Domestic Plans. Viad has trusteed, frozen defined benefit pension plans that cover certain employees which are funded by the Company. Viad also maintains certain unfunded defined benefit pension plans which provide supplemental benefits to select management employees. These plans use traditional defined benefit formulas based on years of service and final average compensation. Funding policies provide that payments to defined benefit pension trusts shall be at least equal to the minimum funding required by applicable regulations.

Viad also has certain defined benefit postretirement plans that provide medical and life insurance for certain eligible employees, retirees and dependents. The related postretirement benefit liabilities are recognized over the period that services are provided by employees. In addition, Viad retained the obligations for these benefits for retirees of certain sold businesses. While the plans have no funding requirements, Viad may fund the plans.

The components of net periodic benefit cost and other amounts recognized in other comprehensive income of Viad’s pension plans included the following:



(in thousands)	2013			2012			2011
Net periodic benefit cost:
Service cost	$	66		$	104		$	121
Interest cost	1,030			1,150			1,189
Expected return on plan assets	(400		)	(406		)	(563		)
Recognized net actuarial loss	583			491			457
Net periodic benefit cost	1,279			1,339			1,204
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss (gain)	(2,565		)	1,942			1,589
Reversal of amortization item:
Net actuarial loss	(583		)	(491		)	(457		)
Total recognized in other comprehensive income (loss)	(3,148		)	1,451			1,132
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(1,869	)	$	2,790		$	2,336

The components of net periodic benefit cost and other amounts recognized in other comprehensive income of Viad’s postretirement benefit plans included the following:



(in thousands)	2013			2012			2011
Net periodic benefit cost:
Service cost	$	156		$	146		$	128
Interest cost	663			814			868
Expected return on plan assets	—			(74		)	(135		)
Amortization of prior service credit	(902		)	(1,113		)	(1,277		)
Recognized net actuarial loss	518			547			533
Net periodic benefit cost	435			320			117
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss (gain)	(1,496		)	224			24
Prior service credit	(40		)	—			—
Reversal of amortization item:
Net actuarial loss	(518		)	(547		)	(533		)
Prior service credit	902			1,113			1,277
Total recognized in other comprehensive income (loss)	(1,152		)	790			768
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(717	)	$	1,110		$	885

The following table indicates the funded status of the plans as of December 31:



													Postretirement Benefit Plans
	Funded Plans						Unfunded Plans						Postretirement Benefit Plans
(in thousands)	2013			2012			2013			2012			2013			2012
Change in benefit obligation:
Benefit obligation at beginning of year	$	15,348		$	13,938		$	11,570		$	10,883		$	18,701		$	18,667
Service cost	—			—			66			104			156			146
Interest cost	608			659			422			491			663			814
Actuarial adjustments	(1,530		)	1,419			(856		)	799			(1,631		)	250
Plan amendments	—			—			—			—			(40		)	—
Benefits paid	(991		)	(668		)	(666		)	(707		)	(930		)	(1,176		)
Benefit obligation at end of year	13,435			15,348			10,536			11,570			16,919			18,701
Change in plan assets:
Fair value of plan assets at beginning of year	10,624			9,846			—			—			1,397			2,118
Actual return on plan assets	580			683			—			—			(135		)	100
Company contributions	659			763			666			707			188			355
Benefits paid	(991		)	(668		)	(666		)	(707		)	(930		)	(1,176		)
Fair value of plan assets at end of year	10,872			10,624			—			—			520			1,397
Funded status at end of year	$	(2,563	)	$	(4,724	)	$	(10,536	)	$	(11,570	)	$	(16,399	)	$	(17,304	)

The net amounts recognized in Viad’s consolidated balance sheets under the caption “Pension and postretirement benefits” as of December 31 were as follows:



									Postretirement Benefit Plans
	Funded Plans				Unfunded Plans				Postretirement Benefit Plans
(in thousands)	2013		2012		2013		2012		2013		2012
Other current liabilities	$	—	$	—	$	713	$	816	$	928	$	392
Non-current liabilities	2,563		4,724		9,823		10,754		15,471		16,912
Net amount recognized	$	2,563	$	4,724	$	10,536	$	11,570	$	16,399	$	17,304

Amounts recognized in accumulated other comprehensive income as of December 31, 2013 consisted of:



(in thousands)	Funded Plans			Unfunded Plans			Postretirement Benefit Plans			Total
Net actuarial loss	$	6,972		$	3,480		$	4,692		$	15,144
Prior service credit	—			—			(2,038		)	(2,038		)
Subtotal	6,972			3,480			2,654			13,106
Less tax effect	(2,644		)	(1,320		)	(1,006		)	(4,970		)
Total	$	4,328		$	2,160		$	1,648		$	8,136

