Pension and Postretirement Benefits

12 Months Ended

Dec. 31, 2011

Employee Stock Ownership Plan/Pension and Postretirement Benefits [Abstract]

Pension and Postretirement Benefits

Note 16. Pension and Postretirement Benefits

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:

	2011			2010			2009
	(in thousands)
Net Periodic Benefit Cost
Service cost	$	121		$	145		$	184
Interest cost		1,189			1,242			1,300
Expected return on plan assets		(563	)		(588	)		(627	)
Amortization of prior service cost		—			41			44
Recognized net actuarial loss		457			572			367
Net periodic benefit cost		1,204			1,412			1,268
Other Changes in Plan Assets and Benefits Obligations Recognized in Other Comprehensive Income
Net actuarial loss		1,589			1,190			2,746
Reversal of amortization item:
Net actuarial loss		(457	)		(572	)		(367	)
Prior service cost		—			(41	)		(44	)
Total recognized in other comprehensive income		1,132			577			2,335
Total recognized in net period benefit cost and other comprehensive income	$	2,336		$	1,989		$	3,603

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

	2011			2010			2009
				(in thousands)
Net Periodic Benefit Cost
Service cost	$	128		$	130		$	68
Interest cost		868			1,039			1,124
Expected return on plan assets		(135	)		(160	)		(205	)
Amortization of prior service credit		(1,277	)		(1,171	)		(1,292	)
Recognized net actuarial loss		533			608			358
Net periodic benefit cost		117			446			53
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)
Net actuarial loss		24			421			3,836
Prior service credit		—			(1,197	)		(347	)
Reversal of amortization item:
Net actuarial loss		(533	)		(608	)		(358	)
Prior service credit		1,277			1,171			1,292
Total recognized in other comprehensive income (loss)		768			(213	)		4,423
Total recognized in net period benefit cost and other comprehensive income (loss)	$	885		$	233		$	4,476

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

	Funded Plans						Unfunded Plans						Postretirement Benefit Plans
	2011			2010			2011			2010			2011			2010
							(in thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	12,853		$	12,322		$	10,352		$	9,776		$	18,987		$	19,728
Service cost		—			—			121			145			128			130
Interest cost		678			703			511			539			868			1,039
Actuarial adjustments		1,157			655			609			575			106			526
Plan amendments		—			—			—			—			—			(1,197	)
Benefits paid		(750	)		(827	)		(710	)		(683	)		(1,422	)		(1,239	)
Benefit obligation at end of year		13,938			12,853			10,883			10,352			18,667			18,987
Change in plan assets:
Fair value of plan assets at beginning of year		8,858			8,814			—			—			2,678			3,200
Actual return on plan assets		741			629			—			—			217			264
Company contributions		997			242			710			683			645			453
Benefits paid		(750	)		(827	)		(710	)		(683	)		(1,422	)		(1,239	)
Fair value of plan assets at end of year		9,846			8,858			—			—			2,118			2,678
Funded status at end of year	$	(4,092	)	$	(3,995	)	$	(10,883	)	$	(10,352	)	$	(16,549	)	$	(16,309	)

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

	Funded Plans				Unfunded Plans				Postretirement Benefit Plans
	2011		2010		2011		2010		2011		2010
	(in thousands)
Other current liabilities	$	—	$	—	$	717	$	708	$	440	$	488
Non-current liabilities		4,092		3,995		10,166		9,644		16,109		15,821
Net amount recognized	$	4,092	$	3,995	$	10,883	$	10,352	$	16,549	$	16,309

Amounts recognized in accumulated other comprehensive income as of December 31, 2011 consisted of:

	Funded Plans			Unfunded Plans			Postretirement Benefit Plans			Total
	(in thousands)
Net actuarial loss	$	8,238		$	3,911		$	7,029		$	19,178
Prior service credit		—			—			(4,013	)		(4,013	)
Subtotal		8,238			3,911			3,016			15,165
Less tax effect		(3,146	)		(1,493	)		(1,153	)		(5,792	)
Total	$	5,092		$	2,418		$	1,863		$	9,373

Amounts recognized in accumulated other comprehensive income as of December 31, 2010 consisted of:

	Funded Plans			Unfunded Plans			Postretirement Benefit Plans			Total
	(in thousands)
Net actuarial loss	$	7,564		$	3,453		$	7,538		$	18,555
Prior service credit		—			—			(5,290	)		(5,290	)
Subtotal		7,564			3,453			2,248			13,265
Less tax effect		(2,889	)		(1,320	)		(858	)		(5,067	)
Total	$	4,675		$	2,133		$	1,390		$	8,198

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 2012 is approximately $520,000. 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 2012 is approximately $617,000. 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 2012 is approximately $1.1 million.

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

	Fair Value Measurements at December 31, 2011
Asset Category	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserved Inputs (Level 3)
			(in thousands)
Domestic Pension Plans:
U.S. equity securities	$	2,849	$	—	$	2,849	$	—
International equity securities		914		—		914		—
Aggregate fixed income securities		2,373		—		2,373		—
Long-term fixed income securities		3,412		—		3,412		—
Cash		72		72		—		—
Other		226		—		226		—
	$	9,846	$	72	$	9,774	$	—
Postretirement Benefit Plans:
U.S. equity securities	$	283	$	—	$	283	$	—
International equity securities		89		—		89		—
Aggregate fixed income securities		1,034		—		1,034		—
Long-term fixed income securities		490		—		490		—
Cash		222		222		—		—
	$	2,118	$	222	$	1,896	$	—

	Fair Value Measurements at December 31, 2010
Asset Category	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserved Inputs (Level 3)
			(in thousands)
Domestic Pension Plans:
U.S. equity securities	$	2,591	$	—	$	2,591	$	—
International equity securities		875		—		875		—
Aggregate fixed income securities		2,108		—		2,108		—
Long-term fixed income securities		2,975		—		2,975		—
Cash		77		77		—		—
Other		232		—		232		—
	$	8,858	$	77	$	8,781	$	—
Postretirement Benefit Plans:
U.S. equity securities	$	362	$	—	$	362	$	—
International equity securities		121		—		121		—
Aggregate fixed income securities		1,294		—		1,294		—
Long-term fixed income securities		589		—		589		—
Cash		312		312		—		—
	$	2,678	$	312	$	2,366	$	—

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:

	Funded Plans		Unfunded Plans		Postretirement Benefit Plans		Medicare Part D  Subsidy Receipts
			(in thousands)
2012	$	750	$	734	$	1,810	$	328
2013		785		827		1,856		334
2014		776		805		1,848		339
2015		802		791		1,834		341
2016		751		767		1,817		339
2017-2021		4,184		4,173		8,365		1,606

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:

	2011			2010			2009
				(in thousands)
Net Periodic Benefit Cost
Service cost	$	366		$	304		$	269
Interest cost		729			780			748
Expected return on plan assets		(665	)		(597	)		(527	)
Recognized net actuarial loss		73			54			11
Net periodic benefit cost		503			541			501
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net actuarial loss		1,936			299			1,177
Reversal of amortization of net actuarial loss		(73	)		(54	)		(11	)
Total recognized in other comprehensive income		1,863			245			1,166
Total recognized in net periodic benefit cost and other comprehensive income	$	2,366		$	786		$	1,667

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

	Funded Plans						Unfunded Plans
	2011			2010			2011			2010
				(in thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	11,453		$	11,308		$	2,929		$	2,905
Service cost		366			304			—			—
Interest cost		583			632			146			148
Actuarial adjustments		1,421			632			173			110
Benefits paid		(351	)		(2,014	)		(231	)		(220	)
Translation adjustment		(331	)		591			(78	)		(14	)
Benefit obligation at end of year		13,141			11,453			2,939			2,929
Change in plan assets:
Fair value of plan assets at beginning of year		10,834			10,165			—			—
Actual return on plan assets		100			1,071			—			—
Company contributions		709			1,059			231			220
Benefits paid		(351	)		(2,014	)		(231	)		(220	)
Translation adjustment		(264	)		553						—
Fair value of plan assets at end of year		11,028			10,834			—			—
Funded status at end of year	$	(2,113	)	$	(619	)	$	(2,939	)	$	(2,929	)

As of December 31, 2011 and 2010, the foreign funded plans had liabilities of $2.1 million and $619,000, respectively. The unfunded plans had liabilities of $2.9 million at both December 31, 2011 and 2010. 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, 2011 and 2010 were $4.6 million ($3.4 million after-tax) and $2.9 million ($2.1 million after-tax), respectively. The net actuarial losses as of December 31, 2011 and 2010 for the foreign unfunded plans were $269,000 ($199,000 after-tax) and $111,000 ($82,000 after-tax), respectively.

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

	Fair Value Measurements at December 31, 2011
Asset Category	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserved Inputs (Level 3)
			(in thousands)
U.S. equity securities	$	977	$	977	$	—	$	—
International equity securities		3,995		3,639		356		—
Canadian fixed income securities		5,975		5,975		—		—
Other		81		81		—		—
	$	11,028	$	10,672	$	356	$	—

	Fair Value Measurements at December 31, 2010
Asset Category	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserved Inputs (Level 3)
			(in thousands)
U.S. equity securities	$	1,024	$	1,024	$	—	$	—
International equity securities		4,317		3,957		360		—
Canadian fixed income securities		5,469		5,469		—		—
Other		24		24		—		—
	$	10,834	$	10,474	$	360	$	—

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

	Funded Plans		Unfunded Plans
	(in thousands)
2012	$	326	$	219
2013		445		218
2014		475		218
2015		597		217
2016		601		216
2017-2021		3,316		1,066

Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets as of December 31 were as follows:

	Domestic Plans
	Funded Plans				Unfunded Plans
	2011		2010		2011		2010
			(in thousands)
Projected benefit obligation	$	13,938	$	12,853	$	10,883	$	10,352
Accumulated benefit obligation		13,938		12,853		10,589		10,064
Fair value of plan assets		9,846		8,858		—		—

		00.000		00.000		00.000		00.000
	Foreign Plans
	Funded Plans				Unfunded Plans
	2011		2010		2011		2010
			(in thousands)
Projected benefit obligation	$	13,141	$	11,453	$	2,939	$	2,929
Accumulated benefit obligation		12,049		10,608		2,939		2,929
Fair value of plan assets		11,028		10,834		—		—

Contributions. In aggregate for both the domestic and foreign plans, the Company anticipates contributing $1.6 million to the funded pension plans, $952,000 to the unfunded pension plans and $450,000 to the postretirement benefit plans in 2012.

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
	2011			2010			2011			2010			2011			2010			2011			2010
Discount rate		4.92	%		5.45	%		4.75	%		5.10	%		4.70	%		5.10	%		4.60	%		5.10	%
Rate of compensation increase		N/A			N/A			4.50	%		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
	Funded Plans						Unfunded Plans						Postretirement Benefit Plans						Foreign Plans
	2011			2010			2011			2010			2011			2010			2011			2010
Discount rate		5.45	%		5.90	%		5.10	%		5.70	%		5.10	%		5.60	%		5.10	%		5.60	%
Expected long-term return on plan assets		6.35	%		6.35	%		N/A			N/A			6.10	%		6.10	%		5.50	%		5.75	%
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, 2011 accumulated postretirement benefit obligation was nine percent, declining one-half percent each year to the ultimate rate of five percent by the year 2019 and remaining at that level thereafter. The assumed health care cost trend rate used in measuring the December 31, 2010 accumulated postretirement benefit obligation was nine and one-half percent, declining one-half percent each year to the ultimate rate of five 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, 2011 by approximately $1.7 million and the total of service and interest cost components by approximately $112,000. 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, 2011 by approximately $1.5 million and the total of service and interest cost components by approximately $93,000.

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. Contributions to multi-employer pension plans totaled $19.6 million, $15.3 million and $15.7 million in 2011, 2010 and 2009, respectively.

Viad’s participation in multi-employer pension plans for the year ended December 31, 2011, is outlined in the following table. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2011 and 2010 relates to the plan’s year end as of December 31, 2010 and 2009, 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.

Pension Fund	EIN		Plan No.		Pension Protection Act Zone Status			FIP/RP Status Pending/ Implemented	Viad Contributions						Surcharge Paid		Expiration Date of Collective- Bargaining Agreement(s)
					2011		2010		2011		2010		2009
									(in thousands)
Western Conference of Teamsters Pension Plan		91-6145047		001	Green	Green		No	$	5,720	$	4,551	$	4,998		No		3/31/12 to 5/31/14
Southern California Local 831 - Employer Pension Fund  (1)		95-6376874		001	Green	Green		No		2,232		1,870		1,710		No		8/31/2014
National Electrical Benefit Fund		53-0181657		001	Green	Green		No		1,691		1,313		1,260		No		6/16/12 to 6/3/14
Chicago Regional Council of Carpenters Pension Fund (2)		36-6130207		001	Yellow	Yellow		Yes		1,411		1,018		908		No		5/31/13 to 5/31/14
Southwest Carpenters Pension Trust		95-6042875		001	Green	Green		No		1,031		867		714		No		8/31/2014
Central States, Southeast and Southwest Areas Pension Plan		36-6044243		001	Red	Red		Yes		725		717		702		No		7/31/12 to 12/31/13
Steelworkers Pension Trust		23-6645808		499	Green	Green		No		422		425		403		No		2/28/12 to 6/30/14
Machinery Movers Riggers & Mach Erectors Local 136 Supplemental Retirement Plan (1)  (2)		36-1416355		001	Red	Red		Yes		386		710		292		No		6/30/2014
New England Teamsters & Trucking Industry Pension (3)		04-6372430		001	Red	Red		Yes		339		290		248		No		3/31/2012
All other funds (4)										3,752		2,119		3,152
Total contributions to defined benefit plans										17,709		13,880		14,387
Total contributions to other plans										1,892		1,469		1,317
Total contributions to multi-employer plans									$	19,601	$	15,349	$	15,704

(1) The Company contributed more than 5 percent of total plan contributions for the 2010 and 2009 plan years based on the plans’ Forms 5500.

(2) Zone status as of 6/30/10 and 6/30/09.

(3) Zone status as of 9/30/10 and 9/30/09.

(4) Represents participation in 39 pension funds during 2011.

Other Employee Benefits. Costs of the 401(k) Plan and other benefit plans totaled $1.3 million, $1.6 million and $2.0 million in 2011, 2010 and 2009, respectively.