Windstream 2009 Annual Report Download - page 171

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) 2009 2008 2009 2008
Fair value of plan assets at beginning of year $ 654.0 $ 1,001.8 $ - $ -
Transfers from qualified plans due to acquisition (a) 61.4 - - -
Actual return on plan assets 152.0 (290.4) - -
Employer contributions 3.3 0.7 13.0 13.4
Participant contributions - - 7.0 5.6
Benefits paid (b) (86.7) (58.1) (20.7) (19.9)
Medicare Part D reimbursement - - 0.7 0.9
Fair value of plan assets at end of year $ 784.0 $ 654.0 $ - $ -
Projected benefit obligation at beginning of year $ 945.4 $ 904.9 $ 157.0 $ 218.3
Transfers from qualified plans due to acquisition (a) 73.8 - 1.8 -
Interest cost on projected benefit obligations 57.8 56.2 8.4 12.7
Service costs 13.5 13.2 0.2 0.3
Participant contributions - - 7.0 5.6
Plan amendments (c) (d) - 0.2 (54.8) (52.1)
Actuarial (gain) loss 56.9 29.0 (11.0) (8.8)
Benefits paid (86.7) (58.1) (20.7) (19.9)
Medicare Part D reimbursement - - 0.7 0.9
Projected benefit obligation at end of year $ 1,060.7 $ 945.4 $ 88.6 $ 157.0
Plan assets in excess of (less than) projected benefit
obligation recognized in the consolidated balance sheet:
Current liabilities $ (0.7) $ (0.7) $ (10.0) $ (15.4)
Noncurrent liabilities (276.0) (290.7) (78.6) (141.6)
Funded status recognized in the consolidated balance
sheets $ (276.7) $ (291.4) $ (88.6) $ (157.0)
Amounts recognized in accumulated other comprehensive
income (loss):
Net actuarial loss $ (318.9) $ (434.5) $ (7.8) $ (18.8)
Prior service credits 1.1 1.3 89.6 38.1
Net amount recognized in accumulated other
comprehensive income (loss) $ (317.8) $ (433.2) $ 81.8 $ 19.3
(a) In conjunction with the acquisition of D&E on November 10, 2009, the Company assumed certain
obligations related to a non-contributory qualified pension plan and postretirement benefit plan formerly
sponsored by D&E. As a result Windstream recognized additional net pension and postretirement benefit
obligations of $12.4 million and approximately $1.8 million, respectively, as of November 10, 2009, which
are included in other liabilities in the accompanying consolidated balance sheet. The D&E plans were
merged into the Windstream pension and postretirement employee benefit plans effective December 31,
2009.
(b) During 2009 and 2008, pension benefits paid from Company assets totaled $0.7 million. All postretirement
benefits in both years were paid from Company assets.
(c) During 2009, Windstream amended certain of its postretirement medical and life insurance plans to replace
post-65 Medicare supplement plans with a portfolio of individual post-65 products including various
Medigap, Part D Prescription Drug Plan and a Medicare Advantage plan effective July 1, 2010. In addition,
these amendments capped the maximum amount of medical subsidy provided by Windstream to retirees and
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