The Transactions

12 Months Ended

Dec. 31, 2013

The Transactions [Abstract]

The Transactions

(3)   The Transactions:

The 2010 Transaction

On July 1, 2010, the Company acquired the defined assets and liabilities of the local exchange business and related landline activities of Verizon Communications Inc. (Verizon) in 14 states (the Acquired Territories), including Internet access and long distance services and broadband video provided to designated customers in the Acquired Territories (the 2010 Acquired Business).  Frontier was considered the acquirer of the 2010 Acquired Business for accounting purposes.

The Company accounted for its acquisition of the 2010 Acquired Business (the 2010 Transaction) using the guidance included in ASC Topic 805. We incurred $81.7 million and $143.1million of integration related costs in connection with the 2010 Transaction during the years ended December 31, 2012 and 2011, respectively.  Such costs are required to be expensed as incurred and are reflected in “Acquisition and integration costs” in our consolidated statements of operations.   All integration activities for the 2010 Transaction were completed as of the end of 2012.

The AT&T Transaction

On December 17, 2013, the Company announced that it entered into an agreement to acquire the wireline properties of AT&T Inc. (AT&T) in Connecticut (the AT&T Transaction) for a purchase price of $2.0 billion in cash, with adjustments for working capital.  Upon completion of the AT&T Transaction, Frontier will operate AT&T’s wireline business and fiber optic network that provides services to residential, commercial and wholesale customers in Connecticut.  The Company will also acquire AT&T’s U-verse® video and satellite TV customers in Connecticut.  We incurred $9.7 million of acquisition related costs in connection with the AT&T Transaction during the fourth quarter of 2013.