Frontier Communications 2007 Annual Report Download - page 84

CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Our Federal and state tax operating loss carryforwards as of December 31, 2007 are estimated at $11.3
million and $1,563.0 million, respectively. Our Federal loss carryforward will expire in the year 2026. A portion
of our state loss carryforward begins to expire in 2008. Our alternative minimum tax credit as of December 31,
2007 can be carried forward indefinitely to reduce future regular tax liability.
The provision (benefit) for Federal and state income taxes, as well as the taxes charged or credited to
shareholders’ equity, includes amounts both payable currently and deferred for payment in future periods as
indicated below:
($ in thousands) 2007 2006 2005
Income taxes charged (credited) to the income statement for continuing
operations:
Current:
Federal ..................................................... $ 37,815 $ 772 $ 16,708
State ....................................................... 9,188 3,676 (33,006)
Total current .............................................. 47,003 4,448 (16,298)
Deferred:
Federal ..................................................... 75,495 128,534 89,446
Federal tax credits ............................................ — — (18)
State ....................................................... 5,516 3,497 2,140
Total deferred ............................................. 81,011 132,031 91,568
Subtotal income taxes for continuing operations ................ 128,014 136,479 75,270
Income taxes charged to the income statement for discontinued operations:
Current:
Federal ..................................................... — 3,018 —
State ....................................................... — 2,004 2
Total current .............................................. — 5,022 2
Deferred:
Federal ..................................................... — 47,732 18,871
State ....................................................... — 3,835 3,538
Total deferred ............................................. — 51,567 22,409
Subtotal income taxes for discontinued operations .............. — 56,589 22,411
Total income taxes charged to the income statement (a) .................. 128,014 193,068 97,681
Income taxes charged (credited) to shareholders’ equity:
Deferred income tax benefits on unrealized/realized gains or losses on
securities classified as available-for-sale .......................... (11) (35) (411)
Current benefit arising from stock options exercised and restricted stock . . . (552) (3,777) (5,976)
Deferred income taxes (benefits) arising from the recognition of additional
pension/OPEB liability ........................................ (6,880) 24,707 (13,933)
Deferred tax benefit from recording adjustments from the adoption of SAB
No.108 .................................................... — (17,339) —
Income taxes charged (credited) to shareholders’ equity (b) ............. (7,443) 3,556 (20,320)
Total income taxes: (a) plus (b) ..................................... $120,571 $196,624 $ 77,361
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