FairPoint Communications 2007 Annual Report Download - page 137

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ORANGE COUNTY — POUGHKEEPSIE LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
Years Ended December 31, 2007, 2006, and 2005
(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, 2007 are as follows:
Managing and General Partner:
Verizon Wireless of the East LP* 85.0%
Limited partners:
Warwick Valley Telephone Company (“Warwick”) 8.1081%
Cellco Partnership 6.8919%
The partners and their respective ownership percentages as of December 31, 2006 and 2005 are as follows:
Managing and General Partner:
Verizon Wireless of the East LP* 85.0%
Limited partners:
Warwick Valley Telephone Company 7.5%
Taconic Telephone Corporation (“Taconic”) 7.5%
On April 10, 2007, Taconic sold their 7.5% limited partnership interest to Cellco Partnership and Warwick.
*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 distance
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