BENEFIT PLANS (Tables)
|
12 Months Ended |
Dec. 31, 2016 |
|---|
| Compensation and Retirement Disclosure [Abstract] |
|
| Schedule of weighted-average assumptions used |
The following table shows the weighted-average assumptions used to determine the benefit obligation at December 31, 2016 and 2015, and the net periodic benefit cost for the years then ended:
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Pension
Benefits |
|
Post-Retirement
Benefits |
|
2016 |
|
2015 |
|
2016 |
|
2015 |
Weighted-average assumptions used to determine benefit obligations |
|
|
|
|
|
|
|
Discount rate |
4.38 |
% |
|
4.54 |
% |
|
3.64 |
% |
|
3.81 |
% |
Rate of compensation increase |
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
Weighted-average assumptions used to determine net periodic benefit cost |
|
|
|
|
|
|
|
Discount rate (1) |
4.54 |
|
|
4.12 |
|
|
3.81 |
|
|
3.73 |
|
Expected return on plan assets |
6.75 |
|
|
7.00 |
|
|
N/A |
|
|
N/A |
|
Rate of compensation increase |
N/A |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
N/A—Not Applicable |
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(1) |
The 2015 post-retirement benefit expense was remeasured as of September 30, 2015, for the purchase of life insurance contracts for participants due a death benefit. The discount rate was 3.72% from January 1, 2015 to September 30, 2015, and was changed to 3.77% for the period from September 30, 2015 to December 31, 2015.
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The following table shows the weighted-average assumptions used to determine the benefit obligation at December 31, 2016, and the net periodic benefit cost for the year then ended:
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|
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Pension Benefits |
|
Post-Retirement Benefits |
|
2016 |
|
2016 |
Weighted-average assumptions used to determine benefit obligations |
|
|
|
Discount rate |
4.49 |
% |
|
4.16 |
% |
Rate of compensation increase |
N/A |
|
|
N/A |
|
Weighted-average assumptions used to determine net periodic benefit cost |
|
|
|
Discount rate |
4.12 |
% |
|
3.57 |
% |
Expected return on plan assets |
6.00 |
|
|
N/A |
|
Rate of compensation increase |
N/A |
|
|
N/A |
|
N/A—Not Applicable |
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|
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| Schedule of changes in projected benefit obligation |
The following table reconciles the beginning and ending balances of the benefit obligation of the Plan and the post-retirement benefit plan with the amounts recognized in the consolidated balance sheets at December 31:
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Pension
Benefits
|
|
Post-Retirement
Benefits
|
(dollar amounts in thousands) |
2016 |
|
2015 |
|
2016 |
|
2015 |
Projected benefit obligation at beginning of measurement year |
$ |
754,714 |
|
|
$ |
799,594 |
|
|
$ |
8,025 |
|
|
$ |
15,963 |
|
Changes due to: |
|
|
|
|
|
|
|
Service cost |
4,100 |
|
|
1,830 |
|
|
— |
|
|
— |
|
Interest cost |
26,992 |
|
|
31,937 |
|
|
219 |
|
|
506 |
|
Benefits paid |
(18,306 |
) |
|
(17,246 |
) |
|
(1,915 |
) |
|
(2,211 |
) |
Settlements |
(21,684 |
) |
|
(27,976 |
) |
|
— |
|
|
(6,993 |
) |
Medicare subsidies |
— |
|
|
— |
|
|
— |
|
|
117 |
|
Actuarial assumptions and gains and losses |
(9,470 |
) |
|
(33,425 |
) |
|
963 |
|
|
643 |
|
Total changes |
(18,368 |
) |
|
(44,880 |
) |
|
(733 |
) |
|
(7,938 |
) |
Projected benefit obligation at end of measurement year |
$ |
736,346 |
|
|
$ |
754,714 |
|
|
$ |
7,292 |
|
|
$ |
8,025 |
|
|
| Schedule of changes in fair value of plan assets |
The following table reconciles the beginning and ending balances of the fair value of Plan assets at the December 31, 2016 and 2015 measurement dates:
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|
|
|
|
|
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Pension
Benefits
|
(dollar amounts in thousands) |
2016 |
|
2015 |
Fair value of plan assets at beginning of measurement year |
$ |
594,217 |
|
|
$ |
653,013 |
|
Changes due to: |
|
|
|
Actual return on plan assets |
39,895 |
|
|
(16,122 |
) |
Employer Contributions |
150,000 |
|
|
— |
|
Settlements |
(20,081 |
) |
|
(25,428 |
) |
Benefits paid |
(18,306 |
) |
|
(17,246 |
) |
Total changes |
151,508 |
|
|
(58,796 |
) |
Fair value of plan assets at end of measurement year |
$ |
745,725 |
|
|
$ |
594,217 |
|
|
| Schedule of net periodic benefit costs |
The following table shows the components of net periodic benefit costs recognized in the three years ended December 31, 2016:
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|
|
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Pension Benefits |
|
Post-Retirement Benefits |
(dollar amounts in thousands) |
2016 |
|
2015 |
|
2014 |
|
2016 |
|
2015 |
|
2014 |
Service cost |
$ |
4,100 |
|
|
$ |
1,830 |
|
|
$ |
1,740 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Interest cost |
26,992 |
|
|
31,937 |
|
|
32,398 |
|
|
219 |
|
|
506 |
|
|
856 |
|
Expected return on plan assets |
(40,895 |
) |
|
(44,175 |
) |
|
(45,783 |
) |
|
— |
|
|
— |
|
|
— |
|
Amortization of prior service credit |
— |
|
|
— |
|
|
— |
|
|
(1,968 |
) |
|
(1,968 |
) |
|
(1,609 |
) |
Amortization of (gain) / loss |
7,459 |
|
|
7,934 |
|
|
5,767 |
|
|
(288 |
) |
|
(401 |
) |
|
(571 |
) |
Settlements |
9,495 |
|
|
12,645 |
|
|
11,200 |
|
|
— |
|
|
(3,090 |
) |
|
— |
|
Benefit costs |
$ |
7,151 |
|
|
$ |
10,171 |
|
|
$ |
5,322 |
|
|
$ |
(2,037 |
) |
|
$ |
(4,953 |
) |
|
$ |
(1,324 |
) |
|
| Schedule of allocation of plan assets |
At December 31, 2016 and 2015, 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 mutual funds as follows:
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Fair Value |
(dollar amounts in thousands) |
2016 |
|
2015 |
Cash equivalents: |
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Federated-money market |
$ |
16,087 |
|
|
2 |
% |
|
$ |
15,590 |
|
|
3 |
% |
Fixed income: |
|
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|
|
|
|
|
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Corporate obligations |
212,967 |
|
|
28 |
|
|
205,081 |
|
|
34 |
|
U.S. Government Obligations |
157,764 |
|
|
21 |
|
|
64,456 |
|
|
11 |
|
Mutual funds-fixed income |
27,851 |
|
|
4 |
|
|
32,874 |
|
|
6 |
|
U.S. Government Agencies |
7,201 |
|
|
1 |
|
|
6,979 |
|
|
1 |
|
Equities: |
|
|
|
|
|
|
|
|
|
Mutual funds-equities |
134,832 |
|
|
18 |
|
|
136,026 |
|
|
23 |
|
Common stock |
144,754 |
|
|
19 |
|
|
120,046 |
|
|
20 |
|
Preferred stock |
4,778 |
|
|
1 |
|
|
— |
|
|
— |
|
Exchange Traded Funds |
28,101 |
|
|
4 |
|
|
6,530 |
|
|
1 |
|
Limited Partnerships |
11,390 |
|
|
2 |
|
|
6,635 |
|
|
1 |
|
Fair value of plan assets |
$ |
745,725 |
|
|
100 |
% |
|
$ |
594,217 |
|
|
100 |
% |
|
| Schedule of expected benefit payments |
At December 31, 2016, the following table shows when benefit payments were expected to be paid:
|
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|
|
|
|
|
|
|
(dollar amounts in thousands) |
Pension
Benefits
|
|
Post-
Retirement
Benefits
|
2017 |
$ |
46,199 |
|
|
$ |
923 |
|
2018 |
45,077 |
|
|
761 |
|
2019 |
43,720 |
|
|
684 |
|
2020 |
41,827 |
|
|
640 |
|
2021 |
41,528 |
|
|
606 |
|
2022 through 2026 |
205,278 |
|
|
2,482 |
|
|
| Schedule of amounts recognized in balance sheet |
The following table presents the amounts recognized in the Consolidated Balance Sheets at December 31, 2016 and 2015, for all defined benefit plans:
|
|
|
|
|
|
|
(dollar amounts in thousands) |
2016 |
|
2015 |
Noncurrent liabilities |
169,657 |
|
|
192,734 |
|
|
| Schedule of amounts recognized in OCI |
The following tables present the amounts recognized in OCI as of December 31, 2016, 2015, and 2014, and the changes in accumulated OCI for the years ended December 31, 2016, 2015, and 2014:
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|
|
|
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands) |
2016 |
|
2015 |
|
2014 |
Net actuarial loss |
$ |
(217,863 |
) |
|
$ |
(243,984 |
) |
|
$ |
(240,197 |
) |
Prior service cost |
11,958 |
|
|
13,237 |
|
|
14,517 |
|
Defined benefit pension plans |
$ |
(205,905 |
) |
|
$ |
(230,747 |
) |
|
$ |
(225,680 |
) |
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|
|
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|
2016 |
(dollar amounts in thousands) |
Pretax |
|
Tax (expense) Benefit |
|
After-tax |
Balance, beginning of year |
$ |
(354,997 |
) |
|
$ |
124,250 |
|
|
$ |
(230,747 |
) |
Net actuarial (loss) gain: |
|
|
|
|
|
Amounts arising during the year |
37,818 |
|
|
(13,236 |
) |
|
24,582 |
|
Amortization included in net periodic benefit costs |
2,368 |
|
|
(829 |
) |
|
1,539 |
|
Prior service cost: |
|
|
|
|
|
Amounts arising during the year |
— |
|
|
— |
|
|
— |
|
Amortization included in net periodic benefit costs |
(1,968 |
) |
|
689 |
|
|
(1,279 |
) |
Balance, end of year |
$ |
(316,779 |
) |
|
$ |
110,874 |
|
|
$ |
(205,905 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 |
(dollar amounts in thousands) |
Pretax |
|
Tax (expense) Benefit |
|
After-tax |
Balance, beginning of year |
$ |
(347,202 |
) |
|
$ |
121,522 |
|
|
$ |
(225,680 |
) |
Net actuarial (loss) gain: |
|
|
|
|
|
Amounts arising during the year |
(25,520 |
) |
|
8,931 |
|
|
(16,589 |
) |
Amortization included in net periodic benefit costs |
19,693 |
|
|
(6,892 |
) |
|
12,801 |
|
Prior service cost: |
|
|
|
|
|
Amounts arising during the year |
— |
|
|
— |
|
|
— |
|
Amortization included in net periodic benefit costs |
(1,968 |
) |
|
689 |
|
|
(1,279 |
) |
Balance, end of year |
$ |
(354,997 |
) |
|
$ |
124,250 |
|
|
$ |
(230,747 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
(dollar amounts in thousands) |
Pretax |
|
Tax (expense) Benefit |
|
After-tax |
Balance, beginning of year |
$ |
(240,345 |
) |
|
$ |
84,122 |
|
|
$ |
(156,223 |
) |
Net actuarial (loss) gain: |
|
|
|
|
|
Amounts arising during the year |
(133,085 |
) |
|
46,580 |
|
|
(86,505 |
) |
Amortization included in net periodic benefit costs |
19,056 |
|
|
(6,670 |
) |
|
12,386 |
|
Prior service cost: |
|
|
|
|
|
Amounts arising during the year |
8,781 |
|
|
(3,073 |
) |
|
5,708 |
|
Amortization included in net periodic benefit costs |
(1,609 |
) |
|
563 |
|
|
(1,046 |
) |
Balance, end of year |
$ |
(347,202 |
) |
|
$ |
121,522 |
|
|
$ |
(225,680 |
) |
|
| Defined contribution plan disclosures |
The following table shows the costs of providing the defined contribution plan:
|
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|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, |
(dollar amounts in thousands) |
2016 |
|
2015 |
|
2014 |
Defined contribution plan |
$ |
36,107 |
|
|
$ |
31,896 |
|
|
$ |
31,110 |
|
|
| Schedule of Huntington stock statistics for defined contribution plan |
The following table shows the number of shares, market value, and dividends received on shares of Huntington stock held by the defined contribution plan:
|
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|
|
|
|
|
|
|
|
December 31, |
(dollar amounts in thousands, except share amounts) |
2016 |
|
2015 |
Shares in Huntington common stock |
11,748,379 |
|
|
13,076,164 |
|
Market value of Huntington common stock |
$ |
162,245 |
|
|
$ |
144,622 |
|
Dividends received on shares of Huntington stock |
3,692 |
|
|
3,076 |
|
|