FairPoint Communications 2003 Annual Report Download - page 119

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Certain reclassifications have been made to the 2001 and 2000 financial statements to conform with the 2002 presentation.
NOTE 3. PROPERTY AND EQUIPMENT
The components of property and equipment were as follows:
2002
2001
Land and land improvements $545,333 $541,618
Buildings 1,324,949 1,277,987
Electronic mobile exchange and base site controller equipment 3,955,971 3,462,373
Cell site towers and equipment 3,784,222 3,422,232
Radio frequency equipment 3,054,024 1,966,997
Other 677,602 477,845
Total property and equipment 13,342,101 11,149,052
Less accumulated depreciation (6,833,198) (6,022,436)
Net property and equipment 6,508,903 5,126,616
Plant under construction 5,704 5,845
Total net property and equipment $6,514,607 $5,132,461
Property and equipment and accumulated depreciation include $123,784 and $2,947, respectively, at December 31, 2002, for capital
leases. Property and equipment acquired with capital leases in 2002 was $123,784.
NOTE 4. INVESTMENTS
Investments include $65,934 and $146,109 at December 31, 2002 and 2001, respectively, of Rural Telephone Finance Cooperative
(RTFC) subordinated capital certificates (SCC). Such SCC's were purchased from RTFC as a condition of obtaining long-term financing for
the Partnership and are carried at cost. The SCC's are non-interest bearing and are returned as the related RTFC loan is repaid. The stock
purchases were fully financed through the issuance of long-term debt obligations to RTFC. It is not practical to estimate the fair value for
these investments due to a lack of quoted market prices.
NOTE 5. NOTES PAYABLE
In 2002, the Partnership entered into a $1,000,000 revolving line of credit loan agreement with RTFC. While the agreement is
scheduled to mature on the one year anniversary of the advance, the
9
Partnership may borrow, repay, and reborrow from time to time until the agreement expires on January 3, 2005. Interest is due quarterly and
is based on the prevailing bank prime rate plus one and one-half percent or such lessor amount as determined by RTFC. The rate at
December 31, 2002, was 5.8%. The agreement is subject to the provisions of the mortgage and security agreement described below. In
addition, the aggregate amount of outstanding principal balance of all Partnership unsecured indebtedness is limited to $1,000,000 at any one
time.
The maximum amount of short-term borrowings at any month-end during 2002 was $1,000,000.
NOTE 6. LONG-TERM DEBT
Long-term debt consists of:
2001
RTFC notes—variable rate $513,032
RTFC notes—variable rate 146,308
Total long-term debt 659,340
Less current portion (659,340)
$ —
The mortgage notes outstanding at December 31, 2001, are to be repaid in equal quarterly installments covering principal and interest