FairPoint Communications 2006 Annual Report Download - page 150
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Generals in a number of states also are investigating certain sales, marketing and advertising practices . All of the above matters are subject to many
uncertainties, and outcomes are not predictable with assurance.
The Partnership may be allocated a portion of the damages that may result upon adjudication of these matters if the claimants prevail in their actions.
Consequently, the ultimate liability with respect to these matters at December 31, 2006 cannot be ascertained. The potential effect, if any, on the financial
condition and results of operations of the Partnership, in the period in which these matters are resolved, may be material.
In addition to the aforementioned matters, Cellco is subject to various other legal actions and claims in the normal course of business. While Cellco’s legal
counsel cannot give assurance as to the outcome of each of these matters, in management’s opinion, based on the advice of such legal counsel, the ultimate
liability with respect to any of these actions, or all of them combined, will not materially affect the financial statements of the Partnership.
7. RECONCILIATION OF ALLOWANCE FOR DOUBTFUL ACCOUNTS
Balance at Additions Write-offs Balance at
Beginning Charged to Net of End
of the Year Operations Recoveries of the Year
Accounts Receivable Allowances:
2006 $ — $ — $ — $ —
2005 $ — $ — $ — $ —
2004 $20 $ — $ (20) $ —
8. SUBSEQUENT EVENTS
Effective January 15, 2007, the General Partner, Cellco and Taconic entered into a Partnership interest Purchase Agreement where Taconic agreed to sell
its 7.5% limited partnership interest to Cellco. On February 20, 2007, Warwick notified Cellco it exercised its right to purchase a proportionate share of
Taconic’s interest at the offer price.
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