Frontier Communications 2010 Annual Report Download - page 88

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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, 2010, 2009 and 2008, we have deducted the impact of
dividends paid on unvested restricted stock awards from net income attributable to common shareholders of
Frontier.
Stock Units
At December 31, 2010, 2009 and 2008, we had 434,765, 440,463 and 324,806 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 an antidilutive effect.
Share Repurchase Programs
There were no shares repurchased during 2010 or 2009 under share repurchase programs.
During 2008, we repurchased approximately 17.8 million shares of our common stock at an aggregate cost
of $200.0 million.
(15) Comprehensive Income:
Comprehensive income consists of net income and other gains and losses affecting shareholders’
investment and pension/OPEB liabilities that, under U.S. GAAP, are excluded from net income.
The components of accumulated other comprehensive loss, net of tax at December 31, 2010 and 2009 are
as follows:
($ in thousands) 2010 2009
Pension costs.......................................................... $ 349,264 $ 374,157
Postretirement costs.................................................... 13,369 21,554
Deferred taxes on pension and OPEB costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (132,752) (150,284)
All other.............................................................. (332) 92
$ 229,549 $ 245,519
Our other comprehensive income (loss) for the years ended December 31, 2010, 2009 and 2008 is as
follows:
($ in thousands)
Before-Tax
Amount
Tax Expense/
(Benefit)
Net-of-Tax
Amount
2010
Net actuarial gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,123 $ 4,774 $ 4,349
Amortization of pension and postretirement costs . . . . . . . 23,955 12,536 11,419
All other ............................................. 424 222 202
Other comprehensive income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,502 $17,532 $15,970
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