FairPoint Communications 2010 Annual Report Download - page 104
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Table of Contents
Agreement, dated January 15, 2007 between Verizon and the Company (the “Employee Matters Agreement”). The disputed amount was not included in the
Company’s pension plan assets at December 31, 2009. By letter dated July 29, 2010, the third-party actuary appointed to perform the review and validation
determined that an additional $2.5 million, adjusted for gains or losses since the date of the original transfer, should be transferred from Verizon’s defined
benefit plans’ trusts to the Company’s represented employees pension plan trust. This transfer was received in the amount of $2.4 million on September 1,
2010, at which time the Company’s net pension obligation was decreased by this amount.
The plans’ portfolio strategy emphasizes a long-term equity orientation, significant global diversification and financial and operating risk controls. The
plans’ diversification seeks to minimize the concentration of risk. Assets are allocated according to long-term risk and return estimates. Both active and
passive management approaches are used depending on perceived market efficiencies and various other factors.
The fair values for the pension plans by asset category at December 31, 2010 are as follows:
Cash and cash equivalents $ 5,111 $ 5,111 $ — $ —
Equity securities 85,886 85,886 — —
Fixed income securities 63,546 21,823 41,723 —
Hedge funds 21,931 — — 21,931
Total $176,474 $112,820 $ 41,723 $ 21,931
The fair values for the pension plans by asset category at December 31, 2009 were as follows:
Cash and cash equivalents $ 18,972 $ 18,972 $ — $ —
Equity securities 41,569 41,569 — —
Fixed income securities 52,045 — 52,045 —
Hedge funds 14,202 — — 14,202
Funds receivable from Verizon 33,553 — — 33,553
Other assets 2,263 — — 2,263
Total $ 162,604 $ 60,541 $ 52,045 $ 50,018
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