Frontier Communications 2006 Annual Report Download - page 28

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Share Repurchase Programs
In February 2007, our Board of Directors authorized us to repurchase up to $250 million of our common
stock in public or private transactions over the following twelve month period.
In February 2006, our Board of Directors authorized us to repurchase up to $300.0 million of our common
stock in public or private transactions over the following twelve-month period. This share repurchase program
commenced on March 6, 2006. As of December 31, 2006, we had repurchased 10,199,900 shares of our common
stock at an aggregate cost of approximately $135.2 million. No more shares can be repurchased under this
authorization.
On May 25, 2005, our Board of Directors authorized us to repurchase up to $250.0 million of our common
stock. This share repurchase program commenced on June 13, 2005. As of December 31, 2005, we completed the
repurchase program and had repurchased a total of 18,775,156 shares of our common stock at an aggregate cost
of $250.0 million.
Dividends
Our ongoing annual dividends of $1.00 per share of common stock under our current policy utilize a
significant portion of our cash generated by operations and therefore could limit our operating and financial
flexibility. While we believe that the amount of our dividends will allow for adequate amounts of cash flow for
other purposes, any reduction in cash generated by operations and any increases in capital expenditures, interest
expense or cash taxes would reduce the amount of cash generated in excess of dividends.
Off-Balance Sheet Arrangements
We do not maintain any off-balance sheet arrangements, transactions, obligations or other relationship with
unconsolidated entities that would be expected to have a material current or future effect upon our financial
statements.
Future Commitments
A summary of our future contractual obligations and commercial commitments as of December 31, 2006 is
as follows:
Contractual Obligations: Payment due by period
($ in thousands)
Total
Less than
1 year 1-3 years 3-5 years
More than
5 years
Long-term debt obligations,
excluding interest (see Note 11) (1) .......... $4,532,904 $39,271 $500,195 $1,258,403 $2,735,035
Operating lease obligations (see Note 25) ...... 69,393 15,794 19,510 15,904 18,185
Purchase obligations (see Note 25) ............ 70,165 26,449 35,509 7,547 660
Total ................................. $4,672,462 $81,514 $555,214 $1,281,854 $2,753,880
(1) Includes interest rate swaps (($10.3) million).
At December 31, 2006, we have outstanding performance letters of credit totaling $22.8 million.
Management Succession and Strategic Alternatives Expenses
On July 11, 2004, our Board of Directors announced that it completed its review of our financial and
strategic alternatives. In 2004, we expensed $90.6 million of costs related to management succession and our
exploration of financial and strategic alternatives. Included are $36.6 million of non-cash expenses for the
acceleration of stock benefits, cash expenses of $19.2 million for advisory fees, $19.3 million for severance and
retention arrangements and $15.5 million primarily for tax reimbursements.
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