R.H. Donnelley 1998 Annual Report

Notes to Consolidated Financial Statements

15. Supplemental Financial Information

The following is summarized combined financial information of the DonTech Partnership:

The decrease in gross revenues, income from operations, net income and assets and liabilities in 1998 is due to the change in the structure of the partnership, which occurred in August 1997. Prior to this change, DonTech published various directories, solicited advertising, and manufactured and delivered directories in Illinois and northwest Indiana. Since the change, DonTech performs the advertising sales function for the directories and earns a commission, while Ameritech serves as the publisher. The Company has a 50% interest in the profits of DonTech and also receives Revenue Participation income, which is tied to advertising sales, from an operating unit of Ameritech. This Revenue Participation income is not reflected in the table at left. Due to the change in the partnership structure and the timing of revenue recognition, the numbers in the table at left do not correspond to the income from partnerships recognized by the Company.

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