Frontier Communications 2012 Annual Report Download - page 66

FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Explanatory Note
Effective July 1, 2010, Frontier’s scope of operations and balance sheet capitalization changed materially
as a result of the completion of the Transaction, as described in Note 3 of the Notes to Consolidated Financial
Statements. Historical financial data presented for Frontier is not indicative of the future financial position or
operating results for Frontier, and includes the results of operations of the Acquired Business, as defined in
Note 3 of the Notes to Consolidated Financial Statements, from the date of acquisition on July 1, 2010.
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2012 AND 2011
($ in thousands)
2012 2011
ASSETS
Current assets:
Cash and cash equivalents ........................................... $ 1,326,532 $ 326,094
Accounts receivable, less allowances of $93,267 and $107,048,
respectively. . ..................................................... 533,704 585,157
Restricted cash . ..................................................... 15,408 —
Prepaid expenses .................................................... 66,972 63,422
Income taxes and other current assets ................................ 144,587 264,357
Total current assets . ............................................ 2,087,203 1,239,030
Restricted cash .......................................................... 27,252 144,680
Property, plant and equipment, net ........................................ 7,504,896 7,547,523
Goodwill . . .............................................................. 6,337,719 6,337,719
Other intangibles, net .................................................... 1,542,739 1,964,505
Other assets ............................................................. 233,822 214,862
Total assets .................................................... $17,733,631 $17,448,319
LIABILITIES AND EQUITY
Current liabilities:
Long-term debt due within one year.................................. $ 560,550 $ 94,016
Accounts payable ................................................... 338,148 519,548
Advanced billings ................................................... 146,317 152,784
Accrued other taxes ................................................. 66,342 64,392
Accrued interest..................................................... 209,327 169,340
Other current liabilities . . ............................................ 232,836 152,136
Total current liabilities .......................................... 1,553,520 1,152,216
Deferred income taxes ................................................... 2,357,210 2,458,018
Pension and other postretirement benefits ................................. 1,055,058 918,701
Other liabilities .......................................................... 266,625 225,858
Long-term debt .......................................................... 8,381,947 8,224,392
Equity:
Shareholders’ equity of Frontier:
Common stock, $0.25 par value (1,750,000,000 authorized shares,
998,410,000 and 995,128,000 outstanding, respectively, and
1,027,986,000 issued, at December 31, 2012 and 2011) ............. 256,997 256,997
Additional paid-in capital ............................................ 4,639,563 4,773,383
Retained earnings ................................................... 63,205 226,721
Accumulated other comprehensive loss, net of tax . . . ................. (483,576) (386,963)
Treasury stock . ..................................................... (368,593) (415,001)
Total shareholders’ equity of Frontier . . .......................... 4,107,596 4,455,137
Noncontrolling interest in a partnership ............................... 11,675 13,997
Total equity .................................................... 4,119,271 4,469,134
Total liabilities and equity .................................. $17,733,631 $17,448,319
The accompanying Notes are an integral part of these Consolidated Financial Statements
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