XML 77 R45.htm IDEA: XBRL DOCUMENT v2.4.1.9
Employee Retirement and Profit Sharing Plans (Tables)
 12 Months Ended
Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]  
Estimated Pension Plan Benefit Payments to Participants for Next Ten Years
stimated pension plan benefit payments to participants for the next ten years are as follows:
2015
$
18.2
 million
2016
18.5
 million
2017
19.1
 million
2018
19.6
 million
2019
19.8
 million
Next five years
105.7
 million
Estimated postretirement health care plan benefit payments for the next ten years are as follows:
2015
$
2.6
 million
2016
2.6
 million
2017
2.6
 million
2018
2.6
 million
2019
2.8
 million
Next five years
14.6
 million
Funded Status of Plans
The reconciliation of the beginning and ending balances of the projected benefit obligation and the fair value of plan assets for the years ended December 31, 2014 and 2013, and the funded status of the plans at December 31, 2014 and 2013 is as follows:
 
December 31
 
2014
 
2013
 
(In thousands)
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
293,850

 
$
347,798

Service cost
3,081

 
3,692

Interest cost
13,979

 
12,496

Plan participants’ contributions
13

 
12

Plan amendments
(411
)
 
—

Actuarial (gain) loss
57,716

 
(45,076
)
Benefits paid
(22,462
)
 
(25,072
)
Benefit obligation at end of year
345,766

 
293,850

Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
270,123

 
251,094

Actual return on plan assets
28,980

 
32,558

Employer contributions
14,338

 
11,531

Plan participants’ contributions
13

 
12

Benefits paid
(22,462
)
 
(25,072
)
Plan settlements
(1,466
)
 
—

Fair value of plan assets at end of year
289,526

 
270,123

Funded status at end of year
$
(56,240
)
 
$
(23,727
)
The following table sets forth the funded status of these plans:
 
December 31
 
2014
 
2013
 
(In thousands)
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
37,230

 
$
37,428

Service cost
824

 
816

Interest cost
1,663

 
1,223

Employee contributions
380

 
415

Actuarial (gain) loss
895

 
(1,102
)
Benefits paid
(1,866
)
 
(1,550
)
Benefit obligation at end of year
39,126

 
37,230

Fair value of plan assets at end of year
—

 
—

Funded status
$
(39,126
)
 
$
(37,230
)
Retirement and Profit Sharing Plan Expenses
During 2014, 2013 and 2012, our retirement and profit sharing plan expenses were as follows:
 
Year Ended December 31
 
2014
 
2013
 
2012
 
(In thousands)
Defined benefit plans
$
4,729

 
$
10,400

 
$
12,969

Defined contribution plans
16,503

 
17,619

 
17,637

Multiemployer pension and certain union plans
28,933

 
29,148

 
27,016

Total
$
50,165

 
$
57,167

 
$
57,622
Summary of Assumptions Used to Determine Benefit Obligations
A summary of our key actuarial assumptions used to determine benefit obligations as of December 31, 2014 and 2013 follows:
 
December 31
 
2014
 
2013
Weighted average discount rate
4.08
%
 
4.90
%
Rate of compensation increase
4.00
%
 
4.00
%
Summary of Assumptions Used to Determine Net Periodic Benefit Cost
A summary of our key actuarial assumptions used to determine net periodic benefit cost for 2014, 2013 and 2012 follows:
 
Year Ended December 31
 
2014
 
2013
 
2012
Weighted average discount rate
4.90
%
 
3.70
%
 
4.50
%
Expected return on plan assets
7.00
%
 
7.50
%
 
7.67
%
Rate of compensation increase
4.00
%
 
4.00
%
 
4.00
%
Net Periodic Benefit Cost
 
Year Ended December 31
 
2014
 
2013
 
2012
 
(In thousands)
Components of net periodic benefit cost:
 
 
 
 
 
Service cost
$
3,081

 
$
3,692

 
$
3,068

Interest cost
13,979

 
12,496

 
14,001

Expected return on plan assets
(18,761
)
 
(18,531
)
 
(17,413
)
Amortizations:
 
 
 
 
 
Unrecognized transition obligation
—

 
—

 
112

Prior service cost
787

 
791

 
759

Unrecognized net loss
5,105

 
11,759

 
11,667

Effect of settlement
538

 
(136
)
 
—

Other
—

 
329

 
774

Net periodic benefit cost
$
4,729

 
$
10,400

 
$
12,968

 
Year Ended December 31
 
2014
 
2013
 
2012
 
(In thousands)
Components of net periodic benefit cost:
 
 
 
 
 
Service and interest cost
$
2,487

 
$
2,039

 
$
1,939

Amortizations:
 
 
 
 
 
Prior service cost
65

 
26

 
26

Unrecognized net loss
75

 
298

 
129

Other
98

 
2,286

 
1,868

Net periodic benefit cost
$
2,725

 
$
4,649

 
$
3,962
Pension Plans With an Accumulated Benefit Obligation in Excess of Plan Assets
Pension plans with an accumulated benefit obligation in excess of plan assets follows:
 
