Huntington National Bank 2008 Annual Report Download - page 113

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FASB Statements No. 87, 88, 106, and 132R (Statement No. 158). Huntington previously used a measurement date of September 30
to value plan assets and benefit obligations. As a result of the change in measurement date, Huntington recognized a charge to
beginning retained earnings of $4.7 million, representing the net periodic benefit costs for the last three months of 2007, and a
charge to the opening balance of accumulated other comprehensive loss of $3.8 million, representing the change in fair value of
plan assets and benefit obligations for the last three months of 2007 (net of amortization included in net periodic benefit cost).
The following table shows the weighted-average assumptions used to determine the benefit obligation at December 31, 2008 and
2007, and the net periodic benefit cost for the years then ended.
2008 2007 2008 2007
Pension Benefits
Post-Retirement
Benefits
Weighted-average assumptions used to determine benefit obligations at December 31
Discount rate 6.17% 6.30% 6.17% 6.30%
Rate of compensation increase 4.00 5.00 N/A N/A
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31
Discount rate 6.47% 5.97% 6.47% 5.97%
Expected return on plan assets 8.00 8.00 N/A N/A
Rate of compensation increase 5.00 5.00 N/A N/A
N/A, Not Applicable
The expected long-term rate of return on plan assets is an assumption reflecting the average rate of earnings expected on the funds
invested or to be invested to provide for the benefits included in the projected benefit obligation. The expected long-term rate of
return is established at the beginning of the plan year based upon historical returns and projected returns on the underlying mix of
invested assets.
The following table reconciles the beginning and ending balances of the benefit obligation of the Plan and the post-retirement
benefit plan with the amounts recognized in the consolidated balance sheets at December 31:
(in thousands) 2008 2007 2008 2007
Pension Benefits
Post-Retirement
Benefits
Projected benefit obligation at beginning of measurement year $427,828 $425,704 $59,008 $48,221
Impact of change in measurement date (1,956) —(804) —
Changes due to:
Service cost 23,680 19,087 1,679 1,608
Interest cost 26,804 24,408 3,612 2,989
Benefits paid (8,630) (7,823) (3,552) (3,242)
Settlements (12,459) (12,080) ——
Plan amendments —2,295 —15,685
Actuarial assumptions and gains and losses 14,429 (23,763) 490 (6,253)
Total changes 43,824 2,124 2,229 10,787
Projected benefit obligation at end of measurement year $469,696 $427,828 $60,433 $59,008
Changes to certain actuarial assumptions, including a lower discount rate, increased the pension benefit obligation at December 31,
2008 by $14.4 million.
111
Notes to Consolidated Financial Statements Huntington Bancshares Incorporated