FairPoint Communications 2002 Annual Report Download - page 500

The components of property and equipment were as follows:
2002 2001
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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
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Total property and equipment 13,342,101 11,149,052
Less accumulated depreciation (6,833,198) (6,022,436)
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Net property and equipment 6,508,903 5,126,616
Plant under construction 5,704 5,845
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Total net property and equipment $ 6,514,607 $ 5,132,461
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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.
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ILLINOIS VALLEY CELLULAR RSA 2-I PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
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 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: