Progress Energy 2010 Annual Report Download - page 98

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Pension
Benefits OPEB
(in millions) 2010 2009 2010 2009
Projected benefit obligation
at January 1 $2,422 $2,234 $543 $608
Service cost 48 42 16 7
Interest cost 140 138 45 31
Settlements –(9) ––
Benefit payments (129) (124) (44) (40)
Plan amendment 13––
Actuarial loss (gain) 127 138 173 (63)
Obligation at December 31 2,609 2,422 733 543
Fair value of plan assets at
December 31 1,891 1,673 33 55
Funded status $(718) $(749) $(700) $(488)
All defined benefit pension plans had accumulated benefit
obligations in excess of plan assets, with projected benefit
obligations totaling $2.609 billion and $2.422 billion at
December 31, 2010 and 2009, respectively. Those plans had
accumulated benefit obligations totaling $2.563 billion and
$2.378 billion at December 31, 2010 and 2009, respectively,
and plan assets of $1.891 billion and $1.673 billion at
December 31, 2010 and 2009, respectively.
The accrued benefit costs reflected in the Consolidated
Balance Sheets at December 31 were as follows:
Pension
Benefits OPEB
(in millions) 2010 2009 2010 2009
Current liabilities $(10) $(9) $(22) $–
Noncurrent liabilities (708) (740) (678) (488)
Funded status $(718) $(749) $(700) $(488)
The following table provides a summary of amounts not
yet฀ recognized฀ as฀ a฀ component฀ of฀ net฀ periodic฀ cost฀ at฀
December 31:
Pension
Benefits OPEB
(in millions) 2010 2009 2010 2009
Recognized฀in฀accumulated฀
other comprehensive loss
Net actuarial loss (gain) $90 $83 $5 $(5)
Other, net 910 1–
Recognized฀in฀regulatory฀
assets, net
Net actuarial loss 824 806 183 32
Other, net 55 59 914
Total฀not฀yet฀recognized
as a component of net
periodic cost(a) $978 $958 $198 $41
(a)
All components are adjusted to reflect PEF’s rate treatment (See
Note 16B).
The following table presents the amounts we expect to
recognize฀as฀components฀of฀net฀periodic฀cost฀in฀2011:
(in millions) Pension Benefits OPEB
Amortization฀of฀actuarial฀loss(a) $58 $12
Amortization฀of฀other,฀net(a) 7 5
(a) Adjusted to reflect PEF’s rate treatment (See Note 16B).
The following weighted-average actuarial assumptions
were used in the calculation of our year-end obligations:
Pension
Benefits OPEB
2010 2009 2010 2009
Discount rate 5.65% 6.00% 5.75% 6.05%
Rate of increase in future
compensation
Bargaining 4.50% 4.50% ––
Supplementary plans 5.25% 5.25% ––
Initial medical cost trend
rate for pre-Medicare Act
benefits ––8.50% 8.50%
Initial medical cost trend rate
for post-Medicare Act
benefits ––8.50% 8.50%
Ultimate medical cost trend
rate ––5.00% 5.00%
Year ultimate medical cost
trend rate is achieved ––2017 2016