Pension plans and other postretirement benefits (Tables)

12 Months Ended

Dec. 31, 2012

Net Periodic Pension Expense for Defined Benefit Plans

Net periodic pension expense for defined benefit plans consisted of the following:

	Year Ended December 31
	2012			2011			2010
	(In thousands)
Service cost	$	29,549		$	28,828		$	19,670
Interest cost on benefit obligation		62,037			58,545			47,905
Expected return on plan assets		(70,511	)		(60,700	)		(50,844	)
Amortization of prior service cost		(6,559	)		(6,559	)		(6,559	)
Recognized net actuarial loss		37,386			20,530			13,551
Net periodic pension expense	$	51,902		$	40,644		$	23,723

Net other postretirement benefits expense for defined benefit plans consisted of the following:

	Year Ended December 31
	2012		2011		2010
	(In thousands)
Service cost	$	668	$	535	$	383
Interest cost on benefit obligation		3,737		3,761		3,130
Amortization of prior service cost		21		107		176
Recognized net actuarial loss (gain)		530		36		(9	)
Net other postretirement benefits expense	$	4,956	$	4,439	$	3,680

Data Relating to Funding Position of Defined Benefit Plans

Data relating to the funding position of the defined benefit plans were as follows:

	Pension Benefits						Other Postretirement Benefits
	2012			2011			2012			2011
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	1,496,490		$	947,993		$	90,104		$	61,675
Service cost		29,549			28,828			668			535
Interest cost		62,037			58,545			3,737			3,761
Plan participants’ contributions		—			—			3,765			3,383
Amendments		—			—			(13,313	)		—
Actuarial (gain) loss		116,237			194,622			(182	)		10,303
Settlements/curtailments		(320	)		—			—			—
Business combinations		—			315,210			—			20,689
Medicare Part D reimbursement		—			—			918			715
Benefits paid		(59,426	)		(48,708	)		(10,731	)		(10,957	)
Benefit obligation at end of year		1,644,567			1,496,490			74,966			90,104
Change in plan assets:
Fair value of plan assets at beginning of year		1,117,972			838,465			—			—
Actual return on plan assets		143,430			(6,635	)		—			—
Employer contributions		207,115			75,600			6,048			6,859
Business combinations		—			259,250			—			—
Plan participants’ contributions		—			—			3,765			3,383
Medicare Part D reimbursement		—			—			918			715
Settlements		(320	)		—			—			—
Benefits and other payments		(59,426	)		(48,708	)		(10,731	)		(10,957	)
Fair value of plan assets at end of year		1,408,771			1,117,972			—			—
Funded status	$	(235,796	)	$	(378,518	)	$	(74,966	)	$	(90,104	)
Assets and liabilities recognized in the consolidated balance sheet were:
Net prepaid asset	$	—		$	2,878		$	—		$	—
Accrued liabilities		(235,796	)		(381,396	)		(74,966	)		(90,104	)
Amounts recognized in accumulated other comprehensive income (“AOCI”) were:
Net loss	$	480,084		$	474,153		$	12,134		$	12,845
Net prior service cost		(23,455	)		(30,014	)		(13,173	)		161
Pre-tax adjustment to AOCI		456,629			444,139			(1,039	)		13,006
Taxes.		(179,227	)		(174,324	)		408			(5,105	)
Net adjustment to AOCI.	$	277,402		$	269,815		$	(631	)	$	7,901

Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

The table below reflects the changes in plan assets and benefit obligations recognized in other comprehensive income related to the Company’s postretirement benefit plans.

	Pension Plans			Other Postretirement Benefit Plans			Total
	(In thousands)
2012
Net loss (gain)	$	43,318		$	(182	)	$	43,136
Prior service cost (credit)		—			(13,313	)		(13,313	)
Amortization of prior service (cost) credit		6,559			(21	)		6,538
Amortization of loss		(37,386	)		(530	)		(37,916	)
Total recognized in other comprehensive income, pre-tax	$	12,491		$	(14,046	)	$	(1,555	)
2011
Net loss	$	261,957		$	10,303		$	272,260
Amortization of prior service (cost) credit		6,559			(107	)		6,452
Amortization of loss		(20,530	)		(36	)		(20,566	)
Total recognized in other comprehensive income, pre-tax	$	247,986		$	10,160		$	258,146

Amortization of Amounts in Accumulated Other Comprehensive Income Expected to be Recognized as Components of Net Periodic Benefit Expense

The following table reflects the amortization of amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit expense during 2013:

	Pension Plans			Other Postretirement Benefit Plans
	(In thousands)
Amortization of net prior service cost (credit)	$	(6,559	)	$	(1,356	)
Amortization of net loss		41,593			347

Assumed Weighted-Average Rates Used to Determine Benefit Obligations

The assumed weighted-average rates used to determine benefit obligations at December 31 were:

	Pension Benefits						Other Postretirement Benefits
	2012			2011			2012			2011
Discount rate		3.75	%		4.25	%		3.75	%		4.25	%
Rate of increase in future compensation levels		4.50	%		4.50	%		—			—

