10) PENSION PLAN

We maintain contributory and non-contributory retirement plans for eligible employees. Our contributions to the contributory plan amounted to $27.3 million, $21.7 million and $20.8 million in 2012, 2011 and 2010, respectively. The non-contributory plan is a defined benefit pension plan which covers employees of one of our subsidiaries. The benefits are based on years of service and the employee’s highest compensation for any five years of employment. Our funding policy is to contribute annually at least the minimum amount that should be funded in accordance with the provisions of ERISA.

The following table shows the reconciliation of the defined benefit pension plan as of December 31, 2012 and 2011:


	2012			2011
	(000s)
Change in plan assets:
Fair value of plan assets at beginning of year	$	87,940		$	73,402
Actual return (loss) on plan assets		13,824			5,689
Employer contributions		7,786			14,065
Benefits paid		(4,946	)		(4,541	)
Administrative expenses		(530	)		(675	)

Fair value of plan assets at end of year	$	104,074		$	87,940
Change in benefit obligation:
Benefit obligation at beginning of year	$	108,446		$	93,513
Service cost		1,144			1,162
Interest cost		4,659			5,047
Benefits paid		(4,946	)		(4,541	)
Actuarial (gain) loss		5,226			13,265

Benefit obligation at end of year	$	114,529		$	108,446
Amounts recognized in the Consolidated Balance Sheet:
Other noncurrent liabilities		10,455			20,506

Total liability at end of year	$	10,455		$	20,506

Additional year end information for Pension Plan
Projected benefit obligation	$	114,529		$	108,446
Accumulated benefit obligation		112,675			106,609
Fair value of plan assets		104,074			87,940


	2012			2011			2010
	(000s)
Components of net periodic cost (benefit)
Service cost	$	1,144		$	1,162		$	1,140
Interest cost		4,659			5,047			4,958
Expected return on plan assets		(7,301	)		(6,566	)		(5,151	)
Recognized actuarial loss		4,219			2,427			2,538

Net periodic cost	$	2,721		$	2,070		$	3,485


	2012		2011
Measurement Dates
Benefit obligations		12/31/2012		12/31/2011
Fair value of plan assets		12/31/2012		12/31/2011


	2012			2011
Weighted average assumptions as of December 31
Discount rate		4.05	%		4.40	%
Rate of compensation increase		4.00	%		4.00	%


	2012			2011			2010
Weighted-average assumptions for net periodic benefit cost calculations
Discount rate		4.40	%		5.54	%		5.96	%
Expected long-term rate at return on plan assets		8.00	%		8.00	%		8.00	%
Rate of compensation increase		4.00	%		4.00	%		4.00	%

The accumulated benefit obligation was $112,675 and $106,609 as of December 31, 2012 and 2011, respectively. The accumulated benefit obligation exceeded the fair value of plan assets as of December 31, 2012 and 2011. In 2012 and 2011, the accrued pension cost is included in non-current liabilities in the accompanying Consolidated Balance Sheet. We estimate that there will be $3,305 of net loss that will be amortized from accumulated other comprehensive income over the next fiscal year.

Our pension plans assets were $104,074 and $87,940 at December 31, 2012 and 2011, respectively. The market values of our pension plan assets at December 31, 2012 and December 31, 2011 by asset category are as follows:


December 31, 2012	Total		Level 1		Level 2		Level 3
Equities:
U.S. Large Cap	$	22,800	$	—	$	22,800	$	—
U.S. Mid Cap		1,566		—		1,566		—
U.S. Small-Mid Cap		7,738		—		7,738		—
U.S. Small Cap		1,583		—		1,583		—
International Developed		10,779		—		10,779		—
Emerging Markets		3,912		—		3,912		—
Fixed income:
Long Duration Fixed Income		51,355		—		51,355		—
Real Estate:
REIT Fund		3,904		—		3,904		—
Cash/Currency:
Cash Equivalents		437		—		437		—

Total market value	$	104,074	$	—	$	104,074	$	—


December 31, 2011	Total		Level 1		Level 2		Level 3
Equities:
U.S. Large Cap	$	18,921	$	—	$	18,921	$	—
U.S. Mid Cap		1,281		—		1,281		—
U.S. Small-Mid Cap		6,332		—		6,332		—
U.S. Small Cap		1,282		—		1,282		—
International Developed		8,692		—		8,692		—
Emerging Markets		3,123		—		3,123		—
Fixed income:
Long Duration Fixed Income		44,587		—		44,587		—
Real Estate:
REIT Fund		3,269		—		3,269		—
Cash/Currency:
Cash Equivalents		453		—		453		—

Total market value	$	87,940	$	—	$	87,940	$	—

To develop the expected long-term rate of return on plan assets assumption, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio.

The following table shows expected benefit payments for the years ended December 31, 2012 through 2022 for our defined pension plan. There will be benefit payments under this plan beyond 2022.


Estimated Future Benefit Payments (000s)
2013	$	5,451
2014		5,724
2015		5,692
2016		6,182
2017		6,379
2018-2022		34,251

Total	$	63,679


	2012			2011
Plan Assets
Asset Category
Equity securities		47	%		45	%
Fixed income securities		49	%		50	%
Other		4	%		5	%

Total		100	%		100	%

Investment Policy, Guidelines and Objectives have been established for the defined benefit pension plan. The investment policy is in keeping with the fiduciary requirements under existing federal laws and managed in accordance with the Prudent Investor Rule. Total portfolio risk is regularly evaluated and compared to that of the plan’s policy target allocation and judged on a relative basis over a market cycle. The following asset allocation policy and ranges have been established in accordance with the overall risk and return objectives of the portfolio:


	Policy			As of 12/31/12			Permitted Range
Total Equity		46	%		47	%		43-49	%
Total Fixed Income		50	%		49	%		45-55	%
Other		4	%		4	%		0-10	%

In accordance with the investment policy, the portfolio will invest in high quality, large and small capitalization companies traded on national exchanges, and investment grade securities. The investment managers will not write or buy options for speculative purposes; securities may not be margined or sold short. The manager may employ futures or options for the purpose of hedging exposure, and will not purchase unregistered sectors, private placements, partnerships or commodities.