Other Postretirement Benefits

We provide health benefits to retired employees (and their eligible dependents) who meet the definition of an eligible participant and certain age and service requirements, as outlined in the plan document. While we offer pre-age 65 retiree medical coverage to employees who meet certain retiree medical eligibility requirements, we no longer provide post-age 65 retiree medical benefits for employees who retired on or after March 1, 2009. We also contribute to a postretirement plan for Guild employees of New York Times Newspaper under the provisions of a collective bargaining agreement. We accrue the costs of postretirement benefits during the employees’ active years of service and our policy is to pay our portion of insurance premiums and claims from our assets.

In the fourth quarter of 2013, we completed the sale of the New England Media Group, consisting of The Boston Globe, BostonGlobe.com, Boston.com, the Worcester Telegram & Gazette (“T&G”), Telegram.com and related properties. As a result of the sale, the Company recorded a $49.1 million post-retirement curtailment gain in 2013, which is included in the gain on sale within “(Loss)/income from discontinued operations, net of income taxes” in the Consolidated Statement of Operations. This gain is primarily related to an acceleration of prior service credits from plan amendments announced in prior years, and is due to a reduction in the expected years of future Company service for employees at the New England Media Group.

In the first quarter of 2012, we sold the Regional Media Group. The sale significantly reduced the expected years of future service for current employees, resulting in a remeasurement and curtailment of a postretirement benefit plan. We recognized a curtailment gain of $27.2 million in the first quarter of 2012, which is included in the gain on the sale within “(Loss)/income from discontinued operations, net of income taxes” in the Consolidated Statement of Operations.

In October 2011, we amended our retiree medical plan by, among other things, placing a cap (effective January 1, 2012) on our contributions for certain retiree groups. In connection with this plan amendment, we remeasured our postretirement obligation as of the plan amendment date. The plan amendment and remeasurement resulted in a decrease in the postretirement liability and an increase in other comprehensive income (before taxes) of approximately $20.0 million in October 2011.

The components of net periodic postretirement benefit income were as follows:



(In thousands)	December 29, 2013			December 30, 2012			December 25, 2011
Service cost	$	1,089		$	957		$	1,143
Interest cost	4,101			4,985			6,891
Recognized actuarial loss	4,440			3,328			2,289
Amortization of prior service credit	(13,051		)	(15,112		)	(16,593		)
Effect of curtailment	(49,122		)	(27,213		)	—
Net periodic postretirement benefit income	$	(52,543	)	$	(33,055	)	$	(6,270	)

The changes in the benefit obligations recognized in other comprehensive loss were as follows:



(In thousands)	December 29, 2013			December 30, 2012			December 25, 2011
Net actuarial loss/(gain)	$	(13,500	)	$	11,562		$	13,436
Prior service credit	(1,690		)	—			(35,712		)
Amortization of loss	(4,440		)	(3,328		)	(2,289		)
Amortization of prior service credit	13,051			15,112			16,593
Recognition of prior service credit due to curtailment	49,122			27,213			—
Total recognized in other comprehensive loss/(income)	42,543			50,559			(7,972		)
Net periodic postretirement benefit income	(52,543		)	(33,055		)	(6,270		)
Total recognized in net periodic postretirement benefit income and other comprehensive loss	$	(10,000	)	$	17,504		$	(14,242	)

The estimated actuarial loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is approximately $5 million and $6 million, respectively.

In connection with collective bargaining agreements, we contribute to several multiemployer welfare plans. These plans provide medical benefits to active and retired employees covered under the respective collective bargaining agreement. Contributions are made in accordance with the formula in the relevant agreement. Postretirement costs related to these plans are not reflected above and were approximately $20.0 million in 2013, $18 million in 2012 and $16 million in 2011.

The changes in the benefit obligation and plan assets and other amounts recognized in other comprehensive income/loss were as follows:



(In thousands)	December 29, 2013			December 30, 2012
Change in benefit obligation
Benefit obligation at beginning of year	$	120,767		$	113,803
Service cost	1,089			957
Interest cost	4,101			4,985
Plan participants’ contributions	4,861			4,383
Actuarial (gain)/loss	(13,501		)	11,562
Plan amendments	(1,690		)	—
Benefits paid	(14,695		)	(15,881		)
Medicare subsidies received	—			958
Benefit obligation at the end of year	100,932			120,767
Change in plan assets
Fair value of plan assets at beginning of year	—			—
Employer contributions	9,834			10,540
Plan participants’ contributions	4,861			4,383
Benefits paid	(14,695		)	(15,881		)
Medicare subsidies received	—			958
Fair value of plan assets at end of year	—			—
Net amount recognized	$	(100,932	)	$	(120,767	)
Amount recognized in the Consolidated Balance Sheets
Current liabilities	$	(10,329	)	$	(10,420	)
Noncurrent liabilities	(90,603		)	(110,347		)
Net amount recognized	$	(100,932	)	$	(120,767	)
Amount recognized in accumulated other comprehensive loss
Actuarial loss	$	33,406		$	51,346
Prior service credit	(33,660		)	(94,143		)
Total	$	(254	)	$	(42,797	)

Weighted-average assumptions used in the actuarial computations to determine the postretirement benefit obligations were as follows:



	December 29, 2013		December 30, 2012
Discount rate	4.22	%	3.49	%
Estimated increase in compensation level	3.50	%	3.50	%

Weighted-average assumptions used in the actuarial computations to determine net periodic postretirement cost were as follows:



	December 29, 2013		December 30, 2012		December 25, 2011
Discount rate	3.70	%	4.66	%	5.14	%
Estimated increase in compensation level	3.50	%	3.50	%	3.50	%

The assumed health-care cost trend rates were as follows:



	December 29, 2013		December 30, 2012
Health-care cost trend rate assumed next year	8.00	%	8.00	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2023		2023

Because our health-care plans are capped for most participants, the assumed health-care cost trend rates do not have a significant effect on the amounts reported for the health-care plans. A one-percentage point change in assumed health-care cost trend rates would have the following effects:



	One-Percentage Point
(In thousands)	Increase		Decrease
Effect on total service and interest cost for 2013	$	87	$	(82	)
Effect on accumulated postretirement benefit obligation as of December 30, 2013	$	2,057	$	(1,952	)

The following benefit payments (net of plan participant contributions) under our Company’s postretirement plans, which reflect expected future services, are expected to be paid:



(In thousands)	Amount
2014	$	10,596
2015	10,175
2016	9,769
2017	9,356
2018	8,938
2019-2023	36,937

We accrue the cost of certain benefits provided to former or inactive employees after employment, but before retirement. The cost is recognized only when it is probable and can be estimated. Benefits include life insurance, disability benefits and health-care continuation coverage. The accrued cost of these benefits amounted to $16.2 million as of December 29, 2013 and $19.9 million as of December 30, 2012.