Frontier Communications 2014 Annual Report Download - page 19

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•adverse changes in the credit markets or in the ratings given to our debt securities by nationally
accredited ratings organizations, which could limit or restrict the ability, or increase the cost, of
financing to us;
•the effects of state regulatory cash management practices that could limit our ability to transfer
cash among our subsidiaries or dividend funds up to the parent company;
•the effects of severe weather events or other natural or man-made disasters, which may
increase our operating expenses or adversely impact customer revenue; and
•the impact of potential information technology or data security breaches or other disruptions.
Any of the foregoing events, or other events, could cause financial information to vary from
management’s forward-looking statements included in this report. You should consider these important
factors, as well as the risks set forth under Item 1A. “Risk Factors,” in evaluating any statement in this
report on Form 10-K or otherwise made by us or on our behalf. The following information is unaudited
and should be read in conjunction with the consolidated financial statements and related notes
included in this report. We have no obligation to update or revise these forward-looking statements and
do not undertake to do so.
Investors should also be aware that while we do, at various times, communicate with securities
analysts, it is against our policy to disclose to them selectively any material non-public information or
other confidential information. Accordingly, investors should not assume that we agree with any
statement or report issued by an analyst irrespective of the content of the statement or report. To the
extent that reports issued by securities analysts contain any projections, forecasts or opinions, such
reports are not our responsibility.
Item 1A. Risk Factors
Before you make an investment decision with respect to any of our securities, you should carefully
consider all the information we have included in this Form 10-K and our subsequent periodic filings
with the SEC. In particular, you should carefully consider the risk factors described below and the risks
and uncertainties related to “Forward-Looking Statements,” any of which could materially adversely
affect our business, operating results, financial condition and the actual outcome of matters as to which
forward-looking statements are made in this annual report. The risks and uncertainties described below
are not the only ones facing our Company. Additional risks and uncertainties that are not presently
known to us or that we currently deem immaterial or that are not specific to us, such as general
economic conditions, may also adversely affect our business and operations. The following risk factors
should be read in conjunction with the balance of this annual report, including the consolidated financial
statements and related notes included in this report.
Risks Related to the Verizon Transaction
We may not consummate the Verizon Transaction on the terms or timeline currently
contemplated or at all.
The consummation of the Verizon Transaction is subject to certain conditions, including (i) the
absence of a court or other governmental order prohibiting consummation of the transaction, (ii) the
receipt of applicable regulatory consents, (iii) the absence of a material adverse effect on the business
to be acquired from Verizon and (iv) other customary closing conditions. We can make no assurances
that the Verizon Transaction will be consummated on the terms or timeline currently contemplated, or
at all. We have expended and will continue to expend a significant amount of capital and
management’s time and resources on the Verizon Transaction, and a failure to consummate the
Verizon Transaction as currently contemplated, or at all, could have an adverse effect on our business,
our results of operations and cash flows. In addition, we may choose to raise all or a portion of the
financing required to complete the Verizon Transaction prior to the closing of such transaction. If we do
so, and if the Verizon Transaction is ultimately not consummated or is delayed for a significant period
of time, we could be obligated to pay significant interest expense, dividends and other costs in
18
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES