Huntington National Bank 2008 Annual Report Download - page 116

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income associated with these unfunded plans in 2006. The adoption of Statement No. 158 eliminated the need to record any
further minimum pension liability adjustments associated with these plans.
On December 31, 2006, Huntington adopted the recognition provisions of Statement No. 158, which required Huntington to
recognize the funded status of the defined benefit plans on its Consolidated Balance Sheet. Statement No. 158 also required
recognition of actuarial gains and losses, prior service cost, and any remaining transition amounts from the initial application of
Statements No. 87, Employers Accounting for Pensions, and Statement No. 106, Employers’ Accounting for Postretirement Benefits
Other Than Pensions, as a component of accumulated other comprehensive income, net of tax.
The following table presents the amounts recognized in the consolidated balance sheets at December 31, 2008 and 2007 for all of
Huntington defined benefit plans.:
(in thousands) 2008 2007
Accrued income and other assets $— $89,246
Accrued expenses and other liabilities 161,585 85,228
The following tables present the amounts recognized in accumulated other comprehensive loss (net of tax) as of December 31,
2008 and 2007 and the changes in accumulated other comprehensive income for the years ended December 31, 2008 and 2007.
(in thousands) 2008 2007
Net actuarial loss $(156,762) $(36,301)
Prior service cost (4,123) (4,914)
Transition liability (2,691) (2,938)
Defined benefit pension plans $(163,576) $(44,153)
(in thousands) Pre-tax
Tax Expense
(benefit)
Net
of tax Pre-tax
Tax Expense
(benefit)
Net
of tax
2008 2007
Balance, beginning of year $ (67,928) $ 23,775 $ (44,153) $(132,813) $ 46,485 $(86,328)
Impact of change in measurement date (1,485) 520 (965) — — —
Net actuarial (loss) gain:
Amounts arising during the year (186,923) 65,423 (121,500) 53,312 (18,659) 34,653
Amortization included in net periodic benefit
costs 2,608 (913) 1,695 12,169 (4,260) 7,909
Prior service cost:
Amounts arising during the year — — — (2,318) 811 (1,507)
Amortization included in net periodic benefit
costs 964 (337) 627 615 (215) 400
Transition obligation:
Amounts arising during the year (1) — (1) — — —
Amortization included in net periodic benefit
costs 1,109 (388) 721 1,107 (387) 720
Balance, end of year $(251,656) $88,080 $(163,576) $ (67,928) $ 23,775 $(44,153)
Huntington has a defined contribution plan that is available to eligible employees. Huntington matches participant contributions,
up to the first 3% of base pay contributed to the plan. Half of the employee contribution is matched on the 4th and 5th percent of
base pay contributed to the plan. In the first quarter 2009, the Company announced the suspension of the contribution match to
the plan. The cost of providing this plan was $15.0 million in 2008, $12.9 million in 2007, and $10.3 million in 2006. The number
of shares of Huntington common stock held by this plan was 8,055,336 at December 31, 2008, and 6,591,876 at December 31,
2007. The market value of these shares was $61.7 million and $97.3 million at the same respective dates. Dividends received by the
plan were $14.3 million during 2008 and $27.9 million during 2007.
19. FAIR VALUES OF ASSETS AND LIABILITIES
As discussed in Note 2, “New Accounting Pronouncements”, Huntington adopted fair value accounting standards Statement
No. 157 and Statement No. 159 effective January 1, 2008. Huntington elected to apply the provisions of Statement No. 159, the fair
value option, for mortgage loans originated with the intent to sell which are included in loans held for sale. Previously, a majority
of the mortgage loans held for sale were recorded at fair value under the fair value hedging requirements of Statement No. 133.
Application of the fair value option allows for both the mortgage loans held for sale and the related derivatives purchased to hedge
interest rate risk to be carried at fair value without the burden of hedge accounting under Statement No. 133. The election was
114
Notes to Consolidated Financial Statements Huntington Bancshares Incorporated