Frontier Communications 2007 Annual Report Download - page 94

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The amounts in accumulated other comprehensive income that have not yet been recognized as components
of net periodic benefit cost at December 31, 2007 are as follows:
($ in thousands) Pension Plan OPEB
Net actuarial loss ....................................... $135,627 $ 49,154
Prior service cost ....................................... (1,351) (46,862)
Total ............................................ $134,276 $ 2,292
The amounts recognized as a component of accumulated comprehensive income for the years ended
December 31, 2007 and 2006 are as follows:
Pension Plan OPEB
($ in thousands) 2007 2006 2007 2006
Accumulated other comprehensive income at beginning of year .... $147,248 $199,652 $(13,703) $ —
Net actuarial loss recognized during year ...................... (7,312) (11,871) (6,099) (4,678)
Prior service cost recognized during year ...................... 255 255 7,735 7,589
Net actuarial loss (gain) occurring during year .................. (5,915) (62,800) 15,384 2,222
Prior service cost (credit) occurring during year ................. — (116) (1,025) —
Other adjustments ........................................ — 22,128 — (18,836)
Net amount recognized in comprehensive income for the year ..... (12,972) (52,404) 15,995 (13,703)
Accumulated other comprehensive income at end of year ......... $134,276 $147,248 $ 2,292 $(13,703)
401(k) Savings Plans
We sponsor employee retirement savings plans under section 401(k) of the Internal Revenue Code. The
plans cover substantially all full-time employees. Under the plans, we provide matching contributions and also
provide certain profit-sharing contributions to certain employees upon the attainment of pre-established financial
criteria. Employer contributions were $4.9 million, $4.7 million and $6.7 million for 2007, 2006 and 2005,
respectively. The amount for 2007 includes employer contributions of $0.4 million for CTE employees under a
separate Commonwealth plan. Also, effective December 31, 2007, the Commonwealth Builder 401(k) Plan was
merged into the Citizens 401(k) Savings Plan.
(24) COMMITMENTS AND CONTINGENCIES:
Ronald A. Katz Technology Licensing LP, filed suit against us for patent infringement on June 8, 2007 in
the U.S. District Court for the District of Delaware. Katz Technology alleges that, by operating automated
telephone systems, including customer service systems, that allow our customers to utilize telephone calling
cards, order internet, DSL, and dial-up services, and perform a variety of account related tasks such as billing and
payments, we have infringed thirteen of Katz Technology’s patents and continue to infringe three of Katz
Technology’s patents. Katz Technology seeks unspecified damages resulting from our alleged infringement, as
well as a permanent injunction enjoining us from continuing the alleged infringement. Katz Technology
subsequently filed a tag-along notice with the Judicial Panel on Multi-District Litigation, notifying them of this
action and its relatedness to In re Katz Interactive Dial Processing Patent Litigation (MDL No. 1816), pending in
the Central District of California before Judge R. Gary Klausner. The Judicial Panel on Multi-District Litigation
has transferred the case to the Central District of California. Discovery in the case has commenced. In January
2008, we received notice of the accused services and 40 asserted claims from Katz Technology. We intend to
vigorously defend against this lawsuit.
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