FairPoint Communications 2011 Annual Report Download - page 59
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Table of Contents
The tables set forth below contain information with regard to disclosures about contractual obligations and commercial commitments.
The following table discloses aggregate information about our contractual obligations as of December 31, 2011 and the periods in which payments are
due:
Long-term debt, including current maturities $1,000,000 $10,000 $35,000 $955,000 $ —
Interest payments on long-term debt obligations (a) 254,688 65,226 128,136 61,326 —
Capital lease obligations 4,776 1,679 2,992 105 —
Operating leases 32,380 9,871 14,551 5,701 2,257
Total obligations $1,291,844 $86,776 $180,679 $1,022,132 $2,257
(a) Excludes amortization of estimated capitalized debt issuance costs.
On the Effective Date our Pre-Petition Credit Facility and our DIP Facility were terminated and we entered into the Credit Agreement. At December 31,
2011, our long-term debt obligations totaled $1,000.0 million. In addition, as of December 31, 2011 we had letters of credit totaling $12.4 million outstanding
under the Revolving Facility.
Our accounting policies are more fully described in the notes to our consolidated financial statements contained in Item 8 hereof. As disclosed in note 3 to
our consolidated financial statements, the preparation of our financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”)
requires management to make estimates and assumptions about future events that affect the amounts reported in our consolidated financial statements and
accompanying notes. Actual results could differ significantly from those estimates. We believe that the following discussion addresses our most critical
accounting policies, which are those that are most important to the portrayal of our financial condition and results of operations and require management’s
most difficult, subjective and complex judgments. Our critical accounting policies are as follows:
• Fresh start accounting;
• Revenue recognition;
• Allowance for doubtful accounts;
• Accounting for pension and other post-retirement benefits;
• Accounting for income taxes;
• Depreciation of property, plant and equipment;
• Stock-based compensation;
• Valuation of long-lived assets, including goodwill; and
• Accounting for software development costs.
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