Windstream 2008 Annual Report Download - page 154

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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 (including executive
retirement agreements) were as follows at December 31:
Pension Benefits Postretirement Benefits
(Millions) 2008 2007 2008 2007
Fair value of plan assets at beginning of year $1,001.8 $ 937.8 $ - $ -
Transfers from qualified plans due to acquisition - 50.0 - -
Actual return on plan assets (290.4) 79.8 - -
Employer contributions (a) 0.7 6.6 13.4 13.2
Participant contributions - - 5.6 5.3
Benefits paid (a) (58.1) (72.4) (19.9) (19.3)
Medicare Part D reimbursement - - 0.9 0.8
Fair value of plan assets at end of year $ 654.0 $1,001.8 $ - $ -
Projected benefit obligation at beginning of year $ 904.9 $ 901.7 $ 218.3 $ 262.4
Transfers from qualified plans due to acquisition - 41.5 - 6.2
Interest cost on projected benefit obligations 56.2 53.7 12.7 15.1
Service costs 13.2 16.3 0.3 0.4
Participant contributions - - 5.6 5.3
Plan amendments 0.2 0.1 (52.1) 1.0
Plan curtailments - (0.1) - (0.1)
Actuarial (gain) loss 29.0 (35.9) (8.8) (53.5)
Benefits paid (58.1) (72.4) (19.9) (19.3)
Medicare Part D reimbursement - - 0.9 0.8
Projected benefit obligation at end of year $ 945.4 $ 904.9 $ 157.0 $ 218.3
Plan assets in excess of (less than) projected benefit
obligation
recognized in the consolidated balance sheet:
Noncurrent assets $ - $ 107.5 $ - $ -
Current liabilities (0.7) - (15.4) (16.6)
Noncurrent liabilities (290.7) (10.6) (141.6) (201.7)
Funded status recognized in the consolidated balance
sheets $ (291.4) $ 96.9 $(157.0) $(218.3)
Amounts recognized in accumulated other
comprehensive income (loss):
Transition obligation $ - $ - $ - $ (4.0)
Net actuarial loss (434.5) (45.7) (18.8) (28.7)
Prior service credits (costs) 1.3 1.6 38.1 (10.7)
Net amount recognized in accumulated other
comprehensive income (loss) $ (433.2) $ (44.1) $ 19.3 $ (43.4)
(a) Employer contributions and benefits paid in the above table include amounts contributed directly to or paid
directly from both the retirement plans and from Company assets.
The estimated net actuarial loss and prior service costs for the pension plan, including executive retirement
agreements, that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit
expense (income) in 2009 are $70.6 million and $(0.1) 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 expense (income) in 2009 is $0.3 million. Amortization of the prior service costs from
accumulated other comprehensive income (loss) into net periodic benefit cost for the postretirement benefit plan
will be $(3.3) million in 2009.
The total accumulated benefit obligation for the pension plan was $911.0 million, $868.6 million and $855.0
million at December 31, 2008, 2007 and 2006, respectively.
F-66