Washington Post 2011 Annual Report Download - page 93

certain union-represented employee groups. Most of the Company’s
employees are covered by these plans.
The Company also provides health care and life insurance benefits
to certain retired employees. These employees become eligible for
benefits after meeting age and service requirements.
The Company uses a measurement date of December 31 for its
pension and other postretirement benefit plans.
Defined Benefit Plans. The Company’s defined benefit pension
plans consist of various pension plans and a Supplemental Executive
Retirement Plan (SERP) offered to certain executives of the Company.
In 2011, the Company offered a Voluntary Retirement Incentive
Program to certain employees of Robinson Terminal Warehouse
Corporation and the Post and recorded early retirement expense of
$0.6 million. The early retirement program expense for these
programs is funded mostly from the assets of the Company’s
pension plans.
In connection with the Newsweek sale in 2010, the Company
recorded $5.3 million in special termination benefits expense and
$2.4 million in prior service cost expense; these amounts are
included in discontinued operations.
In 2009, 44 Newsweek employees accepted a Voluntary
Retirement Incentive Program. Early retirement program expense of
$6.6 million was recorded in 2009 and is included in discontinued
operations. The early retirement program expense for this program
is funded mostly from the assets of the Company’s pension plans.
In 2009, a total of 221 employees of The Washington Post
newspaper accepted a Voluntary Retirement Incentive Program, and
early retirement program expense of $56.8 million was recorded,
funded mostly from the assets of the Company’s pension plans. In
2009, the Company offered a Voluntary Retirement Incentive Program
to certain employees at Robinson Terminal Warehouse Corporation;
$1.1 million in early retirement program expense was recorded, also
funded mostly from the assets of the Company’s pension plans.
The following table sets forth obligation, asset and funding
information for the Company’s defined benefit pension plans at
December 31, 2011 and January 2, 2011:
Pension Plans
(in thousands) 2011 2010
Change in Benefit Obligation
Benefit obligation at beginning of year . . . $1,113,205 $1,031,371
Service cost ...................... 27,619 26,976
Interest cost ...................... 60,033 60,329
Amendments ..................... 2,776 5,295
Actuarial loss ..................... 140,126 53,822
Benefits paid and other ............. (64,444) (64,588)
Benefit obligation at end of year ...... $1,279,315 $1,113,205
Change in Plan Assets
Fair value of assets at beginning of year . . $1,651,958 $1,440,816
Actual return on plan assets .......... 229,063 275,730
Benefits paid and other ............. (64,444) (64,588)
Fair value of assets at end of year ..... $1,816,577 $1,651,958
Funded status ..................... $ 537,262 $ 538,753
SERP
(in thousands) 2011 2010
Change in Benefit Obligation
Benefitobligationatbeginningofyear ........ $ 79,403 $ 73,845
Service cost .......................... 1,655 1,381
Interest cost ........................... 4,342 4,244
Amendments .......................... 369 —
Actuarial loss ......................... 9,059 2,847
Benefits paid and other .................. (1,965) (2,914)
Benefit obligation at end of year ........... $ 92,863 $ 79,403
Change in Plan Assets
Fairvalueofassetsatbeginningofyear ....... $—$—
Employer contributions and other ........... 3,114 2,914
Benefits paid .......................... (3,114) (2,914)
Fair value of assets at end of year .......... $—$—
Funded status .......................... $(92,863) $(79,403)
The accumulated benefit obligation for the Company’s pension plans
at December 31, 2011 and January 2, 2011, was $1,191.9 million
and $1,040.5 million, respectively. The accumulated benefit
obligation for the Company’s SERP at December 31, 2011 and
January 2, 2011, was $86.6 million and $72.0 million, respectively.
The amounts recognized in the Company’s Consolidated Balance
Sheets for its defined benefit pension plans at December 31, 2011
and January 2, 2011 are as follows:
Pension Plans SERP
(in thousands) 2011 2010 2011 2010
Noncurrent asset . . $537,262 $538,753 $—$—
Current liability .... ——(4,002) (3,601)
Noncurrent
liability ........ ——(88,861) (75,802)
Recognized asset
(liability) ....... $537,262 $538,753 $(92,863) $(79,403)
Key assumptions utilized for determining the benefit obligation at
December 31, 2011 and January 2, 2011 are as follows:
Pension Plans SERP
2011 2010 2011 2010
Discount rate .................. 4.7% 5.6% 4.7% 5.6%
Rate of compensation increase ..... 4.0% 4.0% 4.0% 4.0%
The Company made no contributions to its pension plans in 2011,
2010 and 2009, and the Company does not expect to make any
contributions in 2012. The Company made contributions to its SERP
of $3.1 million and $2.9 million for the years ended December 31,
2011 and January 2, 2011, respectively. As the plan is unfunded,
the Company makes contributions to the SERP based on actual
benefit payments.
At December 31, 2011, future estimated benefit payments,
excluding charges for early retirement programs, are as follows:
(in millions) Pension Plans SERP
2012 ............................ $ 70.9 $ 4.3
2013 ............................ $ 69.2 $ 4.5
2014 ............................ $ 69.2 $ 4.8
2015 ............................ $ 69.1 $ 4.9
2016 ............................ $ 70.1 $ 5.5
2017–2021 ...................... $375.2 $29.8
2011 FORM 10-K 81