Commitments and Contingencies

6 Months Ended

Jun. 30, 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. The original project plan projected total costs of $24,000,000 of capital expenditures of which $16,800,000 is to be funded by the NTIA grant. Our investment in the project was anticipated to be approximately $7,200,000 or 30% of the estimated total project cost. Total project costs incurred through June 30, 2013 are $20,368,000. Due to scope revisions and effective cost management, we anticipate completing the project at a total cost of approximately $22,000,000 to $23,000,000 reducing our investment to approximately $6,600,000 to $6,900,000. 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
(Dollars in thousands)	YTD June 30, 2013		2012		2011		Total
Capital expenditures incurred	$	623	$	7,081	$	12,664	$	20,368
NTIA reimbursements received	$	831	$	5,745	$	6,945	$	13,521
Capital expenditures pending reimbursement	$	725	$	1,100	$	1,920

The project grant period ended July 31, 2013. All construction was completed and all capital expenditures were incurred as required by that date. The grant closeout period extends until October 31, 2013, during which a final accounting of total project costs will be performed and final reimbursement requests made under the grant agreement.