Frontier Communications 2005 Annual Report Download - page 77

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F-28
CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The components of the net deferred income tax liability (asset) at December 31 are as follows:
Deferred income tax liabilities:
Property, plant and equipment basis differences . . . . . . . . . . . . . . . . . . . . . . . $ 567,411 $ 578,501
Intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168,703 161,955
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,752 9,004
743,866 749,460
Deferred income tax assets:
Minimum pension liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,368 62,435
Tax operating loss carryforward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,053 394,797
Alternate minimum tax credit carryforward . . . . . . . . . . . . . . . . . . . . . . . . . . 43,678 37,796
Employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66,853 55,566
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,279 23,095
468,231 573,689
Less: Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (38,131 ) (43,503 )
Net deferred income tax asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 430,100 530,186
Net deferred income tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 313,766 $ 219,274
Deferred tax assets and liabilities are reflected in the following captions on the
balance sheet:
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 325,084 $ 232,766
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,318 ) (13,492 )
Net deferred income tax liability $ 313,766 $ 219,274
Our federal and state tax operating loss carryforwards as of December 31, 2005 are estimated at $584,476,000
and $1,409,983,000, respectively. Our federal loss carryforward will begin to expire in the year 2021. A portion of
our state loss carryforward will begin to expire in 2006. Our alternative minimum tax credit as of December 31,
2005 can be carried forward indefinitely to reduce future regular tax liability.