BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2012

The fair values of our pension plan assets at December 31, 2012 and 2011 by asset category are as follows:

FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2012


in thousands	Level 1 ¹		Level 2 ¹		Level 3 ¹		Total

Asset Category
Debt securities		$0		$155,874		$0		$155,874
Investment funds
Commodity funds		0		27,906		0		27,906
Equity funds		4,503		388,499		0		393,002
Short-term funds		8,298		0		0		8,298
Venture capital and partnerships		0		0		98,011		98,011
Total pension plan assets		$12,801		$572,279		$98,011		$683,091

¹ See Note 1 under the caption Fair Value Measurements for a description of the fair value hierarchy.

FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2011


in thousands	Level 1 ¹		Level 2 ¹		Level 3 ¹		Total

Asset Category
Debt securities		$0		$152,240		$0		$152,240
Investment funds
Commodity funds		0		26,498		0		26,498
Equity funds		884		346,632		0		347,516
Short-term funds		3,593		0		0		3,593
Venture capital and partnerships		0		0		106,801		106,801
Total pension plan assets		$4,477		$525,370		$106,801		$636,648

¹ See Note 1 under the caption Fair Value Measurements for a description of the fair value hierarchy.

Reconciliation of Fair Value Measurements of Pension Plan Assets Using Significant Unobservable Inputs ( Level 3)

A reconciliation of the fair value measurements of our pension plan assets using significant unobservable inputs (Level 3) for the years ended December 31 is presented below:

FAIR VALUE MEASUREMENTS

USING SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3)


in thousands	Debt Securities			Venture Capital and Partnerships			Total
Balance at December 31, 2010		$308			$96,244			$96,552
Actual return on plan assets
Relating to assets still held at December 31, 2011		0			13,696			13,696
Relating to assets sold during the year ended December 31, 2011		0			0			0
Purchases, sales and settlements, net		0			(3,139	)		(3,139	)
Transfers in (out) of Level 3		(308	)		0			(308	)
Balance at December 31, 2011		$0			$106,801			$106,801
Actual return on plan assets
Relating to assets still held at December 31, 2012		0			(6,858	)		(6,858	)
Relating to assets sold during the year ended December 31, 2012		0			0			0
Purchases, sales and settlements, net		0			15,356			15,356
Transfers in (out) of Level 3		0			(17,288	)		(17,288	)
Balance at December 31, 2012		$0			$98,011			$98,011

Summary of Each Multiemployer Pension Plan For Which We Participate

A summary of each multiemployer pension plan for which we participate is presented below:

Pension

Fund

EIN/Pension

Plan Number

Pension

Protection
Act Zone Status ¹

FIP/RP
Status
Pending/

Vulcan Contributions in thousands

Surcharge

Expiration
Date/Range of
CBAs

2012

2011

Implemented

2012

2011

2010

Imposed

36-6042061-001

red

orange

$147

$162

$176

5/31/2013

5/31/2015 -

36-6052390-001

green

418

408

494

1/31/2016

5/31/2013 -

36-6044243-001

red

302

276

267

1/31/2016

51-6031295-002

green

3/31/2014

94-6277608-001

yellow

yes

232

177

176

7/15/2013

7/31/2014 -

52-6074345-001

red

yes

887

840

825

1/31/2016

51-6067400-001

green

211

166

181

4/30/2014

36-6140097-001

green

1,392

1,543

1,566

4/30/2014

7/15/2013 -

94-6090764-001

orange

yes

2,082

1,737

1,576

9/17/2013

95-6032478-001

red

yes

391

313

243

9/30/2015

36-6155778-001

red

216

198

195

4/30/2013

L ²

51-6051034-001

yellow

green

7/15/2013 -

91-6145047-001

green

885

882

764

4/8/2017

Total contributions

$7,227

$6,778

$6,566



A Automobile Mechanics Local No. 701 Pension Fund		H Midwest Operating Engineers Pension Trust Fund
B Central Pension Fund of the IUOE and Participating Employers		I Operating Engineers Trust Funds - Local 3
C Central States Southeast and Southwest Areas Pension Plan		J Operating Engineers Pension Trust Funds - Local 12
D IAM National Pension Fund		K Suburban Teamsters of Northern Illinois Pension Plan
E Laborers Trust Funds for Northern California		L Teamsters Union No 142 Pension Trust Fund
F LIUNA National Industrial Pension Fund		M Western Conference of Teamsters Pension Trust Fund
G Local 786 Building Material Pension Trust
EIN Employer Identification Number
FIP Funding Improvement Plan
RP Rehabilitation Plan
CBA Collective Bargaining Agreement

¹	The Pension Protection Act of 2006 defines the zone status as follows: green - healthy, yellow - endangered, orange - seriously endangered and red - critical.

²	All employees covered under this plan were located at operations divested on 9/30/2011.

Contributions by Participants to Postretirement Benefit Plans

Contributions by participants to the postretirement benefit plans for the years ended December 31 are as follows:


in thousands	Postretirement

Participants Contributions
2010		$1,829
2011		1,933
2012		1,901

Effects of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rate

Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A one-percentage-point change in the assumed healthcare cost trend rate would have the following effects:


in thousands	One-percentage-point Increase		One-percentage-point Decrease

Effect on total of service and interest cost		$192		($186	)
Effect on postretirement benefit obligation		3,274		(3,149	)

Pension Plans, Defined Benefit

Combined Funded Status of Plans and their Reconciliation with Related Amounts Recognized in Consolidated Financial Statements

The following table sets forth the combined funded status of the plans and their reconciliation with the related amounts recognized in our consolidated financial statements at December 31:


in thousands	*2012*			2011

Change in Benefit Obligation
Projected benefit obligation at beginning of year		$867,374			$761,384
Service cost		22,349			20,762
Interest cost		43,194			42,383
Plan amendment ¹		1,286			0
Actuarial loss		96,222			81,699
Benefits paid		(39,087	)		(38,854	)
Projected benefit obligation at end of year		$991,338			$867,374

Change in Plan Assets
Fair value of assets at beginning of year		$636,648			$630,303
Actual return on plan assets		81,021			40,293
Employer contribution		4,509			4,906
Benefits paid		(39,087	)		(38,854	)
Fair value of assets at end of year		$683,091			$636,648
Funded status		($308,247	)		($230,726	)
Net amount recognized		($308,247	)		($230,726	)

Amounts Recognized in the Consolidated
Balance Sheets
Current liabilities		($5,211	)		($4,880	)
Noncurrent liabilities		(303,036	)		(225,846	)
Net amount recognized		($308,247	)		($230,726	)

Amounts Recognized in Accumulated
Other Comprehensive Income
Net actuarial loss		$325,807			$281,352
Prior service cost		1,609			597
Total amount recognized		$327,416			$281,949

An amendment to the salaried plan was necessary to maintain compliance with required discrimination testing.

Components of Net Periodic Benefit Cost, Amounts Recognized in Other Comprehensive Income, Weighted-Average Assumptions

The following table sets forth the components of net periodic benefit cost, amounts recognized in other comprehensive income and weighted-average assumptions of the plans at December 31:


dollars in thousands	*2012*			2011			2010

Components of Net Periodic Pension Benefit Cost
Service cost		$22,349			$20,762			$19,217
Interest cost		43,194			42,383			41,621
Expected return on plan assets		(48,780	)		(49,480	)		(50,122	)
Amortization of prior service cost		274			340			460
Amortization of actuarial loss		19,526			11,670			5,752
Net periodic pension benefit cost		$36,563			$25,675			$16,928

Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net actuarial loss (gain)		$63,981			$90,886			($17,413	)
Prior service cost		1,286			0			0
Reclassification of actuarial loss to net periodic pension benefit cost		(19,526	)		(11,670	)		(5,752	)
Reclassification of prior service cost to net periodic pension benefit cost		(274	)		(340	)		(460	)
Amount recognized in other comprehensive income		$45,467			$78,876			($23,625	)
Amount recognized in net periodic pension benefit cost and other comprehensive income		$82,030			$104,551			($6,697	)

Assumptions
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31
Discount rate		4.96	%		5.49	%		5.92	%
Expected return on plan assets		8.00	%		8.00	%		8.25	%
Rate of compensation increase
(for salary-related plans)		3.50	%		3.50	%		3.40	%

