Frontier Communications 2007 Annual Report Download - page 72

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CITIZENS COMMUNICATIONS COMPANY AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(9) INVESTMENTS:
The components of investments at December 31, 2007 and 2006 are as follows:
($ in thousands) 2007 2006
Marketable equity securities ................................. $ — $ 30
Equity method investments .................................. 21,191 16,444
$21,191 $16,474
Equity Method Investments
Our investments in entities that are accounted for under the equity method of accounting consist of the
following: (1) a 50% interest in the C-Don Partnership, acquired in the purchase of Commonwealth, which
publishes, manufactures and distributes classified telephone directories in the Commonwealth service territory;
(2) a 16.8% interest in the Fairmount Cellular Limited Partnership which is engaged in cellular mobile telephone
service in the Rural Service Area (RSA) designated by the FCC as Georgia RSA No. 3; and (3) our investments
in CU Capital and CU Trust with relation to our convertible preferred securities.
(10) FAIR VALUE OF FINANCIAL INSTRUMENTS:
The following table summarizes the carrying amounts and estimated fair values for certain of our financial
instruments at December 31, 2007 and 2006. For the other financial instruments, representing cash, accounts
receivables, long-term debt due within one year, accounts payable and other accrued liabilities, the carrying
amounts approximate fair value due to the relatively short maturities of those instruments. Other equity method
investments for which market values are not readily available are carried at cost, which approximates fair value.
The fair value of our long-term debt is estimated based on quoted market prices at the reporting date for
those financial instruments.
($ in thousands) 2007 2006
Carrying
Amount Fair Value Carrying
Amount Fair Value
Long-term debt (1) ................................ $4,736,897 $4,760,639 $4,467,086 $4,620,921
(1) 2007 and 2006 include interest rate swaps of $7.9 million and ($10.3 million), respectively. 2007 and 2006
include EPPICS of $14.5 million and $17.9 million, respectively.
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