Frontier Communications 2011 Annual Report Download - page 76

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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
F-13
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENTS OF OPERATIONS INFORMATION
For the year ended December 31,
2010 2009
($ in millions, except per share amounts)
Revenue $ 5,652 $ 6,071
Operating income
$
1,192
$
1,373
Net income attributable to common
shareholders of Frontier
$
324
$
433
Basic and diluted net income per common
share attributable to common
shareholders of Frontier
$
0.33
$
0.44
(4) Accounts Receivable:
The components of accounts receivable, net at December 31, 2011 and 2010 are as follows:
($ in thousands) 2011 2010
Retail and wholesale 670,842$ 588,147$
Other 52,363 53,732
Less: Allowance for doubtful accounts (107,048) (73,571)
Accounts receivable, net 616,157$ 568,308$
Retail and wholesale accounts receivable and the allowance for doubtful accounts are presented net of a fair value
adjustment of $9,794 and $44,859 at December 31, 2011 and 2010, respectively.
An analysis of the activity in the allowance for doubtful accounts for the years ended December 31, 2011, 2010 and
2009 is as follows:
Balance at Charged to Charged to other Balance at
beginning of bad debt accounts - end of
($ in thousands) Period expense Revenue Deductions Period
2009 40,125$ 33,682$ (6,181)$ (37,455)$ 30,171$
2010 30,171 55,161 14,873 (26,634) 73,571
2011 73,571 93,721 16,403 (76,647) 107,048
Additions
We maintain an allowance for estimated bad debts based on our estimate of our ability to collect accounts receivable.
Bad debt expense is recorded as a reduction to revenue.