Windstream 2012 Annual Report Download - page 164

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-66
8. Employee Benefit Plans and Postretirement Benefits, Continued:
The following is a reconciliation of the beginning and ending balances of pension plan assets that are measured at fair value
using significant unobservable inputs:
(Millions)
Domestic
equities
Real estate and
private equity
funds
Guaranteed
annuity
contract Total
Balance at December 31, 2010 $ 0.2 $ — $ 3.3 $ 3.5
Actual (loss) gain on plan assets still held at reporting
date (0.1) 2.4 0.2 2.5
Purchases and sales — 31.0 (0.7) 30.3
Transfers in and/or out of level 3 — — — —
Balance at December 31, 2011 0.1 33.4 2.8 36.3
Actual gain on plan assets still held at reporting date — 2.7 0.1 2.8
Purchases and sales — 5.0 (0.6) 4.4
Transfers in and/or out of level 3 — — — —
Balance at December 31, 2012 $ 0.1 $ 41.1 $ 2.3 $ 43.5
There have been no significant changes in the methodology used to value investments from prior year. The valuation methods
used may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values.
Furthermore, although the valuation methods are consistent with other market participants, the use of different methodologies
or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at
the reporting date.
Estimated Future Employer Contributions and Benefit Payments – Estimated future employer contributions, benefit payments,
including executive retirement agreements, are as follows as of December 31, 2012:
(Millions)
Pension
Benefits
Postretirement
Benefits
Expected employer contributions in 2013 $ 20.7 $ 3.1
Expected benefit payments:
2013 $ 75.1 $ 3.1
2014 77.6 2.9
2015 78.6 2.9
2016 79.8 2.9
2017 83.1 2.8
2018-2022 430.2 10.9
The 2013 expected employer contribution for pension benefits consists of $0.7 million necessary to fund the expected benefit
payments related to the unfunded supplemental executive retirement pension plans and approximately $20.0 million in
contributions to avoid certain benefit restrictions. During 2011, we contributed 10.8 million shares of our common stock to our
pension plan to meet our remaining 2011 and expected 2012 obligation. These shares had an appraised value, as determined by
a third-party valuation firm, of approximately $135.8 million. The pension trust subsequently sold all 10.8 million shares for
approximately $133.5 million.
Effective January 1, 2011, changes to our Retiree Medical Plan allowed retirees to elect their prescription plan through the
UnitedHealthCare Medicare Connector. This change will result in savings for us. However, we are no longer eligible for the
Medicare Part D subsidy.