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Comprehensive Income (Loss)
 6 Months Ended
Jun. 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 June 30, 2017 and 2016, and changes for the six 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

 

 

 25 

 

 

 (5)

 

 

 (9)

 

 

 11 

Amounts reclassified from accumulated other comprehensive loss to net loss

 

 

 17 

 

 

 (4)

 

 

 (2)

 

 

 11 

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

 

 

 62 

 

 

 -

 

 

 (26)

 

 

 36 

Net current-period other comprehensive income (loss)

 

 

 104 

 

 

 (9)

 

 

 (37)

 

 

 58 

Balance at June 30, 2017

 

$

 (543)

 

$

 20 

 

$

 194 

 

$

 (329)





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Pension Costs

 

OPEB Costs

 

Deferred Taxes on Pension and OPEB Costs

 

Total

Balance at January 1, 2016

 

$

 (584)

 

$

 20 

 

$

 211 

 

$

 (353)

Amounts reclassified from accumulated other comprehensive loss

 

 

 21 

 

 

 (4)

 

 

 (6)

 

 

 11 

Net current-period other comprehensive income (loss)

 

 

 21 

 

 

 (4)

 

 

 (6)

 

 

 11 

Balance at June 30, 2016

 

$

 (563)

 

$

 16 

 

$

 205 

 

$

 (342)



As a result of the pension settlement accounting discussed in Note 14, the Frontier Communications Pension Plan (the Pension Plan) was remeasured as of June 30, 2017.  This remeasurement resulted in a decrease in the discount rate from 4.10% at March 31, 2017 to 3.80% at June 30, 2017, resulting in the recording of a loss on remeasurement to Other comprehensive income (loss) during the quarter.  For the three and six months ended June 30, 2017, Frontier recorded a net loss on remeasurement of $28 million and a net gain on remeasurement of $20 million, respectively, to Other comprehensive income (loss).  Additionally, Frontier recorded pension settlement charges  totaling $62 million  ($36 million net of tax) to Other comprehensive income.  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 six months ended June 30, 2017 and 2016 are as follows:





 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Amount Reclassified from

 

 

($ in millions)

 

Accumulated Other Comprehensive Loss (a)

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Details about Accumulated Other

 

For the three months ended June 30,

 

For the six months ended June 30,

 

Affected Line Item in the Statement Where

Comprehensive Loss Components

 

2017

 

2016

 

2017

 

2016

 

Net Income (Loss) is Presented

Amortization of Pension Cost Items (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial gains (losses)

 

$

 (9)

 

$

 (10)

 

$

 (17)

 

$

 (21)

 

 

Pension settlement costs

 

 

 (19)

 

 

 -

 

 

 (62)

 

 

 -

 

 



 

 

 (28)

 

 

 (10)

 

 

 (79)

 

 

 (21)

 

Income (loss) before income taxes

Tax impact

 

 

 10 

 

 

 4 

 

 

 29 

 

 

 8 

 

Income tax (expense) benefit



 

$

 (18)

 

$

 (6)

 

$

 (50)

 

$

 (13)

 

Net income (loss)

Amortization of OPEB Cost Items (b)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior-service costs

 

$

 3 

 

$

 3 

 

$

 5 

 

$

 5 

 

 

Actuarial gains (losses)

 

 

 (1)

 

 

 (1)

 

 

 (1)

 

 

 (1)

 

 



 

 

 2 

 

 

 2 

 

 

 4 

 

 

 4 

 

Income (loss) before income taxes

Tax impact

 

 

 -

 

 

 (1)

 

 

 (1)

 

 

 (2)

 

Income tax (expense) benefit



 

$

 2 

 

$

 1 

 

$

 3 

 

$

 2 

 

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).