Frontier Communications 2014 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2014 Frontier Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

(15) Quarterly Financial Data (Unaudited):
($ in thousands, except per share amounts)
First Quarter Second Quarter Third Quarter Fourth Quarter Total Year
2014
Revenue . . . . . . . . . . . . . . . . . . . . . $1,154,046 $1,147,265 $1,140,874 $1,330,305 $4,772,490
Operating income. . . . . . . . . . . . . 226,025 224,342 197,031 172,543 819,941
Net income attributable to
common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . 39,274 37,680 41,993 13,946 132,893
Basic net income per common
share attributable to
common shareholders of
Frontier . . . . . . . . . . . . . . . . . . . . $ 0.04 $ 0.04 $ 0.04 $ 0.01 $ 0.13
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
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. The change in
revenue, operating income, net income and net income per share during the fourth quarter of 2014
reflects the additional results of operations related to the Connecticut Acquisition, as described further
in Note 3.
We recognized $11 million ($7 million or $0.01 per share after tax), $20 million ($13 million or
$0.01 per share after tax), $42 million ($27 million or $0.03 per share after tax) and $70 million
($44 million or $0.04 per share after tax) of acquisition and integration costs during the first, second,
third and fourth quarters of 2014, respectively.
We recognized $10 million ($6 million or $0.01 per share after tax) of acquisition costs during the
fourth quarter of 2013.
We recognized $40 million ($25 million or $0.03 per share after tax) and $4 million ($2 million after
tax) of pension settlement costs in the third and fourth quarters of 2013, respectively.
We recognized $160 million ($99 million or $0.10 per share after tax) of losses on early
extinguishment of debt during the second quarter of 2013.
(16) 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
F-33
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements