Washington Post 2007 Annual Report Download - page 89

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The amounts recognized in the consolidated balance sheets for
the Company’s other postretirement plans at December 30, 2007
and December 31, 2006 (in thousands):
2007 2006
Postretirement Plans
Current liability ................. $(5,091) $ (5,220)
Non-current liability . ............. (81,041) (81,337)
Recognized liability . ............. $(86,132) $(86,557)
In 2006 and 2007, the Company amended certain of its
postretirement medical plans to modify the cost sharing
between retirees and the Company; these amendments
resulted in a greater portion of the overall cost of
postretirement medical plan expenses to be paid for by
retirees in the future. The amendments resulted in a significant
decrease in the Company’s unrecognized prior service cost at
December 31, 2006 and total costs for 2007.
The discount rates utilized for determining the benefit obligation
at December 30, 2007 and December 31, 2006 for the
postretirement plans were 5.80% and 5.85%, respectively.
Theassumedhealthcarecosttrendrateusedinmeasuringthe
postretirement benefit obligation at December 30, 2007 was
9.5% for both pre-age 65 and post-age 65 benefits, decreasing
to 5.0% in the year 2018 and thereafter.
Assumed healthcare cost trend rates have a significant effect
on the amounts reported for the healthcare plans. A change of
1 percentage point in the assumed healthcare cost trend rates
wouldhavethefollowingeffects(inthousands):
1%
Increase 1%
Decrease
Benefit obligation at end of year . . . . . . $11,481 $(10,639)
Service cost plus interest cost . . . ..... $ 1,207 $ (1,167)
The Company made contributions to its postretirement benefit plans
of $4.3 million and $5.7 million for the years ended December 30,
2007 and December 31, 2006, 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 December 30, 2007, future estimated benefit payments,
net of Medicare Subsidy, are as follows (in millions):
Postretirement
Plans
2008 . . . .......................... $ 5.2
2009 . . . .......................... $ 5.5
2010 . . . .......................... $ 5.9
2011 . . . .......................... $ 6.1
2012 . . . .......................... $ 6.4
2013–2017 . . . ...................... $34.3
The total cost arising from the Company’s postretirement plans
for the years ended December 30, 2007, December 31, 2006
and January 1, 2006, consists of the following components (in
thousands):
2007 2006 2005
Postretirement Plans
Service cost . ........... $3,558 $ 5,270 $ 6,026
Interest cost . ........... 4,832 6,611 7,434
Amortization of prior service
credit............... (4,860) (2,551) (588)
Recognized actuarial gain . . . (1,671) (864) (1,061)
Total cost for the year ...... $1,859 $ 8,466 $11,811
Other changes in plan assets
and benefit obligations
recognized in other
comprehensive income:
Current year actuarial gain . . . (329)
Current year prior service
credit............... (4,234)
Amortization of prior service
credit............... 4,860
Recognized actuarial gain . . . 1,671
Total recognized in other
comprehensive income
(before tax effects) ...... $1,968
Total recognized in net
periodic cost and other
comprehensive income
(before tax effects) ...... $3,827 $ 8,466 $11,811
The costs for the Company’s postretirement plans are actuarially
determined. The discount rates utilized to determine periodic
cost for the years ended December 30, 2007, December 31,
2006 and January 1, 2006 were 5.85%, 5.60% and 5.75%,
respectively.
At December 30, 2007 and December 31, 2006, accumulated
other comprehensive income (AOCI) included the following
components of unrecognized net periodic benefit for the
postretirement plans, respectively (in thousands):
December 30,
2007 December 31,
2006
Unrecognized actuarial gain. . . . $(13,061) $(14,403)
Unrecognized prior service
credit . ............... (52,115) (52,741)
Gross amount . . ........... (65,176) (67,144)
Deferred tax liability . . ....... 26,070 26,858
Net amount . . . ........... $(39,106) $(40,286)
During 2008, the Company expects to recognize the following
amortization components of net periodic cost for the postretirement
plans (in thousands):
2008
Actuarial gain recognition ................... $(1,485)
Prior service credit recognition. . ............... (5,144)
2007 FORM 10-K 73