Vectren 2010 Annual Report Download - page 90

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88
Expected Cash Flows
In 2011, the Company expects to make contributions of approximately $35 million to its pension plan trusts. In addition, the
Company expects to make payments totaling approximately $0.7 million directly to SERP participants and approximately $4.6
million directly to those participating in other postretirement plans.
Estimated retiree pension benefit payments, including the SERP, projected to be required during the years following 2010 (in
millions) are approximately $15.4 in 2011, $16.1 in 2012 $16.9 in 2013, $17.6 in 2014, $18.5 in 2015 and $111.7 in years 2016-
2020. Expected benefit payments projected to be required for postretirement benefits during the years following 2010 (in
millions) are approximately $7.6 in 2011, $8.1 in 2012, $8.6 in 2013, $9.1 in 2014, and $9.5 in 2015 and $55.2 in years 2016-
2020.
Prior Service Cost, Actuarial Gains and Losses, and Transition Obligation Effects
Following is a roll forward of prior service cost, actuarial gains and losses, and transition obligations.
(In millions) Pensions Other Benefits
Prior
Service
Cost
Net Gain or
Loss
Prior
Service
Cost
Net Gain or
Loss
Transition
Obligation
Balance January 1, 2008 11.2$ 11.9$ (4.7)$ (1.1)$ 7.6$
Amounts arising during the period 0.4 79.1 - 4.6 -
Reclassification to benefit costs (2.1) (0.1) 1.0 - (1.4)
Balance December 31, 2008 9.5 90.9 (3.7) 3.5 6.2
Amounts arising during the period 0.1 (20.2) 0.1 6.6 (0.1)
Reclassification to benefit costs (1.7) (2.2) 0.8 (0.4) (1.1)
Balance December 31, 2009 7.9$ 68.5$ (2.8)$ 9.7$ 5.0$
Amounts arising during the period 0.8 12.9 - 1.1 -
Reclassification to benefit costs (1.6) (3.2) 0.8 (0.5) (1.2)
Balance December 31, 2010 7.1$ 78.2$ (2.0)$ 10.3$ 3.8$
The 2008 roll forwards of prior service cost, actuarial gains and losses, and transition obligations include 15 months of activity
due to moving the measurement date from September 30 to December 31.
Following is a reconciliation of the amounts in Accumulated other comprehensive income (AOCI) and Regulatory assets related
to retirement plan obligations at December 31, 2010 and 2009:
(In millions) 2010 2009
Pensions Other Benefits Pensions Other Benefits
Prior service cost 7.1$ (2.0)$ 7.9$ (2.8)$
Unamortized actuarial gain/(loss) 78.2 10.3 68.5 9.7
Transition obligation - 3.8 - 5.0
85.3 12.1 76.4 11.9
Less: Regulatory asset deferral (81.0) (11.5) (72.6) (11.3)
AOC
I
before taxes 4.3$ 0.6$ 3.8$ 0.6$
Related to pension plans, $1.7 million of prior service cost and $3.8 million of actuarial gain/loss is expected to be amortized to
cost in 2011. Related to other benefits, $1.1 million of the transition obligation and $0.6 million of actuarial gain/loss is expected
to be amortized to periodic cost in 2011, and $0.8 million of prior service cost is expected to reduce cost in 2011.