Frontier Communications 2008 Annual Report Download - page 67

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With respect to our acquisitions of Commonwealth and GVN, the purchase price has been allocated based
on fair values to the net tangible and intangible assets acquired and liabilities assumed. The final allocations are
as follows:
($ in thousands) Commonwealth GVN
Allocation of purchase price:
Current assets(1) ......................................... $ 187,986 $ 1,581
Property, plant and equipment . . . ........................ 387,343 23,578
Goodwill ............................................... 690,262 34,311
Other intangibles........................................ 273,800 7,250
Other assets . ........................................... 11,285 812
Current portion of debt . ................................. (35,000) (17)
Accounts payable and other current liabilities............. (80,375) (626)
Deferred income taxes. . ................................. (143,539) (3,740)
Convertible notes ....................................... (209,553) —
Other liabilities ......................................... (27,851) (1,148)
Total Purchase Price ......................................... $1,054,358 $62,001
(1) Includes $140.6 million of total acquired cash.
The following unaudited pro forma financial information presents the combined results of operations of
Frontier, Commonwealth and GVN as if the acquisitions had occurred at the beginning of each period
presented. The historical results of the Company include the results of Commonwealth from the date of its
acquisition on March 8, 2007, and GVN from the date of its acquisition on October 31, 2007. The pro forma
information is not necessarily indicative of what the financial position or results of operations actually would
have been had the acquisitions been completed at the beginning of each period presented. In addition, the
unaudited pro forma financial information does not purport to project the future financial position or operating
results of Frontier after completion of the acquisitions.
($ in thousands, except per share amounts ) 2007 2006
Revenue.................................................... $2,362,695 $2,371,143
Operating income ........................................... $ 720,476 $ 717,312
Income from continuing operations .......................... $ 218,428 $ 285,434
Income from discontinued operations ........................ $ — $ 90,547
Net income available for common shareholders............... $ 218,428 $ 375,981
Basic income per common share:
Income from continuing operations . . . ................... $ 0.66 $ 0.83
Income from discontinued operations . ................... — 0.26
Net income per common share .......................... $ 0.66 $ 1.09
Diluted income per common share:
Income from continuing operations . . . ................... $ 0.66 $ 0.83
Income from discontinued operations . ................... — 0.26
Net income per common share .......................... $ 0.66 $ 1.09
F-16
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements