|
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables)
|
12 Months Ended |
|
Dec. 31, 2012
|
| Defined Benefit Plan Disclosure [Line Items] |
|
| Annual Costs Related to Retirement Plans |
The following table summarizes the annual costs related to the retirement plans for 2012, 2011 and 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
2012 |
|
2011 |
|
2010 |
Defined benefit pension plans |
$ |
55.2 |
|
|
$ |
37.8 |
|
|
$ |
45.6 |
|
Defined contribution pension plans |
6.7 |
|
|
5.7 |
|
|
4.2 |
|
Other postretirement benefits |
28.1 |
|
|
26.8 |
|
|
24.2 |
|
Total |
$ |
90.0 |
|
|
$ |
70.3 |
|
|
$ |
74.0 |
|
|
| Obligations and Funded Status |
The following tables and information provide additional disclosures for the years ended December 31, 2012 and 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Pension Benefits |
|
Other Benefits |
Change in benefit obligations: |
2012 |
|
2011 |
|
2012 |
|
2011 |
Benefit obligations — beginning of year |
$ |
1,141.4 |
|
|
$ |
1,022.3 |
|
|
$ |
488.4 |
|
|
$ |
440.2 |
|
Service cost (excluding expenses) |
32.0 |
|
|
23.6 |
|
|
14.7 |
|
|
11.1 |
|
Interest cost |
48.4 |
|
|
51.4 |
|
|
20.6 |
|
|
22.3 |
|
Plan amendments |
2.8 |
|
|
— |
|
|
(58.3 |
) |
|
— |
|
Actuarial loss |
84.3 |
|
|
117.3 |
|
|
11.3 |
|
|
36.5 |
|
Benefits paid |
(71.0 |
) |
|
(67.3 |
) |
|
(26.9 |
) |
|
(25.5 |
) |
Participant contributions |
— |
|
|
— |
|
|
4.6 |
|
|
4.6 |
|
Federal subsidy on benefits paid |
— |
|
|
— |
|
|
0.8 |
|
|
0.9 |
|
Exchange rate gain |
6.4 |
|
|
(5.9 |
) |
|
4.6 |
|
|
(1.7 |
) |
Benefit obligations — end of year |
$ |
1,244.3 |
|
|
$ |
1,141.4 |
|
|
$ |
459.8 |
|
|
$ |
488.4 |
|
|
|
|
|
|
|
|
|
Change in plan assets: |
|
|
|
|
|
|
|
Fair value of plan assets — beginning of year |
$ |
744.1 |
|
|
$ |
734.3 |
|
|
$ |
193.5 |
|
|
$ |
174.2 |
|
Actual return on plan assets |
92.5 |
|
|
10.8 |
|
|
26.1 |
|
|
1.9 |
|
Participant contributions |
— |
|
|
— |
|
|
1.7 |
|
|
1.6 |
|
Employer contributions |
67.7 |
|
|
70.1 |
|
|
23.3 |
|
|
23.2 |
|
Benefits paid |
(71.0 |
) |
|
(67.3 |
) |
|
(7.6 |
) |
|
(7.4 |
) |
Exchange rate gain |
5.4 |
|
|
(3.8 |
) |
|
— |
|
|
— |
|
Fair value of plan assets — end of year |
$ |
838.7 |
|
|
$ |
744.1 |
|
|
$ |
237.0 |
|
|
$ |
193.5 |
|
|
|
|
|
|
|
|
|
Funded status at December 31: |
|
|
|
|
|
|
|
Fair value of plan assets |
$ |
838.7 |
|
|
$ |
744.1 |
|
|
$ |
237.0 |
|
|
$ |
193.5 |
|
Benefit obligations |
(1,244.3 |
) |
|
(1,141.4 |
) |
|
(459.8 |
) |
|
(488.4 |
) |
Funded status (plan assets less benefit obligations) |
$ |
(405.6 |
) |
|
$ |
(397.3 |
) |
|
$ |
(222.8 |
) |
|
$ |
(294.9 |
) |
Amount recognized at December 31 |
$ |
(405.6 |
) |
|
$ |
(397.3 |
) |
|
$ |
(222.8 |
) |
|
$ |
(294.9 |
) |
|
|
|
|
|
|
|
|
Amounts recognized in Statements of Financial Position: |
|
|
|
|
|
|
|
Current liabilities |
$ |
(1.8 |
) |
|
$ |
(2.6 |
) |
|
$ |
(8.3 |
) |
|
$ |
(23.8 |
) |
Noncurrent liabilities |
(403.8 |
) |
|
(394.7 |
) |
|
(214.5 |
) |
|
(271.1 |
) |
Net amount recognized |
$ |
(405.6 |
) |
|
$ |
(397.3 |
) |
|
$ |
(222.8 |
) |
|
$ |
(294.9 |
) |
|
|
|
|
|
|
|
|
Amounts recognized in accumulated other comprehensive income: |
|
|
|
|
|
|
|
Net actuarial loss |
$ |
429.2 |
|
|
$ |
409.1 |
|
|
$ |
176.8 |
|
|
$ |
182.9 |
|
Prior service cost |
17.2 |
|
|
18.8 |
|
|
(48.8 |
) |
|
8.1 |
|
Transition asset |
— |
|
|
— |
|
|
— |
|
|
(3.0 |
) |
Net amount recognized |
$ |
446.4 |
|
|
$ |
427.9 |
|
|
$ |
128.0 |
|
|
$ |
188.0 |
|
|
|
|
|
|
|
|
|
|
The estimated amounts that will be amortized from accumulated
other comprehensive income into net periodic benefit cost in 2013:
|
|
|
|
|
|
|
|
Net actuarial loss |
$ |
30.3 |
|
|
|
|
$ |
11.1 |
|
|
|
Prior service cost |
3.0 |
|
|
|
|
(3.6 |
) |
|
|
Net amount recognized |
$ |
33.3 |
|
|
|
|
$ |
7.5 |
|
|
|
|
| Fair Value Of Plan Assets, Benefit Obligation And Funded Status |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
2012 |
|
Pension Plans |
|
Other Benefits |
|
Salaried |
|
Hourly |
|
Mining |
|
SERP |
|
Total |
|
Salaried |
|
Hourly |
|
Total |
Fair value of plan assets |
$ |
328.2 |
|
|
$ |
506.4 |
|
|
$ |
4.1 |
|
|
$ |
— |
|
|
$ |
838.7 |
|
|
$ |
— |
|
|
$ |
237.0 |
|
|
$ |
237.0 |
|
Benefit obligation |
(464.4 |
) |
|
(764.8 |
) |
|
(6.4 |
) |
|
(8.7 |
) |
|
(1,244.3 |
) |
|
(72.6 |
) |
|
(387.2 |
) |
|
(459.8 |
) |
Funded status |
$ |
(136.2 |
) |
|
$ |
(258.4 |
) |
|
$ |
(2.3 |
) |
|
$ |
(8.7 |
) |
|
$ |
(405.6 |
) |
|
$ |
(72.6 |
) |
|
$ |
(150.2 |
) |
|
$ |
(222.8 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 |
|
Pension Plans |
|
Other Benefits |
|
Salaried |
|
Hourly |
|
Mining |
|
SERP |
|
Total |
|
Salaried |
|
Hourly |
|
Total |
Fair value of plan assets |
$ |
289.1 |
|
|
$ |
451.8 |
|
|
$ |
3.2 |
|
|
$ |
— |
|
|
$ |
744.1 |
|
|
$ |
— |
|
|
$ |
193.5 |
|
|
$ |
193.5 |
|
Benefit obligation |
(419.3 |
) |
|
(708.0 |
) |
|
(5.3 |
) |
|
(8.8 |
) |
|
(1,141.4 |
) |
|
(70.7 |
) |
|
(417.7 |
) |
|
(488.4 |
) |
Funded status |
$ |
(130.2 |
) |
|
$ |
(256.2 |
) |
|
$ |
(2.1 |
) |
|
$ |
(8.8 |
) |
|
$ |
(397.3 |
) |
|
$ |
(70.7 |
) |
|
$ |
(224.2 |
) |
|
$ |
(294.9 |
) |
|
| Components Of Net Periodic Benefit Cost |
Components of Net Periodic Benefit Cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Pension Benefits |
|
Other Benefits |
|
2012 |
|
2011 |
|
2010 |
|
2012 |
|
2011 |
|
2010 |
Service cost |
$ |
32.0 |
|
|
$ |
23.6 |
|
|
$ |
18.5 |
|
|
$ |
14.7 |
|
|
$ |
11.1 |
|
|
$ |
7.5 |
|
Interest cost |
48.4 |
|
|
51.4 |
|
|
52.9 |
|
|
20.6 |
|
|
22.3 |
|
|
22.0 |
|
Expected return on plan assets |
(59.5 |
) |
|
(61.2 |
) |
|
(53.3 |
) |
|
(17.7 |
) |
|
(16.1 |
) |
|
(12.9 |
) |
Amortization: |
|
|
|
|
|
|
|
|
|
|
|
Net asset |
— |
|
|
— |
|
|
— |
|
|
(3.0 |
) |
|
(3.0 |
) |
|
(3.0 |
) |
Prior service costs (credits) |
3.9 |
|
|
4.4 |
|
|
4.4 |
|
|
1.9 |
|
|
3.7 |
|
|
1.7 |
|
Net actuarial loss |
30.4 |
|
|
19.6 |
|
|
23.1 |
|
|
11.6 |
|
|
8.8 |
|
|
8.9 |
|
Net periodic benefit cost |
$ |
55.2 |
|
|
$ |
37.8 |
|
|
$ |
45.6 |
|
|
$ |
28.1 |
|
|
$ |
26.8 |
|
|
$ |
24.2 |
|
Acquired through business combinations |
— |
|
|
— |
|
|
17.7 |
|
|
— |
|
|
— |
|
|
2.4 |
|
Current year actuarial (gain)/loss |
53.1 |
|
|
165.3 |
|
|
(3.1 |
) |
|
3.2 |
|
|
46.8 |
|
|
34.6 |
|
Amortization of net loss |
(30.4 |
) |
|
(19.6 |
) |
|
(23.1 |
) |
|
(11.6 |
) |
|
(8.8 |
) |
|
(8.9 |
) |
Current year prior service cost |
2.8 |
|
|
— |
|
|
3.7 |
|
|
(58.3 |
) |
|
— |
|
|
— |
|
Amortization of prior service (cost) credit |
(3.9 |
) |
|
(4.4 |
) |
|
(4.4 |
) |
|
(1.9 |
) |
|
(3.7 |
) |
|
(1.7 |
) |
Amortization of transition asset |
— |
|
|
— |
|
|
— |
|
|
3.0 |
|
|
3.0 |
|
|
3.0 |
|
Total recognized in other comprehensive income |
$ |
21.6 |
|
|
$ |
141.3 |
|
|
$ |
(9.2 |
) |
|
$ |
(65.6 |
) |
|
$ |
37.3 |
|
|
$ |
29.4 |
|
|
Total recognized in net periodic cost and other
comprehensive income
|
$ |
76.8 |
|
|
$ |
179.1 |
|
|
$ |
36.4 |
|
|
$ |
(37.5 |
) |
|
$ |
64.1 |
|
|
$ |
53.6 |
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
December 31, 2012 |
|
Defined
Benefit
Pensions
|
|
Other
Benefits
|
Fair value of plan assets |
$ |
838.7 |
|
|
$ |
237.0 |
|
Benefit obligation |
1,244.3 |
|
|
459.8 |
|
Underfunded status of plan |
$ |
(405.6 |
) |
|
$ |
(222.8 |
) |
Additional shutdown and early retirement benefits |
$ |
32.5 |
|
|
$ |
31.5 |
|
|
| Additional Information |
Additional Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Pension Benefits |
|
Other Benefits |
|
2012 |
|
2011 |
|
2010 |
|
2012 |
|
2011 |
|
2010 |
Effect of change in mine ownership & noncontrolling interest |
$ |
54.8 |
|
|
$ |
53.3 |
|
|
$ |
49.9 |
|
|
$ |
8.6 |
|
|
$ |
12.5 |
|
|
$ |
10.7 |
|
Actual return on plan assets |
92.5 |
|
|
10.8 |
|
|
87.1 |
|
|
26.1 |
|
|
1.9 |
|
|
20.1 |
|
|
| Assumed Health Care Cost Trend Rates |
Assumed health care cost trend rates at December 31 were:
|
|
|
|
|
|
|
2012 |
|
2011 |
|
U.S. plan health care cost trend rate assumed for next year |
7.50 |
% |
7.50 |
% |
Canadian plan health care cost trend rate assumed for next year |
7.50 |
|
8.00 |
|
Ultimate health care cost trend rate |
5.00 |
|
5.00 |
|
U.S. plan year that the ultimate rate is reached |
2023 |
|
2017 |
|
Canadian plan year that the ultimate rate is reached |
2018 |
|
2018 |
|
|
| Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates |
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A change of one percentage point in assumed health care cost trend rates would have the following effects:
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Increase |
|
Decrease |
Effect on total of service and interest cost |
$ |
7.0 |
|
|
$ |
(5.4 |
) |
Effect on postretirement benefit obligation |
53.7 |
|
|
(43.4 |
) |
|
| Plan Assets and Asset Allocation |
The following table reflects the actual asset allocations for pension and VEBA plan assets as of December 31, 2012 and 2011, as well as the 2013 weighted average target asset allocations as of December 31, 2012. Equity investments include securities in large-cap, mid-cap and small-cap companies located in the U.S. and worldwide. Fixed income investments primarily include corporate bonds and government debt securities. Alternative investments include hedge funds, private equity, structured credit and real estate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Assets |
|
VEBA Assets |
Asset Category |
2013
Target
Allocation
|
|
Percentage of
Plan Assets at
December 31,
|
|
2013
Target
Allocation
|
|
Percentage of
Plan Assets at
December 31,
|
2012 |
|
2011 |
|
2012 |
|
2011 |
Equity securities |
44.4 |
% |
|
45.9 |
% |
|
41.7 |
% |
|
39.9 |
% |
|
42.6 |
% |
|
42.0 |
% |
Fixed income |
28.6 |
% |
|
29.5 |
% |
|
31.1 |
% |
|
32.0 |
% |
|
32.9 |
% |
|
33.5 |
% |
Hedge funds |
10.0 |
% |
|
10.2 |
% |
|
13.5 |
% |
|
10.0 |
% |
|
9.8 |
% |
|
14.6 |
% |
Private equity |
5.4 |
% |
|
3.5 |
% |
|
5.2 |
% |
|
6.1 |
% |
|
2.6 |
% |
|
4.5 |
% |
Structured credit |
5.8 |
% |
|
6.7 |
% |
|
6.0 |
% |
|
5.0 |
% |
|
5.3 |
% |
|
— |
% |
Real estate |
5.8 |
% |
|
3.5 |
% |
|
2.2 |
% |
|
7.0 |
% |
|
6.7 |
% |
|
5.3 |
% |
Cash |
— |
% |
|
0.7 |
% |
|
0.3 |
% |
|
— |
% |
|
0.1 |
% |
|
0.1 |
% |
Total |
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
| Fair Value, Assets and Liabilities Measured on Recurring Basis |
The fair values of our pension plan assets at December 31, 2012 and 2011 by asset category are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
December 31, 2012 |
Asset Category |
Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total |
Equity securities: |
|
|
|
|
|
|
|
U.S. large-cap |
$ |
231.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
231.1 |
|
U.S. small/mid-cap |
39.2 |
|
|
— |
|
|
— |
|
|
39.2 |
|
International |
114.5 |
|
|
— |
|
|
— |
|
|
114.5 |
|
Fixed income |
209.1 |
|
|
38.4 |
|
|
— |
|
|
247.5 |
|
Hedge funds |
— |
|
|
— |
|
|
85.6 |
|
|
85.6 |
|
Private equity |
— |
|
|
— |
|
|
29.3 |
|
|
29.3 |
|
Structured credit |
— |
|
|
— |
|
|
56.2 |
|
|
56.2 |
|
Real estate |
— |
|
|
— |
|
|
29.4 |
|
|
29.4 |
|
Cash |
5.9 |
|
|
— |
|
|
— |
|
|
5.9 |
|
Total |
$ |
599.8 |
|
|
$ |
38.4 |
|
|
$ |
200.5 |
|
|
$ |
838.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
December 31, 2011 |
Asset Category |
Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total |
Equity securities: |
|
|
|
|
|
|
|
U.S. large-cap |
$ |
191.1 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
191.1 |
|
U.S. small/mid-cap |
29.2 |
|
|
— |
|
|
— |
|
|
29.2 |
|
International |
90.0 |
|
|
— |
|
|
— |
|
|
90.0 |
|
Fixed income |
231.1 |
|
|
— |
|
|
— |
|
|
231.1 |
|
Hedge funds |
— |
|
|
— |
|
|
100.7 |
|
|
100.7 |
|
Private equity |
8.6 |
|
|
— |
|
|
30.1 |
|
|
38.7 |
|
Structured credit |
— |
|
|
— |
|
|
44.9 |
|
|
44.9 |
|
Real estate |
— |
|
|
— |
|
|
16.5 |
|
|
16.5 |
|
Cash |
1.9 |
|
|
— |
