Retirement Plans

6 Months Ended

Jun. 30, 2011

Retirement Plans [Abstract]

Retirement Plans

(15)  Retirement Plans:

The following tables provide the components of net periodic benefit cost:

	Pension Benefits				Pension Benefits
		For the three months ended				For the six months ended
	June 30,				June 30,
		2011		2010		2011	2010
($ in thousands)
Components of net periodic pension benefit cost
Service cost	$	9,615	$	1,609	$	19,230	$           3,218
Interest cost on projected benefit obligation		21,172		12,381		42,344	24,762
Expected return on plan assets		(25,589)		(11,649)		(51,178)	(23,298)
Amortization of prior service cost /(credit)		(50)		(50)		(100)	(100)
Amortization of unrecognized loss		4,435		6,748		8,870	13,496
Net periodic pension benefit cost	$	9,583	$	9,039	$	19,166	$         18,078
	Postretirement Benefits				Postretirement Benefits
	Other Than Pensions (OPEB)				Other Than Pensions (OPEB)
		For the three months ended				For the six months ended
	June 30,					June 30,
		2011		2010		2011	2010
($ in thousands)
Components of net periodic postretirement benefit cost
Service cost	$	4,228	$	99	$	8,456	$              198
Interest cost on projected benefit obligation		6,328		2,629		12,656	5,258
Expected return on plan assets		(82)		(108)		(164)	(216)
Amortization of prior service cost/(credit)		(2,550)		(1,929)		(5,100)	(3,858)
Amortization of unrecognized loss		1,499		1,581		2,998	3,162
Net periodic postretirement benefit cost	$	9,423	$	2,272	$	18,846	$           4,544

During the first six months of 2011 and 2010, we capitalized $6.8 million and $3.3 million, respectively, of pension and OPEB expense into the cost of our capital expenditures, as the costs relate to our engineering and plant construction activities.  Based on current assumptions and plan asset values, we estimate that our 2011 pension and OPEB expenses will be between $70 million and $80 million before amounts capitalized into the cost of capital expenditures (they were $68.4 million in 2010 before amounts capitalized into the cost of capital expenditures, including the plan expenses of the Acquired Business for the second half of 2010).   We expect that we will make contributions to our pension plan of approximately $50 million in 2011 in cash or other assets, including cash payments of $10.6 million made through June 2011.

In connection with the completion of the Transaction on July 1, 2010, certain employees were transferred from various Verizon pension plans into 12 pension plans that were then merged with the Frontier Communications Pension Plan (the Plan) effective August 31, 2010.  Assets of $438.8 million were transferred into the Plan during 2010.  An additional $175.4 million represents a receivable of the Plan as of June 30, 2011, that will be settled by the transfer of assets by the end of 2011 or early in 2012.

The Company's pension plan assets have increased from $1,290.3 million at December 31, 2010 to $1,301.4 million at June 30, 2011, an increase of $11.1 million, or 1%.  This increase is a result of $56.8 million of positive investment returns and cash contributions of $10.6 million, less ongoing benefit payments of $56.3 million, during the first six months of 2011.