Frontier Communications 2006 Annual Report Download - page 88

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Pension Plan
The following tables set forth the plan’s projected benefit obligations and fair values of plan assets as of
December 31, 2006 and 2005 and net periodic benefit cost for the years ended December 31, 2006, 2005 and 2004:
($ in thousands) 2006 2005
Change in projected benefit obligation
Projected benefit obligation at beginning of year ........... $ 842,602 $ 799,458
Service cost ........................................ 6,811 6,117
Interest cost ........................................ 45,215 46,416
Actuarial (gain) loss ................................. (46,597) 48,750
Benefits paid ....................................... (69,005) (58,139)
Special termination benefits and other of (116) ............ 1,693 —
Projected benefit obligation at end of year ................ $ 780,719 $ 842,602
Change in plan assets
Fair value of plan assets at beginning of year .............. $ 762,225 $ 761,168
Actual return on plan assets ........................... 76,962 59,196
Employer contribution ................................ — —
Benefits paid ....................................... (69,005) (58,139)
Fair value of plan assets at end of year ................... $ 770,182 $ 762,225
(Accrued)/Prepaid benefit cost
Funded status ....................................... $ (10,537) $ (80,377)
Unrecognized prior service cost ........................ (1,745)
Unrecognized net actuarial loss ........................ 223,525
Prepaid benefit cost .................................. $ 141,403
Amounts recognized in the consolidated balance sheet
Other long-term liabilities ............................. $ (10,537) $ (58,250)
Accumulated other comprehensive income ............... $ 147,248 $ 199,653
($ in thousands)
Expected
2007 2006 2005 2004
Components of net periodic benefit cost
Service cost ........................ $ 6,811 $ 6,117 $ 5,748
Interest cost on projected benefit
obligation ....................... 45,215 46,416 46,468
Expected return on plan assets ......... (60,759) (60,371) (57,203)
Amortization of prior service cost and
unrecognized net obligation ......... $ (255) (255) (244) (244)
Amortization of unrecognized loss ...... 6,585 11,871 9,882 8,806
Net periodic benefit cost .............. 2,883 1,800 3,575
Special termination charge ............ 1,809 — —
Total periodic benefit cost ............ $ 4,692 $ 1,800 $ 3,575
F-40