Frontier Communications 2005 Annual Report Download - page 66

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F-17
CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Summarized financial information for CCUSA (discontinued operations) is set forth below:
( $ in thousands) For the years ended December 31,
2005 2004 2003
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,607 $ 24,558 $ 20,764
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,489 $ 8,188 $ 6,820
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 449 $ 2,957 $ 2,440
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,040 $ 5,231 $ 4,380
Gain on disposal of CCUSA, net of tax . . . . . . . . . . . . . . $ 1,167 $ — $ —
($ in thousands) December 31, 2004
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,819
Net property, plant and equipment . . . . . . . . . . . . . . 2,450
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,853
Total assets of discontinued operations . . . . . . . . . . . $ 24,122
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 735
Total liabilities of discontinued operations . . . . . . . . $ 735
Public Utilities
On April 1, 2004, we completed the sale of our Vermont electric distribution operations for approximately
$13,992,000 in cash, net of selling expenses. With that transaction, we completed the divestiture of our public
utilities services business pursuant to plans announced in 1999. Losses on the sales of our Vermont properties were
included in the impairment charges recorded in 2003.
(9) INVESTMENTS:
The components of investments at December 31, 2005 and 2004 are as follows:
($ in thousands) 2005 2004
Marketable equity securities . . . . . . . . . . . . . . . . . . . $ 122 $ 2,336
Equity method investments . . . . . . . . . . . . . . . . . . . . 19,014 20,726
$ 19,136 $ 23,062
Marketable Securities
As of December 31, 2005 and 2004, we owned 3,059,000 shares of Adelphia Communications Corp. (Adelphia)
common stock. As a result of write downs recorded in 2002 and 2001, our “book cost basis” was reduced to zero and
subsequent increases and decreases, except for those deemed other than temporary, are included in accumulated
other comprehensive income (loss).
During 2004, we sold our investments in D & E Communications, Inc. (D & E) and Hungarian Telephone and
Cable Corp. (HTCC) for approximately $13,300,000 and $13,200,000 in cash, respectively. We recorded net realized
gains of $12,066,000 in our statement of operations for the sale of these marketable securities.