Frontier Communications 2006 Annual Report Download - page 84

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Equity Units and EPPICS
On August 17, 2004 we issued 32,073,633 shares of common stock, including 3,591,000 treasury shares, to
our equity unit holders in settlement of the equity purchase contract component of the equity units. With respect
to the $460,000,000 Senior Note component of the equity units, we repurchased $300,000,000 principal amount
of these Notes in July 2004. The remaining $160,000,000 of the Senior Notes were repriced and a portion was
remarketed on August 12, 2004 as the 6.75% Notes due August 17, 2006. During 2004, we repurchased an
additional $108,230,000 of the 6.75% Notes which, in addition to the $300,000,000 purchased in July, resulted in
a pre-tax charge of approximately $20,080,000 during the third quarter of 2004.
At December 31, 2006 and 2005, we had 147,079 and 465,588 shares, respectively, of potentially dilutive
EPPICS, which were convertible into common stock at an exercise price of $11.46 per share. If all EPPICS that
remain outstanding are converted, we would issue approximately 641,485 shares of our common stock. As a
result of the September 2004 special, non-recurring dividend, the EPPICS exercise price for conversion into
common stock was reduced from $13.30 to $11.46. These securities have been included in the diluted income per
common share calculation for the period ended December 31, 2006 and 2005. However, 1,065,171 shares for
2004 have not been included in the diluted income per share calculation for the period ended December 31, 2004
because their inclusion would have had an antidilutive effect.
Stock Units
At December 31, 2006, 2005 and 2004, we had 319,423, 206,630, and 464,879 stock units, respectively,
issued under our Directors’ Deferred Fee Equity Plan and Non-Employee Directors’ Retirement Plan. These
securities have not been included in the diluted income per share calculation because their inclusion would have
had an antidilutive effect.
(21) COMPREHENSIVE INCOME (LOSS):
Comprehensive income consists of net income (loss) and other gains and losses affecting shareholder’s
investment and FAS No. 158 pension/OPEB liabilities that, under GAAP, are excluded from net income (loss).
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