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Pensions and Other Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2014
Pensions and Other Employee Benefit Plans [Abstract]  
Reconciliation of Changes in Plans' Benefit Obligations and Fair Value of Assets

The following tables provide a reconciliation of the changes in the plans’ benefit obligations and fair value of assets for 2014 and 2013, and a statement of the funded status as of December 31, 2014 and 2013, respectively. We use a December 31 measurement date for the pension plans and other post-retirement benefits (in thousands).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Other Benefits

 

Year Ended December 31,

 

Year Ended December 31,

 

2014

 

2013

 

2014

 

2013

Reconciliation of benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

Obligation at beginning of period

$
40,242 

 

$
62,488 

 

$
1,517 

 

$
1,051 

Service cost

 
188 

 

 
311 

 

 
1 

 

 
2 

Interest cost

 
1,882 

 

 
1,843 

 

 
71 

 

 
65 

Participant contributions

 
21 

 

 
28 

 

 
58 

 

 
51 

Plan amendment

 

         —

 

 

         —

 

 

         —

 

 
230 

Actuarial loss (gain)

 
7,554 

 

 
(3,874)

 

 
145 

 

 
249 

Benefit payments

 
(1,715)

 

 
(1,868)

 

 
(169)

 

 
(147)

Curtailment and settlement

 

         —

 

 
(18,686)

 

 

         —

 

 
16 

Obligation at December 31,

 
48,172 

 

 
40,242 

 

 
1,623 

 

 
1,517 

Reconciliation of fair value of plan assets

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of period

 
24,628 

 

 
20,207 

 

 

         —

 

 

         —

Actual return on plan assets

 
1,464 

 

 
3,120 

 

 

         —

 

 

         —

Employer contributions

 
4,078 

 

 
3,955 

 

 
111 

 

 
96 

Participant contributions

 
21 

 

 
28 

 

 
58 

 

 
51 

Benefit payments

 
(1,715)

 

 
(1,467)

 

 
(169)

 

 
(147)

Transfer due to Sale

 

         —

 

 
(1,215)

 

 

         —

 

 

         —

Fair value of plan assets at December 31,

 
28,476 

 

 
24,628 

 

 

         —

 

 

         —

Funded status at end of period

$
(19,696)

 

$
(15,614)

 

$
(1,623)

 

$
(1,517)

 

Pre-Tax Amounts Recognized in Accumulated Other Comprehensive Loss

The pre-tax amounts recognized in accumulated other comprehensive loss as of December 31, 2014 and 2013 consist of (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Other Benefits

 

December 31,

 

December 31,

 

2014

 

2013

 

2014

 

2013

Actuarial loss

$
(17,200)

 

$
(9,636)

 

$
(550)

 

$
(444)

Amendments-prior service (cost) credit

 

         —

 

 

         —

 

 
(80)

 

 
(89)

 

$
(17,200)

 

$
(9,636)

 

$
(630)

 

$
(533)

 

Amounts Recognized in Other Comprehensive Loss

The amounts recognized in other comprehensive loss during the years ended December 31, 2014, 2013 and 2012 consist of (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

2014

 

2013

 

2012

 

Pension Benefits

 

Other Benefits

 

Pension Benefits

 

Other Benefits

 

Pension Benefits

 

Other Benefits

Actuarial (loss) gain during the period

$
(7,972)

 

$
(145)

 

$
5,491 

 

$
(249)

 

$
498 

 

$
967 

Prior service cost (credit) during the period

 

         —

 

 

         —

 

 

         —

 

 
(230)

 

 
1,497 

 

 

         —

Amortization of actuarial loss (gain)

 
408 

 

 
39 

 

 
5,947 

 

 
44 

 

 
9,773 

 

 
(279)

Amortization of prior service cost (credit)

 

         —

 

 
9 

 

 

         —

 

 
9 

 

 
(2,266)

 

 
(611)

Recognition due to curtailment

 

         —

 

 

         —

 

 
2,624 

 

 
63 

 

 
(1,497)

 

 

         —

Amount reclassified to statement of operations upon disposition of SS/L

 

         —

 

 

         —

 

 

         —

 

 

         —

 

 
135,618 

 

 
(12,241)

Total recognized in other comprehensive income (loss)

$
(7,564)

 

$
(97)

 

$
14,062 

 

$
(363)

 

$
143,623 

 

$
(12,164)

 

Amounts Recognized in the Balance Sheets

Amounts recognized in the balance sheet consist of (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Other Benefits

 

December 31,

 

December 31,

 

2014

 

2013

 

2014

 

2013

Current Liabilities

$

         —

 

$

         —

 

$
526 

 

$
128 

Long-Term Liabilities

 
19,696 

 

 
15,614 

 

 
1,097 

 

 
1,389 

 

$
19,696 

 

$
15,614 

 

$
1,623 

 

$
1,517 

 

Components of Net Periodic Cost

The following table provides the components of net periodic cost included in income from continuing operations for the plans for the years ended December 31, 2014, 2013 and 2012 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Other Benefits

