XML 29 R15.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Note 8 - Retirement Plans | 12 Months Ended
--- | ---
Dec. 31, 2016
Notes to Financial Statements |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 8. Retirement Plans We sponsor and contribute to defined benefit and defined contribution retirement plans. During 2016, our defined benefit pension plans were the Gray Television, Inc. Retirement Plan (the “Gray Pension Plan”) as well as two plans assumed (the “Assumed Plans”) when we acquired the related businesses in prior years, both of which were frozen plans. On December 31, 2016, the two Assumed Plans were merged into the Gray Pension Plan. Effective December 31, 2016, the Assumed Plans had combined plan assets of $5.8 million and combined projected benefit obligations of $8.3 million. Monthly plan benefits under the Gray Pension Plan are frozen and can no longer increase and no new participants can be added to the Gray Pension Plan. The Gray Pension Plan’s funding policy is consistent with the funding requirements of existing federal laws and regulations under the Employee Retirement Income Security Act of 1974. The measurement dates used to determine the benefit information for the Gray Pension Plan were December 31, 2016 and 2015, respectively. The following summarizes the Gray Pension Plan’s funded status and amounts recognized on our consolidated balance sheets at December 31, 2016 and 2015, respectively (dollars in thousands):
|  | December 31, |
|  | 2016 |  |  | 2015 |
Change in projected benefit obligation: |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year |  | $ | 103,199 |  |  | $ | 108,006 |
Service cost |  |  | - |  |  |  | 3,130 |
Interest cost |  |  | 4,398 |  |  |  | 4,159 |
Actuarial losses |  |  | 1,839 |  |  |  | 420 |
Benefits paid |  |  | (2,790 | ) |  |  | (1,683 | )
Effect of pension curtailment |  |  | - |  |  |  | (10,833 | )
Merger of the Assumed Plans |  |  | 8,330 |  |  |  | - |
Projected benefit obligation at end of year |  | $ | 114,976 |  |  | $ | 103,199 |
Change in plan assets: |  |  |  |  |  |  |  |
Fair value of pension plan assets at beginning of year |  | $ | 69,246 |  |  | $ | 66,813 |
Actual return on plan assets |  |  | 5,918 |  |  |  | (1,034 | )
Company contributions |  |  | 2,775 |  |  |  | 5,150 |
Benefits paid |  |  | (2,790 | ) |  |  | (1,683 | )
Merger of the Assumed Plans |  |  | 5,780 |  |  |  | - |
Fair value of pension plan assets at end of year |  |  | 80,929 |  |  |  | 69,246 |
Funded status of pension plan |  | $ | (34,047 | ) |  | $ | (33,953 | )
Amounts recognized in our balance sheets consist of: |  |  |  |  |  |  |  |
Accrued benefit cost |  | $ | (5,121 | ) |  | $ | (8,994 | )
Accumulated other comprehensive loss |  |  | (28,926 | ) |  |  | (24,959 | )
Net liability recognized |  | $ | (34,047 | ) |  | $ | (33,953 | )
The accumulated benefit obligation amounts of the Gray Pension Plan are frozen and were $115.0 million and $103.2 million at December 31, 2016 and 2015, respectively. The long-term rate of return on assets assumption was chosen from a best estimate range based upon the anticipated long-term returns for asset categories in which the Gray Pension Plan is invested. The estimated rate of increase in compensation levels used to calculate the net periodic benefit cost for the year ended December 31, 2015 applied only to the period prior to the Gray Pension Plan becoming frozen. This factor was not applicable after that time in the determination of the benefit obligation as of December 31, 2016 and 2015:
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |
Weighted-average assumptions used to determine net periodic benefit cost for the Gray pension plan: |  |  |  |  |  |  |  |
Discount rate |  |  | 4.31% |  |  |  | 4.00% |
Expected long-term rate of return on pension plan assets |  |  | 7.00% |  |  |  | 7.00% |
Estimated rate of increase in compensation levels |  |  | N/A |  |  |  | 5.63% |
|  | As of December 31, |
|  | 2016 |  |  | 2015 |
Weighted-average assumptions used to determine benefit obligations: |  |  |  |  |  |  |  |
Discount rate |  |  | 4.11% |  |  |  | 4.31% |
Pension expense is computed using the projected unit credit actuarial cost method. The net periodic pension cost for the Gray Pension Plan includes the following components (in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
Components of net periodic pension cost: |  |  |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | - |  |  | $ | 3,130 |  |  | $ | 5,162 |
Interest cost |  |  | 4,398 |  |  |  | 4,159 |  |  |  | 4,106 |
Expected return on plan assets |  |  | (4,836 | ) |  |  | (4,782 | ) |  |  | (4,200 | )
Recognized net actuarial loss |  |  | 406 |  |  |  | 1,580 |  |  |  | 969 |
Net periodic pension (benefit) cost |  | $ | (32 | ) |  | $ | 4,087 |  |  | $ | 6,037 |
For the Gray Pension Plan, the estimated future benefit payments are as follows (in thousands):
Years |  | Amount |
| 2017 |  |  | $ | 2,722 |
| 2018 |  |  |  | 2,933 |
| 2019 |  |  |  | 3,299 |
| 2020 |  |  |  | 3,790 |
| 2021 |  |  |  | 4,090 |
2022 | - | 2026 |  |  | 25,216 |
The Gray Pension Plan’s weighted-average asset allocations by asset category were as follows:
|  | As of December 31, |
|  | 2016 |  |  | 2015 |
Asset category: |  |  |  |  |  |  |  |
Insurance general account |  |  | 23% |  |  |  | 26% |
Cash management accounts |  |  | 6% |  |  |  | 2% |
Equity accounts |  |  | 39% |  |  |  | 54% |
Fixed income accounts |  |  | 28% |  |  |  | 14% |
Real estate accounts |  |  | 4% |  |  |  | 4% |
Total |  |  | 100% |  |  |  | 100% |
The investment objective is to achieve a consistent total rate of return (income, appreciation, and reinvested funds) that will equal or exceed the actuarial assumption with aversion to significant volatility. The following is the target asset allocation:
|  | Target Range |
Asset class: |  | Strategic Allocation |  |  | Lower Limit |  |  | Upper Limit |
Equities: |  |  |  |  |  |  |  |  |  |  |  |
Large cap value |  |  | 5% |  |  |  | 0% |  |  |  | 50% |
Large cap blend |  |  | 5% |  |  |  | 0% |  |  |  | 50% |
Large cap growth |  |  | 5% |  |  |  | 0% |  |  |  | 50% |
Mid cap blend |  |  | 15% |  |  |  | 0% |  |  |  | 40% |
Small cap core |  |  | 5% |  |  |  | 0% |  |  |  | 25% |
Foreign large blend |  |  | 10% |  |  |  | 0% |  |  |  | 40% |
Emerging markets |  |  | 10% |  |  |  | 0% |  |  |  | 25% |
Real estate |  |  | 5% |  |  |  | 0% |  |  |  | 20% |
Fixed Income: |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury inflation protected |  |  | 5% |  |  |  | 0% |  |  |  | 25% |
Intermediate term bond |  |  | 10% |  |  |  | 0% |  |  |  | 50% |
Long term government bond |  |  | 5% |  |  |  | 0% |  |  |  | 40% |
High yield bond |  |  | 10% |  |  |  | 0% |  |  |  | 25% |
Emerging markets bond |  |  | 10% |  |  |  | 0% |  |  |  | 20% |
Money market taxable |  |  | 0% |  |  |  | 0% |  |  |  | 100% |
Our equity portfolio contains securities of companies necessary to build a diversified portfolio, and that we believe are financially sound. Our fixed income portfolio contains obligations generally rated A or better with no maturity restrictions and an actively managed duration. The cash equivalents strategy uses securities of the highest credit quality. Fair Value of Gray Pension Plan Assets We calculate the fair value of the Gray Pension Plan’s assets based upon the observable and unobservable net asset value of its underlying investments. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized by the fair value hierarchy proscribed by Accounting Standards Codification Topic 820, described in Note 4 “Fair Value Measurement.” The following table presents the fair value of the Gray Pension Plan’s assets and classifies them by level within the fair value hierarchy as of December 31, 2016 and 2015, respectively (in thousands): Gray Pension Plan Fair Value Measurements
