Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Tables)
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12 Months Ended |
Dec. 31, 2011
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General Discussion of Pension and Other Postretirement Benefits [Abstract] |
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Schedule of Changes in Projected Benefit Obligations |
We use a December 31 measurement date for our benefit plans and obligations. The change in benefit obligation, change in plan assets and funded status for company-sponsored benefit plans and obligations are as follows: (Dollars in thousands) | | | | | | | | | | | | | | | PENSION BENEFIT PLANS | OTHER POSTRETIREMENT EMPLOYEE BENEFITS | | 2011 |
| 2010 |
| 2011 |
| 2010 |
| Benefit obligation at beginning of year | $ | 395,086 |
| $ | 399,875 |
| $ | 72,619 |
| $ | 82,074 |
| Service cost | 4,456 |
| 4,633 |
| 446 |
| 415 |
| Interest cost | 21,325 |
| 21,649 |
| 3,486 |
| 3,972 |
| Plan amendments | — |
| — |
| (5,805 | ) | — |
| Actuarial loss (gain) | 27,916 |
| 106 |
| (913 | ) | (6,147 | ) | Closures and special termination benefits | — |
| (432 | ) | — |
| 65 |
| Medicare Part D subsidies received | — |
| — |
| 741 |
| 552 |
| Benefits paid | (30,532 | ) | (30,745 | ) | (5,379 | ) | (8,312 | ) | Benefit obligation at end of year | 418,251 |
| 395,086 |
| 65,195 |
| 72,619 |
| Fair value of plan assets at beginning of year | 329,064 |
| 318,590 |
| — |
| — |
| Actual return on plan assets | 2,500 |
| 38,863 |
| — |
| — |
| Employer contribution | 11,126 |
| 1,729 |
| — |
| — |
| Benefits paid | (30,532 | ) | (30,745 | ) | — |
| — |
| Spin-off of Clearwater Paper | — |
| 627 |
| — |
| — |
| Fair value of plan assets at end of year | 312,158 |
| 329,064 |
| — |
| — |
| Funded status at end of year | $ | (106,093 | ) | $ | (66,022 | ) | $ | (65,195 | ) | $ | (72,619 | ) | Amounts recognized in the consolidated balance sheets: | | | | | Current liabilities | $ | (1,712 | ) | $ | (1,708 | ) | $ | (6,460 | ) | $ | (7,809 | ) | Noncurrent liabilities | (104,381 | ) | (64,314 | ) | (58,735 | ) | (64,810 | ) | Net amount recognized | $ | (106,093 | ) | $ | (66,022 | ) | $ | (65,195 | ) | $ | (72,619 | ) |
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Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss on Consolidated Balance Sheets, Pre-Tax |
Amounts recognized (pre-tax) in “Accumulated other comprehensive loss” on our Consolidated Balance Sheets consist of: (Dollars in thousands) | | | | | | | | | | | | | | | PENSION BENEFIT PLANS | OTHER POSTRETIREMENT EMPLOYEE BENEFITS | | 2011 |
| 2010 |
| 2011 |
| 2010 |
| Net loss | $ | 256,536 |
| $ | 209,232 |
| $ | 45,793 |
| $ | 50,673 |
| Prior service cost (credit) | 3,929 |
| 4,613 |
| (70,384 | ) | (73,115 | ) | Net amount recognized | $ | 260,465 |
| $ | 213,845 |
| $ | (24,591 | ) | $ | (22,442 | ) |
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Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets |
Information as of December 31 for our pension plans, all of which had accumulated benefit obligations in excess of plan assets, was as follows: (Dollars in thousands) | | | | | | | | | 2011 |
| 2010 |
| Projected benefit obligation | $ | 418,251 |
| $ | 395,086 |
| Accumulated benefit obligation | 412,322 |
| 388,934 |
| Fair value of plan assets | 312,158 |
| 329,064 |
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Schedule of Net Periodic Costs (Benefits), Pre-Tax |
Pre-tax components of net periodic cost (benefit) recognized in our Consolidated Statements of Operations were as follows: (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | PENSION BENEFIT PLANS | OTHER POSTRETIREMENT EMPLOYEE BENEFITS | | 2011 |
| 2010 |
| 2009 |
| 2011 |
| 2010 |
| 2009 |
| Service cost | $ | 4,456 |
| $ | 4,633 |
| $ | 4,289 |
| $ | 446 |
| $ | 415 |
| $ | 980 |
| Interest cost | 21,325 |
| 21,649 |
| 22,588 |
| 3,486 |
| 3,972 |
| 9,015 |
| Expected return on plan assets | (31,804 | ) | (33,133 | ) | (35,309 | ) | — |
| — |
| — |
| Amortization of prior service cost (credit) | 684 |
| 875 |
| 993 |
| (8,536 | ) | (8,891 | ) | (984 | ) | Amortization of actuarial loss | 9,916 |
| 8,174 |
| 3,890 |
| 3,967 |
| 4,631 |
| 4,445 |
| Net periodic cost (benefit) | $ | 4,577 |
| $ | 2,198 |
| $ | (3,549 | ) | $ | (637 | ) | $ | 127 |
| $ | 13,456 |
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) |
Other amounts recognized in our Consolidated Statements of Comprehensive Income were as follows: (Dollars in thousands) | | | | | | | | | | | | | | | | | | | | | PENSION BENEFIT PLANS | OTHER POSTRETIREMENT EMPLOYEE BENEFITS | | 2011 |
| 2010 |
| 2009 |
| 2011 |
| 2010 |
| 2009 |
| Net loss (gain) | $ | 57,220 |
| $ | (6,682 | ) | $ | (7,902 | ) | $ | (913 | ) | $ | (6,477 | ) | $ | 27,553 |
| Prior service cost (credit) | — |
| — |
| 539 |
| (5,805 | ) | 715 |
| (76,725 | ) | Amortization of prior service (cost) credit | (684 | ) | (875 | ) | (993 | ) | 8,536 |
| 8,571 |
| 984 |
| Amortization of actuarial loss | (9,916 | ) | (8,174 | ) | (3,890 | ) | (3,967 | ) | (4,631 | ) | (4,445 | ) | Total recognized in other comprehensive loss (income) | $ | 46,620 |
| $ | (15,731 | ) | $ | (12,246 | ) | $ | (2,149 | ) | $ | (1,822 | ) | $ | (52,633 | ) | Total recognized in net periodic cost (benefit) and other comprehensive loss (income) | $ | 51,197 |
| $ | (13,533 | ) | $ | (15,795 | ) | $ | (2,786 | ) | $ | (1,695 | ) | $ | (39,177 | ) | Pre-tax net periodic benefit cost (benefit) related to continuing operations | $ | 4,577 |
| $ | 2,198 |
| $ | (3,549 | ) | $ | (637 | ) | $ | 127 |
| $ | 13,456 |
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Schedule of Weighted Average Assumptions Used to Determine the Benefit Obligation |
Weighted average assumptions used to determine the benefit obligation as of December 31 were: | | | | | | | | | | | | | | | PENSION BENEFIT PLANS | OTHER POSTRETIREMENT EMPLOYEE BENEFITS | | 2011 |
| 2010 |
| 2009 |
| 2011 |
| 2010 |
| 2009 |
| Discount rate | 4.95 | % | 5.65 | % | 5.65 | % | 4.85 | % | 5.40 | % | 5.65 | % | Rate of salaried compensation increase | 3.50 |
| 4.00 |
| 4.00 |
| — |
| — |
| — |
|
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Schedule of Weighted Average Assumptions Used to Determine the Net Periodic Benefit (Cost) |
Weighted average assumptions used to determine the net periodic benefit (cost) for the years ended December 31 were: | | | | | | | | | | | | | | | PENSION BENEFIT PLANS | OTHER POSTRETIREMENT EMPLOYEE BENEFITS | | 2011 |
| 2010 |
| 2009 |
| 2011 |
| 2010 |
| 2009 |
| Discount rate | 5.65 | % | 5.65 | % | 6.15 | % | 5.40 | % | 5.65 | % | 6.15 | % | Expected return on plan assets | 8.50 |
| 8.50 |
| 8.50 |
| — |
| — |
| — |
| Rate of salaried compensation increase | 4.00 |
| 4.00 |
| 4.00 |
| — |
| — |
| — |
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Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates |
A one percentage point change in the health care cost trend rates would have the following effects: (Dollars in thousands) | | | | | | | | | 1% INCREASE |
| 1% DECREASE |
| Effect on 2011 total service and interest cost components | $ | 70 |
| $ | (63 | ) | Effect on OPEB obligations as of December 31, 2011 | 725 |
| (665 | ) |
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Schedule of Weighted Average Asset Allocations of the Pension Benefit Plans' Assets |
The weighted average asset allocations of the pension benefit plans’ assets at December 31 by asset category are as follows: | | | | | | | | | | | PENSION BENEFIT PLANS | OTHER POSTRETIREMENT EMPLOYEE BENEFITS | ASSET CATEGORY | 2011 |
