Annual report pursuant to Section 13 and 15(d)

Related Party Transactions

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Related Party Transactions
 12 Months Ended
Dec. 31, 2013
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
We entered into a long-term capital lease agreement in 1991 with the wife of GCI’s President and CEO for property occupied by us.  The leased asset was capitalized in 1991 at the owner’s cost of $900,000 and the related obligation was recorded.  The lease agreement was amended in April 2008 and our existing capital lease asset and liability increased by $1.3 million to record the extension of this capital lease.  The amended lease terminates on September 30, 2026.

In January 2001 we entered into an aircraft operating lease agreement with a company owned by GCI’s President and CEO.  The lease was amended several times, most recently in May 2011.  The amended lease agreement added the lease of a second aircraft.  The lease term of the original aircraft could be terminated by us at any time upon 90 days written notice.  This notice was provided and as of January 1, 2013, the original aircraft lease, and its monthly rate of $45,000, ended.  The lease term of the second aircraft may be terminated at any time by us upon 12 months’ written notice.  The monthly lease rate of the second aircraft is $132,000.  In 2001, we paid a deposit of $1.5 million in connection with the lease.  The deposit will be repaid to us no later than six months after the agreement terminates.

Upon closing of the AWN acquisition on July 22, 2013, ACS became a related party for financial statement reporting purposes. ACS provides us with local service lines and network capacity in locations where we do not have our own facilities. We provide wholesale services to ACS who uses our network to sell services to its respective retail customers and we receive ACS' high cost support from USF for its wireless customers. We have paid ACS $25.1 million and received $23.9 million in payments from ACS since the acquisition date. At December 31, 2013 we have $28.0 million in receivables from ACS and $11.2 million in payables to ACS. We also have long term capacity exchange agreements with ACS for which no money is exchanged.