HollyFrontier 2013 Annual Report Download - page 96

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88
Net periodic pension expense consisted of the following components:
Years Ended December 31,
2013 2012 2011
(In thousands)
Service cost – benefit earned during the year $ — $ 679 $ 5,070
Interest cost on projected benefit obligations 1,797 3,962 5,125
Expected return on plan assets (92)(3,798)(5,230)
Amortization of prior service cost — 67 390
Amortization of net loss 1,386 1,933 2,126
Curtailment — 899 1,065
Loss on settlement 36,203 2,855 3,951
Loss on plan termination 3,293 — —
Net periodic pension expense $ 42,587 $ 6,597 $ 12,497
The weighted average assumptions used to determine net periodic benefit expense:
December 31,
2013 2012 2011
Discount rate 3.95% 4.60% 5.65%
Rate of future compensation increases —% 4.00% 4.00%
Expected long-term rate of return on assets 0.25% 6.50% 8.00%
In 2012, we established a program for plan participants whose benefits pursuant to the defined benefit plan were frozen. The
program provides for payments after year-end for three years (beginning with 2012) provided the employee is employed by us on
the last day of each year. The payments are based on each employee's years of service and eligible salary. Transition benefit costs
associated with transition to the new defined contribution plan were $12.5 million and $15.6 million for the years ended
December 31, 2013 and 2012, respectively.
Post-retirement Healthcare Plans
We provide post-retirement medical benefits to certain eligible employees. These plans are unfunded and provide differing levels
of healthcare benefits dependent upon hire date and work location. Not all of our employees are covered by these plans at
December 31, 2013.
Effective December 31, 2012, we amended the post-retirement healthcare plans for participants retiring after December 31, 2012
by eliminating post-retirement benefits after reaching age 65 and eliminating early retirement benefits for most participants who
retire before reaching age 62. In addition, certain future retirees will receive a cash payment in lieu of post-retirement benefits
after reaching age 65 and other changes were made generally to conform benefits. In the first quarter of 2013, we settled a portion
of our post-retirement medical obligation, at which time we reclassified a $1.7 million pretax loss out of accumulated other
comprehensive income that was recognized as a charge to net income.
Table of Contents HOLLYFRONTIER CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Continued