Frontier Communications 2004 Annual Report Download - page 78

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
F-34
(22) Comprehensive Income (Loss):
Comprehensive income consists of net income (loss) and other gains and losses affecting shareowners’ investment and
minimum pension liability that, under GAAP, are excluded from net income (loss).
Our other comprehensive income (loss) for the years ended December 31, 2004, 2003 and 2002 is as follows:
(23) Segment Information:
As of April 1, 2004, we operate in two segments, ILEC and ELI (a CLEC). The ILEC segment provides both
regulated and unregulated communications services to residential, business and wholesale customers and is typically
the incumbent provider in its service areas.
As an ILEC, we compete with CLECs that may operate in our markets. As a CLEC, we provide telecommunications
services, principally to businesses, in competition with the ILEC. As a CLEC, we frequently obtain the “last mile”
access to customers through arrangements with the applicable ILEC. ILECs and CLECs are subject to different
regulatory frameworks of the Federal Communications Commission (FCC). Our ILEC operations and ELI do not
compete with each other.
As permitted by SFAS No. 131, we have utilized the aggregation criteria in combining our markets because all of the
Company’s ILEC properties share similar economic characteristics: they provide the same products and services to
similar customers using comparable technologies in all of the states that we operate in. The regulatory structure is
generally similar. Differences in the regulatory regime of a particular state do not impact the economic
characteristics or operating results of a particular property.
Before-Tax Tax Expense/ Net-of-Tax
($ in thousands) Amount (Benefit) Amount
Net unrealized losses on securities:
Net unrealized holding losses arising during period (1,901)$ (742)$ (1,159)$
Minimum pension liability (17,372) (6,645) (10,727)
Less: Reclassification adjustments for net
gains realized in net income (26,247) (10,240) (16,007)
Other comprehensive loss (45,520)$ (17,627)$ (27,893)$
Before-Tax Tax Expense/ Net-of-Tax
($ in thousands) Amount (Benefit) Amount
Net unrealized gains on securities:
Net unrealized holding gains arising during period 14,470$ 5,539$ 8,931$
Minimum pension liability 34,935 13,373 21,562
Other comprehensive income 49,405$ 18,912$ 30,493$
Before-Tax Tax Expense/ Net-of-Tax
($ in thousands) Amount (Benefit) Amount
Net unrealized losses on securities:
Net unrealized holding losses arising during period (101,137)$ (38,078)$ (63,059)$
Minimum pension liability (180,798) (69,209) (111,589)
Add: Reclassification adjustments for net
losses realized in net loss 108,376 40,804 67,572
Other comprehensive loss (173,559)$ (66,483)$ (107,076)$
2003
2002
2004