FairPoint Communications 2002 Annual Report Download - page 466

(a) Expenses were allocated based on the Partnership's percentage of
customers or minutes of use where applicable. The Partnership
believes the methods of allocations are reasonable.
5. COMMITMENTS
The general partner, on behalf of the Partnership, and the Partnership
have entered into operating leases for facilities and equipment used in
its operations. Some lease contracts include renewal options, which
include rent expense adjustments based on the Consumer Price Index. For
the year ended December 31, 2000, the Partnership recognized a total of
$914 as rent expense related to payments under these operating leases,
which is included in general and administrative expenses in the
accompanying statements of operations.
Future minimum rental commitments under noncancelable operating leases,
excluding renewal options which the Partnership intends to exercise, for
the years shown are as follows:
YEARS AMOUNT
----- (UNAUDITED)
-----------
2001 $ 934
2002 907
2003 808
2004 754
2005 661
Thereafter 2,352
------
Total minimum payments $6,416
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6. VALUATION AND QUALIFYING ACCOUNTS
BALANCE AT ADDITIONS WRITE-OFFS, BALANCE AT
BEGINNING CHARGED TO NET OF END
OF THE YEAR OPERATIONS RECOVERIES OF YEAR
----------- ---------- ---------- -------
Accounts Receivable Allowances:
2000 $24 $7 $ -- $31
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7. CONTINGENCIES
Cellco is subject to several lawsuits and other claims including, class
actions, product liability, patent infringement, partnership disputes, and
claims involving relations with resellers and agents. Various consumer
class actions lawsuits allege that Cellco breached contracts with
consumers, violated certain state consumer protection laws and other
statutes and defrauded customers through concealed or misleading billing
practices. Certain of these lawsuits and other claims may impact the
Partnership. These litigation matters may involve indemnification
obligations by third parties and/or affiliated parties covering all or
part of any potential damage awards against Cellco and the Partnership
and/or insurance coverage. All of the above matters are subject to many
uncertainties, and outcomes are not predictable with assurance.
The Partnership may be allocated a portion of the damages that may result
upon adjudication of these matters if the claimants prevail in their
actions. Consequently, the ultimate liability with respect to these
matters at December 31, 2000 cannot be ascertained. The potential effect,
if any, on the financial condition and results of operations of the