Frontier Communications 2010 Annual Report Download - page 89

Download and view the complete annual report

Please find page 89 of the 2010 Frontier Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

Before-Tax
Amount
Tax Expense/
(Benefit)
Net-of-Tax
Amount
2008
Net actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(252,358) $(90,122) $(162,236)
Amortization of pension and postretirement costs . . . . . . 4,795 1,712 3,083
All other............................................ (4) — (4)
Other comprehensive (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(247,567) $(88,410) $(159,157)
(16) Segment Information:
We operate in one reportable segment, Frontier. Frontier provides both regulated and unregulated voice,
data and video services to residential, business and wholesale customers and is typically the incumbent provider
in its service areas.
As permitted by U.S. GAAP, we have utilized the aggregation criteria to combine our operating segments
because all of our Frontier properties share similar economic characteristics, in that they provide the same
products and services to similar customers using comparable technologies in all of the states in which we
operate. The regulatory structure is generally similar. Differences in the regulatory regime of a particular state
do not materially impact the economic characteristics or operating results of a particular property. In
conjunction with the reorganization of our operating segments effective July 1, 2010, we reassigned goodwill to
our reporting units using a relative fair value allocation approach.
(17) Quarterly Financial Data (Unaudited):
($ in thousands, except per share amounts)
First Quarter Second Quarter Third Quarter Fourth Quarter Total Year
2010
Revenue . . . . . . . . . . . . . . . . . . . . . . $519,849 $516,137 $1,402,968 $1,358,721 $3,797,675
Operating income . . . . . . . . . . . . . 161,862 136,411 234,045 239,680 771,998
Net income attributable to
common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . 42,565 35,121 28,995 45,992 152,673
Basic and diluted net income
per common share
attributable to common
shareholders of Frontier . . . . . $ 0.14 $ 0.11 $ 0.03 $ 0.05 $ 0.23
2009
Revenue . . . . . . . . . . . . . . . . . . . . . . $537,956 $532,142 $ 526,816 $ 520,980 $2,117,894
Operating income . . . . . . . . . . . . . 139,510 136,616 172,490 157,549 606,165
Net income attributable to
common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . 36,303 27,918 52,159 4,403 120,783
Basic and diluted net income
per common share
attributable to common
shareholders of Frontier . . . . . $ 0.12 $ 0.09 $ 0.17 $ 0.01 $ 0.38
The quarterly net income per common share amounts are rounded to the nearest cent. Annual net income
per common share may vary depending on the effect of such rounding. The change in basic and diluted net
income per share during the third quarter and fourth quarter of 2010 was primarily due to the increase in
weighted average shares outstanding as a result of the issuance of 678.5 million shares in connection with our
acquisition of the Acquired Business.
F-30
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements