Retirement plans

We have various defined benefit retirement plans, including plans established under collective bargaining agreements. Our principal retirement plan is the TEGNA Retirement Plan (TRP). The TRP was formed in connection with the spin-off of our former publishing businesses. The TRP assumed certain assets and liabilities from the Gannett Retirement Plan, with the remaining pension obligations being retained by Gannett. The G. B. Dealey Retirement Pension Plan (Dealey Plan), a pension plan covering former Belo employees, merged with the TRP plan as of December 31, 2015.

The disclosure tables below include the assets and obligations of the TRP and the TEGNA Supplemental Retirement Plan (SERP). We use a December 31 measurement date convention for our retirement plans.

Substantially all participants in the TRP and SERP had their benefits frozen before 2009.

Our pension costs, which include costs for our qualified and non-qualified plans, are presented in the following table:



In thousands of dollars
	2016			2015			2014
Service cost—benefits earned during the period	$	816		$	920		$	812
Interest cost on benefit obligation	26,111			23,800			23,558
Expected return on plan assets	(26,764		)	(31,464		)	(28,697		)
Amortization of prior service costs	670			673			599
Amortization of actuarial loss	7,615			6,335			4,003
Total pension expense for company-sponsored retirement plans	$	8,448		$	264		$	275

The following table provides a reconciliation of pension benefit obligations (on a projected benefit obligation measurement basis), plan assets and funded status of company-sponsored retirement plans, along with the related amounts that are recognized in the Consolidated Balance Sheets.



In thousands of dollars
	Dec. 31, 2016			Dec. 31, 2015
Change in benefit obligations
Benefit obligations at beginning of year	$	586,624		$	566,224
Service cost	816			920
Interest cost	26,111			23,800
Actuarial loss (gain)	17,755			(12,514		)
Gross benefits paid	(38,532		)	(34,401		)
Adjustment due to spin-off of publishing businesses	13,639			42,595
Benefit obligations at end of year	$	606,413		$	586,624
Change in plan assets
Fair value of plan assets at beginning of year	$	400,193		$	387,626
Actual return on plan assets	21,316			(725		)
Employer contributions	5,191			12,008
Gross benefits paid	(38,532		)	(34,401		)
Transfers	—			35,685
Fair value of plan assets at end of year	$	388,168		$	400,193
Funded status at end of year	$	(218,245	)	$	(186,431	)
Amounts recognized in Consolidated Balance Sheets
Accrued benefit cost—current	$	(30,955	)	$	(7,587	)
Accrued benefit cost—noncurrent	$	(187,290	)	$	(178,844	)

In 2016, we identified certain actuarial discrepancies in participant data that resulted in an overstatement of the postretirement benefits liabilities transferred to our former publishing businesses in conjunction with the spin-off. Based on our assessment of qualitative and quantitative factors, the impact of these discrepancies was not considered material to the consolidated financial statements for the prior periods. The correction of these discrepancies resulted in an increase in pension liabilities of $13.6 million (which is shown in the table above) and postretirement medical and life insurance liabilities of $3.1 million. The increase in postretirement benefits liabilities was offset by a reduction in retained earnings of $7.7 million, a $2.6 million increase, net of taxes, in accumulated other comprehensive loss, and an increase in deferred tax assets of $6.4 million.

The funded status (on a projected benefit obligation basis)

of our principal retirement plans at December 31, 2016, is as follows:



In thousands of dollars
	Fair Value of Plan Assets		Benefit Obligation		Funded Status
TRP	$	388,168	$	502,922	$	(114,754	)
SERP ^(a)	—		102,856		(102,856		)
All other	—		635		(635		)
Total	$	388,168	$	606,413	$	(218,245	)

(a) The SERP is an unfunded, unsecured liability

The accumulated benefit obligation for all defined benefit pension plans was $601.4 million at December 31, 2016 and $576.3 million at December 31, 2015. Based on actuarial projections, contributions of $53.3 million are expected to be made to our retirement plans during the year ended December 31, 2017.

The following table presents information for our retirement plans for which accumulated benefits exceed assets:



In thousands of dollars
	Dec. 31, 2016		Dec. 31, 2015
Accumulated benefit obligation	$	601,430	$	576,333
Fair value of plan assets	$	388,168	$	400,193

The following table presents information for our retirement plans for which projected benefit obligations exceed assets:



In thousands of dollars
	Dec. 31, 2016		Dec. 31, 2015
Projected benefit obligation	$	606,413	$	586,624
Fair value of plan assets	$	388,168	$	400,193

The following table summarizes the amounts recorded in accumulated other comprehensive income (loss) that have not yet been recognized as a component of pension expense as of the dates presented (pre-tax):



In thousands of dollars
	Dec. 31, 2016			Dec. 31, 2015
Net actuarial losses	$	(204,761	)	$	(184,808	)
Prior service cost	(2,717		)	(3,367		)
Amounts in accumulated other comprehensive income (loss)	$	(207,478	)	$	(188,175	)

The actuarial loss amounts expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2017 are $8.0 million. The prior service cost amounts expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2017 are $0.6 million.

