Cincinnati Bell 2012 Annual Report Download - page 179

Form 10-K Part II Cincinnati Bell Inc.
The assumed healthcare cost trend rate used to measure the postretirement health benefit obligation is
shown below:
December 31,
2012 2011
Healthcare cost trend .......................................................... 6.5% 8.0%
Rate to which the cost trend is assumed to decline (ultimate trend rate) .................. 4.5% 4.5%
Year the rates reach the ultimate trend rate ......................................... 2016 2019
A one-percentage point change in assumed healthcare cost trend rates would have the following effect on
the postretirement benefit costs and obligation:
(dollars in millions) 1% Increase 1% Decrease
Service and interest costs for 2012 .......................................... $0.2 $(0.2)
Postretirement benefit obligation at December 31, 2012 ......................... 5.4 (4.8)
The projected benefit obligation is recognized in the Consolidated Balance Sheets as follows:
Pension Benefits
Postretirement and
Other Benefits
December 31, December 31,
(dollars in millions) 2012 2011 2012 2011
Accrued payroll and benefits (current liability) ....................... $ 1.7 $ 1.7 $ 21.4 $ 21.5
Pension and postretirement benefit obligations (noncurrent liability) ...... 239.4 255.0 119.3 131.3
Total ........................................................ $241.1 $256.7 $140.7 $152.8
Amounts recognized in “Accumulated other comprehensive loss” in the Consolidated Balance Sheets which
have not yet been recognized in net pension costs consisted of the following:
Pension Benefits
Postretirement and
Other Benefits
December 31, December 31,
(dollars in millions) 2012 2011 2012 2011
Prior service (cost) benefit, net of tax of $0.2, $0.2, $(26.0), $(30.8) ...... $ (0.3) $ (0.4) $ 45.9 $ 54.3
Actuarial loss, net of tax of $109.0, $111.6, $35.6, $37.3 ............... (192.5) (196.8) (62.7) (65.9)
Total ........................................................ $(192.8) $(197.2) $(16.8) $(11.6)
Amounts recognized in “Accumulated other comprehensive loss” on the Consolidated Statements of
Shareowners’ Deficit and the Consolidated Statements of Comprehensive Income/(Loss) are shown below:
Pension Benefits
Postretirement and
Other Benefits
(dollars in millions) 2012 2011 2012 2011
Prior service cost recognized:
Reclassification adjustments ................................... $ 0.1 $ 4.5 $(13.2) $(13.2)
Actuarial loss recognized:
Reclassification adjustments ................................... 19.4 14.3 6.8 6.5
Actuarial loss arising during the period ........................... (12.5) (74.2) (1.8) (13.2)
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Form 10-K