FairPoint Communications 2013 Annual Report Download - page 77

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On October 1, 2012 and October 1, 2013, the Company performed its annual non-amortizable intangible asset impairment
test and concluded that there was no impairment at that time.
As of December 31, 2013, the Company performed its routine review of impairment triggering events specified by the
Intangibles—Goodwill and Other Topic of the ASC and concluded that it did not believe a triggering event had occurred.
Other Amortizable Intangible Assets
The Company's amortizable intangible assets are as follows (in thousands):
December 31, 2013 December 31, 2012
Customer lists (weighted average 9.0 years):
Gross carrying amount $ 99,000 $ 99,000
Less: accumulated amortization (32,290) (21,290)
Net customer lists 66,710 77,710
Favorable leasehold agreements (weighted average 2.7 years):
Gross carrying amount 410 410
Less: accumulated amortization (403) (297)
Net favorable leasehold agreements 7 113
Total amortizable intangible assets, net (weighted average 8.9 years) $ 66,717 $ 77,823
Amortization expense of the Company's amortizable intangible assets was $11.1 million, $11.2 million and $10.4 million
for the year ended December 31, 2013, the year ended December 31, 2012 and the 341 days ended December 31, 2011, respectively,
and is expected to be approximately $11.0 million in 2014, 2015, 2016, 2017 and 2018, respectively. Amortization expense for
the Company's amortizable intangible assets prior to the Effective Date was $1.5 million for the 24 days ended January 24, 2011.
(7) Property, Plant and Equipment
A summary of property, plant and equipment is shown below (in thousands):
Estimated Life December 31, 2013 December 31, 2012
(in years)
Land — $ 35,585 $ 36,824
Buildings 40 191,348 181,269
Central office equipment 7 – 10 559,304 524,545
Outside communications plant 15 – 35 1,091,238 1,050,662
Furniture, vehicles and other work equipment (1) 5 – 15 197,439 178,931
Plant under construction — 93,734 90,766
Other (1) — 18,881 17,403
Total property, plant and equipment 2,187,529 2,080,400
Less: Accumulated depreciation (886,237) (642,091)
Net property, plant and equipment $ 1,301,292 $ 1,438,309
(1) The Company has reclassified certain network software assets from "Other" to "Furniture, vehicles and other work
equipment" as of December 31, 2012 in the above table to be consistent with current period presentation.
Depreciation expense, excluding amortization of intangible assets, for the year ended December 31, 2013, the year ended
December 31, 2012, the 341 days ended December 31, 2011 and the 24 days ended January 24, 2011 was $271.3 million, $365.5
million, $326.5 million and $20.1 million respectively. Depreciation expense includes amortization of assets recorded under capital
leases.
The Company recorded $3.7 million of asset retirement obligations during the year ended December 31, 2013. Accretion
expense, revisions in cash flow estimates and liability settlements were insignificant during the year. The Company's asset retirement
obligations are included as a component of other accrued liabilities or other long-term liabilities in the consolidated balance sheets
based on the expected timing of the obligation. As of December 31, 2013, the Company's asset retirement liability of $4.3 million
consisted of $1.1 million in other accrued liabilities and $3.2 million in other long-term liabilities. As of December 31, 2012, the
Company's asset retirement liability of $0.6 million consisted of $0.1 million in other accrued liabilities and $0.5 million in other
long-term liabilities.