Washington Post 2012 Annual Report Download - page 98

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SERP
(in thousands) 2012 2011
Change in Benefit Obligation
Benefitobligationatbeginningofyear ....... $ 92,863 $ 79,403
Service cost ......................... 1,467 1,655
Interest cost .......................... 4,241 4,342
Amendments ......................... —369
Actuarial loss ........................ 8,428 9,059
Benefits paid and other ................. (2,937) (1,965)
Benefit Obligation at End of Year ......... $ 104,062 $ 92,863
Change in Plan Assets
Fairvalueofassetsatbeginningofyear ...... $—$—
Employer contributions and other .......... 3,681 3,114
Benefits paid ........................ (3,681) (3,114)
Fair Value of Assets at End of Year ....... $—$—
Funded Status ....................... $(104,062) $(92,863)
The accumulated benefit obligation for the Company’s pension
plans at December 31, 2012 and 2011, was $1,349.2 million
and $1,191.9 million, respectively. The accumulated benefit
obligation for the Company’s SERP at December 31, 2012 and
2011, was $97.6 million and $86.6 million, respectively. The
amounts recognized in the Company’s Consolidated Balance
Sheets for its defined benefit pension plans at December 31, 2012
and 2011, are as follows:
Pension Plans SERP
(in thousands) 2012 2011 2012 2011
Noncurrent
asset ........ $604,823 $537,262 $—$—
Current liability . . . ——(4,368) (4,002)
Noncurrent
liability ....... ——(99,694) (88,861)
Recognized Asset
(Liability) ..... $604,823 $537,262 $(104,062) $(92,863)
Key assumptions utilized for determining the benefit obligation at
December 31, 2012 and 2011, are as follows:
Pension Plans SERP
2012 2011 2012 2011
Discount rate ................. 4.0% 4.7% 4.0% 4.7%
Rate of compensation increase .... 4.0% 4.0% 4.0% 4.0%
The Company made no contributions to its pension plans in 2012,
2011 and 2010, and the Company does not expect to make any
contributions in 2013. The Company made contributions to its SERP
of $3.7 million and $3.1 million for the years ended December 31,
2012 and 2011, respectively. As the plan is unfunded, the
Company makes contributions to the SERP based on actual benefit
payments.
At December 31, 2012, future estimated benefit payments,
excluding charges for early retirement programs, are as follows:
(in thousands) Pension Plans SERP
2013 .......................... $ 75,081 $ 4,454
2014 .......................... $ 74,887 $ 4,768
2015 .......................... $ 75,207 $ 4,846
2016 .......................... $ 76,285 $ 5,360
2017 .......................... $ 78,657 $ 5,511
2018–2022 .................... $429,337 $30,867
The total cost (benefit) arising from the Company’s defined benefit
pension 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:
Pension Plans
(in thousands) 2012 2011 2010
Servicecost ................ $ 40,344 $ 27,619 $ 26,976
Interestcost ................ 59,124 60,033 60,329
Expectedreturnonassets ...... (96,132) (95,983) (95,340)
Amortization of transition asset . . . ——(29)
Amortization of prior
servicecost .............. 3,695 3,605 4,201
Recognizedactuarialloss ...... 9,013 ——
NetPeriodicCost(Benefit)
for the Year .............. 16,044 (4,726) (3,863)
Early retirement programs
expense ................ 8,508 634 —
Specialterminationbenefits ..... ——5,295
Recognition of prior
servicecost .............. ——2,369
Total Cost (Benefit) for
the Year ................ $ 24,552 $ (4,092) $ 3,801
Other Changes in Plan Assets
and Benefit Obligations
Recognized in Other
Comprehensive Income
Current year actuarial (gain)
loss .................... $(79,405) $ 7,046 $(126,568)
Amortization of transition asset . . . ——29
Amortization of prior
servicecost .............. (3,695) (1,463) (6,570)
Recognizednetactuarialloss.... (9,013) ——
Total Recognized in Other
Comprehensive Income
(Before Tax Effects) ......... $(92,113) $ 5,583 $(133,109)
Total Recognized in Total Cost
(Benefit) and Other
Comprehensive Income
(Before Tax Effects) ......... $(67,561) $ 1,491 $(129,308)
SERP
(in thousands) 2012 2011 2010
Servicecost ................ $ 1,467 $ 1,655 $ 1,381
Interestcost ................ 4,241 4,342 4,244
Planamendment ............ —369 —
Amortization of prior service
cost.................... 54 260 406
Recognizedactuarialloss ...... 1,833 1,411 1,068
Total Cost for the Year ........ $ 7,595 $ 8,037 $ 7,099
Other Changes in Benefit
Obligations Recognized in
Other Comprehensive Income
Currentyearactuarialloss ...... $ 8,428 $ 9,059 $ 2,656
Amortization of prior
servicecost .............. (54) (260) (406)
Recognizednetactuarialloss.... (1,833) (1,411) (877)
Otheradjustments............ 745 ——
Total Recognized in Other
Comprehensive Income
(Before Tax Effects) ......... $ 7,286 $ 7,388 $ 1,373
Total Recognized in Total Cost
and Other Comprehensive
Income (Before Tax Effects) ... $ 14,881 $ 15,425 $ 8,472
86 THE WASHINGTON POST COMPANY