FairPoint Communications 2003 Annual Report Download - page 53

Accounts payable $(35)—
Accrued liabilities (2,743)(1,516)
Restructuring accrual (1,968)(2,682)
Accrued property taxes (319)(263)
Current liabilities of discontinued operations $(5,065)(4,461)
Restructuring accrual $(5,214)(2,571)
Other liabilities (51)—
Long-term liabilities of discontinued operations $(5,265)(2,571)
In connection with Carrier Services' debt restructuring, as of May 10, 2002, the converted loans of $27.9 million are classified as long-
term debt as these loans will be serviced through continuing operations. Investments in marketable securities (consisting of Choice One
stock) were also reclassified from discontinued operations to other current assets as these investments upon liquidation will fund the debt
service requirements of Carrier Services' debt.
The 2000 restructure charges include provisions of $3.3 million for the termination benefits for 360 employees, losses from abandoned
leased facilities, equipment, and other obligations of $10.3 million, and $0.1 million of other costs associated with the plan of restructuring.
Accrued liabilities of the discontinued operations of Carrier Services included $13.3 million for amounts unpaid at December 31, 2000 for this
plan of restructuring.
In the first quarter of 2001, the Company completed additional plans for the restructuring of operations at Carrier Services, which
resulted in recording a charge of $33.6 million. Of the total 2001 restructuring charge, $3.4 million related to employee termination benefits
and other employee termination related costs. The Company terminated 365 positions in January 2001. Certain positions were eliminated at
the central operating facility in Albany, New York, and at the corporate office in
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Charlotte, North Carolina. In addition, another 11 sales offices were closed and staff at the remaining sales offices were reduced.
The restructure charge in the first quarter of 2001 included $12.2 million in contractual obligations for equipment, occupancy, and other
lease terminations and other facility exit costs incurred as a direct result of the plan. The restructuring charge also included $17.9 million, net
of salvage value, for the write-down of property, plant, and equipment. There were also $0.1 million of other incremental costs incurred as a
direct result of the restructuring plan.
Except for the remaining liabilities associated with equipment and lease terminations, all liabilities for employee termination benefits
and other liabilities were settled or paid by December 31, 2001, for the 2000 and 2001 plans of restructuring. These remaining liabilities were
re-evaluated and increased by $1.9 million in 2001. During 2002 and 2003, the Company entered into arrangements related to certain leases
and revised its assumptions on certain other remaining leases. For these reasons, there was a reduction to the remaining restructure
obligation of $1.2 million in 2002 and $0.2 million in 2003. These reductions have been recognized as a gain and classified within
discontinued operations for the year ended December 31, 2002 and 2003, respectively.
Selected information relating to the restructuring charge follows:
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Restructuring accrual as of December 31, 2000 $3,028 10,207 — 108 13,343
Restructure charge 3,416 12,180 17,916 95 33,607
Write-down of assets to net realizable value — — (16,696)— (16,696)
Adjustments from initial estimated charges (91)1,916 (1,220)59 664
Cash payments (6,353)(11,993)— (262)(18,608)
Restructuring accrual as of December 31, 2001 — 12,310 — — 12,310
Adjustments from initial estimated charges — (1,192)— — (1,192)
Cash payments — (3,936)— — (3,936)
Restructuring accrual as of December 31, 2002 — 7,182 — — 7,182
Adjustments from initial estimated charges — (246) (246)
Cash payments — (1,683) (1,683)