Progress Energy 2010 Annual Report Download - page 97
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93
Progress Energy Annual Report 2010
Pension Benefits OPEB
(in millions) 2010 2009 2008 2010 2009 2008
Other comprehensive income (loss)
Recognizedfortheyear
Net actuarial (loss) gain $(11) $(1) $(64) $(10) $4 $(8)
Other, net –– (6) –– –
Reclassification adjustments
Net actuarial loss 45 1 –1 –
Other, net –– 1 –1 –
Regulatory asset (increase) decrease
Recognizedfortheyear
Net actuarial (loss) gain (65) 10 (735) (164) 64 (73)
Other, net –(3) (36) –– –
Amortizedtoincome(a)
Net actuarial loss 47 49 7 13 – 1
Other, net 66 1 54 5
(a)
Theseamountswereamortizedasacomponentofnetperiodiccost,asreflectedinthepreviousnetperiodiccosttable.Refertothattable
for information regarding the deferral of a portion of net periodic pension cost.
The following weighted-average actuarial assumptions
were used in the calculation of our net periodic cost:
Pension Benefits OPEB
2010 2009 2008 2010 2009 2008
Discount rate 6.00% 6.30% 6.20% 6.05% 6.20% 6.20%
Rate of increase in future compensation
Bargaining 4.50% 4.25% 4.25% – – –
Supplementary plans 5.25% 5.25% 5.25% – – –
Expected long-term rate of return on plan assets 8.75% 8.75% 9.00% 6.60% 6.80% 8.10%
The expected long-term rates of return on plan assets
were determined by considering long-term projected
returns based on the plans’ target asset allocations.
Specifically, return rates were developed for each major
asset class and weighted based on the target asset
allocations. The projected returns were benchmarked
against historical returns for reasonableness. We
decreased our expected long-term rate of return on
pension assets by 0.25% in 2009, primarily due to the
uncertainties resulting from the severe capital market
deterioration in 2008. See the “Assets of Benefit Plans”
section below for additional information regarding our
investment policies and strategies.
BENEFIT OBLIGATIONS AND ACCRUED COSTS
GAAP requires us to recognize in our statement of
financial condition the funded status of our pension and
other postretirement benefit plans, measured as the
difference between the fair value of the plan assets and
the benefit obligation as of the end of the fiscal year.
Reconciliations of the changes in benefit obligations
and the funded status as of December 31, 2010 and 2009
are presented in the table below, followed by related
supplementary information.