Employee Benefit Plans

3 Months Ended

Mar. 31, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

(8)    Employee Benefit Plans

The Company sponsors noncontributory qualified pension plans and post-retirement healthcare plans which provide certain cash payments and medical and dental benefits to covered retired employees and their beneficiaries and covered dependents. These plans were assumed as part of the acquisition of the Northern New England operations from Verizon. One pension plan and one post-retirement healthcare plan cover non-represented employees and both are frozen, therefore no new benefits are being earned by participants nor are new participants becoming eligible for benefits. Participants in the pension plan and the post-retirement healthcare plan covering represented employees continue to accrue benefits in accordance with the respective plan documents and contractual requirements in the collective bargaining agreements. Eligibility to participate in the plans is based on an employee’s age and years of service. The Company makes contributions to the pension plans in amounts sufficient to meet minimum ERISA funding requirements. Payments of benefits under the post-retirement healthcare plans are funded by the Company as benefits are paid.

Annually, the Company remeasures the net liabilities of its pension and other post-retirement healthcare benefits, in accordance with the Compensation—Retirement Benefits Topic of the ASC. As of December 31, 2011, these remeasurements were based on a weighted average discount rate of approximately 4.65%, as well as certain other valuation assumption modifications.

Components of the net periodic benefit cost related to the Company’s pension and post-retirement healthcare plans for the three months ended March 31, 2012, the 66 days ended March 31, 2011 and the 24 days ended January 24, 2011 are presented below (in thousands).

		000000000000000		000000000000000		000000000000000		000000000000000
	Three Months Ended March 31, 2012				Sixty-Six Days Ended March 31, 2011
	Qualified Pension		Post- retirement Healthcare		Qualified Pension		Post- retirement Healthcare
Service cost	$	4,096	$	6,784	$	2,118	$	2,873
Interest cost		3,662		6,182		2,437		3,209
Expected return on plan assets		(3,279)		(8)		(2,422)		(2)
Amortization of actuarial loss		517		1,682		—		—
Plan settlement		356		—		—		—
Net periodic benefit cost	$	5,352	$	14,640	$	2,133	$	6,080

		000000000000		000000000000
	Predecessor Company
	Twenty-Four Days  Ended January 24, 2011
	Qualified Pension		Post- retirement Healthcare
Service cost	$	849	$	1,167
Interest cost		934		1,252
Expected return on plan assets		(1,089)		(1)
Amortization of prior service cost		98		276
Amortization of actuarial loss		283		368
Net periodic benefit cost	$	1,075	$	3,062

The Company expects to contribute approximately $19.8 million to its qualified pension plans and $4.7 million to its post-retirement healthcare plans during the fiscal year 2012. The Company has contributed $5.7 million to its qualified pension plans and $0.6 million to its post-retirement healthcare plans during the first quarter of 2012 and expects to contribute approximately $14.1 million to its qualified pension plans and $4.1 million to its post-retirement healthcare plans during the remainder of fiscal year 2012. The Company's pension plan funding requirements are based on the Pension Protection Act of 2006 and subsequent funding relief passed by Congress and regulations published by the IRS. Contributions to the post-retirement healthcare plans are required as a result of the New Hampshire Merger Order.

For the three months ended March 31, 2012 and 2011, the actual return on the pension plan assets were gains of approximately 5.7% and 3.2%, respectively. Net periodic benefit cost for 2012 assumes a weighted average annualized expected return on plan assets of 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 qualified pension plans.