Frontier Communications 2006 Annual Report Download - page 70

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(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, 2006 and 2005. 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) 2006 2005
Carrying
Amount Fair Value
Carrying
Amount Fair Value
Investments ..................... $ 16,474 $ 16,474 $ 15,999 $ 15,999
Long-term debt (1) ................ $ 4,460,755 $ 4,620,921 $ 3,995,130 $ 4,022,960
(1) 2006 and 2005 includes interest rate swaps of ($10,289,000) and ($8,727,000), respectively. 2006 and 2005
includes EPPICS of $17,860,000 and $33,785,000, respectively.
(11) LONG-TERM DEBT:
The activity in our long-term debt from December 31, 2005 to December 31, 2006 is summarized as
follows:
Twelve Months Ended
($ in thousands)
December 31,
2005 Payments
New
Borrowings
Interest
Rate Swap Other
December 31,
2006
Interest
Rate* at
December 31,
2006
Rural Utilities Service Loan
Contracts ................. $ 22,809 $ (923) $ — $ — $ — $ 21,886 6.080%
Senior Unsecured Debt ........ 4,120,781 (226,770) 550,000 (1,562) (7,431) 4,435,018 8.296%
EPPICS (see Note 15) ........ 33,785 — — — (15,925) 17,860 5.000%
Industrial Development Revenue
Bonds ................... 58,140 — — — — 58,140 5.559%
TOTAL LONG TERM
DEBT ................... $ 4,235,515 $ (227,693) $ 550,000 $ (1,562) $ (23,356) $ 4,532,904
Less: Debt Discount .......... (12,692) (32,878)
Less: Current Portion ......... (227,693) (39,271)
$ 3,995,130 $ 4,460,755
* Interest rate includes amortization of debt issuance expenses, debt premiums or discounts. The interest rate
for Rural Utilities Service Loan Contracts, Senior Unsecured Debt, and Industrial Development Revenue
Bonds represent a weighted average of multiple issuances.
F-22