Loading...
HomeMy WebLinkAbout2008Annual Report.pdfANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31, 2008 iQn~ IrPR \ 5 AM 9: \ 5 ALB --t ;l''''''l~' COMPANY INFORMATION Exact name of utility: Albion Tele hone Com an , Inc. , i" Address of principal office: 225 West North Street. P.O. Box 98 Albion, 108"3$ 1 Telephone Number (Area Code_208 673-5335 Cities or towns served: Albion, Almo, Elba, Holbrook, Malta, Raft River, Malad, Mackay, Moore, Arco, Howe: Idaho: Yost; Utah Name and title of offcer having custody of the general corporate books of account; ODeen K. Redman, President Address of office where corporate books are kept and phone number: 225 West North Street. P.O. Box 98 Albion, 1083311 Organized under the laws of the State of: Idaho Date of organization: 1929 -Incorporated September 11, 1953 Form of organization (proprietorship, association, corporation): Corporation If a Subchapter S Corporation, please specify: We are a Subchapter S Corporation Name and address of controllng company, if any: Names of affiliated companies. Give address and description of business: OFFICERS Report below the title, name and office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title, and address of the previous officer and the date of change. Title Name Address President ODeen K. Redman P.O. Box 22 Albion, 10 83311 Vice-President Richard L. Redman P.O. Box 14 Albion, 1083311 Secretary Darla Redman P.O. Box 22 Albion, 10 83311 Treasurer Barry Redman 266 S. 950 E.Declo, 1083323 Rev 3/02 Page 1 DIRECTORS List the name of each person who was a member of the Bord of Direors at any given time during the year: (Fees related to meetings only.) Name and Addre ODeen K. Redman Richard L. Redman Darla Redman Barry Redman Term Expire or Currnt Term Wil expire NA NA NA NA Name of Chairman of the Board: Name of Secretary (or Clerk) of Board: Number of Meengs of the Board during the year: Meengs Attnded This year 12 12 12 12 Fees Paid During Year 360 3600 3600 3600 MAGERS List the name of each persn who perfrmed management dutes for the Company during the year, and the total wages and bonuses paid to thos persns: (Do not include Direcr fe in thes amounts.) Name ODeen K. Redman Richard L. Redman Mike Dolezal Rev 3102 Title President VicePresident General Manager Pag 2 Wages and Bonuses Paid Confintial Confientil Confidential NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices, extensions or additions to the system; disposal of any substantial portion of the propert of the utilty; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. Rev 3/02 Page 3 BALANCE SHEET Assets and Other Debits Balance Balance Increase Beginning at End or Title Of Account of Year of Year (DeCreaSe)Current Assets 1120 Cash and Equivalents 1803160 1713228 -89932 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 621941 482148 -139793 1181 Accts. Rec. Allow. -Telecommunications -168437 -23593 144844 1190 Other Accounts Receivable 1225999 1013726 -212273 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 330639 172233 -158406 1280 Prepayments 123002 4455 -118547 1290 Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 0 1402 Investment in Nonaffilated Companies 2222965 2455335 232370 1406 Nonregulated Investments 2523557 1234678 -1288879 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 953094 464695 -488399 1500 Other Jurisdiction Assets - Net Propert, Plant and Equipment 2001 Telecommunications Plants in Service 35670597 34303783 -1366814 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 255050 64906 -190144 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwil 4324455 4324455 0 Depreciation and Amortization Accounts 3100 Accumulated Depreciated -24150930 -22588508 1562422 3200 Accum. Depre. - Held for Future Use 3300 Accumulated Depreciation - Nonoperating 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. - Leasehold Improvements 3500 Accumulated Amortization - Intangible -1453998 -4324455 -2870457 3600 Accumulated Amortization - Other TOTAL ASSETS 24281094 19297086 -4984008 Rev 3/02 Page 4 BALANCE SHEET Liabilties & Stockholders' Equity Balance Balance Increase Beginning at End or Title of Account of Year of Year (Decrease) Current Liabilties 4010 Accounts Payable 289973 450895 160922 4020 Notes Payable 4030 Advance Billings and Payments 201798 276800 75002 4040 Customer Deposits 9201 8425 -776 4050 Current Maturities - Long -Term Debt 1217726 1149373 -68353 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 0 4080 Other Taxes - Accrued 65269 585 -64684 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilties 446433 505163 58730 Long-Term Debt 4210 Funded Debt 8521905 8002994 -518911 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated Companies 4270 Other Long-Term Debt Other Liabilties & Deferred Credits 4310 Other Long-Term Liabilities 4320 Unamort. Oper. Invest. Tax Credits - Net 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper..lncome Taxes 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 1195143 2126542 931399 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 40200 40200 0 4520 Additional Paid-In Capital 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings 12293446 6736109 -5557337 TOTAL LIAB. & OTHER CREDITS 24281094 19297086 -4984008 Rev 3/02 Page 5 I"'O ....~C\0 Cl 0 'O C\Cl Cl C)I"C\C\l"I"0 (''O Cl C\~..io ..C\Cl io ..(Y I"(Y C\I"pl CO CO CI io CO ..0 Cl 0 I"C\C)I"CO 'O CO ~C\C)..I'..CO io C\C\0 C)I"..CO C)C\'O C\0 io C)C)(Y ('(,'C Cl 0 CO 'O ..C)'O 'O io 'O Cl ..(Y 0 (Y 'O 0 ..'O 0C~..C\(Y 'O ..C\0 ..0 ..(Y I"..Cl C ..'O Cl Cl (' ëã w ....'' ai 0 (' 'O (Y io ..Cl .. J!(Y CO ..I"C)CO f!..(Y 0 ..(Y 0cC\C\C\0 I' J!CI ....N'C EIIc1icCle~...i-'Cc: wo ~w enz i-z ~a. II ~ Æo ~ ~ z 5:i 0 1..o ~o 0 ~ ~ i- ¡ ~ Æu.o en ~c:zc: 1: ~ ~ ~ & ~ .. ~ ! ~ Cl=e '2 ~ ~c Cl .. .5 Cl 2 ~.- .. Æ 0 I" io .. ;g Ie ~ ~ ;g ~.. .. ,.. ~.~ CIen .5..c Cl ã: IIco~(, "2~ E E ~ ~ -g õ ~ II.~ "' ;:c .. c: C\ ..o..C)Cl io ~.. ~ ~ ~ ~ ~C\ ~ ~,.. io C\.. io..C)(YC\OClio..~.... co~;!C)~~ ~~, (Y 'O .. Cl'O~.. C\ ~ tICIe3:2 ~ ii .š ~o .g:E c: g¡ 1:e3 CI 1: :2 E CI~ .9- E- ~ Q. 5l IB"g. &. t: W.. 0 .. æ $ 5 ei CI $'õ gi ..CI .. CIQ. Cl ..en (! Õ tI CICl ..C :J'6 ~= E~ ~ a: u. Cl!! Cl Cl .5.l .5 c .. à 13 :2 ,gE ~ £ ~o ~ .- enü en en~ -(, Cl1: CI .- (, .2CI~§ï=æg,e-Ue...- :J CI Õ id&a.uJ~:EWei Cl~ 6CI li 0 Cl ...g c ei '6 ~.. CI c.__ o (! c: Cl W i o ~(Y I" S) (Y (YI" ,., ;g Cl~ ~ co ~ ~ ~ ~.. ~~ ~ ~Cl ..C) C).. Cl CI:i Clü'C ~C .0 ~ Cle ü ei '0 CI CI'C .¡:C ~ :J a: I" ~ ~ ..~ ~ CI:i Clüt: ~ lCl zü Cl CI C .§ :2Cl '5E .0.0 !!~ 1: ~ CIE tI ~ E tI Q. .l 5l Ee ~ Cl tIs:en~~CI;:~_..:i ei -6 ~ 5l 'gi 15 § fi il _-cclc(üü.. ..C)~C\ c; è2 ~ ~C) ~ ~ ;! ~ ~ N ~ ~ ~ ~ ~ ~ ~ ~ pl ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ;, ~ ~ ~ N N N N N N N N N ~ ~ ~ ~ ~ ~ ~ C\ C\ ~ C\ ~ ,.. ,.. ~ ,.. ,.. ,.. ,.. C\ C\ C\ Cl C) ~ ~..I" Cl ~ ~ ~ 1: CIE tI Q.~ '5 c 0-cl WCl..-_ .5 ~ ¡g æ.!: w'§ E$..ClQ. g¡ g i- '5tI - tI tI Cl CI 0-E c~'-"'cwCItIECI1QEa:oCl~E ""eCl..c~CI.9-~a.-Q..- CIenûí:JQ...~~E :i.. ~ 0- c: CI .¡: CI li Cl.9enWcEa.i-i- ücl 0 ~ 0 0 CI .2 .. tI ei~~ês~ei:g~~joo:C3enü~a.õa._ o pj..I'I'(' io ~I'('N co (\C)aiC. I'eniooI' ~(' ~z:ioo ~i-z ~a... ~ ~ ~ AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Ye a r Du r i n g Y e a r or So l d Ad j u s t m e n t s of Ye a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 10 6 5 4 7 10 6 5 4 7 21 1 2 Mo t o r V e h i c l e s 15 4 7 8 5 89 1 0 1 65 6 8 4 21 1 3 Ai r c r a f t 24 2 1 2 1 24 2 1 2 1 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 45 6 5 5 5 12 0 7 1 15 5 6 8 5 31 2 9 4 1 21 2 1 Bu i l d i n g s 13 3 1 4 1 1 15 8 6 8 3 14 9 0 0 9 4 21 2 2 Fu r n i t u r e 14 9 3 8 9 42 3 14 9 8 1 2 21 2 3 Of f c e E q u i p m e n t 68 1 3 23 7 70 5 0 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 21 6 2 1 2 25 5 0 6 24 1 7 1 8 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 0 0 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 72 8 9 0 6 8 29 6 9 1 32 6 2 6 6 9 13 4 40 5 6 2 2 4 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 57 6 5 2 87 6 9 1 23 6 3 14 7 7 0 6 22 3 2 Ci r c u i t E q u i p m e n t 71 3 2 8 8 9 97 3 2 6 4 35 4 1 0 12 0 1 5 80 8 2 7 5 8 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 14 6 1 8 14 6 1 8 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 32 4 3 9 32 4 3 9 24 1 1 Po l e s 10 0 6 7 7 10 0 6 7 7 24 2 1 Ae r i a l C a b l e 33 3 4 3 2 33 3 4 3 2 24 2 2 Un d e r g r o u n d C a b l e 54 4 5 4 3 19 8 5 0 8 21 7 1 74 5 2 2 2 24 2 3 Bu r i e d C a b l e 17 3 8 9 0 4 6 89 1 3 5 1 22 8 4 5 5 10 3 9 8 18 0 6 2 3 4 0 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 19 3 2 7 19 3 2 7 24 3 1 Ae r i a l Wi r e 43 1 6 0 43 1 6 0 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S 35 6 2 0 6 8 4 23 7 7 4 2 5 37 7 1 3 2 0 27 0 8 1 34 2 5 3 8 7 0 Re v 3 / 0 2 Pa g e 7 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Ye a r Ra t e * Ye a r Ad j u s t m e n t s of Ye a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 Mo t o r V e h i c l e s 15 4 7 8 5 25 . 0 0 % 0 36 6 0 0 11 8 1 8 5 21 1 3 A i r c r a f t 24 2 1 2 1 10 . 0 0 % 0 0 24 2 1 2 1 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 45 6 5 5 5 12 . 5 0 % 45 4 5 11 5 3 6 7 34 5 7 3 3 21 1 5 Ga r a g e W o r k E q u i p m e n t 0 0 21 1 6 Ot h e r W o r k E q u i p m e n t 0 21 2 1 Bu i l d i n g s 60 0 8 0 6 3. 0 0 % 41 8 6 2 0 64 2 6 6 8 21 2 2 Fu r n i t u r e 10 5 1 3 5 12 . 5 0 % 18 6 7 4 0 12 3 8 0 9 21 2 3 Of f i c e E q u i p m e n t 26 6 4 20 . 0 0 % 13 9 8 0 40 6 2 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 21 3 6 3 7 20 . 0 0 % 28 0 8 1 0 24 1 7 1 8 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 0 12 . 5 0 % 0 0 0 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 55 6 1 6 0 8 12 . 5 0 % 26 5 5 0 3 32 6 2 4 8 8 25 6 4 6 2 3 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 0 0 22 2 0 O p e r a t o r S y s t e m s 0 0 22 3 1 Ra d i o S y s t e m s 47 1 0 0 20 . 0 0 % 11 5 3 0 0 58 6 3 0 22 3 2 Ci r c u i t E q u i p m e n t 46 4 8 8 5 0 10 . 0 0 % 71 3 5 0 8 35 4 1 0 53 2 6 9 4 8 23 1 1 St a t i o n A p p a r a t u s 0 0 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 0 0 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 0 0 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 14 6 1 9 23 . 0 0 % 0 0 14 6 1 9 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 32 4 4 0 20 . 0 0 % 0 0 32 4 4 0 24 1 1 Po l e s 10 1 3 0 6 7. 5 0 % 0 0 10 1 3 0 6 24 2 1 Ae r i a l C a b l e 24 5 2 4 5 8. 6 0 % 28 6 7 5 0 27 3 9 2 0 24 2 2 Un d e r g r o u n d C a b l e 24 8 3 4 7 6. 5 0 % 35 4 6 1 0 28 3 8 0 8 24 2 3 Bu r i e d C a b l e 11 4 1 3 2 2 5 6. 5 0 % 97 6 3 3 3 22 8 4 5 5 12 1 6 1 1 0 3 24 2 4 S u b m a r i n e C a b l e 0 0 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 19 3 2 7 20 . 0 0 % 0 0 19 3 2 7 24 3 1 Ae r i a l W i r e 43 1 6 0 14 . 6 0 % 0 0 43 1 6 0 24 4 1 Co n d u i t S y s t e m s 0 0 TO T A L 24 1 5 0 9 3 0 21 2 5 5 7 0 36 7 8 3 2 0 22 5 9 8 1 8 0 *P l e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 Pa g e 8 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 ID A H O O p e r a t i o n s O n l y Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Ye a r Ra t e * Ye a r Ad j u s t m e n t s of Ye a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 M o t o r V e h i c l e s 15 4 7 8 5 25 . 0 0 % 0 36 6 0 0 11 8 1 8 5 21 1 3 A i r c r a f t 24 2 1 2 1 10 . 0 0 % 0 0 24 2 1 2 1 21 1 4 S p e c i a l P u r p o s e V e h i c l e s 45 6 5 5 5 12 . 5 0 % 45 4 5 11 5 3 6 7 34 5 7 3 3 21 1 5 G a r a g e W o r k E q u i p m e n t 0 0 21 1 6 O t h e r W o r k E q u i p m e n t 12 . 5 0 % 0 21 2 1 B u i l d i n g s 60 0 8 0 6 3. 0 0 % 41 8 6 2 -- ( J -- - - S 4 2 ( ì 6 - g 21 2 2 F u r n i t u r e 10 5 1 3 5 12 . 5 0 % 18 6 7 4 0 12 3 8 0 9 21 2 3 O f f i c e E q u i p m e n t 26 6 4 20 . 0 0 % 13 9 8 0 40 6 2 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 21 3 6 3 7 20 . 0 0 % 28 0 8 1 0 24 1 7 1 8 22 1 1 A n a l o g E l e c t r o n i c S w i t c h i n g 0 12 . 5 0 % 0 0 0 22 1 2 D i g i t a l E l e c t r o n i c S w i t c h i n g 55 6 1 6 0 8 12 . 5 0 % 26 5 5 0 3 32 6 2 4 8 8 25 6 4 6 2 3 22 1 5 E l e c t r o - M e c h a n i c a l S w i t c h i n g 0 0 22 2 0 O p e r a t o r S y s t e m s 0 0 22 3 1 R a d i o S y s t e m s 44 8 2 4 20 . 0 0 % 11 5 3 0 0 56 3 5 4 22 3 2 C i r c u i t E q u i p m e n t 46 4 8 8 5 0 10 . 0 0 % 71 3 5 0 8 35 4 1 0 53 2 6 9 4 8 23 1 1 S t a t i o n A p p a r a t u s 0 0 23 2 1 C u s t o m e r P r e m i s e s W i r i n g 0 0 23 4 1 L a r g e P r i v a t e B r a n c h E x c h a n g e s 0 0 23 5 1 P u b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 14 6 1 9 23 . 0 0 % 0 0 14 6 1 9 23 6 2 O t h e r T e r m i n a l E q u i p m e n t 32 4 4 0 20 . 0 0 % 0 0 32 4 4 0 24 1 1 P o l e s 10 1 3 0 6 7. 5 0 % 0 0 10 1 3 0 6 24 2 1 A e r i a l C a b l e 24 5 2 4 5 8. 6 0 % 28 6 7 5 0 27 3 9 2 0 24 2 2 U n d e r g r o u n d C a b l e 24 8 3 4 7 6. 5 0 % 35 4 6 1 0 28 3 8 0 8 24 2 3 B u r i e d C a b l e 11 3 7 0 2 8 5 6. 5 0 % 97 3 0 2 1 22 8 4 5 5 12 1 1 4 8 5 1 24 2 4 S u b m a r i n e C a b l e 0 0 24 2 6 I n t r a b u i l d i n g N e t w o r k C a b l e 19 3 2 7 20 . 0 0 % 0 0 19 3 2 7 24 3 1 A e r i a l W i r e 43 1 6 0 14 . 6 0 % 0 0 43 1 6 0 24 4 1 C o n d u i t S y s t e m s 0 0 TO T A L 24 1 0 5 7 1 4 21 2 2 2 5 8 36 7 8 3 2 0 22 5 4 9 6 5 2 *P l e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3/0 2 Pa g e 9 INVESTMENTS Report below the investments in Accunts 1401, 1402 and 1406. Identify each investment as to the account in which included. Minor amounts in Account 1406 may be grouped by classes. Description Telsat CoBank Patronage Rocky Mountain Wireless Syringa Networks Internet Syringa Electronic Equip. Syringa Fiber Independent Cable Systems ICS Electronics ICS Cable Spec Access Eq Non-Reg Declo Wireless DSL Elec Declo Wireless DSL Cable Voip Equipment Syringa Wireless Syringa Wireless Tower Syringa Wireless Elec Nextphone Website Redban Goodwil DSL Inventory Syringa Wireless Inventory Voip Inventory Totals Date Acquired Book Cost of Investments Disposed of This year o RECEIVABLES Book Cost of Investments Held at End of Year o 390169 20 2059166 o 418432 354102 294 102151 334260 3845 o o 1447 o o o 18323 o o 5816 1989 3690013 Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Name of Company Customers Qwest CABS AT&T NECA Syringa Wireless Idaho USF Misc. Totals Rev 3/02 Amount at End of YearNotes Accounts Receivable Receivable 457930 85 152349 o 812267 508 44029 5113 1472281 Page 10 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor Totals Date of Note Interest Rate ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100.00 Name of Creditor Federal Excise Tax Misc Qwest pmts to Arapahoe Tel Deferred Comp Payable ATC Long Distance Sales Tax -Idaho Verisign 911 Payable ITSAP Syringa Wireless Franchise Fee - ICS Totals Rev 3/02 Page 11 Due Date Face Amount Amount 13794 302862 52188 50000 12982 4948 1413 4398 180 8130 450895 LO N G - T E R M D E B T Ac c o u n t s 4 2 1 0 , 4 2 4 0 , 4 2 5 0 , 4 2 6 0 , 4 2 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e . Da t e Da t e Fa c t Pr e m i u m l D i s c o u n t Cl a s s & S e r i e s of of Am o u n t Ou t s t a n d i n g Ye a r In t e r e s t f o r y e a r of O b l i a a t i o n Is s u e Ma t u r i t v Au t h o r i z e d Ye a r - E n d To t a l Am o r t i z e d Ra t e Am o u n t RU S N o t e s Va r i o u s Va r i o u s 92 1 2 8 8 7 70 7 3 0 9 0 2% to 5% 30 0 1 5 2 Co B a n k 10 - 1 9 9 6 12 - 2 0 1 1 10 3 8 0 2 4 0 20 7 9 2 4 2 Va r i a b l e 14 9 9 5 5 Zi o n s B a n k C o r p . 3- 2 0 0 6 3- 2 0 0 9 34 5 2 9 6 0 8. 