Windstream 2015 Annual Report Download - page 204

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-74
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) 2015 2014 2015 2014
Fair value of plan assets at beginning of year $ 1,042.0 $ 959.7 $ 0.3 $ 0.3
Actual return on plan assets (1.6) 144.6 — —
Employer contributions 0.9 89.9 2.5 3.8
Participant contributions — — 4.3 0.4
Benefits paid (a) (74.7)(65.6)(6.7)(4.2)
Settlements (b) —(86.6) — —
Fair value of plan assets at end of year $ 966.6 $ 1,042.0 $ 0.4 $ 0.3
Projected benefit obligation at beginning of year $ 1,331.8 $ 1,210.6 $ 30.6 $ 31.4
Interest cost on projected benefit obligations 53.2 58.9 1.3 1.3
Service costs 9.5 8.2 — —
Participant contributions — — 4.3 0.4
Plan amendments (1.4) — (0.4)(0.2)
Actuarial (gain) loss (62.9) 206.3 (0.1) 3.4
Benefits paid (a) (74.7)(65.6)(6.7)(4.2)
Settlements (b) —(86.6) — (1.5)
Projected benefit obligation at end of year $ 1,255.5 $ 1,331.8 $ 29.0 $ 30.6
Plan assets less than projected benefit obligation recognized
in the consolidated balance sheet:
Current liabilities $(1.9) $ (0.8) $ (2.1) $ (2.3)
Noncurrent liabilities (287.0)(289.0)(26.5)(28.0)
Funded status recognized in the consolidated balance sheets $(288.9) $ (289.8) $ (28.6) $ (30.3)
Amounts recognized in accumulated other comprehensive
income:
Net actuarial loss $ — $ — $ (4.7) $ (5.8)
Prior service credits 1.8 0.5 7.8 29.2
Net amount recognized in accumulated other comprehensive
income $ 1.8 $ 0.5 $ 3.1 $ 23.4
(a) During 2015 and 2014, pension benefits paid from Windstream’s assets totaled $0.9 million and $0.8 million, respectively.
All postretirement benefits in both years were paid from Windstream’s assets.
(b) In an effort to reduce our long-term pension obligations and administrative expenses of the Windstream Pension Plan,
during the fourth quarter of 2014, we offered to certain eligible participants of the plan the option to receive a single lump
sum payment in full settlement of all future pension benefits earned by the participant from prior service to Windstream.
Individuals eligible for the voluntary lump sum payment option were former employees and certain of their beneficiaries
with termination dates on or prior to June 7, 2014 who had not yet commenced their pension benefit payments. The
calculated amount of the single lump sum payment was the actuarial equivalent of the participant’s vested accrued pension
benefit as of December 2014. All lump-sum payments were made from existing plan assets.
Estimated amounts to be amortized from accumulated other comprehensive income into net periodic benefit (income) expense in
2016, including executive retirement agreements, are as follows:
(Millions)
Pension
Benefits
Postretirement
Benefits
Net actuarial loss $ — $ 0.5
Prior service credits $ (0.3) $ (1.7)