Washington Post 2012 Annual Report Download - page 101

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 .......... $5,354 $(4,740)
Service cost plus interest cost ............. $ 657 $ (560)
The Company made contributions to its postretirement benefit plans
of $3.3 million and $2.3 million for the years ended December 31,
2012 and 2011, respectively. As the plans are unfunded, the
Company makes contributions to its postretirement plans based on
actual benefit payments.
At December 31, 2012, future estimated benefit payments are as
follows:
(in thousands) Postretirement Plans
2013 ................................... $ 3,919
2014 ................................... $ 4,081
2015 ................................... $ 4,288
2016 ................................... $ 4,521
2017 ................................... $ 4,623
2018–2022 .............................. $25,998
The total (benefit) cost arising from the Company’s other post-
retirement plans for the years ended December 31, 2012 and
2011, and January 2, 2011, including a portion included in
discontinued operations, consists of the following components:
Postretirement Plans
(in thousands) 2012 2011 2010
Service cost ................. $ 3,113 $ 2,872 $ 3,275
Interest cost .................. 2,735 3,063 3,934
Amortization of prior
service credit ............... (5,608) (5,650) (5,026)
Recognized actuarial gain ....... (1,478) (1,921) (2,032)
Net Periodic (Benefit) Cost ...... (1,238) (1,636) 151
Curtailment loss (gain) .......... 438 —(8,583)
Total Benefit for the Year ....... $ (800) $(1,636) $(8,432)
Other Changes in Benefit
Obligations Recognized in
Other Comprehensive Income
Current year actuarial gain ...... $(11,493) $ (55) $(3,073)
Current year prior service credit . . . ——(6,336)
Amortization of prior service
credit .................... 5,608 5,650 5,026
Recognized actuarial gain ....... 1,478 1,921 2,032
Curtailment loss ............... ——4,953
Total Recognized in Other
Comprehensive Income (Before
Tax Effects) ................ $ (4,407) $ 7,516 $ 2,602
Total Recognized in (Benefit) Cost
and Other Comprehensive
Income (Before Tax Effect) ..... $ (5,207) $ 5,880 $(5,830)
The costs for the Company’s postretirement plans are actuarially
determined. The discount rates utilized to determine periodic cost
for the years ended December 31, 2012 and 2011, and
January 2, 2011 were 3.90%, 4.60% and 5.25%, respectively.
At December 31, 2012 and 2011, AOCI included the following
components of unrecognized net periodic benefit for the post-
retirement plans:
(in thousands) 2012 2011
Unrecognized actuarial gain ............ $(25,525) $(15,510)
Unrecognized prior service credit ........ (26,128) (31,736)
Gross Amount ...................... (51,653) (47,246)
Deferred tax liability .................. 20,661 18,898
Net Amount ........................ $(30,992) $(28,348)
During 2013, the Company expects to recognize the following
amortization components of net periodic cost for the other post-
retirement plans:
(in thousands) 2013
Actuarial gain recognition ......................... $(2,240)
Prior service credit recognition ...................... $(5,547)
Multiemployer Pension Plans. The Company contributes to a
number of multiemployer defined benefit pension plans under the
terms of collective-bargaining agreements that cover certain union-
represented employees. The risks of participating in these multi-
employer pension plans are different from single-employer plans as
follows:
• Assets contributed to the multiemployer pension plan by one
employer may be used to provide benefits to employees of other
participating employers.
• If a participating employer stops contributing to the plan, the
unfunded obligations of the plan may be borne by the remaining
participating employers.
• If the Company chooses to stop participating in some of its
multiemployer pension plans, the Company may be required to
pay those plans an amount based on the underfunded status of
the plan, referred to as a withdrawal liability.
In 2012, The Daily Herald notified the GCIU Employer’s Trust Fund
of its unilateral withdrawal from the Plan effective November 30,
2012, and recorded a $0.9 million charge based on an estimate
of the withdrawal liability.
The Company, through The Washington Post and The Daily Herald
newspapers, contributed to the CWA/ITU Negotiated Pension Plan
(Employer Identification Number – 13-6212879, Plan Number
001) on behalf of mailers, helpers and utility mailers. As of
December 31, 2010, the CWA/ITU Negotiated Pension Plan
(the Plan) was in critical (red) status as currently defined by the
Pension Protection Act of 2006, and a rehabilitation plan was in
effect. There are no surcharges for employers who have adopted
the rehabilitation plan, and there is no minimum contribution
requirement other than the normal requirement to contribute as
provided in the collective bargaining agreement. The Company’s
collective bargaining agreement expired on May 18, 2003. The
Company’s contributions to the Plan amounted to $0.1 million in
2011 and $0.6 million in 2010. The Washington Post was listed
in the Plan’s Form 5500 as providing more than 5% of the total
contribution to the Plan for the year ended December 31, 2010.
2012 FORM 10-K 89