FairPoint Communications 2004 Annual Report Download - page 101

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Revenues $96,361
Operating income 12,407
Net income 10,402
In addition to holding the 44.45% member interest in Tulsa, LLC, ICT has long-term debt consisting of variable rate
borrowings (5.50% at December 31, 2003) under a loan agreement with RTFC, due in quarterly installments of $0.7 million,
including interest, through 2006. The note is collateralized by the assets of ICT, including its investment in Tulsa, LLC. The
RTFC debt balance at December 31, 2003 was $6.0 million. The Company has issued an unsecured guarantee of the RTFC
debt. As of December 31, 2003, the amount of the unsecured guarantee was $1.5 million.
In January 2004, ICT sold its membership interest in Tulsa, LLC and, as a result, Chouteau Cellular Telephone
Company made a $2.5 million distribution to the Company. In conjunction with this sale, ICT paid the long-term debt owed to
RTFC, thereby eliminating the Company guarantee of the RTFC debt. Subsequent to the sale, the Company continues to
have an investment in Chouteau Cellular Telephone Company, but the partnership assets are minimal and do not include any
interests in the cellular telephone business of Chouteau.
During 2003, the Company sold its ownership percentages of Illinois Valley Cellular RSA 2-I Partnership, Illinois Valley
Cellular RSA 2-II Partnership, and Illinois Valley Cellular RSA 2-III Partnership. Proceeds from the sales of these investments
were $1.8 million and gross gains of approximately $0.4 million were realized on these sales.
During 2002, the Company determined that the carrying amount exceeded the estimated fair value of some investments
accounted for under the equity method, and such declines were "other-than-temporary." As such, the Company recorded a
noncash charge of $1.7 million and $2.7 million, respectively, for the Chouteau Cellular Telephone Company and the Illinois
Valley Cellular RSA 2—I, II, and III partnership investments. These charges are classified with the impairment on
investments in the consolidated statements of operations.
(c) Investments in Equity Securities Carried at Cost
The aggregate cost of the Company's cost method investments totaled $30.4 million at December 31, 2004. These
investments were not evaluated for impairment because (a) the Company did not estimate the fair value of those investments
in accordance with paragraphs 14 and 15 of SFAS No. 107  and
(b) the Company did not identify any events or circumstances that may have had a significant adverse effect on the fair value of
those investments.
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