Huntington National Bank 2012 Annual Report Download - page 172

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The following table shows the components of net periodic benefit costs recognized in the three years ended December 31,
2012:
Pension Benefits Post-Retirement Benefits
(dollar amounts in thousands) 2012 2011 2010 2012 2011 2010
Service cost $ 24,869 $ 21,650 $ 20,205 $ --- $ --- $ ---
Interest cost 29,215 30,073 28,869 1,350 1,618 1,731
Expected return on plan assets (45,730) (43,290) (42,113) --- --- ---
Amortization of transition asset (4) (5) 5 --- --- ---
Amortization of prior service cost (5,767) (5,767) (5,766) (1,353) (1,354) (1,353)
Amortization of loss 26,956 23,494 14,989 (332) (423) (699)
Settlements 5,405 5,483 9,694 --- --- ---
Benefit costs $ 34,944 $ 31,638 $ 25,883 $ (335) $ (159) $ (321)
Included in benefit costs are $1.1 million, $0.8 million, and $1.0 million of plan expenses that were recognized in the three
years ended December 31, 2012, 2011, and 2010. It is Huntington’s policy to recognize settlement gains and losses as incurred.
Assuming no cash contributions are made to the Plan during 2013, Management expects net periodic pension cost, excluding any
expense of settlements, to approximate $42.7 million for 2013. The postretirement medical and life subsidy was eliminated for
anyone that retires on or after March 1, 2010. As such, there were no incremental net periodic post-retirement benefits costs associated
with this plan.
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 zero, $7.1 million, and $38.5 million, respectively.
At December 31, 2012 and 2011, The Huntington National Bank, as trustee, held all Plan assets. The Plan assets consisted of
investments in a variety of corporate and government fixed income investments, Huntington mutual funds and Huntington common
stock as follows:
Fair Value
(dollar amounts in thousands) 2012 2011 (1)
Cash $ 22 ---%$ 25 ---%
Cash equivalents:
Huntington funds - money market 6,012 1 39,943 7
Fixed income:
Huntington funds - fixed income funds 84,688 13 174,615 32
Corporate obligations 149,241 24 --- ---
U.S. Government Obligations 36,595 6 --- ---
U.S. Government Agencies 7,511 1 --- ---
Equities:
Huntington funds 312,479 49 283,963 53
Huntington common stock 37,069 6 40,424 8
Other common stock --- --- --- ---
Fair value of plan assets $ 633,617 100 %$ 538,970 100 %
(1)A $40 million contribution to the Plan on December 28, 2011, had not yet been invested and was in Huntington Funds-money
market as of December 31, 2011.
Investments of the Plan are accounted for at cost on the trade date and are reported at fair value. All of the Plan’s
investments at December 31, 2012 are classified as Level 1 within the fair value hierarchy, except for corporate obligations, U.S.
government obligations, and U.S. government agencies, which are classified as Level 2. In general, investments of the Plan are
exposed to various risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk associated with
certain investments, it is reasonably possible that changes in the values of investments will occur in the near term and that such
changes could materially affect the amounts reported in the Plan assets.