Frontier Communications 2005 Annual Report Download - page 67

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F-18
CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The following summarizes the adjusted cost, gross unrealized holding gains and losses and fair market value
for marketable securities:
($ in thousands) Adjusted
Cost
Unrealized Holding Aggregate Fair
Market Value Investment Classification Gains (Losses)
As of December 31, 2005
Available-for-Sale . . . . . . . . . . . . . . . . $ — $ 122 $ — $ 122
As of December 31, 2004
Available-for-Sale . . . . . . . . . . . . . . . . $ 1,138 $ 1,198 $ — $ 2,336
At December 31, 2005 and 2004, we did not have any investments that have been in a continuous unrealized
loss position deemed to be temporary for more than 12 months. We determined that market fluctuations during the
period are not other than temporary because the severity and duration of the unrealized losses were not significant.
Investments in Other Entities
During 2004, we reclassified our investments accounted for under the equity method from other assets to the
investment caption in our consolidated balance sheets and conformed prior periods to the current presentation.
Our investments in entities that are accounted for under the equity method of accounting consist of the following:
(1) a 33% interest in the Mohave Cellular Limited Partnership which is engaged in cellular mobile telephone service
in the Arizona area; (2) a 16.8% interest in the Fairmount Cellular Limited Partnership which is engaged in cellular
mobile telephone service in the Rural Service Area (RSA) designated by the FCC as Georgia RSA No. 3; and (3) our
investments in CU Capital and CU Trust with relation to our convertible preferred securities. The investments in
these entities amounted to $19,014,000 and $20,726,000 at December 31, 2005 and 2004, respectively.
(10) FAIR VALUE OF FINANCIAL INSTRUMENTS:
The following table summarizes the carrying amounts and estimated fair values for certain of our financial
instruments at December 31, 2005 and 2004. For the other financial instruments, representing cash, accounts
receivables, long-term debt due within one year, accounts payable and other accrued liabilities, the carrying amounts
approximate fair value due to the relatively short maturities of those instruments.
The fair value of our marketable securities and long-term debt is estimated based on quoted market prices at the
reporting date for those financial instruments. Other securities and investments for which market values are not
readily available are carried at cost.
($ in thousands) 2005 2004
Carrying
Amount Fair Value
Carrying
Amount Fair Value
Investments . . . . . . . . . . . . . . . . . . . . . . . $ 19,136 $ 19,136 $ 23,062 $ 23,062
Long-term debt (1) . . . . . . . . . . . . . . . . . . $ 3,999,376 $ 4,026,453 $ 4,266,998 $ 4,607,298
(1) 2005 and 2004 includes interest rate swaps of $(8,727,000) and $4,466,000, respectively. 2005 and 2004
includes EPPICS of $33,785,000 and $63,765,000, respectively.