Frontier Communications 2011 Annual Report Download - page 34

FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
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• Our ability to effectively manage our operations, operating expenses and capital expenditures, and to repay, reduce or
refinance our debt;
• The effects of changes in both general and local economic conditions on the markets that we serve, which can affect
demand for our products and services, customer purchasing decisions, collectability of revenues and required levels of
capital expenditures related to new construction of residences and businesses;
• The effects of technological changes and competition on our capital expenditures and product and service offerings,
including the lack of assurance that our network improvements will be sufficient to meet or exceed the capabilities and
quality of competing networks;
• The effects of increased medical and pension expenses and related funding requirements;
• Changes in income tax rates, tax laws, regulations or rulings, or federal or state tax assessments;
• The effects of state regulatory cash management practices that could limit our ability to transfer cash among our
subsidiaries or dividend funds up to the parent company;
• Our ability to successfully renegotiate union contracts expiring in 2012 and thereafter;
• Changes in pension plan assumptions and/or the value of our pension plan assets, which would require us to make
increased contributions to the pension plan in 2013 and beyond;
• The effects of customer bankruptcies and home foreclosures, which could result in difficulty in collection of revenues
and loss of customers;
• Adverse changes in the credit markets or in the ratings given to our debt securities by nationally accredited ratings
organizations, which could limit or restrict the availability, or increase the cost, of financing;
• Limitations on the amount of capital stock that we can issue to make acquisitions or to raise additional capital until July
2012;
• Our ability to pay dividends on our common shares, which may be affected by our cash flow from operations, amount of
capital expenditures, debt service requirements, cash paid for income taxes and liquidity; and
• The effects of severe weather events such as hurricanes, tornados, ice storms or other natural or man-made disasters.
Any of the foregoing events, or other events, could cause financial information to vary from management’s forward-looking
statements included in this report. You should consider these important factors, as well as the risks set forth under Item 1A.
“Risk Factors,” in evaluating any statement in this report on Form 10-K or otherwise made by us or on our behalf. The
following information is unaudited and should be read in conjunction with the consolidated financial statements and related
notes included in this report. We have no obligation to update or revise these forward-looking statements and do not
undertake to do so.
Investors should also be aware that while we do, at various times, communicate with securities analysts, it is against our
policy to disclose to them selectively any material non-public information or other confidential information. Accordingly,
investors should not assume that we agree with any statement or report issued by an analyst irrespective of the content of the
statement or report. To the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such
reports are not our responsibility.
Expected Cost Savings Resulting from the Transaction
Based on current estimates and assumptions, we expect to achieve additional cost savings as a result of the Transaction,
principally (1) by leveraging the scalability of our existing corporate administrative functions, information technology and
network systems to cover certain former Acquired Business functions and systems, (2) by in-sourcing certain functions