XML 60 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Employee Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [Abstract]  
Changes In Benefit Obligations And Plan Assets
The following table presents the changes in benefit obligations and plan assets for pension benefits and other postretirement benefits, as well as the end-of-period accumulated benefit obligation for the years ended December 31, 2016 and 2017 (in thousands):
 
 
Pension Benefits
 
Other Postretirement Benefits
 
 
2016
 
2017
 
2016
 
2017
Change in benefit obligations:
 
 
 
 
 
 
 
 
Benefit obligations at beginning of year
 
$
209,591

 
$
225,970

 
$
11,314

 
$
13,011

Service cost
 
18,179

 
20,497

 
235

 
243

Interest cost
 
7,950

 
9,865

 
489

 
475

Plan participants’ contributions
 
—

 
—

 
217

 
280

Actuarial loss (gain)
 
1,050

 
59,686

 
1,481

 
(535
)
Benefits paid
 
(10,053
)
 
(11,484
)
 
(725
)
 
(714
)
Settlement payments
 
(747
)
 
(6,678
)
 
—

 
—

Benefit obligations at end of year
 
225,970

 
297,856

 
13,011

 
12,760

Change in plan assets:
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
142,742

 
166,906

 
—

 
—

Employer contributions
 
25,972

 
26,533

 
508

 
434

Plan participants’ contributions
 
—

 
—

 
217

 
280

Actual return on plan assets
 
8,992

 
23,409

 
—

 
—

Benefits paid
 
(10,053
)
 
(11,484
)
 
(725
)
 
(714
)
Settlement payments
 
(747
)
 
(6,678
)
 
—

 
—

Fair value of plan assets at end of year
 
166,906

 
198,686

 
—

 
—

Funded status at end of year
 
$
(59,064
)
 
$
(99,170
)
 
$
(13,011
)
 
$
(12,760
)
Accumulated benefit obligations
 
$
160,642

 
$
206,480

 
 
 
 
Amounts Recognized In Consolidated Balance Sheets
Amounts recognized in the consolidated balance sheets included in these financial statements were as follows (in thousands):
 
 
Pension Benefits
 
Other Postretirement Benefits
 
 
2016
 
2017
 
2016
 
2017
Amounts recognized in consolidated balance sheets:
 
 
 
 
 
 
 
 
Current accrued benefit cost
 
$
—

 
$
—

 
$
614

 
$
625

Long-term pension and benefits
 
59,064

 
99,170

 
12,397

 
12,135

 
 
59,064

 
99,170

 
13,011

 
12,760

Accumulated other comprehensive loss:
 
 
 
 
 
 
 
 
Net actuarial loss
 
(62,013
)
 
(100,474
)
 
(7,881
)
 
(6,597
)
Prior service credit
 
3,429

 
3,248

 
—

 
—

 
 
(58,584
)
 
(97,226
)
 
(7,881
)
 
(6,597
)
Net amount of liabilities and accumulated other comprehensive loss recognized in consolidated balance sheets
 
$
480

 
$
1,944

 
$
5,130

 
$
6,163
Consolidated Net Periodic Benefit Costs
Net periodic benefit expense for the years ended December 31, 2015, 2016 and 2017 was as follows (in thousands): 
 
 
Pension Benefits
 
Other  Postretirement Benefits
 
 
2015
 
2016
 
2017
 
2015
 
2016
 
2017
Components of net periodic pension and postretirement benefit expense:
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
18,890

 
$
18,179

 
$
20,497

 
$
243

 
$
235

 
$
243

Interest cost(1)
 
7,754

 
7,950

 
9,865

 
438

 
489

 
475

Expected return on plan assets(1)
 
(8,037
)
 
(8,913
)
 
(10,266
)
 
—

 
—

 
—

Amortization of prior service credit(1)
 
—

 
(181
)
 
(181
)
 
(3,713
)
 
(3,335
)
 
—

Amortization of actuarial loss(1)
 
6,306

 
4,645

 
5,622

 
885

 
880

 
749

Settlement cost(1)
 
—

 
202

 
2,460

 
—

 
—

 
—

Net periodic expense (credit)
 
$
24,913

 
$
21,882

 
$
27,997

 
$
(2,147
)
 
$
(1,731
)
 
$
1,467



(1) Upon adoption of ASU 2017-07 Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost on January 1, 2017, these components of net periodic benefit expense (credit) are reported on the consolidated statements of income as other (income) expense. See Note 2 – Summary of Significant Accounting Policies - New Accounting Pronouncements for further details about this accounting change.
Other Changes In Plan Assets And Benefit Obligations Recognized In Other Comprehensive Loss
Changes in plan assets and benefit obligations recognized in other comprehensive loss during 2015, 2016 and 2017 were as follows (in thousands):
 
 
Pension Benefits
 
Other Postretirement Benefits
 
 
2015
 
2016
 
2017
 
2015
 
2016
 
2017
Beginning balance
 
$
(63,257
)
 
$
(62,279
)
 
$
(58,584
)
 
$
(1,696
)
 
$
(3,945
)
 
$
(7,881
)
Net actuarial gain (loss)
 
(8,938
)
 
(971
)
 
(46,543
)
 
579

 
(1,481
)
 
535

Plan amendment
 
3,610

 
—

 
—

 
—

 
—

 
—

Amortization of prior service credit
 
—

 
(181
)
 
(181
)
 
(3,713
)
 
(3,335
)
 
—

Amortization of actuarial loss
 
6,306

 
4,645

 
5,622

 
885

 
880

 
749

Settlement cost
 
—

 
202

 
2,460

 
—

 
—

 
—

Amount recognized in other comprehensive loss
 
978

 
3,695

 
(38,642
)
 
(2,249
)
 
(3,936
)
 
1,284

Ending balance
 
$
(62,279
)
 
$
(58,584
)
 
$
(97,226
)
 
$
(3,945
)
 
$
(7,881
)
 
$
(6,597
)
Weighted-Average Rate Assumptions Used

The weighted-average rate assumptions used to determine benefit obligations were as follows:
 
 
 
December 31,
 
 
2016
 
2017
Discount rate—Salaried plan
 
4.21%
 
3.70%
Discount rate—USW plan
 
4.08%
 
3.54%
Discount rate—IUOE plan
 
4.41%
 
3.79%
Discount rate—Other Postretirement Benefits
 
3.85%
 
3.43%
Rate of compensation increase—Salaried plan(1)
 
4% - 11%
 
4% - 11%
Rate of compensation increase—USW plan
 
3.50%
 
3.50%
Rate of compensation increase—IUOE plan
 
5.00%
 
5.00%

(1) The rate of compensation increase assumption for the Salaried plan in 2016 and 2017 is calculated by 10-year age groupings beginning with ages 20-29 at 11% dropping to 4% by ages 70 and above.


The weighted-average rate assumptions used to determine net pension and other postretirement benefit expense were as follows:
 
 
 
For the Year Ended December 31,
 
 
2015
 
2016
 
2017
Discount rate—Salaried plan
 
3.91%
 
3.95%
 
4.21%
Discount rate—USW plan
 
3.56%
 
3.82%
 
4.04%
Discount rate—IUOE plan
 
3.93%
 
3.78%
 
4.41%
Discount rate—Other Postretirement Benefits
 
3.66%
 
4.00%
 
3.85%
Rate of compensation increase—Salaried plan(1)
 
5.50%
 
4% - 11%
 
4% - 11%
Rate of compensation increase—USW plan
 
3.50%
 
3.50%
 
3.50%
Rate of compensation increase—IUOE plan
 
5.00%
 
5.00%
 
5.00%
Expected rate of return on plan assets—Salaried plan
 
6.00%
 
6.00%
 
6.00%
Expected rate of return on plan assets—USW plan
 
6.00%
 
6.00%
 
6.00%
Expected rate of return on plan assets—IUOE plan
 
6.00%
 
6.00%
 
6.00%


(1) The rate of compensation increase assumption for the Salaried plan is calculated by 10-year age groupings beginning with ages 20-29 at 11% dropping to 4% by ages 70 and above.
Schedule of Allocation of Plan Assets
The target allocation and actual weighted-average asset allocation percentages at December 31, 2016 and 2017 were as follows:
 
 
2016
 
2017
 
 
Actual
 
Target
 
Actual
 
Target
Equity securities
 
30%
 
30%
 
37%
 
30%
Fixed income securities
 
67%
 
67%
 
60%
 
67%
Other
 
3%
 
3%
 
3%
 
3%
 
 
 
 
 
 
 
 
 
Fair Value, Assets Measured on Recurring Basis
The fair values of the pension plan assets at December 31, 2016 were as follows (in thousands):
Asset Category
 
Total
 
Quoted Prices in Active  Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Domestic Equity Securities(a):
 
 
 
 
 
 
 
 
Small-cap fund
 
$
3,465

 
$
3,465

 
$
—

 
$
—

Mid-cap fund
 
3,472

 
3,472

 
—

 
—

Large-cap fund
 
26,323

 
26,323

 
—

 
—

International equity fund
 
16,797

 
16,797

 
—

 
—

Fixed Income Securities(a):
 
 
 
 
 
 
 
 
Short-term bond funds
 
4,414

 
4,414

 
—

 
—

Intermediate-term bond funds
 
23,629

 
23,629

 
—

 
—

Long-term investment grade bond funds
 
83,240

 
83,240

 
—

 
—

Other:
 
 
 
 
 
 
 
 
Short-term investment funds
 
5,346

 
5,346

 
—

 
—

Group annuity contract
 
220

 
—

 
—

 
220

Fair value of plan assets
 
$
166,906

 
$
166,686

 
$
—

 
$
220

 
 
 
 
 
 
 
 
 
(a) We hold equity and fixed income securities through investments in mutual funds, which are dedicated to each category as indicated.

The fair values of the pension plan assets at December 31, 2017 were as follows (in thousands):
Asset Category
 
Total
 
Quoted Prices in Active  Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Domestic Equity Securities(a):
 
 
 
 
 
 
 
 
Small-cap fund
 
$
5,122

 
$
5,122

 
$
—

 
$
—

Mid-cap fund
 
5,132

 
5,132

 
—

 
—

Large-cap funds
 
38,678

 
38,678

 
—

 
—

International equity fund
 
24,284

 
24,284

 
—

 
—

Fixed Income Securities(a):
 
 
 
 
 
 
 
 
Short-term bond funds
 
5,110

 
5,110

 
—

 
—

Intermediate-term bond funds
 
25,875

 
25,875

 
—

 
—

Long-term investment grade bond funds
 
88,563

 
88,563

 
—

 
—

Other:
 
 
 
 
 
 
 
 
Short-term investment fund
 
5,722

 
5,722

 
—

 
—

Group annuity contract
 
200

 
—

 
—

 
200

Fair value of plan assets
 
$
198,686

 
$
198,486

 
$
—

 
$
200

 
 
 
 
 
 
 
 
 
(a) We hold equity and fixed income securities through investments in mutual funds, which are dedicated to each category as indicated.
Expected Benefit Payments
As of December 31, 2017, the benefit amounts expected to be paid from plan assets through December 31, 2027 were as follows (in thousands): 
 
 
Pension
Benefits
 
Other
Postretirement
Benefits
2018
 
$
14,200

 
$
625

2019
 
$
13,854

 
$
678

2020
 
$
16,206

 
$
715

2021
 
$
16,556

 
$
785

2022
 
$
18,518

 
$
844

2023 through 2027
 
$
95,544

 
$
4,021