FairPoint Communications 2004 Annual Report Download - page 98

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(a) Marketable Equity Securities
The cost, unrealized holding gains and losses, and fair value of the Company's marketable equity investments classified
as available-for-sale at December 31, 2004 and 2003 are summarized below (dollars in thousands):
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December 31, 2004 $ — — — —
December 31, 2003 420 1,469 — 1,889
The Company continually evaluates its investment holdings for evidence of impairment. During 2002, the Company
determined that the decline in market value of its Choice One common stock was "other-than-temporary." As such, the
Company recorded a noncash charge of $8.2 million. This charge is classified with the impairment on investments in the
consolidated statements of operations.
Following an August 2, 2004 announcement by Choice One of a financial restructuring under Chapter 11 of the United
States Bankruptcy Code, the quoted market value of the Company's investment in Choice One Communications Inc.'s
common stock declined to $33,000. The Company determined that the decline in fair value was other-than-temporary and
recorded an impairment loss of $0.5 million in the third quarter of 2004, of which $0.4 million was recorded as an expense in
the consolidated statement of operations and $0.1 million was recorded as a reduction in accumulated other comprehensive
income. On November 8, 2004, Choice One exited Chapter 11 and, in accordance with its plan of reorganization, Choice
One's preferred stockholders and common stockholders did not receive any recovery and all of the preferred stock and common
stock has now been cancelled.
Proceeds from sales of available-for-sale securities were $0.3 million, $0.3 million, and $0.4 million in 2004, 2003, and
2002, respectively. Gross gains of $0.1 million, $0.1 million, and approximately $7,000 in 2004, 2003, and 2002, respectively,
were realized on those sales.
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