Annual report pursuant to Section 13 and 15(d)

Postretirement Benefits (Tables)

v3.6.0.2
Postretirement Benefits (Tables)
12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Schedule of Defined Benefit Plans Disclosures
Financial information related to our pension plans is presented below:
 
Pension Benefits
 
2016
 
2015
Change in projected benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
128,829

 
$
129,053

Service cost
3,806

 
3,985

Interest cost
5,637

 
5,022

Actuarial (gain) loss
3,662

 
(5,959
)
Benefits paid
(5,145
)
 
(3,272
)
Projected benefit obligations at end of year
$
136,789

 
$
128,829

Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
$
86,828

 
$
84,893

Actual gain (loss) on plan assets
6,779

 
(468
)
Employer contribution
1,181

 
5,675

Benefits paid
(5,145
)
 
(3,272
)
Fair value of plan assets at end of year
$
89,643

 
$
86,828

Reconciliation of funded status:
 
 
 
Fair value of plan assets at end of year
$
89,643

 
$
86,828

Less projected benefit obligations at end of year
136,789

 
128,829

Under-funded status at end of year
$
(47,146
)
 
$
(42,001
)
Schedule of Amounts Recognized in Balance Sheet
The pre-tax amounts related to the defined benefit plans recognized in the consolidated balance sheets as of December 31, 2016 and 2015 were as follows:
 
Pension Benefits
 
2016
 
2015
Amounts recognized in the consolidated balance sheets:
 
 
 
Pension benefit liability
$
(47,146
)
 
$
(42,001
)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
The pre-tax amounts in accumulated other comprehensive loss as of December 31, 2016 and 2015 that have not yet been recognized as components of net periodic benefit cost were as follows:
 
Pension Benefits
 
2016
 
2015
Net actuarial loss
$
(42,692
)
 
$
(42,091
)
Prior service credit
174

 
225

Total
$
(42,518
)
 
$
(41,866
)
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year
The following amounts included in accumulated other comprehensive loss as of December 31, 2016 are expected to be recognized as components of net periodic benefit cost during the year ending December 31, 2017:
 
Pension
Benefits
Amortization of prior service credit
$
(51
)
Amortization of net actuarial loss
3,156

Total
$
3,105

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans were as follows:
 
As of December 31,
 
2016
 
2015
Projected benefit obligation
$
136,789

 
$
128,829

Accumulated benefit obligation
129,292

 
119,031

Fair value of plan assets
89,643

 
86,828

Schedule of Assumptions Used
The weighted-average assumptions used to determine benefit obligations at December 31, 2016, 2015 and 2014 were as follows:
 
Pension Benefits
 
2016
 
2015
 
2014
Discount rate
4.15
%
 
4.45
%
 
3.95
%
Rate of compensation increase
2.20
%
 
3.00
%
 
2.50
%
The discount rate used reflects the expected future cash flow based on our funding valuation assumptions and participant data as of the beginning of the plan year. The expected future cash flow is discounted by the Principal Pension Discount Yield Curve for the fiscal year end because it has been specifically designed to help pension funds comply with statutory funding guidelines.
The weighted-average assumptions used to determine net periodic benefit costs for the years ended December 31, 2016, 2015 and 2014 were as follows:
 
Pension Benefits
 
2016
 
2015
 
2014
Discount rate
4.45
%
 
3.95
%
 
4.75
%
Expected return on plan assets
8.50
%
 
8.50
%
 
8.60
%
Rate of compensation increase
3.00
%
 
2.50
%
 
3.00
%
Schedule of Net Benefit Costs
The components of net periodic benefit cost for the years and periods were as follows:
 
Pension Benefits
 
Year Ended December 31,
 
2016
 
2015
 
2014
Components of net periodic benefit cost:
 
 
 
 
 
Service cost
$
3,806

 
$
3,985

 
$
3,424

Interest cost
5,637

 
5,022

 
4,952

Amortization of prior service credit
(51
)
 
(51
)
 
(51
)
Expected return on plan assets
(6,997
)
 
(6,329
)
 
(5,478
)
Recognized net actuarial loss
3,278

 
3,408

 
2,432

Net periodic benefit cost
$
5,673

 
$
6,035

 
$
5,279

Schedule of Allocation of Plan Assets
The weighted-average asset allocation of our pension benefits at December 31, 2016 and 2015 was as follows:
 
Pension Benefits
 
Plan Assets
 
2016
 
2015
Asset Category:
 
 
 
Equity securities
78.1
%
 
76.9
%
Debt securities
12.6
%
 
12.5
%
Real estate investment trust
9.3
%
 
10.6
%
Total
100.0
%
 
100.0
%
The fair value of our pension assets by category as of December 31, 2016 and 2015 were as follows:
 
Quoted Prices in
Active Markets
For Identical
Assets or
Liabilities
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Consolidated
Total
Year ended December 31, 2016
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
U.S. companies
$
56,959

 
$

 
$

 
$
56,959

International companies
13,045

 

 

 
13,045

Debt securities:
 
 
 
 
 
 


Preferred securities
4,000

 

 

 
4,000

Bond securities

 
7,272

 

 
7,272

Real estate securities
8,367

 

 

 
8,367

Total
$
82,371

 
$
7,272

 
$

 
$
89,643

Year ended December 31, 2015
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
U.S. companies
$
52,800

 
$

 
$

 
$
52,800

International companies
13,957

 

 

 
13,957

Debt securities:
 
 
 
 
 
 
 
Preferred securities
3,770

 

 

 
3,770

Bond securities

 
7,067

 

 
7,067

Real estate securities
9,234

 

 

 
9,234

Total
$
79,761

 
$
7,067

 
$

 
$
86,828