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EMPLOYEE BENEFIT PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables)
12 Months Ended
Dec. 31, 2012
Schedule of Pension and Postretirement Benefit Plans

The following tables provide information related to the Company’s pension and postretirement benefit plans.

 

     Pension Plans     Postretirement Plans  
     2012     2011     2010     2012     2011     2010  
     (In thousands)  

Change in Benefit Obligation

            

Benefit obligation at beginning of period

   $ 314,155      $ 246,985      $ 203,292      $ 25,937      $ 23,215      $ 20,080   

Service cost

     22,424        19,808        18,315        1,856        1,599        1,399   

Interest cost

     14,800        13,473        12,091        1,241        1,189        1,130   

Plan amendments

     2,271        1,827        837        2,266                 

Actuarial loss

     29,338        35,399        15,153        1,698        755        1,931   

Participant contributions

                          1,055        942        838   

Benefits paid

     (4,274     (3,337     (2,703     (2,247     (1,763     (2,163
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Benefit obligation at plan year end

   $ 378,714      $ 314,155      $ 246,985      $ 31,806      $ 25,937      $ 23,215   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Accumulated benefit obligation portion of above

   $ 341,729      $ 280,820      $ 214,676         
  

 

 

   

 

 

   

 

 

       

Change in Fair Value of Plan Assets

            

Plan assets at fair value at beginning of period

   $ 185,122      $ 167,033      $ 140,065      $      $      $   

Actual return on plan assets

     21,527        (732     14,457                        

Company contributions

     35,984        22,158        15,214        1,192        821        1,325   

Participant contributions

                          1,055        942        838   

Benefits paid

     (4,274     (3,337     (2,703     (2,247     (1,763     (2,163
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets at plan year end

   $ 238,359      $ 185,122      $ 167,033      $      $      $   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     Pension Plans     Postretirement Plans  
     December 31,
2012
    December 31,
2011
    December 31,
2012
    December 31,
2011
 
     (In thousands)  

Development of Net Amount Recognized

        

Benefit obligation in excess of plan assets at December 31

   $ (140,355   $ (129,033   $ (31,806   $ (25,937
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts Recognized in Statement of Financial Position

        

Current liabilities

   $ (6,290   $ (5,232   $ (1,333   $ (1,052

Noncurrent liabilities

     (134,065     (123,801     (30,473     (24,885
  

 

 

   

 

 

   

 

 

   

 

 

 

Accrued benefit recognized at December 31

   $ (140,355   $ (129,033   $ (31,806   $ (25,937
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts Recognized in Accumulated Other Comprehensive (Income) Loss, Net of Tax

        

Prior service cost

   $ 21,309      $ 23,573      $ (216   $ (481

Actuarial loss

     54,951        45,791        5,955        5,193   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 76,260      $ 69,364      $ 5,739      $ 4,712   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     Pension Plans     Postretirement Plans  
     2012     2011     2010     2012     2011     2010  
     (In thousands)  

Components of Net Periodic Benefit Cost

            

Service cost for benefits earned during the year

   $ 22,424      $ 19,808      $ 18,315      $ 1,856      $ 1,599      $ 1,399   

Interest cost on accumulated benefit obligation

     14,800        13,473        12,091        1,241        1,189        1,130   

Expected return on plan assets

     (12,108     (13,544     (11,207                     

Net amortization of unrecognized amounts

            

Prior service cost

     5,993        5,782        5,685        (419     (416     (416

Actuarial loss

     4,916        411        247        452        449        342   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic benefit cost

   $ 36,025      $ 25,930      $ 25,131      $ 3,130      $ 2,821      $ 2,455   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Schedule of Weighted-Average Assumptions Used To Determine Benefit and Net Periodic Benefit Cost

For the year ended December 31, 2013, the Company expects to recognize in net periodic benefit cost $6.2 million ($3.8 million net of tax) and $(0.4) million ($0.3 million net of tax) of prior service cost for pension and postretirement plans, respectively, and $6.0 million ($3.7 million net of tax) and $0.5 million ($0.3 million net of tax) of actuarial loss for pension and postretirement plans, respectively, which is included in accumulated other comprehensive income (loss) at December 31, 2012.

 

     Pension Plans     Postretirement Plans  
     2012     2011     2010     2012     2011     2010  

Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31

            

Discount rate

     4.25     4.75     5.50     4.00     4.50     5.25

Rate of compensation increase

     4.00     4.00     4.00     N/A        N/A        N/A   

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for the Years Ended December 31

            

Discount rate

     4.75     5.50     6.00     4.50     5.25     5.75

Expected return on plan assets

     6.15     7.75     7.75     N/A        N/A        N/A   

Rate of compensation increase

     4.00     4.00     4.00     N/A        N/A        N/A   
Schedule of Assumed Health Care Cost Trend Rates For Its Postretirement Benefits

The Company assumed health care cost trend rates for its postretirement benefits plans were as follows:

 

     2012     2011     2010  

Health care cost trend rate assumed for next year

     8.00     8.00     7.50

Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)

     5.00     5.50     5.00

Year that the rate reaches the ultimate trend rate

     2020        2016        2016   
Schedule of Effects of One-Percentage Point Change In Assumed Health Care Cost Trend Rates on Its Postretirement Benefits

A one-percentage point change in assumed health care cost trend rates would have the following effects on the 2012 postretirement benefit obligation and the 2012 net post retirement benefit cost:

 

     1-Percentage
Point Increase
     1-Percentage
Point Decrease
 
     (In thousands)  

Effect on postretirement benefit obligation

   $ 647       $ (575

Effect on net postretirement benefit cost

     59         (51
Schedule of Pension Plans' Assets Investments

Pension plans’ assets were invested in the following classes of securities at December 31, 2012 and 2011:

 

     Percentage
of Fair Value
 
     2012     2011  

Equity securities

     39     36

Debt securities

     61     63

Other

         1
Schedule of Pension Plans' Assets Fair Value Measured On a Recurring Basis

The fair values of PCA’s pension plans’ assets at December 31, 2012 and 2011, measured on a recurring basis, by asset category are as follows:

 

     Fair Value Measurements at December 31, 2012  

Asset Category

   Total      Quoted Prices in Active
Markets for identical
Assets (Level 1)
     Significant Other
Observable
Inputs (Level 2)
     Significant
Unobservable
Inputs (Level 3)
 
     (In thousands)  

Short-term investments

   $ 394       $       $ 394       $   

Equity securities:

           

U.S. large value

     15,021         15,021                   

U.S. large growth

     12,029         12,029                   

U.S. mid-cap value

     2,481         2,481                   

U.S. mid-cap growth

     4,734         4,734                   

U.S. small blend

     5,033                 5,033           

Foreign large blend

     39,204         39,204                   

Diversified emerging markets

     7,722         7,722                   

Real estate

     6,881         6,881                   

Debt securities:

           

Government bonds

     29,644                 29,644           

Corporate bonds

     115,216         48,699         66,517           
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 238,359       $ 136,771       $ 101,588       $   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Fair Value Measurements at December 31, 2011  

Asset Category

   Total      Quoted Prices in Active
Markets for identical
Assets (Level 1)
     Significant Other
Observable
Inputs (Level 2)
     Significant
Unobservable
Inputs (Level 3)
 
     (In thousands)  

Short-term investments

   $ 1,257       $       $ 1,257       $   

Equity securities:

           

U.S. large value

     11,272         11,272                   

U.S. large growth

     9,172         9,172                   

U.S. mid-cap value

     1,914         1,914                   

U.S. mid-cap growth

     3,684         3,684                   

U.S. small blend

     3,784                 3,784           

Foreign large blend

     27,164         27,164                   

Diversified emerging markets

     5,306         5,306                   

Real estate

     5,405         5,405                   

Debt securities:

           

Government bonds

     24,372                 24,372           

Corporate bonds

     91,792         36,929         54,863           
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 185,122       $ 100,846       $ 84,276       $   
  

 

 

    

 

 

    

 

 

    

 

 

 
Schedule of Estimated Benefit Payments

The following are estimated benefit payments to be paid to current plan participants by year:

 

     Pension Plans      Postretirement Plans  
     (In thousands)  

2013

   $ 6,290       $ 1,333   

2014

     7,926         1,430   

2015

     9,719         1,508   

2016

     11,500         1,639   

2017

     13,304         1,821   

2018 — 2022

     97,293         11,707