Frontier Communications 2014 Annual Report Download - page 78

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The components of other intangibles at December 31, 2014 and 2013 are as follows:
($ in thousands)
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
Gross Carrying
Amount
Accumulated
Amortization
Net Carrying
Amount
2014 2013
Other Intangibles:
Customer base. . . . $3,017,648 $(1,640,324) $1,377,324 $2,427,648 $(1,336,852) $1,090,796
Trade name and
license. . . . . . . . . . 122,540 — 122,540 124,136 — 124,136
Total other
intangibles . . . . $3,140,188 $(1,640,324) $1,499,864 $2,551,784 $(1,336,852) $1,214,932
Amortization expense was $303 million, $328 million and $422 million for the years ended
December 31, 2014, 2013 and 2012, respectively. Amortization expense mainly represents the
accelerated amortization of our customer base acquired as a result of the Connecticut Acquisition and
an acquisition of certain Verizon Communications Inc. properties in 2010 (the 2010 Acquisition) based
on a useful life of nine to 12 years. Amortization expense for 2012 included $38 million for amortization
associated with certain software licenses that were acquired in the 2010 Acquisition and are no longer
required for operations as a result of the completed systems conversions and $11 million for
amortization associated with certain properties, each of which were fully amortized in 2012.
Amortization expense, based on our current estimate of useful lives, is estimated to be approximately
$345 million in 2015, $290 million in 2016, $235 million in 2017, $180 million in 2018 and $125 million
in 2019.
(7) Long-Term Debt:
The activity in our long-term debt from December 31, 2013 to December 31, 2014 is summarized
as follows:
($ in thousands)
December 31,
2013
Payments
and
Retirements
New
Borrowings
December 31,
2014
Interest
Rate at
December 31,
2014*
Year Ended
December 31, 2014
Senior Unsecured Debt . . . . . . . . . . . . $8,107,066 $(257,500) $1,900,000 $9,749,566 7.63%
Other Secured Debt . . . . . . . . . . . . . . . 13,550 (2,019) 11,125 22,656 3.77%
Rural Utilities Service Loan
Contracts . . . . . . . . . . . . . . . . . . . . . . . 8,930 (416) — 8,514 6.15%
TOTAL LONG-TERM DEBT . . . . . . . $8,129,546 $(259,935) $1,911,125 $9,780,736 7.62%
Less: Debt (Discount)/Premium . . . . 2,037 2,501
Less: Current Portion . . . . . . . . . . . . . . (257,916) (297,622)
$7,873,667 $9,485,615
* Interest rate includes amortization of debt issuance costs and debt premiums or discounts. The
interest rates at December 31, 2014 represent a weighted average of multiple issuances.
F-17
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements