Frontier Communications 2009 Annual Report Download - page 77

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The following schedule provides a summary of the final purchase price paid by Frontier in the acquisitions
of Commonwealth and GVN:
($ in thousands) Commonwealth GVN
Cash paid ................................................... $ 804,554 $62,001
Value of Frontier common stock issued....................... 249,804 —
Total Purchase Price ......................................... $1,054,358 $62,001
With respect to our acquisitions of Commonwealth and GVN, the purchase price has been allocated based
on fair values to the net tangible and intangible assets acquired and liabilities assumed. The final allocations
were as follows:
($ 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 $140.6 million of total acquired cash.
The following unaudited pro forma financial information presents the combined results of operations of
Frontier, Commonwealth and GVN as if the acquisitions had occurred at the beginning of 2007. The historical
results of the Company include the results of Commonwealth from the date of its acquisition on March 8, 2007,
and GVN from the date of its acquisition on October 31, 2007. The pro forma information is not necessarily
indicative of what the financial position or results of operations actually would have been had the acquisitions
been completed at the beginning of 2007. In addition, the unaudited pro forma financial information does not
purport to project the future financial position or operating results of Frontier after completion of the
acquisitions.
($ in thousands, except per share amounts) 2007
Revenue. . . .............................................................. $2,362,695
Operating income . . . ..................................................... $ 720,476
Net income attributable to common shareholders of Frontier ............... $ 218,428
Basic and diluted income per common share .............................. $ 0.65
F-15
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements