Frontier Communications 2008 Annual Report Download - page 30

commenced on March 19, 2007 and was completed on October 15, 2007. During 2007, we repurchased
17,279,600 shares of our common stock at an aggregate cost of $250.0 million.
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. During 2006, we repurchased 10,199,900 shares of our common stock at an
aggregate cost of approximately $135.2 million. No further purchases were made prior to expiration of this
authorization.
Dividends
We expect to pay regular quarterly dividends. Our ability to fund a regular quarterly dividend will be
impacted by our ability to generate cash from operations. The declarations and payment of future dividends will
be at the discretion of our Board of Directors, and will depend upon many factors, including our financial
condition, results of operations, growth prospects, funding requirements, applicable law, restrictions in our
credit facilities and other factors our Board of Directors deems relevant.
Off-Balance Sheet Arrangements
We do not maintain any off-balance sheet arrangements, transactions, obligations or other relationships
with unconsolidated entities that would be expected to have a material current or future effect upon our
financial statements.
Future Commitments
A summary of our future contractual obligations and commercial commitments as of December 31, 2008
is as follows:
Contractual Obligations:
($ in thousands) Total 2009 2010-2011 2012-2013 Thereafter
Payment due by period
Long-term debt obligations, excluding
interest................................ $4,732,488 $ 3,857 $1,132,379 $1,009,497 $2,586,755
Interest on long-term debt ................ 4,507,391 357,600 676,162 494,675 2,978,954
Operating lease obligations ............... 66,500 22,654 21,499 12,781 9,566
Purchase obligations ..................... 34,142 23,286 10,196 330 330
FIN No. 48 liability...................... 48,711 1,493 34,433 12,780 5
Total ............................... $9,389,232 $408,890 $1,874,669 $1,530,063 $5,575,610
At December 31, 2008, we have outstanding performance letters of credit totaling $21.9 million.
Divestitures
On August 24, 1999, our Board of Directors approved a plan to divest our public utilities services
businesses, which included gas, electric and water and wastewater businesses. We have sold all of these
properties. All of the agreements relating to the sales provide that we will indemnify the buyer against certain
liabilities (typically liabilities relating to events that occurred prior to sale), including environmental liabilities,
for claims made by specified dates and that exceed threshold amounts specified in each agreement (see
Note 24).
Discontinued Operations
On July 31, 2006, we sold our CLEC business, Electric Lightwave, LLC (ELI) for $255.3 million
(including a later sale of associated real estate) in cash plus the assumption of approximately $4.0 million in
capital lease obligations. We recognized a pre-tax gain on the sale of ELI of approximately $116.7 million. Our
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES