FairPoint Communications 2013 Annual Report Download - page 38

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(2) Reorganization items represent income or expense amounts that have been recognized as a direct result of the Chapter 11
Cases, prior to January 24, 2011. On January 24, 2011, we emerged from Chapter 11 protection and substantially consummated
our reorganization through a series of transactions contemplated by the Plan. Reorganization items income during the 24
days ended January 24, 2011 includes adjustments made upon application of the Plan and adoption of fresh start accounting,
in addition to certain other items, more fully described in note (4) "Reorganization Under Chapter 11" to our consolidated
financial statements in "Item 8. Financial Statements and Supplementary Data" included elsewhere in this Annual Report.
(3) The balance sheet data reflected at January 24, 2011 is representative of the Company after application of the Plan and the
adoption of fresh start accounting.
(4) Cash excludes aggregate restricted cash of $1.2 million, $7.5 million, $25.1 million, $4.1 million and $4.0 million at
December 31, 2013, 2012, 2011, 2010 and 2009, respectively, and $86.8 million at January 24, 2011.
(5) Long-term debt at December 31, 2010 and 2009 is included in Liabilities subject to compromise in our consolidated balance
sheets.
(6) Total access line equivalents include voice access lines and broadband subscribers, which include DSL, wireless broadband,
cable modem and fiber-to-the-premise.
(7) Wholesale access lines include residential and business resale lines and unbundled network element platform ("UNEP")
lines.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following discussion should be read in conjunction with our consolidated financial statements and the notes thereto in
"Item 8. Financial Statements and Supplementary Data" included elsewhere in this Annual Report. The following discussion
includes certain forward-looking statements. For a discussion of important factors, including the continuing development of our
business, actions of regulatory authorities and competitors and other factors which could cause actual results to differ materially
from the results referred to in the forward-looking statements, see "Item 1A. Risk Factors" and "Cautionary Note Regarding
Forward-Looking Statements" included elsewhere in this Annual Report. Our discussion and analysis of financial condition and
results of operations are presented in the following sections:
• Overview
• Executive Summary
• February 2013 Refinancing
• Regulatory and Legislative
• Fresh Start Accounting
• Basis of Presentation
• Results of Operations
• Non-GAAP Financial Measures
• Liquidity and Capital Resources
• Off-Balance Sheet Arrangements
• Summary of Contractual Obligations
• Critical Accounting Policies and Estimates
• New Accounting Standards
• Inflation
Overview
We are a leading provider of advanced communications services to business, wholesale and residential customers within our
service territories. We offer our customers a suite of advanced data services such as Ethernet, high capacity data transport and
other IP-based services over our Next Generation Network in addition to Internet access, HSD, and local and long distance voice
services. Our service territory spans 17 states where we are the incumbent communications provider primarily serving rural
communities and small urban markets. Many of our LECs have served their respective communities for more than 80 years. We
operate with approximately 1.2 million access line equivalents, including approximately 330,000 broadband subscribers, in service
as of December 31, 2013.
We own and operate our Next Generation Network, an extensive, next generation fiber network with more than 16,000 miles
of fiber optic cable, in Maine, New Hampshire and Vermont, giving us capacity to support more HSD services and extend our