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) consist of the following for continuing operations only:



In thousands of dollars
	2016
Current year actuarial loss	$	(23,203	)
Amortization of previously deferred actuarial loss	7,615
Amortization of previously deferred prior service costs	670
Adjustment due to spin-off of publishing businesses	(4,386		)
Total	$	(19,304	)

Pension costs: The following assumptions were used to determine net pension costs:



	2016	2015	2014
Discount rate	4.46%	4.19%	4.84%
Expected return on plan assets	7.00%	8.00%	8.00%
Rate of compensation increase	3.00%	3.00%	3.00%

The expected return on plan assets assumption was determined based on plan asset allocations, a review of historic capital market performance, historical plan asset performance and a forecast of expected future plan asset returns.

Benefit obligations and funded status: The following assumptions were used to determine the year-end benefit obligations:



	Dec. 31, 2016	Dec. 31, 2015
Discount rate	4.12%	4.46%
Rate of compensation increase	3.00%	3.00%

Plan assets: The asset allocation for the TRP at the end of 2016 and 2015, and target allocations for 2017, by asset category, are presented in the table below:



Target Allocation			Allocation of Plan Assets
	2017		2016		2015
Equity securities	60	%	59	%	58	%
Debt securities	25		34		35
Other	15		7		7
Total	100	%	100	%	100	%

The primary objective of company-sponsored retirement plans is to provide eligible employees with scheduled pension benefits. Consistent with prudent standards for preservation of capital and maintenance of liquidity, the goal is to earn the highest possible total rate of return while minimizing risk. The principal means of reducing volatility and exercising prudent investment judgment is diversification by asset class and by investment manager; consequently, portfolios are constructed to attain prudent diversification in the total portfolio, each asset class, and within each individual investment manager’s portfolio. Investment diversification is consistent with the intent to minimize the risk of large losses. All objectives are based upon an investment horizon spanning five years so that interim market fluctuations can be viewed with the appropriate perspective. The target asset allocation represents the long-term perspective. Retirement plan assets will be rebalanced periodically to align them with the target asset allocations. Risk characteristics are measured and compared with an appropriate benchmark quarterly; periodic reviews are made of the investment objectives and the investment managers. Our actual investment return on our TRP assets was 7.4% for 2016, 1.0% for 2015 and 8.2% for 2014.

Cash flows: We estimate we will make the following benefit payments (from either retirement plan assets or directly from our funds), which reflect expected future employee service, as appropriate:



In thousands of dollars
2017	$	62,588
2018	$	36,675
2019	$	38,514
2020	$	38,030
2021	$	38,272
2022-2026	$	196,925

401(k) savings plan

Substantially all our employees (other than those covered by a collective bargaining agreement) are eligible to participate in our principal defined contribution plan, The TEGNA 401(k) Savings Plan. Employees can elect to save up to 50% of compensation on a pre-tax basis subject to certain limits.

For most participants, the plan’s matching formula is 100% of the first 5% of employee contributions. We also make additional employer contributions on behalf of certain long-term employees. Compensation expense related to 401(k) contributions was $15.5 million in 2016, $18.2 million in 2015 and $19.3 million in 2014. We settle the 401(k) employee company stock match obligation by buying our stock in the open market and depositing it in the participants’ accounts.

Multi-employer plan

We contribute to the AFTRA Retirement Plan (AFTRA Plan), a multi-employer defined benefit pension plan, under the terms of collective-bargaining agreements (CBA) that cover our union-represented employees. The risks of participating in this multi-employer plan are different from single-employer plans in the following aspects:


•	We play no part in the management of plan investments or any other aspect of plan administration.


•	Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.


•	If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.


•	If we choose to stop participating in some of our multi-employer plans, we may be required to pay those plans an amount based on the unfunded status of the plan, referred to as withdrawal liability.

The Employee Identification Number (EIN) and three-digit plan number of the AFTRA Plan is 13-6414972/001.

The AFTRA Plan has a certified green zone status as of November 30, 2014. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded; plans in the orange zone are both a) less than 80% funded and b) have an accumulated/expected funding deficiency in any of the next six plan years, net of any amortization extensions; plans in the yellow zone meet either one of the criteria mentioned in the orange zone; and plans in the green zone are at least 80% funded. A financial improvement plan or a rehabilitation plan is neither pending nor has one been implemented.

We make all required contributions to the plan as determined under the respective CBAs. We contributed $1.8 million in 2016, $1.1 million in 2015 and $1.0 million in 2014. Our contribution to the AFTRA Retirement Plan represented less than 5% of total contributions to the plan. This calculation is based on the plan financial statements issued for the period ending November 30, 2015. At the date we issued our financial statements, Forms 5500 were unavailable for the plan years ending after November 30, 2015.

Expiration dates of the CBAs in place range from April 16, 2017 to February 23, 2019.

The AFTRA Plan has elected to utilize special amortization provisions provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.

We incurred no expenses for multi-employer withdrawal liabilities for the years ended December 31, 2016 and 2015.