Washington Post 2009 Annual Report Download - page 89

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The amounts recognized in the Company’s Consolidated Balance
Sheets for its other postretirement plans at January 3, 2010 and
December 28, 2008 are as follows:
Postretirement Plans
(in thousands) 2009 2008
Current liability ...................... $ (5,359) $ (4,410)
Noncurrent liability ................... (73,672) (70,992)
Recognized liability .................. $(79,031) $(75,402)
In 2009, the Company made changes to the cable division’s
retiree health care benefits program, resulting in a $7.7 million
curtailment gain. Also in 2009, the Company eliminated life
insurance benefits for new retirees on or after January 1, 2009,
resulting in a $0.7 million curtailment gain.
The discount rates utilized for determining the benefit obligation
at January 3, 2010 and December 28, 2008 for the post-
retirement plans were 5.25% and 5.75%, respectively. The
assumed health care cost trend rate used in measuring the post-
retirement benefit obligation at January 3, 2010 was 9.5% for
pre-age 65, decreasing to 5.0% in the year 2019 and thereafter,
and was 8.5% for post-age 65 benefits, decreasing to 5.0% in the
year 2017 and thereafter.
Assumed health care cost trend rates have a significant effect on the
amounts reported for the health care plans. A change of one
percentage point in the assumed health care cost trend rates would
have the following effects:
(in thousands) 1%
Increase 1%
Decrease
Benefit obligation at end of year ........... $6,501 $(5,763)
Service cost plus interest cost ............. $ 917 $ (707)
The Company made contributions to its postretirement benefit plans
of $4.6 million and $4.2 million for the years ended January 3,
2010 and December 28, 2008, respectively, as the plans are
unfunded, and the Company covers benefit payments. The
Company makes contributions to its postretirement plans based on
actual benefit payments.
At January 3, 2010, future estimated benefit payments, net of
Medicare subsidy, are as follows:
(in millions) Postretirement
Plans
2010 .................................... $ 5.4
2011 .................................... $ 5.6
2012 .................................... $ 5.9
2013 .................................... $ 6.2
2014 .................................... $ 6.4
2015–2019 ............................... $36.4
The total cost arising from the Company’s postretirement plans for
the years ended January 3, 2010, December 28, 2008 and
December 30, 2007, consists of the following components:
Postretirement Plans
(in thousands) 2009 2008 2007
Service cost ................. $ 3,871 $ 3,770 $ 3,558
Interest cost .................. 4,168 4,846 4,832
Amortization of prior service
credit .................... (4,607) (5,144) (4,860)
Recognized actuarial gain ....... (3,128) (1,485) (1,671)
Net periodic cost ............. 304 1,987 1,859
Curtailment gain .............. (8,353) ——
Total (benefit) cost for the year ... $ (8,049) $ 1,987 $ 1,859
Other changes in plan assets and
benefit obligations recognized
in other comprehensive income:
Current year actuarial loss (gain) . . $10,673 $(17,158) $ (329)
Current year prior service (credit)
cost ..................... (1,399) 2,051 (4,234)
Amortization of prior service
credit .................... 4,607 5,144 4,860
Recognized actuarial gain ....... 3,128 1,485 1,671
Curtailment gain .............. (719) ——
Total recognized in other
comprehensive income (before
tax effects) ................. $16,290 $ (8,478) $ 1,968
Total recognized in net periodic
cost (benefit) and other
comprehensive income (before
tax effects) ................. $ 8,241 $ (6,491) $ 3,827
The costs for the Company’s postretirement plans are actuarially
determined. The discount rates utilized to determine periodic cost for
the years ended January 3, 2010, December 28, 2008 and
December 30, 2007 were 5.75%, 5.80% and 5.85%,
respectively.
At January 3, 2010 and December 28, 2008, accumulated other
comprehensive income (AOCI) included the following components
of unrecognized net periodic benefit for the postretirement plans,
respectively:
(in thousands) January 3,
2010 December 28,
2008
Unrecognized actuarial gain ....... $(16,336) $(28,734)
Unrecognized prior service credit .... (41,028) (44,920)
Gross amount .................. (57,364) (73,654)
Deferred tax liability .............. 22,946 29,462
Net amount .................... $(34,418) $(44,192)
2009 FORM 10-K 75