|
|
— |
|
|
1.9 |
|
Total |
$ |
551.9 |
|
|
$ |
— |
|
|
$ |
192.2 |
|
|
$ |
744.1 |
|
|
| Effect of Fair Value Measurements Using Significant Unobservable Inputs on Changes in Plan Assets |
The following represents the effect of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets for the years ended December 31, 2012 and 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Year Ended December 31, 2012 |
|
Hedge Funds |
|
Private Equity
Funds
|
|
Structured
Credit Fund
|
|
Real
Estate
|
|
Total |
Beginning balance — January 1, 2012 |
$ |
100.7 |
|
|
$ |
30.1 |
|
|
$ |
44.9 |
|
|
$ |
16.5 |
|
|
$ |
192.2 |
|
Actual return on plan assets: |
|
|
|
|
|
|
|
|
|
|
Relating to assets still held at
the reporting date
|
4.2 |
|
|
1.4 |
|
|
11.3 |
|
|
4.9 |
|
|
21.8 |
|
|
Relating to assets sold during
the period
|
(0.3 |
) |
|
— |
|
|
— |
|
|
(0.5 |
) |
|
(0.8 |
) |
Purchases |
— |
|
|
2.2 |
|
|
— |
|
|
12.2 |
|
|
14.4 |
|
Sales |
(19.0 |
) |
|
(4.4 |
) |
|
— |
|
|
(3.7 |
) |
|
(27.1 |
) |
Ending balance — December 31, 2012 |
$ |
85.6 |
|
|
$ |
29.3 |
|
|
$ |
56.2 |
|
|
$ |
29.4 |
|
|
$ |
200.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Year Ended December 31, 2011 |
|
Hedge Funds |
|
Private Equity
Funds
|
|
Structured
Credit Fund
|
|
Real
Estate
|
|
Total |
Beginning balance — January 1, 2011 |
$ |
105.8 |
|
|
$ |
25.0 |
|
|
$ |
39.7 |
|
|
$ |
15.5 |
|
|
$ |
186.0 |
|
Actual return on plan assets: |
|
|
|
|
|
|
|
|
|
|
Relating to assets still held at
the reporting date
|
(2.4 |
) |
|
2.6 |
|
|
5.2 |
|
|
1.6 |
|
|
7.0 |
|
|
Relating to assets sold during
the period
|
0.5 |
|
|
3.0 |
|
|
— |
|
|
0.5 |
|
|
4.0 |
|
Purchases |
35.8 |
|
|
4.4 |
|
|
— |
|
|
— |
|
|
40.2 |
|
Sales |
(39.0 |
) |
|
(4.9 |
) |
|
— |
|
|
(1.1 |
) |
|
(45.0 |
) |
Ending balance — December 31, 2011 |
$ |
100.7 |
|
|
$ |
30.1 |
|
|
$ |
44.9 |
|
|
$ |
16.5 |
|
|
$ |
192.2 |
|
The following represents the effect of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets for the year ended December 31, 2012 and 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Year Ended December 31, 2012 |
|
Hedge Funds |
|
Private Equity
Funds
|
|
Structured Credit Fund |
|
Real
Estate
|
|
Total |
Beginning balance — January 1 |
$ |
28.3 |
|
|
$ |
6.8 |
|
|
$ |
— |
|
|
$ |
10.2 |
|
|
$ |
45.3 |
|
Actual return on plan assets: |
|
|
|
|
|
|
|
|
|
Relating to assets still held at the reporting date |
0.9 |
|
|
0.3 |
|
|
1.5 |
|
|
1.3 |
|
|
4.0 |
|
Purchases |
— |
|
|
0.2 |
|
|
11.0 |
|
|
4.4 |
|
|
15.6 |
|
Sales |
(6.0 |
) |
|
(1.1 |
) |
|
— |
|
|
— |
|
|
(7.1 |
) |
Ending balance — December 31 |
$ |
23.2 |
|
|
$ |
6.2 |
|
|
$ |
12.5 |
|
|
$ |
15.9 |
|
|
$ |
57.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Year Ended December 31, 2011 |
|
Hedge Funds |
|
Private Equity
Funds
|
|
Real
Estate
|
|
Total |
Beginning balance — January 1 |
$ |
24.0 |
|
|
$ |
4.9 |
|
|
$ |
— |
|
|
$ |
28.9 |
|
Actual return on plan assets: |
|
|
|
|
|
|
|
Relating to assets still held at the reporting date |
(0.4 |
) |
|
1.4 |
|
|
0.4 |
|
|
1.4 |
|
Purchases |
7.7 |
|
|
0.9 |
|
|
9.8 |
|
|
18.4 |
|
Sales |
(3.0 |
) |
|
(0.4 |
) |
|
— |
|
|
(3.4 |
) |
Ending balance — December 31 |
$ |
28.3 |
|
|
$ |
6.8 |
|
|
$ |
10.2 |
|
|
$ |
45.3 |
|
|
| Schedule Of Annual Contributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Pension
Benefits
|
|
Other Benefits |
Company Contributions |
VEBA |
|
Direct
Payments
|
|
Total |
2011 |
70.1 |
|
|
17.4 |
|
|
20.0 |
|
|
37.4 |
|
2012 |
67.7 |
|
|
17.4 |
|
|
21.6 |
|
|
39.0 |
|
2013 (Expected)* |
51.8 |
|
|
14.1 |
|
|
8.3 |
|
|
22.4 |
|
|
|
* |
Pursuant to the bargaining agreement, benefits can be paid from VEBA trusts that are at least 70 percent funded (all VEBA trusts are 70 percent funded at December 31, 2012).
|
|
| Estimated Net Periodic Benefit Cost |
For 2013, we estimate net periodic benefit cost as follows:
|
|
|
|
|
|
(In Millions) |
Defined benefit pension plans |
$ |
52.7 |
|
Other postretirement benefits |
17.1 |
|
Total |
$ |
69.8 |
|
|
| Estimated Future Benefit Payments |
Estimated Future Benefit Payments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
Pension
Benefits
|
|
Other Benefits |
|
Gross
Company
Benefits
|
|
Less
Medicare
Subsidy
|
|
Net
Company
Payments
|
2013 |
$ |
74.8 |
|
|
$ |
24.5 |
|
|
$ |
1.0 |
|
|
$ |
23.5 |
|
2014 |
80.8 |
|
|
26.1 |
|
|
1.1 |
|
|
25.0 |
|
2015 |
79.1 |
|
|
27.2 |
|
|
1.2 |
|
|
26.0 |
|
2016 |
79.4 |
|
|
27.3 |
|
|
1.3 |
|
|
26.0 |
|
2017 |
80.1 |
|
|
27.4 |
|
|
1.4 |
|
|
26.0 |
|
2018-2022 |
417.0 |
|
|
131.5 |
|
|
9.0 |
|
|
122.5 |
|
|
| Other Potential Benefit Obligations |
Following is a summary comparison of the total obligation:
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
December 31, 2012 |
|
Defined
Benefit
Pensions
|
|
Other
Benefits
|
Fair value of plan assets |
$ |
838.7 |
|
|
$ |
237.0 |
|
Benefit obligation |
1,244.3 |
|
|
459.8 |
|
Underfunded status of plan |
$ |
(405.6 |
) |
|
$ |
(222.8 |
) |
Additional shutdown and early retirement benefits |
$ |
32.5 |
|
|
$ |
31.5 |
|
|
|
Benefit Obligations [Member]
|
|
| Defined Benefit Plan Disclosure [Line Items] |
|
| Weighted-Average Assumptions Used to Determine Benefit Obligations |
Weighted-average assumptions used to determine benefit obligations at December 31 were:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits |
|
Other Benefits |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
U.S. plan discount rate |
3.70 |
% |
|
4.28 |
% |
|
3.70 |
% |
|
4.28 |
% |
Canadian plan discount rate |
3.75 |
|
|
4.00 |
|
|
4.00 |
|
|
4.25 |
|
Rate of compensation increase |
4.00 |
|
|
4.00 |
|
|
4.00 |
|
|
4.00 |
|
U.S. expected return on plan assets |
8.25 |
|
|
8.25 |
|
|
8.25 |
|
|
8.25 |
|
Canadian expected return on plan assets |
7.25 |
|
|
7.25 |
|
|
N/A |
|
|
7.25 |
|
|
| Weighted-Average Assumptions Used To Determine Net Benefit Costs |
