Frontier Communications 2004 Annual Report Download - page 85

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
F-41
Postretirement Benefits Other Than Pensions
The following table sets forth the plan's benefit obligations, fair values of plan assets and the postretirement benefit
liability recognized on our balance sheets at December 31, 2004 and 2003 and net periodic postretirement benefit costs
for the years ended December 31, 2004, 2003 and 2002:
The plan’s weighted average asset allocations at December 31, 2004 and 2003 by asset category are as follows:
2004 2003
Asset category:
Equity securities 0% 16%
Debt securities 100% 63%
Cash and other 0% 21%
Total 100% 100%
($ in thousands) 2004 2003
Change in benefit obligation
Benefit obligation at beginning of year 223,337$ 210,683$
Service cost 1,128 1,387
Interest cost 12,698 13,606
Plan participants' contributions 4,118 3,723
Actuarial (gain) loss (1,706) 16,835
Amendments (3,045) -
Benefits paid (19,150) (22,897)
Benefit obligation at end of yea
r
217,380$ 223,337$
Change in plan assets
Fair value of plan assets at beginning of year 27,493$ 27,050$
Actual return on plan assets 987 1,624
Benefits paid (15,032) (19,173)
Employer contribution 1,678 19,568
Acquisitions/Divestitures - (1,576)
Fair value of plan assets at end of yea
r
15,126$ 27,493$
Accrued benefit cost
Funded status (202,254)$ (195,844)$
Unrecognized transition obligation - 211
Unrecognized prior service cost (2,617) 13
Unrecognized loss 44,319 49,982
Accrued benefit cos
t
(160,552)$ (145,638)$
($ in thousands) 2004 2003 2002
Components of net periodic postretirement benefit cost
Service cost 1,128$ 1,387$ 1,350$
Interest cost on projected benefit obligation 12,698 13,606 13,753
Return on plan assets (2,268) (2,133) (2,438)
Amortization of prior service cost and transition obligation (204) 26 26
Amortization of unrecognized (gain)/loss 5,238 3,985 2,383
Net periodic postretirement benefit cos
t
16,592$ 16,871$ 15,074$