Frontier Communications 2004 Annual Report Download - page 62

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
F-18
(8) Discontinued Operations and Net Assets Held for Sale:
On August 24, 1999, our Board of Directors approved a plan of divestiture for our public utilities services businesses,
which included our water, gas and electric businesses. All of these properties have been sold.
Water and Wastewater
On January 15, 2002, we completed the sale of our water and wastewater operations for $859,100,000 in cash
and $122,500,000 of assumed debt and other liabilities. The pre-tax gain on the disposal of the water segment
was $316,700,000.
Discontinued operations in the consolidated statements of operations reflect the results of operations of the
water/wastewater properties sold in January 2002 including allocated interest expense for the periods presented.
Interest expense was allocated to the discontinued operations based on the outstanding debt specifically identified
with these businesses.
Summarized financial information for the water/wastewater operations (discontinued operations) is set forth below:
Electric and Gas
On April 1, 2004, we completed the sale of our Vermont electric distribution operations for approximately
$13,992,000 in cash, net of selling expenses.
On December 2, 2003, we completed the sale of substantially all of our Vermont electric division’s transmission
assets for $7,344,000 in cash (less $1,837,000 in refunds to customers as ordered by the Vermont Public Service
Board). Losses on the sales of our Vermont properties were included in the impairment charges recorded during
2003.
Pre-tax gains/(losses) in connection with the following transactions were included in Other income (loss), net:
On August 8, 2003, we completed the sale of The Gas Company in Hawaii division for $119,290,000 in cash and
assumed liabilities. The pre-tax loss on the sale recognized in 2003 was $19,180,000.
On August 11, 2003, we completed the sale of our Arizona gas and electric divisions for $224,100,000 in cash. The
pre-tax loss on the sale recognized in 2003 was $18,491,000.
On November 1, 2002, we completed the sale of our Kauai electric division for $215,000,000 in cash.
On July 2, 2001, we completed the sale of our Louisiana Gas operations for $363,436,000 in cash.
On November 30, 2001, we sold our Colorado Gas division for approximately $8,900,000 in cash after purchase
price adjustments.
( $ in thousands) For the year ended
December 31, 2002
Revenue 4,650$
Operating loss (415)$
Income tax benefit (554)$
Net loss (1,478)$
Gain on disposal of water segment, net of tax 181,369$