Frontier Communications 2010 Annual Report Download - page 64

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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Explanatory Note
Effective July 1, 2010, Frontier’s scope of operations and balance sheet capitalization changed materially
as a result of the completion of the Transaction, as described in Note 3 of the Notes to Consolidated Financial
Statements. Historical financial data presented for Frontier is not indicative of the future financial position or
operating results for Frontier, and includes the results of operations of the Acquired Business, as defined in
Note 3 of the Notes to Consolidated Financial Statements, from the date of acquisition on July 1, 2010.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2010 AND 2009
($ in thousands)
2010 2009
ASSETS
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 251,263 $ 358,693
Accounts receivable, less allowances of $73,571 and $30,171,
respectively........................................................ 568,308 190,745
Prepaid expenses..................................................... 100,603 28,081
Income taxes and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208,245 102,561
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,128,419 680,080
Restricted cash............................................................ 187,489 —
Property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,590,614 3,133,521
Goodwill................................................................. 6,292,194 2,642,323
Other intangibles, net ..................................................... 2,491,195 247,527
Other assets .............................................................. 200,319 174,804
Total assets $17,890,230 $6,878,255
LIABILITIES AND EQUITY
Current liabilities:
Long-term debt due within one year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 280,002 $ 7,236
Accounts payable..................................................... 436,886 139,556
Advanced billings .................................................... 171,602 49,589
Accrued other taxes .................................................. 167,857 28,750
Accrued interest...................................................... 170,228 107,119
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212,782 60,427
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,439,357 392,677
Deferred income taxes .................................................... 2,220,677 722,192
Pension and other postretirement benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816,588 454,161
Other liabilities........................................................... 220,172 176,026
Long-term debt........................................................... 7,983,693 4,794,129
Equity:
Shareholders’ equity of Frontier:
Common stock, $0.25 par value (1,750,000,000 and 600,000,000
authorized shares, respectively, 993,855,000 and 312,328,000
outstanding, respectively, and 1,027,986,000 and 349,456,000 issued,
respectively, at December 31, 2010 and 2009) . . . . . . . . . . . . . . . . . . . . . . . 256,997 87,364
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,525,471 956,401
Retained earnings .................................................... 77,107 2,756
Accumulated other comprehensive loss, net of tax. . . . . . . . . . . . . . . . . . . . . . (229,549) (245,519)
Treasury stock ....................................................... (433,286) (473,391)
Total shareholders’ equity of Frontier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,196,740 327,611
Noncontrolling interest in a partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,003 11,459
Total equity ..................................................... 5,209,743 339,070
Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17,890,230 $6,878,255
The accompanying Notes are an integral part of these Consolidated Financial Statements
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