Frontier Communications 2011 Annual Report Download - page 77

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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
F-14
(5) Property, Plant and Equipment:
The components of property, plant and equipment at December 31, 2011 and 2010 are as follows:
Estimated
($ in thousands) Useful Lives 2011 2010
Land N/A 128,855$ 133,366$
Buildings and leasehold improvements 41 years 1,050,555 1,131,787
General support 5 to 17 years 914,777 604,524
Central office/electronic circuit equipment 5 to 11 years 4,582,296 4,319,795
Poles 49 years 471,561 436,126
Cable and wire 15 to 30 years 5,727,310 5,447,566
Conduit 60 years 342,868 344,159
Other 20 to 30 years 35,534 29,184
Construction work in progress 384,380 348,773
Property, plant and equipment 13,638,136 12,795,280
Less: Accumulated depreciation (6,090,613) (5,204,666)
Property, plant and equipment, ne
t
7,547,523$ 7,590,614$
Depreciation expense is principally based on the composite group method. Depreciation expense was $881.5 million,
$599.7 million and $362.2 million for the years ended December 31, 2011, 2010 and 2009, respectively. As a result of
an independent study of the estimated remaining useful lives of our Frontier legacy plant assets, we adopted new
estimated remaining useful lives for certain plant assets as of October 1, 2010. In addition, we commissioned an
independent study to determine the estimated remaining useful lives of plant assets for our Acquired Business. These
new lives were adopted effective July 1, 2010. The latest study was completed in the fourth quarter of 2011 and after
review and analysis of the results, we adopted new estimated remaining useful lives for certain plant assets as of
October 1, 2011.
(6) Goodwill and Other Intangibles:
The components of goodwill by the reporting units in effect at December 31, 2011 are as follows:
($ in thousands) 2011
East $ 1,245,414
Southeast 1,113,931
West 1,072,499
Central 1,006,132
National 1,176,139
Midwest 723,604
Total Goodwill $ 6,337,719