(207,530		)
Net amount recognized	$	(118,596	)	$	(207,766	)

(1)    The current portion of pension liabilities is included in accounts payable and accrued liabilities in the Statements of Financial Position.

Schedule of Reconciliation of Beginning and Ending Balances of the Projected Benefit Obligation, as well as the Accumulated Benefit Obligation

The following table sets forth a reconciliation of beginning and ending balances of the projected benefit obligation, as well as the accumulated benefit obligation at December 31:

(in thousands)
	2018			2017
Projected benefit obligation, beginning of year	$	951,666		$	816,659
Service cost for benefits earned	38,052			31,106
Interest cost on benefit obligation	35,382			34,275
Plan amendments	3,007			5,050
Actuarial (gain) loss	(123,910		)	82,940
Benefits paid	(18,032		)	(16,184		)
Settlement cost	—			(2,180		)
Projected benefit obligation, end of year	$	886,165		$	951,666
Accumulated benefit obligation, end of year	$	727,340		$	767,527

Schedule of Defined Benefit Pension Plans with Assets less than Projected Benefit Obligation

The following table describes plans with assets less than projected benefit obligation at December 31:

(in thousands)	Projected Benefit Obligation in Excess of Plan Assets
	2018		2017
Projected benefit obligation	$	886,165	$	951,666
Plan assets	767,569		743,900

Schedule of Defined Benefit Pension Plans with Assets less than Accumulated Benefit Obligation

The following table describes plans with assets less than accumulated benefit obligation at December 31:

(in thousands)	Accumulated Benefit Obligation in Excess of Plan Assets
	2018		2017
Accumulated benefit obligation	$	18,908	$	767,527
Plan assets	—		743,900

Schedule of Reconciliation of Beginning and Ending Balances of the Fair Value of Plan Assets

Pension assets

The following table sets forth a reconciliation of beginning and ending balances of the fair value of plan assets at December 31:

(in thousands)
	2018			2017
Fair value of plan assets, beginning of year	$	743,900		$	592,544
Actual (loss) gain on plan assets	(38,360		)	108,618
Employer contributions	80,061			61,102
Benefits paid	(18,032		)	(16,184		)
Settlements (1)	—			(2,180		)
Fair value of plan assets, end of year	$	767,569		$	743,900

(1) The final SERP benefit for two former executives was settled with lump sum payments in 2017.

Schedule of Amounts Included in Accumulated Other Comprehensive Income that were Not Yet Recognized as Components of Net Benefit Costs

Accumulated other comprehensive income

Net actuarial loss and prior service cost included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs were as follows:

(in thousands)
	2018		2017
Net actuarial loss	$	144,165	$	191,264
Prior service cost	11,855		10,201
Net amount not yet recognized	$	156,020	$	201,465

Schedule of Amounts Recognized in Other Comprehensive Income for Pension Plans

Other comprehensive income

Amounts recognized in other comprehensive income for pension plans were as follows:

(in thousands)
	2018			2017
Net actuarial (gain) loss arising during the year	$	(34,290	)	$	15,588
Amortization of net actuarial loss	(12,809		)	(9,301		)
Amortization of prior service cost	(1,353		)	(871		)
Amendments (1)	3,007			5,050
Impact due to settlement (2)	—			(302		)
Total recognized in other comprehensive income	$	(45,445	)	$	10,164

(1) In 2018, there were five new SERP participants. In 2017, amendments include an enactment to the surviving spouse's death benefits, which increased the pension plan obligation by $3.6 million and the SERP obligation by $0.3 million, additionally there were two new SERP participants in 2017, which contributed $1.2 million.

(2) The final SERP benefit for two former executives was settled with lump sum payments in 2017.

Schedule of Target and Actual Asset Allocations for the Portfolio

The target and actual asset allocations for the portfolio are as follows for the years ended December 31:

	Target asset allocation (1)			Target asset allocation		Actual asset allocation		Actual asset allocation
Asset allocation:	2018			2017		2018		2017
Equity securities:
U.S. equity securities	25	%	(2)	35	%	24	%	39	%
Non-U.S. equity securities	16		(3)	20		14		19
Total equity securities	41			55		38		58
Debt securities	58		(4)	44		61		41
Other	1		(5)	1		1		1
Total	100	%		100	%	100	%	100	%

(1) Changes to the target asset allocation in 2018 were made to reduce investment risk by shifting portfolio assets from equity securities to debt securities.

(2) U.S. equity securities –21% seek to achieve excess returns relative to the Russell 2000 Index. The remaining 79% of the allocation to U.S. equity securities are comprised of equity index funds that track the S&P 500.

(3) Non-U.S. equity securities –11% are allocated to international small cap investments, while another 20% are allocated to international emerging market investments.  The remaining 69% of the Non-U.S. equity securities are allocated to investments seeking to achieve excess returns relative to an international market index.

(4) Debt securities –32% are allocated to long U.S. Treasury Strips, 62% are allocated to U.S. corporate bonds with an emphasis on long duration bonds rated A or better, while the remaining 6% are allocated to floating rate high income leverage loans.

(5) Institutional money market fund.

Schedule of Fair Value Measurements of Pension Plan Assets by Major Category and Level of Input

The following tables represent the fair value measurements for the pension plan assets by major category and level of input:

	At December 31, 2018
	Fair value measurements of plan assets using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Equity securities:
U.S. equity securities	$	182,495	$	0	$	182,495	$	0
Non-U.S. equity securities	110,942		0		110,942		0
Total equity securities	293,437		0		293,437		0
Debt securities	464,613		0		464,613		0
Other	9,519		9,519		0		0
Total	$	767,569	$	9,519	$	758,050	$	0

	At December 31, 2017
	Fair value measurements of plan assets using:
(in thousands)	Total		Quoted prices in active markets for identical assets Level 1		Significant observable inputs Level 2		Significant unobservable inputs Level 3
Equity securities:
U.S. equity securities	$	288,861	$	0	$	288,861	$	0
Non-U.S. equity securities	145,238		0		145,238		0
Total equity securities	434,099		0		434,099		0
Debt securities	303,331		0		303,331		0
Other	6,470		6,470		0		0
Total	$	743,900	$	6,470	$	737,430	$	0

Schedule of Benefits Expected to be Paid Over the Next 10 Years from Pension Plans

Estimated future benefit payments

The following table sets forth amounts of benefits expected to be paid over the next 10 years from our pension plans as of December 31:

(in thousands)
Year ending December 31,		Expected future benefit payments
2019	$	22,039
2020		23,244
2021		25,946
2022		29,319
2023		32,631
2024 - 2028		213,490