Huntington National Bank 2007 Annual Report Download - page 105

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The following table reconciles the beginning and ending balances of the fair value of Plan assets with the amounts recognized in
the consolidated balance sheets at the September 30 measurement date:
(in thousands) 2007 2006
Pension Benefits
Fair value of plan assets at beginning of measurement year (September 30) $481,015 $440,787
Changes due to:
Actual return on plan assets 56,981 30,232
Employer contributions —29,800
Settlements (13,280) (12,313)
Benefits paid (7,823) (7,491)
Total changes 35,878 40,228
Fair value of plan assets at end of measurement year (September 30) $516,893 $481,015
Huntington’s accumulated benefit obligation under the Plan was $387 million and $384 million at September 30, 2007 and 2006,
respectively. In both years, the fair value of Huntington’s plan assets exceeded its accumulated benefit obligation.
The following table shows the components of net periodic benefit cost recognized in the three years ended December 31, 2007:
(in thousands) 2007 2006 2005 2007 2006 2005
Pension Benefits Post-Retirement Benefits
Service cost $ 19,087 $ 17,552 $ 14,186 $1,608 $1,302 $1,378
Interest cost 24,408 22,157 19,016 2,989 2,332 2,903
Expected return on plan assets (37,056) (33,577) (25,979) ———
Amortization of transition asset 4(1) (4) 1,104 1,104 1,104
Amortization of prior service cost 111379 489 379
Amortization of gain ———(368) (722) (126)
Settlements 2,218 3,565 3,642 ———
Recognized net actuarial loss 11,076 17,509 10,689 ———
Benefit cost $ 19,738 $ 27,206 $ 21,551 $5,712 $4,505 $5,638
Included in service costs are $0.4 million, $0.4 million and $0.3 million of plan expenses that were recognized in the three years
ended December 31, 2007, 2006 and 2005. It is Huntington’s policy to recognize settlement gains and losses as incurred.
Management expects net periodic pension cost to approximate $16.2 million and net periodic post-retirement benefits cost to
approximate $5.7 million for 2008.
The estimated transition asset, prior service cost and net gain for the plans that will be amortized from accumulated other
comprehensive income into net periodic benefit cost over the next fiscal year is $4.7 million, $0.6 million and ($1.1 million),
respectively.
Under the Medicare Prescription Drug, Improvement and Modernization Act of 2003, Huntington has registered for the Medicare
subsidy and a resulting $15.5 million reduction in the post-retirement obligation is being recognized over a 10-year period
beginning October 1, 2005.
103
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS HUNTINGTON BANCSHARES INCORPORATED