Huntington National Bank 2011 Annual Report Download - page 193

The following table shows the components of net periodic benefit cost recognized in the three years ended
December 31, 2011:
Pension Benefits Post-Retirement Benefits
2011 2010 2009 2011 2010 2009
(dollar amounts in thousands)
Service cost ................ $ 21,650 $ 20,205 $ 23,692 $—$ — $1,550
Interest cost ................ 30,073 28,869 28,036 1,618 1,731 3,274
Expected return on plan
assets ................... (43,290) (42,113) (41,960) ———
Amortization of transition
asset ................... (5) 56—— 920
Amortization of prior service
cost .................... (5,767) (5,766) (553) (1,354) (1,353) 91
Amortization of loss ......... 23,494 14,989 8,689 (423) (699) (888)
Curtailments ............... ————— (527)
Settlements ................ 5,483 9,694 6,213 ———
Benefit cost ............... $ 31,638 $ 25,883 $ 24,123 $ (159) $ (321) $4,420
Included in benefit costs are $0.8 million, $1.0 million, and $0.7 million of plan expenses that were
recognized in the three years ended December 31, 2011, 2010, and 2009. It is Huntington’s policy to recognize
settlement gains and losses as incurred. Assuming no cash contributions are made to the Plan during 2012,
Management expects net periodic pension cost, excluding any expense of settlements, to approximate $38.7
million for 2012. The postretirement medical and life subsidy was eliminated for anyone that retires on or after
March 1, 2010. As such, there will be no incremental net periodic post-retirement benefits costs associated with
this plan in 2011 and 2012.
The estimated transition obligation, prior service credit, and net actuarial loss for the plans that will be
amortized from OCI into net periodic benefit cost over the next fiscal year is less than $1.0 million, $6.9 million,
and $26.8 million, respectively.
At December 31, 2011 and 2010, The Huntington National Bank, as trustee, held all Plan assets. The Plan
assets consisted of investments in a variety of Huntington mutual funds and Huntington common stock as
follows:
Fair Value
2011 2010
(dollar amounts in thousands)
Cash .............................................. $25—%$——%
Cash equivalents:
Huntington funds — money market(1) ................. 39,943 7 25 —
Fixed income: ......................................
Huntington funds — fixed income funds ............... 174,615 32 133,330 28
Equities:
Huntington funds .................................. 283,963 53 318,155 66
Huntington common stock .......................... 40,424 8 26,969 6
Fair value of plan assets ............................. $538,970 100% $478,479 100%
(1) A $40 million contribution was made to the Plan on December 28, 2011, and had not yet been invested as of
December 31, 2011.
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