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

2014

 

2013

 

2012

 

2014

 

2013

 

2012

Service cost

$
188 

 

$
311 

 

$
824 

 

$
1 

 

$
2 

 

$
6 

Interest cost

 
1,882 

 

 
1,843 

 

 
2,523 

 

 
71 

 

 
65 

 

 
45 

Expected return on plan assets

 
(1,882)

 

 
(1,503)

 

 
(1,435)

 

 

         —

 

 

         —

 

 

         —

Recognition due to curtailment

 

         —

 

 
1,671 

 

 
(1,497)

 

 

         —

 

 
78 

 

 

         —

Amortization of prior service cost (credit)

 

         —

 

 

         —

 

 

         —

 

 
9 

 

 
9 

 

 
(24)

Amortization of net actuarial loss

 
408 

 

 
5,947 

 

 
748 

 

 
39 

 

 
44 

 

 
12 

Net periodic cost

$
596 

 

$
8,269 

 

$
1,163 

 

$
120 

 

$
198 

 

$
39 

 

Assumptions Used to Determine Net Periodic Cost

Assumptions used to determine net periodic cost:

 

 

 

 

 

 

 

 

For the Year Ended December 31,

 

2014

 

2013

 

2012

Discount rate

4.75%

 

4.00%

 

4.75%

Expected return on plan assets

7.25%

 

7.25%

 

8.00%

Rate of compensation increase

4.25%

 

4.25%

 

4.25%

 

Assumptions Used to Determine Benefit Obligation

Assumptions used to determine the benefit obligation:

 

 

 

 

 

 

 

 

December 31,

 

2014

 

2013

 

2012

Discount rate

4.00%

 

4.75%

 

4.00%

Rate of compensation increase

4.25%

 

4.25%

 

4.25%

 

Pension Plans' Actual and Targeted Asset Allocations

The pension plans’ actual and targeted asset allocations are as follows:

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

 

Actual Allocation

 

Target Allocation

 

2014

 

2013

 

Target

 

Target Range

Equities

58% 

 
58% 

 
60% 

 

50-70%

Fixed Income

42% 

 
42% 

 
40% 

 

30-50%

 
100% 

 
100% 

 
100% 

 
100% 

 

Target Asset Allocations and Ranges of Post Retirement Benefit Plan

The target and target range levels can be further defined as follows:

 

 

 

 

 

 

 

Target Allocation

 

Target

 

Target Range

U.S. Large Cap Equities

25% 

 

15-40%

U.S. Small Cap Equities

5% 

 

0-10%

Global Equities

10% 

 

5-20%

Non-U.S. Equities

10% 

 

5-20%

Alternative Equity Investments

10% 

 

0-20%

Total Equities

60% 

 

50-70%

 

 

 

 

Fixed Income

30% 

 

20-40%

Alternative Fixed Income Investments

10% 

 

0-20%

Total Fixed Income

40% 

 

30-50%

 

 

 

 

Total Target Allocation

100% 

 
100% 

 

Fair Values of Pension Plan Assets

The Company’s pension plan assets are mainly held in commingled employee benefit fund trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements

 

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

 

 

 

In Active Markets

 

Significant

 

Significant

 

 

 

 

 

 

For Identical

 

Observable

 

Unobservable

 

 

 

 

 

 

Assets

 

Inputs

 

Inputs

Asset Category

 

Total

 

Percentage

 

Level 1

 

Level 2

 

Level 3

 

 

(In thousands)

At December 31, 2014:

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

U.S. large-cap(1) 

 

$       7,031 

 
25% 

 

 

 

$            7,031 

 

 

U.S. small-cap(2) 

 
2,004 

 
7% 

 

 

 
2,004 

 

 

Global (3)          

 
2,288 

 
8% 

 

 

 
2,288 

 

 

Non-U.S.(4) 

 
3,494 

 
12% 

 

 

 
3,494 

 

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

Equity long/short fund(5) 

 
801 

 
3% 

 

 

 

 

 

$                  801 

Real Estate Securities(6) 

 
598 

 
2% 

 

 

 
598 

 

 

Private equity fund(7) 

 
249 

 
1% 

 

 

 

 

 
249 

 

 
16,465 

 
58% 

 

         —

 
15,415 

 
1,050 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

Commingled funds(8) 

 
10,273 

 
36% 

 

 

 
10,273 

 

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

Distressed opportunity limited partnership(9) 

 
368 

 
1% 

 

 

 

 

 
368 

Multi-strategy limited partnerships(10) 

 
1,370 

 
5% 

 

 

 

 

 
1,370 

 

 
12,011 

 
42% 

 

         —

 
10,273 

 
1,738 

 

 

 

 

 

 

 

 

 

 

 

 

 

$     28,476 

 
100% 

 

         —

 

$          25,688 

 

$               2,788 

At December 31, 2013:

 

 

 

 

 

 

 

 

 

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

U.S. large-cap(1) 

 

$       5,965 

 
24% 

 

 

 

$            5,965 

 

 

U.S. small-cap(2) 

 
1,688 

 
7% 

 

 

 
1,688 

 

 

Global (3)          

 
1,956 

 
8% 

 

 

 
1,956 

 

 

Non-U.S.(4) 

 
3,103 

 
13% 

 

 

 
3,103 

 

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

Equity long/short fund(5) 

 
842 

 
3% 

 

 

 

 

 

$                  842 

Real Estate Securities(6) 

 
482 

 
2% 

 

 

 
482 

 

 

Private equity fund(7) 

 
287 

 
1% 

 

 

 

 

 
287 

 

 
14,323 

 
58% 

 

         —

 
13,194 

 
1,129 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

Commingled funds(8) 

 
8,650 

 
35% 

 

 

 
8,650 

 

 

Alternative investments:

 

 

 

 

 

 

 

 

 

 

Distressed opportunity limited
partnership(9) 

 
364 

 
2% 

 

 

 

 

 
364 

Multi-strategy limited partnerships(10) 

 
1,291 

 
5% 

 

 

 

 

 
1,291 

 

 
10,305 

 
42% 

 

         —

 
8,650 

 
1,655 

 

 

 

 

 

 

 

 

 

 

 

 

 

$     24,628 

 
100% 

 

         —

 

$          21,844 

 

$               2,784 

 

(1)    Investments in common stocks that rank among the largest 1,000 companies in the U.S. stock market.

 

(2)    Investments in common stocks that rank among the small capitalization stocks in the U.S. stock market.

 

(3)Investments in common stocks across the world without being limited by national borders or to specific regions.

 

(4)    Investments in common stocks of companies from developed and emerging countries outside the United States.

 

(5)    Investments primarily in long and short positions in equity securities of U.S. and non-U.S. companies. The fund has semi-annual tender offer redemption periods on June 30 and December 31 and is reported on a one month lag. 

 

(6)    As of December 31, 2014, the pension plan was invested in real estate through a fund of funds which invests in global public real estate securities (REITs).

 

(7)    Fund invests in portfolios of secondary interest in established venture capital, buyout, mezzanine and special situation funds on a global basis. Fund is valued on a quarterly lag with adjustment for subsequent cash activity.

 

(8)Investments in bonds representing many sectors of the broad bond market with both short-term and intermediate-term maturities.

 

(9)    Investments mainly in discounted debt securities, bank loans, trade claims and other debt and equity securities of financially troubled companies. This partnership has semi-annual withdrawal rights on June 30 and December 31. This fund is reported on a one month lag.

 

(10)

Investments mainly in partnerships that have multi-strategy investment programs and do not rely on a single investment model. One partnership has quarterly liquidation rights with notice of 65 days while the second partnership has monthly liquidation rights with notice of 33 days. Both funds are reported on a one month lag.
Changes in Fair Value of Pension Plan Assets

Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the years ended December 31, 2014 and 2013 is presented below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements Using Significant
Unobservable Inputs (Level 3)

 

Private
Equity
Fund

 

 

Equity
Long/Short
Fund

 

 

Distressed
Opportunity
Ltd. Partnership

 

 

Other
Limited
Partnership

 

 

 Multi
Strategy
Funds

 

 

Total  

 

(In thousands)

Balance at January 1, 2013

$          283

 

 

$          682

 

 

$                299

 

 

$             33

 

 

$       1,191

 

 

$       2,488

Unrealized gain (loss)

62 

 

 
160 

 

 
65 

 

 
(10)

 

 
100 

 

 
377 

Purchases

9 

 

 

       —

 

 

            —

 

 

       —

 

 

       —

 

 
9 

Sales

(67)

 

 

       —

 

 

            —

 

 
(23)

 

 

       —

 

 
(90)

Balance at December 31, 2013
287 

 

 
842 

 

 
364 

 

 

       —

 

 
1,291 

 

 
2,784 

Unrealized gain (loss)

12 

 

 
(41)

 

 
4 

 

 

       —

 

 
79 

 

 
54 

Realized gain

       —

 

 

       —

 

 

            —

 

 
16 

 

 

       —

 

 
16 

Sales

(50)

 

 

       —

 

 

            —

 

 
(16)

 

 

       —

 

 
(66)

Balance at December 31, 2014

$          249

 

 

$          801

 

 

$                368

 

 

       —

 

 

$       1,370

 

 

$       2,788

 

Benefit Payments Expected to be Paid

The following benefit payments, which reflect future services, as appropriate, are expected to be paid (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension
Benefits

 

Other
Benefits

 

2015

$
1,698 

 

$
535 

 

2016

 
1,714 

 

 
158 

 

2017

 
1,710 

 

 
96 

 

2018

 
1,901 

 

 
93 

 

2019

 
1,896 

 

 
129 

 

2020 to 2024

 
11,702 

 

 
467