Assumed Weighted-Average Rates Used to Determine Net Benefit Expense

The assumed weighted-average rates used to determine net benefit expense for the years ended December 31 were:

	Pension Benefits									Other Postretirement  Benefits
	2012			2011			2010			2012			2011			2010
Discount rate		4.25	%		5.25	%		5.75	%		4.25	%		5.25	%		5.75	%
Long-term rate of return on plan assets		6.50	%		6.50	%		6.50	%		—			—			—
Rate of increase in future compensation levels		4.50	%		4.50	%		4.50	%		—			—			—

Effects on One-Percentage Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point change in assumed health care cost trend rates would have had the following effects:

	+1%		-1%
	(In thousands)
Increase (decrease) in:
Service and interest cost	$	141	$	(126	)
Accumulated postretirement benefit obligation		3,099		(2,790	)

Fair Values of Company's Pension Plan Assets by Asset Category

The fair values of the Company’s pension plan assets at December 31, 2012, by asset category, were as follows:

	Fair Value Measurement of Plan Assets At December 31, 2012
	Total		Quoted Prices in Active Markets for Identical  Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Asset category:
Money-market funds	$	46,657	$	46,657	$	—	$	—
Equity securities:
M&T		120,914		120,914		—		—
Domestic(a)		147,382		147,382		—		—
International		8,561		8,561		—		—
Mutual funds:
Domestic		188,950		188,950		—		—
International		208,696		208,696		—		—
		674,503		674,503		—		—
Debt securities:
Corporate(b)		307,712		—		307,712		—
Government		141,224		—		141,224		—
International		10,230		—		10,230		—
Mutual funds:
Domestic(c)		107,576		107,576		—		—
International		54,362		54,362		—		—
		621,104		161,938		459,166		—
Other:
Diversified mutual fund		10,415		10,415		—		—
Private real estate		4,603		—		—		4,603
Private equity		5,347		—		—		5,347
Hedge funds		41,509		10,000		—		31,509
		61,874		20,415		—		41,459
Total(d)	$	1,404,138	$	903,513	$	459,166	$	41,459

The fair values of the Company’s pension plan assets at December 31, 2011, by asset category, were as follows:

	Fair Value Measurement of Plan Assets At December 31, 2011
	Total		Quoted Prices in Active Markets for Identical  Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Asset category:
Money-market funds	$	63,842	$	63,842	$	—	$	—
Equity securities:
M&T		93,740		93,740		—		—
Domestic(a)		151,235		151,235		—		—
International		8,264		8,264		—		—
Mutual funds:
Domestic		125,223		125,223		—		—
International		127,071		127,071		—		—
		505,533		505,533		—		—
Debt securities:
Corporate(b)		275,079		—		275,079		—
Government		88,261		—		88,261		—
International		7,586		—		7,586		—
Mutual funds:
Domestic(c)		72,680		72,680		—		—
International		23,234		23,234		—		—
		466,840		95,914		370,926		—
Other:
Diversified mutual fund		17,557		17,557		—		—
Private real estate		4,677		—		—		4,677
Private equity		10,190		—		—		10,190
Hedge funds		44,927		—		—		44,927
		77,351		17,557		—		59,794
Total(d)	$	1,113,566	$	682,846	$	370,926	$	59,794

(a) This category is comprised of equities of companies primarily within the mid-cap and large-cap sector of the U.S. economy and range across diverse industries.

(b) This category represents investment grade bonds of U.S. issuers from diverse industries.

(c) Approximately 40% of the mutual funds were invested in investment grade bonds of U.S. issuers and 60% in high-yielding bonds at December 31, 2012. Approximately 50% of the mutual funds were invested in investment grade bonds of U.S. issuers and 50% in high-yielding bonds at December 31, 2011. The holdings within the funds are spread across diverse industries.

(d) Excludes dividends and interest receivable totaling $4,633,000 and $4,406,000 at December 31, 2012 and 2011, respectively.

Changes in Level 3 Pension Plan Assets Measured at Fair Value on Recurring Basis

The changes in Level 3 pension plan assets measured at estimated fair value on a recurring basis during the year ended December 31, 2012 were as follows:

	Balance – January 1, 2012		Sales			Total Realized/ Unrealized Gains (Losses)			Balance – December 31, 2012
	(In thousands)
Other
Private real estate	$	4,677	$	—		$	(74	)	$	4,603
Private equity		10,190		(4,892	)		49			5,347
Hedge funds		44,927		(15,000	)		1,582			31,509
Total	$	59,794	$	(19,892	)	$	1,557		$	41,459

Defined Benefit Plan Estimated Future Benefit Payments

Estimated benefits expected to be paid in future years related to the Company’s defined benefit pension and other postretirement benefits plans are as follows:

	Pension Benefits		Other Postretirement Benefits
	(In thousands)
Year ending December 31:
2013	$	62,531	$	7,473
2014		66,096		7,151
2015		68,838		6,883
2016		75,769		6,652
2017		78,564		6,332
2018 through 2022		450,434		27,647