Frontier Communications 2014 Annual Report Download - page 89

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The components of the net deferred income tax liability (asset) at December 31 are as follows:
($ in thousands) 2014 2013
Deferred income tax liabilities:
Property, plant and equipment basis differences . . . . . . . . . . . . . . $2,451,231 $1,950,720
Intangibles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,076,456 885,661
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,926 25,954
$3,551,613 $2,862,335
Deferred income tax assets:
Pension liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 247,490 216,890
Tax operating loss carryforward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162,085 130,733
Employee benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304,044 161,493
State tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (642) (642)
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,813 26,223
Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,078 11,957
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,016 42,915
823,884 589,569
Less: Valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (139,937) (112,671)
Net deferred income tax asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 683,947 476,898
Net deferred income tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,867,666 $2,385,437
Deferred tax assets and liabilities are reflected in the
following captions on the consolidated balance sheet:
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,938,907 $2,417,108
Income taxes and other current assets. . . . . . . . . . . . . . . . . . . . . . . (71,241) (31,671)
Net deferred income tax liability . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,867,666 $2,385,437
Our state tax operating loss carryforward as of December 31, 2014 is estimated at $3 billion. A
portion of our state loss carryforward will continue to expire annually through 2034, unless otherwise
used.
F-28
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements