Pension and Other Retirement Plans | Note 9 : Pension and Other Retirement Plans Defined Benefit Plans. The Company sponsors the A. H. Belo Pension Plans, which provide d benefits to approximately 2,300 current and former employees of the Company. A. H. Belo Pension Plan I provides benefits to certain employees primarily employed with The Dallas Morning News or the A. H. Belo corporate offices. A. H. Belo Pension Plan II provides benefits to certain employees of The Providence Journal Company . T h is obligation was retained by the Company upon the sale transaction of the newspaper operations of The Providence Journal . No additional benefits are accruing under the A. H. Belo Pension Plans, as future benefits were frozen prior to the plans’ effective date. The Company was not required to make contributions to its pension plans in 2015. Required and voluntary contributions of $9,927 and $20,000 , respectively, were made in 2014 , to the A. H. Belo Pension Plans, directly reducing the unfunded projected pension obligation of these plans . Actuarial gains (losses) of $2,540 , $(49,243) , and $57,171 were recorded to other comprehensive income in 2015 , 2014 and 2013 , respectively; see Note 10 – Accumulated Other Comprehensive Loss for information on amounts recorded to accumulate other comprehensive income. The Company-sponsored plans implemented a de-risking strategy whereby voluntary and mandatory lump sum payments to participants may be made to decrease future benefit obligations. As part of this strategy, payments of $100,877 were made in 2015 to approximately 1,000 participants and $52,919 of payments were made in 2014 to approximately 700 participants. The lump-sum payments re sulted in a favorable settlement of the projected benefit obligations of approximately $5,000 and $1 5 , 0 00 in 2015 and 2014, respectively . A charge to pension expense for $14,964 and $7,648 in 2015 and 2014, respectively, was recorded to reflect the amortization of losses in accumulated other comprehensive loss associated with these settlements. The obligations were funded through the plans’ master trust account and are a component of benefit payments as shown in the table below. The Company will continue to evaluate the feasibility of additional de-risking strategies based on the economic benefits to the Company. The table below sets forth summarized financial information about the A. H. Belo Pension Plans . . 2015 2014 Change in projected benefit obligation Projected benefit obligation at beginning of year $ 396,656 $ 388,698 Interest cost 14,161 17,320 Actuarial (gain) loss (27,307) 63,898 Benefit payments (121,483) (73,260) Projected benefit obligation at end of year 262,027 396,656 Change in plan assets Fair value of plan assets at beginning of year 330,797 338,616 Return on plan assets (4,733) 35,514 Employer contributions — 29,927 Benefit payments (121,483) (73,260) Fair value of plan assets at end of year 204,581 330,797 Funded status $ (57,446) $ (65,859) Amounts recorded on the balance sheet Noncurrent liability - Accrued benefit cost $ 57,446 $ 65,859 Accumulated benefit obligation $ 262,027 $ 396,656 Net Periodic Pension Expense The projected benefit obligations of the A. H. Belo Pension Plans are estimated using the Citigroup Pension Yield Curve, which is based upon a portfolio of high quality corporate debt securities with maturities that correlate to the timing of benefit payments to the plans’ participants. Future benefit payments are discounted to their present value at the appropriate yield curve rate to determine the projected benefit obligation outstanding at each year end. Yield curve discount rates as of December 31, 2015 , and 2014 , were 4.0 percent and 4.0 percent, respectively. Interest expense included in net periodic pension expense is based on the Citigroup Pension Yield Curve established at the beginning of the fiscal year. Interest expense for 2015 , 2014 and 2013 was determined using beginning of year yield curve rates of 4.0 percent, 4.0 percent and 4.2 percent, respectively. The Company assumed a 6.5% percent long-term return on the plans’ assets in 2015 , 2014 and 2013 . This return is based upon historical returns of similar investment pools having asset allocations consistent with the expected allocations of the A. H. Belo Pension Plans. Investment strategies for the plans’ assets are based upon factors such as the remaining useful life expectancy of participants and market risks. The table below sets forth components of net periodic pension expense for 2015 , 2014 and 2013 . 2015 2014 2013 Interest cost $ 14,161 $ 17,320 $ 15,995 Expected return on plans' assets (20,033) (20,859) (19,563) Amortization of actuarial loss 1,252 — 1,702 Recognized settlement loss 14,964 7,648 — Net periodic pension expense (benefit) $ 10,344 $ 4,109 $ (1,866) Plan Assets The Company is responsible for directing the investment strategies of the A. H. Belo Pension Plans’ assets. The investment strategies fo cus on asset class diversification, liquidity to meet benefit payments and an appropriate balance of long-term investment return and risks. The long-term targeted allocation of the plans’ assets invested in equity securities and fixed-income securities is 50.0 percent and 50.0 percent, respectively . These targets are determined by matching the actuarial projections of the plans’ future liabilities and benefit payments with the expected long-term rates of return on assets and expected market risks. Investment risk is continuously monitored and plan assets are rebalanced to target allocations to meet the Company’s strategy and the plans’ liquidity needs. At December 31, 2015 , the plans’ investments in equity securities and fixed income securities accounted for 45.4 percent and 54.6 percent of the total non-cash holdings, respectively. The table below sets forth the A. H. Belo Pension Plans’ assets at fair value as of December 31, 201 5 and 201 4 , with inputs used to develop fair value measurements Fair Value Measurements Using Total Quoted Price in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) Description 2015 2014 2015 2014 2015 2014 2015 2014 Cash and money market funds $ 4,178 $ 6,485 $ 4,178 $ 6,485 $ — $ — $ — $ — Equity Funds U.S. Equity Securities 62,314 115,253 — — 62,314 115,253 — — International Equity Securities 28,669 43,675 4,334 8,071 24,335 35,604 — — Fixed Income Funds Domestic Corporate and Government Debt Securities 54,427 77,488 — — 54,427 77,488 — — Domestic Corporate Debt Securities 49,074 80,906 — — 49,074 80,906 — — International Corporate and Government Debt Securities 5,919 6,990 — — 5,919 6,990 — — Total $ 204,581 $ 330,797 $ 8,512 $ 14,556 $ 196,069 $ 316,241 $ — $ — Inputs and valuation techniques used to measure the fair value of plan assets vary according to the type of asset being valued. Cash and money market funds, as well as exchange traded funds, are designated as Level I. Remaining equity securities and fixed income securities represent units of commingled pooled funds and fair values are based on net asset value (“NAV”) of the units of the fund determined by the fund manager. Commingled pooled funds are similar in nature to retail mutual funds, but are typically more efficient for institutional investors than retail mutual funds. As commingled pooled funds are typically only accessible by institutional investors, the NAV is not readily observable by non-institutional investors. Equity securities held through units in these funds are monitored as to issuer and industry. As of December 31, 2015 , there were no significant concentrations of equity or debt securities in any single issuer or industry. Other The table below sets forth the Company’s expected future benefit payments as of December 31, 2015 . Payment year Expected Benefit Payments 2016 $ 15,486 2017 15,622 2018 15,799 2019 15,897 2020 15,890 2021 - 2025 79,666 The Company expects to make no required contributions to the A. H. Belo Pension Plans in 201 6 . Other defined benefit plans – A. H. Belo also sponsors post-retirement benefit plans which provide health and life insurance benefits for certain retired employees. These plans were frozen subsequent to the separation from the former parent company and no future benefits accrue. The Company recorded a liability of $1,429 and $1,651 related to these plans as of December 31, 2015 and 2014 , respectively. A net periodic benefit of $ 13 , $6 30 and $ 631 in 2015 , 2014 and 2013 , respectively, was recorded to employee compensation and benefits. The net benefit primarily represents amortization of actuarial gains (losses) and prior service costs, offset by interest expense associated with the actuarial liability . Actuarial gains of $202 , $15 and $287 were recorded to other comprehensive loss in 2015 , 2014 and 2013 , respectively. See Note 10 – Accumulated Other Comprehensive Loss. Defined Contribution Plans. The A. H. Belo Savings Plan, a defined contribution 401(k) plan, covers substantially all employees of A. H. Belo. Participants may elect to contribute a portion of their pretax compensation, as provided by the plan and the Internal Revenue Code. Employees can contribute up to 100 percent of thei r annual eligible compensation less requi red withholdings and deductions up to statutory limits. The Company provides an ongoing dollar-for-dollar match of eligible employee contributions, up to 1.5 percent of the employees’ compensat ion on a per-pay-period basis. The Company recorded expense of $1,013 , $987 , and $973 in 2015 , 2014 and 2013 , respectively, for matching contributions to the plan. The A. H. Belo Pension Transition Supplement Plan (“PTS Plan”), a defined contribution plan, covered certain employees affected by the curtailment of a defined benefit plan sponsored by the former parent company. The Company was obligated to make contributions to this plan based on the earnings of actively employed participants for a period of five years, which concluded on March 31, 2013. E xpense and contributions for the PTS Plan of $598 and $2,826 were recorded in 2014 , respectively . As a result of fulfilling its obligations to the PTS Plan and in order to achieve efficient administration of the Company's define d contribution plans, the PTS Plan was merged into the A. H. Belo Savings Plan on July 1, 2013. Accordingly, individual participant account balances within the PTS Plan were transferred to their respective accounts of the A. H. Belo Savings Plan and the PTS Plan has ceased to exist as a stand - alone benefit plan of the Company. |