Washington Post 2010 Annual Report Download - page 97

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SERP
(in thousands) 2010 2009
Change in Benefit Obligation
Benefitobligationatbeginningofyear .....
$ 73,845 $ 69,587
Service cost ....................... 1,381 1,334
Interest cost ....................... 4,244 4,128
Actuarial loss ..................... 2,847 2,778
Benefits paid and other .............. (2,914) (3,982)
Benefit obligation at end of year .......$ 79,403 $ 73,845
Change in Plan Assets
Fairvalueofassetsatbeginningofyear ....
$—$—
Employer contributions and other ....... 2,914 3,982
Benefits paid and other .............. (2,914) (3,982)
Fair value of assets at end of year .....$—$—
Funded status .....................$(79,403) $(73,845)
The accumulated benefit obligation for the Company’s pension
plans at January 2, 2011 and January 3, 2010, was $1,040.5
million and $954.8 million, respectively. The accumulated
benefit obligation for the Company’s SERP at January 2, 2011
and January 3, 2010, was $72.0 million and $67.8 million,
respectively. The amounts recognized in the Company’s
Consolidated Balance Sheets for its defined benefit pension
plans at January 2, 2011 and January 3, 2010 are as follows:
Pension Plans SERP
(in thousands) 2010 2009 2010 2009
Noncurrent asset . . . $538,753 $409,445 $—$—
Current liability .... ——(3,601) (3,472)
Noncurrent
liability ........ ——(75,802) (70,373)
Recognized asset
(liability) ....... $538,753 $409,445 $(79,403) $(73,845)
Key assumptions utilized for determining the benefit obligation at
January 2, 2011 and January 3, 2010 are as follows:
Pension Plans SERP
2010 2009 2010 2009
Discount rate ............... 5.6% 6.0% 5.6% 6.0%
Rate of compensation increase . . 4.0% 4.0% 4.0% 4.0%
The Company made no contributions to its pension plans in 2010,
2009 and 2008, and the Company does not expect to make any
contributions in 2011. The Company made contributions to its SERP
of $2.9 million and $4.0 million for the years ended January 2,
2011 and January 3, 2010, respectively. As the plan is unfunded,
the Company makes contributions to the SERP based on actual
benefit payments.
At January 2, 2011, future estimated benefit payments, excluding
charges for early retirement programs, are as follows:
(in millions) Pension Plans SERP
2011 ............................ $ 71.1 $ 3.7
2012 ............................ $ 67.2 $ 4.2
2013 ............................ $ 66.9 $ 4.4
2014 ............................ $ 67.4 $ 4.6
2015 ............................ $ 68.0 $ 4.7
2016–2020 ....................... $360.1 $27.3
The total cost (benefit) arising from the Company’s defined benefit
pension plans for the years ended January 2, 2011, January 3,
2010 and December 28, 2008, including a portion included in
discontinued operations, consists of the following components:
Pension Plans
(in thousands) 2010 2009 2008
Service cost ...............$ 26,976 $ 29,214 $ 27,169
Interest cost ............... 60,329 56,994 52,986
Expected return on assets ..... (95,340) (98,780) (104,229)
Amortization of
transition asset ........... (29) (42) (42)
Amortization of prior
service cost ............. 4,201 4,505 4,633
Recognized actuarial loss (gain) —40 (6,168)
Net periodic benefit for the
year .................. (3,863) (8,069) (25,651)
Early retirement
programs expense ........ —64,541 105,174
Special termination benefits . . . 5,295 ——
Recognition of prior service cost 2,369 ——
Total cost for the year .......$ 3,801 $ 56,472 $ 79,523
Other Changes in Plan Assets
and Benefit Obligations
Recognized in Other
Comprehensive Income:
Current year actuarial
(gain) loss ..............$(126,568) $(141,362) $ 633,639
Amortization of
transition asset ........... 29 42 42
Amortization of prior
service cost ............. (6,570) (4,505) (4,633)
Recognized actuarial
(loss) gain .............. —(40) 6,168
Total recognized in other
comprehensive income
(before tax effects) ........$(133,109) $(145,865) $ 635,216
Total recognized in total
(benefit) cost and other
comprehensive income
(before tax effects) ........$(129,308) $ (89,393) $ 714,739
SERP
(in thousands) 2010 2009 2008
Service cost ...............$ 1,381 $ 1,334 $ 1,404
Interest cost ............... 4,244 4,128 4,141
Amortization of prior service cost 406 446 446
Recognized actuarial loss .... 1,068 1,676 2,325
Netperiodiccostfortheyear .. 7,099 7,584 8,316
Early retirement
programs expense ........ —— 5,903
Total cost for the year .......$ 7,099 $ 7,584 $ 14,219
Other Changes in Benefit
Obligations Recognized in
Other Comprehensive
Income:
Current year actuarial loss ....$ 2,656 $ 2,778 $ 7,304
Amortization of prior
servicecost ............. (406) (446) (446)
Recognized net actuarial loss
...................... (877) (1,676) (2,325)
Total recognized in other
comprehensive income
(before tax effects) ........$ 1,373 $ 656 $ 4,533
Total recognized in total cost
and other comprehensive
income (before tax effects) ..$ 8,472 $ 8,240 $ 18,752
2010 FORM 10-K 81