Huntington National Bank 2015 Annual Report Download - page 167

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The following table reconciles the beginning and ending balances of the fair value of Plan assets at the December 31, 2015 and
2014 measurement dates:
Pension
Benefits
(dollar amounts in thousands) 2015 2014
Fair value of plan assets at beginning of measurement year $ 653,013 $ 649,020
Changes due to:
Actual return on plan assets (16,122) 44,312
Settlements (25,428) (24,098)
Benefits paid (17,246) (16,221)
Total changes (58,796) 3,993
Fair value of plan assets at end of measurement year $ 594,217 $ 653,013
Huntington’s accumulated benefit obligation under the Plan was $755 million and $800 million at December 31, 2015 and 2014.
As of December 31, 2015, the accumulated benefit obligation exceeded the fair value of Huntington’s plan assets by $160 million and
is recorded in accrued expenses and other liabilities. The projected benefit obligation exceeded the fair value of Huntington’s plan
assets by $160 million.
The following table shows the components of net periodic benefit costs recognized in the three years ended December 31, 2015:
Pension Benefits Post-Retirement Benefits
(dollar amounts in thousands) 2015 2014 2013 2015 2014 2013
Service cost $ 1,830 $ 1,740 $ 25,122 $ — $ — $ —
Interest cost 31,937 32,398 30,112 506 856 862
Expected return on plan assets (44,175) (45,783)(47,716)— — —
Amortization of prior service cost ——
(2,883)(1,968)(1,609) (1,353)
Amortization of loss 7,934 5,767 23,044 (401)(571) (600)
Curtailment ——
(34,613)— — —
Settlements 12,645 11,200 8,116 (3,090)— —
Benefit costs $ 10,171 $ 5,322 $ 1,182 $ (4,953)$ (1,324) $ (1,091)
Included in benefit costs are $4 million, $2 million, and $2 million of plan expenses that were recognized in the three years
ended December 31, 2015, 2014, and 2013. It is Huntington’s policy to recognize settlement gains and losses as incurred. Assuming
no cash contributions are made to the Plan during 2016, Management expects net periodic pension benefit, excluding any expense of
settlements, to approximate $2 million for 2016. The postretirement medical and life subsidy was eliminated for anyone who 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, $2 million, and a $8 million benefit, respectively.
At December 31, 2015 and 2014, 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, money market funds, and Huntington mutual funds as
follows: