Windstream 2015 Annual Report Download - page 203

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-73
8. Employee Benefit Plans and Postretirement Benefits:
We maintain a non-contributory qualified defined benefit pension plan. Future benefit accruals for all eligible nonbargaining
employees covered by the pension plan have ceased. We also maintain supplemental executive retirement plans that provide
unfunded, non-qualified supplemental retirement benefits to a select group of management employees. Additionally, we provide
postretirement healthcare and life insurance benefits for eligible employees. Employees share in, and we fund, the costs of these
plans as benefits are paid.
The components of pension benefit (income) expense (including provision for executive retirement agreements) and postretirement
benefits income were as follows for the years ended December 31:
Pension Benefits Postretirement Benefits
(Millions) 2015 2014 2013 2015 2014 2013
Benefits earned during the year $ 9.5 $ 8.2 $ 10.5 $ — $ — $ —
Interest cost on benefit obligation 53.2 58.9 52.5 1.3 1.3 1.4
Net actuarial loss (gain) 8.7 128.6 (110.4) — — —
Amortization of net actuarial loss — — — 1.0 0.1 1.7
Amortization of prior service credit (0.1) (0.1)(0.1)(3.8)(5.8)(8.6)
Plan curtailments and settlements ———(18.0)(11.5)(32.2)
Expected return on plan assets (70.1) (67.3)(67.8) — — —
Net periodic benefit expense (income) $ 1.2 $ 128.3 $ (115.3) $ (19.5) $ (15.9) $ (37.7)
During 2015, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily
for certain active participants effective on June 8, 2015, October 1, 2015, and November 1, 2015. As a result, we remeasured the
plan and recognized curtailment gains totaling $18.0 million, of which $14.3 million was recognized in cost of services expenses
and $3.7 million was recognized in selling, general and administrative expenses, with the offsetting effects recorded as a reduction
in accumulated other comprehensive income of $18.0 million.
During 2014, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily
for certain active participants effective on April 1, 2014, April 3, 2014, May 1, 2014, and May 31, 2014. We also eliminated the
subsidies for certain active and current retirees effective January 1, 2015. As a result, we remeasured the plan and recognized
curtailment and settlement gains totaling $11.5 million, of which $7.1 million was recognized in cost of services expenses and
$4.4 million was recognized in selling, general and administrative expenses, with the offsetting effects recorded as a reduction in
accumulated other comprehensive income of $10.0 million and other liabilities of $1.5 million.
During 2013, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily
for certain active participants effective August 1, 2013, October 1, 2013 or January 1, 2014. As a result, we remeasured the plan
and recognized curtailment gains totaling $32.2 million, of which $24.1 million was recognized in cost of services expenses and
$8.1 million was recognized in selling, general and administrative expenses, with offsetting effects recorded as reductions in
accumulated other comprehensive income of $31.8 million and other liabilities of $0.4 million.
We recognize actuarial gains and losses for pension benefits as a component of net periodic benefit expense (income) in the year
in which the gains and losses occur. In determining our annual postretirement benefits cost, we amortize unrecognized actuarial
gains and losses exceeding 10.0 percent of the projected benefit obligation over the lesser of 10 years or the average remaining
service life of active employees. We do not amortize unrecognized actuarial gains and losses below the 10.0 percent corridor.