Frontier Communications 2011 Annual Report Download - page 97

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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
F-34
Postretirement Benefits Other Than Pensions—“OPEB”
The following tables set forth the OPEB plan’s benefit obligations, fair values of plan assets and the postretirement
benefit liability recognized on our consolidated balance sheets at December 31, 2011 and 2010 and the components of
net periodic postretirement benefit costs for the years ended December 31, 2011, 2010 and 2009.
($ in thousands) 2011 2010
Change in benefit obligation
Benefit obligation at beginning of year 478,576$ 189,290$
Benefit obligation for Acquired Business - 285,451
Revision to the benefit obligation for Acquired Business (125,445) -
Service cost 8,958 7,956
Interest cost 17,722 17,883
Plan participants' contributions 4,389 3,976
Actuarial loss 22,564 16,670
Benefits paid (15,168) (14,719)
Plan change - (27,931)
Benefit obligation at end of year 391,596$ 478,576$
Change in plan assets
Fair value of plan assets at beginning of year 6,240$ 8,028$
Actual return on plan assets 219 600
Plan participants' contributions 4,389 3,976
Employer contribution 9,421 8,355
Benefits paid (15,168) (14,719)
Fair value of plan assets at end of year 5,101$ 6,240$
Funded status (386,495)$ (472,336)$
Amounts recognized in the consolidated balance sheet
Current liabilities (9,117)$ (10,131)$
Pension and other postretirement benefits (377,378)$ (462,205)$
Accumulated other comprehensive loss 41,811$ 13,369$
($ in thousands) Expected
2012 2011 2010 2009
Components of net periodic postretirement benefit cost
Service cost 8,958$ 7,956$ 361$
Interest cost on projected benefit obligation 17,722 17,883 11,017
Expected return on plan assets (324) (436) (439)
Amortization of prior service cost/(credit) (10,010)$ (10,198) (8,157) (7,751)
Amortization of unrecognized loss 7,642 4,424 4,917 5,041
Net periodic postretirement benefit cost 20,582$ 22,163$ 8,229$