Frontier Communications 2012 Annual Report Download - page 75

($ in thousands)
Total transaction consideration: ............................. $5,411,705
Current assets ......................................... $ 454,513
Property, plant & equipment ........................... 4,407,676
Goodwill.............................................. 3,695,397
Other intangibles–primarily customer list. . .............. 2,532,200
Other noncurrent assets ................................ 75,092
Current liabilities ...................................... (483,118)
Deferred income taxes . ................................ (1,476,813)
Long-term debt........................................ (3,456,782)
Other liabilities........................................ (336,460)
Total net assets acquired . . . ................................ $ 5,411,705
The fair value of the total consideration issued to acquire the Acquired Business amounted to $5.4 billion
and included $5.2 billion for the issuance of Frontier common shares and cash payments of $105.0 million. As
a result of the Transaction, Verizon stockholders received 678,530,386 shares of Frontier common stock.
Immediately after the closing of the Transaction, Verizon stockholders owned 68.4% of the combined
company’s outstanding equity, and existing Frontier stockholders owned 31.6% of the combined company’s
outstanding equity.
The following unaudited pro forma financial information presents the combined results of operations of
Frontier and the Acquired Business as if the Transaction had occurred as of January 1, 2010. The pro forma
information is not necessarily indicative of what the financial position or results of operations actually would
have been had the Transaction been completed as of January 1, 2010. In addition, the unaudited pro forma
financial information is not indicative of, nor does it purport to project, the future financial position or
operating results of Frontier. The unaudited pro forma financial information excludes acquisition and
integration costs and does not give effect to any estimated and potential cost savings or other operating
efficiencies that could result from the Transaction.
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENTS OF OPERATIONS INFORMATION
($ in millions, except per share amounts)
For the year ended
December 31, 2010
Revenue ............................................................ $5,652
Operating income ................................................... $1,192
Net income attributable to common shareholders of Frontier........... $ 324
Basic and diluted net income per common share attributable to
common shareholders of Frontier .................................. $ 0.33
(4) Accounts Receivable:
The components of accounts receivable, net at December 31, 2012 and 2011 are as follows:
($ in thousands) 2012 2011
Retail and wholesale........................................... $581,152 $ 639,842
Other . ........................................................ 45,819 52,363
Less: Allowance for doubtful accounts.......................... (93,267) (107,048)
Accounts receivable, net . . ..................................... $533,704 $ 585,157
F-14
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements