FairPoint Communications 2006 Annual Report Download - page 144

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ORANGE COUNTY - POUGHKEEPSIE LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2006, 2005, AND 2004
(Dollars in Thousands)
1. ORGANIZATION AND MANAGEMENT
Orange County - Poughkeepsie Limited Partnership —Orange County - Poughkeepsie Limited Partnership (the “Partnership”) was formed in 1987.
The principal activity of the Partnership is providing wholesale cellular service to resellers who operate principally in the Orange County and
Poughkeepsie, New York metropolitan service areas.
The partners and their respective ownership percentages as of December 31, 2006, 2005 and 2004 are as follows:
Managing and general partner:
Verizon Wireless of the East LP* 85.0%
Limited partners:
Taconic Telephone Corporation (“Taconic”) 7.5%
Warwick Valley Telephone Company (“Warwick”) 7.5%
* Verizon Wireless of the East LP is a partnership which is consolidated by Cellco Partnership (d/b/a Verizon Wireless) (“Cellco”). Prior to August
15, 2006, Verizon Wireless of the East LP (the “General Partner”) was a partnership between Verizon Wireless of Georgia LLC and Verizon
Wireless Acquisition South LLC, which hold a controlling interest, and Price Communications which had a preferred interest. On August 15,
2006 Verizon ELPI Holding Corp. (a subsidiary of Verizon Communications Inc.) became the owner of the preferred interest previously held by
Price Communications.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates. Estimates are used for, but not limited to, the accounting for: allocations, allowance for uncollectible accounts receivable,
unbilled revenue, fair value of financial instruments, depreciation and amortization, useful lives and impairment of assets, accrued expenses, taxes, and
contingencies. Estimates and assumptions are periodically reviewed and the effects of any material revisions are reflected in the financial statements in
the period that they are determined to be necessary.
Revenue Recognition—The Partnership earns revenue by providing access to the network (access revenue) and for usage of the network (airtime/usage
revenue), which includes roaming and long distance revenue. In general, access revenue is billed one month in advance and is recognized when earned;
the unearned portion is classified in advance billings. Airtime/usage revenue, roaming revenue and long
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