Frontier Communications 2013 Annual Report Download - page 99

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The amounts recognized as a component of accumulated comprehensive loss for the years ended
December 31, 2013 and 2012 are as follows:
($ in thousands) 2013 2012 2013 2012
Pension Plan OPEB
Accumulated other comprehensive loss at beginning
of year ......................................... $ 697,874 $575,163 $ 74,264 $41,811
Net actuarial gain (loss) recognized during year ..... (36,930) (29,890) (7,846) (7,537)
Prior service (cost) credit recognized during year.... (8) 199 6,101 10,068
Net actuarial loss (gain) occurring during year ...... (205,341) 152,402 (67,289) 30,665
Prior service cost (credit) occurring during year ..... — — — (743)
Settlement costs recognized during year............. (44,163) — — —
Net amount recognized in comprehensive income
for the year . .................................... (286,442) 122,711 (69,034) 32,453
Accumulated other comprehensive loss at end
of year ......................................... $ 411,432 $697,874 $ 5,230 $74,264
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 $20.6 million, $23.0 million and $22.2 million for 2013, 2012 and 2011,
respectively.
(18) 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.
The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as
follows:
Input
Level Description of Input
Level 1 Observable inputs such as quoted prices in active markets for identical assets.
Level 2 Inputs other than quoted prices in active markets that are either directly or indirectly observable.
Level 3 Unobservable inputs in which little or no market data exists.
F-37
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements