FairPoint Communications 2003 Annual Report Download - page 40
Download and view the complete annual report
Please find page 40 of the 2003 FairPoint Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30 -
31 -
32 -
33 -
34 -
35 -
36 -
37 -
38 -
39 -
40 -
41 -
42 -
43 -
44 -
45 -
46 -
47 -
48 -
49 -
50 -
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
 |
 |
Company updated its annual impairment testing of goodwill as of October 1, 2002 and 2003, and determined that no impairment loss was
required to be recognized.
As of the date of adoption of SFAS No. 142, the Company had unamortized goodwill of $443.8 million and equity method goodwill of
$10.3 million. The loss from continuing operation as of
58
December 31, 2001. adjusted as if SFAS No. 142 had been effective as of January 1, 2001, compared to actual results for the years ended
2002 and 2003 (dollars in thousands) is as follows:
Reported loss from continuing operations $(25,422)$(8,694)$(8,250)
Amortization of goodwill 11,680 — —
Amortization of equity method goodwill 282 — —
Adjusted loss from continuing operations $(13,460)$(8,694)$(8,250)
As of the date of adoption, the Company had $1.7 million in covenants not to compete that are intangible assets subject to amortization
under SFAS No. 142. The covenants not to compete are being amortized over their useful lives of three to five years. Accumulated
amortization of covenants not to compete was $3.9 million and $4.6 million at December 31, 2002 and 2003, respectively. The Company
recorded amortization of $0.9 million, $0.9 million, and $0.7 million for the years ended December 31, 2001, 2002, and 2003, respectively.
The Company will continue to amortize the covenants over their remaining estimated useful lives and will record amortization of $0.1 million
during 2004.
A summary of property, plant, and equipment from continuing operations is shown below:
Land — $3,667 $3,861
Buildings and leasehold improvements 2 - 40 34,122 36,331
Telephone equipment 3 - 50 548,152 591,621
Cable equipment 3 - 20 1,456 1,568
Furniture and equipment 3 - 34 15,448 18,184
Vehicles and equipment 3 - 20 19,200 20,712
Computer software 3 - 5 2,046 2,277
Total property, plant, and equipment 624,091 674,554
Accumulated depreciation (352,401) (407,848)
Net property, plant, and equipment $271,690 $266,706
The telephone company composite depreciation rate for property and equipment was 7.61%, 7.62%, and 7.46% in 2001, 2002, and
2003, respectively. Depreciation expense from continuing operations for the years ended December 31, 2001, 2002, and 2003 was
$41.9 million, $45.3 million, and $47.1 million, respectively.
59
The cost, unrealized holding gains and losses, and fair value of the Company's marketable equity investments classified as available-
for-sale, at December 31, 2002 and 2003 are summarized below (dollars in thousands):