|
Pensions and Other Postretirement Benefits (Tables)
|
12 Months Ended |
|
Aug. 31, 2012
|
| Compensation And Retirement Disclosure [Abstract] |
|
| Summary of Pension and Other Postretirement Benefit Plans |
The following
represents information summarizing the Company’s pension and
other postretirement benefit plans. A measurement date of
August 31, 2012 was used for all plans.
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Year Ended
August 31, |
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Pension
Benefits |
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Other
Benefits |
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| |
|
2012 |
|
|
2011 |
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|
2012 |
|
|
2011 |
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| |
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(Dollars in
thousands) |
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Change in benefit
obligation:
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Benefit obligation at
September 1
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$ |
47,545 |
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$ |
48,875 |
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$ |
16,924 |
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|
$ |
17,580 |
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Service cost
|
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1,521 |
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1,617 |
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|
229 |
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|
272 |
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Interest cost
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2,729 |
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2,696 |
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|
972 |
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|
972 |
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Plan participants’
contributions
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— |
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— |
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119 |
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134 |
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Amendments
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212 |
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— |
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— |
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— |
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Actuarial (gain)
loss
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619 |
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(1,099 |
) |
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(170 |
) |
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|
333 |
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Change in
assumptions
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12,359 |
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(2,560 |
) |
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3,024 |
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(1,736 |
) |
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Benefits paid
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(1,996 |
) |
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(1,984 |
) |
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(641 |
) |
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(631 |
) |
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Benefit obligation at
August 31
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$ |
62,989 |
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$ |
47,545 |
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$ |
20,457 |
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$ |
16,924 |
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Change in plan
assets:
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Fair value of plan assets
at September 1
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$ |
36,328 |
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$ |
28,278 |
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$ |
— |
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$ |
— |
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Actual return on plan
assets
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3,688 |
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3,618 |
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— |
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— |
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Company
contributions
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4,052 |
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6,416 |
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522 |
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|
497 |
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Plan participants’
contributions
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— |
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— |
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119 |
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134 |
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Benefits paid
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(1,996 |
) |
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(1,984 |
) |
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(641 |
) |
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(631 |
) |
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Fair value of the plan
assets at August 31
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$ |
42,072 |
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$ |
36,328 |
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$ |
— |
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$ |
— |
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Funded
status:
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Net liability – Plan
assets less than projected benefit obligation
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$ |
(20,917 |
) |
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$ |
(11,217 |
) |
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$ |
(20,457 |
) |
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$ |
(16,924 |
) |
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Recognized
as:
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Current accrued benefit
liability
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$ |
— |
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$ |
— |
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$ |
(750 |
) |
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$ |
(731 |
) |
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Non-current accrued benefit
liability
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(20,917 |
) |
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(11,217 |
) |
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(19,707 |
) |
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(16,193 |
) |
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Net Amount
Recognized
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$ |
(20,917 |
) |
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$ |
(11,217 |
) |
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$ |
(20,457 |
) |
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$ |
(16,924 |
) |
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| Components of Accumulated Other Comprehensive Loss Unrecognized |
Accumulated
other comprehensive loss consists of the following amounts that
have not yet been recognized as components of net benefit cost
(dollars in thousands):
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August 31,
2012 |
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August 31,
2011 |
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Pension |
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Other |
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Pension |
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Other |
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Benefits |
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Benefits |
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Benefits |
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Benefits |
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Unrecognized prior service
cost (credit)
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$ |
1,529 |
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$ |
(307 |
) |
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$ |
1,545 |
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$ |
(459 |
) |
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Unrecognized net actuarial
loss
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22,976 |
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3,594 |
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11,545 |
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740 |
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Total
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$ |
24,505 |
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$ |
3,287 |
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$ |
13,090 |
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$ |
281 |
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| Benefit Obligations in Excess of Fair Value of Plan Assets |
Selected
information related to the Company’s defined benefit pension
plans that have benefit obligations in excess of fair value of plan
assets is presented below (dollars in thousands):
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August 31, |
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2012 |
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2011 |
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Projected benefit
obligation
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$ |
62,989 |
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$ |
47,545 |
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Accumulated benefit
obligation
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$ |
59,853 |
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$ |
46,113 |
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Fair value of plan
assets
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$ |
42,072 |
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$ |
36,328 |
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| Components of Net Periodic Benefit Cost |
Net Periodic Benefit
Cost
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Year Ended
August 31, |
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Pension
Benefits |
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Other
Benefits |
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| |
|
2012 |
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2011 |
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|
2010 |
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2012 |
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2011 |
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|
2010 |
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(Dollars in
thousands) |
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Components of net
periodic benefit cost
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Service cost
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$ |
1,521 |
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$ |
1,617 |
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$ |
1,608 |
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$ |
229 |
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$ |
272 |
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$ |
353 |
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Interest cost
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2,729 |
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2,696 |
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2,633 |
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|
972 |
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|
972 |
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1,077 |
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Expected return on plan
assets
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(2,914 |
) |
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(2,234 |
) |
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(2,022 |
) |
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— |
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— |
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— |
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Amortization of prior
service cost
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228 |
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|
228 |
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244 |
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(152 |
) |
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(152 |
) |
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(152 |
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Amortization of actuarial
loss
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|
773 |
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1,441 |
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1,312 |
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— |
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|
65 |
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|
294 |
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Benefit cost
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$ |
2,337 |
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$ |
3,748 |
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$ |
3,775 |
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$ |
1,049 |
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$ |
1,157 |
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$ |
1,572 |
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| Benefit Plan Assumptions |
Assumptions
The Company
assesses its benefit plan assumptions on a regular basis.
Assumptions used in determining plan information are as
follows:
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August 31, |
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Pension
Benefits |
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Other
Benefits |
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2012 |
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|
2011 |
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2010 |
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|
2012 |
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2011 |
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|
2010 |
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Weighted-average
assumptions used to calculate net periodic expense:
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Discount rate
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5.87 |
% |
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5.64 |
% |
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5.98 |
% |
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5.87 |
% |
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|
5.64 |
% |
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|
5.98 |
% |
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Expected return on plan
assets
|
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|
8.00 |
% |
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8.00 |
% |
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|
8.00 |
% |
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Rate of compensation
increase
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3.00 |
% |
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4.00 |
% |
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4.00 |
% |
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Weighted-average
assumptions used to calculate benefit obligations at
August 31:
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Discount rate
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4.28 |
% |
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5.87 |
% |
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5.64 |
% |
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4.28 |
% |
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|
5.87 |
% |
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|
5.64 |
% |
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Expected return on plan
assets
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|
7.00 |
% |
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|
8.00 |
% |
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|
8.00 |
% |
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Rate of compensation
increase
|
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|
3.00 |
% |
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3.00 |
% |
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4.00 |
% |
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| Assumed Health Care Cost Trend Rates |
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2012 |
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2011 |
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2010 |
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Assumed health care cost
trend rates:
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Current health care trend
assumption
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8.00 |
% |
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|
8.00 |
% |
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|
8.00 |
% |
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Ultimate health care trend
rate
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|
4.50 |
% |
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|
4.50 |
% |
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|
4.50 |
% |
|
Year ultimate health care
trend is reached
|
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|
2030 |
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|
2029 |
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|
2028 |
|
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| Effect of Changes in Assumed Health Care Cost Trend Rate |
The assumed
health care cost trend rate could have a significant effect on the
amounts reported. A one-percentage-point change in the assumed
health care cost trend rate would have the following
effects:
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1-Percentage-
Point
Increase |
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1-Percentage-
Point
Decrease |
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(Dollars in
thousands) |
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Effect on total of service
and interest cost components in fiscal 2012
|
|
$ |
180 |
|
|
$ |
(149 |
) |
|
Effect on postretirement
accumulated benefit obligation as of August 31,
2012
|
|
$ |
3,115 |
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|
$ |
(2,558 |
) |
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| Weighted Average Asset Allocations of Investment Portfolio for Pension Plans |
The weighted
average asset allocations of the investment portfolio for the
pension plans at August 31 are as follows:
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Target |
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August 31, |
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Allocation |
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2012 |
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|
2011 |
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U.S. equities
|
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|
55 |
% |
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|
56 |
% |
|
|
56 |
% |
|
International
equities
|
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|
15 |
% |
|
|
15 |
% |
|
|
16 |
% |
|
Fixed income
investments
|
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|
25 |
% |
|
|
24 |
% |
|
|
26 |
% |
|
Real estate
|
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|
5 |
% |
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|
5 |
% |
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|
2 |
% |
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| Fair Value of Pension Plan's Assets by Major Asset Category |
The following
table presents the fair value of the pension plan’s assets by
major asset category as of August 31, 2012.
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Quoted Prices |
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In
Active |
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|
Significant |
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Markets
for |
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Other |
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Significant |
|
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| |
|
Identical |
|
|
Observable |
|
|
Unobservable |
|
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| |
|
Instruments |
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Inputs |
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|
Inputs |
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| |
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(Level
1) |
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(Level
2) |
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(Level
3) |
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Total |
|
| |
|
(in
thousands) |
|
|
Common collective trust
funds
|
|
$ |
|
|
|
$ |
39,970 |
|
|
$ |
— |
|
|
$ |
39,970 |
|
|
Real estate equity
funds
|
|
|
— |
|
|
|
— |
|
|
|
2,102 |
|
|
|
2,102 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of plan
assets
|
|
$ |
— |
|
|
$ |
39,970 |
|
|
$ |
2,102 |
|
|
$ |
42,072 |
|
|
|
|
|
|
|
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| Changes in Fair Value of Pension Plan's Real Estate Equity Fund |
The following
table summarizes the changes in fair value of the pension
plan’s real estate equity fund (Level 3) for fiscal year
ended August 31, 2012.
|
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|
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| |
|
Real Estate |
|
| |
|
Equity Fund |
|
| |
|
(in thousands) |
|
|
Balance, August 31,
2011
|
|
$ |
677 |
|
|
Actual return on plan
assets:
|
|
|
|
|
|
Relating to assets still
held at the reporting date
|
|
|
75 |
|
|
Relating to assets sold
during the period
|
|
|
— |
|
|
Purchases and
sales
|
|
|
1,350 |
|
|
Transfers in (out) of Level
3
|
|
|
— |
|
|
|
|
|
|
|
Balance, August 31,
2012
|
|
$ |
2,102 |
|
|
|
|
|
|
|
| Expected Benefit Payments |
Expected
benefit payments are based on the same assumptions used to measure
the benefit obligations and include benefits attributable to
estimate future employee service.
|
|
|
|
|
|
|
|
|
| |
|
Pension |
|
|
Other
Postretirement |
|
| |
|
(Dollars in
millions) |
|
|
2013
|
|
$ |
2.3 |
|
|
$ |
0.9 |
|
|
2014
|
|
|
2.4 |
|
|
|
1.0 |
|
|
2015
|
|
|
2.5 |
|
|
|
1.0 |
|
|
2016
|
|
|
2.6 |
|
|
|
1.1 |
|
|
2017
|
|
|
2.8 |
|
|
|
1.2 |
|
|
2018-2022
|
|
$ |
17.3 |
|
|
$ |
7.8 |
|
|