FairPoint Communications 2005 Annual Report Download - page 80

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Earnings in equity investments for the years ended December 31, 2005, 2004, and 2003 consisted of the following (in thousands):
  
Orange County—Poughkeepsie Limited Partnership $ 10,523 $ 10,249 $ 8,939
Illinois Valley Cellular RSA 2, Inc. 477 372 543
Illinois Valley Cellular RSA 2-I, RSA 2- II, and RSA 2-III Partnerships — — 35
Chouteau Cellular Telephone Company — 2 471
Other, net 302 276 104
Total $11,302 $10,899 $ 10,092
Distributions from investments during the years ended December 31, 2005, 2004, and 2003 consisted of the following (in thousands):
  
Orange County—Poughkeepsie Limited Partnership $9,975 $11,775 $10,125
Illinois Valley Cellular RSA 2, Inc. — 375 325
Illinois Valley Cellular RSA 2-I, RSA 2- II, and RSA 2-III Partnerships — — 147
Chouteau Cellular Telephone Company 40 2,524 —
CoBank, ACB 634 — —
Distributions from other equity investments 210 343 178
Total $10,859 $15,017 $10,775
Chouteau Cellular Telephone Company (a limited partnership in which the Company holds a 1.0% general partner interest and a 32.67% limited partner
interest) (Chouteau) is an investment vehicle that holds a 25% member interest in Independent Cellular Telephone, LLC (ICT). ICT, in turn, is an investment
vehicle that holds a 44.45% member interest in United States Cellular Telephone of Greater Tulsa, LLC (Tulsa, LLC).
In January 2004, ICT sold its membership interest in Tulsa, LLC and, as a result, Chouteau Cellular Telephone Company made a $2.5 million
distribution to the Company. Subsequent to the sale, the Company continues to have an investment in Chouteau Cellular Telephone Company, but the
partnership assets are minimal and do not include any interests in the cellular telephone business of Chouteau.
During 2003, the Company sold its ownership percentages of Illinois Valley Cellular RSA 2-I Partnership, Illinois Valley Cellular RSA 2-II Partnership,
and Illinois Valley Cellular RSA 2-III Partnership. Proceeds from the sales of these investments were $1.8 million and gross gains of approximately
$0.4 million were realized on these sales.
During 2005, the Company determined that the carrying amount of its investment in Illinois Valley Cellular RSA No. 2, which is accounted for under
the equity method, exceeded the estimated fair value and such decline was “other-than-temporary.” As a result, the Company recorded a non-cash impairment
charge of $1.2 million. This charge is classified as impairment on investments in the consolidated statements of operations.
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