Frontier Communications 2012 Annual Report Download - page 92

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(16) Quarterly Financial Data (Unaudited):
($ in thousands, except per share amounts)
First Quarter Second Quarter Third Quarter Fourth Quarter Total Year
2012
Revenue . . . . . . . . . . . . . . . . . . . . . . $1,268,054 $1,258,777 $1,252,469 $1,232,553 $5,011,853
Operating income . . . . . . . . . . . . . 208,458 267,784 275,196 235,730 987,168
Net income attributable to
common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . 26,768 17,989 67,000 24,879 136,636
Basic net income per common
share attributable to common
shareholders of Frontier . . . . . $ 0.03 $ 0.02 $ 0.07 $ 0.02 $ 0.14
2011
Revenue . . . . . . . . . . . . . . . . . . . . . . $1,346,697 $1,322,255 $1,290,939 $1,283,152 $5,243,043
Operating income . . . . . . . . . . . . . 250,593 238,280 180,291 230,457 899,621
Net income attributable to
common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . 54,711 32,261 20,395 42,247 149,614
Basic net income per common
share attributable to common
shareholders of Frontier . . . . . $ 0.05 $ 0.03 $ 0.02 $ 0.04 $ 0.15
The quarterly net income per common share amounts are rounded to the nearest cent. Annual net income
per common share may vary depending on the effect of such rounding.
We recognized $35.1 million ($21.7 million or $0.02 per share after tax), $28.6 million ($18.1 million or
$0.02 per share after tax), $4.5 million ($2.9 million or $0.00 per share after tax), and $13.5 million ($9.1
million or $0.01 per share after tax) of acquisition and integration costs during the first, second, third and fourth
quarters of 2012, respectively.
We recognized $6.5 million ($4.0 million or $0.00 per share after tax), $1.5 million ($0.9 million or $0.00
per share after tax), $6.8 million ($4.5 million or $0.00 per share after tax), and $17.2 million ($11.5 million or
$0.01 per share after tax) of severance costs during the first, second, third and fourth quarters of 2012,
respectively.
We recognized $13.2 million ($8.2 million or $0.01 per share after tax), $20.3 million ($12.6 million or
$0.01 per share after tax), $67.4 million ($41.6 million or $0.04 per share after tax), and $42.2 million ($26.1
million or $0.03 per share after tax) of acquisition and integration costs during the first, second, third and fourth
quarters of 2011, respectively.
We recognized $0.1 million ($0.1 million or $0.00 per share after tax), $11.0 million ($6.8 million or
$0.01 per share after tax), $3.6 million ($2.2 million or $0.00 per share after tax), and $1.1 million ($0.7
million or $0.00 per share after tax) of severance costs during the first, second, third and fourth quarters of
2011, respectively.
(17) Retirement Plans:
We sponsor a noncontributory defined benefit pension plan covering a significant number of our former
and current employees and other postretirement benefit plans that provide medical, dental, life insurance and
other benefits for covered retired employees and their beneficiaries and covered dependents. The benefits are
based on years of service and final average pay or career average pay. Contributions are made in amounts
sufficient to meet ERISA funding requirements while considering tax deductibility. Plan assets are invested in a
diversified portfolio of equity and fixed-income securities and alternative investments.
The accounting results for pension and other postretirement benefit costs and obligations are dependent
upon various actuarial assumptions applied in the determination of such amounts. These actuarial assumptions
F-31
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements