FairPoint Communications 2004 Annual Report Download - page 533

Reclassifications
Certain reclassifications have been made to the 2001 and 2000 financial statements to conform with the 2002 presentation.
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The components of property and equipment were as follows:
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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.
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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.
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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 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.