Frontier Communications 2007 Annual Report Download - page 90

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Pension Benefits
The following tables set forth the plan’s projected benefit obligations and fair values of plan assets as of
December 31, 2007 and 2006 and net periodic benefit cost for the years ended December 31, 2007, 2006 and 2005:
($ in thousands) 2007 2006
Change in projected benefit obligation
Projected benefit obligation at beginning of year ............... $780,719 $842,602
Commonwealth plan as of acquisition date ................... 107,047 —
Service cost ............................................ 9,175 6,811
Interest cost ............................................ 50,948 45,215
Actuarial gain .......................................... (26,524) (46,597)
Benefits paid ........................................... (87,049) (69,005)
Curtailment ............................................ (14,379) —
Special termination benefits ............................... 467 1,809
Plan change ............................................ — (116)
Projected benefit obligation at end of year .................... $820,404 $780,719
Change in plan assets
Fair value of plan assets at beginning of year .................. $770,182 $762,225
Commonwealth plan as of acquisition date ................... 92,175 —
Actual return on plan assets ............................... 46,857 76,962
Benefits paid ........................................... (87,049) (69,005)
Fair value of plan assets at end of year ....................... $822,165 $770,182
(Accrued)/Prepaid benefit cost
Funded status ........................................... $ 1,761 $ (10,537)
Amounts recognized in the consolidated balance sheet
Other assets/(other long-term liabilities) ...................... $ 1,761 $ (10,537)
Accumulated other comprehensive income ................... $134,276 $147,248
($ in thousands) Expected
2008 2007 2006 2005
Components of net periodic benefit cost
Service cost ......................... $ 9,175 $ 6,811 $ 6,117
Interest cost on projected benefit
obligation ......................... 50,948 45,215 46,416
Expected return on plan assets ........... (67,467) (60,759) (60,371)
Amortization of prior service cost and
unrecognized net obligation ........... $ (255) (255) (255) (244)
Amortization of unrecognized loss ....... 5,075 7,313 11,871 9,882
Net periodic benefit cost/(income) ....... (286) 2,883 1,800
Plan curtailment gain .................. (14,379) — —
Special termination charge ............. 467 1,809 —
Total periodic benefit cost/(income) ...... $(14,198) $ 4,692 $ 1,800
F-40