FairPoint Communications 2011 Annual Report Download - page 105
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Table of Contents
Fair value of plan assets:
Beginning fair value of plan assets $215 $214 $ —
Actual return on plan assets (8) 1 (1)
Plan settlements — — —
Employer contributions 2,601 182 1,735
Benefits paid (1,847) (182) (1,520)
Ending fair value of plan assets 961 215 214
Projected benefit obligation:
Beginning projected benefit obligation $333,301 $344,901 $260,330
Service cost 18,944 1,167 14,321
Interest cost 19,859 1,252 16,347
Plan curtailments (1,812) — —
Plan settlements — — —
Benefits paid (1,847) (182) (1,520)
Actuarial loss (gain) 164,736 (13,837) 55,423
Ending projected benefit obligation 533,181 333,301 344,901
Plan assets less than projected benefit obligation $(532,220) $(333,086) $(344,687)
Accumulated benefit obligation $N/A $N/A N/A
Amounts recognized in the consolidated balance sheets:
Non-current assets $ — $ — $ —
Current liabilities (3,777) (2,305) (2,515)
Non-current liabilities (528,443) (330,781) (342,172)
Net amount recognized $(532,220) $(333,086) $(344,687)
Amounts recognized in accumulated other comprehensive income (loss):
Prior service cost $ — $(29,150) $(29,426)
Net actuarial loss (161,718) (113,455) (127,660)
Net amount recognized in accumulated other comprehensive loss $(161,718) $(142,605) $(157,086)
The determination of the net liability and the net periodic benefit cost recognized for the qualified pension plans and post-retirement healthcare plans by
the Company are, in part, based on assumptions made by management. These assumptions include, among others, the discount rate applied to estimated
future cash flows of the plans, the expected return on assets held by the plan, certain demographic characteristics of the participants such as expected
retirement and mortality dates and future inflation in healthcare costs. Certain assumptions, which include, among others, assumptions regarding future
benefit increases and increases in the amount of post-retirement healthcare expenditures to be paid by the Company, reflect the Company’s past practice of
providing such increases to participants and therefore are considered a substantive plan under the Compensation-Retirement Benefits Topic of the ASC.
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