PNC Bank 2000 Annual Report Download - page 79

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76
OT H E R DE R I V A T I V E S
The following schedule sets forth information relating to positions associated with customer-related and other derivatives:
At December 31, 2000 2000 At December 31, 1999 1999
Positive Negative Net Average Positive Negative Net Average
Notional Fair Fair Asset Fair Notional Fair Fair Asset Fair
In millions Value Value Value (Liability) Value Value Value Value (Liability) Value
Customer-related
Interest rate
Swaps . . . . . . . . . . . . . . . . $13,567 $120 $(127) $(7) $(1) $17,103 $110 $(116) $(6) $(13)
Caps/floors
Sold . . . . . . . . . . . . . . . . 5,145 (17) (17) (23) 3,440 (25) (25) (20)
Purchased . . . . . . . . . . . 3,914 15 15 21 3,337 22 22 18
Foreign exchange . . . . . . . . . . 6,108 79 (82) (3) 7 3,310 47 (36) 11 7
Other . . . . . . . . . . . . . . . . . . . 2,544 59 (59) 4 2,161 22 (9) 13 3
Total customer-related . . . . . . 31,278 273 (285) (12) 8 29,351 201 (186) 15 (5)
Other . . . . . . . . . . . . . . . . . . . 1,207 13 (1) 12 8 1,238 6 6 4
Total other derivatives . . . . . . $32,485 $286 $(286) $16 $30,589 $207 $(186) $21 $(1)
NO T E 1 9 EM P L O Y E E
BE N E F I T PL A N S
PE N S I O N A N D PO S T R E T I R E M E N T PL A N S
Qualified and Postretirement
Nonqualified Pensions Benefits
December 31 - in millions 2000 1999 2000 1999
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $840 $866 $198 $187
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 24 22
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 60 14 12
Actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7(39) 713
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20)
Participant contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (68) (71) (22) (19)
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $856 $840 $203 $198
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $939 $758
Actual (loss) return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (29) 147
Employer contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 105
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (20)
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (68) (71)
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $952 $939
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $96 $99 $(203) $(198)
Unrecognized net actuarial loss (gain) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 (60) 38 30
Unrecognized prior service credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) (6) (63) (69)
Unrecognized net transition asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4)
Net amount recognized on the balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . $156 $29 $(228) $(237)
Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $156 $29
Additional minimum liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18) (22)
Intangible asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 19
Net amount recognized on the balance sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . $156 $29
The Corporation has a noncontributory, qualified defined
benefit pension plan covering most employees. Retirement
benefits are derived from a cash balance formula based
upon compensation levels, age and length of service.
Pension contributions are based on an actuarially deter-
mined amount necessary to fund total benefits payable to
plan participants.
The Corporation also maintains nonqualified supple-
mental retirement plans for certain employees. All retire-
ment benefits provided under these plans are unfunded and
any payments to plan participants are made by the
Corporation. The Corporation also provides certain health
care and life insurance benefits for retired employees
(“postretirement benefits”) through various plans.
A reconciliation of the changes in the benefit obligation for qualified and nonqualified pension plans and postre t i r e m e n t
benefit plans as well as the change in plan assets for the qualified pension plan is as follows: