Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 16.  Commitments and Contingencies

We are involved in certain contractual disputes in the ordinary course of business, but do not believe the resolution of any of these existing matters will have a material adverse effect on our financial position, results of operations or cash flows.

In August 2010, we were awarded a National Telecommunications Information Administration (NTIA) Broadband Technology Opportunities Program (BTOP) grant to extend our middle mile fiber-optic network across greater Minnesota with the potential to connect health care facilities, schools, libraries, higher education institutions and public offices with an advanced high-capacity broadband network. This project involves approximately $24,000,000 of capital expenditures of which $16,800,000 is to be funded by the NTIA grant. Our investment in the project will be approximately $7,200,000 or 30% of the estimated total project cost. We began capitalizing costs associated with this project in 2010 and began receiving grant funds in June 2011.

The following table provides an overview of the capital expenditures incurred on or received from the program.

	Project Activity						Project Total
(Dollars in thousands)	YTD March 31, 2013		2012		2011
Capital expenditures incurred	$	233	$	7,081	$	12,664	$	19,978
NTIA reimbursements received	$	-	$	5,745	$	6,945	$	12,690
Capital expenditures pending reimbursement	$	1,275	$	1,100	$	1,920

The project is required to be complete by August 2013 and based on our projections we expect to comply with this deadline.