Windstream 2013 Annual Report Download - page 206

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-70
8. Employee Benefit Plans and Postretirement Benefits, Continued:
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, 2013:
(Millions) Pension
Benefits Postretirement Benefits
Expected employer contributions in 2014 $ 83.8 $ 2.6
Expected benefit payments:
2014 $ 78.1 $ 2.6
2015 77.4 2.6
2016 78.3 2.5
2017 80.9 2.4
2018 81.7 2.3
2019-2023 421.6 8.9
The 2014 expected employer contribution for pension benefits consists of 0.8 million necessary to fund the expected benefit
payments related to the unfunded supplemental executive retirement pension plans and approximately $83.0 million in
contributions to the pension plan to meet our remaining 2014 funding obligations and to avoid certain benefit restrictions. We
intend to fund this contribution using cash, Windstream common stock or other assets, or a combination thereof.
Employee Savings Plan – We also sponsor an employee savings plan under section 401(k) of the Internal Revenue Code, which
covers substantially all salaried employees and certain bargaining unit employees. Employees may elect to contribute to the
plan a portion of their eligible pretax compensation up to certain limits as specified by the plans and by the Internal Revenue
Service. Windstream matches up to a maximum of 4.0 percent of employee pretax contributions for employees contributing at
least 5.0 percent. Our matching contribution is funded annually. We expect to make the 2013 contribution in Windstream stock
during the first half of 2014. We contributed $20.4 million of our common stock to the plan for the 2012 annual matching
contribution during the first quarter of 2013. We recorded expense of $18.1 million, $17.8 million and $13.7 million in 2013,
2012 and 2011, respectively, related to the employee savings plan, which was included in cost of services and selling, general
and administrative in the accompanying consolidated statements of income. Expense related to our matching contribution made
or expected to be made in Windstream stock is included in share-based compensation in the accompanying consolidated
statements of cash flows.
9. Share-Based Compensation Plans:
Under the Amended and Restated 2006 Equity Incentive Plan (the "Incentive Plan"), we may issue a maximum of 20.0 million
equity stock awards in the form of restricted stock, restricted stock units, stock appreciation rights or stock options. Restricted
stock, restricted stock units and stock appreciation rights were limited to 18.5 million of the total awards issuable under the
Incentive Plan. As of December 31, 2013, the Incentive Plan had remaining capacity of 4.8 million awards, of which 3.3
million were issuable in the form of restricted stock, restricted stock units or stock appreciation rights. As of December 31,
2013, we had additional remaining capacity of 2.6 million awards from a similar equity incentive plan acquired in the PAETEC
acquisition.