Frontier Communications 2009 Annual Report Download - page 90

The following table sets forth the changes in the Company’s balance of unrecognized tax benefits for the
years ended December 31, 2009 and 2008 in accordance with ASC Topic 740:
($ in thousands)
2009 2008
Unrecognized tax benefits—beginning of year .............................. $48,711 $ 59,717
Gross decreases—prior year tax positions .................................. (3,133) (2,070)
Gross increases—current year tax positions . . . .............................. 12,412 2,379
Gross decreases—expired statute of limitations ............................. (1,130) (11,315)
Unrecognized tax benefits—end of year .................................... $56,860 $ 48,711
The amounts above exclude $5.0 million of accrued interest that we have recorded and would be payable
should the Company’s tax positions not be sustained.
(15) Net Income Per Common Share:
The reconciliation of the net income per common share calculation for the years ended December 31,
2009, 2008 and 2007 is as follows:
($ in thousands, except per-share amounts)
2009 2008 2007
Net income used for basic and diluted earnings per
common share:
Net income attributable to common shareholders of Frontier. . . . $120,783 $182,660 $214,654
Less: Dividends allocated to unvested restricted stock awards. . . (2,248) (1,744) (1,408)
Total basic net income attributable to common shareholders
of Frontier ................................................ 118,535 180,916 213,246
Effect of conversion of preferred securities—EPPICS .......... — 130 152
Total diluted net income attributable to common shareholders
of Frontier ................................................ $118,535 $181,046 $213,398
Basic earnings per common share:
Total weighted-average shares and unvested restricted stock
awards outstanding—basic.................................. 312,183 319,161 332,377
Less: Weighted-average unvested restricted stock awards ....... (2,162) (1,660) (1,340)
Total weighted-average shares outstanding—basic . . . ........... 310,021 317,501 331,037
Net income per share attributable to common shareholders
of Frontier ................................................ $ 0.38 $ 0.57 $ 0.64
Diluted earnings per common share:
Total weighted-average shares outstanding—basic . . . ........... 310,021 317,501 331,037
Effect of dilutive shares ...................................... 92 435 940
Effect of conversion of preferred securities—EPPICS .......... — 306 401
Total weighted-average shares outstanding—diluted . ........... 310,113 318,242 332,378
Net income per share attributable to common shareholders
of Frontier ................................................ $ 0.38 $ 0.57 $ 0.64
Stock Options
For the years ended December 31, 2009, 2008 and 2007, options to purchase 3,551,000 shares (at exercise
prices ranging from $8.19 to $18.46), 2,647,000 shares (at exercise prices ranging from $11.15 to $18.46) and
1,804,000 shares (at exercise prices ranging from $15.02 to $18.46), respectively, issuable under employee
compensation plans were excluded from the computation of diluted earnings per share (EPS) for those periods
because the exercise prices were greater than the average market price of our common stock and, therefore, the
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements