Comerica 2011 Annual Report Download - page 143

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Comerica Incorporated and Subsidiaries
F-106
The table below provides a summary of changes in the Corporation’s qualified defined benefit pension plan’s Level 3
investments measured at fair value on a recurring basis for the years ended December 31, 2011 and 2010.
(in millions)
Year Ended December 31, 2011
Private placements
Year Ended December 31, 2010
Private placements
Balance at
Beginning
of Period
$ 28
$ 28
Gains (Losses)
Realized
$ —
$ —
Unrealized
$ 1
$ 1
Purchases
$ 9
$ 10
Sales
$(12)
$(11)
Balance at
End of Period
$ 26
$ 28
There were no assets in the non-qualified defined benefit pension plan at December 31, 2011 and 2010. The postretirement
benefit plan is fully invested in bank-owned life insurance policies. The fair value of bank-owned life insurance policies is based
on the cash surrender values of the policies as reported by the insurance companies and are classified in Level 2 of the fair value
hierarchy.
Cash Flows
Estimated future employer contributions were zero for the qualified and non-qualified defined benefit pension plans and
postretirement benefit plan for the year ended December 31, 2011.
(in millions)
Years Ended December 31
2012
2013
2014
2015
2016
2017 - 2021
Estimated Future Benefit Payments
Qualified
Defined Benefit
Pension Plan
$ 55
59
63
67
72
436
Non-Qualified
Defined Benefit
Pension Plan
$ 9
10
11
12
13
70
Postretirement
Benefit Plan (a)
$ 7
7
7
7
7
29
(a) Estimated benefit payments in the postretirement benefit plan are net of estimated Medicare subsidies.
Defined Contribution Plans
Substantially all of the Corporation’s employees are eligible to participate in the Corporation’s principal defined
contribution plan (a 401(k) plan). Under this plan, the Corporation makes core matching cash contributions of 100 percent of the
first four percent of qualified earnings contributed by employees (up to the current IRS compensation limit), invested based on
employee investment elections. Employee benefits expense included expense for the plan of $20 million, $19 million and $20
million in the years ended December 31, 2011, 2010 and 2009, respectively.
The Corporation also provides a noncontributory defined contribution pension plan for the benefit of substantially all
full-time employees hired on or after January 1, 2007. Under the defined contribution pension plan, the Corporation makes an
annual contribution to the individual account of each eligible employee ranging from three percent to eight percent of annual
compensation, determined based on combined age and years of service. The contributions are invested based on employee
investment elections. The employee fully vests in the defined contribution pension plan after three years of service. Before an
employee is eligible to participate, the plan requires the equivalent of six months of service. The Corporation recognized $4 million,
$3 million and $3 million in employee benefits expense for this plan for the years ended December 31, 2011, 2010 and 2009,
respectively.
Deferred Compensation Plans
The Corporation offers optional deferred compensation plans under which certain employees may make an irrevocable
election to defer incentive compensation and/or a portion of base salary until retirement or separation from the Corporation. The
employee may direct deferred compensation into one or more deemed investment options. Although not required to do so, the
Corporation invests actual funds into the deemed investments as directed by employees, resulting in a deferred compensation
asset, recorded in “other short-term investments” on the consolidated balance sheets that offsets the liability to employees under
the plan, recorded in “accrued expenses and other liabilities.” The earnings from the deferred compensation asset are recorded in
“interest on short-term investments” and “other noninterest income” and the related change in the liability to employees under the
plan is recorded in “salaries” expense on the consolidated statements of income.