Windstream 2006 Annual Report Download - page 155

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. Employee Benefit Plans and Postretirement Benefits, Continued:
A summary of plan assets, projected benefit obligation and funded status of the plans not accounted for under APB
No. 12 were as follows at December 31:
Pension Benefits Postretirement Benefits
(Millions) 2006 (a) 2006 2005
Fair value of plan assets at beginning of year $ - $ - $ -
Transfers from qualified plans due to acquisition and spin-off 886.8 - -
Actual return on plan assets 85.3 - -
Settlements (8.4) - -
Employer contributions 0.7 8.8 8.2
Participant contributions - 2.4 -
Benefits paid (26.6) (11.2) (8.2)
Fair value of plan assets at end of year 937.8 - -
Projected benefit obligation at beginning of year - 171.7 164.5
Transfers from qualified plans due to acquisition and spin-off 869.0 67.5 -
Interest cost on projected benefit obligation 26.9 7.3 9.6
Service costs 8.2 0.2 -
Participant contributions - 2.4 -
Plan amendments (2.4) - -
Plan curtailments (5.0) 0.5 -
Settlements (8.4) - -
Actuarial gain 40.0 24.0 5.8
Benefits paid (26.6) (11.2) (8.2)
Projected benefit obligation at end of year 901.7 262.4 171.7
Plan assets in excess of (less than) projected benefit obligation 36.1 (262.4) (171.7)
Unrecognized actuarial loss - - 69.7
Unrecognized prior service cost - - 13.0
Unrecognized net transition obligation - - -
Net amount recognized $ 36.1 $(262.4) $ (89.0)
Amounts recognized in the consolidated balance sheets:
Prepaid benefit cost $ 47.1 $ - $ -
Accrued benefit cost liability (11.0) (262.4) (89.0)
Net amount recognized $36.1 $(262.4) $ (89.0)
Amounts recognized in accumulated other comprehensive income
(loss):
Transition obligation $ - $ 4.8 $ -
Net actuarial loss (gain) 105.8 88.4 -
Prior service costs (credit) (1.9) 11.6 -
Net amount recognized in accumulated other comprehensive income
(loss) $103.9 $ 104.8 $ -
(a) Reflects results following the inception of Windstream plans pursuant to the spin-off from Alltel (other than
transfers from Alltel)
Employer contributions and benefits paid in the above table included amounts contributed directly to or paid
directly from both the retirement plans and from Company assets.
The estimated net actuarial loss and prior service cost for the defined benefit plans that will be amortized from
accumulated other comprehensive income (loss) into net periodic benefit cost in 2007 are $22.1 million and $(0.2)
million, respectively. The estimated net actuarial loss for the postretirement benefit plan that will be amortized from
accumulated other comprehensive income (loss) into net periodic benefit cost in 2007 is $6.3 million. Amortization of
the prior service cost and transition obligation from accumulated other comprehensive income (loss) into net periodic
benefit cost for the postretirement benefit plan are both $1.8 million and $0.8 million, respectively, in 2007.
F-54