Frontier Communications 2014 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2014 Frontier Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

historical experience, which increased our pension benefit obligation by $66 million and our
postretirement benefit obligation by $24 million.
Pension Benefits
The following tables set forth the pension plan’s projected benefit obligations, fair values of plan
assets and the pension benefit liability recognized on our consolidated balance sheets as of
December 31, 2014 and 2013 and the components of total periodic pension benefit cost for the years
ended December 31, 2014, 2013 and 2012:
($ in thousands) 2014 2013
Change in projected benefit obligation (PBO)
PBO at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,668,726 $1,944,731
PBO for plans of the Connecticut operations at contracted
discount rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342,667 —
Actuarial adjustment to PBO for plans of the Connecticut
operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,933 —
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,649 47,651
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,476 75,812
Actuarial (gain)/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,074 (180,709)
Benefits paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (110,237) (54,151)
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (164,608)
PBO at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,210,288 $1,668,726
Change in plan assets
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . $1,216,525 $1,253,666
Fair value of plan assets for the Connecticut operations as of
acquisition date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342,667 —
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,514 119,328
Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,238 62,290
Benefits paid. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (110,237) (54,151)
Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (164,608)
Fair value of plan assets at end of year. . . . . . . . . . . . . . . . . . . . . . . . $1,672,707 $1,216,525
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (537,581) $ (452,201)
Amounts recognized in the consolidated balance sheet
Pension and other postretirement benefits—current . . . . . . . . . . . . . $ (101,557) $ (100,205)
Pension and other postretirement benefits—noncurrent. . . . . . . . . . $ (436,024) $ (351,996)
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . $ 532,268 $ 411,432
F-35
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements