Progress Energy 2004 Annual Report Download - page 91

The 2003 OPEB obligation information above has been
restated due to the implementation of FASB Staff Position
106-2 (See Note 2).
The net accrued pension cost of $103 million at December
31, 2004, is recognized in the Consolidated Balance Sheets
as prepaid pension cost of $42 million and accrued benefit
cost of $145 million, which is included in accrued pension
and other benefits. The net prepaid pension cost of
$345 million at December 31, 2003, is recognized in the
Consolidated Balance Sheets as prepaid pension cost of
$462 million and accrued benefit cost of $117 million, which
is included in accrued pension and other benefits. The
defined benefit pension plans with accumulated benefit
obligations in excess of plan assets had projected benefit
obligations totaling $1.72 billion and $125 million at
December 31, 2004 and 2003, respectively. Those plans had
accumulated benefit obligations totaling $1.71 billion and
$117 million at December 31, 2004 and 2003, respectively,
$1.57 billion of plan assets at December 31, 2004, and no
plan assets at December 31, 2003. The total accumulated
benefit obligation for pension plans was $1.90 billion and
$1.72 billion at December 31, 2004 and 2003, respectively.
The accrued OPEB cost is included in accrued pension
and other benefits in the Consolidated Balance Sheets.
A minimum pension liability adjustment of $470 million
was recorded at December 31, 2004. This adjustment
resulted in a charge of $24 million to intangible assets, a
$150 million charge to a pension-related regulatory
liability (See Note 17B), a $67 million charge to a
regulatory asset pursuant to a recent FPSC order and a
pre-tax charge of $229 million to accumulated other
comprehensive loss, a component of common stock
equity. A minimum pension liability adjustment of
$23 million, related to the supplementary defined benefit
pension plans, was recorded at December 31, 2003. This
adjustment is offset by a corresponding pre-tax amount
in accumulated other comprehensive loss.
Reconciliations of the fair value of plan assets are:
In the table above, substantially all employer
contributions represent benefit payments made directly
from Company assets except for the 2004 pension
amount. The remaining benefits payments were made
directly from plan assets. In 2004, the Company made a
required contribution of approximately $24 million directly
to pension plan assets. The OPEB benefit payments
represent the net Company cost after participant
contributions. Participant contributions represent
approximately 20% of gross benefit payments.
89
Progress Energy Annual Report 2004
Pension Benefits
Other
Postretirement
Benefits
(in millions) 2004 2003 2004 2003
Fair value of plan assets January 1 $1,631 $1,364 $65 $52
Actual return on plan assets 211 391 812
Disposition of NCNG –(35) ––
Benefit payments (98) (94) (23) (24)
Employer contributions 30 520 25
Fair value of plan assets
at December 31 $1,774 $1,631 $70 $65
Pension Benefits Other Postretirement Benefits
(in millions) 2004 2003 2004 2003
Projected benefit obligation at January 1 $1,772 $1,694 $472 $514
Service cost 54 52 12 15
Interest cost 110 108 31 33
Disposition of NCNG –(39) –(13)
Benefit payments (98) (94) (23) (24)
Plan amendment 21 –––
Actuarial loss (gain) 102 51 46 (53)
Obligation at December 31 1,961 1,772 538 472
Fair value of plan assets at December 31 1,774 1,631 70 65
Funded status (187) (141) (468) (407)
Unrecognized transition obligation ––10 25
Unrecognized prior service cost 24 467
Unrecognized net actuarial loss 530 505 94 40
Minimum pension liability adjustment (470) (23) ––
Prepaid (accrued) cost at December 31, net (Note 17B) $(103) $345 $(358) $(335)