2003. The Company will be required to apply FIN 46R to variable interests in VIEs created after December 31, 2003.
For variable interests in VIEs created before January 1, 2004, the Interpretation will be applied beginning on January 1,
2005, except it must be applied in the fourth quarter of 2003 for any VIE’s that are considered to be special purpose
entities.  For any VIEs that must be consolidated under FIN 46R that were created before January 1, 2004, the assets,
liabilities and non-controlling interests of the VIE initially would be measured at their carrying amounts with any
difference between the net amount added to the balance sheet and any previously recognized interest being recognized
as the cumulative effect of an accounting change. If determining the carrying amounts is not practicable, fair value at
the date FIN 46R first applies may be used to measure the assets, liabilities and non-controlling interest of the VIE.
The Company is evaluating the impact of applying FIN 46R to existing VIEs in which it has variable interests and does
not believe the application will have a material impact on the Company’s consolidated financial statements.
In May 2003, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 150, “Accounting for Certain
Financial Instruments with Characteristics of Liabilities and Equity,” which was effective at the beginning of the first
interim period beginning after June 15, 2003. This Statement establishes standards for the classification and
measurement of certain financial instruments with characteristics of both liabilities and equity. The Statement also
includes required disclosures for financial instruments within its scope. For the Company, the Statement was effective
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS