Employee Benefit Plans

12 Months Ended

Dec. 31, 2012

Pension and Other Postretirement Benefit Expense [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Defined Benefit Pension and Other Postretirement Benefit Plans

The Company provides funded and unfunded non-contributory defined benefit pension plans covering certain of its salaried and hourly employees. Benefits are generally based on the employee's age and compensation. The Company funds the plans in an amount not less than the minimum statutory funding requirements or more than the maximum amount that can be deducted for U.S. federal income tax purposes.

The Company also currently provides certain postretirement medical and life insurance coverage for eligible employees. Generally, covered employees who terminate employment after meeting eligibility requirements are eligible for postretirement coverage for themselves and their dependents. The salaried employee postretirement benefit plans are contributory, with retiree contributions adjusted annually, and contain other cost-sharing features such as deductibles and coinsurance. The Company's current funding policy is to fund the cost of all postretirement benefits as they are paid.

Employees acquired with the ICG acquisition were brought over in their existing plan. Subsequently, the terms of the plan were amended to change vesting periods, coverage caps, and eligible ages, resulting in a reduction of the benefit obligation of $55.5 million.

Obligations and Funded Status.

Summaries of the changes in the benefit obligations, plan assets and funded status of the plans are as follows:

							Other Postretirement
	Pension Benefits						Benefits
	2012			2011			2012			2011
	(In thousands)
CHANGE IN BENEFIT OBLIGATIONS
Benefit obligations at January 1	$	333,951		$	297,707		$	45,129		$	39,633
Service cost	27,466			16,490			2,142			3,917
Interest cost	15,668			16,253			2,020			3,279
Plan amendments	—			(3,235		)	2,183			(55,542		)
Benefits paid	(23,624		)	(18,848		)	(4,244		)	(1,669		)
Curtailments	(687		)	—			(708		)	—
Acquisition of ICG	—			—			—			48,441
Other-primarily actuarial loss (gain)	38,120			25,584			2,804			7,070
Benefit obligations at December 31	$	390,894		$	333,951		$	49,326		$	45,129
CHANGE IN PLAN ASSETS
Value of plan assets at January 1	$	285,074		$	247,713		$	—		$	—
Actual return on plan assets	42,396			9,443			—			—
Employer contributions	19,028			46,766			4,244			1,669
Benefits paid	(23,624		)	(18,848		)	(4,244		)	(1,669		)
Value of plan assets at December 31	$	322,874		$	285,074		$	—		$	—
Accrued benefit cost	(68,020		)	(48,877		)	(49,326		)	(45,129		)
ITEMS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC BENEFIT COST
Prior service credit (cost)	$	1,890		$	1,736		$	45,938		$	62,920
Accumulated gain (loss)	(68,915		)	(68,302		)	(1,531		)	1,795
	$	(67,025	)	$	(66,566	)	$	44,407		$	64,715
BALANCE SHEET AMOUNTS
Current liability	$	(390	)	$	(633	)	$	(4,240	)	$	(2,820	)
Noncurrent liability	$	(67,630	)	$	(48,244	)	$	(45,086	)	$	(42,309	)
	$	(68,020	)	$	(48,877	)	$	(49,326	)	$	(45,129	)

Pension Benefits

The accumulated benefit obligation for all pension plans was $366.1 million and $314.7 million at December 31, 2012 and 2011, respectively. The accumulated benefit obligation differs from the benefit obligation in that it includes no assumption about future compensation levels.

The benefit obligation and the accumulated benefit obligation for the Company's unfunded pension plan were $10.6 million and $9.4 million, respectively, at December 31, 2012.

The prior service credit and net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2013 are $0.2 million and $16.2 million, respectively.

Other Postretirement Benefits

The prior service credit and net gain that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2013 is $11.0 million and $0.3 million, respectively.

Components of Net Periodic Benefit Cost. The following table details the components of pension benefit costs:

	Pension Benefits									Other Postretirement Benefits
Year Ended December 31,	2012			2011			2010			2012			2011			2010
	(In thousands)
Service cost	$	27,466		$	16,490		$	15,870		$	2,142		$	3,917		$	1,509
Interest cost	15,668			16,253			15,822			2,020			3,279			2,083
Curtailments	324			—			—			(4,049		)	—			—
Expected return on plan assets*	(22,030		)	(21,812		)	(19,392		)	—			—			—
Amortization of prior service cost (credit)	259			(189		)	173			(11,458		)	(2,364		)	(2,364		)
Amortization of other actuarial losses (gains)	14,666			8,748			7,130			(522		)	(3,100		)	(2,918		)
Net benefit cost	$	36,353		$	19,490		$	19,603		$	(11,867	)	$	1,732		$	(1,690	)
*The Company does not fund its other postretirement benefit obligations.

The differences generated from changes in assumed discount rates and returns on plan assets are amortized into earnings over a five-year period.

Assumptions. The following table provides the assumptions used to determine the actuarial present value of projected benefit obligations at December 31.

			Other
	Pension		Postretirement
	Benefits		Benefits
	2012	2011	2012	2011
Weighted average assumptions:
Discount rate	4.13%	4.91%	3.64%	4.52%
Rate of compensation increase	3.39%	3.39%	N/A	N/A

The following table provides the assumptions used to determine net periodic benefit cost for years ended December 31.

	Pension Benefits			Other Postretirement Benefits
	2012	2011	2010	2012	2011	2010
Weighted average assumptions:
Discount rate	4.91%	5.71%	5.97%	4.52%	5.23%	5.67%
Rate of compensation increase	3.39%	3.39%	3.39%	N/A	N/A	N/A
Expected return on plan assets	7.75%	8.50%	8.50%	N/A	N/A	N/A

The Company establishes the expected long-term rate of return at the beginning of each fiscal year based upon historical returns and projected returns on the underlying mix of invested assets. The Company utilizes modern portfolio theory modeling techniques in the development of its return assumptions. This technique projects rates of return that can be generated through various asset allocations that lie within the risk tolerance set forth by members of the Company's pension committee (the "Pension Committee"). The risk assessment provides a link between a pension's risk capacity, management's willingness to accept investment risk and the asset allocation process, which ultimately leads to the return generated by the invested assets.

The health care cost trend rate assumed for 2013 is 7.5% and is expected to reach an ultimate trend rate of 4.5% by 2028. A one-percentage-point increase in the health care cost trend rate would have increased the postretirement benefit obligation at December 31, 2012 by $1.0 million. A one-percentage-point decrease in the health care cost trend rate would have decreased the postretirement benefit obligation at December 31, 2012 by $0.8 million. The effect of these changes would have had an insignificant impact on the net periodic postretirement benefit costs.

Plan Assets

The Pension Committee is responsible for overseeing the investment of pension plan assets. The Pension Committee is responsible for determining and monitoring appropriate asset allocations and for selecting or replacing investment managers, trustees and custodians. The pension plan's current investment targets are 65% equity, 30% fixed income securities and 5% cash. The Pension Committee reviews the actual asset allocation in light of these targets on a periodic basis and rebalances among investments as necessary. The Pension Committee evaluates the performance of investment managers as compared to the performance of specified benchmarks and peers and monitors the investment managers to ensure adherence to their stated investment style and to the plan's investment guidelines.

The Company's pension plan assets at December 31, 2012 and 2011, respectively, are categorized below according to the fair value hierarchy as defined in Note 11, "Fair Value Measurements":

	Total				Level 1				Level 2				Level 3
	2012		2011		2012		2011		2012		2011		2012		2011
	(In thousands)
Equity Securities:(A)
U.S. small-cap	$	13,099	$	11,178	$	13,099	$	11,178	$	—	$	—	$	—	$	—
U.S. mid-cap	43,946		50,264		12,717		23,474		31,229		26,790		—		—
U.S. large-cap	102,922		91,561		48,536		44,820		54,386		46,741		—		—
Non-U.S.	27,251		22,509		—		—		27,251		22,509		—		—
Fixed income securities:
U.S. government securities(B)	24,202		13,454		23,483		12,738		719		716		—		—
Non-U.S. government securities(C)	3,681		2,968		—		—		3,681		2,968		—		—
U.S. government asset and mortgage backed securities(D)	781		800		—		—		781		800		—		—
Corporate fixed income(E)	14,016		14,004		—		—		14,016		14,004		—		—
State and local government securities(F)	9,903		18,416		—		—		9,903		18,416		—		—
Other fixed income(G)	61,765		51,470		—		—		61,765		51,470		—		—
Short-term investments(H)	20,894		8,029		—		—		20,894		8,029		—		—
Other investments(I)	414		421		—		—		414		421		—		—
Total	$	322,874	$	285,074	$	97,835	$	92,210	$	225,039	$	192,864	$	—	$	—

 (A) Equity securities includes investments in 1) common stock, 2) preferred stock and 3) mutual funds. Investments in common and preferred stocks are valued using quoted market prices multiplied by the number of shares owned. Investments in mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges.

(B) U.S. government securities includes agency and treasury debt. These investments are valued using dealer quotes in an active market.

(C) Non-U.S. government securities includes debt securities issued by foreign governments and are valued utilizing a price spread basis valuation technique with observable sources from investment dealers and research vendors.

(D) U.S. government asset and mortgage backed securities includes government-backed mortgage funds which are valued utilizing an income approach that includes various valuation techniques and sources such as discounted cash flows models, benchmark yields and securities, reported trades, issuer trades and/or other applicable data.

(E) Corporate fixed income is primarily comprised of corporate bonds and certain corporate asset-backed securities that are denominated in the U.S. dollar and are investment-grade securities. These investments are valued using dealer quotes.

(F) State and local government securities include different U.S. state and local municipal bonds and asset backed securities, these investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes, benchmark yields and securities, reported trades, issuer trades and/or other applicable data.

(G) Other fixed income investments are actively managed fixed income vehicles that are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.

(H) Short-term investments include governmental agency funds, government repurchase agreements, commingled funds, and pooled funds and mutual funds. Governmental agency funds are valued utilizing an option adjusted spread valuation technique and sources such as interest rate generation processes, benchmark yields and broker quotes. Investments in governmental repurchase agreements, commingled funds and pooled funds and mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.

(I) Other investments includes cash, forward contracts, derivative instruments, credit default swaps, interest rate swaps and mutual funds. Investments in interest rate swaps are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer trades and/or other applicable data. Forward contracts and derivative instruments are valued at their exchange listed price or broker quote in an active market. The mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges.

Cash Flows. The Company expects to make contributions of $0.9 million to the pension plans in 2013, which is impacted by theMoving Ahead for Progress in the 21st Century Act (MAP-21) enacted July 6, 2012. MAP-21 does not reduce the Company's obligations under the plan, but redistributes the timing of required payments by providing near term funding relief for sponsors under the Pension Protection Act.

The following represents expected future benefit payments from the plan, which reflect expected future service, as appropriate:

			Other
	Pension		Postretirement
	Benefits		Benefits
	(In thousands)
2013	$	21,275	$	3,987
2014	23,674		4,204
2015	24,210		4,430
2016	28,464		4,720
2017	32,124		4,893
Years 2018-2022	190,016		24,895
	$	319,763	$	47,129

Other Plans

The Company sponsors savings plans which were established to assist eligible employees provide for their future retirement needs. The Company's expense, representing its contributions to the plans, was $27.2 million, $25.9 million and $18.1 million for the years ended December 31, 2012, 2011 and 2010, respectively.