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Savings Plans, Pension Plans and Other Postretirement Employee Benefits (Tables)
12 Months Ended
Dec. 31, 2011
General Discussion of Pension and Other Postretirement Benefits [Abstract]  
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
)
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
)
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

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

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

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




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




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
)
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
%
%
%
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%
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


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


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.
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

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