Retirement Plans

3 Months Ended

Mar. 31, 2012

Retirement Plans [Abstract]

Retirement Plans

(16) Retirement Plans:

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

	Pension Benefits
		For the three months ended
					March 31,
		2012				2011
($ in thousands)
Components of net periodic pension benefit cost
Service cost		$	10,492			$	9,615
Interest cost on projected benefit obligation			19,658				21,172
Expected return on plan assets			(24,089	)			(25,589	)
Amortization of prior service cost /(credit)			(50	)			(50	)
Amortization of unrecognized loss			7,787				4,435
Net periodic pension benefit cost		$	13,798			$	9,583
	Postretirement Benefits
	Other Than Pensions (OPEB)
		For the three months ended
		March 31,
			2012				2011
($ in thousands)
Components of net periodic postretirement benefit cost
Service cost		$	2,555			$	4,228
Interest cost on projected benefit obligation			4,460				6,328
Expected return on plan assets			(55	)			(82	)
Amortization of prior service cost/(credit)			(2,503	)			(2,550	)
Amortization of unrecognized loss			1,911				1,499
Net periodic postretirement benefit cost		$	6,368			$	9,423

During the first three months of 2012 and 2011, we capitalized $4.2 million and $3.1 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 2012 pension and OPEB expenses will be between $75 million and $85 million before amounts capitalized into the cost of capital expenditures (they were $58.3 million in 2011 before amounts capitalized into the cost of capital expenditures).  We expect to make net contributions to our pension plan of approximately $60 million in 2012. No contributions were made to our pension plan during the first three months of 2012.

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 the second half of 2010 and assets of $106.9 million were transferred into the Plan in August 2011.  Additionally, $18.7 million of assets were transferred into the Plan during the first quarter of 2012.  The Plan has a receivable of $47.5 million as of March 31, 2012 that will be settled by the transfer of assets in 2012.

The Plan's assets have increased from $1,258.0 million at December 31, 2011 to $1,315.5 million at March 31, 2012, an increase of $57.5 million, or 5%.  This increase is a result of $83.5 million of positive investment returns less benefit payments of $26.0 million during the first three months of 2012.