Weighted-average assumptions used to determine net benefit cost for the years 2012, 2011 and 2010 were:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits |
|
Other Benefits |
|
|
2012 |
|
2011 |
|
2010 |
|
2012 |
|
2011 |
|
2010 |
|
U.S. plan discount rate |
4.28 |
% |
5.11 |
% |
5.66 |
% |
4.28/3.51 |
% (1) |
5.11 |
% |
5.66 |
% |
Canadian plan discount rate |
4.00 |
|
5.00 |
|
5.75/5.50 |
(2) |
4.25 |
|
5.00 |
|
6.00/5.75 |
(3) |
U.S. expected return on plan assets |
8.25 |
|
8.50 |
|
8.50 |
|
8.25 |
|
8.50 |
|
8.50 |
|
Canadian expected return on plan assets |
7.25 |
|
7.50 |
|
7.50 |
|
N/A |
|
7.50 |
|
7.50 |
|
Rate of compensation increase |
4.00 |
|
4.00 |
|
4.00 |
|
4.00 |
|
4.00 |
|
4.00 |
|
|
|
(1) |
4.28 percent for the Salaried Plan. For the Hourly Plan, 4.28 percent from January 1, 2012 through October 31, 2012, and 3.51 percent from November 1, 2012 through December 31, 2012.
|
|
|
(2) |
5.75 percent from January 1, 2010 through January 31, 2010, and 5.50 percent from February 1, 2010 through December 31, 2010.
|
|
|
(3) |
6.00 percent from January 1, 2010 through January 31, 2010, and 5.75 percent from February 1, 2010 through December 31, 2010.
|
|
|
Veba Trust [Member]
|
|
| Defined Benefit Plan Disclosure [Line Items] |
|
| Fair Value, Assets and Liabilities Measured on Recurring Basis |
The fair values of our other benefit plan assets at December 31, 2012 and 2011 by asset category are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
December 31, 2012 |
Asset Category |
Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total |
Equity securities: |
|
|
|
|
|
|
|
U.S. large-cap |
$ |
58.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
58.2 |
|
U.S. small/mid-cap |
10.3 |
|
|
— |
|
|
— |
|
|
10.3 |
|
International |
32.3 |
|
|
— |
|
|
— |
|
|
32.3 |
|
Fixed income |
78.1 |
|
|
— |
|
|
— |
|
|
78.1 |
|
Hedge funds |
— |
|
|
— |
|
|
23.2 |
|
|
23.2 |
|
Private equity |
— |
|
|
— |
|
|
6.2 |
|
|
6.2 |
|
Structured credit |
— |
|
|
— |
|
|
12.5 |
|
|
12.5 |
|
Real estate |
— |
|
|
— |
|
|
15.9 |
|
|
15.9 |
|
Cash |
0.3 |
|
|
— |
|
|
— |
|
|
0.3 |
|
Total |
$ |
179.2 |
|
|
$ |
— |
|
|
$ |
57.8 |
|
|
$ |
237.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Millions) |
|
December 31, 2011 |
Asset Category |
Quoted Prices in Active
Markets for Identical
Assets/Liabilities
(Level 1)
|
|
Significant Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Total |
Equity securities: |
|
|
|
|
|
|
|
U.S. large-cap |
$ |
46.5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
46.5 |
|
U.S. small/mid-cap |
7.9 |
|
|
— |
|
|
— |
|
|
7.9 |
|
International |
26.8 |
|
|
— |
|
|
— |
|
|
26.8 |
|
Fixed income |
64.9 |
|
|
— |
|
|
— |
|
|
64.9 |
|
Hedge funds |
— |
|
|
— |
|
|
28.3 |
|
|
28.3 |
|
Private equity |
1.9 |
|
|
— |
|
|
6.8 |
|
|
8.7 |
|
Real estate |
— |
|
|
— |
|
|
10.2 |
|
|
10.2 |
|
Cash |
0.2 |
|
|
— |
|
|
— |
|
|
0.2 |
|
Total |
$ |
148.2 |
|
|
$ |
— |
|
|
$ |
45.3 |
|
|
$ |
193.5 |
|
|