Frontier Communications 2011 Annual Report Download - page 83

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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
F-20
(8) Investment Income:
The components of investment income for the years ended December 31, 2011, 2010 and 2009 are as follows:
($ in thousands) 2011 2010 2009
Interest and dividend income 2,184$ 3,471$ 5,291$
Investment gain 1,071 3,010 -
Equity earnings (864) 367 994
Total investment income 2,391$ 6,848$ 6,285$
During 2011 and 2010, we recognized gains of $1.1 million and $3.0 million associated with cash received on a
previously written-off investment.
(9) Other Income (Loss), Net:
The components of other income (loss), net for the years ended December 31, 2011, 2010 and 2009 are as follows:
($ in thousands)
2011 2010
2009
Gain on expiration/settlement of customer advances, net 7,605$ 4,973$ 2,741$
Litigation settlement proceeds 1,495 3,364 2,749
Split dollar life insurance policy settlement - 4,454 -
Loss on retirement of debt, net - - (45,939)
Other, net 35 899 (678)
Total other income (loss), net 9,135$ 13,690$ (41,127)$
During 2011, 2010 and 2009, we recognized income of $7.6 million, $5.0 million and $2.7 million, respectively, in
connection with certain retained liabilities that have terminated, associated with customer advances for construction
from our disposed water properties.
During 2011 and 2010, we recognized $1.5 million and $3.4 million, respectively, in settlement proceeds related to
litigation arising from businesses that the Company exited several years ago. During 2010, we recognized a gain of
$4.5 million on the settlement of a split-dollar life insurance policy.
During the fourth quarter of 2009, we recognized a loss of $53.7 million on the early retirement of debt in connection
with a $700.0 million debt tender offer. During 2009, we also recognized a $7.8 million gain as a result of repurchasing
$396.7 million principal amount of debt. During 2009, we recorded litigation settlement proceeds of $2.7 million in
connection with the Bangor, Maine legal matter.
(10) Capital Stock:
On October 27, 2009, in conjunction with the shareholder vote to approve the Transaction, our stockholders approved
an increase in the number of authorized shares of Frontier common stock from 600,000,000 to 1,750,000,000. The
Certificate of Amendment to our Restated Certificate of Incorporation effectuating the increase was filed and became
effective immediately prior to the effective date of the Transaction. The amount and timing of dividends payable on
common stock are, subject to applicable law, within the sole discretion of our Board of Directors.
(11) Stock Plans:
At December 31, 2011, we had five stock-based compensation plans under which grants were made and awards
remained outstanding. These plans, which are described below, are the 1996 Equity Incentive Plan (1996 EIP), the
Amended and Restated 2000 Equity Incentive Plan (2000 EIP), the Non-Employee Directors’ Deferred Fee Equity Plan
(Deferred Fee Plan), the Non-Employee Directors’ Equity Incentive Plan (Directors’ Equity Plan, and together with the