FairPoint Communications 2002 Annual Report Download - page 515

Balance, December 31 $ 85,000 $ 80,000 $ 70,000
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NOTE 11. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
The following table presents summarized quarterly results.
QUARTER
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1ST 2ND 3RD 4TH
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2002
Operating revenues $ 1,707,412 $ 1,698,737 $ 1,745,740 $ 1,728,822
Operating income $ 48,352 $ (19,292) $ (45,733) $ (170,584)
Net income $ 51,725 $ (26,825) $ (52,226) $ (184,262)
2001
Operating revenues $ 1,614,897 $ 1,872,348 $ 1,911,963 $ 1,921,535
Operating income $ 114,963 $ 153,201 $ 169,279 $ 175,123
Net income $ 107,694 $ 136,992 $ 156,622 $ 169,050
Quarterly operating results are not necessarily representative of
operations for a full year for various reasons, including seasonal
variations in customer calling patterns and timing of promotional
activities.
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NOTE 12. RECENT ACCOUNTING DEVELOPMENTS
In June 2001, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standard (SFAS) No. 143, "Accounting
for Asset Retirement Obligations." SFAS No. 143 requires entities to
record the fair value of the liability for legal obligations
associated with an asset retirement in the period in which the
obligation is incurred. When the liability is initially recorded, the
entity capitalizes the cost of the asset retirement obligation by
increasing the carrying amount of the related long-lived asset. Over
time, the liability is accreted to its present value each period, and
the capitalized cost is depreciated over the useful life of the
related asset.
In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB
Statements No. 4, 44, and 64, Amendment of FASB Statement No. 13, and
Technical Corrections." SFAS No. 145 rescinds FASB Statement No. 4,
"Reporting Gains and Losses from Extinguishment of Debt," and an
amendment of that Statement, FASB Statement No. 64, "Extinguishments
of Debt Made to Satisfy Sinking-Fund Requirements." SFAS No. 145 also
rescinds FASB Statement No. 44, "Accounting for Intangible Assets of
Motor Carriers," and amends FASB Statement No. 13, "Accounting for
Leases."
In June 2002, the FASB issued SFAS No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities," SFAS No. 146 requires
companies to recognize costs associated with exit or disposal
activities when they are incurred rather than at the date of a
commitment to an exit or disposal plan.
In November 2002, the FASB issued Interpretation No.45, "Guarantor's
Accounting and Disclosure Requirements for Gaurantees, Including
Indirect Guarantees of Indebtedness of Others." This interpretation
elaborates on the disclosures required in financial statements
concerning obligations under certain guarantees. It also clarifies the
requirements related to the recognition of liabilities by a guarantor
at the inception of certain guarantees. The disclosure requirements of
this interpretation were effective on December 31, 2002. No
disclosures were required at December 31, 2002.