Washington Post 2013 Annual Report Download - page 96

The total (benefit) cost arising from the Company’s other postretire-
ment plans consists of the following components:
Postretirement Plans
Year Ended December 31
(in thousands) 2013 2012 2011
Service cost ................ $ 2,488 $ 3,113 $ 2,872
Interest cost ................ 1,848 2,735 3,063
Amortization of prior service
credit ................... (4,247) (5,608) (5,650)
Recognized actuarial gain ..... (2,141) (1,478) (1,921)
Net Periodic Benefit ......... (2,052) (1,238) (1,636)
Curtailment ................ (41,623) 438 —
Settlement ................. (11,927) ——
Total Benefit for the Year ..... $(55,602) $ (800) $(1,636)
Other Changes in Benefit
Obligations Recognized in
Other Comprehensive Income
Current year actuarial gain .... $ (3,298) $(11,493) $ (55)
Amortization of prior service
credit ................... 4,247 5,608 5,650
Recognized actuarial gain ..... 2,141 1,478 1,921
Curtailment and settlement ..... 32,329 ——
Total Recognized in Other
Comprehensive Income
(Before Tax Effects) ........ $ 35,419 $ (4,407) $ 7,516
Total Recognized in (Benefit)
Cost and Other
Comprehensive Income
(Before Tax Effect) ......... $(20,183) $ (5,207) $ 5,880
The net periodic benefit, as reported above, includes a benefit of
$2.9 million included in discontinued operations in each year for
2013, 2012 and 2011. The curtailment and settlement are included in
the gain on sale of Publishing Subsidiaries, which is also reported in
discontinued operations.
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, 2013, 2012 and 2011, were 3.30%, 3.90% and 4.60%,
respectively. AOCI included the following components of unrecognized net
periodic benefit for the postretirement plans:
As of December 31
(in thousands) 2013 2012
Unrecognized actuarial gain ........... $ (13,928) $(25,525)
Unrecognized prior service credit ........ (2,306) (26,128)
Gross Amount (16,234) (51,653)
Deferred tax liability .................. 6,494 20,661
Net Amount ........................ $ (9,740) $(30,992)
During 2014, the Company expects to recognize the following amortiz-
ation components of net periodic cost for the other postretirement plans:
(in thousands) 2014
Actuarial gain recognition ......................... $(2,076)
Prior service credit recognition ...................... $ (783)
Multiemployer Pension Plans. The Company contributed to a number of
multiemployer defined benefit pension plans under the terms of collective-
bargaining agreements that covered certain union-represented employees.
In March 2013, the Company recorded a $0.4 million charge as The
Herald unilaterally withdrew from the Western Conference Teamsters
Pension Trust Fund as a result of the sale of its business. In 2012, The
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. In 2011, The
Herald notified the union and the CWA/ITU Negotiated Pension Plan of its
unilateral withdrawal from the Plan effective December 18, 2011. In
connection with this action, The Herald recorded a $2.4 million charge in
2011 based on an estimate of the withdrawal liability. Payment of the
actual withdrawal liability will relieve the Company of further liability to the
Plans, absent certain circumstances prescribed by law.
The Company’s total contributions to all multiemployer pension plans
amounted to $0.1 million in 2013, $0.2 million in 2012 and $0.4 million
in 2011.
Savings Plans. The Company recorded expense associated with
retirement benefits provided under incentive savings plans (primarily
401(k) plans) of approximately $9.0 million in 2013, $12.7 million in
2012 and $14.6 million in 2011.
15. OTHER NON-OPERATING (EXPENSE) INCOME
A summary of non-operating (expense) income is as follows:
Year Ended December 31
(in thousands) 2013 2012 2011
Foreign currency (losses) gains,
net ................... $(13,382) $ 3,132 $ (3,263)
Impairment write-down on a
marketable equity security . . (10,438) (17,998) (53,793)
(Losses) gains on sales or write-
downs of cost method
investments, net .......... (1,761) 6,639 419
Other, net ............... 1,830 2,771 1,437
Total Other Non-Operating
(Expense) Income ........ $(23,751) $ (5,456) $(55,200)
16. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The other comprehensive income (loss) consists of the following
components:
Year Ended December 31, 2013
(in thousands) Before-Tax Amount Income Tax After-Tax Amount
Foreign currency translation
adjustments
Translation adjustments arising
duringtheyear .......... $ (1,059) $ — $ (1,059)
Unrealized gains on available-
for-sale securities
Unrealized gains for the
year ................. 95,629 (38,251) 57,378
Reclassification adjustment for
write-down on available-for-
sale securities, net of gain,
includedinnetincome..... 9,554 (3,822) 5,732
105,183 (42,073) 63,110
Pension and other
postretirement plans
Actuarialgain ............ 762,806 (305,123) 457,683
Amortization of net actuarial loss
includedinnetincome..... 3,096 (1,238) 1,858
Amortization of net prior service
credit included in net
income ............... (1,383) 553 (830)
Curtailments and settlements . . . (124,051) 49,617 (74,434)
640,468 (256,191) 384,277
Cash flow hedge
Gainfortheyear .......... 520 (208) 312
Other Comprehensive
Income ............... $ 745,112 $(298,472) $446,640
78 GRAHAM HOLDINGS COMPANY