FairPoint Communications 2002 Annual Report Download - page 511

ILLINOIS VALLEY CELLULAR RSA 2-III PARTNERSHIP
NOTES TO THE FINANCIAL STATEMENTS
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).
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ILLINOIS VALLEY CELLULAR RSA 2-III PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
NOTE 5. NOTES PAYABLE (Continued)
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