Frontier Communications 2006 Annual Report Download - page 89

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The plan’s weighted average asset allocations at December 31, 2006 and 2005 by asset category are as
follows:
2006 2005
Asset category:
Equity securities ............................. 53% 50%
Debt securities ............................... 34% 34%
Alternative investments ........................ 12% 13%
Cash and other ............................... 1% 3%
Total .................................. 100% 100%
The plan’s expected benefit payments by year are as follows:
Year Amount
($ in thousands)
2007 ............................................... $ 52,441
2008 ............................................... 53,863
2009 ............................................... 57,319
2010 ............................................... 58,418
2011 ............................................... 59,892
2012 - 2016 .......................................... 320,383
Total ............................................... $ 602,316
Our required contribution to the plan in 2007 is $0.
The accumulated benefit obligation for the plan was $762,085,000 and $820,475,000 at December 31, 2006
and 2005, respectively.
Assumptions used in the computation of annual pension costs and valuation of the year-end obligations were
as follows:
2006 2005
Discount rate—used at year end to value obligation .................. 6.00% 5.625%
Discount rate—used to compute annual cost ........................ 5.625% 6.00%
Expected long-term rate of return on plan assets ..................... 8.25% 8.25%
Rate of increase in compensation levels ............................ 4.00% 4.00%
Postretirement Benefits Other Than Pensions—“OPEB”
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, 2006 and 2005 and net periodic postretirement
benefit costs for the years ended December 31, 2006, 2005 and 2004.
In 2005, we approved changes to certain retiree medical plans. The plan changes (reflected as amendments
in the table below) and the related impact are included in the accumulated postretirement benefit obligation
(APBO) as of December 31, 2005. The plan changes resulted in a reduction in the APBO of $59,798,000 which
will be amortized as a reduction of retiree medical expense over the average remaining service life.
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