Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We use a December 31 measurement date for our retirement plans. Retirement plans expense is based on valuations as of the beginning of each fiscal year. Journal Media Group Defined Benefit Plans: Effective April 1, 2015, the Company established the JMG SERP, which is a mirror plan of the former Scripps and Journal SERP. The JMG SERP is an unfunded non-qualified pension plan providing retirement benefits to certain executive employees. We also provide certain health care and life insurance benefits for retired employees of the Company through the Company sponsored JMG OPEB, a mirror plan of the former Scripps and Journal OPEB. It is the Company's policy to fund postretirement benefits as claims are incurred. The components of the defined pension and benefit plan expense for the JMG SERP and JMG OPEB plans consist of the following: Year Ended December 31, 2015 JMG SERP JMG OPEB Total Service cost $ — $ 9 $ 9 Interest cost 350 269 619 Expected return on plan assets, net of expenses — — Amortization of actuarial (gain)/loss (54 ) (54 ) Total for JMG SERP and JMG OPEB plans 296 278 574 Allocated portion of Scripps sponsored defined benefit plans 1,322 Defined pension and benefit plan expense $ 296 $ 278 $ 1,896 For the JMG SERP and JMG OPEB retirement plans sponsored by the Company other changes in plan assets and benefit obligations recognized in other comprehensive loss were as follows: Year Ended December 31, 2015 JMG SERP JMG OPEB Total Current year actuarial (gain)/loss $ (372 ) $ (719 ) $ (1,091 ) Prior service credit arising during 2015 — (370 ) (370 ) Amortization of actuarial gain 54 — 54 Total $ (318 ) $ (1,089 ) $ (1,407 ) Assumptions used in determining the annual JMG SERP and JMG OPEB retirement plans expense for the year ended December 31, 2015 were as follows: JMG SERP JMG OPEB Discount rate 4.20% 3.25% - 3.60% Long-term rate of return on plan assets N/A N/A Increase in compensation levels N/A N/A Obligations and Funded Status — The defined benefit pension plan obligations and funded status are actuarially valued as of the end of each year. The following table presents information for the plans sponsored by the Company of employee benefit plan assets and obligations: For the year ended December 31, 2015 JMG SERP JMG OPEB Total Accumulated benefit obligation $ 4,737 $ 8,208 $ 12,945 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 3,883 $ 2,274 $ 6,157 Acquisition of JRN Newspapers 1,829 8,769 10,598 Transfer to Scripps $ — $ (1,071 ) $ (1,071 ) Service cost — 9 9 Interest cost 350 269 619 Benefits paid (953 ) (953 ) (1,906 ) Actuarial gain and prior service cost (372 ) (1,089 ) (1,461 ) Projected benefit obligation at end of year 4,737 8,208 12,945 Plan assets: Fair value at beginning of year $ — $ — $ — Actual return on plan assets — — — — Company contributions 953 953 1,906 Benefits paid (953 ) (953 ) (1,906 ) Fair value at end of year — — — Funded status $ (4,737 ) $ (8,208 ) $ (12,945 ) Amounts recognized in Consolidated Balance Sheet: Current liabilities $ 366 $ 974 $ 1,340 Noncurrent liabilities 4,371 7,234 11,605 Total $ 4,737 $ 8,208 $ 12,945 Amounts recognized in accumulated other comprehensive loss consist of: Unrecognized net actuarial loss/(gain) $ 1,947 $ (2,257 ) $ (310 ) The methodology for selecting the year-end 2015 weighted-average discount rate for the company’s postretirement plans was to match the plans’ yearly projected cash flows for benefits and service costs to those of hypothetical bond portfolios using bonds with an AA average rating in the Aon Hewitt universe as of the measurement date. The Company uses the calendar year end as the measurement date for its plans. For 2016, the actuarial calculations assume a pre-65 health care cost trend rate of 8.5% and a post-65 health care cost trend rate of 8.7% , both decreasing gradually to 5.00% in 2024 and thereafter. As of 2015 year end, a one-percentage-point increase in the health care cost trend rate for future years would increase the accumulated postretirement benefit obligation by approximately $44 . Conversely, a one-percentage-point decrease in the health care cost trend rate for future years would decrease the accumulated postretirement benefit obligation by $43 . As of 2015 year end, a one-percentage-point increase in the JMG OPEB discount rate would decrease the projected benefit obligation by approximately $487 . A one-percentage-point decrease in the JMG OPEB discount rate for future years would increase the projected benefit obligation by $546 . As of 2015 year end, a one-percentage-point increase in the JMG SERP discount rate would decrease the projected benefit obligation by approximately $390 . A one-percentage-point decrease in the JMG SERP discount rate for future years would increase the projected benefit obligation by $458 . The following benefit payments, which reflect expected future service, are expected to be paid as follows: Year JMG SERP JMG OPEB 2016 $ 366 $ 974 2017 359 911 2018 346 909 2019 357 879 2020 371 825 2021-2025 1,791 2,960 Scripps defined benefit pension plans and defined contribution plan: Prior to April 1, 2015, certain of the Company's employees participated in the Scripps defined benefit pension plans, its non-qualified SERP and its defined contribution plan. Scripps sponsored various noncontributory defined benefit pension plans covering substantially all full-time Scripps employees that began employment prior to June 30, 2008. Benefits earned by employees were generally based upon employee compensation and years of service credits. Effective June 30, 2009, Scripps froze the accrual of benefits under its defined benefit pension plans and its SERP that cover the majority of its employees. As of April 1, 2015, the defined tax qualified benefit pension plans became an obligation of Scripps as part of the transactions and we retained non-tax qualified SERP and OPEB liabilities of newspaper employees. Prior to April 1, 2015, the Company accounted for its participation in the Scripps pension plans as a participant in a multi-employer plan. Expense was determined on a participant basis and included in the combined financial statements of the Company. As a participant in a multi-employer plan, no assets or liabilities were included in the Combined Balance Sheets of the Company other than contributions currently due and unpaid to the plans. In the second quarter of 2014, unions ratified our plan to withdraw from the Graphics Communication International Union (GCIU) Employer Retirement Fund. Upon ratification of the agreement, we estimated the undiscounted liability to be approximately $6,500 and in the second quarter of 2014 recorded a liability of $4,100 for the present value withdrawal liability. Pursuant to the master transaction agreement, the withdrawal liability will be paid by Scripps and has been recorded in the statement of equity as a contribution from Parent in 2015. We continue to participate in one multi-employer plan known as the CWA/ITU Negotiated Pension Plan as discussed below. Prior to April 1, 2015, the Company had accounted for its participation in the Scripps SERP as a separate stand-alone plan. Under this method, the Company has accounted for the allocation of the benefit obligations specifically related to its employees and its estimated portion of the plan assets, if any. The total SERP pension expense was allocated to the Company based on the Company's share of the service cost and benefit obligations, in addition to the expected return on its portion of the SERP assets. Effective April 1, 2015, the Company established a mirror plan and has recorded the liability and expenses for current and former newspaper employees in the consolidated and combined financial statements. Prior to April 1, 2015, Scripps also sponsored a defined contribution plan covering substantially all non-union and certain union employees. Scripps matched a portion of employees' voluntary contributions to this plan. In connection with freezing the accrual of service credits under certain of our defined benefit pension plans, Scripps began contributing additional amounts to certain employees' defined contribution retirement accounts in 2011. These transition credits were determined based upon the employee’s age, compensation and years of service. The Company allocated the expense for this plan on an individual participant basis and it is included in the consolidated and combined financial statements of the Company. Effective April 1, 2015, the Company established a mirror plan and has recorded the liability and expenses for current and former newspaper employees. Expense related to the defined contribution plan was $2,683 , $4,410 and $4,536 for the years ended December 31, 2015 , 2014 and 2013 , respectively. The components of Scripp's defined pension and benefit plan expense