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Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2014
Changes in Benefit Obligations and Plan Assets as Well as Funded Status of Retirement Plans
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
 
2014
 
2013
 
2014
 
2013
 
(Dollars in thousands)
Change in benefit obligation
 
 
 
 
 
 
 
Obligation at beginning of year
$
635,243

 
$
672,372

 
$
36,505

 
$
49,177

Service cost
13,529

 
15,834

 
535

 
682

Interest cost
29,757

 
26,791

 
1,661

 
1,605

Actuarial losses (gains)
104,374

 
(54,746
)
 
1,438

 
(10,352
)
Liabilities assumed in acquisition
11,080

 
—

 
—

 
—

Plan amendments
—

 
1,521

 
(722
)
 
(1,790
)
Benefits paid
(30,079
)
 
(29,071
)
 
(2,893
)
 
(3,714
)
Participants’ contributions
—

 
—

 
904

 
897

Foreign currency exchange rate changes
(7,734
)
 
2,542

 
—

 
—

Obligation at end of year
756,170

 
635,243

 
37,428

 
36,505

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
691,063

 
633,261

 
—

 
—

Actual return on plan assets
83,120

 
85,809

 
—

 
—

Assets assumed in acquisition
9,631

 
—

 
—

 
—

Employer contributions
1,244

 
1,064

 
1,989

 
2,817

Participants’ contributions
—

 
—

 
904

 
897

Benefits paid
(30,079
)
 
(29,071
)
 
(2,893
)
 
(3,714
)
Fair value of plan assets at end of year
754,979

 
691,063

 
—

 
—

Funded status
$
(1,191
)
 
$
55,820

 
$
(37,428
)
 
$
(36,505
)
 
 
Pension Benefits
 
Other
Postretirement Benefits
 
2014
 
2013
 
2014
 
2013
 
(Dollars in thousands)
Amounts recognized in the consolidated
balance sheets
 
 
 
 
 
 
 
Non-current assets
$
76,199

 
$
116,888

 
$
—

 
$
—

Current liabilities
(1,298
)
 
(1,241
)
 
(3,094
)
 
(3,291
)
Non-current liabilities
(76,092
)
 
(59,827
)
 
(34,334
)
 
(33,214
)
Net amount recognized
$
(1,191
)
 
$
55,820

 
$
(37,428
)
 
$
(36,505
)
Amounts recognized in accumulated other
comprehensive loss (income)
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
152,480

 
$
75,539

 
$
(3,357
)
 
$
(5,124
)
Prior service cost (credit)
2,391

 
3,578

 
(12,534
)
 
(14,682
)
Net amount recognized
$
154,871

 
$
79,117

 
$
(15,891
)
 
$
(19,806
)
Items to be Recognized in 2015 as Component of Net Periodic Cost
 
Pension Benefits
 
Other
Postretirement
Benefits
 
(Dollars in thousands)
Items to be recognized in 2015 as a component
of net periodic cost
 
 
 
Net actuarial loss (gain)
$
7,354

 
$
(254
)
Prior service cost (credit)
1,028

 
(2,942
)
Net periodic cost (credit) to be recorded in 2015
$
8,382

 
$
(3,196
)
Benefits Expected to Be Paid from Pension and Other Postretirement Benefit Plans, Which Reflect Future Years of Services and Medicare Subsidy Expected to Be Received
The benefits expected to be paid from our pension and other postretirement benefit plans, which reflect future years of service, are as follows (dollars in thousands):
 
Pension
Benefits
 
Other
Postretirement
Benefits
2015
$
32,484

 
$
3,094

2016
33,858

 
2,872

2017
35,548

 
2,737

2018
37,011

 
2,660

2019
38,447

 
2,605

2020 — 2024
213,313

 
12,218

 
$
390,661

 
$
26,186
Components of Net Periodic Benefit Cost
The components of the net periodic benefit cost for each of the years ended December 31 were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
 
(Dollars in thousands)
Service cost
$
13,529

 
$
15,834

 
$
14,788

 
$
535

 
$
682

 
$
830

Interest cost
29,757

 
26,791

 
27,363

 
1,661

 
1,605

 
2,051

Expected return on plan assets
(57,550
)
 
(52,480
)
 
(46,967
)
 
—

 
—

 
—

Amortization of prior service cost
(credit)
1,187

 
1,786

 
1,797

 
(2,871
)
 
(2,684
)
 
(2,616
)
Amortization of actuarial losses
(gains)
774

 
12,556

 
12,168

 
(328
)
 
(234
)
 
12

Net curtailment gain
—

 
—

 
(706
)
 
—

 
—

 
—

Net periodic benefit (credit) cost
$
(12,303
)
 
$
4,487

 
$
8,443

 
$
(1,003
)
 
$
(631
)
 
$
277
Effect of a One Percentage Point Change in Assumed Health Care Cost Trend Rates
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
$
73

 
$
(65
)
Effect on postretirement benefit obligation
963

 
(864
)
Multiemployer Pension Plans
Further information on these multiemployer plans for the years ended December 31, 2014, 2013 and 2012 is as follows:
Pension Fund
 
EIN/Pension Plan
Number
 
Pension
Protection
Act Zone
Status
 
FIP / RP
Status
Pending /
Implemented
 
Contributions
 
Surcharge
Imposed
2014
 
2013
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
Central States, Southeast & Southwest Areas Pension Fund (1)
 
36-6044243/001
 
Red
 
Red
 
Implemented
 
$
1,806

 
$
1,752

 
$
1,834

 
No
United Food & Commercial
Workers — Local 1 Pension Fund (2)
 
16-6144007/001
 
Red
 
Red
 
Implemented
 
136

 
123

 
120

 
No
All Other
 
 
 
 
 
 
 
 
 
4,340

 
4,287

 
4,444

 
 
Total Contributions
 
 
 
 
 
 
 
 
 
$
6,282

 
$
6,162

 
$
6,398

 
 

______________________
(1) 
The applicable collective bargaining agreements related to this pension fund expire between January 31, 2015 and December 31, 2016.
(2) 
The collective bargaining agreement related to this pension fund expires on February 15, 2015.
Weighted Average Asset Allocation for Pension Plans and Target Allocation
The weighted average asset allocation for our pension plans at December 31, 2014 and 2013 and target allocation for 2014 was as follows:
 
Target
Allocation
 
Actual Allocation
 
2014
 
2013
Equity securities—U.S.
49
%
 
47
%
 
48
%
Equity securities—International
9
%
 
10
%
 
10
%
Debt securities
42
%
 
42
%
 
41
%
Cash and cash equivalents
—

 
1
%
 
1
%
 
100
%
 
100
%
 
100
%
Fair Value of Plan Assets by Asset Category
The fair value of our plan assets by asset category consisted of the following at December 31:
 
2014
 
2013
 
(Dollars in thousands)
Equity securities—U.S.
$
358,067

 
$
330,506

Equity securities—International
74,999

 
69,811

Debt securities
317,562

 
286,422

Cash and cash equivalents
4,351

 
4,324

 
$
754,979

 
$
691,063
Benefit Obligation  
Weighted Average Actuarial Assumptions
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine the benefit obligations at December 31:
 
2014
 
2013
Discount rate
4.1
%
 
4.9
%
Expected return on plan assets
8.5
%
 
8.5
%
Rate of compensation increase
3.0
%
 
3.0
%
Health care cost trend rate:
 
 
 
Assumed for next year
6.7
%
 
7.2
%
Ultimate rate
5.0
%
 
4.9
%
Year that the ultimate rate is reached
2058

 
2055
Benefit Costs  
Weighted Average Actuarial Assumptions
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:
 
 
2014
 
2013
 
2012
Discount rate
4.9
%
 
4.1
%
 
4.6
%
Expected return on plan assets
8.5
%
 
8.5
%
 
8.5
%
Rate of compensation increase
3.0
%
 
3.1
%
 
3.1
%
Health care cost trend rate
7.2
%
 
7.2
%
 
7.8
%