Retirement And Postretirement Benefit Plans

12 Months Ended

Feb. 29, 2012

Retirement and Postretirement Benefit Plans [Abstract]

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

NOTE 12 – RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

The Corporation has a discretionary profit-sharing plan with a contributory 401(k) provision covering most of its United States employees. Corporate contributions to the profit-sharing plan were $9,401, $9,759 and $9,338 for 2012, 2011 and 2010, respectively. In addition, the Corporation matches a portion of 401(k) employee contributions. The Corporation’s matching contributions were $5,976, $4,875 and $4,787 for 2012, 2011 and 2010, respectively.

The Corporation also has a defined contribution plan for its European subsidiary which covers the employees in the United Kingdom. Under this plan, the employees contribute to the plan and the Corporation matches a portion of the employee contributions. The Corporation’s matching contributions were $2,012, $1,226 and $1,745 for 2012, 2011 and 2010, respectively.

The Corporation also participates in a multiemployer pension plan covering certain domestic employees who are part of a collective bargaining agreement. Total pension expense for the multiemployer plan, representing contributions to the plan, was $513, $467 and $417 in 2012, 2011 and 2010, respectively.

The Corporation has nonqualified deferred compensation plans that provide certain officers and directors with the opportunity to defer receipt of compensation and director fees, respectively, including compensation received in the form of the Corporation’s common shares. The Corporation generally funds these deferred compensation liabilities by making contributions to a rabbi trust. On December 8, 2011, the Corporation froze the deferred compensation plans. Accordingly, participants are no longer permitted to make new deferral elections, although deferral elections previously made will continue to be honored and amounts already deferred may be re-deferred in accordance with deferred compensation plans. In accordance with ASC Topic 710-10-25, “Compensation – Recognition – Deferred Compensation – Rabbi Trusts,” both the trust assets and the related obligation associated with deferrals of the Corporation’s common shares are recorded in equity at cost and offset each other. There were approximately 0.2 million common shares in the trust at February 29, 2012 with a cost of $2,772 compared to approximately 0.2 million common shares with a cost of $3,368 at February 28, 2011.

In 2001, in connection with its acquisition of Gibson Greetings, Inc. (“Gibson”), the Corporation assumed the obligations and assets of Gibson’s defined benefit pension plan (the “Gibson Retirement Plan”) that covered substantially all Gibson employees who met certain eligibility requirements. Benefits earned under the Gibson Retirement Plan have been frozen and participants no longer accrue benefits after December 31, 2000. The Gibson Retirement Plan has a measurement date of February 28 or 29. No contributions were made to the plan in either 2012 or 2011. The Gibson Retirement Plan was underfunded at February 29, 2012 and February 28, 2011.

The Corporation also has an unfunded nonqualified defined benefit pension plan (the “Supplemental Executive Retirement Plan”) covering certain management employees. The Supplemental Executive Retirement Plan has a measurement date of February 28 or 29.

The Corporation also has several defined benefit pension plans at its Canadian subsidiary. These include a defined benefit pension plan covering most Canadian salaried employees, which was closed to new participants effective January 1, 2006, but eligible members continue to accrue benefits and an hourly plan in which benefits earned have been frozen and participants no longer accrue benefits after March 1, 2000. There are also two unfunded plans, one that covers a supplemental executive retirement pension relating to an employment agreement and one that pays supplemental pensions to certain former hourly employees pursuant to a prior collective bargaining agreement. All plans have a measurement date of February 28 or 29. During 2010, the Corporation settled a portion of its obligation under the Canadian hourly plan. The Corporation made a contribution to the plan, which was used to purchase annuities for the affected participants. As a result, a settlement expense of $126 was recorded.

The Corporation sponsors a defined benefit health care plan that provides postretirement medical benefits to full-time United States employees who meet certain age, service and other requirements. The plan is contributory, with retiree contributions adjusted periodically, and contains other cost-sharing features such as deductibles and coinsurance. The Corporation maintains a trust for the payment of retiree health care benefits. This trust is funded at the discretion of management. The plan has a measurement date of February 28 or 29. The Corporation made changes to its postretirement health care plan in 2011 by reducing the employer subsidy by the Corporation for certain groups as well as removing the death coverage for the spouses of active employees and removing the disability coverage for disabled employees unless the employee was already eligible for retiree medical coverage at the time of death or disability, respectively.

