XML 114 R20.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Retirement Benefits | 12 Months Ended
--- | ---
Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract] |
Retirement Benefits | R ETIREMENT B ENEFITS We sponsor a number of defined benefit and defined contribution pension plans which cover substantially all U.S. employees, other than union employees covered by multiemployer defined benefit pension plans under collective bargaining agreements. Pension benefits are provided based on either a career average, final pay or years of service formula. With respect to certain hourly employees, pension benefits are provided based on stated amounts for each year of service. Our U.S. salaried pension plans are closed to new employees. We also sponsor other postretirement benefits plans, including unfunded defined benefit health care and life insurance plans, that provide postretirement benefits to certain employees. The plans are contributory, with retiree contributions adjusted annually, and contain cost sharing features including deductibles and coinsurance. Retiree health care benefits are paid as covered expenses are incurred. The changes in benefit obligations and plan assets as well as the funded status of our retirement plans at December 31 were as follows:
| Pension Benefits |  | Other Postretirement Benefits
| 2013 |  | 2012 |  | 2013 |  | 2012
| (Dollars in thousands)
Change in benefit obligation |  |  |  |  |  |  |
Obligation at beginning of year | $ | 672,372 |  |  | $ | 609,738 |  |  | $ | 49,177 |  |  | $ | 51,131 |
Service cost | 15,834 |  |  | 14,788 |  |  | 682 |  |  | 830 |
Interest cost | 26,791 |  |  | 27,363 |  |  | 1,605 |  |  | 2,051 |
Actuarial (gains) losses | (54,746 | ) |  | 49,067 |  |  | (10,352 | ) |  | (1,299 | )
Plan amendments | 1,521 |  |  | (1,269 | ) |  | (1,790 | ) |  | (504 | )
Benefits paid | (29,071 | ) |  | (28,301 | ) |  | (3,714 | ) |  | (3,904 | )
Participants’ contributions | — |  |  | — |  |  | 897 |  |  | 872 |
Foreign currency exchange rate changes | 2,542 |  |  | 986 |  |  | — |  |  | — |
Obligation at end of year | 635,243 |  |  | 672,372 |  |  | 36,505 |  |  | 49,177 |
Change in plan assets |  |  |  |  |  |  |
Fair value of plan assets at beginning of year | 633,261 |  |  | 509,877 |  |  | — |  |  | — |
Actual return on plan assets | 85,809 |  |  | 74,774 |  |  | — |  |  | — |
Employer contributions | 1,064 |  |  | 76,911 |  |  | 2,817 |  |  | 3,032 |
Participants’ contributions | — |  |  | — |  |  | 897 |  |  | 872 |
Benefits paid | (29,071 | ) |  | (28,301 | ) |  | (3,714 | ) |  | (3,904 | )
Fair value of plan assets at end of year | 691,063 |  |  | 633,261 |  |  | — |  |  | — |
Funded status | $ | 55,820 |  |  | $ | (39,111 | ) |  | $ | (36,505 | ) |  | $ | (49,177 | )
| Pension Benefits |  | Other Postretirement Benefits
| 2013 |  | 2012 |  | 2013 |  | 2012
| (Dollars in thousands)
Amounts recognized in the consolidated balance sheets |  |  |  |  |  |  |
Non-current assets | $ | 116,888 |  |  | $ | 25,548 |  |  | $ | — |  |  | $ | — |
Current liabilities | (1,241 | ) |  | (1,061 | ) |  | (3,291 | ) |  | (3,941 | )
Non-current liabilities | (59,827 | ) |  | (63,598 | ) |  | (33,214 | ) |  | (45,236 | )
Net amount recognized | $ | 55,820 |  |  | $ | (39,111 | ) |  | $ | (36,505 | ) |  | $ | (49,177 | )
Amounts recognized in accumulated other comprehensive loss (income) |  |  |  |  |  |  |
Net actuarial loss (gain) | $ | 75,539 |  |  | $ | 175,763 |  |  | $ | (5,124 | ) |  | $ | 4,994 |
Prior service cost (credit) | 3,578 |  |  | 3,843 |  |  | (14,682 | ) |  | (15,576 | )
Net amount recognized | $ | 79,117 |  |  | $ | 179,606 |  |  | $ | (19,806 | ) |  | $ | (10,582 | )
| Pension Benefits |  | Other Postretirement Benefits
| (Dollars in thousands)
Items to be recognized in 2014 as a component of net periodic cost |  |  |
Net actuarial loss (gain) | $ | 826 |  |  | $ | (330 | )
Prior service cost (credit) | 1,189 |  |  | (2,854 | )
Net periodic cost (credit) to be recorded in 2014 | $ | 2,015 |  |  | $ | (3,184 | )
Pension plans with projected benefit obligations in excess of plan assets at December 31, 2013 consisted entirely of our international pension benefit plans which are not funded. For pension plans with projected benefit obligations in excess of plan assets at December 31, 2012, the projected benefit obligation and fair value of plan assets were $204.3 million and $139.6 million, respectively. The projected benefit obligation for our international pension benefit plans was $61.1 million and $57.2 million at December 31, 2013 and 2012, respectively. The accumulated benefit obligation for all pension benefit plans at December 31, 2013 and 2012 was $606.1 million and $638.0 million, respectively. Pension plans with accumulated benefit obligations in excess of plan assets at December 31, 2013 consisted entirely of our international pension benefit plans which are not funded. For pension plans with accumulated benefit obligations in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets at December 31, 2012 were $204.3 million, $193.6 million and $139.6 million, respectively. The accumulated benefit obligation for our international pension benefit plans was $56.5 million and $52.6 million at December 31, 2013 and 2012, respectively. The benefits expected to be paid from our pension and other postretirement benefit plans, which reflect future years of service and the Medicare subsidy expected to be received, are as follows (dollars in thousands):
| Pension Benefits |  | Other Postretirement Benefits
2014 | $ | 30,138 |  |  | $ | 3,291 |
2015 | 31,690 |  |  | 3,194 |
2016 | 33,299 |  |  | 2,827 |
2017 | 34,969 |  |  | 2,838 |
2018 | 36,663 |  |  | 2,726 |
2019 — 2023 | 203,677 |  |  | 12,436 |
| $ | 370,436 |  |  | $ | 27,312 |
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine the benefit obligations at December 31:
| 2013 |  | 2012
Discount rate | 4.9 | % |  | 4.1 | %
Expected return on plan assets | 8.5 | % |  | 8.5 | %
Rate of compensation increase | 3.0 | % |  | 3.1 | %
Health care cost trend rate: |  |  |
Assumed for next year | 7.2 | % |  | 7.2 | %
Ultimate rate | 4.9 | % |  | 4.5 | %
Year that the ultimate rate is reached | 2055 |  |  | 2046 |
Our expected return on plan assets is determined by current and expected asset allocation of plan assets, estimates of future long-term returns on those types of plan assets and historical long-term investment performance. Our international pension benefit plans used a discount rate of 3.7 percent and 3.6 percent as of December 31, 2013 and 2012, respectively, and a rate of compensation increase of 3.5 percent to determine the benefit obligation at December 31, 2013 and 2012. The components of the net periodic benefit cost for each of the years ended December 31 were as follows:
| Pension Benefits |  | Other Postretirement Benefits
| 2013 |  | 2012 |  | 2011 |  | 2013 |  | 2012 |  | 2011
| (Dollars in thousands)
Service cost | $ | 15,834 |  |  | $ | 14,788 |  |  | $ | 13,857 |  |  | $ | 682 |  |  | $ | 830 |  |  | $ | 862 |
Interest cost | 26,791 |  |  | 27,363 |  |  | 28,519 |  |  | 1,605 |  |  | 2,051 |  |  | 2,441 |
Expected return on plan assets | (52,480 | ) |  | (46,967 | ) |  | (40,817 | ) |  | — |  |  | — |  |  | — |
Amortization of prior service cost (credit) | 1,786 |  |  | 1,797 |  |  | 2,042 |  |  | (2,684 | ) |  | (2,616 | ) |  | (2,582 | )
