Note 1.  Summary of Significant Accounting Policies
Description of business: Shenandoah Telecommunications Company and subsidiaries (the Company) provides
telephone service, wireless personal communications service (PCS) under the Sprint brand name, cable television,
unregulated communications equipment sales and services, Internet access, and paging services.  In addition, the
Company leases towers and operates and maintains an interstate fiber optic network.  The Company's operations are
located in the four state region surrounding the Northern Shenandoah Valley of Virginia.  Pursuant to a management
agreement with Sprint Communications Company and its related parties (collectively, “Sprint”), the Company is the
exclusive PCS Affiliate of Sprint providing wireless mobility communications network products and services in the
geographic area extending from Altoona, Harrisburg and York, Pennsylvania, south through Western Maryland, and
the panhandle of West Virginia, to Harrisonburg, Virginia.  The Company is licensed to use the Sprint brand name in
this territory, and operates its network under the Sprint radio spectrum license (Note 7).  A summary of the Company's
significant accounting policies follows:
Stock split: All share and per share information reflect the two for one stock split announced in October 2003, to
shareholders of record as of the close of business on January 30, 2004. The additional shares were distributed on
February 20, 2004. The effective date of the split is February 23, 2004.  All previously reported share and per share
data included herein are retroactively adjusted to reflect the split.
Principles of consolidation:  The consolidated financial statements include the accounts of all wholly owned
subsidiaries and other entities where effective control is exercised.  All significant intercompany balances and
transactions have been eliminated in consolidation.
Use of estimates:  Management of the Company has made a number of estimates and assumptions related to the
reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated
financial statements and the reported amounts of revenues and expenses during the reporting periods.  Management
reviews its estimates, including those related to recoverability and useful lives of assets as well as liabilities for income
taxes and pension benefits.  Changes in facts and circumstances may result in revised estimates and actual results could
differ from those reported estimates.
Cash and cash equivalents:  The Company considers all temporary cash investments purchased with a maturity of
three months or less to be cash equivalents.  The Company places its temporary cash investments with high credit
quality financial institutions.  At times, these investments may be in excess of FDIC insurance limits.  Cash and cash
equivalents were $28.7million, $2.2 million, and $2.0 million at December 31, 2003, 2002 and 2001, respectively.
Accounts receivable:  Accounts receivable are recorded at the invoiced amount and do not bear interest.  The
allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the
Company’s existing accounts receivable.  The Company determines the allowance based on historical write-off
experience and by industry and national economic data.  The Company reviews its allowance for doubtful accounts
monthly.  Past due balances meeting specific criteria are reviewed individually for collectibility.  All other balances are
reviewed on a pooled basis.  Account balances are charged off against the allowance after all means of collection have
been exhausted and the potential for recovery is considered remote.  Accounts receivable are concentrated among
customers within the Company's geographic service area and large telecommunications companies.  The Company's