Frontier Communications 2013 Annual Report Download - page 93

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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
2013
Revenue . . . . . . . . . . . . . . . . . . . . . . $1,205,396 $1,190,533 $1,185,278 $1,180,369 $4,761,576
Operating income . . . . . . . . . . . . . 250,824 266,156 206,172 257,569 980,721
Net income (loss) attributable
to common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . 48,140 (38,460) 35,400 67,755 112,835
Basic net income (loss) per
common share attributable to
common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . $ 0.05 $ (0.04) $ 0.04 $ 0.07 $ 0.11
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
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 $9.7 million ($6.1 million or $0.01 per share after tax) of acquisition costs during the
fourth quarter of 2013.
We recognized $40.3 million ($25.0 million or $0.03 per share after tax) and $3.9 million ($2.4 million
after tax) of pension settlement costs in the third and fourth quarters of 2013, respectively.
We recognized $159.8 million ($98.9 million or $0.10 per share after tax) of losses on early
extinguishment of debt during the second quarter of 2013.
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 after tax), and $13.5 million ($9.1 million or $0.01 per
share after tax) of integration costs during the first, second, third and fourth quarters of 2012, respectively.
We recognized $70.8 million ($44.5 million or $0.04 per share after tax), $0.2 million ($0.2 million after
tax) and $19.3 million ($12.1 million or $0.01 per share after tax) of losses on early extinguishment of debt
during the second, third and fourth quarters of 2012, 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
include the following: discount rates, expected long-term rate of return on plan assets, future compensation
increases, employee turnover, healthcare cost trend rates, expected retirement age, optional form of benefit and
F-31
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements