Frontier Communications 2007 Annual Report Download - page 92

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Postretirement Benefits Other Than Pensions—“OPEB”
The following table sets forth the plans’ benefit obligations, fair values of plan assets and the postretirement
benefit liability recognized on our balance sheets at December 31, 2007 and 2006 and net periodic postretirement
benefit costs for the years ended December 31, 2007, 2006 and 2005.
($ in thousands) 2007 2006
Change in benefit obligation
Benefit obligation at beginning of year ..................... $159,931 $ 160,922
Commonwealth plan as of date of acquisition ................ 996 —
Service cost ........................................... 533 664
Interest cost ........................................... 10,241 8,974
Plan participants’ contributions ........................... 3,370 1,558
Actuarial loss ......................................... 15,620 1,778
Benefits paid .......................................... (15,064) (13,965)
Plan change ........................................... (1,025) —
Benefit obligation at end of year .......................... $174,602 $ 159,931
Change in plan assets
Fair value of plan assets at beginning of year ................ $ 11,869 $ 11,424
Actual return on plan assets .............................. 815 445
Benefits paid .......................................... (11,695) (12,407)
Employer contribution .................................. 8,380 12,407
Fair value of plan assets at end of year ...................... $ 9,369 $ 11,869
Accrued benefit cost
Funded status ......................................... $(165,233) $(148,062)
Amounts recognized in the consolidated balance sheet
Current liabilities ...................................... $ (8,498) $ (7,238)
Other long-term liabilities ............................... $(156,735) $(140,824)
Accumulated other comprehensive income .................. $ 2,292 $ (13,703)
($ in thousands) Expected
2008 2007 2006 2005
Components of net periodic postretirement benefit cost
Service cost ............................................... $ 533 $ 664 $ 1,046
Interest cost on projected benefit obligation ...................... 10,241 8,974 12,055
Expected return on plan assets ................................. (578) (889) (1,248)
Amortization of prior service cost and transition obligation .......... $(7,735) (7,735) (7,589) (1,255)
Amortization of unrecognized loss ............................. 5,617 6,099 4,678 6,615
Net periodic postretirement benefit cost ......................... $ 8,560 $ 5,838 $17,213
F-42