FairPoint Communications 2009 Annual Report Download - page 143

Table of Contents
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


Other assets represent cash and cash equivalents held in a short-term investment fund. Due to limitations on the liquidity of assets within this fund,
the Company has classified these assets within Level 3 of the Fair Value hierarchy.
Funds receivable from Verizon represent the estimated pending transfer of funds from Verizon following final actuarial settlement. Concurrent
with the closing of the Merger, Verizon transferred 80% of the value of the pension plans to the Company. An additional transfer was made subsequent
to December 31, 2009 from Verizon's defined benefit plans' trusts. A disputed amount is pending final validation by a third-party actuary of the census
information and related actuarial calculations in accordance with relevant statutory and regulatory guidelines and the Employee Matters Agreement. The
assets transferred from the Verizon benefit plans' trusts to the Company's benefit plans' trusts were invested by the plans' trustee in various equity and
fixed income securities. The final asset transfer included investment return or loss on the final transfer amount from March 31, 2008 through the date of
the final asset transfer equivalent to the rate of return in the Verizon pension trusts.
Net periodic benefit cost
The net periodic benefit (income) cost related to the Company's pension plans was $0.9 million for the year ended December 31, 2008, of which
($0.1) million related to net periodic benefit income for the three months ended March 31, 2008. The net periodic benefit cost related to the Company's
post-retirement healthcare plans was $41.2 million for the year ended December 31, 2008, of which $22.5 million related to net periodic benefit cost for
the three months ended March 31, 2008.
The structure of Verizon's benefit plans did not provide for the separate determination of certain disclosures for the Verizon Northern New
England business for periods prior to the Merger. The net periodic benefit cost related to the Verizon Northern New England business pension plans
was $1 million for the year ended December 31, 2007. The net periodic benefit cost related to the Verizon Northern New England business post-
retirement healthcare plans was $90 million for the year ended December 31, 2007.
Components of the net periodic benefit (income) cost related to the Company's pension and post-retirement healthcare plans for the year ended
December 31, 2009 and the nine months ended December 31, 2008 are presented below.
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  
 


 


 


 


 
Service cost $ 10,923 $ 6,741 $ 13,020 $ 7,018
Interest cost 13,269 9,383 13,889 8,196
Expected return on plan
assets (20,575) (15,745) — —
Amortization of prior
service cost 1,452 632 4,293 3,219
Amortization of actuarial
(gain) loss 813 — 3,487 261
Settlement (gain) loss 18,420 — — —
Net periodic benefit cost $ 24,302 $ 1,011 $ 34,689 $ 18,694