Cincinnati Bell 2009 Annual Report Download - page 151

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Amounts recognized in “Accumulated other comprehensive loss” on the Consolidated Statements of
Shareowners’ Equity (Deficit) and Comprehensive Income (Loss) for the year ended December 31, 2009, are
shown below:
(dollars in millions)
Pension
Benefits
Postretirement
and Other
Benefits
Transition obligation:
Reclassification adjustments ...................................... $ — $ 0.1
Actuarial gain arising during the period ............................. — 5.6
Prior service cost recognized:
Reclassification adjustments ...................................... (6.9) (12.1)
Actuarial gain arising during the period ............................. — 122.6
Actuarial loss recognized:
Reclassification adjustments ...................................... 8.7 4.5
Actuarial loss arising during the period .............................. (49.5) (7.8)
The following amounts currently included in “Accumulated other comprehensive loss” are expected to be
recognized in 2010 as a component of net periodic pension and postretirement cost:
(dollars in millions)
Pension
Benefits
Postretirement
and Other
Benefits
Prior service cost (benefit) ........................................ $0.5 $(13.2)
Actuarial loss .................................................. 9.3 5.2
Plan Assets, Investment Policies and Strategies
The primary investment objective for the trusts holding the assets of the pension and postretirement plans is
preservation of capital with a reasonable amount of long-term growth and income without undue exposure to
risk. This is provided by a balanced strategy using fixed income and equity securities. The target allocations for
the pension plan assets are 61% equity securities, 31% investment grade fixed income securities and 8% in
pooled real estate funds. Equity securities are primarily held in the form of passively managed funds that seek to
track the performance of a benchmark index. Equity securities include investments in growth and value common
stocks of companies located in the United States, which represents approximately 80% of the equity securities
held by the pension plans at December 31, 2009, as well as stock of international companies located in both
developed and emerging markets around the world. Fixed income securities primarily include holdings of funds
which generally invest in a variety of intermediate and long-term investments grade corporate bonds from
diversified industries. The postretirement plan assets are currently invested in various short-term liquid funds as
the Company expects these funds to be utilized over the next year to fund benefit payments.
The fair values of the Company’s pension and postretirement plan assets at December 31, 2009 by asset
category are as follows:
(dollars in millions)
December 31,
2009
Quoted prices
in active
markets
Level 1
Significant
observable
inputs
Level 2
Significant
unobservable
inputs
Level 3
Equity securities .................................. $172.7 $172.7 $ — $ —
Fixed income securities ............................ 154.0 139.0 15.0 —
Real estate ....................................... 19.6 — — 19.6
81
Form 10-K