Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2016

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,
	2016			2015			2014
Discount rate		4.1	%		4.0	%		4.8	%
Expected rate of return on plan assets		7.5			8.0			9.0

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, 2016:


(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⁾	$	19,735	$	—	$	19,735	$	—
Large-cap growth ⁽²⁾		17,726		—		17,726		—
Large-cap core ⁽³⁾		12,549		—		12,549		—
Mid-cap value ⁽⁴⁾		4,203		—		4,203		—
Mid-cap growth ⁽⁵⁾		3,825		—		3,825		—
Mid-cap core ⁽⁶⁾		4,303		—		4,303		—
Small-cap value ⁽⁷⁾		3,441		—		3,441		—
Small-cap growth ⁽⁸⁾		2,887		—		2,887		—
Small-cap core ⁽⁹⁾		6,432		—		6,432		—
International equity ⁽¹⁰⁾		23,302		—		23,302		—
Fixed Income Funds:
Fixed Income – U.S. Core ⁽¹¹⁾		70,912		—		70,912		—
Intermediate duration ⁽¹²⁾		24,312		—		24,312		—
Equity Securities:
Company common stock		24,403		24,403		—		—
Cash Equivalents:								—
Money market ^*		2,710		1,092		1,618		—

	$	220,740	$	25,495	$	195,245	$	—

*	Includes cash equivalent investments in equity and fixed income strategies.

(1)

This category contains large-cap stocks with above-average yields. 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 Center for Research in Security Prices (“CRSP”) U.S. Mid-Cap Value Index.

(5)

This category employs an indexing investment approach designed to track the performance of the CRSP U.S. 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 selection of investments based on the Russell 2000 Growth Index.

(9)

This category consists of an index fund designed to track the Russell 2000, along with a 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 U.S. company.

(10)

This category has investments in medium to large non-U.S. 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 Morgan Stanley and Capital International Group All Country World Index (“MSCI ACWI”) ex-U.S. Net Dividend Return Index.

(11)

This category currently includes equal investments in three mutual funds, two of which usually hold at least 80% of fund assets in investment-grade fixed income securities, seeking to outperform the Barclays U.S. Aggregate Bond Index while maintaining a similar duration to that index. The third fund targets investments of 50% or more in mortgage-backed securities guaranteed by the U.S. government and its agencies.

(12)

This category consists of a mutual fund that invests 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 that are mostly rated “A” or better.

Weighted Average Asset Allocations for Retirement Plan

The asset allocations for the Retirement Plan as of December 31, 2016 and 2015 were as follows:


	At December 31,
	2016			2015
Equity securities		56	%		55	%
Debt securities		43			44
Cash equivalents		1			1

Total		100	%		100	%

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)
2017	$	7,077
2018		7,158
2019		7,310
2020		7,385
2021		7,532
2022 and thereafter		39,526

Total	$	75,988

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,
	2016			2015			2014
Discount rate		3.8	%		4.0	%		4.3	%
Current medical trend rate		6.5			6.5			7.0
Ultimate trend rate		5.0			5.0			5.0
Year when ultimate trend rate will be reached		2022			2018			2018

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)
2017	$	1,307
2018		1,277
2019		1,238
2020		1,202
2021		1,165
2022 and thereafter		5,220

Total	$	11,409

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)	2016			2015
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	146,618		$	157,061
Interest cost		5,881			6,063
Actuarial loss (gain)		611			(7,891	)
Annuity payments		(6,473	)		(6,339	)
Settlements		(208	)		(2,276	)

Benefit obligation at end of year	$	146,429		$	146,618

Change in Plan Assets:
Fair value of assets at beginning of year	$	211,888		$	222,990
Actual return (loss) on plan assets		15,533			(2,487	)
Contributions		—			—
Annuity payments		(6,473	)		(6,339	)
Settlements		(208	)		(2,276	)

Fair value of assets at end of year	$	220,740		$	211,888

Funded status (included in “Other assets”)	$	74,311		$	65,270

Changes recognized in other comprehensive income (loss) for the year ended December 31:
Amortization of prior service cost	$	—		$	—
Amortization of actuarial loss		(9,050)			(8,208	)
Net actuarial loss arising during the year		706			12,155

Total recognized in other comprehensive loss for the year (pre-tax)		$(8,344)		$	3,947

Accumulated other comprehensive loss (pre-tax) not yet recognized in net periodic benefit cost at December 31:
Prior service cost	$	—		$	—
Actuarial loss, net		79,541			87,885

Total accumulated other comprehensive loss (pre-tax)	$	79,541		$	87,885

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)	2016			2015			2014
Components of net periodic pension credit:
Interest cost	$	5,881		$	6,063		$	5,895
Expected return on plan assets		(15,627	)		(17,559	)		(19,435	)
Amortization of net actuarial loss		9,050			8,208			3,289

Net periodic pension credit	$	(696	)	$	(3,288	)	$	(10,251	)

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)	2016			2015
Change in benefit obligation:
Benefit obligation at beginning of year	$	17,280		$	18,375
Service cost		5			4
Interest cost		639			700
Actuarial gain		(673	)		(880	)
Premiums and claims paid		(957	)		(919	)

Benefit obligation at end of year	$	16,294		$	17,280

Change in plan assets:
Fair value of assets at beginning of year	$	—		$	—
Employer contribution		957			919
Premiums and claims paid		(957	)		(919	)

Fair value of assets at end of year	$	—		$	—

Funded status (included in “Other liabilities”)	$	(16,294	)	$	(17,280	)

Changes recognized in other comprehensive (loss) income for the year ended December 31:
Amortization of prior service cost	$	249		$	249
Amortization of actuarial gain		(326	)		(383	)
Net actuarial (gain) loss arising during the year		(673	)		(880	)

Total recognized in other comprehensive loss for the year (pre-tax)	$	(750	)	$	(1,014	)

Accumulated other comprehensive loss (pre-tax) not yet recognized in net periodic benefit cost at December 31:
Prior service cost	$	(1,283	)	$	(1,533	)
Actuarial loss, net		5,137			6,137

Total accumulated other comprehensive loss (pre-tax)	$	3,854		$	4,604

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)	2016			2015			2014
Components of Net Periodic Benefit Cost:
Service cost	$	5		$	4		$	4
Interest cost		639			700			759
Amortization of past-service liability		(249	)		(249	)		(249	)
Amortization of net actuarial loss		326			383			474

Net periodic benefit cost	$	721		$	838		$	988