Frontier Communications 2009 Annual Report Download - page 79

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(6) Other Intangibles:
The components of other intangibles at December 31, 2009 and 2008 are as follows:
($ in thousands) 2009 2008
Customer base . . . ........................................... $ 270,309 $ 1,265,052
Trade name and license . . . .................................. 134,680 132,664
Other intangibles ....................................... 404,989 1,397,716
Less: Accumulated amortization ............................. (157,462) (1,038,042)
Total other intangibles, net.............................. $ 247,527 $ 359,674
Amortization expense was $114.2 million, $182.3 million and $171.4 million for the years ended
December 31, 2009, 2008 and 2007, respectively. Amortization expense for 2009 is comprised of $57.9 million
for amortization associated with our “legacy” Frontier properties, which were fully amortized in June 2009, and
$56.3 million for intangible assets (customer base and trade name) that were acquired in the Commonwealth
and Global Valley acquisitions. As of December 31, 2008, $263.5 million has been allocated to the customer
base (five year life) and $10.3 million to the trade name (five year life) acquired in the Commonwealth
acquisition, and $7.0 million to the customer base (five year life) and $0.3 million to the trade name (five year
life) acquired in the Global Valley acquisition. Amortization expense, based on our estimate of useful lives, is
estimated to be $56.2 million in 2010 and 2011 and $11.3 million in 2012.
(7) Long-Term Debt:
The activity in our long-term debt from December 31, 2008 to December 31, 2009 is summarized as
follows:
($ in thousands)
December 31,
2008 Retirements
New
Borrowings
December 31,
2009
Interest
Rate*at
December 31,
2009
Year Ended
December 31, 2009
Rural Utilities Service Loan
Contracts . ........................ $ 16,607 $ (1,007) $ — $ 15,600 6.07%
Senior Unsecured Debt .............. 4,702,331 (1,047,330) 1,200,000 4,855,001 7.86%
Industrial Development Revenue
Bonds ............................ 13,550 — — 13,550 6.33%
TOTAL LONG-TERM DEBT ...... $4,732,488 $(1,048,337) $1,200,000 $4,884,151 7.85%
Less: Debt Discount . . ............... (6,946) (82,786)
Less: Current Portion . ............... (3,857) (7,236)
$4,721,685 $4,794,129
*Interest rate includes amortization of debt issuance costs, debt premiums or discounts, and deferred gain on
interest rate swap terminations. The interest rates at December 31, 2009 represent a weighted average of
multiple issuances.
F-17
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements