FairPoint Communications 2009 Annual Report Download - page 164

Table of Contents
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The Verizon Northern New England business also reimbursed Verizon for the Verizon Northern New England business' share of costs incurred
by Verizon to provide services on a common basis to all of its subsidiaries. These costs included allocations for legal, security, treasury, tax and audit
services. The allocations were based on actual costs incurred by Verizon and periodic studies that identified employees or groups of employees who
were totally or partially dedicated to performing activities that benefited the Verizon Northern New England business, in activities such as investor
relations, financial planning, marketing services and benefits administration. These allocations were based on actual costs incurred by Verizon, as well
as on the size of the Verizon Northern New England business relative to other Verizon subsidiaries. The Company believes that these cost allocations
are reasonable for the services provided. The Company also believes that these cost allocations are consistent with the nature and approximate amount of
the costs that the Verizon Northern New England business would have incurred on a stand-alone basis.
The Verizon Northern New England business also recognized an allocated portion of interest expense in connection with contractual agreements
between the Verizon Companies and Verizon for the provision of short-term financing and cash management services. Verizon issues commercial paper
and obtains bank loans to fund the working capital requirements of Verizon's subsidiaries, including the Verizon Companies, and invests funds in
temporary investments on their behalf. The Verizon Companies also recognized interest expense related to a promissory note held by Verizon.
The affiliate operating revenue and expense amounts do not include affiliate transactions between Verizon and VLD's, VOL's and VSSI's
operations in Maine, New Hampshire and Vermont. Because the Verizon Northern New England business' operating expenses associated with VLD,
VOL, and VSSI were determined predominantly through allocations, separate identification of the affiliate transactions was not readily available.
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The quarterly information presented below represents selected quarterly financial results as restated on Forms 10-Q/A for the quarters ended
March 31, June 30, and September 30, 2009.
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2009:
Revenue $ 299,298 284,762 270,455 272,246
Net income (loss) (22,305) (28,163) (75,202) (115,726)
Earnings (loss) per share
Basic (0.25) (0.32) (0.84) (1.29)
Diluted (0.25) (0.32) (0.84) (1.29)
2008:
Revenue $ 282,414 344,690 328,255 319,260
Net income (loss) 9,543 23,114 (25,109) (76,073)
Earnings (loss) per share
Basic 0.18 0.26 (0.28) (0.85)
Diluted 0.18 0.26 (0.28) (0.85)