Annual report pursuant to Section 13 and 15(d)

Receivables and Allowance for Doubtful Receivables

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Receivables and Allowance for Doubtful Receivables
 12 Months Ended
Dec. 31, 2012
Receivables and Allowance for Doubtful Receivables [Abstract]  
Receivables and Allowance for Doubtful Receivables [Text Block]

(3)       Receivables and Allowance for Doubtful Receivables

Receivables consist of the following at December 31, 2012 and 2011 (amounts in thousands):

      2012   2011
  Trade $ 148,902   140,533
  Employee   703   720
  Other   831   574
  Total Receivables $ 150,436   141,827

As described in Note 1(t), Revenue Recognition, we receive support from each of the various USF programs: high cost, low income, rural health care, and schools and libraries.  This support was 19%, 19% and 18% of our revenue for the years ended December 31, 2012, 2011 and 2010, respectively.  We had USF net receivables of $70.1 million and $69.8 million at December 31, 2012 and 2011, respectively.

 

Changes in the allowance for doubtful receivables during the years ended December 31, 2012, 2011 and 2010 are summarized below (amounts in thousands):

          Additions   Deductions    
  Description   Balance at beginning of year   Charged to costs and expenses   Charged to other accounts   Write-offs net of recoveries   Balance at end of year
  December 31, 2012 $ 5,796   3,649   (2,261)   3,969   3,215
  December 31, 2011 $ 9,189   4,294   (29)   7,658   5,796
  December 31, 2010 $ 7,060   3,085   1,670   2,626   9,189

Charged to other accounts during the year ended December 31, 2010, includes a $1.6 million reserve for a customer that participates in the Rural Health Care Division support program that is operated by the USAC. We provided service to this customer pursuant to a contract from July 2008 to June 2009. In 2010 we received a funding commitment letter from USAC for the year from July 2008 to June 2009 committing funding for all but $1.7 million of that particular year. USAC denied funding of $1.7 million based on the timing of customer-owned equipment placed in service in relation to service charges. In August 2010, we filed with the FCC a request for review of the denial. We recorded a reserve by reducing revenue $1.7 million in the year ended December 31, 2010. During the second quarter of 2011, we decreased the allowance by $100,000 to true up 2008 and 2009's funding amounts. After recording the adjustment in 2011, the allowance related to this customer was $1.6 million at December 31, 2011. In 2012 we received notice our appeal was successful and received payment of the $1.6 million, allowing us to recognize revenue and reduce our allowance and this amount is included in charged to other accounts during the year ended December 31, 2012.