|  | As of December 31, 2016 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance general account |  | $ | - |  |  | $ | 18,357 |  |  | $ | - |  |  | $ | 18,357 |
Cash management accounts |  |  | 5,089 |  |  |  | - |  |  |  | - |  |  |  | 5,089 |
Equity accounts |  |  | 31,963 |  |  |  | - |  |  |  | - |  |  |  | 31,963 |
Fixed income accounts |  |  | 22,544 |  |  |  | - |  |  |  | - |  |  |  | 22,544 |
Real estate accounts |  |  | 2,976 |  |  |  | - |  |  |  | - |  |  |  | 2,976 |
Total |  | $ | 62,572 |  |  | $ | 18,357 |  |  | $ | - |  |  | $ | 80,929 |
|  | As of December 31, 2015 |
|  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance general account |  | $ | - |  |  | $ | 17,918 |  |  | $ | - |  |  | $ | 17,918 |
Cash management accounts |  |  | 1,273 |  |  |  | - |  |  |  | - |  |  |  | 1,273 |
Equity accounts |  |  | 37,621 |  |  |  | - |  |  |  | - |  |  |  | 37,621 |
Fixed income account |  |  | 9,924 |  |  |  | - |  |  |  | - |  |  |  | 9,924 |
Real estate accounts |  |  | 2,510 |  |  |  | - |  |  |  | - |  |  |  | 2,510 |
Total |  | $ | 51,328 |  |  | $ | 17,918 |  |  | $ | - |  |  | $ | 69,246 |
Expected Pension Contributions We expect to contribute a combined total of approximately $3.0 million to our frozen defined benefit pension plan during the year ending December 31, 2017. Capital Accumulation Plan The Gray Television, Inc. Capital Accumulation Plan (the “Capital Accumulation Plan”) is a defined contribution plan intended to meet the requirements of Section 401(k) of the Internal Revenue Code. Effective beginning on July 1, 2015, employer contributions under the Capital Accumulation Plan include matching cash contributions at a rate of 100% of the first 3% of each employee’s salary deferral, and 50% of the next 2% of each employee’s salary deferral. For the years ended December 31, 2016 and 2015, our matching cash contributions to our Capital Accumulation Plan were $8.8 million and $1.8 million, respectively. As of February 21, 2017, we estimate that our matching cash contributions to the Capital Accumulation Plan for year ending December 31, 2017 will be approximately $8.6 million. In addition, the Company, at its discretion, may make an additional profit sharing contribution, based on annual Company performance, to those employees who meet certain criteria. In the years ended December 31, 2016 and 2015, the Company has accrued discretionary contributions of $3.4 million and $1.6 million, respectively, as profit sharing contributions. Also during the years ended December 31, 2016, 2015 and 2014, we made other matching contributions of our Common Stock to the Capital Accumulation Plan as follows (dollars in thousands):
|  | Year Ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |
|  | Shares |  |  | Amount |  |  | Shares |  |  | Amount |  |  | Shares |  |  | Amount |
Matching contributions to the Capital Accumulation Plan |  |  | 2,571 |  |  | $ | 29 |  |  |  | 1,898 |  |  | $ | 26 |  |  |  | 2,341 |  |  | $ | 25 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65877416&loc=SL14450702-114947 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66047640&loc=d3e39622-114963 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration