FairPoint Communications 2011 Annual Report Download - page 111
Download and view the complete annual report
Please find page 111 of the 2011 FairPoint 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.-
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 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118 -
119 -
120 -
121 -
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
 |
 |
Table of Contents
For the years ended December 31, 2011 and 2010, the actual return on the pension plan assets was approximately 1.6% and 11.2%, respectively. Net
periodic benefit cost for 2011 assumes a weighted average annualized expected return on plan assets of approximately 8.3%. For 2012, the weighted average
annualized expected return on plan assets is approximately 7.52%. Should the Company’s actual return on plan assets continue to be significantly lower than
the expected return assumption, the net periodic benefit cost may increase in future periods and the Company may be required to contribute additional funds to
its pension plans.
A 1% change in the medical trend rate assumed for post-retirement healthcare benefits at December 31, 2011 (Successor Company) would have the
following effects (in thousands):
1% increase in the medical trend rate:
Effect on total service cost and interest cost components $10,096
Effect on benefit obligation $134,067
1% decrease in the medical trend rate:
Effect on total service cost and interest cost components $(7,611)
Effect on benefit obligation $(101,149)
The impact of the Medicare Drug Act of 2003 subsidy on the post-retirement healthcare benefits at December 31, 2011 (Successor Company) is as
follows (in thousands):
Change in projected benefit obligation $32,603
Change in each component of net periodic cost:
Service cost $ (1,145)
Interest cost (1,170)
Amortization of loss 26
Curtailment gain (1)
Total change in net periodic cost $ (2,290)
Estimated future benefit payments
Estimated future employer contributions, benefit payments and Medicare prescription drug subsidies expected to offset the future post-retirement
healthcare benefit payments as of December 31, 2011 (Successor Company) are as follows (in thousands):
Expected employer contributions for 2012 $19,842 $5,458
Expected benefit payments:
2012 $3,618 $4,738
2013 14,657 5,739
2014 16,548 6,594
2015 5,174 7,900
2016 7,087 9,438
2017-2021 60,206 73,988
Expected subsidy:
2012 $25
2013 37
2014 55
2015 84
2016 121
2017-2021 1,767
105