SHENANDOAH TELECOMMUNICATIONS COMPANY ■ 30
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 7.  Significant Contractual Relationship (Continued)
As part of the Amended Agreement signed January 30, 2004, the Company and Sprint resolved several outstanding
issues. The result of the resolution of these disputes was a favorable adjustment to operating income of $0.7 million for
the settlement of a dispute related to inter-market travel revenue generated by certain other Affiliate subscribers
traveling in the Company’s market, and a reduction to previously billed disputed software maintenance fees from a re-
allocation of the fees from Sprint on a per subscriber basis versus the prior allocation which was on a per switch basis.
The Sprint Agreements require the Company to maintain certain minimum network performance standards and to meet
other performance requirements.  The Company was in compliance in all-material respects with these requirements as
of December 31, 2003.
Going forward, the adoption of the Amended Agreement will allow the Company to better project the fees it will pay to
Sprint for its cash cost per user (CCPU) per month related to certain billing, customer services and other service costs,
and certain defined costs per gross add (CPGA).  The CCPU charge from Sprint is fixed at $7.70 per subscriber
through the end of 2006, and certain defined CPGA are the lower of $25.00 or 6.3% of Sprint’s published CPGA
figure.
Note 8.  Related Party Transactions
ValleyNet, an equity method investee of the Company, resells capacity on the Company’s fiber network under an
operating lease agreement.  Facility lease revenue from ValleyNet was approximately $3.1 million, $3.5 million and
$4.1 million in 2003, 2002 and 2001, respectively.  At December 31, 2003, 2002 and 2001, the Company had accounts
receivable from ValleyNet of approximately $0.4 million, $0.4 million and $0.4 million, respectively.  The Company's
PCS operating subsidiary leases capacity through ValleyNet fiber facilities.  Payment for usage of these facilities was
$0.8 million in 2003, and $1.2 million in 2002 and 2001.
Virginia Independent Telephone Alliance, (VITAL), another equity method investee of the Company, provides SS7
signaling services to the Company.  These transactions are recorded as expense on the Company’s books and were less
than $30 thousand in each of the 2003, 2002 and 2001.
Note 9.  Retirement Plans
The Company maintains a noncontributory defined benefit pension plan and a separate defined contribution plan.  The
following table presents the defined benefit plan's funded status and amounts recognized in the Company's consolidated
balance sheets.
2003 2002 2001
Change in benefit obligation: (in thousands)
  Benefit obligation, beginning $ 9,585 $ 8,538 $ 6,847
Service cost 486 420 313
Interest cost 615 591           507
Actuarial (gain) loss 1,211 252           1,054
Benefits paid (247) (216)         (183)
  Benefit obligation, ending $11,650 $ 9,585 $ 8,538
Change in plan assets:
  Fair value of plan assets, beginning $ 6,705 $ 7,375 $ 8,081
Actual return on plan assets 948 (794)           (523)
Benefits paid (247) (216)         (183)
Contributions made 447 340 -
  Fair value of plan assets, ending $ 7,853 $ 6,705 $ 7,375
2003 2002                      2001
(in thousands)