consists of the following: For the years ended December 31, 2014 2013 Service cost $ 85 $ 79 Interest cost 1,956 1,915 Expected return on plan assets, net of expenses (1,837 ) (1,730 ) Amortization of actuarial (gain)/loss 230 380 Total for defined benefit plans sponsored by the Company 434 644 Allocated portion of Scripps sponsored defined benefit plans 2,001 2,991 Allocated portion of Scripps SERP 238 639 Net periodic benefit cost 2,673 4,274 Withdrawal for GCIU multi-employer plan 4,100 — Defined pension and benefit plan expense $ 6,773 $ 4,274 For the plans sponsored by Scripps, other changes in plan assets and benefit obligations recognized in other comprehensive loss were as follows: For the years ended December 31, 2014 2013 Current year actuarial (gain)/loss $ 13,443 $ (3,773 ) Amortization of actuarial loss (230 ) (380 ) Transfer to The E. W. Scripps Company (23,757 ) — Total $ (10,544 ) $ (4,153 ) Assumptions used in determining the Scripps annual retirement plans expense were as follows: 2014 2013 Discount rate 5.08 % 4.27 % Long-term rate of return on plan assets 5.25 % 4.65 % Increase in compensation levels N/A N/A The discount rate used to determine our future pension obligations is based on a dedicated bond portfolio approach that includes securities rated Aa or better with maturities matching our expected benefit payments from the plans. The expected long-term rate of return on plan assets is based upon the weighted-average expected rate of return and capital market forecasts for each asset class employed. Our expected rate of return on plan assets also considers our historical compounded return on plan assets for 10 and 15 year periods. Obligations and Funded Status — The defined benefit pension plan obligations and funded status are actuarially valued as of the end of each year. The following table presents information for the plans sponsored by Scripps of employee benefit plan assets and obligations: Year Ended December 31, 2014 Accumulated benefit obligation $ — Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 40,861 Service cost 85 Interest cost 1,956 Benefits paid (2,291 ) Actuarial (gains)/losses 7,978 Transfer to The E. W. Scripps Company (48,589 ) Projected benefit obligation at end of year — Plan assets: Fair value at beginning of year 36,810 Actual return on plan assets (3,627 ) Company contributions 75 Benefits paid (2,291 ) Transfer to The E. W. Scripps Company (30,967 ) Fair value at end of year — Funded status $ — Amounts recognized in Combined Balance Sheets: Current liabilities $ — Noncurrent liabilities — Total $ — Amounts recognized in accumulated other comprehensive loss consist of: Unrecognized net actuarial loss $ — Multi-employer plans The Company had four multi-employer plans that were historically sponsored directly by the Company's Memphis and Knoxville newspapers. On September 30, 2014, the plan sponsored by the Knoxville newspaper was merged into the Scripps sponsored plans. On December 31, 2014, the plans sponsored by the Memphis newspaper were merged into the Scripps sponsored plan. Since the Memphis and Knoxville plans are no longer directly sponsored by the Company, no liabilities of the four plans are recorded on the Company's balance sheet as of December 31, 2015 or 2014 . Expense included in selling, general and administrative expense related to the multi-employer plans (which includes the CWA/ITU plan discussed below) was $47 , $246 and $269 for the years ended December 31, 2015 , 2014 and 2013 , respectively. We continue to participate in one multi-employer pension plan that covers certain employees that are members of unions that have a collective bargaining agreement with us. We represent fewer than 5% of the total contributions made to the plan. The following table summarizes the plan: Pension Protection Act Zone Status Contributions of the Company Pension Fund EIN/Pension Plan Number 2015 2014 FIP/RP Status 2015 2014 2013 Surcharge Imposed Expiration Dates of Collective Bargaining Agreements CWA/ITU 13-6212879 Red Red Implemented $ 47 $ 126 $ 116 NA 2015/2016 The CWA/ITU Negotiated Pension Plan has a withdrawal liability of approximately $4,800 . Contribution rates are scheduled to remain consistent with current rates for the foreseeable future. A rehabilitation plan was adopted in 2010 related to pension vesting and early retirement, however, mandatory increases in contributions or surcharges were not implemented. |