The following table sets forth summarized information on the defined benefit pension plans and postretirement benefits plan:

	Pension Plans				Postretirement Benefits
	2012		2011		2012		2011
Change in benefit obligation:
Benefit obligation at beginning of year	$	170,160	$	162,845	$	91,035	$	110,921
Service cost		1,106		957		726		2,290
Interest cost		8,353		8,757		3,929		6,014
Participant contributions		29		28		4,585		4,165
Retiree drug subsidy payments		-		-		1,072		1,670
Plan amendments		924		198		-		(7,263)
Actuarial loss (gain)		15,310		5,825		(10,726)		(18,639)
Benefit payments		(11,036)		(10,567)		(8,277)		(8,123)
Settlements		-		52		-		-
Currency exchange rate changes		(502)		2,065		-		-
Benefit obligation at end of year		184,344		170,160		82,344		91,035
Change in plan assets:
Fair value of plan assets at beginning of year		107,881		102,092		66,935		66,928
Actual return on plan assets		7,172		11,311		(1,301)		7,130
Employer contributions		2,736		3,187		(4,379)		(3,165)
Participant contributions		29		28		4,585		4,165
Benefit payments		(11,036)		(10,567)		(8,277)		(8,123)
Settlements		-		52		-		-
Currency exchange rate changes		(441)		1,778		-		-
Fair value of plan assets at end of year		106,341		107,881		57,563		66,935
Funded status at end of year	$	(78,003)	$	(62,279)	$	(24,781)	$	(24,100)

Amounts recognized on the Consolidated Statement of Financial Position consist of the following:

	Pension Plans						Postretirement Benefits
	2012			2011			2012			2011
Accrued compensation and benefits	$	(2,257	)	$	(2,347	)	$	-		$	-
Other liabilities		(75,746	)		(59,932	)		(24,781	)		(24,101	)
Net amount recognized	$	(78,003	)	$	(62,279	)	$	(24,781	)	$	(24,101	)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss (gain)	$	69,632		$	56,938		$	(3,081	)	$	1,268
Net prior service cost (credit)		1,531			847			(8,855	)		(11,316	)
Net transition obligation		37			43			-			-
Accumulated other comprehensive loss (income)	$	71,200		$	57,828		$	(11,936	)	$	(10,048	)

For the defined benefit pension plans, the estimated net loss, prior service cost and transition obligation that will be amortized from accumulated other comprehensive income into periodic benefit cost over the next fiscal year are approximately $3,256, $240 and $6, respectively. For the postretirement benefit plan, the estimated net gain and prior service credit that will be amortized from accumulated other comprehensive income into periodic benefit cost over the next fiscal year are approximately $0 and ($2,750), respectively.

The following table presents significant weighted-average assumptions to determine benefit obligations and net periodic benefit cost:

	Pension Plans		Postretirement Benefits
	2012	2011	2012	2011
Weighted average discount rate used to determine:
Benefit obligations at measurement date
U.S.	4.00-4.25%	5.25%	4.00%	5.50%
International	4.45%	5.15%	N/A	N/A
Net periodic benefit cost
U.S.	5.25%	5.50-5.75%	5.50%	5.75%
International	5.15%	5.50%	N/A	N/A
Expected long-term return on plan assets:
U.S.	7.00%	7.00%	7.00%	7.00%
International	5.50%	5.50%	N/A	N/A
Rate of compensation increase:
U.S.	6.50%	6.50%	N/A	N/A
International	3.00%	3.00%	N/A	N/A
Health care cost trend rates:
For year following February 28 or 29	N/A	N/A	9.50%	10.00%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	N/A	N/A	5.00%	5.00%
Year the rate reaches the ultimate trend rate	N/A	N/A	2021	2021

For 2012, the net periodic pension cost for the pension plans was based on long-term asset rates of return as noted above. In developing these expected long-term rate of return assumptions, consideration was given to expected returns based on the current investment policy and historical return for the asset classes.

