PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2012

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS [Abstract]

Changes in benefit obligations and plan assets and funded status and weighted-average assumptions used to determine the benefit obligation

The following table presents the changes in benefit obligations and plan assets for the years ended December 31 and the funded status and weighted-average assumptions used to determine the benefit obligation at each year end (dollars in thousands):

	2012									2011
	Pension benefits			Other benefits			Total			Pension benefits			Other benefits			Total
Projected benefit obligations:
Balance, January 1	$	690,351		$	87,059		$	777,410		$	581,329		$	82,527		$	663,856
Interest cost		30,613			3,501			34,114			31,359			4,122			35,481
Service cost		10,742			1,660			12,402			11,882			2,011			13,893
Actuarial (gain) loss		53,273			(11,771	)		41,502			86,200			6,757			92,957
Special termination benefits		-			-			-			104			396			500
Plan amendments		(963	)		-			(963	)		-			-			-
Plan settlements		(19,047	)		-			(19,047	)		-			-			-
Plan curtailments		-			-			-			4,690			(5,773	)		(1,083	)
Benefits paid		(31,614	)		(3,810	)		(35,424	)		(25,213	)		(2,981	)		(28,194	)
Balance, December 31		733,355			76,639			809,994			690,351			87,059			777,410
Plan assets:
Fair value, January 1		448,406			-			448,406			421,940			-			421,940
Actual return		54,632			-			54,632			(1,715	)		-			(1,715	)
Employer contributions		42,055			-			42,055			53,394			-			53,394
Plan settlements		(19,047	)		-			(19,047	)		-			-			-
Benefits paid		(31,614	)		-			(31,614	)		(25,213	)		-			(25,213	)
Fair value, December 31		494,432			-			494,432			448,406			-			448,406
Net benefit liabilities	$	(238,923	)	$	(76,639	)	$	(315,562	)	$	(241,945	)	$	(87,059	)	$	(329,004	)
Amounts recognized in Consolidated Balance Sheet:
Accrued liabilities	$	(19,042	)	$	(4,350	)	$	(23,392	)	$	(50,554	)	$	(4,690	)	$	(55,244	)
Other liabilities (long-term)		(219,881	)		(72,289	)		(292,170	)		(191,391	)		(82,369	)		(273,760	)
Net benefit liabilities	$	(238,923	)	$	(76,639	)	$	(315,562	)	$	(241,945	)	$	(87,059	)	$	(329,004	)
Accumulated contributions in excess of (less than) net periodic benefit cost	$	99,554		$	(74,990	)	$	24,564		$	91,495		$	(73,312	)	$	18,183
Amounts not yet reflected in net periodic benefit cost:
Actuarial loss		(371,452	)		(1,827	)		(373,279	)		(370,098	)		(13,599	)		(383,697	)
Transition obligation		-			-			-			-			(474	)		(474	)
Prior service credit		32,975			178			33,153			36,658			326			36,984
Total accumulated other comprehensive loss		(338,477	)		(1,649	)		(340,126	)		(333,440	)		(13,747	)		(347,187	)
Net benefit liabilities	$	(238,923	)	$	(76,639	)	$	(315,562	)	$	(241,945	)	$	(87,059	)	$	(329,004	)
Weighted-average assumptions:
Discount rate		4.17	%		3.89	%					4.56	%		4.46	%
Rate of compensation increase		4.15	%								4.15	%

Accumulated benefit obligations

The projected benefit obligations (PBO) for pension benefits in the preceding table reflect the actuarial present value of benefits accrued based on services rendered to date and include the estimated effect of future salary increases.  The accumulated benefit obligations (ABO), which are presented below for all plans in the aggregate at December 31, are based on services rendered to date, but exclude the effect of future salary increases (in thousands):

	2012		2011
Accumulated benefit obligation	$	732,657	$	690,148

Amounts amortized from accumulated other comprehensive to net periodic benefits cost

The Company estimates the following amounts, which are classified in accumulated other comprehensive loss, a component of shareholders' equity, will be recognized as net periodic benefit cost in 2013 (in thousands):

	Pension benefits			Other retirement benefits			Total
Actuarial loss	$	27,478		$	-		$	27,478
Prior service cost (credit)		(4,736	)		(147	)		(4,883	)
Total amortization	$	22,742		$	(147	)	$	22,595

Components of net periodic pension cost and weighted-average assumptions used to determine net cost

The components of net periodic pension cost and the weighted-average assumptions used to determine net cost were as follows (dollars in thousands):

	2012			2011			2010
Service cost	$	10,742		$	11,882		$	14,411
Interest cost		30,613			31,359			30,713
Expected return on plan assets		(36,958	)		(34,008	)		(30,640	)
Recognized actuarial loss		25,504			21,515			19,393
Amortization of prior service cost		(4,647	)		(6,001	)		(6,677	)
Curtailment (gain) loss recognized		-			(12,014	)		-
Settlement loss recognized		8,742			-			-
Special termination benefit recognized		-			104			-
Net periodic pension cost	$	33,996		$	12,837		$	27,200
Less: Discontinued operations		(402	)		6,598			(12,765	)
Continuing operations	$	33,594		$	19,435		$	14,435
Discount rate		4.58	%		5.36	%		5.97	%
Expected return on plan assets		8.00	%		8.00	%		8.00	%
Rate of compensation increase		4.15	%		4.15	%		4.15	%

The components of net periodic cost of other postretirement benefits and the weighted average discount rate used to determine net cost were as follows (dollars in thousands):

	2012			2011			2010
Service cost	$	1,660		$	2,011		$	1,955
Interest cost		3,501			4,122			4,284
Recognized actuarial loss		-			233			64
Amortization of transition obligation		475			600			662
Amortization of prior service cost		(147	)		(185	)		(204	)
Special termination benefit recognized		-			396			-
Curtailment loss recognized		-			102			-
Net periodic cost of other postretirement benefits	$	5,489		$	7,279		$	6,761
Less: Discontinued operations		-			(1,618	)		(2,390	)
Continuing operations	$	5,489		$	5,661		$	4,371
Discount rate		4.46	%		5.14	%		5.83	%

Effect of one-percentage-point change in assumed health care cost trend rates

The assumed health care cost trend rates used to measure the expected cost of retirement health benefits was 8.1% for 2013, gradually decreasing to 4.5% for 2029 and thereafter. A one-percentage-point change in the assumed health care cost trend rates would change the reported amounts as follows (in thousands):

	One-percentage-point change
	Increase		Decrease
Effect on total service and interest cost components for the year	$	410	$	(351	)
Effect on postretirement benefit obligation at year-end		4,983		(4,276	)

Target allocations among asset categories and fair values of each category of plan assets, classified by level within fair value hierarchy

Target allocations among asset categories and the fair values of each category of plan assets as of December 31, 2012 and 2011, classified by level within the US GAAP fair value hierarchy is presented below.  The plans will periodically reallocate assets in accordance with the allocation targets, after giving consideration to the expected level of cash required to pay current benefits and plan expenses (dollars in thousands):

	Target range	Total		Quoted prices in active markets for identical assets (Level 1)		Significant observable inputs (Level 2)		Significant unobservable inputs (Level 3)
December 31, 2012:
U.S. equities:	23% to 29%
S&P 500 stock index	18% to 24%	$	108,306	$	108,306	$	-	$	-
Small cap growth	0% to 5%		11,953		11,953		-		-
Small cap value	0% to 5%		12,891		12,891		-		-
Non-U.S. equities:	22% to 30%
MSCI World Index	17% to 25%		103,064		-		103,064		-
Non-US small cap	2% to 8%		23,984		-		23,984		-
Real estate equities	0% to 13%		37,899		-		37,899		-
Fixed income:	25% to 35%
Cash and equivalents	0% to 10%		14,719		1		14,718		-
Aggregate	10% to 20%		67,460		-		67,460		-
Core plus	10% to 20%		66,482		66,482		-		-
Other	0% to 26%		47,674		-		-		47,674
Total		$	494,432	$	199,633	$	247,125	$	47,674
December 31, 2011:
U.S. equities:	32.5% to 62.5%
S&P 500 stock index	22.5% to 52.5%	$	168,910	$	168,910	$	-	$	-
Small cap growth	0% to 10%		22,462		22,462		-		-
Small cap value	0% to 10%		20,425		20,425		-		-
Non-U.S. equities	10% to 30%		77,270		-		77,270		-
Real estate equities	0% to 10%		21,951		-		21,951		-
Fixed income:	22.5% to 32.5%
Cash and equivalents	0% to 10%		11,442		1		11,441		-
Aggregate	10% to 16%		64,703		-		64,703		-
Core plus	7.5% to 17.5%		61,243		61,243		-		-
Total		$	448,406	$	273,041	$	175,365	$	-

Summary of the Changes in Level 3 Plan Assets

Set forth below is a summary of the changes in Level 3 plan assets (in thousands):

Balance at December 31, 2011	$	-
Purchases		46,000
Investment returns		1,674
Balance at December 31, 2012	$	47,674

Estimated future annual payments for pension and other postretirement benefits

Estimated future annual payments for pension and other postretirement benefits, including those paid by the plans and directly by the Company, are presented below.  Such amounts are based on existing benefit formulas and include the effect of future service (in thousands):

	Pension benefits		Other postretirement benefits
Year ended December 31,
2013	$	46,000	$	4,670
2014		34,280		4,890
2015		36,140		5,240
2016		37,570		5,610
2017		38,270		5,830
2018 though 2022		214,300		27,050