Amounts recognized in accumulated other comprehensive income as of December 31, 2012 consisted of:



(in thousands)	Funded Plans			Unfunded Plans			Postretirement Benefit Plans			Total
Net actuarial loss	$	9,052		$	4,548		$	6,706		$	20,306
Prior service credit	—			—			(2,900		)	(2,900		)
Subtotal	9,052			4,548			3,806			17,406
Less tax effect	(3,433		)	(1,725		)	(1,443		)	(6,601		)
Total	$	5,619		$	2,823		$	2,363		$	10,805

The estimated net actuarial loss for the pension plans that is expected to be amortized from accumulated other comprehensive income into net periodic pension cost in 2014 is approximately $416,000. The estimated net actuarial loss for the postretirement benefit plans that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost in 2014 is approximately $405,000. The estimated prior service credit for the postretirement benefit plans that is expected to be amortized from accumulated other comprehensive income into net periodic benefit credit in 2014 is approximately $592,000.

The fair value of the domestic plans’ assets by asset class was as follows:



			Fair Value Measurements at December 31, 2013
			Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobserved Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Domestic pension plans:
Fixed income securities	$	5,966	$	5,966	$	—	$	—
U.S. equity securities	4,542		4,542		—		—
Cash	147		147		—		—
Other	217		—		217		—
Total	$	10,872	$	10,655	$	217	$	—
Postretirement benefit plans:
Fixed income securities	$	407	$	407	$	—	$	—
U.S. equity securities	109		109		—		—
Cash	4		4		—		—
Total	$	520	$	520	$	—	$	—



			Fair Value Measurements at December 31, 2012
			Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobserved Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Domestic pension plans:
Cash	$	10,401	$	10,401	$	—	$	—
Other	223		—		223		—
Total	$	10,624	$	10,401	$	223	$	—
Postretirement benefit plans:
Cash	$	1,397	$	1,397	$	—	$	—

The significant amount of investments held in cash in the domestic pension and postretirement plans as of December 31, 2012 was due to a change in the investment custodian during December 2012. All securities held by the previous custodian were liquidated to cash and transferred to the new custodian in December 2012. During January and February 2013, the new custodian invested the plans’ assets in a mix of equities and fixed income securities approximating the same mixes as December 31, 2011.

Viad employs a total return investment approach whereby a mix of equities and fixed income securities is used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed income securities. Furthermore, equity securities are diversified across U.S. and non-U.S. stocks, as well as growth and value. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews and annual liability measurements.

Viad utilizes a building-block approach in determining the long-term expected rate of return on plan assets. Historical markets are studied and long-term historical relationships between equity securities and fixed income securities are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return also considers diversification and rebalancing. Peer data and historical returns are reviewed relative to Viad’s assumed rates for reasonableness and appropriateness.

The following pension and postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid, as well as the Medicare Part D subsidy expected to be received:



(in thousands)	Funded Plans		Unfunded Plans		Postretirement Benefit Plans		Medicare Part D Subsidy Receipts
2014	$	853	$	729	$	1,739	$	254
2015	879		716		1,702		254
2016	830		806		1,691		253
2017	865		827		1,649		251
2018	857		894		1,609		247
2019-2022	4,668		4,211		7,330		1,169

Foreign Pension Plans. Certain of Viad’s foreign operations also maintain trusteed defined benefit pension plans covering certain employees which are funded by the companies, and unfunded defined benefit pension plans providing supplemental benefits to select management employees. These plans use traditional defined benefit formulas based on years of service and final average compensation. Funding policies provide that payments to defined benefit pension trusts shall be at least equal to the minimum funding required by applicable regulations. The components of net periodic benefit cost and other amounts recognized in other comprehensive income included the following:



(in thousands)	2013			2012			2011
Net periodic benefit cost:
Service cost	$	534		$	491		$	366
Interest cost	702			737			729
Expected return on plan assets	(698		)	(622		)	(665		)
Recognized net actuarial loss	248			201			73
Net periodic benefit cost	786			807			503
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss (gain)	(1,214		)	958			1,936
Reversal of amortization of net actuarial loss	(248		)	(201		)	(73		)
Total recognized in other comprehensive income (loss)	(1,462		)	757			1,863
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(676	)	$	1,564		$	2,366

The following table represents the funded status of the plans as of December 31:



	Funded Plans						Unfunded Plans
(in thousands)	2013			2012			2013			2012
Change in benefit obligation:
Benefit obligation at beginning of year	$	15,387		$	13,141		$	3,032		$	2,939
Service cost	534			491			—			—
Interest cost	582			607			120			130
Actuarial adjustments	(473		)	1,086			44			113
Benefits paid	(3,644		)	(328		)	(219		)	(220		)
Translation adjustment	(926		)	390			(66		)	70
Benefit obligation at end of year	11,460			15,387			2,911			3,032
Change in plan assets:
Fair value of plan assets at beginning of year	12,997			11,028			—			—
Actual return on plan assets	1,148			860			—			—
Company contributions	1,892			1,111			219			220
Benefits paid	(3,644		)	(328		)	(219		)	(220		)
Translation adjustment	(833		)	326			—			—
Fair value of plan assets at end of year	11,560			12,997			—			—
Funded status at end of year	$	100		$	(2,390	)	$	(2,911	)	$	(3,032	)

As of December 31, 2013 and 2012, the foreign funded plans had net assets of $100,000 and net liabilities of $2.4 million, respectively. The unfunded plans had liabilities of $2.9 million and $3.0 million at December 31, 2013 and 2012, respectively. These amounts are each included in the consolidated balance sheets under the caption “Pension and postretirement benefits.”

The net actuarial losses for the foreign funded plans as of December 31, 2013 and 2012 were $3.8 million ($2.8 million after-tax) and $5.3 million ($3.9 million after-tax), respectively. The net actuarial losses as of December 31, 2013 and 2012 for the foreign unfunded plans were $367,000 ($275,000 after-tax) and $366,000 ($271,000 after-tax), respectively.

The fair value of the foreign pension plans’ assets by asset category were as follows:



			Fair Value Measurements at December 31, 2013
(in thousands)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserved Inputs (Level 3)
Assets:
Canadian fixed income securities	$	5,174	$	5,174	$	—	$	—
International equity securities	4,781		4,386		395		—
U.S. equity securities	1,269		1,269		—		—
Other	336		336		—		—
Total	$	11,560	$	11,165	$	395	$	—



			Fair Value Measurements at December 31, 2012
(in thousands)	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserved Inputs (Level 3)
Assets:
Canadian fixed income securities	$	6,744	$	6,744	$	—	$	—
International equity securities	4,871		4,494		377		—
U.S. equity securities	1,185		1,185		—		—
Other	197		197		—		—
Total	$	12,997	$	12,620	$	377	$	—

The following payments, which reflect expected future service, as appropriate, are expected to be paid:



(in thousands)	Funded Plans		Unfunded Plans
2014	$	365	$	213
2015	480		213
2016	485		212
2017	488		212
2018	512		211
2019-2022	3,226		1,051

Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets. The accumulated benefit obligations in excess of plan assets as of December 31 were as follows:



	Domestic Plans
	Funded Plans				Unfunded Plans
(in thousands)	2013		2012		2013		2012
Projected benefit obligation	$	13,435	$	15,348	$	10,536	$	11,570
Accumulated benefit obligation	13,435		15,348		10,227		11,322
Fair value of plan assets	10,872		10,624		—		—



	Foreign Plans
	Funded Plans				Unfunded Plans
(in thousands)	2013		2012		2013		2012
Projected benefit obligation	$	11,460	$	15,387	$	2,911	$	3,032
Accumulated benefit obligation	10,823		14,307		2,911		3,032
Fair value of plan assets	11,560		12,997		—		—

Contributions. In aggregate for both the domestic and foreign plans, the Company anticipates contributing $1.4 million to the funded pension plans, $942,000 to the unfunded pension plans and $950,000 to the postretirement benefit plans in 2014.

Weighted-Average Assumptions. Weighted-average assumptions used to determine benefit obligations as of December 31 were as follows:



	Domestic Plans
	Funded Plans				Unfunded Plans				Postretirement Benefit Plans				Foreign Plans
	2013		2012		2013		2012		2013		2012		2013		2012
Discount rate	4.89	%	4.11	%	4.60	%	3.80	%	4.65	%	3.85	%	4.67	%	4.06	%
Rate of compensation increase	N/A		N/A		3.00	%	4.50	%	N/A		N/A		3.00	%	3.00	%

Weighted-average assumptions used to determine net periodic benefit cost were as follows:



	Domestic Plans
									Postretirement Benefit Plans
	Funded Plans				Unfunded Plans				Postretirement Benefit Plans				Foreign Plans
	2013		2012		2013		2012		2013		2012		2013		2012
Discount rate	4.09	%	4.93	%	3.80	%	4.75	%	3.85	%	4.70	%	4.03	%	4.65	%
Expected return on plan assets	3.90	%	4.20	%	N/A		N/A		0.00	%	4.65	%	5.44	%	5.45	%
Rate of compensation increase	N/A		N/A		4.50	%	4.50	%	N/A		N/A		3.00	%	3.00	%

The assumed health care cost trend rate used in measuring the December 31, 2013 accumulated postretirement benefit obligation was 8.0 percent, declining one-half percent each year to the ultimate rate of 5.0 percent by the year 2019 and remaining at that level thereafter. The assumed health care cost trend rate used in measuring the December 31, 2012 accumulated postretirement benefit obligation was 8.5 percent, declining one-half percent each year to the ultimate rate of 5.0 percent by the year 2019 and remaining at that level thereafter.

A one-percentage-point increase in the assumed health care cost trend rate for each year would increase the accumulated postretirement benefit obligation as of December 31, 2013 by approximately $1.5 million and the total of service and interest cost components by approximately $113,000. A one-percentage-point decrease in the assumed health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as of December 31, 2013 by approximately $1.3 million and the total of service and interest cost components by approximately $90,000.

Multi-employer Plans. Viad contributes to defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees. The financial risks of participating in these multi-employer pension plans generally include the fact that assets contributed to the plan by one employer may be used to provide benefits to employees of other participating employers. Furthermore, if a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. In addition, if Viad were to discontinue its participation in some of its multi-employer pension plans, the Company may be required to pay those plans a withdrawal liability amount based on the underfunded status of the plan. Viad also contributes to defined contribution plans pursuant to its collective-bargaining agreements, which are generally not subject to the funding risks inherent in defined benefit pension plans. The overall level of Viad’s contributions to its multi-employer plans may significantly vary from year to year based on the demand for union-represented labor to support the Company’s operations. Viad does not have any minimum contribution requirements for future periods pursuant to its collective-bargaining agreements for individually significant multi-employer plans.

Viad’s participation in multi-employer pension plans for 2013 is outlined in the following table. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2013 and 2012 relates to the plan’s year end as of December 31, 2012 and 2011, respectively, and is based on information received from the plan. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented.



		Plan	Pension Protection Act Zone Status		FIP/RP Status Pending/ Implemented	Viad Contributions						Surcharge Paid	Expiration Date of Collective- Bargaining Agreement(s)
(in thousands)	EIN	No.	2013	2012	FIP/RP Status Pending/ Implemented	2013		2012		2011		Surcharge Paid	Expiration Date of Collective- Bargaining Agreement(s)
Pension Fund:
Western Conference of Teamsters Pension Plan	91-6145047	1	Green	Green	No	$	5,524	$	5,694	$	5,720	No	3/31/14 to 5/31/15
Southern California Local 831—Employer Pension Fund⁽¹⁾	95-6376874	1	Green	Green	No	2,244		2,358		2,232		No	8/31/14
National Electrical Benefit Fund	53-0181657	1	Green	Green	No	1,631		1,814		1,691		No	5/31/14 to 6/16/14
Chicago Regional Council of Carpenters Pension Fund⁽²⁾	36-6130207	1	Yellow	Yellow	Yes	1,614		1,749		1,411		No	5/31/14
Electrical Contractors Assoc. Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Plan #2	51-6030753	2	Green	Green	No	957		108		—		No	6/3/14
Central States, Southeast and Southwest Areas Pension Plan	36-6044243	1	Red	Red	Yes	836		874		725		No	7/31/15
Southwest Carpenters Pension Trust	95-6042875	1	Green	Green	No	812		944		1,031		No	6/30/15
Machinery Movers Riggers & Mach Erect Local 136 Supplemental Retirement Plan^(1),(2)	36-1416355	1	Red	Red	Yes	430		930		386		No	6/30/14
Nevada Resort Association IATSE Local 720 Retirement Plan	51-0144767	1	Red	Red	Yes	367		516		329		No	12/31/14
Sign Pictorial & Display Industry Pension Plan	94-6278490	1	Green	Green	No	367		196		191		No	3/31/15
Carpenters Retirement Plan of Western Washington	91-6029051	1	Green	Green	No	357		357		286		No	5/31/13
New England Teamsters & Trucking Industry Pension⁽³⁾	04-6372430	1	Yellow	Red	Yes	347		334		339		No	3/31/17
Steelworkers Pension Trust	23-6648508	499	Green	Green	No	266		326		422		No	3/31/13 to 2/28/15
All other funds⁽⁴⁾						2,592		2,468		2,946
Total contributions to defined benefit plans						18,344		18,668		17,709
Total contributions to other plans						1,969		2,001		1,892
Total contributions to multi-employer plans						$	20,313	$	20,669	$	19,601

⁽¹⁾ The Company contributed more than 5 percent of total plan contributions for the 2012 and 2011 plan years based on the plans’ Form 5500s.

⁽²⁾ Zone status as of 6/30/12 and 6/30/11.

⁽³⁾ Zone status as of 9/30/12 and 9/30/11.

⁽⁴⁾ Represents participation in 37 pension funds during 2013.

Other Employee Benefits. Costs of the 401(k) Plan and other benefit plans totaled $1.3 million, $1.7 million and $1.3 million in 2013, 2012 and 2011, respectively.