Weighted-average assumptions used to determine benefit obligation at December 31
Discount rate		4.19	%		4.96	%		5.49	%
Rate of compensation increase (for salary-related plans)		3.50	%		3.50	%		3.50	%

Employer Contributions for Plan

Total employer contributions for the pension plans are presented below:


in thousands	Pension

Employer Contributions
2010		$78,359
2011		4,906
2012		4,509
2013 (estimated)		5,200

Benefit Payments Which Reflect Expected Future Service, Expected to be Paid

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:


in thousands	Pension
Estimated Future Benefit Payments
2013		$42,335
2014		51,155
2015		49,066
2016		50,515
2017		51,709
2018-2022		284,836

Other Postretirement Benefit Plans, Defined Benefit

Combined Funded Status of Plans and their Reconciliation with Related Amounts Recognized in Consolidated Financial Statements

The following table sets forth the combined funded status of the plans and their reconciliation with the related amounts recognized in our consolidated financial statements at December 31:


in thousands	*2012*			2011

Change in Benefit Obligation
Projected benefit obligation at beginning of year		$134,926			$133,717
Service cost		4,409			4,789
Interest cost		5,851			6,450
Plan amendments		(38,414	)		0
Actuarial (gain) loss		13,562			(2,854	)
Benefits paid		(6,834	)		(7,176	)
Projected benefit obligation at end of year		$113,500			$134,926

Change in Plan Assets
Fair value of assets at beginning of year		$0			$0
Actual return on plan assets		0			0
Fair value of assets at end of year		$0			$0
Funded status		($113,500	)		($134,926	)
Net amount recognized		($113,500	)		($134,926	)

Amounts Recognized in the Consolidated Balance Sheets
Current liabilities		($10,366	)		($9,966	)
Noncurrent liabilities		(103,134	)		(124,960	)
Net amount recognized		($113,500	)		($134,926	)

Amounts Recognized in Accumulated Other Comprehensive Income
Net actuarial loss		$38,221			$26,006
Prior service credit		(41,182	)		(4,141	)
Total amount recognized		($2,961	)		$21,865

Components of Net Periodic Benefit Cost, Amounts Recognized in Other Comprehensive Income, Weighted-Average Assumptions

The following table sets forth the components of net periodic benefit cost, amounts recognized in other comprehensive income, weighted-average assumptions and assumed trend rates of the plans at December 31:


dollars in thousands	*2012*		2011		2010

Components of Net Periodic Postretirement Benefit Cost
Service cost	$4,409		$4,789		$4,265
Interest cost	5,851		6,450		6,651
Amortization of prior service credit	(1,372	)	(674	)	(728	)
Amortization of actuarial loss	1,346		1,149		887
Net periodic postretirement benefit cost	$10,234		$11,714		$11,075

Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net actuarial (gain) loss	$13,562		($2,853	)	$11,730
Prior service credit	(38,414	)	0		0
Reclassification of actuarial loss to net periodic postretirement benefit cost	(1,346	)	(1,149	)	(887	)
Reclassification of prior service credit to net periodic postretirement benefit cost	1,372		674		728
Amount recognized in other comprehensive income	($24,826	)	($3,328	)	$11,571
Amount recognized in net periodic postretirement benefit cost and other comprehensive income	($14,592	)	$8,386		$22,646

Assumptions Assumed Healthcare Cost Trend Rates at December 31
Healthcare cost trend rate assumed for next year	8.00%		7.50%		8.00%
Rate to which the cost trend rate gradually declines	5.00%		5.00%		5.00%
Year that the rate reaches the rate it is assumed to maintain	2019		2017		2017

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31
Discount rate	4.60%		4.95%		5.45%

Weighted-average assumptions used to determine benefit obligation at December 31
Discount rate	3.30%		4.60%		4.95%

Employer Contributions for Plan

Total employer contributions for the postretirement plans are presented below:


in thousands	Postretirement

Employer Contributions
2010		$7,242
2011		7,176
2012		6,834
2013 (estimated)		10,366

Benefit Payments Which Reflect Expected Future Service, Expected to be Paid

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:


in thousands	Postretirement

Estimated Future Benefit Payments
2013		$10,366
2014		10,807
2015		11,101
2016		11,050
2017		10,719
2018–2022		47,491