Frontier Communications 2006 Annual Report Download - page 81

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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:
($ in thousands) 2006 2005
Deferred income tax liabilities:
Property, plant and equipment basis differences ............................ $ 547,726 $ 571,956
Intangibles ......................................................... 175,991 168,703
Other, net .......................................................... 9,675 3,207
733,392 743,866
Deferred income tax assets:
Minimum pension liability ............................................ — 76,368
FASB 158 pension/OPEB liability ...................................... 51,660 —
Tax operating loss carryforward ........................................ 81,515 260,053
Alternate minimum tax credit carryforward ............................... 54,834 43,678
Employee benefits ................................................... 70,013 66,853
Other, net .......................................................... 24,039 21,279
282,061 468,231
Less: Valuation allowance ............................................ (49,679) (38,131)
Net deferred income tax asset .......................................... 232,382 430,100
Net deferred income tax liability ...................................... $ 501,010 $ 313,766
Deferred tax assets and liabilities are reflected in the following captions on the
balance sheet:
Deferred income taxes ................................................ $ 514,130 $ 325,084
Other current assets .................................................. (13,120) (11,318)
Net deferred income tax liability ...................................... $ 501,010 $ 313,766
Our federal and state tax operating loss carryforwards as of December 31, 2006 are estimated at
$56,636,000 and $1,186,873,000, respectively. Our federal loss carryforward will expire in the year 2025. A
portion of our state loss carryforward will begin to expire in 2007. Our alternative minimum tax credit as of
December 31, 2006 can be carried forward indefinitely to reduce future regular tax liability.
F-33