For 2012, the Corporation assumed a long-term asset rate of return of 7% to calculate the expected return for the postretirement benefit plan. In developing the 7% expected long-term rate of return assumption, consideration was given to various factors, including a review of asset class return expectations based on historical compounded returns for such asset classes.

		$177,489			$177,489
	2012			2011
Effect of a 1% increase in health care cost trend rate on:
Service cost plus interest cost	$	210		$	915
Accumulated postretirement benefit obligation		3,854			7,571
Effect of a 1% decrease in health care cost trend rate on:
Service cost plus interest cost		(184	)		(739	)
Accumulated postretirement benefit obligation		(3,332	)		(6,030	)

The following table presents selected pension plan information:

	2012		2011
For all pension plans:
Accumulated benefit obligation	$	177,489	$	164,823
For pension plans that are not fully funded:
Projected benefit obligation		184,041		170,160
Accumulated benefit obligation		177,186		164,823
Fair value of plan assets		106,038		107,881

A summary of the components of net periodic benefit cost for the pension plans is as follows:

	2012			2011			2010
Components of net periodic benefit cost:
Service cost	$	1,106		$	957		$	730
Interest cost		8,353			8,757			9,279
Expected return on plan assets		(6,858	)		(6,588	)		(5,637	)
Amortization of transition obligation		6			6			6
Amortization of prior service cost		240			178			261
Amortization of actuarial loss		2,126			133			1,942
Settlements		-			(3	)		126
Net periodic benefit cost		4,973			3,440			6,707
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Actuarial loss		14,996			1,175			6,069
Prior service cost		924			198			53
Amortization of prior service cost		(240	)		(178	)		(261	)
Amortization of actuarial loss		(2,126	)		(133	)		(1,942	)
Amortization of transition obligation		(6	)		(6	)		(6	)
Settlements		-			3			(126	)
Total recognized in other comprehensive income		13,548			1,059			3,787
Total recognized in net periodic benefit cost and other comprehensive income	$	18,521		$	4,499		$	10,494

A summary of the components of net periodic benefit cost for the postretirement benefit plan is as follows:

	2012			2011			2010
Components of net periodic benefit cost:
Service cost	$	726		$	2,290		$	2,365
Interest cost		3,929			6,014			7,359
Expected return on plan assets		(4,310	)		(4,503	)		(4,107	)
Amortization of prior service credit		(2,461	)		(7,712	)		(7,418	)
Amortization of actuarial (gain) loss		(766	)		1,078			2,386
Net periodic benefit cost		(2,882	)		(2,833	)		585
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Actuarial gain		(5,115	)		(21,265	)		(21,723	)
Prior service credit added during the year		-			(7,263	)		-
Amortization of actuarial loss (gain)		766			(1,078	)		(2,386	)
Amortization of prior service credit		2,461			7,712			7,418
Total recognized in other comprehensive income		(1,888	)		(21,894	)		(16,691	)
Total recognized in net periodic benefit cost and other comprehensive income	$	(4,770	)	$	(24,727	)	$	(16,106	)

At February 29, 2012 and February 28, 2011, the assets of the plans are held in trust and allocated as follows:

	Pension Plans						Postretirement Benefits
	2012			2011			2012		2011		Target Allocation
Equity securities:
U.S.		51	%		51	%		30%		43%	15%-30%
International		31	%		31	%		N/A		N/A	N/A
Debt securities:
U.S.		48	%		48	%		69%		54%	65%-85%
International		64	%		67	%		N/A		N/A	N/A
Cash and cash equivalents:
U.S.		1	%		1	%		1%		3%	0%-15%
International		5	%		2	%		N/A		N/A	N/A

As of February 29, 2012, the investment policy for the U.S. pension plans targets an approximately even distribution between equity securities and debt securities with a minimal level of cash maintained in order to meet obligations as they come due. The investment policy for the international pension plans targets an approximately 30/65/5 distribution between equity securities, debt securities and cash and cash equivalents.

The investment policy for the postretirement benefit plan targets a distribution among equity securities, debt securities and cash and cash equivalents as noted above. All investments are actively managed, with debt securities averaging approximately 2.5 years to maturity with a credit rating of ‘A’ or better. This policy is subject to review and change.

The following table summarizes the fair value of the defined benefit pension plan assets at February 29, 2012:

	Fair value at February 29, 2012		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
U.S. plans:
Short-term investments	$	710	$	-	$	710
Equity securities (collective funds)		41,322		-		41,322
Fixed-income funds		39,510		-		39,510
International plans:
Short-term investments		1,163		-		1,163
Equity securities (collective funds)		7,753		-		7,753
Fixed-income funds		15,883		-		15,883
Total:	$	106,341	$	-	$	106,341

The following table summarizes the fair value of the defined benefit pension plan assets at February 28, 2011:

	Fair value at February 28, 2011		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
U.S. plans:
Short-term investments	$	689	$	-	$	689
Equity securities (collective funds)		42,776		-		42,776
Fixed-income funds		40,717		-		40,717
International plans:
Short-term investments		639		-		639
Equity securities (collective funds)		7,191		-		7,191
Fixed-income funds		15,869		-		15,869
Total:	$	107,881	$	-	$	107,881

The following table summarizes the fair value of the postretirement benefit plan assets at February 29, 2012:

	Fair value at February 29, 2012		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
Short-term investments	$	849	$	-	$	849
Equity securities (common stocks)		17,245		17,245		-
Fixed-income funds		39,469		-		39,469
Total:	$	57,563	$	17,245	$	40,318

The following table summarizes the fair value of the postretirement benefit plan assets at February 28, 2011:

	Fair value at February 28, 2011		Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)
Short-term investments	$	1,176	$	-	$	1,176
Equity securities (common stocks)		29,229		29,229		-
Fixed-income funds		36,530		-		36,530
Total:	$	66,935	$	29,229	$	37,706

Short-term investments:    Short-term investments, which are primarily money market funds, are valued based on exit prices or net asset values. These investments are generally classified as Level 2 since the valuations use observable inputs.

Equity securities:    The fair value of collective funds is valued at the closing net asset value or at the executed exchange trade prices. Pricing for these securities is typically provided by a recognized pricing service. Generally, these collective fund investments are classified as Level 2 because the valuations are based on observable inputs. Common stock is valued at the closing price reported on the active market on which the individual securities are traded. The investment in common stocks is classified as Level 1 because a quoted price in an active market is available.

Fixed-income funds:    Fixed income funds primarily consist of U.S. and foreign-issued corporate notes and bonds, convertible bonds, asset-backed securities, government agency obligations, government obligations, municipal bonds and interest-bearing commercial paper. The fair value of these securities is valued using evaluated prices provided by a recognized pricing service. Because the evaluated prices are based on observable inputs, such as dealer quotes, available trade information, spread, bids and offers, prepayment speeds, U.S. Treasury curves and interest rate movements, securities in this category are classified as Level 2.

Although the Corporation does not anticipate that contributions to the Gibson Retirement Plan will be required in 2013, it may make contributions in excess of the legally required minimum contribution level. Any voluntary contributions by the Corporation are not expected to exceed deductible limits in accordance with Internal Revenue Service (“IRS”) regulations.

Based on historic patterns and currently scheduled benefit payments, the Corporation expects to contribute $2,111 to the Supplemental Executive Retirement Plan in 2013. The plan is a nonqualified and unfunded plan, and annual contributions, which are equal to benefit payments, are made from the Corporation’s general funds.

In addition, the Corporation expects to contribute $200 to the postretirement benefit plan in 2013.

The benefits expected to be paid out are as follows:

	Pension Plans		Postretirement Benefits
			Excluding Effect  of Medicare Part D Subsidy		Including Effect  of Medicare Part D Subsidy
2013	$	11,024	$	5,325	$	4,610
2014		11,230		5,370		4,703
2015		11,315		5,454		4,730
2016		11,161		5,547		4,754
2017		11,496		5,584		5,390
2018 – 2022		57,264		27,996		27,046