Frontier Communications 2009 Annual Report Download - page 91

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effect would be antidilutive. In calculating diluted EPS we apply the treasury stock method and include future
unearned compensation as part of the assumed proceeds.
In addition, for the years ended December 31, 2009, 2008 and 2007, the impact of dividends paid on
unvested restricted stock awards have been deducted from net income attributable to common shareholders of
Frontier in accordance with FSP EITF No. 03-6-1 (ASC Topic 260), which we adopted in the first quarter of
2009 on a retrospective basis.
EPPICS
There were no outstanding EPPICS at December 31, 2008 and 2009. At December 31, 2007, we had
80,307 shares of potentially dilutive EPPICS, which were convertible into our common stock at a 4.3615 to 1
ratio at an exercise price of $11.46 per share. If all EPPICS that remained outstanding as of December 31, 2007
were converted, we would have issued approximately 350,259 shares of our common stock. These securities
have been included in the diluted earnings per common share calculation for the period ended December 31,
2007.
Stock Units
At December 31, 2009, 2008 and 2007, we had 440,463, 324,806 and 225,427 stock units, respectively,
issued under the Director Plans. These securities have not been included in the diluted income per share of
common stock calculation because their inclusion would have had an antidilutive effect.
Share Repurchase Programs
There were no shares repurchased during 2009 under a share repurchase program.
During 2008, we repurchased approximately 17.8 million shares of our common stock at an aggregate cost
of $200.0 million. During 2007, we repurchased approximately 17.3 million shares of our common stock at an
aggregate cost of $250.0 million.
(16) Comprehensive Income:
Comprehensive income consists of net income and other gains and losses affecting shareholders’
investment and pension/OPEB liabilities that, under GAAP, are excluded from net income.
The components of accumulated other comprehensive loss, net of tax at December 31, 2009 and 2008 are
as follows:
($ in thousands) 2009 2008
Pension costs . . . ....................................................... $ 374,157 $ 376,086
Postretirement costs .................................................... 21,554 8,045
Deferred taxes on pension and OPEB costs . . ........................... (150,284) (146,997)
All other .............................................................. 92 18
$ 245,519 $ 237,152
Our other comprehensive income (loss) for the years ended December 31, 2009, 2008 and 2007 is as
follows:
($ in thousands)
Before-Tax
Amount
Tax Expense/
(Benefit)
Net-of-Tax
Amount
2009
Net actuarial loss ..................................... $(35,759) $(10,149) $(25,610)
Amortization of pension and postretirement costs ....... 24,179 6,862 17,317
All other ............................................. (74) — (74)
Other comprehensive (loss). . ............................... $(11,654) $ (3,287) $ (8,367)
F-29
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements