Windstream 2010 Annual Report Download - page 159

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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) 2010 2009 2010 2009
Fair value of plan assets at beginning of year $ 784.0 $ 654.0 $ - $ -
Transfers from qualified plans due to acquisition (a) 12.0 61.4 0.2 -
Actual return on plan assets 95.9 152.0 - -
Employer contributions 41.7 3.3 8.6 13.0
Participant contributions - - 5.0 7.0
Benefits paid (b) (63.4) (86.7) (14.4) (20.7)
Medicare Part D reimbursement - - 0.9 0.7
Fair value of plan assets at end of year $ 870.2 $ 784.0 $ 0.3 $ -
Projected benefit obligation at beginning of year $ 1,060.7 $ 945.4 $ 88.6 $ 157.0
Transfers from qualified plans due to acquisition (a) 16.2 73.8 2.6 1.8
Interest cost on projected benefit obligations 60.6 57.8 5.2 8.4
Service costs 15.8 13.5 0.2 0.2
Participant contributions - - 5.0 7.0
Plan amendments (c) - - - (54.8)
Actuarial (gain) loss 74.1 56.9 11.9 (11.0)
Benefits paid (63.4) (86.7) (14.4) (20.7)
Medicare Part D reimbursement - - 0.9 0.7
Projected benefit obligation at end of year $ 1,164.0 $ 1,060.7 $ 100.0 $ 88.6
Plan assets less than projected benefit obligation recognized
in the consolidated balance sheet:
Current liabilities $ (0.8) $ (0.7) $ (8.0) $ (10.0)
Noncurrent liabilities (293.0) (276.0) (91.7) (78.6)
Funded status recognized in the consolidated balance sheets $ (293.8) $ (276.7) $ (99.7) $ (88.6)
Amounts recognized in accumulated other comprehensive
income (loss):
Net actuarial loss $ (312.7) $ (318.9) $ (20.9) $ (7.8)
Prior service credits 1.0 1.1 82.8 89.6
Net amount recognized in accumulated other comprehensive
income (loss) $ (311.7) $ (317.8) $ 61.9 $ 81.8
(a) In conjunction with the acquisition of Iowa Telecom on June 1, 2010, the Company assumed certain
obligations related to a non-contributory qualified pension plan and postretirement benefit plan formerly
sponsored by Iowa Telecom. As a result, Windstream recognized additional net pension and postretirement
benefit obligations of $4.2 million and approximately $2.4 million, respectively, which are included in other
liabilities in the accompanying consolidated balance sheet. The Iowa Telecom plans were merged into the
Windstream pension and postretirement employee benefit plans effective December 31, 2010. 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 both periods of 2010 and 2009, pension benefits paid from Company assets totaled $0.7 million
respectively. All postretirement benefits in both years were paid from Company assets.
F-59