Frontier Communications 2014 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 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

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 as of December 31,
2014 and 2013 and the components of net periodic postretirement benefit cost for the years ended
December 31, 2014, 2013 and 2012.
($ in thousands) 2014 2013
Change in benefit obligation
Benefit obligation at beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 385,623 $ 438,550
Benefit obligation for the Connecticut operations as of acquisition
date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210,732 —
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,799 12,533
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,739 17,241
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,010 4,293
Actuarial (gain)/loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,997 (67,547)
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,310) (19,447)
Plan change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,627) —
Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 726,963 $ 385,623
Change in plan assets
Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . . . $ 2,307 $ 5,055
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (104) (122)
Plan participants’ contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,010 4,293
Employer contribution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,170 12,528
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (19,310) (19,447)
Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . $ 73 $ 2,307
Funded status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(726,890) $(383,316)
Amounts recognized in the consolidated balance sheet
Pension and other postretirement benefits—current . . . . . . . . . . . . . . . $ (22,237) $ (11,508)
Pension and other postretirement benefits—noncurrent. . . . . . . . . . . . $(704,653) $(371,808)
Accumulated other comprehensive loss. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 118,750 $ 5,230
($ in thousands)
Expected in
2015 2014 2013 2012
Components of net periodic postretirement benefit
cost
Service cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,799 $12,533 $ 10,812
Interest cost on projected benefit obligation . . . . . . . . . . . . 21,739 17,241 17,842
Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . (50) (136) (172)
Amortization of prior service cost /(credit). . . . . . . . . . . . . . $ (4,205) (3,911) (6,101) (10,068)
Amortization of unrecognized loss . . . . . . . . . . . . . . . . . . . . . 10,819 2,916 7,846 7,537
Net periodic postretirement benefit cost . . . . . . . . . . . . . . . $31,493 $31,383 $ 25,951
F-38
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements