Frontier Communications 2014 Annual Report Download - page 83

(8) Investment and Other Income, Net:
The components of investment and other income, net for the years ended December 31, 2014,
2013 and 2012 are as follows:
($ in thousands) 2014 2013 2012
Interest and dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,493 $2,401 $ 3,753
Investment gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 1,407 9,780
Gain on sale of Fairmount Cellular LLC . . . . . . . . . . . . . . . . . . . . . 25,000 — —
Gain on sale of 700 MHz spectrum . . . . . . . . . . . . . . . . . . . . . . . . . 12,041 — —
Gain on expiration/settlement of customer advances . . . . . . . . . 253 3,345 7,798
Split-dollar life insurance proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . — 2,263 —
All other, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209 (239) (1,199)
Total investment and other income, net . . . . . . . . . . . . . . . . . . . . . $38,996 $9,177 $20,132
During 2014, we sold assets that were unrelated to the Company’s operations and recognized a
gain of $25 million associated with the sale of our interest in Fairmount Cellular LLC and recognized a
gain of $12 million related to the sale of our 700 MHz spectrum.
During 2013 and 2012, we recognized income of $3 million and $8 million, respectively, in
connection with certain retained liabilities that have terminated, associated with customer advances for
construction from our disposed water properties.
During 2013 and 2012, we recognized investment gains of $1 million and $10 million, respectively,
associated with cash received in connection with our previously written-off investment in Adelphia.
During 2013 we recognized $2 million in the settlement of a split-dollar life insurance policy for a
former senior executive.
(9) Capital Stock:
We are authorized to issue up to 1,750,000,000 shares of common stock and 50,000,000 shares
of preferred stock. The amount and timing of dividends payable on common stock are, subject to
applicable law, within the sole discretion of our Board of Directors.
(10) Stock Plans:
At December 31, 2014, we had six stock-based compensation plans under which grants were
made and awards remained outstanding. No further awards may be granted under four of the plans:
the 1996 Equity Incentive Plan (the 1996 EIP), the Amended and Restated 2000 Equity Incentive Plan
(the 2000 EIP), the 2009 Equity Incentive Plan (the 2009 EIP) and the Non-Employee Directors’
Deferred Fee Equity Plan (the Deferred Fee Plan). At December 31, 2014, there were 22,540,761
shares authorized for grant and 14,253,934 shares available for grant under the 2013 Equity Incentive
Plan (the 2013 EIP and together with the 1996 EIP, the 2000 EIP and the 2009 EIP, the EIPs) and the
Non-Employee Directors’ Equity Incentive Plan (the Directors’ Equity Plan, and together with the
Deferred Fee Plan, the Director Plans). Our general policy is to issue shares from treasury upon the
grant of restricted shares and the exercise of options.
1996, 2000, 2009 and 2013 Equity Incentive Plans
Since the expiration dates of the 1996 EIP, the 2000 EIP and the 2009 EIP on May 22, 2006, May
14, 2009 and May 8, 2013, respectively, no awards have been or may be granted under the 1996 EIP,
the 2000 EIP and the 2009 EIP. Under the 2013 EIP, awards of our common stock may be granted to
eligible officers, management employees and non-management employees in the form of incentive
stock options, non-qualified stock options, SARs, restricted stock, performance shares or other stock-
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FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements