Frontier Communications 2009 Annual Report Download - page 98

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The amounts recognized as a component of accumulated comprehensive income for the years ended
December 31, 2009 and 2008 are as follows:
($ in thousands) 2009 2008 2009 2008
Pension Plan OPEB
Accumulated other comprehensive income at
beginning of year . . ............................... $376,086 $134,276 $ 8,045 $ 2,292
Net actuarial gain (loss) recognized during year . . . .... (27,144) (6,855) (5,041) (5,946)
Prior service (cost)/credit recognized during year . . .... 255 255 7,751 7,751
Net actuarial loss (gain) occurring during year ........ 24,351 248,410 10,799 4,043
Prior service cost (credit) occurring during year . . . .... 609 — — (95)
Net amount recognized in comprehensive income for
the year . . ........................................ (1,929) 241,810 13,509 5,753
Accumulated other comprehensive income at end of
year .............................................. $374,157 $376,086 $21,554 $ 8,045
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 $4.4 million, $5.0 million and $4.9 million for 2009, 2008 and
2007, 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 Frontier 401(k) Savings Plan.
(20) Fair Value of Financial Instruments:
In September 2006, the FASB issued ASC Topic 820 (formerly SFAS No. 157, “Fair Value
Measurements”), which establishes a framework for measuring fair value in accordance with generally
accepted accounting principles in the United States and expands disclosure requirements about fair value
measurements. ASC Topic 820 was effective for financial statements issued for fiscal years beginning after
November 15, 2007. We adopted ASC Topic 820 effective January 1, 2008, for all financial assets and
financial liabilities, as required.
Fair value is defined under ASC Topic 820 as the exit price associated with the sale of an asset or transfer
of a liability in an orderly transaction between market participants at the measurement date. Valuation
techniques used to measure fair value under ASC Topic 820 must maximize the use of observable inputs and
minimize the use of unobservable inputs. In addition, ASC Topic 820 establishes a three-tier fair value
hierarchy, which prioritizes the inputs used in measuring fair value.
F-36
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements