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F-36
CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The impact of the balance of accumulated actuarial gains and losses are recognized in the computation of
pension cost only to the extent this balance exceeds 10% of the greater of the plan’s projected benefit obligation or
market value of plan assets. If this occurs, that portion of gain or loss that is in excess of 10% is amortized over the
estimated future service period of plan participants as a component of pension cost. The level of amortization is
affected each year by the change in actuarial gains and losses and could potentially be eliminated if the gain/loss
activity reduces the net accumulated gain/loss balance to a level below the 10% threshold.
Pension Plan
The following tables set forth the plan’s benefit obligations and fair values of plan assets as of December 31,
2005 and 2004 and net periodic benefit cost for the years ended December 31, 2005, 2004 and 2003.
($ in thousands) 2005 2004
Change in benefit obligation
Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . $ 799,458 $ 761,683
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,117 5,748
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,416 46,468
Actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,750 44,350
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58,139) (58,791)
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . $ 842,602 $ 799,458
Change in plan assets
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . $ 761,168 $ 719,622
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,196 80,337
Employer contribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 20,000
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58,139) (58,791)
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . $ 762,225 $ 761,168
(Accrued)/Prepaid benefit cost
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (80,377) $ (38,290)
Unrecognized prior service cost . . . . . . . . . . . . . . . . . . . . . . . . . (1,745) (1,988)
Unrecognized net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . 223,525 183,481
Prepaid benefit cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 141,403 $ 143,203
Amounts recognized in the statement of financial position
Accrued benefit liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (58,250) $ (20,034)
Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . 199,653 163,237
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 141,403 $ 143,203
($ in thousands) 2005 2004 2003
Components of net periodic benefit cost
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,117 $ 5,748 $ 6,479
Interest cost on projected benefit obligation . . . . . . . 46,416 46,468 49,103
Return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . (60,371 ) (57,203 ) (53,999 )
Amortization of prior service cost and
unrecognized net obligation . . . . . . . . . . . . . . . . . (244 ) (244 ) (172 )
Amortization of unrecognized loss . . . . . . . . . . . . . . 9,882 8,806 11,026
Net periodic benefit cost . . . . . . . . . . . . . . . . . . . . . . . 1,800 3,575 12,437
Curtailment/settlement charge . . . . . . . . . . . . . . . . . . — — 6,585
Total periodic benefit cost . . . . . . . . . . . . . . . . . . . . . $ 1,800 $ 3,575 $ 19,022