Frontier Communications 2011 Annual Report Download - page 89

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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
F-26
($ in thousands) 2011 2010
Deferred income tax liabilities:
Property, plant and equipment basis differences 1,896,666$ 1,448,061$
Intangibles 997,455 1,145,760
Other, net 17,584 10,170
2,911,705 2,603,991
Deferred income tax assets:
Pension liability 246,714 176,579
Tax operating loss carryforward 294,171 148,338
Employee benefits 154,711 189,558
State tax liability 7,358 13,241
Accrued expenses 27,645 75,407
Allowance for doubtful accounts 42,733 37,511
Other, net 22,313 4,238
795,645 644,872
Less: Valuation allowance (108,662) (115,585)
Net deferred income tax asset 686,983 529,287
Net deferred income tax liabilit
y
2,224,722$ 2,074,704$
Deferred tax assets and liabilities are reflected in the following
captions on the consolidated balance sheet:
Deferred income taxes 2,458,018$ 2,220,677$
Income taxes and other current assets (233,296) (145,973)
Net deferred income tax liability 2,224,722$ 2,074,704$
Our federal net operating loss carryforward as of December 31, 2011 is estimated as $503 million and our state tax
operating loss carryforward as of December 31, 2011 is estimated at $1.9 billion. A portion of our state loss
carryforward begins to expire in 2012.
The provision (benefit) for Federal and state income taxes, as well as the taxes charged or credited to shareholders’
equity of Frontier, includes amounts both payable currently and deferred for payment in future periods as indicated
below:
($ in thousands) 2011 2010 2009
Income taxes charged to the consolidated statement of
operations:
Current:
Federal (13,320)$ 18,302$ 11,618$
State 14,252 10,260 (2,630)
Total current 932 28,562 8,988
Deferred:
Federal 77,750 82,080 49,916
State 9,661 4,357 11,024
Total deferred 87,411 86,437 60,940
Total income taxes charged to the consolidated statement of 88,343 114,999 69,928
operations
Income taxes charged (credited) to shareholders' equity of Frontier:
Current benefit arising from stock options exercised and restricted stock - - 881
Deferred income taxes (benefits) arising from the recognition of
additional pension/OPEB liability (97,409) 17,501 (4,353)
Total income taxes charged (credited) to shareholders' equity of Frontier (97,409) 17,501 (3,472)
Total income taxes (9,066)$ 132,500$ 66,456$