Frontier Communications 2008 Annual Report Download - page 72

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Summarized financial information for ELI for the year ended December 31, 2006 is set forth below:
($ in thousands) 2006
Revenue .................................................................. $100,612
Operating income.......................................................... $ 27,882
Income taxes . . ............................................................ $ 11,583
Net income . . . ............................................................ $ 18,912
Gain on disposal of ELI, net of tax ........................................ $ 71,635
(9) Investments:
Investments at December 31, 2008 and 2007 include equity method investments of $8,044 and $21,191,
respectively. Our investments in entities that are accounted for under the equity method of accounting consist
of the following: (1) a 50% interest in the C-Don Partnership, acquired in the purchase of Commonwealth,
which publishes, manufactures and distributes classified telephone directories in the Commonwealth service
territory; (2) a 16.8% interest in the Fairmount Cellular Limited Partnership which is engaged in cellular mobile
telephone service in the Rural Service Area (RSA) designated by the FCC as Georgia RSA No. 3; and (3) our
investments in CU Capital and CU Trust with relation to our convertible preferred securities that were fully
redeemed in the fourth quarter of 2008.
(10) Fair Value of Financial Instruments:
The following table summarizes the carrying amounts and estimated fair values for certain of our financial
instruments at December 31, 2008 and 2007. For the other financial instruments, representing cash, accounts
receivables, long-term debt due within one year, accounts payable and other accrued liabilities, the carrying
amounts approximate fair value due to the relatively short maturities of those instruments. Other equity method
investments for which market values are not readily available are carried at cost, which approximates fair
value.
The fair value of our long-term debt is estimated based on quoted market prices at the reporting date for
those financial instruments.
($ in thousands)
Carrying
Amount Fair Value
Carrying
Amount Fair Value
2008 2007
Long-term debt(1) ................................... $4,721,685 $3,651,924 $4,736,897 $4,708,217
(1) 2007 includes interest rate swaps of $7.9 million and EPPICS of $14.5 million.
F-21
FRONTIER COMMUNICATIONS CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements