Frontier Communications 2005 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 of the 2005 Frontier Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

F-29
CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The provision (benefit) for federal and state income taxes, as well as the taxes charged or credited to shareholders’
equity, includes amounts both payable currently and deferred for payment in future periods as indicated below:
($ in thousands) 2005 2004 2003
Income taxes charged (credited) to the income statement
for continuing operations:
Current:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,708 $ (9,951 ) $ (12,632 )
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33,004 ) (3,643 ) 2,900
Total current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (16,296) (13,594 ) (9,732)
Deferred:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96,163 26,586 77,794
Federal tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (18 ) (40 ) (3,128)
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,491 (2,530 ) (158)
Total deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,636 24,016 74,508
Subtotal income taxes for continuing operations . . . . . . . 84,340 10,422 64,776
Income taxes charged to the income statement for discontinued
operations:
Current:
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3 —
Total current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3 —
Deferred:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,156 2,816 2,358
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,187 138 82
Total deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,343 2,954 2,440
Subtotal income taxes for discontinued operations . . . . . . 13,343 2,957 2,440
Income tax benefit on dividends on convertible preferred securities:
Current:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ——(3,344)
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —— (508 )
Subtotal income taxes on dividends on convertible
preferred securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . ——(3,852 )
Income taxes charged to the income statement for
cumulative effect of change in accounting principle:
Deferred:
Federal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ——35,414
State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ——6,177
Subtotal income taxes for cumulative effect of
change in accounting principle . . . . . . . . . . . . . . . . . . —— 41,591
Total income taxes charged to the income statement (a) . . . . . . . . . . . . . 97,683 13,379 104,955
Income taxes charged (credited) to shareholders’ equity:
Deferred income taxes (benefits) on unrealized/realized gains or
losses on securities classified as available-for-sale. . . . . . . . . . . . (411 ) (10,982 ) 5,539
Current benefit arising from stock options exercised and
restricted stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,976 ) (13,765 ) (2,535)
Deferred income taxes (benefits) arising from recognition
of a minimum pension liability . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,933 ) (6,645 ) 13,373
Income taxes charged (credited) to shareholders’ equity (b) . . . . . . . (20,320) (31,392 ) 16,377
Total income taxes: (a) plus (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 77,363 $(18,013 ) $ 121,332