| 2010 |
| 2011 |
| 2010 |
| Domestic equity securities | 21 | % | 22 | % | — |
| — |
| Debt securities | 41 |
| 34 |
| — |
| — |
| Global/international equity securities | 24 |
| 29 |
| — |
| — |
| Other | 14 |
| 15 |
| — |
| — |
| Total | 100 | % | 100 | % | — | % | — | % |
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Schedule of Allocation of Plan Assets |
Assets are diversified among various asset classes, such as domestic equities, global equities, fixed income, convertible securities and liquid reserves. The long-term asset allocation ranges are as follows: | | | | | | | | Domestic and global equities | 36 | % | - | 60% | | Fixed income and convertible securities | 35 | % | - | 60% | | Hedge funds | 9 | % | - | 21% |
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Schedule of Fair Values Of Each Major Category Of Plan Assets |
Fair Value Measurements at December 31, 2011: (Dollars in thousands) | | | | | | | | | | | | | | ASSET CATEGORY | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) |
| SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
| SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
| TOTAL |
| Cash and equivalents | $ | 4,309 |
| $ | — |
| $ | — |
| $ | 4,309 |
| Equity securities: | | | | | U.S. large cap1 | 30,173 |
| — |
| — |
| 30,173 |
| U.S. small/mid cap2 | 18,343 |
| — |
| — |
| 18,343 |
| International companies | 6,925 |
| — |
| — |
| 6,925 |
| Mutual funds3 | 127,657 |
| — |
| — |
| 127,657 |
| Collective investments: | | | | | U.S. small/mid cap4 | — |
| 15,581 |
| — |
| 15,581 |
| Developed markets5 | — |
| 34,166 |
| — |
| 34,166 |
| Emerging markets6 | — |
| 33,863 |
| — |
| 33,863 |
| Hedge funds7 | — |
| — |
| 42,940 |
| 42,940 |
| Securities pledged to creditors: | | | | | Money market8 | — |
| 4,728 |
| — |
| 4,728 |
| Mortgage-backed securities9 | — |
| 1,941 |
| — |
| 1,941 |
| Subtotal | 187,407 |
| 90,279 |
| 42,940 |
| 320,626 |
| Payable held under securities lending agreements10 | (8,468 | ) | — |
| — |
| (8,468 | ) | Total | $ | 178,939 |
| $ | 90,279 |
| $ | 42,940 |
| $ | 312,158 |
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| | 1 | These are managed investments in US large cap equities that track Russell 1000 Value strategy. |
| | 2 | These are managed investments in US small/mid cap equities that track Russell 2500 Growth strategy. |
| | 3 | The mutual funds were 50% invested in high-quality intermediate and long-term investment grade securities and 50% invested in a diversified portfolio of fixed-income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements and high-yield securities that are rated B or higher. |
| | 4 | These are managed investments in US small/mid cap equities that track Russell 2500 Value strategy. |
| | 5 | These collective investments are invested in equity funds of developed markets outside of the US & Canada, that track the MSCI EAFE. |
| | 6 | These collective investments are invested in equity funds of emerging markets outside of the US & Canada, that track the MSCI Emerging Markets. |
| | 7 | The hedge funds are 52% invested in long/short and event-driven equity, 13% invested in long and short credit, 11% in relative value, 6% invested in distressed debt, with the remaining 18% in other investments. |
| | 8 | The money market holdings are invested in the Mount Vernon Securities Lending Trust Prime Portfolio. |
| | 9 | The mortgage-backed securities are maintained in the U.S. Bank Illiquid Securities Liquidating Trust. |
| | 10 | This category represents a payable under the securities lending agreements. |
Fair Value Measurements at December 31, 2010: (Dollars in thousands) | | | | | | | | | | | | | | ASSET CATEGORY | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1) |
| SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
| SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
| TOTAL |
| Cash and equivalents | $ | 5,700 |
| $ | — |
| $ | — |
| $ | 5,700 |
| Equity securities: | | | | | U.S. large cap1 | 34,475 |
| — |
| — |
| 34,475 |
| U.S. small/mid cap2 | 19,352 |
| — |
| — |
| 19,352 |
| U.S. small/mid cap3 | 20,001 |
| — |
| — |
| 20,001 |
| International companies | 10,303 |
| — |
| — |
| 10,303 |
| Mutual funds4 | 112,648 |
| — |
| — |
| 112,648 |
| Collective investments: | | | | | Developed markets5 | — |
| 44,194 |
| — |
| 44,194 |
| Emerging markets6 | — |
| 40,195 |
| — |
| 40,195 |
| Hedge funds7 | — |
| — |
| 44,201 |
| 44,201 |
| Securities pledged to creditors: | | | | | Money market8 | — |
| 4,719 |
| — |
| 4,719 |
| Mortgage-backed securities9 | — |
| 2,322 |
| — |
| 2,322 |
| Subtotal | 202,479 |
| 91,430 |
| 44,201 |
| 338,110 |
| Payable held under securities lending agreements10 | (9,046 | ) | — |
| — |
| (9,046 | ) | Total | $ | 193,433 |
| $ | 91,430 |
| $ | 44,201 |
| $ | 329,064 |
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| | 1 | These are managed investments in US large cap equities that track Russell 1000 Value strategy. |
| | 2 | These are managed investments in US small/mid cap equities that track Russell 2500 Growth strategy. |
| | 3 | These are managed investments in US small/mid cap equities that track Russell 2500 Value strategy. |
| | 4 | The mutual funds were 50% invested in high-quality intermediate and long-term investment grade securities and 50% invested in a diversified portfolio of fixed- income instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements and high-yield securities that are rated B or higher. |
| | 5 | These collective investments are invested in equity funds of developed markets outside of the US & Canada, that track the MSCI EAFE. |
| | 6 | These collective investments are invested in equity funds of emerging markets outside of the US & Canada, that track the MSCI EAFE. |
| | 7 | The hedge funds are 34% invested in long/short and event-driven equity, 27% invested in long and short credit, 10% invested in distressed debt, 10% invested in fixed income and 8% invested in convertible bonds, with the remaining 11% in other investments. |
| | 8 | The money market holdings are invested in the Mount Vernon Securities Lending Trust Prime Portfolio. |
| | 9 | The mortgage-backed securities are maintained in the U.S. Bank Illiquid Securities Liquidating Trust. |
| | 10 | This category represents a payable under the securities lending agreements. |
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Schedule of Summary of Changes in the Fair Value of the Plans' Level 3 Assets |
The following table sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the years ended December 31: (Dollars in thousands) | | | | | | | | | Hedge Funds | | 2011 |
| 2010 | Balance, beginning of year | $ | 44,201 |
| $ | — |
| Purchases, sales, issuances and settlements, net | — |
| 42,000 |
| Unrealized gains (losses) relating to assets still held at the reporting date | (1,261 | ) | 2,201 |
| Balance, end of year | $ | 42,940 |
| $ | 44,201 |
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Schedule of Expected Future Benefit Payments |
Estimated future benefit payments, which reflect expected future service are as follows for the years indicated: (Dollars in thousands) | | | | | | | | | PENSION BENEFIT PLANS |
| OTHER POSTRETIREMENT EMPLOYEE BENEFITS |
| 2012 | $ | 29,597 |
| $ | 6,460 |
| 2013 | 29,491 |
| 5,974 |
| 2014 | 29,235 |
| 5,610 |
| 2015 | 29,110 |
| 5,346 |
| 2016 | 28,936 |
| 5,067 |
| 2017 – 2021 | 143,053 |
| 20,132 |
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