Washington Post 2008 Annual Report Download - page 87

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The total cost (benefit) arising from the Company’s defined benefit
pension plans for the years ended December 28, 2008,
December 30, 2007 and December 31, 2006 consists of the
following components:
Pension Plans SERP
(in thousands) 2008 2007 2006 2008 2007 2006
Service cost ................$ 27,169 $ 28,115 $ 27,298 $ 1,404 $ 1,542 $1,728
Interest cost ................ 52,986 47,201 43,707 4,141 3,213 2,936
Expected return on assets ...... (104,229) (98,066) (93,968) ———
Amortization of transition asset . . (42) (53) (82) ———
Amortization of prior service
cost .................... 4,633 5,057 4,857 446 446 412
Recognized actuarial (gain)
loss .................... (6,168) (4,534) (3,645) 2,325 1,565 1,589
Net periodic (benefit) cost for the
year .................... (25,651) (22,280) (21,833) 8,316 6,766 6,665
Early retirement programs
expense ................. 105,174 — 50,040 5,903 — 902
Total cost (benefit) for the
year .................... $ 79,523 $(22,280)$ 28,207 $14,219 $ 6,766 $7,567
Other Changes in Plan Assets
and Benefit Obligations
Recognized in Other
Comprehensive Income:
Current year actuarial loss
(gain) ...................$ 633,639 $(36,568) $ 7,304 $53
Current year prior service
credit ................... —(179) ——
Amortization of transition asset . . 42 53 ——
Amortization of prior service
cost .................... (4,633) (5,057) (446) (446)
Recognized actuarial gain
(loss) ................... 6,168 4,534 (2,325) (1,565)
Total recognized in other
comprehensive income
(before tax effects) ......... $ 635,216 $(37,217) $ 4,533 $(1,958)
Total recognized in total cost
(benefit) and other
comprehensive income
(before tax effects) ......... $ 714,739 $(59,497)$ 28,207 $18,752 $ 4,808 $7,567
The costs for the Company’s defined benefit pension plans are
actuarially determined. Below are the key assumptions utilized to
determine periodic cost for the years ended December 28, 2008,
December 30, 2007 and December 31, 2006:
Pension Plans SERP
2008 2007 2006 2008 2007 2006
Discount rate ............. 6.0% 6.0% 5.75% 6.0% 6.0% 5.75%
Expected return on plan
assets ................ 6.5% 6.5% 6.5% ———
Rate of compensation
increase ............... 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
In determining the expected rate of return on plan assets, the
Company considers the relative weighting of plan assets, the
historical performance of total plan assets and individual asset
classes and economic and other indicators of future performance. In
addition, the Company may consult with and consider the input of
financial and other professionals in developing appropriate return
benchmarks.
At December 28, 2008 and December 30, 2007, accumulated
other comprehensive income (AOCI) includes the following
components of unrecognized net periodic cost (benefit) for the
defined benefit plans:
Pension Plans SERP
(in thousands) 2008 2007 2008 2007
Unrecognized
actuarial loss
(gain) .......... $155,874 $(483,928) $16,053 $11,074
Unrecognized prior
service cost ..... 32,164 36,795 1,166 1,612
Unrecognized
transition asset . . . (71) (114) ——
Gross amount ..... 187,967 (447,247) 17,219 12,686
Deferred tax (benefit)
liability ......... (75,187) 178,899 (6,888) (5,074)
Net amount ....... $112,780 $(268,348) $10,331 $ 7,612
During 2009, the Company expects to recognize the following
amortization components of net periodic cost for the defined benefit
plans:
2009
(in thousands) Pension Plans SERP
Actuarial (gain) loss recognition ......... $ (250) $1,201
Prior service cost recognition ........... 4,505 446
Transition asset recognition ............ (42) —
Other Postretirement Plans. The following table sets forth
obligation, asset and funding information for the Company’s other
postretirement plans at December 28, 2008 and December 30,
2007:
Postretirement Plans
(in thousands) 2008 2007
Change in Benefit Obligation
Benefit obligation at beginning of year .... $ 86,132 $ 86,557
Service cost ........................ 3,770 3,558
Interest cost ........................ 4,846 4,832
Amendments ....................... 2,051 (4,234)
Actuarial gain ....................... (17,436) (599)
Benefits paid, net of Medicare Subsidy .... (3,961) (3,982)
Benefit obligation at end of year ........ $ 75,402 $ 86,132
Change in Plan Assets
Fair value of assets at beginning of year . . . $—$—
Employer contributions ................ 4,238 4,252
Benefits paid ....................... (4,238) (4,252)
Fair value of assets at end of year ....... $—$—
Funded status ....................... $(75,402) $(86,132)
2008 FORM 10-K 75