Frontier Communications 2006 Annual Report Download - page 74

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
The components of other income (loss), net for the years ended December 31, 2006, 2005 and 2004 are as
follows:
($ in thousands) 2006 2005 2004
Legal contingencies ........................................... $ (1,000) $ (7,000) $ —
Gain on expiration/settlement of customer advances .................. 3,539 681 25,345
Loss on exchange of debt ....................................... (2,433) (3,175) —
Premium on debt repurchases ................................... — — (66,480)
Minority share of Mohave Cellular net income ...................... (4,164) (3,599) (817)
Gain on forward rate agreements ................................. 430 1,851 —
Loss on sale of assets .......................................... — — (1,945)
Other, net ................................................... 2,501 9,881 (9,568)
Total other income (loss), net .............................. $ (1,127) $ (1,361) $ (53,465)
During 2006 and 2005, we recorded expense in connection with the Bangor, Maine legal matter. In
connection with our exchange of debt during the first quarter of 2006 and second quarter of 2005, we recognized
a non-cash, pre-tax loss. 2006 and 2005 also include a gain for the changes in fair value of our forward rate
agreements.
During 2006, 2005 and 2004, we recognized income in connection with certain retained liabilities, that have
terminated, associated with customer advances for construction from our disposed water properties.
Pre-tax gains (losses) in connection with the following transactions were recorded in other income (loss),
net:
2005
On February 1, 2005, we sold shares of Prudential Financial, Inc. for approximately $1,112,000 in cash, and
we recognized a pre-tax gain of approximately $493,000.
In June 2005, we sold for cash our interests in certain key man life insurance policies on the lives of
Leonard Tow, our former Chairman and Chief Executive Officer, and his wife, a former director. The cash
surrender value of the policies purchased by Dr. Tow totaled approximately $24,195,000, and we recognized a
pre-tax gain of approximately $457,000.
During 2005, we sold shares of Global Crossing Limited for approximately $1,084,000 in cash, and we
recognized a pre-tax gain for the same amount.
2004
In October 2004, we sold cable assets in California, Arizona, Indiana, and Wisconsin for approximately
$2,263,000 in cash. The pre-tax gain on the sale was $40,000.
During the third quarter of 2004, we sold our corporate aircraft for approximately $15,298,000 in cash. The
pre-tax loss on the sale was $1,087,000.
(15) COMPANY OBLIGATED MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED
SECURITIES:
In 1996, our consolidated wholly-owned subsidiary, Citizens Utilities Trust (the Trust), issued, in an
underwritten public offering, 4,025,000 shares of EPPICS, representing preferred undivided interests in the assets
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