Pensions and other postretirement benefits (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Pension Plan Benefit to Participants

Benefit payments to plan participants, which reflect expected future service, as appropriate, are expected to be the equivalent of:


	Pension Benefits		Other Benefits
	(In thousands)
2013⁽¹⁾	$	31,376	$	1,194
2014		28,527		3,996
2015		28,572		3,933
2016		28,650		3,863
2017		28,568		3,789
Next 5 years	$	142,233	$	17,673

(1)	Pension benefits in 2013 include expected supplemental pension benefits of $2.9 million, created in lieu of the payments that would have been due under one of our OPEB plans, which are excluded from the other benefit payments.

Schedule of Funded Status and Reconciliation of Changes in Plans and Fair Value of Assets

The following tables provide the funded status of our plans and a reconciliation of the changes in our plans’ projected benefit obligations and fair value of assets for the years ended December 31, 2011 and 2012:


	Pension Benefits						Other Benefits
	2011			2012			2011			2012
	(In thousands)

Change in projected benefit obligations (“PBO”):
Balance at beginning of the year	$	394,556		$	453,723		$	46,526		$	51,690
Service cost		3,419			4,593			118			154
Interest cost		19,151			17,664			2,288			2,036
Actuarial losses		64,391			30,145			6,664			4,425
Benefits paid		(30,561	)		(30,289	)		(1,139	)		(1,284	)
OPEB benefits extinguished by increased pension benefits		2,767			2,787			(2,767	)		(2,787	)


Balance at end of the year	$	453,723		$	478,623		$	51,690		$	54,234


Change in plan assets:
Fair value at beginning of the year	$	548,518		$	503,778		$	—			—
Actual return (loss) on plan assets		(14,179	)		80,234			—			—
Employer contributions		—			—			1,139			1,284
Benefits paid		(30,561	)		(30,289	)		(1,139	)		(1,284	)


Fair value at end of the year	$	503,778		$	553,723		$	—		$	—


Funded status	$	50,055		$	75,100		$	(51,690	)	$	(54,234	)


Amounts recognized in the Consolidated Balance Sheets:
Pension asset	$	71,719		$	102,962		$	—		$	—
Noncurrent accrued pension costs		(21,664	)		(27,862	)		—			—
Accrued OPEB costs:
Current		—			—			(1,220	)		(1,194	)
Noncurrent		—			—			(50,470	)		(53,040	)

	$	50,055		$	75,100		$	(51,690	)	$	(54,234	)


Accumulated other comprehensive loss (income):
Prior service cost (credit)		7,664			6,432			(100,335	)		(84,164	)
Actuarial losses		306,835			287,091			83,741			80,258

		314,499			293,523			(16,594	)		(3,906	)


Total	$	364,554		$	368,623		$	(68,284	)	$	(58,140	)


Accumulated benefit obligations (“ABO”) of pension plans	$	446,019		$	468,258

Schedule of Plans for which Accumulated Benefit Obligations Exceeds Plan Assets

Pension plan for which the accumulated benefit obligation exceeds plan assets:
Projected benefit obligation	$	117,532	$	138,583
Accumulated benefit obligation		109,829		128,218
Fair value of plan assets		95,868		110,721

Summary of Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)

The table below details the changes in other comprehensive income (loss) for the years ended December 31, 2010, 2011 and 2012.


	Pension Benefits							Other Benefits
	2010		2011			2012		2010			2011			2012
	(In thousands)

Changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net actuarial gain (loss) arising during the year	$	50,808	$	(134,066	)	$	1,270	$	(2,561	)	$	(6,664	)	$	(4,425	)
Amortization of prior service cost (credit)		1,232		1,232			1,232		(16,170	)		(16,170	)		(16,170	)
Amortization of net actuarial losses		15,389		7,306			18,472		8,317			7,965			7,905


Total	$	67,429	$	(125,528	)	$	20,974	$	(10,413	)	$	(14,869	)	$	(12,690	)

Schedule of Components of Net Periodic Cost or Credits

The components of our net periodic defined benefit cost or credits are presented in the table below. During 2010, 2011 and 2012, the amounts shown below for the amortization of actuarial gains and losses and prior service credits and costs, net of deferred income taxes, were recognized as components of our accumulated other comprehensive income (loss) at December 31, 2009, 2010 and 2011, respectively.


	Pension Benefits									Other Benefits
	2010			2011			2012			2010			2011			2012
	(In thousands)

Service cost	$	3,218		$	3,419		$	4,593		$	106		$	118		$	154
Interest cost		20,161			19,151			17,664			2,489			2,288			2,036
Expected return on plan assets		(44,654	)		(55,496	)		(48,819	)		—			—			—
Amortization of prior service cost (credit)		1,232			1,232			1,232			(16,170	)		(16,170	)		(16,170	)
Amortization of net actuarial losses		15,389			7,306			18,472			8,317			7,965			7,905

Total benefit credit	$	(4,654	)	$	(24,388	)	$	(6,858	)	$	(5,258	)	$	(5,799	)	$	(6,075	)

Aggregate Fair Value of CMRT Assets

The aggregate fair value of all of the CMRT assets, including funds of Contran and its other affiliates that also invest in the CMRT, and supplemental asset mix details of the CMRT as of December 31, 2011 and 2012, are as follows:


	December 31,
	2011			2012
	($ in millions)

CMRT asset value	$	666.6		$	731.0

CMRT fair value input:
Level 1		82	%		82	%
Level 2		1			1
Level 3		17			17

		100	%		100	%


CMRT asset mix:
Domestic equities, principally publically traded		75	%		43	%
International equities, publically traded		2			2
Fixed income securities, publically traded		14			11
Privately managed limited partnerships		8			8
Other, primarily cash		1			36

		100	%		100	%

Benefit Obligations [Member]

Summary of Key Actuarial Assumptions Used

A summary of our key actuarial assumptions used to determine the present value of benefit obligations as of December 31, 2011 and 2012 are shown in the following table:


	Pension Benefits						Other Benefits
	2011			2012			2011			2012
Discount rate		4.0	%		3.5	%		4.0	%		3.4	%
Rate of compensation increase		3.6	%		3.6	%		—			—

Net periodic pension and other retiree benefit credit or expense [Member]

Summary of Key Actuarial Assumptions Used

A summary of our key actuarial assumptions used to determine the net periodic pension and other retiree benefit credit or expense during 2010, 2011 and 2012 are shown in the following table:


	Pension Benefits									Other Benefits
	2010			2011			2012			2010			2011			2012
Discount rate		5.6	%		5.1	%		4.0	%		5.5	%		5.0	%		4.0	%
Expected return on plan assets		10.0	%		10.0	%		10.0	%		—			—			—
Rate of compensation increase		3.6	%		3.6	%		3.6	%		—			—			—