Fifth Third Bank 2012 Annual Report Download - page 136

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
134 Fifth Third Bancorp

20. RETIREMENT AND BENEFIT PLANS
The Bancorp’s qualified defined benefit plan’s benefits were frozen
in 1998, except for grandfathered employees. The Bancorp’s other
retirement plans consist of nonqualified, supplemental retirement
plans, which are funded on an as needed basis. A majority of these
plans were obtained in acquisitions from prior years. The Bancorp
recognizes the overfunded and underfunded status of its pension
plans as an asset and liability, respectively. The Bancorp’s other
defined benefit plans had an underfunded projected benefit
obligation at December 31, 2012 and 2011, respectively. The
underfunded amounts recognized in other liabilities on the
Consolidated Balance Sheets were $71 million and $72 million as of
December 31, 2012 and 2011, respectively.
The following table summarizes the defined benefit retirement plans as of and for the years ended December 31:
Plans with an Underfunded Status
($ in millions) 2012 2011
Fair value of plan assets at January 1 $ 181 197
A
ctual return on assets 21 -
Contributions 4 4
Settlement (10) (10)
Benefits paid (11) (10)
Fair value of plan assets at December 31 $ 185 181
Projected benefit obligation at January 1 $253 227
Service cost - -
Interest cost 10 11
Settlement (10) (10)
A
ctuarial loss 14 35
Benefits paid (11) (10)
Projected benefit obligation at December 31 $256 253
Unfunded projected benefit obligation at December 31 $(71) (72)
The estimated net actuarial loss for the defined benefit pension
plans that will be amortized from accumulated other comprehensive
income into net periodic benefit cost during 2013 is $13 million.
The estimated net prior service cost for the defined benefit pension
plan that will be amortized from accumulated other comprehensive
income into net periodic benefit cost during 2013 is immaterial to
the Consolidated Financial Statements.
The following table summarizes net periodic benefit cost and other changes in plan assets and benefit obligations recognized
i
n other
comprehensive income for the years ended December 31:
($ in millions) 2012 2011 2010
Components of net periodic benefit cost:
Service cost $-- -
Interest cost 10 11 12
Expected return on assets (13) (15) (14)
A
mortization of net actuarial loss 14 11 12
A
mortization of net prior se
r
vice cost -1 1
Settlement 66 -
Net periodic benefit cost $17 14 11
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial loss 750 2
Net prior service cost -- -
A
mortization of net actuarial loss (14) (11) (12)
A
mortization of prior service cost -(1) (1)
Settlement (6) (6) -
Total recognized in other comprehensive income (13) 32 (11)
Total recognized in net periodic benefit cost and
other comprehensive income $446 -