FairPoint Communications 2006 Annual Report Download - page 94
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(a) Competitive Communications Business Operations
In November 2001, in connection with the sale of certain of certain assets of its competitive communications operations, the Company announced its
plan to discontinue the competitive communications business operations of its wholly owned subsidiary, Carrier Services. As a result of the adoption of the
plan to discontinue the competitive communications operations, these results are presented as discontinued operations.
During 2004, the Company revised its assumptions on certain lease obligations related to the restructuring accrual and as a result, increased the
obligation by $0.1 million in 2004. Also during 2004, accrued liabilities associated with the discontinued operations were re-evaluated, or settled for less than
original estimates and as a result, these obligations were adjusted by $0.6 million.
In 2006 and 2005, the Company settled certain lease obligations which reduced the remaining obligations related to discontinued operations. As a result,
the Company reduced the obligation by $0.9 million and $0.6 million, respectively, to properly reflect the on-going obligations of the Company.
Assets and liabilities of discontinued operations of Carrier Services as of December 31, 2006 and 2005 follows (in thousands):
Accounts receivable $ — $ 90
Current assets of discontinued operations $ — $ 90
Accrued liabilities $(486) $ (1,133)
Restructuring accrual —(1,312)
Accrued property taxes —(50)
Current liabilities of discontinued operations $(486)$(2,495)
Selected information relating to the restructuring charge follows (in thousands):
Restructuring accrual as of December 31, 2003 $5,253
Adjustments from initial estimated charges 80
Cash payments (2,682)
Restructuring accrual as of December 31, 2004 2,651
Adjustments from initial estimated charges (600)
Cash payments (739)
Restructuring accrual as of December 31, 2005 1,312
Adjustments from initial estimated charges (270)
Cash payments (1,042)
Restructuring accrual as of December 31, 2006 $ —
92