FairPoint Communications 2003 Annual Report Download - page 130

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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 $233,179 $232,978
Buildings 642,311 594,346
Electronic mobile exchange and base site controller equipment 2,479,042 2,097,221
Cell site towers and equipment 1,855,225 1,436,055
Other 1,914,729 1,456,190
Total property and equipment 7,124,486 5,816,790
Less accumulated depreciation (3,356,524) (2,834,086)
Total net property and equipment $3,767,962 $2,982,704
Property and equipment and accumulated depreciation include $66,843 and $796, respectively, at December 31, 2002, for capital
leases. Property and equipment acquired with capital leases in 2002 was $66,843.
NOTE 4. INVESTMENTS
Investments include $23,669 and $53,035 at December 31, 2002 and 2001, respectively, of Rural Telephone Finance Cooperative
(RTFC) subordinated capital certificates (SCC). Such SCCs were purchased from RTFC as a condition of obtaining long-term financing for
the Partnership and are carried at cost. The SCCs 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
Notes payable consist of:
2002
2001
RTFC lines of credit $500,000 $400,000
RTFC revolving line of credit 1,000,000 —
$1,500,000 $400,000
Interest on the lines of credit is at a variable rate (5.8% and 5.3% at December 31, 2002 and 2001, respectively).
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 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
9
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 and 2001 were $1,500,000 and $500,000, respectively.
NOTE 6. LONG-TERM DEBT
Long-term debt consists of:
2001
RTFC notes—variable rate $160,160
RTFC notes—variable rate $76,530
Total long-term debt 236,690