Amortization of actuarial losses (gains) | 12,556 |  |  | 12,168 |  |  | 8,171 |  |  | (234 | ) |  | 12 |  |  | 134 |
Net curtailment gain | — |  |  | (706 | ) |  | (449 | ) |  | — |  |  | — |  |  | — |
Net periodic benefit cost (credit) | $ | 4,487 |  |  | $ | 8,443 |  |  | $ | 11,323 |  |  | $ | (631 | ) |  | $ | 277 |  |  | $ | 855 |
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine net periodic benefit cost for the years ended December 31:
| 2013 |  | 2012 |  | 2011
Discount rate | 4.1 | % |  | 4.6 | % |  | 5.4 | %
Expected return on plan assets | 8.5 | % |  | 8.5 | % |  | 8.5 | %
Rate of compensation increase | 3.1 | % |  | 3.1 | % |  | 3.2 | %
Health care cost trend rate | 7.2 | % |  | 7.8 | % |  | 8.0 | %
Our international pension benefit plans used a discount rate of 3.6 percent, 4.9 percent and 5.5 percent for the years ended December 31, 2013, 2012 and 2011, respectively. Our international pension benefit plans used a rate of compensation increase of 3.5 percent for each of the years ended December 31, 2013, 2012 and 2011. The assumed health care cost trend rates affect the amounts reported for our health care plans. A one percentage point change in the assumed health care cost trend rates would have the following effects:
| 1-Percentage Point Increase |  | 1-Percentage Point Decrease
| (Dollars in thousands)
Effect on service and interest cost | $ | 77 |  |  | $ | (68 | )
Effect on postretirement benefit obligation | 945 |  |  | (851 | )
M ULTIEMPLOYER P ENSION P LANS We participate in four multiemployer pension plans which provide defined benefits to certain of our union employees. The aggregate amount contributed to these plans and charged to pension cost in 2013, 2012 and 2011 was $6.2 million, $6.4 million and $6.0 million, respectively. The risks of participating in multiemployer plans are different from the risks of single-employer plans in the following respects:
| a) | Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.
| b) | If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
| c) | If we cease to have an obligation to contribute to the multiemployer plan in which we had been a contributing employer, we may be required to pay to the plan an amount based on the underfunded status of the plan and on our historical participation in the plan prior to the cessation of our obligation to contribute. This amount is referred to as a withdrawal liability.
Based on the latest information available, we participate in two multiemployer plans with a funded status less than 65 percent. Further information on these multiemployer plans for the years ended December 31, 2013, 2012 and 2011 is as follows:
Pension Fund |  | EIN/Pension Plan Number |  | Pension Protection Act Zone Status |  | FIP / RP Status Pending / Implemented |  | Contributions |  | Surcharge Imposed
2013 |  | 2012 |  | 2013 |  | 2012 |  | 2011 |
|  |  |  |  |  |  |  |  |  | (Dollars in thousands) |  |
Central States, Southeast & Southwest Areas Pension Fund (1) |  | 36-6044243/001 |  | Red |  | Red |  | Implemented |  | $ | 1,752 |  |  | $ | 1,834 |  |  | $ | 1,724 |  |  | No
United Food & Commercial Workers — Local 1 Pension Fund (2) |  | 16-6144007/001 |  | Red |  | Red |  | Implemented |  | 123 |  |  | 120 |  |  | 107 |  |  | No
All Other |  |  |  |  |  |  |  |  |  | 4,287 |  |  | 4,444 |  |  | 4,196 |  |  |
Total Contributions |  |  |  |  |  |  |  |  |  | $ | 6,162 |  |  | $ | 6,398 |  |  | $ | 6,027 |  |  |
______________________
(1) | The applicable collective bargaining agreements related to this pension fund expire between January 31, 2014 and April 30, 2016.
(2) | The collective bargaining agreement related to this pension fund expires on December 31, 2014.
The “EIN/Pension Plan Number” column provides the Employer Identification Number and the three digit plan number assigned to a plan by the Internal Revenue Service. The most recent Pension Protection Act Zone Status available for 2013 and 2012 is for plan years that ended in each of those years. The zone status is based on information provided to us and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone has been determined to be in “critical status,” based on criteria established under the Internal Revenue Code of 1986, as amended (the “Code”), and is generally less than 65 percent funded. The “FIP/RP Status Pending/Implemented” column indicates whether a rehabilitation plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the 2013 plan year. The “Surcharge Imposed” column indicates whether our contribution rate for 2013 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status” in accordance with the requirements of the Code. The last column lists the expiration dates of the collective bargaining agreements under which we contribute to the plans. Our contributions to each of these respective plans were less than five percent of total contributions made by all employers to each of these respective plans, as reported by these plans for the year ended December 31, 2012, the most recent plan year available. We expect our contributions for the year ended December 31, 2014 to these plans to be at the same level as the year ended December 31, 2013. D EFINED C ONTRIBUTION P LANS We also sponsor defined contribution plans covering substantially all employees. Our contributions to these plans are based upon employee contributions and operating profitability. Contributions charged to expense for these plans for the years ended December 31, 2013, 2012 and 2011 were $7.8 million, $7.6 million and $8.0 million, respectively. P LAN A SSETS I NVESTMENT S TRATEGY Our investment strategy is based on an expectation that equity securities will outperform debt securities over the long term. Accordingly, the composition of our plan assets is broadly characterized as a 58 percent/42 percent allocation between equity and debt securities. This strategy utilizes indexed U.S. equity securities (which constitutes approximately 85 percent of equity securities), with a lesser allocation to indexed international equity securities, and indexed investment grade U.S. debt securities. We attempt to mitigate investment risk by regularly rebalancing between equity and debt securities as contributions and benefit payments are made. The weighted average asset allocation for our pension plans at December 31, 2013 and 2012 and target allocation for 2013 was as follows:
| Target Allocation |  | Actual Allocation
| 2013 |  | 2012
Equity securities—U.S. | 49 | % |  | 48 | % |  | 48 | %
Equity securities—International | 9 | % |  | 10 | % |  | 9 | %
Debt securities | 42 | % |  | 41 | % |  | 42 | %
Cash and cash equivalents | — |  |  | 1 | % |  | 1 | %
| 100 | % |  | 100 | % |  | 100 | %
F AIR V ALUE M EASUREMENTS Our plan assets are primarily invested in commingled funds holding equity and debt securities, which are valued using the Net Asset Value, or NAV, provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. Commingled funds are classified within Level 2 (as described in Note 9) of the fair value hierarchy because the NAV’s are not publicly available. Plan excess cash balances are invested in short term investment funds which include investments in cash, bank notes, corporate notes, government bills and various short-term debt instruments. These typically are commingled funds valued using one dollar for the NAV. These short term funds are also classified within Level 2 of the valuation hierarchy. The fair value of our plan assets by asset category consisted of the following at December 31:
| 2013 |  | 2012
| (Dollars in thousands)
Equity securities—U.S. | $ | 330,506 |  |  | $ | 302,169 |
Equity securities—International | 69,811 |  |  | 62,770 |
Debt securities | 286,422 |  |  | 264,158 |
Cash and cash equivalents | 4,324 |  |  | 4,164 |
| $ | 691,063 |  |  | $ | 633,261 |
C ONCENTRATIONS OF C REDIT R ISK As of December 31, 2013, approximately 99 percent of our plan assets were under management by a single investment management company in six individual commingled equity and debt index funds. Of these six funds, four funds held assets individually in excess of ten percent of our total plan assets. E XPECTED C ONTRIBUTIONS In 2012, we made voluntary contributions to our domestic pension benefit plans of $76.0 million. Based on current legislation, there are no significant minimum required contributions to our pension benefit plans in 2014. In addition, based on the current funded status of our domestic pension benefit plans we do not expect to make significant contributions to these plans in 2014. However, this estimate may change based on regulatory changes and actual plan asset returns.

X
- Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration