Frontier Communications 2007 Annual Report Download - page 66

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
With respect to our acquisition of Commonwealth, the purchase price has been allocated based on fair
values to the net tangible and intangible assets acquired and liabilities assumed. Our GVN purchase price
allocation is preliminary. The allocations are as follows:
($ in thousands)
Commonwealth
(Final) GVN
(Preliminary)
Allocation of purchase price:
Current assets (1) ................................................. $ 190,106 $ 1,945
Property, plant and equipment ...................................... 387,343 25,712
Goodwill ....................................................... 690,035 26,774
Other intangibles ................................................. 273,800 13,000
Other assets ..................................................... 11,234 386
Current portion of debt ............................................ (35,000) (17)
Accounts payable and other current liabilities .......................... (81,767) (911)
Deferred income taxes ............................................ (143,472) (3,740)
Convertible notes ................................................ (209,553) —
Other liabilities .................................................. (28,368) (1,148)
Total Purchase Price .................................................. $1,054,358 $62,001
(1) Includes $140.6 million of total acquired cash.
The following unaudited pro forma financial information presents the combined results of operations of
Citizens, Commonwealth and GVN as if the acquisitions had occurred at the beginning of each period presented.
The historical results of the Company include the results of Commonwealth from the date of acquisition on
March 8, 2007, and GVN from November 1, 2007. The pro forma information is not necessarily indicative of
what the financial position or results of operations actually would have been had the acquisitions been completed
at the dates indicated. In addition, the unaudited pro forma financial information does not purport to project the
future financial position or operating results of Citizens after completion of the acquisitions.
($ in thousands, except per share amounts) 2007 2006
Revenue .............................................................. $2,362,695 $2,371,143
Operating income ...................................................... $ 719,518 $ 716,162
Income from continuing operations ........................................ $ 216,266 $ 284,707
Income from discontinued operations ....................................... $ — $ 90,547
Net income available for common shareholders ............................... $ 216,266 $ 375,254
Basic income per common share: ..........................................
Income from continuing operations .................................... $ 0.65 $ 0.83
Income from discontinued operations ................................... — 0.26
Net income per common share ........................................ $ 0.65 $ 1.09
Diluted income per common share:
Income from continuing operations .................................... $ 0.65 $ 0.83
Income from discontinued operations ................................... — 0.26
Net income per common share ........................................ $ 0.65 $ 1.09
F-16