Fair Value Of Financial Instruments

12 Months Ended

Dec. 31, 2015

Fair Value Of Financial Instruments [Abstract]

(17)Fair Value of Financial Instruments:

Fair value is defined under GAAP as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value under GAAP must maximize the use of observable inputs and minimize the use of unobservable inputs. In addition, GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.

The three input levels in the hierarchy of fair value measurements are defined by the FASB generally as follows:

Input Level Description of Input

Level 1 Observable inputs such as quoted prices in active markets for identical assets.

Level 2 Inputs other than quoted prices in active markets that are either directly or indirectly observable.

Level 3 Unobservable inputs in which little or no market data exists.

The following tables represent Frontier’s pension plan assets measured at fair value on a recurring basis as of December 31, 2015 and 2014:



($ in millions)	Fair Value Measurements at December 31, 2015
	Total		Level 1		Level 2		Level 3
Cash and Cash Equivalents	$	23	$	23	$	-	$	-
U.S. Government Obligations		32		-		32		-
Corporate and Other Obligations		315		-		315		-
Common Stock		178		178		-		-
Common/Collective Trusts		894		-		894		-
Interest in Registered Investment Companies		49		49		-		-
Interest in Limited Partnerships and
Limited Liability Companies		92		-		-		92
Total investments at fair value	$	1,583	$	250	$	1,241	$	92
Interest and Dividend Receivable		4
Due from Broker for Securities Sold		21
Receivable Associated with Insurance Contract		7
Due to Broker for Securities Purchased		(43)
Total Plan Assets, at Fair Value	$	1,572



($ in millions)	Fair Value Measurements at December 31, 2014
	Total		Level 1		Level 2		Level 3
Cash and Cash Equivalents	$	32	$	32	$	-	$	-
U.S. Government Obligations		32		-		32		-
Corporate and Other Obligations		283		-		283		-
Common Stock		170		170		-		-
Common/Collective Trusts		959		-		959		-
Interest in Registered Investment Companies		66		66		-		-
Interest in Limited Partnerships and
Limited Liability Companies		103		-		-		103
Insurance Contracts		1		-		1		-
Other		2		-		2		-
Total investments at fair value	$	1,648	$	268	$	1,277	$	103
Receivable for plan assets of the
Connecticut operations		34
Interest and Dividend Receivable		4
Due from Broker for Securities Sold		32
Receivable Associated with Insurance Contract		8
Due to Broker for Securities Purchased		(53)
Total Plan Assets, at Fair Value	$	1,673

There have been no reclassifications of investments between Levels 1, 2 or 3 assets during the years ended December 31, 2015 or 2014.

The tables below set forth a summary of changes in the fair value of the Plan’s Level 3 assets for the years ended December 31, 2015 and 2014:



($ in millions)	2015
	Interest in Limited Partnerships and Limited Liability Companies
Balance, beginning of year	$	103
Realized gains		8
Unrealized losses		(11)
Sales and distributions		(8)
Balance, end of year	$	92



($ in millions)	2014
	Interest in Limited Partnerships and Limited Liability Companies		Commingled Funds
Balance, beginning of year	$	129	$	33
Realized gains		12		5
Unrealized losses		(5)		(5)
Sales and distributions		(33)		(33)
Balance, end of year	$	103	$	-

The following table provides further information regarding the redemption of the Plan’s Level 3 investments as of December 31, 2015:

($ in millions)

Fair Value

Redemption Frequency

Redemption Notice Period

Liquidation Period

Interest in Limited Partnerships and Limited

Liability Companies

MS IFHF SVP LP Cayman (a)