SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1.  Summary of Significant Accounting Policies (Continued)
goodwill and intangible asset impairments, and requires additional disclosures of information about goodwill and other
intangible assets.  The provisions of SFAS No. 142 were required to be applied starting with fiscal years beginning
after December 15, 2001 and applied to all goodwill and other intangible assets recognized in financial statements at
that date.  In connection with SFAS No. 142 transitional goodwill impairment evaluation, the Statement required the
Company to perform an assessment of whether there is an indication that goodwill is impaired as of the date of
adoption.  To accomplish this, the Company identified its reporting units and determined the carrying value of each
unit by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units
as of January 1, 2002.
Goodwill represents the excess of purchase price over fair value of tangible and identifiable intangible net assets
acquired.  Prior to adoption of SFAS No. 142, goodwill was amortized on a straight-line basis over the expected
periods to be benefited, which was 15 years for the Company.  SFAS No. 142 required a transitional goodwill
impairment evaluation beginning January 1, 2002.  Subsequent to adoption, amortization of goodwill ceased, and the
goodwill balance is reviewed annually for impairment.  No impairment of goodwill was required to be recorded in
2003 and 2002.  With the implementation of SFAS No. 142, there was no goodwill amortization charged to operations
in 2003 or 2002, while amortization expense was $360 thousand in 2001.
The following table reconciles previously reported net income as if the provisions of SFAS No. 142 were in effect for
the years ended prior to 2002.
2003 2002 2001
(in thousands)
Reported net income $ 32,074 $ 4,519 $16,372
Add back goodwill amortization - -  360
Deduct income tax benefit - - (137)
Adjusted net income $ 32,074 $ 4,519 $  16,595   
Retirement plans: The Company maintains a noncontributory defined benefit plan covering substantially all
employees.  Pension benefits are based primarily on the employee's compensation and years of service.  The
Company's policy is to fund the maximum allowable contribution calculated under federal income tax regulations.
During 2003, the Company adopted an Executive Supplemental Retirement Plan for selected employees.  This is an
unfunded plan and is maintained primarily for the purpose of providing deferred compensation for a select group of
management or highly compensated employees.  The Company also maintains a defined contribution plan under which
substantially all employees may defer a portion of their earnings on a pre-tax basis, up to the allowable federal
maximum.  The Company may make matching and discretionary contributions to this plan.  Neither of the funded
retirement plans holds Company stock in the respective portfolios.
Income taxes: Income taxes are accounted for under the asset and liability method.  Deferred tax assets and liabilities
are recognized for the future tax consequences attributable to differences between financial statement carrying amounts
of existing assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in
the period that includes the enactment date.  The Company evaluates the recoverability of tax assets generated on a
state-by-state basis from net operating losses apportioned to that state.  Management uses a more likely than not