FairPoint Communications 2013 Annual Report Download - page 93

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91
Income Tax Returns
The Company and its eligible subsidiaries file consolidated income tax returns in the United States federal jurisdiction and
certain consolidated, combined and separate entity tax returns, as required, with various state and local governments. The Company
is no longer subject to United States federal, state and local, or non-United States income tax examinations by tax authorities for
years prior to 2009. NOL carryovers from closed tax years may be subject to examination by federal or state taxing authorities if
utilized in a year open to examination. As of December 31, 2013 and 2012, respectively, the Company does not have any significant
jurisdictional tax audits.
(13) Accumulated Other Comprehensive Loss
Components of accumulated other comprehensive loss, net of income tax, were as follows (in thousands):
In thousands December 31, 2013 December 31, 2012
Accumulated other comprehensive loss, net of taxes:
Change in the fair value of interest rate swaps $ (601) $ —
Qualified pension and post-retirement healthcare plans (159,178) (255,989)
Total accumulated other comprehensive loss $ (159,779) $ (255,989)
Other comprehensive (loss) income for the year ended December 31, 2013 includes changes in the fair value of the Company's
cash flow hedges and actuarial losses related to the qualified pension and post-retirement healthcare plans arising during the
respective periods and amortization of these actuarial losses. Other comprehensive (loss) income for the year ended December 31,
2012, the 341 days ended December 31, 2011 and the 24 days ended January 24, 2011 includes actuarial losses arising during the
respective periods and amortization of these actuarial losses. For further detail of amounts recognized in other comprehensive
(loss) income related to the cash flow hedges, see note (9) "Interest Rate Swap Agreements" herein. For further detail of amounts
recognized in other comprehensive (loss) income related to the qualified pension and post-retirement healthcare plans, see note
(11) "Employee Benefit Plans—Plan Assets, Obligations and Funded Status—Other Comprehensive Loss (Income)" herein.
The following table provides a reconciliation of adjustments reclassified from accumulated other comprehensive loss to the
statement of operations (in thousands):
Year Ended
December 31,
2013
Employee benefits:
Amortization of actuarial loss (a) $ 12,983
Plan settlement (a) 1,683
Total employee benefit amounts reclassified from accumulated other comprehensive loss 14,666
Tax expense (4,696)
Total employee benefit amounts reclassified from accumulated other comprehensive loss, net $ 9,970
(a) These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost.
See note (11) "Employee Benefit Plans" for details.
There were no amounts reclassified from accumulated other comprehensive loss related to interest rate swaps for the year
ended December 31, 2013.
(14) Earnings Per Share
Earnings per share has been computed in accordance with the Earnings Per Share Topic of the ASC. Basic earnings per share
of the Company is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding
for the period. Except when the effect would be anti-dilutive, the diluted earnings per share calculation calculated using the treasury
stock method includes the impact of stock units, shares of non-vested restricted stock and shares that could be issued under
outstanding stock options.