December 31
 
2014
 
2013
 
(In millions)
Projected benefit obligation
$
345.8

 
$
282.6

Accumulated benefit obligation
341.3

 
279.4

Fair value of plan assets
289.5

 
258.3
Fair Values by Category of Inputs
The fair values by category of inputs as of December 31, 2014 were as follows (in thousands):
 
Fair Value as of
December 31, 2014
 
Level 1
 
Level 2
 
Level 3
Equity Securities:
 
 
 
 
 
 
 
Common Stock
$
210

 
$
210

 
$
—

 
$
—

Index Funds:
 
 
 
 
 
 
 
U.S. Equities(a)
135,726

 
—

 
135,726

 
—

International Equities
—

 
—

 
—

 
—

Equity Funds(b)
8,101

 
—

 
8,101

 
—

Total Equity Securities
144,037

 
210

 
143,827

 
—

Fixed Income:
 
 
 
 
 
 
 
Bond Funds(c)
140,714

 
—

 
140,714

 
—

Diversified Funds(d)
2,921

 
—

 
—

 
2,921

Total Fixed Income
143,635

 
—

 
140,714

 
2,921

Cash Equivalents:
 
 
 
 
 
 
 
Short-term Investment Funds(e)
2,507

 
—

 
2,507

 


Total Cash Equivalents
2,507

 
—

 
2,507

 


Other Investments:
 
 
 
 
 
 
 
Partnerships/Joint Ventures(f)
567

 
—

 
—

 
567

Total Other Investments
567

 
—

 
—

 
567

Total
$
290,746

 
$
210

 
$
287,048

 
$
3,488

(a)
Represents a pooled/separate account that tracks the Dow Jones U.S. Total Stock Market Index.
(b)
Represents a pooled/separate account comprised of approximately 90% U.S. large-cap stocks and 10% in international stocks.
(c)
Represents investments primarily in US dollar-denominated, investment grade bonds, including government securities, corporate bonds, and mortgage- and asset-backed securities.
(d)
Represents a pooled/separate account investment in the General Investment Account of an investment manager. The account primarily invests in fixed income debt securities, such as high grade corporate bonds, government bonds and asset-backed securities.
(e)
Investment is comprised of high grade money market instruments with short-term maturities and high liquidity.
(f)
The majority of the total partnership balance is a partnership comprised of a portfolio of two limited partnership funds that invest in public and private equity.

The fair values by category of inputs as of December 31, 2013 were as follows (in thousands):
 
Fair Value as of
December 31, 2013
 
Level 1
 
Level 2
 
Level 3
Equity Securities:
 
 
 
 
 
 
 
Common Stock
$
177

 
$
177

 
$
—

 
$
—

Index Funds:
 
 
 
 
 
 
 
U.S. Equities(a)
133,763

 
—

 
133,763

 
—

International Equities(b)
27,571

 
—

 
27,571

 
—

Equity Funds(c)
8,712

 
—

 
8,712

 
—

Total Equity Securities
170,223

 
177

 
170,046

 
—

Fixed Income:
 
 
 
 
 
 
 
Bond Funds(d)
92,103

 
—

 
92,103

 
—

Diversified Funds(e)
3,093

 
—

 
—

 
3,093

Total Fixed Income
95,196

 
—

 
92,103

 
3,093

Cash Equivalents:
 
 
 
 
 
 
 
Short-term Investment Funds(f)
3,840

 
—

 
3,840

 
—

Total Cash Equivalents
3,840

 
—

 
3,840

 
—

Other Investments:
 
 
 
 
 
 
 
Partnerships/Joint Ventures(g)
864

 
—

 
—

 
864

Total Other Investments
864

 
—

 
—

 
864

Total
$
270,123

 
$
177

 
$
265,989

 
$
3,957

(a)
Represents a pooled/separate account that tracks the Dow Jones U.S. Total Stock Market Index.
(b)
Represents a pooled/separate account that tracks the MSCI EAFE Index.
(c)
Represents a pooled/separate account comprised of approximately 90% U.S. large-cap stocks and 10% in international stocks.
(d)
Represents a pooled/separate account which tracks the overall performance of the Barclays Capital Long Term Government/Credit Index.
(e)
Represents a pooled/separate account investment in the General Investment Account of an investment manager. The account primarily invests in fixed income debt securities, such as high grade corporate bonds, government bonds and asset-backed securities.
(f)
Investment is comprised of high grade money market instruments with short-term maturities and high liquidity.
(g)
The majority of the total partnership balance is a partnership comprised of a portfolio of two limited partnership funds that invest in public and private equity.
Reconciliation of Change in Fair Value Measurement of Defined Benefit Plans
A reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets using significant unobservable inputs (Level 3) during the years ended December 31, 2014 and 2013 is as follows (in thousands):
 
Diversified
Funds
 
Partnerships/
Joint Ventures
 
Total
Balance at December 31, 2012
$
2,938

 
$
1,447

 
$
4,385

Actual return on plan assets:
 
 
 
 
 
Relating to instruments still held at reporting date
119

 
(306
)
 
(187
)
Purchases, sales and settlements (net)
(828
)
 
—

 
(828
)
Transfers in and/or out of Level 3
864

 
(277
)
 
587

Balance at December 31, 2013
$
3,093

 
$
864

 
$
3,957

Actual return on plan assets:
 
 
 
 
 
Relating to instruments still held at reporting date
117

 
(158
)
 
(41
)
Purchases, sales and settlements (net)
(1,836
)
 
—

 
(1,836
)
Transfers in and/or out of Level 3
1,547

 
(139
)
 
1,408

Balance at December 31, 2014
$
2,921

 
$
567

 
$
3,488
Schedule of Information Regarding Participation in Multiemployer Pension Plans
The last column in the table lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject.
Pension Fund
Employer
Identification
Number
 
Pension
Plan
Number
 
PPA Zone Status
 
FIP /
RP Status
Pending/
Implemented
 
Extended
Amortization
Provisions
 
Expiration
Date of
Associated
Collective-
Bargaining
Agreement(s)
2014
 
2013
 
Western Conference of Teamsters Pension Plan(1)
91-6145047
 
001
 
Green
 
Green
 
N/A
 
No
 
February 28, 2015 - May 31, 2017
Central States, Southeast and Southwest Areas Pension Plan(2)
36-6044243
 
001
 
Red
 
Red
 
Implemented
 
No
 
February 15, 2015 - April 30, 2017
Retail, Wholesale & Department Store International Union and Industry Pension Fund(3)
63-0708442
 
001
 
Green
 
Green
 
N/A
 
Yes
 
June 7, 2015 - September 30, 2017
Dairy Industry – Union Pension Plan for Philadelphia Vicinity(4)
23-6283288
 
001
 
Green
 
Red
 
N/A
 
Yes
 
June 30, 2017 –
March 31, 2018
(1)
We are party to approximately 18 collective bargaining agreements that require contributions to this plan. These agreements cover a large number of employee participants and expire on various dates between 2015 and 2017. We do not believe that any one agreement is substantially more significant than another as none of these agreements individually represent greater than 25% of the total employee participants covered under this plan.
(2)
There are approximately 21 collective bargaining agreements that govern our participation in this plan. The agreements expire on various dates between 2015 and 2017. Approximately 17%, 69% and 14% of our employee participants in this plan are covered by the agreements expiring in 2015, 2016 and 2017, respectively.
(3)
We are subject to approximately eight collective bargaining agreements with respect to this plan. Approximately 50%, 4% and 46% of our employee participants in this plan are covered by the agreements expiring in 2015, 2016 and 2017, respectively.
(4)
We are party to four collective bargaining agreements with respect to this plan. The agreement expiring in September 2017 is the most significant as 69% of our employee participants in this plan are covered by that agreement.
Schedule of Information Regarding Contribution in Multiemployer Pension Plans
Information regarding our contributions to our multiemployer pension plans is shown in the table below. There are no changes which materially affected the comparability of our contributions to each of these plans during the years ended December 31, 2014, 2013 and 2012.
Pension Fund
Employer
Identification
Number
 
Pension
Plan
Number
 
Dean Foods Company Contributions
(in millions)
2014
 
2013
 
2012
 
Surcharge
Imposed(3)
Western Conference of Teamsters Pension Plan
91-6145047
 
001
 
$
12.9

 
$
13.5

 
$
12.7

 
No
Central States, Southeast and Southwest Areas Pension Plan
36-6044243
 
001
 
11.9

 
11.1

 
9.5

 
No
Retail, Wholesale & Department Store International Union and Industry Pension Fund(1)
63-0708442
 
001
 
1.3

 
1.3

 
1.3

 
No
Dairy Industry – Union Pension Plan for Philadelphia Vicinity(1)
23-6283288
 
001
 
2.0

 
1.8

 
1.8

 
No
Other Funds(2)
 
 
 
 
0.8

 
1.4

 
1.7

 
 
Total Contributions
 
 
 
 
$
28.9

 
$
29.1

 
$
27.0

 
 
(1)
During the 2013 and 2012 plan years, our contributions to these plans exceeded 5% of total plan contributions. At the date of filing of this Annual Report on Form 10-K, Forms 5500 were not available for the plan years ending in 2014.
(2)
Amounts shown represent our contributions to all other multiemployer pension and other postretirement benefit plans, which are immaterial both individually and in the aggregate to our Consolidated Financial Statements.
(3)
Federal law requires that contributing employers to a plan in Critical status pay to the plan a surcharge to help correct the plan’s financial situation. The amount of the surcharge is equal to a percentage of the amount we would otherwise be required to contribute to the plan and ceases once our related collective bargaining agreements are amended to comply with the provisions of the rehabilitation plan.