Cincinnati Bell 2005 Annual Report Download - page 129

Download and view the complete annual report

Please find page 129 of the 2005 Cincinnati Bell annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 172

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172

Components of Net Periodic Cost
The following information relates to all Company noncontributory defined benefit pension plans,
postretirement health care, and life insurance benefit plans. Pension and postretirement benefit costs for these
plans were comprised of:
Pension Benefits
Postretirement and
Other Benefits
(dollars in millions) 2005 2004 2003 2005 2004 2003
Service cost ........................................ $ 8.0 $ 8.1 $ 9.6 $ 4.3 $ 2.1 $ 1.7
Interest cost on projected benefit obligation ............... 27.2 27.3 28.8 20.5 16.3 15.7
Expected return on plan assets ......................... (38.2) (41.4) (39.2) (5.6) (6.3) (6.6)
Curtailment loss .................................... — — 2.7———
Special termination benefit ............................ — 10.5 ————
Amortization of:
Transition (asset)/obligation ......................... (1.1) (1.8) (2.5) 4.2 4.2 4.2
Prior service cost .................................. 3.3 3.1 3.2 10.3 3.8 1.4
Net (gain) loss .................................... 2.2 (0.9) (0.1) 2.2 1.4 1.5
Actuarial expense ................................... $ 1.4 $ 4.9 $ 2.5 $35.9 $21.5 $17.9
Funded Status
Reconciliation of the beginning and ending balances of the plans’ funded status follows:
Pension Benefits
Postretirement and
Other Benefits
(dollars in millions) 2005 2004 2005 2004
Change in benefit obligation:
Benefit obligation at January 1, ................................ $504.5 $466.5 $ 416.4 $ 290.5
Service cost .............................................. 8.0 8.1 4.3 2.1
Interest cost .............................................. 27.2 27.3 20.5 16.3
Amendments ............................................. 3.1 — (70.8) 122.5
Actuarial loss ............................................ 7.7 36.7 10.9 9.3
Benefits paid ............................................. (50.4) (44.6) (24.6) (24.3)
Special termination benefit .................................. — 10.5 — —
Benefit obligation at December 31, ............................. $500.1 $504.5 $ 356.7 $ 416.4
Change in plan assets:
Fair value of plan assets at January 1, ........................... $458.7 $451.2 $ 77.7 $ 84.6
Actual return on plan assets ................................. 29.5 48.5 2.5 7.5
Employer contribution ..................................... 2.6 3.6 2.8 9.9
Benefits paid ............................................. (50.4) (44.6) (24.6) (24.3)
Fair value of plan assets at December 31, ........................ $440.4 $458.7 $ 58.4 $ 77.7
Reconciliation to Balance Sheet:
Unfunded status ............................................ $(59.7) $ (45.8) $(298.3) $(338.7)
Unrecognized transition (asset) obligation ........................ — (1.1) 29.5 33.7
Unrecognized prior service cost ................................ 25.5 25.7 80.8 161.9
Unrecognized net loss ........................................ 79.3 65.1 79.7 67.9
(Accrued) prepaid benefit cost ................................. $ 45.1 $ 43.9 $(108.3) $ (75.2)
79