Frontier Communications 2010 Annual Report Download - page 95

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The amounts recognized as a component of accumulated comprehensive income for the years ended
December 31, 2010 and 2009 are as follows:
($ in thousands) 2010 2009 2010 2009
Pension Plan OPEB
Accumulated other comprehensive income at
beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $374,157 $376,086 $ 21,554 $ 8,045
Net actuarial gain (loss) recognized during year. . . . . . (27,393) (27,144) (4,919) (5,041)
Prior service (cost)/credit recognized during year. . . . . 199 255 8,158 7,751
Net actuarial loss (gain) occurring during year . . . . . . . 2,301 24,351 16,506 10,799
Prior service cost (credit) occurring during year. . . . . . — 609 (27,930) —
Net amount recognized in comprehensive income for
the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,893) (1,929) (8,185) 13,509
Accumulated other comprehensive income at end of
year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $349,264 $374,157 $ 13,369 $21,554
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 certain plans, we provide matching contributions.
Employer contributions were $14.9 million, $4.4 million and $5.0 million for 2010, 2009 and 2008,
respectively. The amount for 2010 includes employer contributions of $10.6 million for certain former
employees of the Acquired Business under three separate plans.
(19) Fair Value of Financial Instruments:
Fair value is defined under U.S. GAAP 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 U.S. GAAP must maximize the use of observable inputs and minimize the use
of unobservable inputs. In addition, U.S. GAAP 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