Huntington National Bank 2010 Annual Report Download - page 187

The following table reconciles the beginning and ending balances of the fair value of Plan assets at the
December 31, 2010 and 2009 measurement dates with the amounts recognized in the consolidated balance
sheets:
2010 2009
Pension Benefits
(Dollar amounts in thousands)
Fair value of plan assets at beginning of measurement year ........... $454,114 $407,079
Changes due to:
Actual return on plan assets ................................... 55,583 51,202
Employer contributions ...................................... 79 —
Settlements ............................................... (20,911) (12,394)
Plan combinations .......................................... 981 17,460
Benefits paid .............................................. (11,367) (9,233)
Total changes ............................................... 24,365 47,035
Fair value of plan assets at end of measurement year................ $478,479 $454,114
Huntington’s accumulated benefit obligation under the Plan was $575.9 million and $504.6 million at
December 31, 2010 and 2009. As of December 31, 2010, the accumulated benefit obligation exceeded the fair
value of Huntington’s plan assets by $97.4 million.
The following table shows the components of net periodic benefit cost recognized in the three years
ended December 31, 2010:
2010 2009 2008 2010 2009 2008
Pension Benefits Post-Retirement Benefits
(Dollar amounts in thousands)
Service cost .................... $ 20,205 $ 23,692 $ 23,680 $—$1,550 $ 1,679
Interest cost .................... 28,869 28,036 26,804 1,731 3,274 3,612
Expected return on plan assets ...... (42,113) (41,960) (39,145) ———
Amortization of transition asset ..... 565—920 1,104
Amortization of prior service cost .... (5,766) (553) 314 (1,353) 91 379
Amortization of loss .............. 14,989 8,689 — (699) (888) (1,095)
Curtailments ................... ————(527) —
Settlements .................... 9,694 6,213 7,099 ———
Recognized net actuarial loss ....... —— 3,550 ———
Benefit cost .................... $ 25,883 $ 24,123 $ 22,307 $ (321) $4,420 $ 5,679
Included in benefit costs are $1.0 million, $0.7 million, and $0.6 million of plan expenses that were
recognized in the three years ended December 31, 2010, 2009, and 2008. It is Huntington’s policy to recognize
settlement gains and losses as incurred. Assuming no cash contributions are made to the Plan during 2011,
Management expects net periodic pension cost, excluding any expense of settlements, to approximate
$31.1 million for 2011. There will be no net periodic post-retirement benefits costs in 2010, as the
postretirement medical and life subsidy was eliminated for anyone that retires on or after March 1, 2010.
The estimated transition obligation, prior service credit, and net actuarial loss for the plans that will be
amortized from OCI into net periodic benefit cost over the next fiscal year is less than $1.0 million,
$6.8 million, and $22.8 million, respectively.
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