BB&T 2008 Annual Report Download - page 119

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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The weighted average expected long-term rate of return on plan assets represents the average rate of return
expected to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid.
In developing the expected rate of return, BB&T considers long-term compound annualized returns of historical
market data for each asset category, as well as historical actual returns on the Company’s plan assets. Using this
reference information, the Company develops forward-looking return expectations for each asset category and a
weighted average expected long-term rate of return for the plan based on target asset allocations contained in
BB&T’s Investment Policy Statement.
Financial data relative to the defined benefit pension plans is summarized in the following tables for the
years indicated. The qualified pension plan prepaid asset is recorded on the Consolidated Balance Sheets as a
component of other assets and the nonqualified pension plans accrued liability is recorded on the Consolidated
Balance Sheets as a component of other liabilities. The data is calculated using an actuarial measurement date of
December 31.
For the Years Ended
December 31,
2008 2007 2006
(Dollars in millions)
Net Periodic Pension Cost
Service cost $ 69 $ 74 $ 65
Interest cost 81 74 65
Estimated return on plan assets (139) (120) (92)
Net amortization and other (2) 4 12
Net periodic pension cost 9 32 50
Pre-Tax Amounts Recognized in Comprehensive Income
Net actuarial (gain) loss 590 (54) —
Amortization of prior service cost 4 4 —
Amortization of net (gain) loss (2) (8) —
Net (income) cost for minimum pension liability — — (4)
Net amount recognized in comprehensive income 592 (58) (4)
Total net periodic pension (income) costs recognized in
comprehensive income $ 601 $ (26) $ 46
The following are the significant actuarial assumptions that were used to determine benefit obligations:
December 31,
2008 2007
Actuarial Assumptions
Weighted average assumed discount rate 6.20% 6.60%
Assumed rate of annual compensation increases 4.50 4.50
119