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Comprehensive Income (Loss)
 9 Months Ended
Sep. 30, 2017
Comprehensive Income (Loss) [Abstract]  
Comprehensive Income (Loss)



(13) Comprehensive Income (Loss):

Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting shareholders’ investment and pension/postretirement benefit (OPEB) liabilities that, under GAAP, are excluded from net loss.



The components of accumulated other comprehensive loss, net of tax at September 30, 2017 and 2016, and changes for the nine months then ended, are as follows:





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

Pension Costs

 

OPEB Costs

 

Deferred Taxes on Pension and OPEB Costs

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2017

 

$

 (647)

 

$

 29 

 

$

 231 

 

$

 (387)

Other comprehensive income (loss)
before reclassifications

 

 

 (34)

 

 

 1 

 

 

 12 

 

 

 (21)

Amounts reclassified from accumulated other comprehensive loss to net loss

 

 

 23 

 

 

 (7)

 

 

 (5)

 

 

 11 

Recognition of net actuarial loss for pension settlement costs in net loss

 

 

 77 

 

 

 -

 

 

 (29)

 

 

 48 

Net current-period other comprehensive income (loss)

 

 

 66 

 

 

 (6)

 

 

 (22)

 

 

 38 

Balance at September 30, 2017

 

$

 (581)

 

$

 23 

 

$

 209 

 

$

 (349)





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

($ in millions)

 

Pension Costs

 

OPEB Costs

 

Deferred Taxes on Pension and OPEB Costs

 

Total



 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2016

 

$

 (584)

 

$

 20 

 

$

 211 

 

$

 (353)

Other comprehensive income (loss)
before reclassifications

 

 

 (105)

 

 

 -

 

 

 40 

 

 

 (65)

Amounts reclassified from accumulated other comprehensive loss

 

 

 30 

 

 

 (6)

 

 

 (9)

 

 

 15 

Net current-period other comprehensive income (loss)

 

 

 (75)

 

 

 (6)

 

 

 31 

 

 

 (50)

Balance at September 30, 2016

 

$

 (659)

 

$

 14 

 

$

 242 

 

$

 (403)



As a result of the pension settlement accounting discussed in Note 14, the Frontier Communications Pension Plan (the Pension Plan) was remeasured as of September 30, 2017. This remeasurement resulted in a decrease in the discount rate from 4.10% at March 31, 2017 to 3.8% at June 30, 2017 and September 30, 2017, in addition to census data changes resulting in the recording of a loss on remeasurement to Other comprehensive income (loss) during each of the quarters. For the nine months ended September 30, 2017, Frontier recorded a net loss on remeasurement of $32 million, to Other comprehensive income (loss).  Additionally, Frontier recorded pension settlement charges  totaling $77 million  ($48 million net of tax) to Other comprehensive income (loss). Refer to Note 14 for details about the settlement accounting.

The significant items reclassified from each component of accumulated other comprehensive loss for the three and nine months ended September 30, 2017 and 2016 are as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Amount Reclassified from

 

 

($ in millions)

 

Accumulated Other Comprehensive Loss (a)

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Details about Accumulated Other
Comprehensive Loss Components

 

For the three months ended September 30,

 

For the nine months ended September 30,

 

Affected Line Item in the Statement Where Net Income (Loss) is Presented



 

2017

 

2016

 

2017

 

2016

 

 

Amortization of Pension Cost Items (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial gains (losses)

 

$

 (6)

 

$

 (9)

 

$

 (23)

 

$

 (30)

 

 

Pension settlement costs

 

 

 (15)

 

 

 -

 

 

 (77)

 

 

 -

 

 



 

 

 (21)

 

 

 (9)

 

 

 (100)

 

 

 (30)

 

Income (loss) before income taxes

Tax impact

 

 

 8 

 

 

 3 

 

 

 37 

 

 

 11 

 

Income tax (expense) benefit



 

$

 (13)

 

$

 (6)

 

$

 (63)

 

$

 (19)

 

Net income (loss)



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of OPEB Cost Items (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior-service costs

 

$

 2 

 

$

 2 

 

$

 7 

 

$

 7 

 

 

Actuarial gains (losses)

 

 

 1 

 

 

 -

 

 

 -

 

 

 (1)

 

 



 

 

 3 

 

 

 2 

 

 

 7 

 

 

 6 

 

Income (loss) before income taxes

Tax impact

 

 

 (2)

 

 

 -

 

 

 (3)

 

 

 (2)

 

Income tax (expense) benefit



 

$

 1 

 

$

 2 

 

$

 4 

 

$

 4 

 

Net income (loss)



 

 

 

 

 

 

 

 

 

 

 

 

 

 



(a) Amounts in parentheses indicate losses.

(b) These accumulated other comprehensive loss components are included in the computation of net periodic pension and OPEB costs (see Note 14 - Retirement Plans for additional details).