8 5 % 17 0 4 9 Re v 3 / 0 2 Pa g e 1 2 CAPITAL STOCK Report below the particulars called for concerning common and preferred stock at end of year, designating separate series of any general class. Show totals separately for common and preferred. For each class of preferred stock, show the dividend rate and whether dividends are cumulative or noncumulative. Show details in a footnote of capital stock sold during the year. Include number of shares, consideration received, premium or discount, and expenses incurred. Class & Series of Stock Common Rev 3/02 Number of Shares Authorized 10000 Par Value per Share 4.02 Page 13 Outstanding per Balance Sheet Shares Amount INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 15)9428890 9390811 Total Operating Expenses (from page 17)8229971 8188762 7100 Other Operating Income and Expense 0 0 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 0 0 7230 Operating State and Local Income Taxes 47 20 7240 Operating Other Taxes 124957 124957 7250 Provision for Deferred Operating Income Taxes-Net 0 0 7200 Operating Taxes (Total)125004 124977 7310 Dividend Income 7320 Interest Income 9024 9024 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 27081 27081 7350 Gains/Losses from the Disposition of Certain Propert -163787 -163787 7360 Other Nonoperating Income -6073793 -6073793 7370 Special Charges 7300 Nonoperating Income and Expense -6201475 -6201475 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net 7400 Nonoperating Taxes 7510 Interest on Funded Debt 467754 467754 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions 429 429 7500 Interest and Related Items 468183 468183 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net 7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income 205632 205632 AMOUNT TRANSFERRED TO RETAINED EARNINGS -5390111 -5386954 Rev 3/02 Page 14 OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Other Local Exchange Revenue 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue - All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Billng Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billng & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: NECA USF $_1636290 1626652 1616608 131605 131605 445414 5822723 619660 774064 443030 5803160 619660 767976 3969 3969 5456 5456 9535 9535 22793 22793 -32981 -32981 9428890 9390811 . To what account were they booked? 5082.12 State USF $528352 . To what account were they booked? 5084.50 Rev 3/02 Page 15 OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artorks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Offce Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Offce Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information OriginationlTermination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilties Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE Rev 3/02 108806 9778 108131 9717 59580 59210 0 0 116169 115448 3579 3557 48048 47750 73827 73369 520568 517336 535 532 419567 416962 6420 6380 158269 157286 69 69 6113 6075 0 0.00 0 0 0 0 0 13183 13101 0 0 1917404 1905500 3461915 3440422 Page 16 Item OPERATING REVENUES Plant Nonspecific Operations Expense 6510 Other Propert/PlanUEquipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-Propert Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Rev 3/02 Total Company 3461915 3348 82642 178808 53948 120470 o 2125570 Idaho Only 3440422 3327 82129 177698 53613 119722 o 2122258 2564786 2558747 0 195 194 0 0 34390 34177 7059 7015 466145 507789 463251 504637 770379 765596 682679 678441 157543 156565 54786 54446 5066 5034 1659 1649 21951 21815 1418 1695481 8229971 Page 17 1409 1684956 8188762 CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , 2 0 0 8 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f c e : A l b i o n T e l e p h o n e C o m p a n y , I n c . Pr e f i x ( e s ) : 3 4 9 , 6 3 8 , 6 4 5 , 6 7 3 , 6 9 8 , 8 2 4 , 8 2 7 , 5 2 7 , 5 5 4 , 5 8 8 , 7 6 6 , 7 6 7 Ce n t r a l O f f i c e S w i t c h Ty p e : T e k e l e c T 7 Ch e c k a l l t h a t a p p l y : St a n d A l o n e _ Ho s C X _ Re m o t e _ Ch e c k on e : Di g i t a L X _ An a l o g _ Ch e c k on e : El e c t r o n i c _ El e c t r o - M e c h a n i c a l _ Ot h e r : _ S o f t S w i t c h Ac c e s s L i n e C a p a c i t y De s i g n : _ 1 0 0 0 0 Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : _ 4 4 5 3 , (I n c l u d e C e n t r e x , P A L , S e m i - P u b . ) In s t a l l e d / E q u i p p e d : _ 1 0 0 0 0 Pu b l i c T e l e p h o n e L i n e s _ 2 5 _ Co m p a n y O f f i c i a l L i n e s _ 8 7 _ Co m p a n y T e s t L i n e s _ 1 1 8 _ Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Mu l t i - Li n e 1- P a r t Re s i d e n c e Bu s i n e s s Si n g l e L i n e Mu l t i - Si n g l e L i n e To t a l Mu l t i - Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e 1- P a r t Pa r t Re s i d e n c e N. A R . 1- P a r t 1- P a r t Pa r t Bu s i n e s s & B u s i n e s s 33 8 4 33 8 4 10 2 5 10 2 5 44 0 9 37 6 37 6 57 57 43 3 53 1 53 1 52 52 58 3 32 2 9 32 2 9 10 3 0 10 3 0 42 5 9 Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Ye a r Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . O . : _ Di a l T o n e f r o m a n o t h e r C . O . : Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : _ 4 4 5 _ Cu s t o m C a l l n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : _ 2 0 3 2 To t a l n u m b e r o f fe a t u r e s s u b s c r i b e d t o : _ 1 9 _ Re v 3/ 0 2 Pa g e 1 8 Lo c a l E x c h a n g e 1_ A L L 2.3,4,5,6,7,8,9_10 , 11 12 , 13 , 14 . 15 , 16 , 17 , 18 Re v 3 / 0 2 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G 2 0 0 8 . Av e r a g e # of Cu s t o m e r Li n e s i n U s e 43 4 9 Lo c a l C a l l s Nu m b e r A v g . l (1 O O O s ) L i n e Pa g e 1 9 To l l C a l l s O r i g i n a t e d ( T o t a l o f a l l C a r r i e r s ) Av g . l In t r a s t a t e I n t e r s t a t e T o t a l L i n e 13 3 0 8 9 17 5 1 6 1 30 8 2 5 0 71 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2008. CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA31.41.01.105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes_X_No_ Included in directory Yes_X_No_ Date of notification _2-1-07 Alternate method of notification Rule IDAPA 31.41.01.403.02 Record of Complaints: Number received by Company o Category of complaints (if known): Deposit Disputes Charges on Bil DeniallTermination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 CERTIFICATE State of Idaho ) ) ss )County of Cassia WE, the undersigned ODeen Redman and Darla Redman, of Albion Telephone Company, Inc. located at 225 W. North Street, Albion, 10 83311, on our oath do severally say that the foregoing return has been prepared under our direction, from the original books, papers, and records of said utilty; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utilty for the period covered by the return in respect to each and every matter and thing therein set forth, to the best of. our knowledge, information and belief.tK~ (Chief Officer) Subscribed and Sworn to Before Me this /t,d day of ~, (Year) 07.l î. If' ~11 'Lø.t~J~ry Public --'IW.JIIYNOMr.... STATE OF II . My Commission expires 7- ó1 s=, (Year) $I 0 ~,;.. Rev 3/02 gdklexcel/jnelson/anulrpts/telannualrpt Page 21 20 0 7 F O R M I I N P U T M A S T E R I I I I CO M P A N Y N A M E : A l b i o n T e l e p h o n e C o m p a n y , I n c . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 2 0 0 7 Se p e r a R e s u l t s o f I d a h o O p e r a o n s 1 I To t l Id a h o In t e r s O p e r a i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t Li n e Su b j e c t To Sw i t h e d Sp e c i a l Sw i t h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l SU M M A R Y Op e r a t i n g R e v e n u e s 50 X X L o c a l - B i l e d (1 ) 1. 1, 8 5 0 , 6 7 2 0 18 5 0 7 2 1, 8 5 0 , 6 7 2 -E A S B i l e d (1 ) 2. 0 0 0 -E A S S e t e m e n t (1 ) 3. 0 0 0 50 8 X A c c s s - S L C ( E n d U s e r ) (2 ) 4. 43 1 , 1 0 2 43 1 1 0 1 . 9 8 43 1 , 1 0 2 0 -S w i t c h e d ( T S + N T S ) (2 ) 5. 7,0 4 1 , 4 5 8 62 6 4 7 9 3 . 3 2 6, 2 6 4 . 7 9 3 77 6 6 6 4 . 9 9 77 6 , 6 6 5 -S p e c i a l (2 ) 6. 57 1 , 7 5 4 60 6 5 4 . 6 4 50 6 , 5 4 1 65 2 1 3 . 2 8 65 , 2 1 3 51 X X T o l l - M e s s a g e (3 a ) 7. 0 0 0 -P r i v a t e L i n e (3 b ) 8. 0 0 0 -s t t e m e n t (3 c ) 9. 0 0 0 52 X X M i s c . - B i l i n g & C o l l e c i o n (4 ) 10 . 29 , 2 4 8 24 3 . 7 1 2,4 0 4 26 8 4 . 6 7 26 , 8 4 5 -D i r e c t o r y A d v e r t s i n g 11 . 0 0 0 -O p e r a t i n g R e n t s 12 . 2, 7 5 0 0 27 5 0 2,7 5 0 -O t h e r M i s c . 13 . 3, 0 0 4 0 30 0 4 . 4 1 3,0 0 4 53 0 X L e s s : U n c o l l e c t i b l e R e v . ( - ) 14 . -2 6 5 , 0 8 3 0 -2 6 5 0 8 3 . 3 7 -2 6 5 , 0 8 3 To t a l R e v e n u e s 15 . 9,6 6 4 , 9 0 6 6, 6 9 8 , 2 9 9 50 6 , 5 4 1 7, 2 0 4 , 8 4 0 80 3 , 5 1 0 65 . 2 1 3 0 1, 5 9 1 , 3 4 2, 4 6 0 , 0 6 6 Op e r a t i n g E x p e n s e s 61 X X - 6 4 X X P l a n t S o e c i f i c O o e r . 5a 16 . 2,4 1 9 , 8 3 9 1, 0 3 4 , 1 4 5 23 4 , 1 4 4 1, 2 6 8 , 2 8 9 37 6 , 4 3 5 23 , 9 6 2 66 , 1 2 2 68 5 , 0 3 1 1, 1 5 1 , 5 5 0 65 X X P l a n t N o n s o e c f i c O o e r a t i o n s 5a 17 . 58 2 , 3 5 0 28 7 , 8 0 0 48 , 5 6 1 33 6 , 3 6 1 81 , 1 8 9 5, 1 1 7 13 , 7 6 6 14 5 , 9 1 7 24 5 , 9 8 9 65 6 X D e o r e a t i o n & A m o r t i z a t i o n 5a 18 . 2,6 0 7 , 0 4 6 1, 1 7 9 , 6 4 8 23 7 , 7 3 7 1, 4 1 7 , 3 8 5 37 7 , 9 1 8 30 , 9 6 9 69 , 3 4 9 71 1 4 2 5 1, 1 8 9 , 6 6 1 66 X X C u s t o m e r O o e r a t i o n s 5a 19 . 41 6 , 9 0 8 16 7 , 6 4 9 54 3 16 8 , 1 9 2 92 , 1 0 0 45 9 0 15 6 , 1 5 7 24 8 , 7 1 6 67 X X C o r p o r a t e O p e r a t i o n s 5a 20 . 1, 7 5 0 , 4 9 0 76 7 , 1 1 9 14 2 . 3 4 7 90 9 . 4 6 6 28 1 , 1 9 7 14 , 8 2 4 40 , 1 2 1 50 4 , 8 8 2 84 1 , 0 2 4 Ot h e r O p e r a t i n g (5 a ) 21 . 0 0 0 0 0 0 0 0 0 To t l E x p e n s e s (5 a ) 22 . 7, 7 7 6 , 6 3 3 3, 4 3 6 , 3 6 1 66 3 , 3 3 2 4, 0 9 9 , 6 9 3 1, 2 0 8 , 8 3 9 75 , 3 3 1 18 9 , 3 5 8 2, 2 0 3 , 4 1 2 3, 6 7 6 , 9 4 0 Op e r a t i n g T a x e s : (6 ) 72 4 0 G e n e r a l T a x e s 23 . 0 0 0 72 3 0 S t a t e l L o c l l n c . T a x ( C u r r n t ) 24 . 0 0 0 72 2 0 F e d e r a l In c o m e T a x ( C u r r e n t ) 25 . 46 8 , 7 0 6 24 7 2 8 64 1 31 1 , 2 7 9 58 1 7 4 33 3 1 13 5 5 3 82 3 6 9 15 7 , 4 2 7 72 5 0 N e t D e f r r d I n c o m e T a x e s 26 . -4 9 , 5 7 7 -2 6 9 7 ~8 2 8 -3 2 . 9 2 5 ~1 5 3 -3 5 2 -1 4 3 -8 7 1 3 -1 6 , 6 5 2 72 1 0 N e t I n v e s t m e n t T a x C r e d i t s 27 . 0 0 0 To t l Ta x e s 28 . 41 9 , 1 2 9 22 0 , 6 3 1 57 , 7 2 3 27 8 . 3 5 4 62 , 0 2 1 2, 9 7 9 12 , 1 1 9 73 , 6 5 6 14 0 , 7 7 5 Ne t O p e r a i n g I n c o m e 29 . 1, 4 6 9 , 1 4 4 3, 0 4 1 , 3 0 7 -2 1 4 , 5 1 5 2, 8 2 6 , 7 9 3 -4 7 , 3 5 0 -1 3 , 0 9 6 -2 0 1 , 4 7 7 ~8 5 , 7 2 5 -1 , 3 5 7 , 6 4 9 SU M M A R Y ( c o n t i n u e d ) Av e r a g e R a t e B a s e 20 0 1 T e l e c o . P l a n t i n S e r v i c e 15 b \ 1. 38 , 9 7 3 , 1 8 1 16 , 4 1 6 , 9 9 3 3, 7 1 8 , 0 0 7 20 , 1 3 5 , 0 0 0 6, 2 2 1 , 8 1 8 39 0 , 7 4 3 1, 0 5 7 , 2 3 0 11 , 1 6 8 , 3 9 0 18 , 8 3 8 , 1 8 1 20 0 5 P l a n t A c q u i s i t i o n A d j u s t m e n t 2. 0 0 31 0 0 L e s s : A c c u m u l a t e d D e o r . 1 - \ (5 c \ 3. -2 3 4 1 2 , 5 3 6 -9 , 3 2 0 , 9 7 5 -1 , 8 3 5 , 4 1 7 -1 1 , 1 5 6 , 3 9 2 -3 . 7 6 1 , 7 1 3 -2 5 0 4 4 7 -4 7 5 , 9 9 6 -7 , 7 6 7 , 9 8 8 -1 2 , 2 5 6 , 1 4 4 34 x x - 3 6 x x A c m u l a t e d A m o r t . ( - ) (5 ) 4. 0 0 41 0 0 - 4 3 4 0 A c m . D e f e r r d T a x ( - ) 5. -5 8 3 , 4 1 3 -2 4 6 1 4 -5 6 9 -3 0 1 , 4 7 3 -9 3 0 5 6 -5 8 5 6 -1 5 7 7 7 -1 6 7 2 4 3 -2 8 1 , 9 4 0 12 2 0 M a t e r i a l s a n d S u p p l i e s 6 23 9 6 9 8 87 3 7 8 19 7 9 6 10 7 , 1 7 4 47 1 3 8 27 4 9 58 76 7 9 1 13 2 , 5 2 4 40 4 0 C u s t o m e r D e p o i t s 7 -6 7 7 1 -2 8 5 3 ~4 6 -3 , 4 9 9 -1 0 8 0 ~8 -1 8 3 -1 9 4 1 -3 , 2 7 2 43 1 0 O t h e r L o n g T e r m L i a b i l t i e s 8 -1 9 5 0 8 0 -8 2 6 2 1 -1 6 2 7 9 -9 8 , 9 0 0 -3 2 1 5 8 -1 6 9 5 -4 -5 7 7 3 9 -9 6 , 1 8 0 - E q u a l A c c s s Eq u i p m e n t (7 ) 9 0 0 0 - O t h e r R a t e B a s e 10 49 3 , 4 8 3 22 3 0 8 5 30 9 1 2 25 3 . 9 9 7 63 7 2 0 30 7 2 87 6 4 16 3 9 4 23 9 , 4 8 6 To t l A v e r a g e R a t e B a s e 11 16 , 6 0 8 , 5 6 2 7, 0 7 5 , 1 9 3 1, 8 6 0 , 7 1 4 8, 9 3 5 , 9 0 7 2, 4 4 , 6 7 0 13 8 , 4 8 9 57 5 , 2 8 6 3, 4 1 4 , 2 1 0 6. 5 7 2 , 6 5 6 Pa g e 1 o f 5 PL A N T I N S E R V I C E D E T A I L 21 X X G e n e r a l S u p p o r t F a c i l t i e s 1. 2,7 5 4 , 3 0 6 1, 1 6 6 , 6 7 7 26 2 , 6 5 8 1,4 1 9 , 2 3 5 44 4 , 8 8 4 26 , 6 5 1 77 , 7 5 1 78 5 , 7 8 4 1, 3 3 5 , 0 7 0 22 X X C e n t r l O f f c e E q u i p m e n t : CA T 1 - 0 p e r a t o r S y s t e m s 2. 0 0 0 CA T 2 - T a n d e m S w i t c i n g ( A l i c e . ) 3. 0 0 0 CA T 2 - T a n d e m S w i t c h i n g ( A s s i g n . ) 4. 0 0 0 CA T 3 - L o c a l S w i t c h i n g 5. 5,7 1 6 , 8 0 5 48 5 9 2 8 4 4, 8 5 9 , 2 8 4 85 7 5 2 1 85 7 , 5 2 1 CA T 4 . 1 2 - E x c h . T r u n k ( J o i n t U s e ) 6. 43 3 , 0 0 7 0 43 3 0 0 7 43 3 , 0 0 7 CA T 4 . 1 2 - E x c h . T r u n k ( O e d . U s e ) 7. 1, 5 1 8 , 8 1 2 14 7 1 6 4 1, 4 7 1 , 6 4 5 47 1 6 7 47 , 1 6 7 CA T 4 . 1 3 - S u b s c r . L i n e ( J o i n t U s e ) 8. 4, 3 0 9 , 0 6 9 10 6 4 1 6 1 39 9 2 9 1, 1 0 4 , 0 8 0 10 6 4 1 6 1 12 5 3 6 21 2 8 3 0 2 3, 2 0 4 , 9 8 9 CA T 4 . 1 3 - S u b s c r . L i n e ( O e d . U s e ) 9. 0 0 0 CA T 4 . 2 3 - I X T r u n k ( J o i n t U s e ) 10 . 83 7 , 9 2 8 61 6 7 9 1 44 1 4 9 66 0 , 9 4 0 16 1 6 7 1 15 3 1 7 0 17 6 , 9 8 8 CA T 4 . 2 3 - I X T r u n k C k t . ( O e d . U s e ) 11 . 81 , 2 1 7 49 1 1 6 49 , 1 1 6 32 1 0 1 32 , 1 0 1 CA T 4 . 3 - H o s t / R e m o t e T r u n k C k t . 12 . 91 5 , 6 7 8 55 2 3 6 5 55 2 , 3 5 5 14 4 7 7 8 21 8 5 4 36 3 , 3 2 3 Ot h e r C O E 13 . 0 0 0 To t l C O E 14 . 13 , 8 1 2 , 6 1 6 7, 0 9 2 , 5 8 1 1, 6 0 4 , 8 3 9 8, 6 9 7 . 4 2 0 1, 3 7 0 , 6 0 0 10 7 , 1 2 1 43 3 , 0 0 7 3, 2 0 4 , 3 6 8 5, 1 1 5 , 0 9 6 23 X X I n f o n n a t i o n O r i a . / T e n n . E q u i p m e n t : CA T 1 - R e g u l a t e d C P E 15 . 0 0 0 Ot h e r lO T 16 . 0 0 0 To t l lO T 17 . 0 0 0 0 0 0 0 0 0 24 X X C a b l e & W i r e F a c i l i t i e s : CA T 1 . 3 - S u b s c r b e r L i n e ( C o m m o n ) 18 . 13 , 8 3 4 , 6 6 5 34 5 6 6 3, 4 5 8 . 6 6 6 34 5 8 6 6 6 69 1 7 3 3 3 10 , 3 7 5 , 9 9 9 CA T 1 . 1 , 2 - S u b s c r i b e r L i n e ( O e d . ) 19 . 17 0 , 5 1 8 12 9 7 7 6 12 9 , 7 7 5 40 7 4 3 40 , 7 4 3 CA T 2 - E x c h . T r u n k ( J o i n t U s e ) 20 . 54 6 , 4 7 2 0 64 4 7 2 54 6 . 4 7 2 CA T 2 - E x c h . T r u n k ( O e d . U s e ) 21 . 1, 6 8 6 . 7 6 6 15 2 8 8 7 7 1, 5 2 8 , 8 7 7 15 7 8 8 9 15 7 , 8 8 9 CA T 3 - I X T r u n k ( J o i n t U s e ) 22 . 4, 9 7 5 , 8 2 0 40 9 7 6 2 12 5 6 3 1 4, 1 7 5 , 3 8 3 77 4 8 2 8 25 6 0 9 80 0 , 4 3 7 CA T 3 - I X T r u n k ( O e d . U s e ) 23 . 98 , 9 5 7 66 2 2 7 66 , 2 2 7 32 7 3 0 32 , 7 3 0 CA T 4 - H o s t / R e m o t e T r u n k 24 . 1, 0 9 3 , 1 6 2 65 9 4 1 7 65 9 , 4 1 7 17 2 8 4 0 26 0 9 0 6 43 3 , 7 4 5 Ot h e r C & W F 25 . 0 0 0 To t I C & W F 26 . 22 , 4 0 6 , 3 6 0 8,1 6 7 , 8 3 5 1, 8 6 0 , 6 1 0 10 , 0 1 8 , 3 4 5 4, 4 0 6 , 3 3 4 25 6 , 9 7 1 64 , 4 7 2 7, 1 7 8 . 2 3 8 12 , 3 8 8 , 0 1 6 26 X X o t h e r A s s e t : Ca p i t a l L e a s e s 27 . 0 0 0 Le a s e h o l d I m p r o v e m e n t s 28 . 0 0 0 In t a n g i b l e s 29 . 0 0 0 To t l o t h e r A s s e t 30 . 0 0 0 0 0 0 0 0 0 To t a l T e l e c o m . P l a n t i n S e r v i c e (5 b ) 31 . 38 , 9 7 3 , 1 8 1 16 , 4 1 6 , 9 9 3 3, 7 1 8 , 0 0 7 20 , 1 3 6 , 0 0 0 6,2 2 1 , 8 1 8 39 0 , 7 4 3 1, 0 6 7 , 2 3 0 11 , 1 6 8 , 3 9 0 18 , 8 3 8 , 1 8 1 De p r e c i a t i o n & A m o r t i z a t i o n Ac c u m u l a t e d D e p r e c i a t i o n D e i l 31 1 X G e n e r a l S u p p o r t F a c i l t i e s 1. -2 , 2 2 5 , 4 4 0 -9 3 7 6 6 6 -2 1 2 3 1 1 -1 , 1 4 9 , 9 7 6 -3 5 4 9 6 9 -2 2 3 7 1 -6 0 1 8 3 -6 3 7 9 6 1 -1 , 0 7 5 , 4 6 4 31 2 X C e n t r a l O f c e S w i t c h i n g 2. -4 , 7 5 0 , 2 3 3 -4 3 7 6 9 8 -4 , 0 3 7 , 6 9 8 -7 1 2 6 3 6 -7 1 2 , 5 3 5 31 2 X O p e r a t o r S y s t e m s 3. 0 0 0 31 2 X C e n t r a l O f c e T r a n s m i s s i o n 4. -4 , 7 1 1 , 1 8 4 -1 3 4 2 1 4 9 -9 1 0 3 6 1 -2 , 2 5 2 , 5 0 0 -8 0 3 6 9 7 -5 8 3 0 -2 4 9 8 1 -1 3 6 0 2 7 6 -2 , 4 5 8 , 6 8 4 31 3 X I n f o r m a t i o n O r i g . / T e r m . E q u i p . 5. 0 0 0 31 4 X C a b l e & W i r e F a c i l t i e s 6. -1 1 , 7 2 5 , 6 7 9 -3 0 0 3 4 3 -7 1 2 7 6 6 -3 , 7 1 6 , 2 1 8 -2 6 0 3 1 5 7 -1 7 2 2 4 5 .1 6 6 8 3 2 -6 7 2 2 6 -8 , 0 0 9 , 4 6 1 To t l A c c u m u l a t e D e p r e c i a t i o n (5 c ) 7. -2 3 , 4 1 2 , 5 3 6 -9 , 3 2 0 , 9 7 5 -1 , 8 3 5 . 4 1 7 -1 1 , 1 5 6 , 3 9 2 -3 , 7 6 1 , 7 1 3 -2 6 0 , 4 4 7 -4 7 5 , 9 9 6 -7 , 7 6 7 , 9 8 8 -1 2 , 2 6 6 , 1 4 4 Ac c u m u l a t e d A m o r t i z a t i o n D e t i l 34 1 0 C a p i t a l L e a s e s 8. 0 0 0 34 2 0 L e a s e h o l d I m p r o v e m e n t s 9. 0 0 0 35 0 0 I n t a n a i b l e s 10 . 0 0 0 Pa g e 2 o f 5 36 0 0 A c q u i s i t i o n A d j u s t m e n t 11 . 0 0 0 To t l A c c u m u l a t e d A m o r t i z a i o n (5 c ) 12 . 0 0 0 0 0 0 0 0 0 OP E R A T I N G E X P E N S E D E T A I L 61 X X ~ 4 X X P l a n t S p e c i f i c O p e r a t i o n s 61 1 0 - 2 0 G e n e r a l S u p p o r t F a c i l t i e s 1. 33 9 , 0 8 4 14 2 8 6 9 32 3 4 9 17 5 , 2 1 8 54 8 5 34 0 8 91 7 0 97 2 0 3 16 3 , 8 6 6 62 1 X Ce n t r a l O f c e S w i t c h i n g 2. 40 1 , 8 1 8 20 6 3 2 9 46 6 8 6 25 3 , 0 1 5 39 8 7 2 31 1 6 12 5 9 7 93 2 1 8 14 8 , 8 0 3 62 2 0 Op e r a t o r S y s t e m s 3. 0 0 0 62 3 X Ce n t r a l O f c e T r a n s m i s s i o n 4. 48 9 , 5 4 4 25 1 3 7 5 55 8 7 9 30 8 . 2 5 4 48 5 7 7 37 9 7 15 3 4 7 11 3 5 6 9 18 1 , 2 9 0 63 X X In f o r m a t i o n O r i g . r r e r m . E q u i p . 5. 0 0 0 64 X X Ca b l e & W i r e F a c i l t i e s 6. 1, 1 8 9 , 3 9 3 43 3 5 7 2 98 2 3 0 53 1 , 8 0 2 23 3 9 0 1 13 6 4 1 29 0 0 8 38 1 0 4 1 65 7 , 5 9 1 To t a l P l a n t S p e c i f i c (S a ) 7. 2, 4 1 9 , 8 3 9 1, 0 3 4 , 1 4 5 23 4 . 1 4 4 1, 2 6 8 , 2 8 9 37 6 , 4 3 5 23 , 9 6 2 66 , 1 2 2 68 6 , 0 3 1 1, 1 6 1 , 5 5 0 65 X X P l a n t N o n s p e c i f i c O p e r a t i o n s (8 ) 65 1 2 Pr o v i s i o n i n g 8. 0 0 0 65 3 X Ne t r k O p e r a t i o n s 9. 50 9 , 0 2 0 21 4 4 7 0 48 5 6 1 26 3 , 0 3 1 81 1 8 9 51 1 7 13 7 6 6 14 5 9 1 7 24 5 , 9 8 9 65 4 0 Ac c s s P a i d t o L E C s (9 ) 10 . 73 , 3 3 0 73 3 3 0 73 , 3 3 0 0 To t a l P l a n t N o n s p e c i f i c (S a ) 11 . 58 2 , 3 5 0 28 7 , 8 0 0 48 , 5 6 1 33 6 , 3 6 1 81 , 1 8 9 5, 1 1 7 13 , 7 6 6 14 5 , 9 1 7 24 5 , 9 8 9 65 6 X D e p r e i a t o n & A m o r t i z a i o n (8 ) 65 6 1 Ge n e r a l S u p p o r t F a c i l t i e s 12 . 89 , 5 6 8 37 7 3 9 85 4 46 , 2 8 4 14 2 8 5 90 0 24 2 2 25 6 7 6 43 , 2 8 4 65 6 1 Ce n t r l O f c e S w i t c h i n g 13 . 59 0 , 5 0 7 50 1 9 3 1 50 1 , 9 3 1 88 5 7 6 88 , 5 7 6 65 6 1 Op e r a t o r S y s t e m s 14 . 0 0 0 65 6 1 Ce n t r l O f c e T r a n s m i s s i o n 15 . 74 4 , 5 7 8 22 9 9 15 4 2 1 7 38 4 , 1 6 5 12 3 0 1 8 11 3 2 0 37 5 1 0 18 8 5 6 5 36 0 , 4 1 3 65 6 1 In f o r m a t i o n O r i g . r r e r m . E q u i p . 16 . 0 0 0 65 6 1 Ca b l e & W i r e F a c i l i t i e s 17 . 1. 1 8 2 , 3 9 3 41 0 0 3 0 74 9 7 5 48 5 , 0 0 5 24 0 5 1 4 18 7 4 9 29 4 1 7 40 8 6 0 8 69 7 , 3 8 8 65 6 3 Ca p i t a l L e a s e s 18 . 0 0 0 65 6 3 Le a s e h o l d I m p r o v e m e n t s 19 . 0 0 0 65 6 4 In t a n g i b l e s 20 . 0 0 0 65 6 5 Ac q u i s i t i o n A d j u s t m e n t 21 . 0 0 0 To t l D e p r e i a t i o n & A m o r t i z a t i o n (S a ) 22 . 2,6 0 7 , 0 4 6 1, 1 7 9 , 6 4 8 23 7 , 7 3 7 1, 4 1 7 , 3 8 5 37 7 , 9 1 8 30 , 9 6 9 69 , 3 4 9 71 1 , 4 2 5 1,1 8 9 , 6 6 1 OP E R A T I N G E X P E N S E ( c o n t i n u e d ) 66 X X C u s t o m e r O p e r a i o n s 66 1 X Ma r k e t i n g 1. 16 , 6 7 2 91 1 2 64 9,6 5 5 11 9 6 45 9 53 3 7, 0 1 7 66 2 X Op e r a t o r S e r v i c e s 2. 5, 6 1 2 0 66 1 2 5, 6 1 2 66 2 X Di r e c o r y P u b l i s h i n g - A l p h a . 3. 0 0 0 66 2 X Di r e o r y P u b l i s h i n g - C l a s s i f e d 4. 0 0 0 66 2 X Di r e r y P u b l i s h i n g - F o r e i g n 5. 0 0 0 66 2 3 Se r v i c e O r d e r P r o . - E n d U s e r 6. 13 0 , 7 1 2 58 2 6 6 58 , 2 6 6 68 3 3 66 6 1 3 72 , 4 4 6 66 2 3 Pa y m e n t & C o l l e c t i o n - E n d U s e r 7. 66 , 4 5 9 21 2 0 6 21 , 2 0 6 13 2 9 9 31 9 6 4 45 , 2 5 3 66 2 3 Bi l l n g I n q u i r y - E n d U s e r 8. 39 , 5 6 3 12 6 2 4 12 . 6 2 4 79 1 7 19 0 2 2 26 , 9 3 9 66 2 3 Se r v i c e O r d e r P r o c . - C X R 9. 58 0 29 0 29 0 29 0 29 0 66 2 3 Pa y m e n t & C o l l e c o n - C X R 10 . 3, 5 7 2 17 8 6 1, 7 8 6 17 8 6 1, 7 8 6 66 2 3 Bi l i n g I n q u i r y - C X R 11 . 1, 5 8 2 79 1 79 1 79 1 79 1 66 2 3 Co i n A d m i n i s t r t i o n 12 . 0 0 0 66 2 3 Re v . A c c . - T o l l T i c k e t P r o c . 13 . 0 0 0 66 2 3 Re v . A c c . - L o c a l M e s s . P r o . 14 . 39 , 6 4 7 17 0 0 9 17 , 0 0 9 22 6 3 8 22 , 6 3 8 66 2 3 Re v . A c c . - O t h e r B i l & C o l i . 15 . 81 , 4 9 0 24 3 0 4 24 , 3 0 4 28 5 9 3 28 5 9 3 57 , 1 8 6 66 2 3 Re v . A c c . - 5 L C B i l l n g 16 . 4, 2 8 9 42 8 9 4, 2 8 9 0 66 2 3 Re v . A c c . - e X R B & C (9 ) 17 . 17 , 5 1 6 87 5 8 8, 7 5 8 87 5 8 8, 7 5 8 66 2 3 B & C A m t s P a i d t o L E C s (9 ) 18 . 0 0 0 66 2 3 Ot h e r C u s t o m e r S e r v i c e 19 . 9, 2 1 4 92 1 4 9, 2 1 4 0 To t l C u s t o m e r O p r a i o n s (S a ) 20 . 41 6 , 9 0 8 16 7 , 6 4 9 64 16 8 , 1 9 2 92 , 1 0 0 45 9 0 16 6 , 1 6 7 24 , 7 1 6 67 X X C o r p o r a O p e r a t i o n s : 67 1 X Ex e c u t i v e & P l a n n i n g 21 . 85 6 , 8 3 4 36 2 8 8 7 71 5 0 1 43 4 , 3 8 8 14 1 2 4 5 74 4 20 1 5 3 25 3 0 2 42 2 , 4 4 6 67 2 X Ge n e r a l & A d m i n i s t r a t i v e 22 . 89 3 , 6 5 6 40 4 2 3 2 70 8 4 47 5 , 0 7 8 13 9 9 5 2 73 7 8 19 9 6 8 25 1 2 8 0 41 8 , 5 7 8 Pa g e 3 o f 5 67 2 8 EA S S e t t e m e n t E x p e n s e 23 . 0 0 0 To t l C o r p o r a t e O p e r a t i o n s (5 a ) 24 . 1, 7 5 0 , 4 9 0 76 7 , 1 1 9 14 2 , 3 4 7 90 9 , 4 6 6 28 1 , 1 9 7 14 , 8 2 4 40 , 1 2 1 50 4 , 8 8 2 84 1 , 0 2 4 - O t h e r O p e r a t i n g E x p e n s e s : Eq u a l A c c s s P r o v i s i o n (1 0 ) 25 . 0 0 0 Un i v e r s a l S e r v i c e F u n d (1 1 ) 26 . 0 0 0 Li f e l i n e C o n n e c o n A s s i s t a n c e (1 2 ) 27 . 0 0 0 To t l Ote r (5 a ) 28 . 0 0 0 0 0 0 0 0 0 To t a l O o e r a t i n a E x p e n s e s (5 a ) 29 . 7,7 1 6 , 6 3 3 3, 4 3 6 , 3 6 1 66 3 , 3 3 2 4, 0 9 9 , 6 9 3 1,2 0 8 , 8 3 9 75 , 3 3 1 18 9 , 3 6 8 2, 2 0 3 , 4 1 2 3, 6 7 6 , 9 4 0 OP E R A T I N G T A X E S D E T A I L 72 4 0 G e n e r a l T a x e s 72 4 0 Pr o p e r t 1. 12 7 , 4 0 3 53 6 8 0 12 1 5 4 65 , 8 3 4 20 3 2 1 12 8 1 34 36 5 2 2 61 , 5 6 9 72 4 0 Gr o s s R e c e i p t s 2. 0 0 0 72 4 0 PU C F e e 3. 0 0 0 72 4 0 Fr a n c h i s e F e e s 4. 0 0 0 72 4 0 Ot h e r 5. 1, 4 5 3 14 6 3 1, 4 5 3 0 To t l G e n e r a l T a x e s 6. 12 8 , 8 5 6 55 , 1 3 3 12 , 1 6 4 67 , 2 8 7 20 , 3 2 1 1, 2 8 1 3, 4 4 36 , 5 2 2 61 , 6 6 9 72 X X In c o m e T a x e s ( C a l c u l a t ) Ne t I n c o m e B e f o r e S I T & F I T 11 3 \ 7. 1, 7 5 9 , 4 1 7 3,2 0 6 , 8 0 5 -1 6 8 , 9 4 5 3, 0 3 7 8 6 0 -4 2 5 6 5 0 -1 1 3 9 9 -1 9 2 , 8 0 3 -6 4 8 , 5 9 1 -1 , 2 7 8 , 4 4 3 Le s s F i x e d C h a r g e s ( - ) 8. 29 9 , 5 3 9 13 6 4 5 2 36 2 1 4 17 2 , 6 6 6 47 4 1 9 27 2 6 11 1 2 6 65 6 2 12 6 , 8 7 3 Su b t t a l ( l i n e s 7 - 8 ) (1 4 ) 9. 1, 4 5 9 , 8 7 8 3,0 7 0 , 3 5 3 -2 0 5 , 1 5 9 2, 8 6 5 , 1 9 4 -4 7 3 , 0 6 9 -1 4 , 1 2 5 -2 0 3 , 9 2 9 -7 1 4 , 1 9 3 -1 , 4 0 5 , 3 1 6 Ot h e r S I T B a s e A d d / O e d . ( + - ) (1 5 ) 10 . 0 0 0 SI T T a x a b l e I n c . ( l i n e s 9 + - 1 0 ) 11 . 1, 4 5 9 , 8 7 8 3, 0 7 0 , 3 5 3 -2 0 5 , 1 5 9 2, 8 6 5 , 1 9 4 -4 7 3 , 0 6 9 -1 4 , 1 2 5 -7 1 4 , 1 9 3 -1 , 4 0 5 , 3 1 6 72 3 0 S I T - C u r r n t ( a t 1 . 3 0 % ) 11 6 \ 12 . 23 , 0 1 9 12 , 1 1 7 31 7 0 15 , 2 8 7 2, 8 5 7 16 4 66 6 4, 0 4 5 7, 7 3 2 Ot h e r F I T B a s e A d d / O e d . ( + - ) (1 7 ) 13 . 0 0 0 FI T T a x a b l e I n c . ( l i n e s 9 - 1 2 + - 1 3 ) 14 . 1, 4 3 6 , 8 5 9 3, 0 5 8 , 2 3 6 -2 0 8 , 3 2 9 2, 8 4 9 , 9 0 7 -4 7 6 , 9 2 6 -1 4 , 2 8 9 -7 1 8 , 2 3 8 -1 , 2 0 8 , 4 5 3 Gr o s s F I T a t 2 6 . 8 2 % 15 . 46 8 7 0 6 24 6 7 2 8 64 , 5 5 1 31 1 , 2 7 9 58 . 1 7 4 3, 3 3 1 13 5 5 3 82 3 6 9 15 7 , 4 2 7 72 1 0 P C l a i m e d I T C ( - ) 16 . 0 0 0 Su r t E l i m i n a t i o n ( - ) 17 . 0 0 0 72 2 0 F I T - C u r r n t ( l i n e s 1 5 - 1 6 - 1 7 ) (1 8 ) 18 . 46 8 , 7 0 6 24 , 7 2 8 64 , 5 5 1 31 1 , 2 7 9 68 , 1 7 4 3, 3 3 1 13 , 6 6 3 82 , 3 6 9 16 7 , 4 2 7 20 0 6 F O R M I IN P U T M A S T E R ' Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 2 0 0 6 CO M P A N Y N A M E : A l b i o n T e l e p h o n e C o m p a n y , I n c . Se p e r a R e s u l t s o f I d a h o O p e r a t i o n s To t l Id a h o In t r a s t a t e Op e r a i o n Op e r a t i o n s De s c r i p t i o n No t Li n e Su b j e c t To In t r s t a In t r a s t a t e No . No . Se p a r a i o n s To l l To l l EA S Lo c a l ( O t e r ) Se p a r a t i o n P a r a m e t e r s (1 9 ) Pl a n t SL U M i n u t e s o f U s e ( M O U ) 1. 90 , 1 8 4 , 7 1 2 26 3 7 5 7 0 66 9 2 0 1 0 20 3 8 7 2 6 8 37 8 6 7 8 6 4 SL U F a c t o r 2. 1. 0 0 0 0 0 0 0.2 8 1 0 6 0.0 7 3 1 0. 2 6 0 6 0. 4 1 9 7 8 Ba s e S P F - J a n u a r y 1 3. 1. 0 0 0 0 0 0 0. 2 5 0. 2 6 0.6 Ba s e S P F - D e c e m b e r 3 1 4. 1. 0 0 0 0 0 0 0. 2 6 0. 2 6 0.6 Cu r r n t C o m p o s i t e S P F (2 0 ) 5. 1. 0 0 0 0 0 0 0. 2 6 0. 2 6 0.6 19 9 6 W e i g h t e d O E M 6. 1. 0 0 0 0 0 0 0. 8 6 0. 1 5 19 9 6 U n _ i g h t e O E M 7. 1. 0 0 0 0 0 0 0. 3 1 3 0 9 0. 1 0 4 1 9 0. 1 3 0 7 4 0. 4 6 1 9 8 Cu r r n t C A T 3 D i a l E q u i p m e n t M i n u t e s (2 1 ) 8. 90 , 1 8 4 , 7 1 3 26 3 7 6 4 66 9 1 9 3 3 20 3 8 7 2 6 8 37 8 5 7 8 6 4 Cu r r n t C o m p o s i t e O E M F a c t r 9. 1. 0 0 0 0 0 0 0. 8 6 0. 1 6 Ex c h a n g e T r u n k - J o i n t U s e M O U (2 2 ) 10 . 0 Ho s t / R e m o t e M O U K i l o m e t e r s (2 3 ) 11 . 90 , 1 8 4 , 7 1 3 26 3 4 7 6 4 8 66 9 1 9 3 3 20 3 8 7 2 6 8 37 8 5 8 6 4 Eq u a l A c c s s M O U (2 4 ) 12 . 0 Op e r a t o r S t a n d a r d W o r k S e c n d s (2 5 ) 13 . 0 Ta n d e m S w i h i n a M O U 12 6 \ 14 . 0 Pa g e 4 o f 5 IX C o n v e r s a t i o n M O U 15 . 31 , 9 3 9 , 5 8 0 26 3 0 6 3 1 3 66 3 3 2 6 7 IX C o n v e r s a t i o n M i n u t e K i l o m e t e r s 16 . 19 0 , 1 9 1 , 6 3 8 15 9 6 9 2 30 5 4 5 9 4 6 ot h e r P a r a m e t r s Ac c s s L i n e s 17 . 46 8 4 Un s e p a r a t e d L o o p C o s t ( e 1 1 . 1 R O R (2 7 ) 18 . 14 1 0 5 8 6 Gr o s s B i l e d R e v e n u e s -M a r k e t n g A l l o c t i o n B a s i s (2 8 a ) 19 . 16 , 6 7 2 96 5 5 16 5 4 63 6 3 -P a y m e n t & C o l l e c t i o n - E n d U s e r (2 8 b ) 20 . 3, 0 4 2 , 1 6 3 97 0 6 9 6 60 8 7 3 9 14 6 2 7 1 8 -P a y m e n t & C o l l e c t i o n - C X R (2 8 c ) 21 . 2, 6 6 6 13 3 3 13 3 3 Se r v i c e O r d e r C o n t a c t -S e r v i c e O r d e r P r o . - E n d U s e r (2 9 a ) 22 . 3, 5 5 8 15 8 6 18 6 17 8 6 -S e r v i c e O r d e r P r o . - C X R (2 9 b ) 23 . 43 3 21 6 21 7 Bi l l i n g I n q u i r y C o n t c t -B i l i n g I n q u i r y - E n d U s e r (3 0 a ) 24 . 3, 0 4 2 , 1 5 3 97 0 6 9 6 60 8 7 3 9 14 6 2 7 1 8 -B i l l n g I n q u i r y - C X R (3 0 b ) 25 . 1, 1 8 0 59 0 69 0 SP + R C T o l l M e s s g e s (3 1 ) 26 . 1, 1 1 3 , 7 9 8 47 7 6 6 3 63 6 1 3 6 EA S / L o c l M e s s a g e s ( M s g . P r o c . ) 27 . 0 'B I G 3 ' E x p e n s e F a c t o r - M e s s a g e (3 2 ) 28 . 0. 9 1 0. 4 2 3 6 2 1 0. 1 5 4 0. 0 2 3 6 2 0. 2 9 6 9 7 5 -P L S & S p e c i a l A c c s s 29 . 0. 0 9 0. 0 8 3 4 7 0. 0 0 8 6 9 1 Op e r a r S e r v i c e s E x p e n s e Fa c t o r 30 . 0 Ac c s s M i n u t e s o f U s e ( E n d O f f c e ) 31 . 20 , 3 0 8 . 8 7 2 17 1 3 2 0 6 6 31 7 6 8 0 7 Pa g e 5 o f 5 41 1 3 1 2 0 0 9 Alb i o n T e l e p h o n e C o m p a n y Sw d y A r e a : 4 7 2 2 1 3 RE V N U E R E Q U I R E M E N T S U M M A R Y S- 1 St u d y Y e a r : 2 0 0 1 MS G PL PL LIN E DE S C R I P T I O N SO U R C E b (e ) (i ) 1 N e t T e l e c o m P l a n t Ln 4 6 15 , 7 8 8 , 3 9 8 7, 1 9 7 , 0 1 7 1,8 8 7 , 5 2 0 2,4 8 3 , 7 3 3 14 2 , 3 3 9 57 9 , 5 8 9 3,4 9 8 , 2 0 1 2 R a t e B a s e A d j u s t m e n t # 1 Re c o r d s 3 R A T E BA S E Ln l - 2 15 , 7 8 8 , 3 9 8 7,1 9 7 , 0 1 7 1,8 8 7 , 6 2 0 2,4 8 3 , 7 3 3 14 2 , 3 3 9 57 9 , 5 8 9 3,4 9 8 , 2 0 1 4 R a t e o f R e r u m Re c o r d s 9.9 9 7 4 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 8.3 0 0 0 % 8.3 0 0 0 % 8. 3 0 0 0 % 8.3 0 0 0 % 8.3 0 0 0 % 8.3 0 0 0 % 8.3 0 0 0 % 5 R E T U R N O N R A T E B A S E Ln 3 " 4 1,5 7 8 , 4 3 1 80 9 , 6 6 4 21 2 , 3 4 6 20 6 , 1 5 0 11 , 8 1 4 48 , 1 0 5 29 0 , 3 5 1 6 R e t u r n A d j u s t m e n t # 1 Re c o r d s 7 N E T RE T U R N ln 5 - 6 1,5 7 8 , 4 3 1 I 80 9 , 6 6 4 21 2 ' 3 4 6 1 :1 :1 20 6 , 1 5 0 11 ' 8 1 4 1 48 ' 1 0 6 1 :1 29 0 , 3 5 1 8 F i x e d C h a r g e s lo 2 4 29 9 , 5 3 9 13 6 , 4 5 2 36 , 2 1 4 47 , 4 1 9 2,7 2 6 11 , 1 2 6 65 , 6 0 2 9 A m o r t z a t i o n o f Ex c e s s D e f T a x e s lo 4 7 10 C a p i t l i z e d P a y r o l l T a x e s lo 5 0 11 D e p r e c i a t o n A d j u s t m e n t lo 5 3 12 F I T A l l o w n c e s / D i s a l l o w a n c e s lo 2 2 13 In c A d j A l l o e o n 2 0 0 1 Ln 5 9 + 6 D 14 In c A d j A 1 l o e o n B i g 3 E x p Ln 6 1 + 6 2 15 T o t a l M i s e I n e A d j u s t m e n t lo 6 3 16 A F T E R T A X I N C O M E No t e 1 1,2 7 8 , 8 9 2 67 3 , 2 1 2 17 6 , 1 3 2 15 8 . 7 3 1 9,0 8 8 36 , 9 8 0 22 4 , 7 4 9 17 s t t e I n c o m e T a x Ln 5 2 o r 8 - 1 4 , L n 2 0 23 , 0 1 8 12 , 1 1 7 3.1 7 0 2,8 5 7 16 4 66 6 4, 0 4 5 18 S t a t e i r e A m o r t z a t i o n Ln 5 19 N e t F e d e r a l In c o m e T a x lo 4 3 45 8 , 7 0 5 24 6 , 7 2 8 64 , 5 5 1 58 , 1 7 4 3,3 3 1 13 , 5 5 3 82 , 3 6 9 20 F e d e r a l l T C A m o r t o n ln 4 4 21 O p e r a n g E x p e n s e s & T a x e s lo 1 7 7, 9 2 4 , 1 5 1 3,4 9 9 , 6 7 5 67 7 , 0 1 3 1,2 3 2 , 1 5 5 76 , 7 7 2 19 3 , 2 3 4 2,2 4 5 . 3 0 2 22 N o n o p e r a t i n g E x p e n s e s 8- 1 0 , l o 1 7 + 1 8 23 U n c o l l e c t b l e s Ln S 7 (2 5 , 0 8 3 ) (2 6 5 , 0 8 3 ) 24 o t e r A d j u s t m e n t s ( N e t R R ) Re c o r d s 25 N E T R E V E N U E R E Q U I R E M E N T ln 7 + 1 7 . . 2 3 - 2 4 9, 7 2 9 , 2 2 3 4,5 6 8 , 1 8 4 95 7 , 0 8 1 1,4 9 9 , 3 3 5 92 , 0 8 0 25 5 , 5 5 8 2,3 5 6 , 9 8 4 26 G r o s s R e c e i p t T a x No t e 2 27 7 3 4 0 A l w F d s U s e d O u r C o n s t l Ln 1 5 13 , 8 2 6 5. 8 2 5 1,3 1 9 2,2 0 5 13 9 37 4 3,9 6 3 28 R E V N U E R E Q U I R E M E N T Ln 2 5 + 2 1 ) 2 7 9, 7 1 5 , 3 9 7 4,5 6 2 , 3 5 9 95 5 , 7 6 2 1,4 9 7 , 1 3 0 91 , 9 4 1 25 5 , 1 8 4 2,3 5 3 , 0 2 0 29 D i s t r i b u t i o n o f U n e 3 ( Ln 2 8 1 2 8 a 10 0 . 0 0 0 0 % 46 . 9 6 0 1 % 9.8 3 7 6 % 15 . 4 0 9 9 % 0.9 4 6 3 % 2. 6 2 6 6 % 24 . 2 1 9 5 % I IN C O M E T A X E S I 30 N e t R e t u r n lo 7 I 1,5 7 8 , 4 3 1 I 80 9 , 6 6 4 21 2 ' 3 4 6 1 :1 :1 20 6 . 1 5 0 11 ' 8 1 4 1 48 ' 1 0 6 1 :1 29 0 . 3 5 1 31 F i x e d C h a r g e s lo 8 29 9 , 5 3 9 13 6 , 4 5 2 36 , 2 1 4 47 , 4 1 9 2,7 2 6 11 , 1 2 6 65 , 6 0 2 32 A m o r t z a t i o n o f E x c e s s D e f e r r e d T a x e s Ln 9 33 C a p i t a l i z e d P a y r o l l T a x e s Ln 1 0 34 D e p r e c i a t i o n A d j u s t m e n t Ln 1 1 35 F I T A l l o w a n c e s / D i s a l l o w a n c e s Ln 1 2 36 In c A d j A I o c o n 2 0 0 1 Ln 1 3 37 In c A d j A I o c o n B i g 3 E x p Ln 1 4 38 F e d e r a l l T C A m o r t z a t i o n Ln 4 39 To t a l In c o m e A d j u s t m e n t s lo 3 1 + 3 5 . . 3 7 29 9 , 5 3 9 13 6 , 4 5 2 36 , 2 1 4 47 , 4 1 9 2,7 2 6 11 , 1 2 6 65 , 6 0 2 40 F e d e r a l T a x a b l e I n c o m e Ln 3 D - 3 9 G r o s s U p 1,7 4 7 , 5 9 8 91 9 , 9 4 0 24 0 , 6 8 4 21 6 , 9 0 4 12 , 4 1 9 50 , 5 3 3 30 7 , 1 1 8 41 F e d e r a l In c o m e T a x 26 . 8 2 0 0 % 46 8 , 7 0 6 24 6 , 7 2 8 64 , 5 5 1 58 , 1 7 4 3,3 3 1 13 , 5 5 3 82 , 3 6 9 42 F e d e r a l S u r - T a x A l l o c a t i o n Re c o r d s 43 N e t F e d e r a l In c o m e T a x Ln 4 1 - 4 2 - 3 8 46 8 , 7 0 6 24 6 , 7 2 8 64 , 5 5 1 58 , 1 7 4 3,3 3 1 13 , 5 5 3 82 , 3 6 9 44 N e t R e t u r n Ln 3 D 1, 5 7 8 , 3 1 80 9 , 6 6 4 21 2 , 3 4 6 20 6 , 1 5 0 11 , 8 1 4 48 , 1 0 6 29 0 , 3 5 1 45 F i x e d C h a r g e s Ln 3 1 29 9 , 5 3 9 13 6 , 4 5 2 36 , 2 1 4 47 , 4 1 9 2,7 2 6 11 , 1 2 6 65 , 6 0 2 46 O t h e r S I T A d j u s t m e n t s Re c o r d s 47 F e d e r a l In c o m e T a x Ln 1 46 8 , 7 0 6 24 6 , 7 2 8 64 , 5 5 1 58 , 1 7 4 3,3 3 1 13 , 5 5 3 82 , 3 6 9 48 S t a t e T a x a b l e I n c o m e ln 4 - 4 7 G r o s s U p 1, 7 7 0 , 6 1 6 93 2 , 0 5 7 24 3 , 8 5 4 21 9 , 7 6 1 12 , 5 8 2 51 , 1 9 8 31 1 , 1 6 3 49 S t a t e I n c o m e T a x 1.3 0 0 0 % 23 , 0 1 8 12 , 1 1 7 3, 1 7 0 2.8 5 7 16 4 66 6 4.0 4 5 50 S t a S u r - T a x A l l o c a t i o n Re c o r d s 51 S t a t e I T e A m o r t z a t i o n lo 4 5 52 N e t S t a t e I n c o m e T a x lo 4 9 - 6 0 - 6 1 I 23 , 0 1 8 1 12 , 1 1 7 3. 1 7 0 1 -I -I 2,8 5 7 16 4 1 66 6 1 -I 4.0 4 5 Pr o p r i e t a r y I n f o r m a t o n Mo s s A d a m s , L L P 10 1 2 3 41 1 3 1 2 0 0 9 Alb i o n T e l e p h o n e C o m p a n y Stu d y A r a : 4 7 2 2 1 3 SE P A R A T E D T E L E C O M M U N I C A T I O N S P L A N T S U M M A R Y S- 2 St u d y Y e a r : 2 0 0 7 IN T R A S T A T E T O L L TO T A L CO M P A N Y PL MS G PL MS G PL LIN E DE S C R I P T I O N SO U R C E (a ) (e ) (d ) a m ij 1 2 1 1 0 l a n d & S u p p o r t A s s e t ,L n 1 3 2,8 2 8 , 5 9 0 1,1 9 1 , 7 9 4 26 9 , 8 5 3 45 1 , 1 8 2 28 , 4 3 5 76 , 4 9 4 81 0 , 8 5 1 2 2 2 1 0 C O E - 6 w i l c h i n g ,L n 3 6 5,7 1 6 , 8 0 5 4, 8 5 9 , 2 8 4 85 7 , 5 2 1 3 2 2 2 0 C O E . . p e r a t r ,lo 2 3 4 2 2 3 0 C O E . T r a n s m i s s i o n ,L n 7 6 8,0 9 5 , 7 0 9 2, 2 3 3 , 2 9 6 1, 6 0 4 , 8 3 9 1,3 7 0 , 6 0 0 10 7 , 1 2 1 43 3 , 0 0 7 2,3 4 6 , 8 4 7 52 3 1 0 I n f o O r i g f T e r m E q u i p ,L n 1 l 62 4 1 0 C & W F .L n 4 2 22 , 4 0 6 . 3 6 0 8. 1 6 7 , 8 3 5 1, 8 5 0 , 5 1 0 4,4 0 6 , 3 3 4 25 6 , 9 7 1 54 6 , 7 2 7,1 7 8 , 2 3 7 7 To t a l C O E , l O T , C & W F lo 2 . . 6 36 , 2 1 8 , 8 7 4 15 , 2 6 0 , 4 1 6 3,4 5 5 , 3 4 8 5, 7 7 6 , 9 3 3 36 4 , 0 9 2 97 9 , 4 7 9 10 , 3 8 2 , 6 0 5 8 Dis t r i b u t i o n o f L i n e 7 lo 7 / 7 . 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9. 5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 8 6 3 % 9 E q u a l A c c e s s . In v e s t m e n t ,L n 2 2 10 2 6 8 0 T a n g i b l e A s s e t s ,L n 3 1 11 T E L E C O M P L T I N S V C - E X C L 2 6 9 0 Ln 1 + 7 + 9 + 1 0 39 , 0 4 7 . 4 6 3 16 , 4 5 2 , 2 1 0 3,7 2 5 . 2 0 1 6, 2 2 8 . 0 9 5 39 2 , 5 2 7 1,0 5 5 , 9 7 4 11 , 1 9 3 , 4 5 6 12 D i s t r i b u t i o n o f U n e 1 1 lo l l 1 1 1 . 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9. 5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 13 2 6 9 0 I n t a n g i b l e A s s e t s ,L n 3 5 14 2 0 0 1 T E L E C O M P L A N T I N S V C Ln 1 1 + 1 3 39 , 0 4 7 . 4 6 3 16 , 4 5 2 , 2 1 0 3,7 2 5 , 2 0 1 6,2 2 8 . 0 9 5 39 2 , 5 2 7 1.0 5 5 , 9 7 4 11 , 1 9 3 , 4 5 6 15 Dis t r i b u t i o n o f L i n e 1 4 lo 1 4 / 1 4 . 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9. 5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 16 2 1 1 0 L a n d Ass e t s ,L n 1 2 17 2 0 0 1 T P I S x / L a n d lo 1 4 - 1 6 39 , 0 4 7 , 4 6 3 16 , 4 5 2 , 2 1 0 3,7 2 5 , 2 0 1 6,2 2 8 . 0 9 5 39 2 , 5 2 7 1.0 5 5 , 9 7 4 11 , 1 9 3 , 4 5 6 18 Dis i b u t i o n o f L i n e 1 7 lo 1 7 / 1 7 . 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9. 5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 19 2 0 0 2 P r o p H i d F u t T e l e c o m U s e ,L n 6 20 2 0 0 3 P l a n t U n d e r C o n s t r c t i o n ,l o l 0 20 5 , 5 5 1 86 , 6 0 7 19 , 6 1 0 32 , 7 8 6 2.0 6 6 5,5 5 9 58 , 9 2 4 21 2 0 0 5 T e l e c o m P l a n t A d j u s t m e n t ,L n 1 4 22 T O T A L T E L E C O M P l T LO I 4 + 1 9 . . 2 1 39 , 2 5 3 , 0 1 4 16 . 5 3 8 , 8 1 7 3,7 4 4 , 8 1 1 6.2 6 0 , 8 8 0 39 4 , 5 9 3 1,0 6 1 , 5 3 2 11 , 2 5 2 . 3 8 0 23 1 2 2 0 M a t e r i a l s a n d S u p p l i e s ,L n 2 0 23 9 , 6 9 8 87 , 3 7 8 19 , 7 9 6 47 , 1 3 8 2,7 4 9 5.8 4 6 76 , 7 9 1 24 1 5 0 0 O t e r J u ñ s A s s e t s - N e t ,L n 1 4 25 3 1 0 0 A c c u m u l a t e d D e p r e c i a t i o n ,L n 2 8 23 . 4 1 2 , 5 3 4 9, 3 2 0 , 9 7 4 1, 8 3 5 , 4 1 7 3, 7 6 1 , 7 1 2 25 0 , 4 4 7 47 5 , 9 9 5 7,7 6 7 , 9 8 7 26 E q u a l A c c e s s ø A c c u m D e p r e c i a t o n ,L n 2 4 27 3 2 0 0 A c e D a p - H l d l o r F u t L h . ,L n 3 0 28 3 4 0 0 A c c u m A m o r t - T a n g i b l e ,L n 3 1 . . 3 2 29 3 5 0 0 A c c u m A m o r t ø l n t a n g i b l e ,L n 3 3 30 3 6 0 0 A c c u m A m o r t - o t h e r ,L n 3 4 31 4 1 0 0 N e t C u r D e f O p I n c T a x e s ,L n 4 6 I 58 3 , 4 1 3 1 32 4 3 4 0 N o n c u r D e f O p e r I n c T a x .lo 6 6 24 5 , 8 1 4 55 , 6 5 9 1 -I -I 93 , 0 5 5 5,8 6 5 1 15 , 7 7 7 16 7 , 2 4 3 33 E q u a l A c c e s s . D e f e r r e d O p e r I n c T a x e s ,lo 2 5 34 4 3 6 0 O t h e r D e f e r r e d C r e d i t s N e t ,l o 6 7 35 4 3 7 0 O t e r J u r U a b & D e f C r e d i t e t ,L n 6 9 36 N E T T E L E C O M P L A N T A Ln 2 2 + 2 3 - 2 4 . . 3 5 I 15 , 4 9 6 , 7 6 6 1 7,0 5 9 , 4 0 6 1. 8 7 3 , 5 3 2 1 :1 :1 2. 4 5 3 , 2 5 1 14 1 . 0 3 0 1 57 5 , 6 0 6 3,3 9 3 , 9 4 1 37 D i s t r b u t i o n o f U n e 3 6 Ln 3 6 1 3 6 a 10 0 . 0 0 0 0 % 45 . 5 5 4 1 % 12 . 0 8 9 8 % 15 . 8 3 0 7 % 0. 9 1 0 1 % 3.7 1 4 4 % 21 . 9 0 1 0 % 38 1 4 0 2 R u r a l T e l B a n k S t o c k B ,L n 1 6 39 C a s h W o r k i n g C a p i t a l C ,L n 2 1 I 49 3 , 4 8 4 1 22 3 , 0 8 5 30 , 9 1 2 1 -I -I 63 , 7 2 0 3, 0 7 2 1 8,7 5 4 16 3 , 9 4 0 40 E q u a l A c c e s s . U n a m o r t z e d E x p e n s e s 0 .L n 2 6 41 I n v e s t m e n t A i l o w l O i s a l l o w E ,lo 3 1 42 A c c u m O e p r / A m o r t A 1 l o w l O i s a D o w F ,l o 7 2 I 43 4 0 4 0 C u s t o m e r D e p o s i t s G ,l o 3 7 6, 7 7 I 2,8 5 3 64 6 1 ~ I ~ I 1.8 0 68 1 18 3 1,9 4 1 44 4 3 1 0 O t e r L o n g . T e r m L i a b . H ,l o 5 7 19 5 , 0 8 1 82 , 6 2 1 16 , 2 7 9 32 , 1 5 8 1,6 9 5 4,5 8 8 57 , 7 3 9 45 O t h e r T e l e c o m P i A d j u s t I Re c o r d s 46 N E T T E L E C O M P L T & O T H R A T E B A S E I T E M S A+ B . . F + I - ( G + H ) 15 , 7 8 8 , 3 9 8 7,1 9 7 , 0 1 7 1,8 8 7 , 5 2 0 2,4 8 3 , 7 3 3 14 2 , 3 3 9 57 9 , 5 8 9 3,4 9 8 , 2 0 1 47 D i s t r b u t o n o f L i n e 4 6 Ln 4 6 / 4 6 a 10 0 . 0 0 0 0 % 45 . 5 8 4 2 % 11 . 9 5 5 1 % 15 . 7 3 1 4 % 0. 9 0 1 5 % 3.6 7 1 0 % 22 . 1 5 6 8 % Pro p r i e t r y I n f o r m a t i o n Mo s s A d a m s . L L P 20 1 2 3 4/1 3 1 0 0 9 Al b i o n T e l e p h o n e C o m p a n y St u d y A r a : 4 7 2 2 1 3 SE P A R A T E D E X P E N S E S U M M A R Y 5- 3 Stu d y Y e a r : 2 0 0 7 -- CD M P A N Y I MS G PL I MS G PL I MS G PL I MS G PL LI N E DE S C R I P T I O N SO U R C E I (a ) (b ) (e ) (d ) (e ) (n (9 ) (h ) (I) 1 P h S p e e E x p A e c 1 6 2 1 0 , 6 2 2 0 2 62 3 0 , 6 3 1 0 , 6 4 1 0 Ln 3 0 2,0 8 0 , 7 5 4 89 1 , 2 7 8 20 1 , 7 9 5 32 2 , 3 4 9 20 , 5 5 4 56 , 9 5 1 58 7 , 8 2 8 3 P I N o n s p e c A c c o u n t 6 5 3 0 Ln 1 9 50 9 , 0 2 0 21 4 , 4 7 0 48 , 5 6 1 81 , 1 8 9 5, 1 1 7 13 , 7 6 6 14 5 , 9 1 7 4 C u s t O p e r A c c t 6 6 1 0 . 6 6 2 0 lo 5 7 41 6 , 9 0 5 16 7 , 6 6 54 3 92 , 0 9 9 45 9 15 6 , 1 5 8 5 T O T A L B I G T H R E E E X P E N S E S Ln 2 . . 4 3,0 0 6 , 6 7 9 1,2 7 3 , 3 9 2 25 0 , 8 9 9 49 5 , 6 3 7 26 , 1 3 0 70 , 7 1 7 88 9 , 9 0 3 6 D i s t r b u t i o n o f l i n e 5 Lo S / 5 a 10 0 . 0 0 0 0 % 42 . 3 5 2 1 % 8.3 4 4 7 % 16 . 4 8 4 5 % 0. 8 6 9 1 % 2.3 5 2 0 % 29 . 5 9 7 5 % 7 P l a n t S p e c i f i c E x p e n s e s Ln 3 1 2,4 1 9 , 8 3 8 1,0 3 4 , 1 4 6 23 4 , 1 4 4 37 6 , 4 3 3 23 , 9 6 2 66 , 1 2 1 68 5 . 0 3 1 8 P l a n t N o n s p e c i f i c E x p e n s e s Ln 4 4 3.1 8 9 , 3 9 7 1, 4 6 7 , 4 8 28 6 , 2 9 9 45 9 . 1 0 7 36 , 0 6 6 83 , 1 1 5 65 7 , 3 4 2 9 C u s t o m e r O p e r a t i o n s E x p e n s e s lo 5 7 41 6 . 9 0 5 16 7 , 6 4 6 54 3 92 , 0 9 9 45 9 15 6 . 1 5 8 10 C o r p o r a t e O p e r a t i o n s E x p e n s e s Ln 1 6 1,7 5 0 , 4 9 1 76 7 , 1 1 9 14 2 , 3 4 7 28 1 , 1 9 7 14 , 8 2 5 40 , 1 2 1 50 4 , 8 8 2 11 7 3 0 0 C o n t r i b u t o n s Ln 1 6 18 , 4 3 7 8,0 8 0 1,4 9 9 2, 9 6 2 15 6 42 3 5,3 1 8 12 T O T A L O P E R A T I N G E X P E N S E S Lo 7 . . l l 7.7 9 5 , 0 6 8 3,4 4 4 , 4 3 8 66 4 , 8 3 1 1,2 1 1 , 7 9 6 15 , 4 8 9 18 9 , 1 8 0 2, 2 0 8 , 1 3 1 13 O p e r a t i n g T a x e s Ln 2 6 12 8 , 6 5 6 55 , 1 3 3 12 , 1 5 4 20 . 3 2 1 1, 2 8 1 3,4 4 5 36 , 5 2 2 14 E q u a l A c c e s s E x p e n s e s Ln 3 5 15 E x p e n s e A 1 l o w a n c e s l O i s a ß o w a n c e s lo 4 0 22 7 10 4 28 36 2 8 49 16 5 2 4 0 R e n t R e v e n u e s Ln 4 3 17 T O T A L O P E R A T I N G E X P & T A X E S lo 1 2 + 1 3 . . 1 5 - 1 6 1,9 2 4 , 1 5 1 3,4 9 9 , 6 1 5 67 1 , 0 1 3 1, 2 3 2 , 1 5 5 16 , 7 1 19 3 , 2 3 4 2, 2 4 5 , 3 0 2 18 D i s t r b u t i o n o f U n e 1 7 Ln 1 7 / 1 7 a 10 0 . 0 0 0 0 % 44 . 1 6 4 7 % 8. 5 4 3 7 % 15 . 5 4 9 4 % 0. 9 6 8 8 % 2.4 3 8 5 % 28 . 3 3 4 9 % 19 T o t a l De p r & Am o r t Ln 4 3 2,6 0 1 , 0 4 1 1.1 7 9 , 6 4 8 23 1 , 1 3 7 31 1 9 1 8 30 , 9 6 9 69 , 3 4 9 11 1 , 4 2 5 20 F i x e d C h a r g e s lo 2 4 29 9 , 5 3 9 13 6 , 4 5 2 36 , 2 1 4 41 , 4 1 9 2.1 2 6 11 , 1 2 6 65 , 6 0 2 21 T o t a l Op e r a n g R e v e n u e lo 3 3 9,9 2 9 , 9 6 9 5, 0 8 6 , 1 3 2 34 0 , 3 1 1 4. 5 0 3 , 4 6 8 22 T o t a l O p e r a t i n g E x p e n s e & T a x e s lo 1 7 1,9 2 4 , 1 5 1 3, 4 9 9 , 6 7 5 67 1 , 0 1 3 1, 2 3 2 , 1 5 5 16 , 7 1 2 19 3 , 2 3 4 2, 2 4 5 , 3 0 2 23 U n c o l l e c t b l e s lo 5 1 (2 6 5 , 0 8 3 ) (2 6 5 , 0 6 3 ) 24 F i x e d C h a r g e s lo 2 0 29 9 , 5 3 9 13 6 , 4 5 2 36 , 2 1 4 47 , 4 1 9 2,1 2 6 11 , 1 2 6 65 , 6 0 2 25 I n c o m e A d j u s t n e n t s lo 6 3 26 N e t I n c o m e lo 2 1 . 2 5 1,9 1 1 , 3 8 2 1,4 5 0 , 0 0 5 (1 1 3 , 2 2 1 ) (9 3 9 , 2 0 3 ) (1 9 , 4 9 8 ) (2 0 4 , 3 6 0 ) 2. 4 5 1 , 6 6 5 27 D i s t r i b u t i o n o f L i n e 2 6 lo 2 6 1 2 6 a 10 0 . 0 0 0 0 % 73 . 5 5 2 7 % (3 6 . 1 1 9 0 % ) (4 1 . 6 4 1 9 % ) (4 . 0 3 2 6 % ) (1 0 . 3 6 6 3 % ) 12 4 . 6 6 7 1 % 26 T O T A L C A S H O P E R E X P E N S E S lo l 1 + 1 6 - 1 9 + 2 0 5,6 1 6 , 6 4 3 2,4 5 6 , 7 9 41 5 , 4 9 0 90 1 , 6 5 6 48 , 5 2 6 13 5 , 0 1 0 1.5 9 9 , 4 1 9 29 D i s t r i b u t i o n o f L i n e 2 8 lo 2 8 1 2 8 a 10 0 . 0 0 0 0 % 43 . 7 3 5 7 % 8. 4 6 5 7 % 16 . 0 5 3 3 % 0.8 6 4 0 % 2.4 0 3 8 % 28 . 4 7 7 5 % I IN C O M E T A X C A L C U L A T I O N I 31 O t h e r O p e r a t i n g I n c o m e Ln 3 2 32 A F U D C Ln 1 5 I 13 ' 6 2 6 1 5,8 2 5 1,3 1 ~ 1 :1 :1 2, 2 0 5 13 ~ I 31 4 3,9 6 3 33 O p e r a t i n g R e v e n u e Ln 3 3 - L n 3 1 9,9 2 9 , 9 8 9 5,0 8 6 . 1 3 2 34 0 , 3 1 1 4, 5 0 3 , 4 6 6 34 U n c o l l e c t b l e R e v e n u e Ln 5 7 26 5 , 0 8 3 26 5 , 0 8 3 34 I n c o m e E f f c t J u r i s d i c t o n a l D i f f r e n c e Ln 6 0 34 I R S I n c o m e A d j u s t m e n t lo 6 2 35 T O T A L R E V E N U E & O T H E R I N C O M E lo 3 1 . . 3 4 10 , 2 0 6 , 8 9 8 5,0 9 1 , 9 5 1 1,3 1 9 34 2 , 5 7 6 13 9 31 4 4,1 1 2 , 5 3 2 36 C o n t r i b u t o n s lo 1 6 16 , 4 3 1 8.0 8 0 1,4 9 9 2.9 6 2 15 6 42 3 5,3 1 8 37 O p e r a n g E x p e n s e s lo 1 2 - l o l 1 1,1 1 6 , 6 3 1 3.4 3 6 , 3 5 9 66 3 , 3 3 2 1,2 0 8 , 8 3 1 15 , 3 3 3 16 9 , 3 5 1 2.2 0 3 , 4 1 3 38 O p e r a t n g T a x e s Ln 2 6 12 8 , 6 5 6 55 , 1 3 3 12 , 1 5 4 20 , 3 2 1 1, 2 8 1 3,4 4 5 36 , 5 2 2 39 F i x e d C h a r g e s Ln 2 4 29 9 , 5 3 9 13 6 , 4 5 2 36 , 2 1 4 41 , 4 1 9 2. 1 2 6 11 , 1 2 6 65 , 6 0 2 40 T O T A L O P E R A T I N G E X P E N S E S Ln 3 6 . . 3 9 6, 2 2 3 , 4 6 3 3,6 3 6 , 0 2 3 11 3 , 2 0 0 1,2 1 9 , 5 3 8 19 , 4 9 6 20 4 , 3 5 1 2,3 1 0 , 8 5 5 41 S t a t e T a x a b l e I n c o m e Ln 3 5 - L n 4 0 1,9 8 5 , 4 3 5 1,4 5 5 , 9 3 4 (1 1 1 , 6 8 1 ) (9 3 6 , 9 6 2 ) (1 9 , 3 5 1 ) (2 0 3 , 9 1 1 ) 2,4 6 1 , 6 1 8 42 S t a t e I n c o m e T a x 1.3 0 0 0 % 25 , 6 1 1 18 , 9 2 1 (9 , 2 5 4 ) (1 2 , 1 8 1 ) (1 , 0 3 2 ) (2 , 6 5 2 ) 32 , 0 0 2 43 F e d e r a l T a x a b l e I n c o m e lo 3 5 - L n 4 0 1,9 6 5 , 3 5 1.4 5 5 , 9 3 4 (1 1 1 , 8 8 1 ) (9 3 6 , 9 6 2 ) (7 9 , 3 5 1 ) (2 0 3 , 9 7 1 ) 2,4 6 1 . 6 1 8 44 S t t e I n c o m e T a x lo 4 2 25 , 8 1 1 18 , 9 2 1 (9 , 2 5 4 ) (1 2 , 1 8 1 ) (1 , 0 3 2 ) (2 , 6 5 2 ) 32 . 0 0 2 45 N e t F e d e r a l T a x a b l e I n c o m e lo 4 3 - l o 4 4 1,9 5 9 , 6 2 4 1, 4 3 1 , 0 0 1 (7 0 2 , 6 2 6 ) (9 2 4 , 7 6 2 ) (7 8 , 3 2 5 ) (2 0 1 , 3 2 6 ) 2,4 2 9 , 6 1 6 46 F e d e r a l In c o m e T a x 26 . 8 2 0 0 % 52 5 , 5 1 1 38 5 , 4 0 5 (1 8 6 , 4 4 ) (2 4 6 , 0 2 6 ) (2 1 , 0 0 1 ) (5 3 , 9 9 6 ) 65 1 , 6 3 9 47 A m o r t t i o n o f I n v e s t m e n t T a x C r e d i t Ln 4 4 48 F e d e r a l In c o m e T a x Ln 4 6 - L n 4 1 52 5 , 5 1 1 38 5 , 4 0 5 (1 8 8 . 4 4 1 (2 4 6 , 0 2 6 ) (2 1 , 0 0 1 ) (5 3 , 9 9 6 ) 65 1 , 6 3 9 Pro p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 30 1 2 3 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 li N E D E S C R I P T I O N SE P A R A T i O N S F A C T O R S 1 C a r r i e r C l a s s i f i c a t i o n 2 B i g T h r e e E x p e n s e s D i s t r 3 T o t a l C O E , l O T , C & W F D i s t r LA N D & S U P P O R T A S S E T S S E P A R A T I O N 4 2 1 1 0 L a n d & S u p p o r t A s s e t s Su p p o r t A s s e t s - J o i n t x / G S F . B & C Ge n e r a l S u p p o r t F a c i r i t e s . B & C Di r e c t A s s i g n m e n t To t a l S u p p o r t A s s e t s Dis t r i b u t o n o f L i n e 8 10 L a n d 11 D i r e c t A s s i g n m e n t 12 T o t a l L a n d 13 T O T A L L A N D & S U P P O R T A S S E T S 14 D i s t r b u t i o n o f U n e 1 3 No t e 1: If C a r r e r C l a s s i f i c a t o n = A , t h e n If C a r r i e r C l a s s i f c a t o n = B , t h e n Pr o p r i e t a r y I n f o r m a t i o n GE N E R A L S U P P O R T F A C i l I T E S 4/ 1 3 1 2 0 0 9 8- Pl IN T R A S T A T E T O L L 16 . 4 8 4 5 % 15 . 9 5 0 1 % 45 1 , 1 6 2 45 1 , 1 6 2 15 . 9 5 0 1 % 45 1 , 1 6 2~ Mo s s A d a m s , L L P PL i m 0.8 8 9 1 % 2. 3 5 2 0 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 , 4 3 5 76 , 4 9 4 28 . 4 3 5 76 . 9 4 1.0 0 5 3 % 2.7 0 4 3 % 28 , 3 5 1.0 0 5 3 % (I ) 29 . 5 9 7 5 % 28 . 6 6 8 3 % 81 0 , 8 5 1 81 0 . 8 5 1 28 . 6 6 6 3 % 76 , 4 9 4 2.7 0 4 3 % 81 0 , 8 5 1 28 . 6 6 6 3 % CO M P A N Y SO U R C E la ' Re c o r d s B ln 8 10 0 . 0 0 0 0 % 42 . 3 5 2 1 % 8.3 4 4 7 % lo 8 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % No t e 1 2,8 2 8 , 5 9 0 1, 1 9 1 . 7 9 4 26 9 , 8 5 3 No t e 1 Di r e c t lo 5 . . 7 I 2, 8 2 8 , 5 9 0 I 1,1 9 1 . 7 9 4 26 9 , 8 5 3 lo 8 / 8 a 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % No t e 1 Di r e c t lo l 0 . . 1 1 Ln 8 + 1 2 L 2, 8 2 8 , 5 9 0 I 1, 1 9 1 . 7 9 4 26 9 , 8 5 3 lo l 3 1 l 3 a 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % lo 5 a " 2 , l o 6 a ' 2 , l o l 0 a ' 2 Ln 5 a * 3 , l n 6 a * 3 , L n 1 0 a * 3 40 1 2 3 Alb i o n T e l e p h o n e C o m p a n y St u d y A r e a : 4 7 2 2 1 3 St u d y V e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 W S W S P e t - $ w l t c h b o a r d s 2 W S W S P e t - D i r e c t o r y A s s i s t a n c e 3 S u b L i n e M O U P e t 4 S O B T o n M O U P e t 5 W S W S P e t - T S P S O p e r P o s i t i o n 6 R e a l P r o c e s s o r T i m e P c t - R T A 7 R e a l P r o c e s s o r T i m e P c t - T S P S 8 R E L M O U ' s - T a n d e m S W t c h i n g 9 T r a n s M e a s u r e d O E M P e t CO E C A T E G O R I E S 1 . 3 S E P A R A T I O N 10 2 2 2 0 O p e r a t o r S y s t e m s 11 C a t l - o p e r a t o r S y s t e m s 12 L o c , T o l l , D S A . D S B , a n d 13 T r a f f c S w i b o a r d s 14 A u - D i r e c t A s s i s t 15 A u - l n t e r c e p t 16 J t E x c h & T o n S O B 17 T S P S - O p e r P o s i t i o n 18 T S P S - R T A 19 T S P S - O t e r 20 D i r e c t A s s i g n m e n t 21 T o t a l C a t 1 22 D i s t r b u t o n o f L i n e 2 1 23 T O T A L C O E - o P E R A T O R 24 D i s t r b u t i o n o f U n e 2 3 25 2 2 1 0 C e n l r l O f f c e S w i h i n g 26 C a t 2 - T a n d e m S w i t c h i n g 27 D i r e c t A s s i g n m e n t 28 T o t a l C a t 2 29 D i s t r i b u t o n o f L i e 2 8 30 31 C a t 3 - L o c a l S w i t c h i n g - T S 32 C a t 3 - L o c a l S w i t c h i n g - N T S 33 D i r e c t A s s i g n m e n t 34 T o t a C a t 3 35 D i s t r i b u t i o n o f L i n e 3 4 36 T O T A L C O E . S \ i T C H I N G 37 D i s t r i b u t i o n o f L i n e 3 6 Pr o p r i e t a r y I n f o r m a t o n SO U R C E Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s lo 1 3 a - l lo 1 4 a - 2 Ln 1 5 a ' " 3 lo 1 6 a ' 4 lo 1 7 a ' 5 lo 1 8 a ' 8 lo 1 9 a ' 7 Dir e c t lo 1 3 . . 2 0 lo 2 1 1 2 1 a lo 2 1 Ln 2 3 1 2 3 a lo 2 6 . ' 8 Di r e c t lo 2 6 . 2 7 lo 2 8 1 2 8 a lo 3 1 . ' 9 lo 3 2 a - 9 Dir e c t lo 3 1 . . 3 3 lo 3 4 / 3 4 a Ln 2 8 + 3 4 Ln 3 6 1 3 6 a TO T A L CO M P A N Y (a ) 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 41 1 3 1 2 0 0 9 CE N T R A L O F F I C E E Q U I P M E N T 5, 7 1 6 , 8 0 5 4,8 5 9 , 2 8 4 :i 85 7 , 5 2 1 5, 7 1 6 , 8 0 5 4,8 5 9 , 2 8 4 . . 85 7 , 5 2 1 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % . . 15 . 0 0 0 0 % 5,7 1 6 , 8 0 5 4,8 5 9 , 2 8 4 . . 85 7 , 5 2 1 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % . . 15 . 0 0 0 0 % Mo s s A d a m s , l L P 50 1 2 3 Alb i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 SE P A R A T I o N S F A C T O R S JS W B - U n e 39 E x Trk W B 40 R E L M O U ' s - E x c h a n g e T r u n k 41 G r o s s A l l o c a t o r ( T r a n s S P F ) 42 C O E C a t 4 . 2 1 - F u m t o O U i e r s P c t 43 I n t e r e x c h a n g e T r k w e CO E C A T E G O R Y 4 S E P A R T I O N 44 2 2 3 0 C e n t r l O f f c e - T r a n s m i s s i o n 45 C a t 4 . 1 - E x c h a n g e C i r c u i t 46 4 . 1 1 W i d e b a n d - L i n e 41 D i r e c t A s s i g n m e n t 48 4 . 1 2 E x c h T r u n k - E A S 49 E x T r k x N V - B a s i c 50 E x T r k x N V - B a s i c D A 51 E x T r k W B 52 E x c h T r k w e - D i r e c t A s s i g n m e n t 53 4 . 1 3 E x L i n e x I W 54 J o i n t M S G 55 P L & L o c a l 56 D i r e c t A s s i g n m e n t - B a s i c l S p e c i a l 51 C a t 4 . 2 - l n t e r e x c h a n g e 58 4 . 2 1 F u m t o O Q i e r s 59 4 . 2 2 W i d e b a n d 60 J o i n t M S G 61 P L 62 D i r e c t A s s i g n m e n t LI N E D E S C R I P T I O N AS S I G N M E N T O F C O E C A T 4 . 1 3 63 C O E C a t 4 . 1 3 W o r k i n g L o o p s 64 C O E C a t 4 . 1 3 A s s i g n e d I n v e s t No t e 1: Co s t p e r l o o p . Pr o p r i e t a r y I n f o r m a t i o n Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 6 a " 3 8 Dir e c t Dir e c t Ln 4 9 a " 4 0 Di r e c t Ln 5 1 a " 3 9 Di r e c t Ln 6 4 b ' 4 1 Ln 6 4 c . . i Di r e c t Ln 5 8 a " 4 2 Ln 6 0 a ' 4 3 Di r e c t Di r e c t Re c o r d s No t e 1 4/ 1 3 / 2 0 0 9 CE N T R A L O F F I C E E Q U I P M E N T SO U R C E rrl f A A ì l T A T E T O L L 10 0 . 0 0 0 0 % 50 . 0 0 0 0 % 1,5 1 8 , 8 1 2 43 3 , 0 0 7 43 3 , 0 0 7 4,2 5 6 , 6 0 4 52 , 4 6 5 2,1 2 8 , 3 0 2 4, 6 4 0 . 5 4,3 0 9 , 0 6 9 43 . 0 39 . 9 2 9 13 . 5 12 . 5 3 6 4,5 8 4 . 0 4,2 5 6 , 6 0 4 92 8 . 5 7 8 5 Mo s s A d a m s , L L P 60 1 2 3 4/1 3 1 2 0 0 9 Alb i o n T e l e p h o n e C o m p a n y St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 7 SE P A R A T I O N S F A C T O R S 65 C o n v e i i i f o n M i n u t e s P e t Re c o r d s 66 H o s t / R e m o t e M O U M i l e s P c l Re c o r d s CO E C A T E G O R Y 4 S E P A R A T I O N ( C o n t ) I 67 4.2 3 A l l O t e r 68 Jo i n t M S G Ln 8 2 ' 8 4 I 77 8 , 8 2 1 61 6 , 7 9 1 16 1 , 6 7 1 89 PL , 1 W & L o o a l Ln 8 2 0 . . 1 59 , 4 8 8 15 , 3 1 7 70 Di r e c t A s s i g n m e n t - N o n a c c e s s Dir e c t 71 Ca t 4 . 3 - H o s t l R e m o t e M S G n Jo . n t ( x I W A T S ) Ln 7 2 a * 6 6 I 91 5 , 6 7 7 1 55 2 , 3 5 5 14 4 , 7 7 8 21 8 , 5 4 5 73 WA T S Dir e c t 74 Di r e c t A s s i g n m e n t Oir e c t 75 To t a l C a t 4 Ln 4 6 . . 6 2 + 6 7 . . 1 4 8,0 9 5 , 7 0 9 2,2 3 3 , 2 9 6 1,6 0 4 , 8 3 9 1, 3 7 0 , 6 0 0 10 7 , 1 2 1 43 3 , 0 0 7 2, 3 4 6 , 8 4 7 76 T O T A L C O E . T R A S M I S S I O N ln 7 S 8.0 9 5 , 7 0 9 2,2 3 3 , 2 9 6 1,6 0 4 , 8 3 9 1, 3 7 0 , 6 0 0 10 7 , 1 2 1 43 3 , 0 0 7 2, 3 4 8 . 8 4 7 71 D i s t r i b u t i o n o f L i n e 7 6 Ln 7 6 1 7 6 a 10 0 . 0 0 0 0 % 27 . 5 8 6 2 % 19 . 8 2 3 3 % 16 . 9 3 0 0 % 1.3 2 3 2 % 5. 3 4 8 6 % 28 . 9 8 8 8 % 78 T O T A L C E N T R A L O F F I C E E Q U I P Ln 2 3 + 3 6 + 7 6 13 , 8 1 2 , 5 1 4 7, 0 9 2 , 5 8 0 1,6 0 4 , 8 3 9 1, 3 7 0 , 8 0 0 10 7 , 1 2 1 43 3 . 0 0 7 3,2 0 4 , 3 8 7 79 D i s t r i b u t o n o f L i n e 7 8 Ln 7 S / 7 8 a 10 0 . 0 0 0 0 % 51 . 3 4 8 9 % 11 . 6 1 8 7 % 9. 9 2 2 9 % 0.7 7 5 5 % 3. 1 3 4 9 % 23 . 1 9 9 0 % CE N T R A L O F F I C E E Q U I P M E N T LI N E D E S C R I P T I O N AS S I G N M E N T O F C O E C A T 4 . 2 3 80 C O E C a t 4 . 2 3 T e r m s - -J o i n t M e s s a g e T o t a l T e r m i n a t i o n s 81 C O E C a t 4 . 2 3 - T e r m s 82 - J o i n t M e s s a a e T o t a l A l l o c a t e d I n v e s t m e n t SO U R C E TO T A L CO M P A N Y (a ) 24 . 5 0 Re c o r d s 46 5 . 0 0 43 2 83 7 , 9 2 8 77 8 . 4 6 2 44 , 1 4 9 15 , 3 1 7 No t e 1 No t e 1 No t e 1: Co s t p e r t e r m i n a t i o n = 1,8 0 2 . 0 0 Pr o p r i e t a r y I n f o r m a t o n Mo s s A d a m s , L L P 70 1 2 3 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 G r o s s A l o c a t o r (T r a n s S P F ) 2 R E L M O U ' s - C o i n l e s s P u b T e l lO T E Q U I P M E N T S E P A R A T I O N 32 3 1 0 I n f o O r i g I e r m E q u i p 4 C a t 1 - O t e r l O T 5 C o i n l s P u b T e l E q 6 D i r e c t A s s i g n m e n t 7 T o t a l C a t e g o r y 1 8 D i s t r b u t i o n o f L i n e 7 SO U R C E Re c o r d s Re c o r d s Ln 4 a ' 1 Ln 5 a " 2 Dir e c t Ln 4 . . 6 Ln 7 / 7 a 9 C a t 2 - C u s t P r e m E q u i p 10 D i s t r i b u t i o n o f L i n e 9 Dir e c t ln 9 1 9 a 11 T O T A L I N F O O R I G I T E R M E Q U I P 12 D i s t r b u t i o n o f L i n e 1 1 ln 7 + 9 Ln 1 1 / 1 1 a Pr o p r i e t r y I n f o r m a t o n TO T A L CO M P A N Y la ) 4/ 1 3 1 2 0 0 9 IN F O R M A T I O N O R I G I N I E R M E Q U I P M E N T S- 10 0 . 0 0 0 0 % Mo s s A d a m s , L L P 80 1 2 3 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 1 SO U R C E SE P A R A T I O N S F A C T C f R S 1 G r o s s A l l o c a t o r P e t ( T r a n s S P F ) 2 R E L M O U ' s - E x c h a n g e T r u n k 3 W B L i n e 4 M O U P e t - E x T r k w e C& W F C A T 1 - 2 S E P A R A T I O N 5 2 4 1 0 C a b l e & W i r e F a c i l t i e s 6 C a t 1 - E x c h L i n e x l W 7 1 . 1 I n I r P l & W A T S 8 1 . 2 In l e r PL & WA T S 9 1 . 3 J o i n t l U s e d 10 D i r e c t A s s i g n m e n t 11 T o t a l C a t e g o r y 1 12 C a t 2 - \ & E x c h T r u n k 13 E x T r k - j o i n t m e s s a g e 14 E x T r k - E A S 15 E x Li n e W B 16 \ / L i n e 11 w e T r u n k 18 w e T r u n k D A 19 T o t a l C a t e g o r y 2 Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 2 2 e . . i Ln 2 2 c . . d ln 2 2 b ' 1 Di r e c t ln 7 . . 1 0 Ln 1 3 a * 2 Di r e c t Ln 1 5 a * 3 Di r e c t Ln l 1 a * 4 Di r c t LI N E D E S C R I P T I O N AS S I G N M E N T O F C & W F C A T 1 20 C & W F C a t 1 W o r k i n g L o o p s 21 D i s t r b u t i o n o f L i n e 2 1 22 C a t 1 - E x L i n e x l W No t e 1: Co s t p e r l o o p = Pr o p r i e t a i n f o r m a t i o n Re c o r d s Ln 2 0 1 2 0 a Ln 2 2 a ' 2 1 SO U R C E 3,0 1 8 . 0 3 3 4 Jo i n t MS G (b ) 4.5 8 4 98 . 7 8 2 5 % 13 , 8 3 4 , 6 6 5 4/ 1 3 1 0 0 9 CA B L E A N D W I R E F A C I L I T I E S IN T R A S T A T E T O l l 6,9 1 7 , 3 3 3 54 6 , 4 7 2 15 7 . 8 8 9 54 6 , 4 7 2 EA Oth e r Us e r De f i n e d (h ) (9 ) (i) 43 0. 9 2 6 6 % 12 9 . 7 7 5 14 0. 2 9 0 9 % 40 . 7 4 3 Mo s s A d a m s , L L P 90 1 2 3 Alb i o n T e l e p h o n e C o m p a n y St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 7 SE P A R A T I O N S F A C T O R S 23 I n t e r e x c h a n g e T r k w e 24 C M M P c t ~ X x l W B 25 C & W F T W C o n n e c t M i n M U e s P c t - I T 26 C & V V T W C o n n e c t M i n M i l e s P c t - R m t 27 H o s t I e m o t e M O U M i l e s P e t C& W F C A T 3 - 4 S E P A R A T I O N 28 C a t 3 - 1 n t e r e x c h a n g e C & W F 29 w e P L - D i r e c t A s s i g n m e n t 3D w e . J o i n t M e s s a g e 31 J o i n t M S G x I V B 32 P L . T W & L o c a l x l W B 33 J o i n t T W - I T 34 J o i n t T W - R m t 35 D i r e c t A s s i g n m e n t - N o n a c c e s s 36 T o t a l C a t e g o r y 3 37 C a t 4 . H o s t l R e m o t e C & W F 38 J o i n t ( x I W A T S ) 39 W A T S 4D D i r e c t A s s i g n m e n t 41 T o t a l C a t e g o r y 4 42 T O T A L C A B L E & V I R E F A C I L I T I E S 43 D i s b i b u t l o n o f L i n e 4 2 LI N E D E S C R I P T I O N AS S I G N M E N T O F C & W F C A T 3 44 E q u i v I X C i r c M i l e s - M S G 45 . P L , T W & L o o a l 46 D i s t r b u t i o n o f L i n e 4 4 47 D i s t r b u t o n o f L i n e 4 5 48 C a t 3 . A ß O t h e r x l M S G 49 . P L . 1 W & L o c a l No t e 1: Co s t p e r c i r c u i t m i l e = Pro p r i e t r y I n f o r m a t i o n CA B L E A N D V I R E F A C I L I T I E S 4/ 1 3 1 2 0 0 9 Re c o r d s Re c o r d s 10 0 . 0 0 0 0 % Re c o r d s 10 0 . 0 0 0 0 % Re c o r d s 10 0 . 0 0 0 0 % Re c o r d s 10 0 . 0 0 0 0 % Dir e c t 98 , 9 5 7 Ln 3 0 a * 2 3 Ln 4 8 b ' 2 4 4, 8 2 4 , 5 8 0 Ln 4 9 c . . i 15 1 , 2 4 0 Ln 4 9 r 2 5 Ln 4 9 k ' 2 8 Dir e c t Ln 2 8 . . 3 5 I 5,0 7 4 , 7 7 7 1 4,0 4 9 , 7 5 2 Ln 3 8 a ' 2 7 I 1,0 9 3 , 1 6 2 65 9 , 4 1 7 Dir e c t Dir e c t Ln 3 8 . . 4 0 65 9 , 4 1 7 Ln 1 1 + 1 9 + 3 6 + 4 1 8,1 6 7 . 8 3 5 Ln 4 2 1 4 2 a 36 . 4 5 3 2 % TO T A L Jo i n t M S G CO M P A N Y Ex c l T W SO U R C E a b Re c o r d s 12 , 4 4 0 12 , 0 8 1 . 7 5 Re c o r d s Ln 4 4 / 4 4 a 1D D . D D D D % 96 . 9 6 0 5 % Ln 4 5 / 4 4 a Ln 4 8 a ' 4 6 4. 9 7 5 , 8 2 0 4,8 2 4 , 5 8 0 Ln 4 8 a - 4 7 39 9 . 9 9 IN T E R S T A T E T O L L 19 1 , 8 5 7 77 4 , 8 2 8 58 , 3 3 9 17 2 . 8 4 0 17 2 , 8 4 0 1,8 5 0 , 5 1 0~IN T E R S T A T E T O L L In t e r I n b ' a LA T A L A T A 0) ( d 4,4 0 6 , 3 3 4 19 . 6 6 5 5 % 25 6 , 9 7 1 1.1 4 6 9 % 54 6 , 7 2 2. 4 3 8 9 % IN T R A S T A T E T O L L In t e r I n b ' a LA T A L A T A e OU l e r Jt M S G T W In l e r t U EA S Us e r De f i n e d h Re m o t e k' 31 4 . 0 9 64 . 0 3 2.5 2 4 8 % 0.5 1 4 7 % 12 5 . 6 3 t 25 , 6 0 9 Mo s s A d a m s , L L P 23 . 8 6 7 0 % 26 0 , 9 0 5 26 0 , 9 0 5 7, 1 7 8 , 2 3 7 32 . 0 3 6 6 % 10 0 1 2 3 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 L a n d & S u p p o r t A s s e t s D i s t r 2 2 2 1 0 C O E - 8 w i l c h D i s t r 3 2 2 2 0 C O E - O p e r a t o r S y s t e m s D i s t r 4 2 2 3 0 C O E - T r a n s m i s s i o n O i s t r 52 3 1 0 l O T D i s t r 6 2 4 1 0 C & W F D i s t r 72 0 0 1 T P I S 6 2 0 0 1 T P I S I n c l 2 6 6 0 TA N G I B L E A S S E T S - e A P I T A L L E A S E S S E P 9 2 6 8 0 T a n g i b l e A s s e t s . C a p i t l L e a s e s 10 2 1 1 0 L a n d & S u p t A s s e t s 11 2 2 1 0 C O E - 8 w i h i n g 12 2 2 2 0 C O E - o p e r a t r 13 2 2 3 0 C O E . T r a n s m i s s i o n 14 2 3 1 0 l O T 15 2 4 1 0 C & W F 16 N o t c l a s s i f i e d b y a c c o u n t 17 D i r e c t A s s i g n m e n t 16 T O T A L C A P I T A L L E A S E S 19 D i s t r b u t o n o f L i n e 1 8 TA N G I B L E A S S E T S - L E A S E H L D I M P R O V E S E P 20 2 6 8 0 T a n g i b l e A s s e t s - L e a s e h l d I m p r o v e 21 2 1 1 0 L a n d & S u p t A s s e t s 22 2 2 1 0 C O E - s h i n g 23 2 2 0 C O E - o p e r a t o r 24 2 2 3 0 C O E . T r a n s m i s s i o n 25 2 3 1 0 l O T 26 2 4 1 0 C & W F 27 N o t c l a s s i f i e d b y a c c o u n t 28 D i r e c t A s s i g n m e n t 29 T O T A L L E A S E H O L D I M P R O V E M E N T S 30 D i s t r b u t i o n o f U n e 2 9 SS E T S S E P Ä R A T I O N 33 34 D i r e c t A s s i g n m e n t 35 T O T A L I N T A N G I B L E A S S E T S 36 D i s t r i b u t i o n o f L i n e 3 5 Pr o p r i e t a r y I n f o r m a t o n SO U R C E ,L n 1 4 ,L n 3 7 ,L n 2 4 ,L n n ,L n 1 2 ,L n 4 3 ,L n 8 S- 2 , L n l l lo l 0 a ' 1 lo i i . ' 2 lo 1 2 . ' 3 Ln 1 3 a * 4 Ln 1 4 a * 5 Ln 1 5 a * 6 Ln 1 6 a * 7 Di r e c t Ln 1 0 . . 1 7 Ln 1 8 1 1 8 a Ln 2 1 a * 1 Ln 2 2 a * 2 Ln 2 3 a * 3 Ln 2 4 a * 4 Ln 2 5 a * 5 lo 2 6 . ' 6 Ln 2 7 a * 7 Di r e c t Ln 2 1 . 2 6 Ln 2 9 1 2 9 a Ln 1 8 + 2 9 Ln 3 1 / 3 1 a Ln 3 3 a * 8 Di r e c t Ln 3 3 . . 3 4 Ln 3 5 / 3 5 . AM O R T I Z A B L E A S S E T S tO T A L CO M P A N Y .) 10 0 , 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 10 0 . 0 0 0 0 % 27 . 5 8 6 2 % 19 . 6 2 3 3 % 10 0 . 0 0 0 0 % 36 . 4 5 3 2 % 6.2 5 6 9 % 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 4/1 3 1 2 0 0 9 S.¡ IN T R A S T A T E T O L L PL MS G PL (g ) h (I ) m 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 16 . 9 3 0 0 % 1.3 2 3 2 % 5. 3 4 6 6 % 19 . 6 6 5 5 % 1.1 4 6 9 % 2. 4 3 6 9 % 15 . 9 5 0 1 1 % 1.0 0 5 3 % 2.7 0 4 3 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % to 26 . 6 6 6 3 % 15 , 0 0 0 0 % 26 . 9 6 6 6 % 32 . 0 3 6 6 % 26 . 6 6 6 3 % 26 . 6 6 6 3 % Mo s s A d a m s , L L P 11 . 1 2 3 Alb i o n T e l e p h o n e C o m p a n y Stu d y A r . : 4 7 2 2 1 3 St u d y Y e a r ; 2 0 0 7 UN E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r 22 4 1 0 C & W F D i s t r 3 E q u a l A c c e s s M O U P e t OT H E R A C C O U N T S S E P A R A T I O N 4 2 0 0 2 P r o p H i d F u t T e l e c o m U s e 5 D i r e c t A s s i g n m e n t 6 T O T A L P R O P H L D F U T T E L E C O M U S E 7 D i s t r b u t i o n o f U n e 6 8 2 0 0 3 P i t U n d e r C o n s t r 9 D i r e c t A s s i g n m e n t 10 T O T A L P L T U N D E R C O N S T R 11 D i s t r i b u t i o n o f L i n e 1 0 12 2 0 0 5 T e l e c o m P l a n t Ad j u s t 13 D i r e c t A s s i g n m e n t 14 T O T A L T E L E C O M P L A N T A D J U S T 15 0 i s t r i b i UN T S S E P A R A t T o N .. 16 1 4 0 2 17 1 4 3 8 D e f e r r d C h a r g e s 18 1 2 2 0 M a t e r i a l & S u p l x l C P E 19 D i r e c t A s s i g n m e n t 20 T O T A L M A T E R I A L S A N D S U P P U E S ES l l R A T l O N 22 E q u a l A c c e s s G r o s s I n v e s t m e n t 23 E q u a l A c c e s s G r o s s I n v e s t m e n t - O A 24 A c c u m D e p r e c i a t i o n 25 D e f e r e d O p e r I n c T a x e s 26 U n a m o r t z e d E x p e n s e s 27 T O T A L N E T E Q U A L A C C E S S I N V S T M E N T 28 D i s t u t i o n o f U n e 2 7 IN V E S T A L L O W I D I S A L L O W S E P A R A n O N 29 I n v e s t m e n t A l o w / D i s a l l o w a n c e s 3D D i r e c t A s s i g n m e n t 31 T O T A L I N V E S T A L L O W I D I S A L L O W A N C E S Pr o p r i e t a r y I n f o r m a t i o n SO U R C E ,L n 1 5 ,L n 4 3 Re c o r d s Ln 4 a " 1 Di r e c t Ln 4 . . 5 Ln 6 1 6 a ln 8 a . 1 Di r e c t ln 8 . . 9 ln 1 0 1 1 D a ln 1 2 a " 1 Di r e c t Ln 1 2 . . 1 3 lo 1 4 1 1 4 a lo 1 6 . ' l lo 1 7 . . 1 lo 1 6 . . 2 Di r e c t lo 1 6 . . 1 9 cw e Ln 2 2 a . 3 Di r e c t Ln 2 4 a . 3 Ln 2 5 . ' 3 ln 2 6 a . 3 ln 2 2 - 2 4 - 5 + 2 6 lo 2 7 1 2 7 . Ln 2 9 1 1 . 1 Di r e c t lo 2 9 . . 3 0 TE L E C O M M U N I C A T I O N S P L A N T - O T H E R A C C O U N T S 4/ 1 3 1 2 0 0 9 6-9 to t A L CO M P A N Y MS G ~~ MS G PL M,~ G ~a ~ MS G al (b ) (d ) (e ) (h ) 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1. 0 0 5 3 ~ I 2.7 0 4 3 % 10 0 . 0 0 0 0 % 36 . 4 5 3 2 % 62 5 6 9 % 19 . 6 6 5 5 % 1.1 4 6 9 % 2.4 3 6 9 % 20 5 , 5 5 1 20 5 , 5 5 1 10 0 . 0 0 0 0 % 23 9 , 6 9 8 23 9 , 6 9 8 49 3 , 4 6 4 66 , 6 0 7 19 , 6 1 0 19 , 6 1 0 9.5 4 0 2 % 32 , 7 8 6 32 , 7 8 6 15 . 9 5 0 1 % 2, 0 6 6 1.0 0 5 3 % 2, 0 6 6 2, 7 4 9 2,7 4 9 3, 0 7 2 28 . 6 6 6 3 % 32 . 0 3 6 6 % 5.5 5 9 5,5 5 9 2.7 0 4 3 % 58 , 9 2 4 58 , 9 2 4 28 . 6 6 6 3 % 86 , 6 0 7 42 . 1 3 3 9 % 87 . 3 7 8 87 , 3 7 8 22 3 , 0 6 5 19 , 7 9 6 19 , 7 9 6 30 , 9 1 2 47 , 1 3 8 47 , 1 3 8 63 , 7 2 0 5,8 4 6 76 , 7 9 1 76 , 7 9 1 5,8 4 6 8,7 5 4 16 3 , 9 4 0 Mo s s A d a m s , L L P 12 0 1 2 3 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e . : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r 2 2 0 0 3 P U C - P e l 3 C o r p O p e r E x p e n s e s D i s h ' 4 2 6 8 0 C a p i t l L e a s e s D i s t r 5 N e t T e l e c o m P l a n t D i s h ' e x c I 4 0 4 0 , 4 3 1 0 6 2 1 1 0 S u p p o r t A s s e t s O l t r 7 2 2 1 0 C O E - S w i h i n g D l s t r 8 2 2 2 0 C O E - o p e r a r D i s t r 9 2 2 3 0 C O E - T r a n s m i s s i o n D i s h ' 10 2 3 1 0 l O T D i s t r 11 2 4 1 0 C & W F D i s t r 12 C O E , l O T , C & W F 13 B i g T h r e e E x p e n s e s D i s h ' OT H E R I N C O M E S E P A R A T I O N 14 7 3 0 0 N o n o p e r I n c & E x p e n s e s 15 A 1 w F d s U s e d O u r C o n s h ' 16 C o n t r i b u t i o n s 17 A b a n d o n e d C o n s t r c t o n 18 O t h e r N o n o p e r a t i n g E x p e n s e 19 F i x e d C h a r g e s 20 I n t e e s t o n C a p i t a l L e a s e s 21 F i x e d C h a r g e s E x c l C a p i t a l L e a s e s 22 A m o r t z a t i o n o f D e b t D i s c o u n t 23 O t h e r I n t r e s t 24 T O T A L F I X E D C H A G E S 25 5 2 4 0 R e n t R e v e n u e s 26 S u p p o r t A s s e t s 27 C O E - S w i t c h i n g 28 C O e - o p e r a t o r 29 C O E - T r a n s m i s s i o n 30 I n f o O r i g f e r m E q u i p 31 C & W F 32 N o t C l a s s i f i e d b y A c c t 33 U N B U N D L E D N E T W O R K E L E M E N T S 34 C & W F - U n b u n d l e d L o o p 3S O p e r a t o r S y s t e m s 36 T a n d e m S w i t c h i n g 37 l o c a l S w i h i n g 38 T r a n s p o r t T e r m i n a t i o n 39 T r a n s p o r t F a c i l i t y 40 S S 7 41 O S S 42 D i r e c t A s s i g n m e n t 43 T O S S E P A R T I O N S 44 l T C A m o r t i a t i o n . F e d e r a l 45 I T C A m o r t z a t i o n - S t a t e 46 T O T A L I T C A M O R T I Z A T I O N 47 A m o r t z a t i o n o f E x c e s s O e f T a x e s 48 C a p i t l i z e d P a y r o H T a x e s 49 D i r e c t A s s i g n m e n t 50 T O T A L C A P I T A L I Z E D P A Y R O L L T A X E S 15 1 D e p r e c i a t o n A d j u s t m e n t s 52 D i r e c t A s s i g n m e n t 53 T O T A L D E P R E C I A T I O N A D J U S T M E N T S 54 U n c o l l e c t b l e s . J o i n t M e s s a g e 55 U n c o l l e c t b l e s . E n d U s e r C e i 56 U n c o l l e c t b l e s . I n t e r e x c h a n g e C a r r i e r 57 T O T A L U N C O L L E C T I B L E S S8 M i s c I n c A d j u s b n e n t s S9 I n c A d j A I o c o n 2 0 0 1 60 I n c A d j A 1 l o c o n 2 0 0 1 . D i r e c t A s s i g n m e n t 61 I n c A d j A 1 l o c o n B i g 3 E x p 62 I n c A d j A I o e o n B i g 3 E x p . D i r e c t A s s i g n m e n 63 T O T A L M I S C I N C A D J U S T M E N T S Pr o p r i e t a r y I n f o r m a t i o n SO U R C E ,L n 1 5 ,L n 1 1 ,L n 1 7 ,L n 1 9 ,L n 3 7 ,L n 9 ,L n 3 7 ,L n 2 4 ,L n 7 7 ,L n 1 2 ,L n 4 3 ,L n 8 .L n 6 Ln 1 5 a * 2 Ln 1 6 a * 3 Ln 1 7 a * 1 Di r e c t Ln 2 0 a * 4 Ln 2 1 a * 5 Ln 2 2 a * 5 Ln 2 3 . ' 5 Ln 2 0 . . 2 1 Ln 2 6 a * 6 Ln 2 7 . ' 7 Ln 2 8 a * 8 Ln 2 9 . ' 9 Ln 3 0 a * 1 0 Ln 3 1 a * 1 1 Ln 3 2 a * 1 , D i r e c t ,L n 4 1 " L n 3 4 ,L n 2 4 ' L n 3 5 ,L n 2 9 ' L n 3 6 ,L n 3 4 * L n 3 7 ,L n 6 S * L n 3 8 ,L n 6 S * L n 3 9 ,L n 7 S * L n 4 0 Ln 4 1 a * 1 Di r e c t Ln 2 6 . . 4 2 Ln 4 4 a * 1 Ln 4 5 . ' l Ln 4 4 . . 4 5 Ln 4 7 . ' l Ln 4 8 . ' 1 Dir e c t Ln 4 8 . . 4 9 Ln S 1 a * 1 Dir e c t Ln 5 1 . . 5 2 Dir e c t Dir e c t Dir e c t Ln 5 4 . . 5 6 Ln S g e * 1 Dir e c t Ln 6 1 a * 1 3 Dir e c t Ln 5 9 . . 6 1 41 1 3 1 2 0 0 9 CE R T A I N I N C O M E A C C O U N T S A N D A D J U S T M E N T S 8- 1 0 TO T A L In t e r L A T A CO M P A N Y MS G MS G PL MS G PL MS G PL (o i b (d ) e (ij (h ) I m 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 10 0 . 0 0 0 0 % 43 . 8 2 3 1 % 8.1 3 1 8 % 16 . 0 6 3 9 % 0. 8 4 6 9 % 2.2 9 2 0 % 28 . 8 4 2 3 % 10 0 . 0 0 0 0 % 45 . 5 5 4 1 % 12 . 0 8 9 8 % 15 . 8 3 0 7 % 0. 9 1 0 1 % 3.7 1 4 4 % 21 . 9 0 1 0 % 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 10 0 . 0 0 0 0 % 8S . 0 0 0 0 % 15 . 0 0 0 0 % 10 0 . 0 0 0 0 % 27 . 5 8 6 2 % 19 . 8 2 3 3 % 16 . 9 3 0 0 % 1. 3 2 3 2 % 5.3 4 8 6 % 28 . 9 8 8 8 % 10 0 . 0 0 0 0 % 36 . 4 5 3 2 % 8.2 5 8 9 % 19 . 6 6 5 5 % 1. 1 4 6 9 % 2.4 3 8 9 % 32 . 0 3 6 6 % 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1. 0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 10 0 . 0 0 0 0 % 42 . 3 S 2 1 % 8.3 4 4 7 % 16 . 4 8 4 5 % 0. 8 6 9 1 % 2.3 5 2 0 % 29 . 5 9 7 5 % 13 , 8 2 6 5,8 2 5 1,3 1 9 2, 2 0 5 13 9 37 4 3,9 8 3 18 , 4 3 7 8,0 8 0 1,4 9 9 2, 9 6 2 15 6 42 3 5,3 1 8 29 9 , 5 3 9 36 , 2 1 4 47 , 4 1 9 13 8 . 5 2 29 9 , 5 3 9 36 , 2 1 4 47 , 4 1 9 13 8 , 4 5 2 (2 6 5 , 0 8 3 ) (2 6 5 , 0 8 3 ) 2, 7 2 6 11 , 1 2 6 65 , 6 0 2 2,7 2 6 65 , 6 0 2 11 , 1 2 6 (2 6 5 , 0 8 3 ) (2 6 5 , 0 8 3 ) Mo s s A d a m s , L l P 13 0 1 2 3 41 1 3 1 0 0 9 Alb i o n T e l e p h o n e C o m p a n y Sl 1 d y A r e a : 4 7 2 2 1 3 PL A N T S P E C I F I C E X P E N S E S S- l l Sl 1 d y Y e a r : 2 0 0 7 IN T R A S T A T E T O L L TO T A L CO M P A N Y PL MS G PL MS G PL MS G PL LIN E OE S C R I P T I O N SO U R C E (a ) (c ) d (e ) () h (I ) SE P A R A T I O N S F A C T O R S 12 1 1 0 L a n d & S u p t A s s t s D i s t r ,L n 1 4 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 6 3 % 2 T o t a l C O E D i s t r + E A O i s t r ,L n 7 9 i n c l E A 10 0 . 0 0 0 0 % 51 . 3 4 8 9 % 11 . 6 1 8 7 % 9. 9 2 2 9 % 0.7 1 5 5 % 3. 1 3 4 9 % 23 . 1 9 9 0 % 32 3 1 0 l O T C a l l - o l h e r D i s t r ,L n t 10 0 . 0 0 0 0 % 25 . 0 0 0 0 % 25 . 0 0 0 0 % 50 . 0 0 0 0 % 42 3 1 0 l O T C a I 2 - C P E D i s t r ,L n l 0 52 4 1 0 C & W F D i s t r Ln 4 3 10 0 . 0 0 0 0 % 36 . 4 5 3 2 % 8.2 5 8 9 % 19 . 6 6 5 5 % 1.1 4 6 9 % 2. 4 3 8 9 % 32 . 0 3 6 6 % PL A N T S P E C I F I C E X P E N S E S S E P A R A T I O N 6 6 1 1 0 N e t w r k S u p p o r t E x p e n s e s Ln G a " 1 15 1 , 6 3 3 63 , 8 8 9 14 , 4 6 6 24 , 1 8 6 1,5 2 4 4,1 0 1 43 , 4 6 8 7 Di r e c t A s s i g n m e n t Dir e c t 8 T O T A L N E T W R K S U P P O R T E X P E N S E S Ln B . . 7 15 1 , 6 3 3 63 , 8 8 9 14 , 4 6 6 24 , 1 8 6 1,5 2 4 4,1 0 1 43 , 4 6 8 96 1 2 0 G e n e r a l S u p p o r t Ex p e n s e s Ln g a . 1 18 7 , 4 5 1 78 , 9 8 0 17 , 8 8 3 29 , 8 9 9 1,8 8 4 5, 0 6 9 53 , 7 3 5 10 Dir e c t A s i g n m e n t Dir e c t 11 T O T A L G E N E R A L S U P P O R T E X P E N S E S Ln 9 . . 1 0 18 7 , 4 5 1 78 , 9 8 0 17 , 8 8 3 29 , 8 9 9 1,8 8 4 5, 0 6 9 53 , 7 3 5 12 6 2 1 0 C O E S w c h i n g E x p e n s e s Ln 1 2 a * 2 40 1 , 8 1 8 20 6 , 3 2 9 46 , 6 8 6 39 , 8 n 3,1 1 6 12 , 5 9 7 93 , 2 1 8 13 Di r e c t A s s i g n m e n t Dir e c t 14 T O T A L C O E S W I T C H I N G E X P E N S E S Ln 1 2 . . 1 3 40 1 , 8 1 8 20 6 , 3 2 9 46 , 6 8 6 39 , 8 n 3,1 1 6 12 , 5 9 7 93 , 2 1 8 15 6 2 2 0 C O E O p e r a r S y s t e m s E x p e n s e s Ln 1 5 a " 2 16 Di r e c t A s s i g n m e n t Dir e c t 17 T O T A L C O E O P E R A T O R S Y S E X P E N S E S Ln 1 5 . . 1 6 18 6 2 3 0 C O E T r a n s m i s s i o n E x p e n s e s Ln 1 8 a ' 2 48 9 , 5 4 3 25 1 , 3 7 5 56 , 8 7 9 48 , 5 7 7 3,7 9 7 15 , 3 4 7 11 3 , 5 6 9 19 Di r e c t A s s i g n m e n t Dir e c t 20 T O T A L C O E T R A N S M I S S I O N E X P E N S E S Ln 1 8 . . 1 9 48 9 , 5 4 3 25 1 , 3 7 5 56 , 8 7 9 48 , 5 7 7 3.7 9 7 15 , 3 4 7 11 3 , 5 6 9 21 T O T A L C O E E X P E N S E S Ln 1 4 + 1 7 + 2 0 89 1 , 3 6 1 45 7 , 7 0 4 10 3 , 5 6 5 88 , 4 4 9 6.9 1 3 27 , 9 4 3 20 6 , 7 8 7 22 6 3 1 0 l O T E q u i p E x p e n s e s 23 Ca t 1 - 0 t h e r l O T E q E x p e n s e s Ln 2 3 a ' 3 24 Ca t 2 - C u s t P r e m E q u i p E x p Ln 2 4 a ' 4 25 Di r e c t A s s i g n m e n t Dir e c t 26 T O T A L l O T E X P E N S E S Ln 2 3 . . 2 5 27 6 4 1 0 C & W F E x p e n s e s Ln 2 7 a ' 5 1,1 8 9 , 3 9 3 43 3 , 5 n 98 , 2 3 0 23 3 , 9 0 1 13 , 6 4 1 29 , 0 0 8 38 1 . 0 4 1 28 Di r e c t A s s i g n m e n t Dir e c t 29 T O T A L C & W F E X P E N S E S Ln 2 7 . 2 8 1.1 8 9 , 3 9 3 43 3 , 5 7 2 98 , 2 3 0 . 23 3 , 9 0 1 13 , 6 4 1 29 , 0 0 8 38 1 , 0 4 1 30 P i t S p e c E x p x 1 6 1 1 0 , 6 1 2 0 Ln 2 1 + 2 6 + 2 9 2, 0 8 0 , 7 5 4 89 1 , 2 7 6 20 1 , 7 9 5 32 2 , 3 4 9 20 , 5 5 4 56 . 9 5 1 58 7 , 8 2 8 31 T O T A L P L A N T S P E C O P E R E X P Ln 8 + 1 1 + 3 0 2, 4 1 9 , 8 3 8 1,0 3 4 , 1 4 6 23 4 , 1 4 4 37 6 . 4 3 3 23 . 9 6 2 66 , 1 2 1 68 5 , 0 3 1 32 D i s t r i b u t i o n o f L i n e 3 1 Ln 3 1 1 3 1 a 10 0 . 0 0 0 0 % 42 . 7 3 8 1 % 9. 8 7 8 0 % 15 . 5 5 6 1 % 0.9 9 0 2 % 2. 7 3 2 5 % 28 . 3 0 9 0 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , l L P 14 0 1 2 3 41 1 3 1 0 0 9 Al i o n T e l e p h o n e C o m p a n y Std y A r . : 4 7 2 2 1 3 PL A N T N O N S P E C I F I C E X P E N S E S 8- 1 2 Std y Y e . r : 2 0 0 7 i' L CO ~ : \ A N Y MS G :; ~ MS G ::L MS G PL MS G PL LI N E DE S C R I P T I O N SO U R C E (b ) (d ) e) (f t (0 ) (h ) (i ) m lk \ (Q SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r ,L n 1 5 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 6 3 % 2 T o t a l C O E , l O T , C & W F D l s t r ,L n 7 + 9 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 6 3 % 3 2 1 1 0 S u p p o r t A s s e t s D i s t r ,L n 9 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 6 3 % 4 2 2 1 0 C O E - S w i t c h i n g O i s t r ,L n 4 9 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % 5 2 2 2 0 C O E - O p e r a t o r D i s t r ,L n 2 4 6 2 2 3 0 C O E - T r a n s m i s s i o n D i s t r ,L o n 10 0 . 0 0 0 0 % 27 . 5 8 6 2 % 19 . 8 2 3 3 % 16 . 9 3 0 0 % 1.3 2 3 2 % 5. 3 4 8 6 % 28 . 9 8 8 8 % 72 3 1 0 l O T D i s t r ,L o 1 2 8 2 4 1 0 C & W F D i s h " ,L n 4 3 10 0 . 0 0 0 0 % 36 . 4 5 3 2 % 8.2 5 8 9 % 19 . 6 6 5 5 % 1.1 4 6 9 % 2. 4 3 8 9 % 32 . 0 3 6 6 % 9 2 0 0 2 P r o p H i d F t T e l U s e D i s t r ,L n T 10 2 6 8 0 C a p i t a l L e a s e s O i s t r ,L o 1 9 11 2 6 8 0 L e a s e h o l d I m p r o v e m e n t s D i s t r ,L n 3 0 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s t r ,L n 3 6 13 2 0 0 5 T e l e c o m P i t Ad i u s b n e n t ,L n 1 5 PL A N T N O N S P E C I F I C E X P S E P A R T I O N 1 14 6 5 1 0 O t h P r o p P l a n t & E q E x p Ln 1 4 a " 1 15 Di r e c t A s s i g n m e n t Di r e c t 16 T O T A L O T H P R O P P L A T & E Q E X P Ln 1 4 . . 1 5 17 6 5 3 0 N e t w r k O p e r a t o n s E x p Ln 1 7 a " 2 I 50 9 , 0 2 ~ I 21 4 , 4 7 0 48 , 5 6 ~ I :1 :1 81 , 1 8 9 5,1 1 ~ I 13 , 7 6 6 14 5 , 9 1 7 18 Di r e c t A s s i g n m e n t Di r e c t 19 T O T A L N E l W O R K O P E R A T I O N S E X P Ln 1 7 . . 1 8 50 9 , 0 2 0 21 4 , 4 7 0 48 , 5 6 1 81 , 1 8 9 5,1 1 7 13 , 7 6 6 14 5 , 9 1 7 20 6 5 4 0 A c c e s s E x p e n s e s 21 Ac c e s s E x p e n s e x l F e d e r a l S u p p o r t Di r e c t 22 Fe d e r a l S u p p o r t Di r e c t I 73 , 3 3 0 I 73 , 3 3 0 23 T O T A L A C C E S S E X P E N S E S Ln 2 1 . . 2 73 . 3 3 0 73 , 3 3 0 24 6 5 6 0 D e p r a n d A m o r t E x p e n s e s 89 , 5 6 9 1 25 De p r ~ S u p p o r t A s s e t s Ln 2 5 . ' 3 37 , 7 3 9 8,5 4 5 1 -I -I 14 , 2 8 6 90 0 1 2,4 2 2 25 , 6 7 6 26 De p r ~ S u p p o r t A s s e t s - D i r e c t A s s i g n m e n t Di r e c t 27 De p r . C O E : - S w i c h i n g Ln 2 7 a * 4 28 De p r ~ C O E ~ S w i c h i n g - D i r e c t A s s i g n m e n t Di r e c t 1 59 0 , 5 0 7 1 50 1 , 9 3 1 -I .1 -I .1 88 , 5 7 6 29 De p r ~ C O E - O p e r t o r Ln 2 9 . ' 5 30 De p r - C O E - O p e r a t r - D i r e c t A s s i g n m e n t Di r e c t 31 De p r - C O E - T r a n s m i s s i o n Ln 3 1 a " 6 32 De p r . C O E - T n i n s m i s s i o n - D i r e c t A s s i g n m e n t Di r e c t 1 74 4 , 5 7 8 1 22 9 , 9 4 8 15 4 , 2 1 7 1 .1 -I 12 3 , 0 1 8 11 , 3 2 0 1 37 , 5 1 0 18 8 , 5 6 5 33 De p r . In f o O r i g l e r m E q u i p Ln 3 3 . ' 7 34 De p r . In f o O r i g f e r m E q u i p - D i r e c t A s s i g n m e n t Di r e c t 35 De p r . C a b l e & W i r e F a c i l t i e s Ln 3 5 . ' 8 36 De p r . C a b l e & W i r e F a c i l i t e s - D i r e c t A s s i g n m e n t Di r e c t 1 1,1 8 2 , 3 9 3 1 41 0 , 0 3 0 74 , 9 7 5 1 .1 -I 24 0 . 6 1 4 18 , 7 4 9 1 29 , 4 1 7 40 8 , 6 0 8 37 De p r . P r o p H i d F t T a J U s e Ln 3 7 a * 9 38 Am o r t ~ C a p i t l L e a s e s Ln 3 8 . ' 1 0 39 Am o r t - L e a s e h o l d I m p r o v e m e n t s Ln 3 9 a * 1 1 40 Am o r t - I n t n g i b l e A s s e t s Ln 4 0 a " 1 2 41 Am o r t - O U l e r Ln 4 1 a " 1 3 42 Am o r t . . i r c t A s s i g n m e n t Di r e c t 43 T O T A L D E P R & A M O R T E X P E N S E S Ln 2 5 . . 4 1 I 2. 6 0 7 ' 0 4 7 1 1.1 7 9 , 6 4 8 23 7 ' 7 3 7 1 ;1 ;1 37 7 , 9 1 8 30 ' 9 6 9 1 69 , 3 4 9 71 1 , 4 2 5 44 T O T A L P L A N T N O N S P E C O P E R E X P Ln 1 6 + 1 9 + 2 3 + 4 3 3, 1 8 9 , 3 9 7 1, 4 6 7 , 4 4 8 28 6 , 2 9 9 45 9 , 1 0 7 36 , 0 8 6 83 , 1 1 5 85 7 , 3 4 2 45 D i s t r i b u t i o n o f U n e 3 9 Ln 4 I 4 4 . 10 0 . 0 0 0 0 % 46 . 0 1 0 2 % 8.9 7 6 6 % 14 . 3 9 4 8 % 1.1 3 1 4 % 2.6 0 6 0 % 26 . 8 8 1 0 % Pr o p r i e t r y I n f o r m a t i o n Mo s s A d a m s . L L P 15 0 1 2 3 4/1 3 1 2 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 CU S T O M E R O P E R A T I O N S E X P E N S E S TO T A L CO M P A N Y e) In t e r L A T A MS G P L b) ( 0 ) IN T R A S T A T E T O L L 64 . 5 8 4 0 % 50 . 1 9 6 8 % 48 . 0 8 1 5 % 48 . 8 0 4 % LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 M a r k e t i n g e x p e n s e f a c t o r 2 W S W S T e l O p e r S v e s 3 S u b s c r i b e r L i n e M O V 4 E U S e r v i c e O r d e r C o n t a c t 5 E U B i l l e d R e v e n u e i n c l e e i 6 E U B i l e d I n q u i r y C o n t c t 7 I X S v c O r d P r o c C o n t a c t s 8 I X B i l l e d R e v e n u e 9 I X B i l l l n q C o n t a c t 10 P u b l i c I n t e r e s t P a y t a t i o n R e v e n u e IIl J \ D V i : T l u ~ . i : V D i : " I O i : C ' S E P A R A T I O N - SO U R C E Ln 1 1 a . ' Dir e c t 13 T O T A L MA R K E T I N G EX P E N S E S L n l l . . 1 2 1 S E R V I C E S E X P E N S E S S E P A R A T I O N 1 14 6 6 2 0 S e r v i c e s E x p e n s e s 15 T e l e p h o n e O p e r a t r S e r v i c e : 16 T e l O p e r a t o r S v e 17 D i r e c t A s s i g n m e n t 18 T o t a l T e f O p e r S v e E x p 16 . 6 7 2 9,1 1 2 9,1 1 2 54 3 7.1 6 5 9 % 57 . 1 1 6 3 % 7.3 1 0 0 % 5.2 2 7 5 % 20 . 0 1 0 3 % 20 . 0 1 1 9 % 50 . 0 0 0 0 % 50 . 0 0 0 0 % 50 . 0 0 0 0 % 10 0 . 0 0 0 0 % -I 1,1 9 5 45 9 1,1 9 5 45 9 5,3 6 3 5,3 6 3 Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 % 10 0 . 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 54 . 6 5 4 2 % 3 . 2 5 5 3 % 42 . 8 8 3 7 % 28 . 1 0 6 0 % 44 . 5 7 5 7 % 31 . 9 0 8 2 % 31 . 9 0 7 7 % 50 . 0 0 0 0 % 50 . 0 0 0 0 % 50 . 0 0 0 0 % 16 , 6 7 2 54 3 Ln 1 6 a ' 2 Dir e c t Ln 1 6 . . 1 7 5,6 1 2 5,6 1 2 5,6 1 2 5,6 1 2 19 Pu b l i s h e d D i r e c t U s t i n g s : 20 Cl a s s i f i e d Dir e c t 21 TW Dir e c t 22 Alp h a Ln 2 2 a ' 3 23 Fo r e i g n Dir e c t 24 To t a l P u b l D i r e c t L i s t Ln 2 0 . . 2 3 25 All ote r : 26 Ca t 1 - L B O E E U S v c O r d P r o c 27 Pr e s u b s c r i p t i o n Dir e c t 28 Oth e r Ln 2 8 a ~ 4 1 13 0 , 7 1 2 1 58 , 2 6 6 6,8 3 3 -I 65 . 6 1 3 29 Ca t l - L B O E E U P m t & C o l 30 -C I I Dir e c t 31 -o t e r Ln 2 9 a ~ 5 1 66 , 5 9 1 21 , 2 0 6 -I 13 , 2 9 9 -I 31 . 9 5 4 32 Ce t l - L B O E E U B i l l l n q 33 -C I I Dir e c t 34 -O t h e r Ln 3 2 8 ~ 6 39 , 5 6 3 12 , 6 2 4 7, 9 1 7 -I 19 , 0 2 2 35 Ca t 1 - L B O E I X S v c O r d P r o c Ln 3 5 a ~ 7 57 9 29 0 29 0 36 Ca l l - L B O E I X P m t & C o l Ln 3 6 8 ~ 8 3,5 7 2 1,7 8 6 1, 7 8 6 37 Ca l l - L B O E I X B i l l l n q Ln 3 7 a ~ 9 1,5 8 1 79 1 79 1 38 Ca t 1 - L B O E C n C o l & A d m i n Ln 3 8 a ~ 1 0 39 To t a l C a t i - L B O E Ln 2 6 . . 3 8 24 2 , 4 6 6 94 , 9 6 1 30 , 9 1 5 -I 11 6 , 5 9 0 Pr o p r i e t a r y I n f o r m a t o n Mo s s A d a m s , L L P 16 0 1 2 3 4/ 1 3 1 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 CU S T O M E R O P E R A T I O N S E X P E N S E S S- 1 3 Stu d y Y e a r : 2 0 0 7 CO M P A N Y LI N E DE S C R I P T I O N SO U R C E (a ) SE P A R A T I O N S F A C T O R S 40 R e l a t i v e T o l l & L o c a l M s g s P e t Re c o r d s 10 0 . 0 0 0 0 % 41 C A B S P e t Re c o r d s 10 0 . 0 0 0 0 % SE R V I C E S E X P S E P A R A T I O N ( C O N T ' D ) 1 42 Ca t 2 - e S E M s g P r o c 43 Jo i n t M e s s a g e Ln 4 2 a * 4 0 1 39 . 6 4 7 1 17 , 0 0 9 22 , 6 3 8 44 Di r e c t A s s i g n m e n t Di r e c t 45 Ca t 2 - e S E O t h e r B & C 48 Di r e c t A s s i g n m e n t Di r e c t 81 , 4 9 0 ,, ~ - i -i 28 , 5 9 3 -1 28 , 5 9 3 47 En d U s e r C o m m o n L i n e Di r e c t 4,2 8 9 4, 2 8 9 . . . 48 Ca l 2 - e S E C A B S Ln 4 8 a ' 4 1 17 , 5 1 5 8.7 5 8 8,7 5 8 49 To t a l C a t 2 - C S E Ln 4 2 . . 4 8 14 2 , 9 4 1 54 , 3 5 9 . . . 59 , 9 8 9 ;1 28 , 5 9 3 50 To t a l A l l O t h e r C a t 1 & 2 Ln 3 9 + 4 9 38 5 , 4 0 7 14 9 , 3 2 0 . . . 90 , 9 0 4 14 5 , 1 8 3 51 Dis t r i b u t o n o f L i n e 5 0 Ln 5 0 / 5 0 a 10 0 . 0 0 0 0 % 38 . 7 4 3 6 % . - . . 23 . 5 8 6 5 % 37 . 6 7 0 0 % 52 Ca t 3 - A 1 o t e r C S E Ln 5 2 a ' 5 1 53 Ca t 3 - 0 i r e c t A s s i g n m e n t Di r e c t 9,2 1 4 9,2 1 4 54 To t a l A l l O t h e r C a t 3 Ln 5 2 . . 5 3 9,2 1 4 9,2 1 4 55 To t a l A l l O t h e r - C a l 1 , 2 , 3 Ln 5 0 + 5 4 39 4 , 6 2 1 15 8 , 5 3 4 90 , 9 0 4 14 5 , 1 8 3 56 T O T A L S E R V I C E S E X P E N S E S Ln 1 B + 2 4 + 5 5 40 0 , 2 3 3 15 8 , 5 3 4 90 , 9 0 4 15 0 , 7 9 5 57 T O T A L C U S T O M E R O P E R E X P E N S E S Ln 1 3 + 5 6 41 6 , 9 0 5 16 7 , 6 4 6 54 3 92 , 0 9 9 45 9 15 6 , 1 5 8 58 Dis t r i b u t i o n o f U n e 5 7 Ln 5 7 / 5 7 a 10 0 . 0 0 0 0 % 40 . 2 1 2 1 % 0. 1 3 0 2 % 22 . 0 9 1 0 % 0.1 1 0 2 % 37 . 4 5 6 5 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 17 0 1 2 3 4/1 3 1 2 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e . : 4 7 2 2 1 3 CO R P O R A T E O P E R A T I O N S , T A X E S , & E Q U A L A C C E S S E X P E N S E S S- 1 4 Stu d y Y e a r : 2 0 0 7 IN T R A S T A T E T O L L MS G PL MS G PL LI N E DE S C R I P T I O N SO U R C E b (e ) (d ) (9 Ol SE P A R A T I O N S F A C T O R S 1 B i g T h r e E x p e n s e s D l s t r ,l o 6 10 0 . 0 0 0 0 % 42 . 3 5 2 1 % 8.3 4 4 7 % 16 . 4 8 4 5 % 0. 8 6 9 1 % 2.3 5 2 0 % 29 . 5 9 7 5 % 2 2 0 0 1 T P I S D i o u ,l o 1 5 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 3 % 3 E q u a l A c c e s s I n v e s t D i s t r ,l o 2 8 4: N e t Te l e c o m P l a n t D i s t r e x c 1 1 2 2 0 , E A ,L n 3 7 10 0 . 0 0 0 0 % 45 . 6 9 7 0 % 12 . 1 5 0 0 % 15 . 7 7 0 5 % 0. 9 0 6 3 % 3.7 3 4 4 % 21 . 7 4 1 7 % 5 I n c o m e T a x D i s t r b u t i o n S- 3 , L n 2 7 10 0 . 0 0 0 0 % 73 . 5 5 2 7 % (3 6 . 1 7 9 0 % 1 (4 7 . 6 4 1 9 % ) /4 . 0 3 2 6 % ) 11 0 . 3 6 6 3 % 1 12 4 . 6 6 7 1 % CO R P O R A T E O P E R E X S E P A R A T I O N S I 6 6 7 1 0 E x e c & P l a n n i n g E x p e n s e s 7 EA S Dir e c 8 Al l ot h e r lo 8 . ' l I 85 6 , 8 3 4 36 2 , 8 8 7 71 , 5 0 ~ 1 :1 :1 14 1 , 2 4 5 7. 4 6 1 20 , 1 5 3 25 3 , 6 0 2 9 Dir e c t A s s i g n m e n t Di r e c t 7, 4 4 ~ 10 T O T A L E X E C & P L A N N I N G E X P E N S E S lo 7 . . 9 85 6 , 8 3 4 36 2 , 8 8 7 71 , 5 0 1 14 1 , 2 4 5 20 . 1 5 3 25 3 , 6 0 2 11 6 7 2 0 G e n 1 a n d A d m i n E x p e n s e s 12 EA S Dir e c t 13 Al l Ot h e r Ln 1 3 a * 1 84 8 , 9 9 1 35 9 , 5 6 6 70 , 8 4 6 13 9 , 9 5 2 7, 3 7 8 19 , 9 6 8 25 1 , 2 8 0 14 Dir e c t A s s i g n m e n t Dir e c t 44 , 6 6 6 44 , 6 6 6 15 T O T A L G E N ' L & A D M I N E X P E N S E S Ln 1 2 . . 1 4 89 3 , 6 5 7 40 4 , 2 3 2 70 , 8 4 6 13 9 , 9 5 2 7, 3 7 8 19 , 9 6 8 25 1 , 2 8 0 16 T O T A L C O R P O R A T E O P E R E X P E N S E S Ln 1 0 + 1 5 1,7 5 0 , 4 9 1 76 7 , 1 1 9 14 2 , 3 4 7 28 1 , 1 9 7 14 , 8 2 5 40 , 1 2 1 50 4 , 8 8 2 17 D i s t r i b u t i o n o f L i n e 1 6 Ln 1 6 / 1 6 . 10 0 . 0 0 0 0 % 43 . 8 2 3 1 % 8. 1 3 1 8 % 16 . 0 6 3 9 % 0. 6 4 6 9 % 2.2 9 2 0 % 28 . 8 4 2 3 % I OP E R A T I N G T A X E S S E P A R A T I O N S I 18 n O D O p e r a t i n g T a x e s ( A c t a l ) I :1 19 Fe d e r a l l n è o m e T a x e s Ln 1 9 a * 5 29 1 ' 3 2 5 1 21 4 , 2 7 7 /1 0 5 ' 3 9 9 ) 1 :1 (1 3 8 , 7 9 3 ) (1 1 ' 7 4 8 ) 1 (3 0 , 2 0 0 ) 36 3 , 1 8 6 20 St t e & L o c a l In c o m e T a x e s Ln 2 0 a * 5 20 15 (7 ) (1 0 ) (1 ) (2 ) 25 21 OP F E D , S T A T E , L O C A L T A X E S - c w e 29 1 , 3 4 5 21 4 , 2 9 2 (1 0 5 , 4 0 6 ) (1 3 8 , 8 0 2 ) (1 1 , 7 4 9 ) (3 0 , 2 0 2 ) 36 3 , 2 1 1 22 F I T A H o w a n c e s J O l s a l l o w a n c e s lo 2 2 . ' 2 23 Op e r a t i n g T a x e s . P r o p e r t lo 2 3 . ' 2 12 7 , 4 0 3 53 , 6 8 0 12 , 1 5 4 1 .1 .1 20 , 3 2 1 1, 2 8 1 1 3,4 4 5 36 , 5 2 2 24 Op e r a t i n g T a x e s . O t h e r lo 2 4 . ' 2 25 Op e r a t i n g T a x e s . D i r e c t A s s i g n m e n t Dir e c t 1,4 5 3 1,4 5 3 26 T O T A L D P E R T A X E S x / F I T , S I T lo 2 3 . . 2 5 12 8 . 8 5 6 55 , 1 3 3 12 , 1 5 4 20 , 3 2 1 1,2 8 1 3,4 4 5 36 , 5 2 2 OP E R A T I N G R E V E N U E S E P A R A T I O N S I 27 5 0 0 0 B a s i c L o c a l R e v e n u e Dir e c t 1,8 5 0 , 6 7 2 1,8 5 0 , 6 7 2 28 5 0 8 0 I n t e r s t a t e A c c e s s / E n d U s e r R e v e n u e Dir e c t 7,2 0 2 , 4 3 6 5,0 8 3 , 7 2 8 2,1 1 8 , 7 0 8 29 5 0 8 4 S t a A c c e s s / E n d U s e r R e v e n u e Dir e c t 84 1 , 8 7 8 31 3 , 5 2 6 52 8 , 3 5 2 30 5 1 0 0 L o n g D i s t a n c e M e s s a g e R e v e n u e Dir e c t 31 5 2 0 0 M i s c e l l a n e o u s O p e r a t i n g R e v e n u e Dir e c t 35 , 0 0 3 2, 4 0 4 26 , 8 4 5 5.7 5 4 32 7 1 0 0 O t h e r O p e r a t i n g I n c o m e Dir e c t 33 T O T A L O P E R A T I N G R E V E N U E Ln 2 7 . . 3 2 9,9 2 9 , 9 8 9 5,0 8 6 , 1 3 2 34 0 . 3 7 1 4,5 0 3 , 4 8 6 SE P A R A T I O N I Ln 3 4 a * 3 35 T O T A L E Q U A L A C C E S S E X P E N S E S Ln 3 4 . . 3 4 I AL L O W A N C E S A N D D I S A L L O W A N C E S I 36 E x p e n s e A I o w a n c e s J l s a l I o w a n c e s 37 In t e r e s t o n C u s t o m e r D e p o s i t s lo 3 7 . ' 4 1 22 7 1 10 4 28 1 -I .1 36 21 8 49 38 ot e r I n t e r e s t D e d u c t o n lo 3 7 . ' 4 39 Dir e c t A s s i g n m e n t Oir e c t 40 T O T A L E X P E N S E A L L O W / D I S A L L O W A N C E S lo 3 7 . . 3 8 I 22 7 1 10 4 28 1 -I .1 36 21 8 49 No t e 1 : F I T a n d S I T C a l c u l a t e d o n t h e S - 1 Pro p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 18 0 1 2 3 4/ 1 3 1 2 0 0 9 Alb i o n T e l e p h o n e C o m p a n y St u d y A r e . : 4 7 2 2 1 3 RE S E R V E S & D E F E R R A L S 5- 1 5 Stu d y Y e a r : 2 0 0 7 Sh e e t 1 0 1 2 TD T A L CD M P A N Y MS G PL MS G PL LIN E DE S C R I P T I O N SD U R C E . (b ) c (d ) (g ) ül SE P A R A T I O N S F A C T O R S 1 2 1 1 0 S u p p o r t A s s e t s D i s t r ,L n g 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9. 5 4 0 2 % 15 . 9 5 0 1 % 1. 0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 6 3 % 2 2 2 1 0 C O e - 8 w i t c h i n g , i n e l . E A D i s t r S.. , L n 3 7 + S - 9 , L n 2 6 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % 3 2 2 2 0 C O E - C p e r a t o r O i s t r ,L n 2 4 4 2 2 3 0 C O E - T r a n s m i s s i o n O i s t r ,L n 7 7 10 0 . 0 0 0 0 % 27 . 5 8 6 2 % 19 . 8 2 3 3 % 16 . 9 3 0 0 % 1.3 2 3 2 % 5. 3 4 8 8 % 28 . 9 8 8 8 % 52 3 1 0 l O T D i s t r ,L n 1 2 62 4 1 0 C & W F D i s h ' ,L n 4 3 10 0 . 0 0 0 0 % 36 . 4 5 3 2 % 82 5 8 9 % 19 . 8 8 5 5 % 1.1 4 8 9 % 2A 3 8 9 % 32 . 0 3 6 8 % 7 2 0 0 1 T P I S x / L a n d ,lo 1 8 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 8 8 8 3 % 8 G e n e r a l S u p p o r t , C O E , lO T , C & W F ,L n 1 + 8 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 8 8 8 3 % 9 2 0 0 2 P r o p H i d F t r T e l U s e O i s t r ,lo 7 10 2 6 8 0 C a p t i a l l e a s e s D i s t r ,lo 1 9 11 2 6 8 0 L e a s e h o l d I m p r o v e m e n t s ,lo 3 0 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s t r ,lo 3 8 13 2 0 0 5 T e l e c o m P i t A d u s t m e n t ,lo 1 5 RE S E R V E S & D E F E R R A L S S E P A R A T I O N 14 1 5 0 0 o t e r J u r i s A s s e t s - N e t Dir e c t 15 3 1 0 0 A c c u m D e p r - T e l P I t i n S v e I 2, 2 2 5 , 4 4 2 1 21 2 , 3 1 1 1 -I -I 22 , 3 7 1 I 18 Su p p o r t A s s e t s Ln 1 6 a " 1 93 7 , 5 6 5 35 4 , 9 5 9 80 , 1 8 3 63 7 , 9 5 1 17 Su p p o r t A s s e t s . D i r e c t A s s i g n m e n t Dir e c t 18 CO E - S w i t c h i n g Ln 1 8 a * 2 19 CO E - S w i t c h i n g . D i r e c t A s s i g n m e n t Dir e c t I 4, 7 5 0 , 2 3 3 1 4,0 3 7 , 8 9 8 -I -I -I -I 71 2 , 5 3 5 20 CO E - O p e r a t o r lo 2 0 . ' 3 21 CO E - O p e r a t o r . D i r e c t A s s i g n m e n t Dir e c t 22 CO E - T r a n s m i s s i o n lo 2 2 . ' 4 23 CO E - T r a n s m i s s i o n - D i r e c t A s s i g n m e n t Dir e c t 1 4, 7 1 1 , 1 8 2 1 1, 3 4 2 , 1 4 9 91 0 , 3 5 1 1 .1 -I 80 3 , 5 9 7 55 , 8 3 0 1 24 8 , 9 8 1 1,3 5 0 , 2 7 6 24 In f o O r i g I e r m E q u i p lo 2 4 . ' 5 25 In f o O r i g I e r m E q u i p - D i r e c t As s i g n m e n t Dir e c t 26 C& W F lo 2 8 . ' 8 27 C& w F - D i r e c t A s s i g n m e n t Dir e c t I 11 , 7 2 , 8 7 7 1 3,0 0 3 , 4 8 3 71 2 , 7 5 5 1 :1 :1 2,8 0 3 , 1 5 7 17 2 , 2 4 8 1 18 8 , 8 3 2 5, 0 8 7 . 2 2 8 28 T O T A L A C C U M U L A T E D D E P R E C I A T I O N Ln 1 8 . . 2 7 23 . 4 1 2 , 5 3 4 9,3 2 0 , 9 7 4 1,8 3 5 , 4 1 7 3,7 8 1 , 7 1 2 25 0 . 4 4 7 47 5 , 9 9 5 7, 7 8 7 . 9 8 7 29 3 2 0 0 A c c u m D e p T P r o p e r t H e l d 30 Fo r F u t u T e l e c o m U s e Ln 3 D a " g 31 3 4 0 0 A c c u m A m o r t - C a p i t a l L e a s e s lo 3 1 . ' 1 0 32 3 4 0 0 A c c u m A m o r t - L e a s e h o l d I m p r o v e m e n t s lo 3 2 . ' 1 1 33 3 5 0 0 A c c u m A m o r t - I n t a n g i b l e lo 3 3 . ' 1 2 34 3 6 0 0 A c c u m A m o - O t e r lo 3 4 . ' 1 3 35 4 0 4 0 C u s t o m e r D e p o s i t Ln 3 5 a " 7 I 8. 7 7 : I 2, 8 5 3 64 ~ I :1 :1 1, 0 8 0 8~ I 18 3 1,9 4 1 38 Di r e c t A s s i g n m e n t Dir e c t 37 T O T A L C U S T O M E R D E P O S I T S Ln 3 5 . . 3 8 6,7 7 1 2, 8 5 3 64 5 1, 0 8 0 88 18 3 1.9 4 1 38 4 1 D O N e t C u r O e f O p I n c T a x e s 39 Su p p o r t A s s e t lo 3 9 . ' l 40 CO E - s h i n g Ln 0 . ' 2 41 co e - o p e r a t o r Ln 1 . ' 3 42 CO E - T r a n s m i s s i o n Ln 4 2 a " 4 43 In f O r i g I e r m E q u i p lo 4 3 . - 5 44 C& W F Ln 4 4 a " S 45 No t C l a s i f i e d b y A c c t Ln 4 5 a " B 46 T O T A L N E T C U R D E F O P I N C T A X E S Ln 3 9 . . 4 5 Pr o p r i e t a r y I n f o r m a t o n Mo s s A d a m s , L L P 19 0 1 2 3 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 St d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 47 B i g T h r e e E x p e n s e s D i s t r 48 2 1 1 0 S u p p o r t As s e t s D i s t r 49 2 2 1 0 C O E - S w l h i n g D i s t r 50 2 2 2 0 C O E . . p e r a t o r D i s t r 51 2 2 3 0 C O E . T r a n s m i s s i o n D i s t r 52 2 3 1 0 l O T D i s t r 53 2 4 1 0 C & W F D i s t r 54 2 0 0 1 T P I S x / L a n d 55 2 0 0 1 T P I S D i s t r 56 2 0 0 1 T P I S D i s t r RE S E R V E S & D E F E R R A L S S E P A R A n O N 57 4 3 1 0 Ot h e r L o n g - T e r m U a b i l t i e s 58 4 3 4 0 N e t N o n c u r r e n t D e f T u e s 59 S u p p o r t A s s e t s 60 C O E - s h i n g 61 C O E . o p e r a t o r 62 C O E - T r a n s m i s s i o n 63 I n f o O r i g l T e r m E q u i p 64 C & W F 65 N o t C l a s s i f i e d b y A c c t 66 T O T A L N E T N O N C U R R E N T D E F T A X E S 67 4 3 6 0 O t e r D e f e r r d C r e d i t s N e t SO U R C E ,L n 6 ,L n 9 ,L n 2 ,L n 2 4 ,L n 7 7 ,L n 1 2 ,L n 4 3 ,L n 1 8 ,L n 1 5 Ln 1 + 8 Ln 5 7 a * 4 7 Ln 5 9 a * 4 8 Ln 6 0 a * 4 9 Ln 6 1 a * 5 0 Ln 6 2 a * 5 1 Ln 6 3 a * 5 2 Ln 6 4 a * 5 3 Ln 6 5 a ' 5 4 Ln 5 9 . . 8 5 Ln 6 7 a ' 5 5 68 4 3 7 0 O t e r J u r i s U a b i l i t s 69 & D e f e r r e d C r e d i t s - N e t D i r e c t I A C C U M D E P R & A M O R T A L L O W / D I S A L L O W I 70 A c c u m D e p r & A m o r t A l l o w / D i s a l l o w L n 7 0 a * 5 4 71 D i r e c t A s s i g n m e n t D i r e c t 72 T O T A L A C C D E P R I A M O R T A L W / O I S A L L O W L n 7 0 . . 7 1 Pro p r i e t a r y I n f o r m a t i o n 4/1 3 1 2 0 0 9 RE S E R V E S & D E F E R R A L S TO T A L CO M P A N Y MS G PL MS G PL De f i n e d a (b (a ) (h ) i lJ k (I ) 10 0 . 0 0 0 0 % 42 . 3 5 2 1 % 8.3 4 4 7 % 16 . 4 8 4 5 % 0. 8 6 9 1 % 2.3 5 2 0 % 29 . 5 9 7 5 % 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 1.5 . 0 0 0 0 % 10 0 . 0 0 0 0 % 27 . 5 8 6 2 % 19 . 8 2 3 3 % 16 . 9 3 0 0 % 1. 3 2 3 2 % 5.3 4 8 6 % 28 . 9 8 8 8 % 10 0 . 0 0 0 0 % 36 . 4 5 3 2 % 8.2 5 8 9 % 19 . 6 6 5 5 % 1. 1 4 6 9 % 2.4 3 8 9 % 32 . 0 3 6 6 % 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1. 0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 3 % 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1. 0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1. 0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % 19 5 , 0 8 1 82 . 6 2 1 16 , 2 7 9 32 , 1 5 8 1. 6 9 5 4,5 8 8 57 . 7 3 9 58 3 , 4 1 3 58 3 , 4 1 3 55 , 6 5 9 55 , 6 5 9 93 , 0 5 5 93 , 0 5 5 5. 8 6 5 5, 8 6 5 16 7 , 2 4 3 16 7 , 2 4 3 15 , 7 7 7 15 , 7 7 7 24 5 . 8 1 4 24 5 , 8 1 4 Mo s s A d a m s , L L P 20 0 1 2 3 4/ 1 3 1 2 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r a : 4 7 2 2 1 3 CA S H W O R K I N G C A P I T A L S-1 6 Stu d y Y e a r : 2 0 0 7 TO T A L In t e r L A T A Us e r CO M P A N Y MS G PL MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E (a (b ) (e ) (h ) (k ) CA S H W O K I N G C A P I T A L 1 P l a n t S p e c i f i c E x p e n s e s Ln 3 1 2,4 1 9 , 8 3 8 1,0 3 4 , 1 4 6 23 4 , 1 4 4 37 6 , 4 3 3 23 , 9 8 2 66 , 1 2 1 88 5 , 0 3 1 2 P l a n t N o n s p e c i f i c e x p e x e l d e p r e c i a t i o n & a m o r t o n 8- 1 2 , l o 1 6 a ' 2 3 58 2 , 3 5 0 28 7 , 8 0 0 48 , 5 6 1 81 , 1 8 9 5,1 1 7 13 , 7 6 6 14 5 , 9 1 7 3 C u s t o m e r O p e r a t i o n s E K p e n s e ~ M a r k e t i n g 8- 1 3 , l o 1 3 16 . 6 n 9,1 1 2 54 3 1,1 9 5 45 9 5,3 6 3 4 C u s t o m e r O p e r a t i o n s E x p e n s e ~ S e r v i c e s 8- 1 3 , l o 5 6 40 0 , 2 3 3 15 8 , 5 3 4 90 , 9 0 4 15 0 , 7 9 5 5 C o r p o r a t O p e r a t o n s E x p e n s e 8- 1 4 , l o 1 6 1,7 5 0 , 4 9 1 76 7 , 1 1 9 14 2 , 3 4 7 28 1 , 1 9 7 14 , 8 2 5 40 , 1 2 1 50 4 , 8 8 2 6 E q u a l A c c e s s E x e n s e 8- 1 4 , l o 3 4 7 O U l e r N o n o p e r a t i n g E x p e n s e - C o n t r i b u t i o n s 8- 1 0 , l o 1 6 18 , 4 3 7 8,0 8 0 1, 4 9 9 2, 9 6 2 15 6 42 3 5.3 1 8 8 I n t e r e s t o n C a p i t l L e a s e s 8- 1 0 , L n 2 0 9 F i x e d C h a r g e s e x e l C a p i t l L e a s e s 8- 1 0 , L n 2 1 29 9 , 5 3 9 13 6 , 4 5 2 38 , 2 1 4 47 , 4 1 9 2.7 2 6 11 , 1 2 6 85 , 8 0 2 10 I n t e r e s t o n C u s t o m e r D e p o s i t s 8- 1 0 , L n 1 7 22 7 10 4 28 38 2 8 49 11 O t h e r O p e r a n g T a x . P r o p e r t S- 1 0 , l o 2 3 12 7 , 4 0 3 53 , 6 8 0 12 , 1 5 4 20 , 3 2 1 1,2 8 1 3, 4 5 38 , 5 2 2 12 O t h e r O p e r a n g T a x . O t h e r S- 1 0 , L n 2 4 13 O t h e r O p e r a n g T a x . D i r e c t A s s i g n m e n t S- 1 0 , L n 2 5 1,4 5 3 1,4 5 3 14 F e d e r a l In c o m e T a x ( A c t a l ) 8- 1 0 , L n 1 9 29 1 , 3 2 5 21 4 , 2 1 7 (1 0 5 , 3 9 9 ) (1 3 8 . 7 9 3 ) (1 1 , 7 4 8 ) (3 0 , 2 0 0 ) 36 3 , 1 8 6 15 S t a I n c o m e T a x ( A c t a l ) 8- 1 0 , L n 2 0 20 15 (7 ) (1 0 ) (1 ) (2 ) 25 16 To t a l C a s h W o r k i n g C a p i t l E x p e n s e s lo l . . 1 5 5,9 0 7 , 9 8 8 2, 6 7 0 . 1 7 1 37 0 , 0 8 4 76 2 , 8 5 4 36 , 7 8 0 10 4 , 8 0 9 1,9 6 2 , 6 9 0 17 C a s h W o r k i n g C a p i t a l F a c t o r Re c o r d s 8.3 4 5 2 % 8.3 4 5 2 % 8.3 4 5 2 % 8.3 4 5 2 % 8.3 4 5 2 % 8.3 4 5 2 % 8. 3 4 5 2 % 8.3 4 5 2 % 8. 3 4 5 2 % 8.3 4 5 2 % 8.3 4 5 2 % 18 C a s h W o r k i n g C a p i t a l lo 1 5 ' L n 1 7 49 3 , 0 3 4 22 2 , 8 8 1 30 , 8 8 4 63 , 6 6 2 3,0 6 9 8, 7 4 6 16 3 . 7 9 1 19 M i n i m u m B a n k B a l a n c e Re c o r d s 20 W o r k i n g C a s h A d v n c e s Re c o r d s 45 0 20 3 28 58 3 8 14 9 21 To t a l C a s h W o r k i n g C a p i t l 49 3 , 4 8 4 22 3 , 0 8 5 30 . 9 1 2 63 , n O 3,0 7 2 8, 7 5 4 16 3 , 9 4 0 22 D i s t r i b u t i o n o f L i n e 2 0 Ln 2 1 1 2 1 a 10 0 . 0 0 0 0 % 45 . 2 0 6 1 % 62 6 4 1 % 12 . 9 1 2 2 % 0.6 2 2 5 % 1.7 7 4 0 % 33 . 2 2 1 0 % Pr o p r i e t r y I n f o r m a t o n Mo s s A d a m s , L L P 21 0 1 2 3 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r ; 2 0 0 7 LN DE S C R I P T I O N SO U R C E 1 A V E R A G E N E T I N V E S T M E N T 2 A S S U M E D R A T E O F R E T U R N F O R E S T I M A T I N G T A X R A T E 3 R E T U R N O N I N V E S T M E N T 4 F I T I N C O M E A D J U S T M E N T ( F R O M C O S T S T U D Y ) 5 I N V E S T M E N T T A X C R E D I T A M O R T I Z A T I O N 6 A F T E R T A X I N C O M E B E F O R E T A X C R E D I T S 7 F I T B E F O R E T A X C R E D I T S ( M U S T E Q U A L L N 1 7 ) 8 T A X L E I N C O M E 9 F I T O N $ 0 t o $ 5 0 , 0 0 0 I ! 1 5 % 10 F I T O N $ 5 0 , 0 0 0 t o $ 7 5 , 0 0 0 1 ! 2 5 % 11 F I T O N $ 7 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 1 ! 3 4 % 12 F I T O N $ 1 0 0 , 0 0 0 t o $ 3 3 5 , 0 0 0 1 ! 3 9 % 13 F I T O N $ 3 3 5 , 0 0 0 t o $ 1 0 , 0 0 0 , 0 0 0 1 ! 3 4 % 14 F I T O N $ 1 0 , 0 0 0 , 0 0 0 t o $ 1 5 , 0 0 0 , 0 0 0 1 ! 3 5 % 15 F I T O N $ 1 5 , 0 0 0 , 0 0 0 t o $ 1 8 , 3 3 3 , 3 3 3 I! 38 % 16 F I T O N O V E R $ 1 8 , 3 3 3 , 3 3 3 1 ! 3 5 % 17 T O T A L T A X B L E I N C O M E / F I T B E F O R E T A X C R E D I T S 18 E F F E C T I V E F I T TA X R A T E ,L n 1 ,L n 4 Ln l a ' 2 15 % 25 % 34 % 39 % 34 % 35 % 38 % 35 % LN s 9 . . 1 6 Pr o p r i e t a r y I n f o r m a t o n Ta x a b l e TO T A L 15 , 7 8 8 . 3 9 8 9.9 9 7 4 % 1,5 7 8 , 4 3 1 29 9 , 5 3 9 1,2 7 8 , 8 9 2 46 8 , 7 0 6 1,7 4 7 , 5 9 8 50 , 0 0 0 25 , 0 0 0 25 , 0 0 0 23 5 , 0 0 0 1,4 1 2 , 5 9 8 1.7 4 7 , 5 9 8 TA X FO R M IN C O M E TA X TO T A L I S u r T a x 7, 5 0 0 6,2 5 0 8, 5 0 0 91 , 6 5 0 48 0 , 2 8 3 59 4 , 1 8 3 34 . 0 0 0 0 % 4/1 3 / 2 0 0 9 8- 1 7 5,0 0 11 , 7 5 0 16 , 7 5 0 10 0 , 0 0 0 55 0 , 0 0 0 Mo s s A d a m s , L L P 22 0 1 2 3 41 1 3 1 2 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Sh i d y A r e a : 4 7 2 2 1 3 DI S T R I B U T I O N R A T I O S F O R R A T E B A S E A N D E X P E N S E S 8- 1 8 Sh i d y Y e a " 2 0 0 7 I MC AL L O C A T I O N R A T I O S Ca t g o r y 1 To t a l Ca p i t l In v e s t m e n t S u m m a r ' Ge n e r a l S u p p o r t F a c i D t i e s 21 1 0 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9. 5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 8 8 6 3 % CO E S w i t c h i n g E q u i p m e n t 22 1 0 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % Op e r a t o r S y s t e m s E q u i p m e n t 22 0 CO E T r a n s m i s s i o n E q u i p m e n t 22 3 0 10 0 . 0 0 0 0 % 27 . 5 8 6 2 % 19 . 8 2 3 3 % 16 . 9 3 0 0 % 1.3 2 3 2 % 5. 3 4 8 6 % 28 . 9 8 8 8 % In f o r m a t i o n O r i g f e r m E q u i p m e n t 23 1 0 Ca b l e & I J r e F a c i l i t i e s 24 1 0 10 0 . 0 0 0 0 % 36 . 4 5 3 2 % 8. 2 5 8 9 % 19 . 6 6 5 5 % 1.1 4 6 9 % 2. 4 3 8 9 % 32 . 0 3 6 6 % Ta n g i b l e A s s e t s 26 8 0 In t a n g i b l e A s s e t s 26 9 0 To t a l P l a n t i n S e r v i c e A l e 2 0 0 1 I 10 0 . 0 0 0 % 1 42 . 1 3 3 9 % 9.5 4 0 2 % 1 .1 .1 15 . 9 5 0 1 % 1. 0 0 5 3 % I 2. 7 0 4 3 % 28 . 6 6 3 % Pr o p e r t H e l d f o r F u b J r e U s e 20 0 2 Pl a n t U n d e r C o n s t r c t i o n 20 0 3 1 10 0 . 0 0 0 0 0 / : 1 42 . 1 3 3 9 % 9. 5 ~ 2 % 1 :1 :1 15 . 9 5 0 1 % 1. 0 0 5 3 ~ 1 2. 7 0 4 3 % 28 . 6 6 6 3 % Te l e p h o n e P l a n t Ad j u s t m e n t 20 0 5 To t a l P r o p e r t , P l a n t a n d E q u i p m e n t 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 6 3 % Ac c u m u l a t e d D e p r e c i a t i o n - P l a n t i n S e r v c e 31 0 0 10 0 . 0 0 0 0 % 39 . 8 1 1 9 % 7.8 3 9 5 % 16 , 0 6 7 1 % 1.0 6 9 7 % 2. 0 3 3 1 % 33 . 1 7 8 8 % Ac c u m u l a t e d D e p r e c i a t o n - P r o p e r t h e l d f o r F u t u r e U s e ) 32 0 0 Ac c u m u l a t e d A m o r t z a o n - T a n g i b l e P r o p e r t 34 0 0 Ac c u m u l a t e d A m o r t z a o n - I n t a n g i b l e P r o p e r t 35 0 0 Ac c u m u l a t e d A m o r t z a o n - T e l e p h o n e P l a n t A d j u s t m n t 36 0 0 De f e r r d O p e r a t i n g T a x e s 43 4 0 1 10 0 . 0 0 0 0 % 1 42 . 1 3 3 9 % 9. 5 4 0 2 % 1 ~ 1 ~ 1 15 . 9 5 0 1 % 1. 0 5 3 % I 2. 7 0 4 3 % 28 . 6 6 6 3 % OU t e r L o n g T e r m L i a b i l t i e s 43 1 0 10 0 . 0 0 0 0 % 42 . 3 5 2 1 % 8.3 4 4 7 % 16 . 4 8 4 5 % 0.8 6 9 1 % 2. 3 5 2 0 % 29 . 5 9 7 5 % oU t e r D e f e r r e d C r e d i t 43 7 0 Cu s t m e r D e p o s i t s 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2.7 0 4 3 % 28 . 6 6 6 3 % Ne t T e l e p h o n e P l a n t 10 0 . 0 0 0 0 % 45 . 5 5 4 1 % 12 . 0 8 9 8 % 15 . 8 3 0 7 % 0.9 1 0 1 % 3. 7 1 4 4 % 21 . 9 0 1 0 % In v e s t m n t A l o w / D i s a l l o w Ac c u m D e p r / A m o r t A U o w / D i s a D o w Ma t e r i a l s a n d S u p p l i e s 12 2 0 1 10 0 . 0 0 0 0 % 1 36 . 4 5 3 2 % 8. 2 5 8 9 % I .1 .1 19 . 6 6 5 5 % 1. 1 4 6 9 % I 2.4 3 8 9 % 32 . 0 3 6 6 % In v e s t m e n t In N o n a f l i a t e d C o m p a n i e s 14 0 2 Eq u a l A c c e s s E q u i p m e n t 14 3 9 OU t e r J u r i s d i c t o n a l A s s e t s 15 0 0 Ca s h W o r k i n g C a p i t a l xx i 10 0 . 0 0 0 % I 45 . 2 0 6 1 % 6.2 6 4 1 % I :1 :1 12 . 9 1 2 2 % 0.6 2 2 5 % I 1. 7 7 4 0 % 33 . 2 1 0 % Ne t T e l e p h o n e P l a n t , M & S a n d e w e 10 0 . 0 0 0 0 % 45 . 5 8 4 2 % 11 . 9 5 5 1 % 15 . 7 3 1 4 % 0.9 0 1 5 % 3. 6 7 1 0 % 22 . 1 5 6 8 % Op e r a t i n g E x p e n s e s a n d T a x e s S u m m a l ' Ne t w r k S u p p o r t 61 1 0 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 6 3 % Ge n e r a l S u p p o r t 61 2 0 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 6 3 % Ce n t r a l O f e 62 1 0 10 0 . 0 0 0 0 % 51 . 3 4 8 9 % 11 . 6 1 8 7 % 9.9 2 2 9 % 0.7 7 5 5 % 3. 1 3 4 9 % 23 . 1 9 9 0 % In f o r m a t i o n O r i g l e r m 63 1 0 Ca b l e a n d W i r e F a c i l i t e s 64 1 0 10 0 . 0 0 0 0 % 36 . 4 5 3 2 % 82 5 8 9 % 19 . 6 6 5 5 % 1.1 4 6 9 % 2A 3 8 9 % 32 . 0 3 6 6 % OU t e r P l a n t 65 1 0 Ne t w r k O p e r a t o n s 65 3 0 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9.5 4 0 2 % 15 . 9 5 0 1 % 1.0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 6 3 % Ac c e s s C h a r g e 85 4 0 Fe d e r a l S u p p o r t 65 4 0 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % Ma r k e t i n g 86 1 0 10 0 . 0 0 0 0 % 54 . 6 5 4 2 % 3.2 5 5 3 % 7. 1 6 5 9 % 2.7 5 6 1 % 32 . 1 6 8 5 % Cu s t o m e r S e r v i c e 66 2 0 10 0 . 0 0 0 0 % 40 . 2 1 2 1 % 0.1 3 0 2 % 22 . 0 9 1 0 % 0.1 1 0 2 % 37 . 4 5 6 5 % Co r p o r a t e O p e r a t i o n s ~ E x e c u t i e a n d P l a n n i n g 67 1 0 10 0 . 0 0 0 0 % 42 . 3 5 2 1 % 8.3 4 4 7 % 16 . 4 8 4 5 % 0.8 6 9 1 % 2. 3 5 2 0 % 29 . 5 9 7 5 % Co r p o r a t e O p e r a t i o n s ~ G e n e r a l a n d A d m i n i s t r e 67 2 0 10 0 . 0 0 0 0 % 45 . 2 3 3 4 % 7. 9 2 7 7 % 15 . 6 6 0 6 % 0.8 2 5 6 % 22 3 4 4 % 28 . 1 1 8 2 % Su b t o t a l O p e r a t i o n s E x p e n s e 10 0 . 0 0 0 0 % 44 . 1 8 7 4 % 8. 5 2 8 9 % 15 . 5 4 5 7 % 0.9 6 8 4 % 2. 4 3 4 6 % 28 . 3 3 5 0 % De p r e c i a t o n a n d A m o r t z a t i o n 65 6 0 10 0 . 0 0 0 0 % 45 . 2 4 8 4 % 9. 1 1 9 0 % 14 . 4 9 6 0 % 1.1 8 7 9 % 2. 8 6 0 1 % 27 . 2 8 8 5 % OU t e r Op e r a n g n4 0 10 0 . 0 0 0 0 % 42 . 7 8 6 4 % 9. 4 3 2 6 % 15 . 7 7 0 2 % 0.9 9 3 9 % 2. 6 7 3 8 % 28 . 3 4 3 0 % Eq u a l A c c e s s Fi x e d C h a r g e s 75 0 0 10 0 . 0 0 0 0 % 45 . 5 5 4 1 % 12 . 0 8 9 8 % 15 . 8 3 0 7 % 0.9 1 0 1 % 3. 7 1 4 4 % 21 . 9 0 1 0 % Re n t R e v e n u e 52 4 0 To t a l O p e r a t i n g E x p e n s e a n d T a x 10 0 . 0 0 0 0 % 44 . 1 6 4 7 % 8. 5 4 3 7 % 15 . 5 4 9 4 % 0.9 6 8 8 % 2. 4 3 8 5 % 28 . 3 3 4 9 % No n o p e r a t i n g E x p e n s e 73 7 0 Ab a n d o n e d C o n s t r u c t o n Co n t r i b u t o n s 7J 10 0 . 0 0 0 0 ~ I 43 . 8 2 3 1 % 8.1 3 1 8 ~ 1 :1 :1 16 . 0 6 3 9 % 0. 8 4 6 9 ~ I 2. 2 9 2 0 % 28 . 8 4 2 3 % OU t e r N o n o p e r a t n g All o w a n c e f o r F u n d s U s e d D u r i n g C o n s t r u c t o n 10 0 . 0 0 0 0 % 42 . 1 3 3 9 % 9. 5 4 0 2 % 15 . 9 5 0 1 % 1. 0 0 5 3 % 2. 7 0 4 3 % 28 . 6 6 8 3 % Ote r I n c o m e A d j u s t m e n t s XX Pr o p r i e t a r y I n f o r m a t o n Mo s s A d a m s , L L P 23 0 1 2 3 4/1 3 1 2 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 RE V E N U E R E Q U I R E M E N T S U M M A R Y A- l Stu d y Y e a r : 2 0 0 7 1 IN T E R S T A T E 1 Lo c a l In f o r m a t i o n Eq u a l Tr a n s a r t f~ i -f b i - ",; , - ' i. ' . SW ~ h i n g Di r ( ~ s s t su " ; ~ ~ r g e A~ ~ ~ S S Tra n s m i s s i o n Ta i i d e m - S w LIN E DE S C R I P T I O N SO U R C E i ti 1 N e t T e l e c o m P l a n t A- 2 , L n 4 4 9,0 8 4 , 5 3 7 1,7 3 1 , 4 1 3 40 , 4 0 0 12 4 , 5 3 6 91 8 , 9 9 9 3, 5 6 3 , 1 8 9 2,7 0 6 , 0 0 0 2 R a t e B a s e A d j u s t m e n t # 1 Re c o r d s 3 R A T E B A S E Ln 1 - - 9,0 8 4 , 5 3 7 1,7 3 1 , 4 1 3 40 , 4 0 0 12 4 , 5 3 6 91 8 , 9 9 9 3, 5 6 3 , 1 8 9 2,7 0 6 , 0 0 0 4 R a t e o f Re t u r n Re c o r d s 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % I 11 . 2 5 0 0 % 11 . 2 5 0 0 % I 11 . 2 5 0 0 % 5 R E T U R N O N R A T E B A S E Ln 3 " ' 4 1,0 2 2 , 0 1 0 19 4 , 7 8 4 4, 5 4 5 14 , 0 1 0 10 3 , 3 8 7 40 0 , 8 5 9 30 4 , 4 2 5 6 R e t u r n A d j u s t m e n t # 1 Re c o r d s 7 N E T RE T U R N Ln S o o 1,0 2 2 , 0 1 0 I 19 4 , 7 8 4 4, 5 4 5 14 , 0 1 0 I 10 3 ' 3 8 7 1 :1 :1 40 0 , 8 5 9 :1 30 4 , 4 2 5 8 F i x e d C h a r g e s A- 1 0 , L n 2 5 1n , 6 6 6 29 , 2 4 8 86 0 1,7 7 0 44 , 8 3 0 54 , 2 3 2 41 , 7 2 6 9 A m o r t i z a t i o n o f E x c e s s D e f T a x e s A- 1 0 , L n 4 7 10 C a p i t a l i z d P a y r o l l T a x e s A. 1 0 , L n 5 0 11 D e p r e c i a t i o n A d j u s b n e n t A- 1 0 , L n 5 3 12 F I T A l l o w a n c e s / D i s a l l o w a n c e s A. 1 4 , L n 1 8 13 I n c A d j A l l o c o n 2 0 0 1 A- 1 0 , L n 5 9 14 I n c A d j A l l o c o n B i g 3 E x p A. 1 0 , L n 6 0 15 T o t a l M l s c I n c A d j u s t m e n t A- 1 0 , L n 6 1 17 2 , 6 6 6 29 , 2 4 8 86 0 1,7 7 0 44 , 8 3 0 54 , 2 3 2 41 , 7 2 6 16 A F T E R T A X I N C O M E No t e 1 84 9 , 3 4 4 16 5 , 5 3 6 3, 6 8 5 12 , 2 4 0 58 , 5 5 7 34 6 , 6 2 7 26 2 , 6 9 9 17 S t a I n c o m e T a x Ln 5 9 l e s s I T C 15 , 2 8 7 2, 9 7 9 66 22 0 1,0 5 4 6,2 3 9 4,7 2 8 18 S t a t e I T C A m o r t a t i o n A- 1 0 , L n 4 5 19 N e t F e d e r a l In c o m e T a x Ln 5 0 31 1 , 2 7 9 60 , 6 6 8 1,3 5 0 4,4 8 6 21 , 4 6 1 12 7 , 0 3 7 96 , 2 7 7 20 F e d e r a l l T C A m o r t i z a t i o n A- 1 0 , L n 4 4 21 O p e r a t i n g E x p e n s e s & T a x e s A. s , L n 2 4 4, 1 7 6 , 6 8 8 69 5 , 8 0 9 24 , 7 5 2 33 , 0 9 8 1,0 9 8 , 9 8 4 1, 1 2 4 , 4 5 0 1,0 4 8 , 1 4 6 1 85 , 0 8 7 66 , 3 6 3 22 U n c o l l e c t i b l e s A- 1 0 , L n 5 7 23 O t h e r A d j u s t m e n t s ( N e t R R ) Re c o r d s 24 N E T R E V E N U E R E Q U I R E M E N T Ln 7 + 1 9 . . 2 3 - 2 4 1 5,5 2 5 , 2 6 : 1 95 4 , 2 4 1 30 , 7 1 3 51 , 9 1 : 1 1,2 2 4 , 8 8 : I :1 :1 1,6 5 8 , 5 8 4 :1 1,4 5 3 , 5 7 6 1 85 , 0 8 7 66 , 3 6 3 25 G r o s s R e c e i p t T a x No t e 2 26 7 3 4 0 A I w F d s U s e d D u r C o n s t r A. 1 0 , L n 1 5 7,1 4 4 1,2 1 0 36 73 1, 8 5 5 2,2 4 4 1,7 2 7 27 S U B T O T A L R E V E N U E R E Q U I R E M E N T Ln 2 4 + 2 5 . 2 6 28 L o c a l S w i t c h i n g S u p p o r t LS S A l g o r i t h m 29 6 5 4 0 A c c e s s E x p e n s e - F e d e r a l S u p p o r t A- 1 2 , L n 2 2 30 A d j u s t e d R e v e n u e R e q u i r e m e n t x l L S S & 6 5 4 0 Ln 2 7 . 2 8 - 2 9 31 T r a n s f e r 3 0 % o f L o c a l S w R e v R e q t o C L Ln 3 0 e * 3 0 % 32 I n t e r s t a t e T I C R e v e n u e s Re c o r d s 33 R e v l s e d R e v R e q p r i o r t o T I C R e a U o c a t i o n Ln 3 0 + 3 1 + 3 2 34 D i s t r i b u t i o n Ln 3 3 f 3 3 a 35 I n t e r s t a t e T I C R e a l l o c a t i o n Ln 3 2 a * 3 4 36 T O T A L R E V E N U E R E Q U I R E M E N T Ln 2 7 + 3 1 - 3 2 + 3 5 55 1 8 , 1 2 1 1,0 0 2 , 1 8 0 32 , 2 6 0 54 , 4 1 0 I 1,1 3 2 , 2 4 6 1 -I -I _ _ 1 , 5 1 4 , 1 0 7 -I 1, 6 3 1 , 4 6 8 1 _6 5 , 0 8 7 66 . 3 6 3 I IN C O M E T A X E S I 37 N e t R e t u r n Ln 7 1,0 2 2 , 0 1 0 19 4 , 7 8 4 4, 5 4 5 14 , 0 1 0 I 10 3 ' 3 8 7 1 :1 :1 40 0 , 8 5 9 :1 30 4 , 4 2 5 38 F i x e d C h a r g e s Ln 8 17 2 , 6 6 6 29 , 2 4 8 86 0 1,7 7 0 44 , 8 3 0 54 , 2 3 2 41 , 7 2 6 39 A m o r t i z a o n o f E x c e s s D e f e r r e d T a x e s Ln 9 40 C a p i t l i z e d P a y r o l l T a x e s Ln 1 0 41 D e p r e i a t i o n A d j u s t m e n t Ln 1 1 42 F I T A l I o w n c e s l D l s a n o w a n c e s Ln 1 2 43 In c A d J A l l o c o n 2 0 0 1 Ln 1 3 44 In c A d j A 1 l o c o n B i g 3 E x p Ln 1 4 45 F e d e r a l l T C A m o r t i z a t i o n A-1 0 , L n 4 4 46 To t a l In c o m e A d j u s b n e n t s Ln 3 8 + 4 2 . . 4 4 17 2 , 6 6 6 29 , 2 4 8 86 0 1,7 7 0 44 , 8 3 0 54 , 2 3 2 41 , 7 2 6 47 F e d e r a l T a x a b l e I n o o m e Lo 3 7 4 6 G r o s s U p 1,1 6 0 , 6 2 4 22 6 , 2 0 5 5,0 3 5 16 , 7 2 6 80 , 0 1 8 47 3 , 6 6 4 35 8 , 9 7 6 48 F e d e r a l In c o m e T a x 26 . 8 2 0 0 % 31 1 , 2 7 9 60 , 6 6 8 1,3 5 0 4, 4 8 6 21 , 4 6 1 12 7 , 0 3 7 96 , 2 7 7 49 F e d e r a l S u r - T a x A l l o c a t i o n Re c o r d s 50 N e t F e d e r a l In c o m e T a x Ln 4 8 4 9 31 1 , 2 7 9 60 , 6 6 8 1,3 5 0 4, 4 8 6 21 , 4 6 1 12 7 , 0 3 7 96 , 2 7 7 51 N e t R e t u r n Ln 3 7 1, 0 2 2 , 0 1 0 19 4 , 7 8 4 4,5 4 5 14 , 0 1 0 10 3 , 3 8 7 40 0 , 8 5 9 30 4 , 4 2 5 52 F i x e d C h a r g e s Ln 3 8 17 2 , 6 6 6 29 , 2 4 8 86 0 1,7 7 0 44 , 8 3 0 54 , 2 3 2 41 , 7 2 6 53 O t h e r S I T A d j u s t m e n t s 54 F e d e r a l In c o m e T a x Ln 4 8 31 1 , 2 7 9 60 , 6 6 8 1,3 5 0 4,4 6 6 21 , 4 6 1 12 7 , 0 3 7 96 , 2 7 7 55 S t a t e T a x a b l e I n c o m e Ln 5 1 - 5 4 G r o s s U p 1, 1 7 5 , 9 1 1 22 9 , 1 8 4 5,1 0 1 16 , 9 4 7 81 , 0 7 2 47 9 , 9 0 3 36 3 , 7 0 5 56 S t a t e I n c o m e T a x 1.3 0 0 0 % 15 , 2 8 7 2,9 7 9 66 22 0 1,0 5 4 6, 2 3 9 4,7 2 8 57 S t a t e S u r - T a x A l l o c a t i o n Re c o r d s 58 S t a t e I T C A m o r t i z a t i o n A.1 0 , L n 4 5 59 N e t S t a t e I n c o m e T a x Ln 5 6 - 5 7 I 15 . 2 8 7 1 2.9 7 9 66 22 0 1 1.0 5 4 1 -I -I 6, 2 3 9 -I 4.7 2 8 No t e 1 : L o 7 + 1 2 . . 1 6 . 8 . . 1 1 No t e 2 : B a s e d o n t h s e S t a t u t o r y R a t e s : Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o n n a t i o n 1 of 26 41 1 3 1 0 0 9 Al b l o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 SE P A R A T E D T E L E C O M M U N I C A T I O N S P L A N T S U M M A R Y A- 2 Pa g e 1 o f 2 IN T E R S T A T E JU R I S S e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s p o r t Ca r r i e r C o m m o n L i n e B& C In t e r - T~ ~ t L Ch a ~ b ~ e r m CM ; ; , . r m CM , : , a c i l SW ~ ~ l n g Dir / : s s t Su ~ ~ ~ r g e Ac c e s s Tr a n s m i s s i o n Ta n d e m S w Pa y BF P Re c o r d Pr o c e s s ex c h a n g e LI N E DE S C R I P T I O N SO U R C E h I II ,¡ I 'm ' n' /0 ' 12 1 1 0 L a n d & Su p p o r t Ass e t s A4 , L n 1 2 1, 4 6 1 , 6 4 7 24 7 , 5 8 8 7,2 8 4 14 , 9 8 4 37 9 , 4 9 8 45 9 , 0 7 9 35 3 , 2 1 9 2 2 2 1 0 C O E . . w i l c h i n g A.. , L n 2 8 4,8 5 9 , 2 8 4 - 4,8 5 9 , 2 8 4 3 2 2 2 0 C O E - o p e r a t o r A-5 , L n 1 5 - - 4 2 2 3 0 C O E . T r a n s m i s s i o n A-5 . L n 7 1 3,8 3 8 , 1 3 5 1,5 1 1 , 5 7 4 93 , 2 6 5 1,1 6 9 , 1 4 5 1,0 6 4 , 1 5 1 - 5 2 3 1 0 I n f o O r i g / e r m E q u i p A-8 . L n 1 4 - 62 4 1 0 C & W F A-7 , L n 3 9 10 , 0 1 8 , 3 4 5 1,6 5 8 , 6 5 2 19 1 , 8 5 7 4, 7 0 9 , 1 6 9 3, 4 5 8 , 6 6 6 7 To t a l C O E , l O T , C & W F Ln 2 . . 6 18 , 7 1 5 , 7 6 4 3,1 7 0 , 2 2 6 93 , 2 6 5 19 1 , 8 5 7 4,8 5 9 , 2 8 4 - 5,8 7 8 , 3 1 5 - 4,5 2 2 , 8 1 7 6 Dis t r i b u t i o n o f L i n e 7 Ln 7 J 7 a 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0. 4 9 8 3 % 1. 0 2 5 1 % 25 . 9 6 3 6 % - 31 , 4 0 8 4 % - 24 . 1 6 5 8 % 9 E q u a l A c c e s s - I n v e s t m e n t A.Q , L n 2 0 10 2 6 8 0 T a n g i b l e A s s e t s A-6 , L n 3 0 - - 11 T E L E C O M P L T I N S V C - E C L 2 6 9 0 Ln 1 + 7 + 9 + 1 0 20 , 1 7 7 , 4 1 2 3,4 1 7 , 8 1 2 10 0 , 5 4 8 20 6 , 8 4 1 5,2 3 8 , 7 8 0 - 6, 3 3 7 , 3 9 4 4,8 7 6 , 0 3 6 12 D i s t r i b u t i o n o f Lin e 1 1 Ln 1 1 / 1 1 a 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1. 0 2 5 1 % 25 . 9 6 3 6 % - 31 . 4 0 8 4 % 24 . 1 6 5 8 % 13 2 6 9 0 I n t a n g i b l e A s s e t s A-B , L n 3 4 - 14 2 0 0 1 T E L E C O M P L A N T I N S V C Ln 1 1 + 1 3 20 , 1 7 7 , 4 1 2 3,4 1 7 , 8 1 2 10 0 , 5 4 8 20 6 , 8 4 1 5,2 3 8 , 7 8 0 6, 3 3 7 , 3 9 4 4,8 7 6 , 0 3 6 15 D i s t r i b u t o n o f L i n e 1 4 Ln 1 4 / 1 4 a 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0,4 9 8 3 % 1. 0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % 16 2 0 0 P r o p H i d F u t T e l e c o m U s e A.. , L n 5 - 17 2 0 0 3 P l a n t U n d e r C o n s t A.e , L n 9 10 6 , 2 1 7 17 , 9 9 2 52 9 1,0 8 9 27 , 5 7 8 33 , 3 6 1 25 , 6 6 6 - - 18 2 0 0 5 T e l e c o m P l a n t A d j u s t m e n t A.e , L n 1 3 19 T O T A L T E L E C O M P L A N T Ln 1 4 + 1 6 . . 1 8 20 , 2 6 3 , 6 2 8 3,4 3 5 , 8 0 4 10 1 , 0 7 8 20 7 , 9 3 0 5,2 6 6 , 3 5 8 6,3 7 0 , 7 5 5 4,9 0 1 , 7 0 4 20 1 2 2 0 M a t r i a l s a n d S u p p l i e s A.e , L n 1 8 10 7 , 1 7 4 18 , 1 5 4 53 4 1,0 9 9 27 , 8 2 6 - 33 , 6 6 2 25 , 8 9 9 21 1 5 0 0 o t e r J u r i s A s s e t s - e t A-1 5 , L n 1 1 - - - 22 3 1 0 0 A c c u m u l a t e d D e p r e c i a t i o n A-1 5 , L n 1 8 11 , 1 5 6 , 3 9 1 1,6 9 7 , 1 5 7 60 , 4 6 5 82 , 9 5 6 4, 3 3 6 , 2 7 3 - - 2,7 9 4 , 1 5 4 - 2,1 8 5 , 3 8 5 23 E q u a l A c c e s s - A c c u m D e p r e c i a t i o n A.. , L n 2 2 - 24 3 2 0 0 A c e D e p - H l d f o r F u t U s e A-1 5 , L n 2 0 - - - 25 3 4 0 0 A c c u m A m o r t - T a n g i b l e A-1 5 , L n 2 4 - 26 3 5 0 0 A c c u m A m o r t . . n t a n g i b l e A- 1 5 , L n 2 5 - - 27 3 8 0 0 A c c u m A m o r t - D t h e r A-1 5 , L n 2 6 28 4 1 0 0 N e t C u r D e f O p I n c T a x e s A- 1 5 , L n 4 7 - 29 4 3 4 0 N o n c u r D e f O p e r I n c T a x A- 1 5 , L n 5 8 30 1 , 4 7 3 51 , 0 6 6 1,5 0 2 3, 0 9 0 78 , 2 7 3 - 94 , 6 8 8 72 , 8 5 3 30 E q u a l A c c e s s - D e f e r r e d O p e r I n c T a x e s A-- , L n 2 3 31 4 3 6 0 o t h e r D e f e r r e d C r e d i t s - N e t A-1 5 , L n 5 9 - - 32 4 3 7 0 o t h e r J u r U a b & D e f C r e d i t s . N e t A- 1 5 , L n 6 1 - - - 33 N E T T E L E C O M P L A N T Ln 1 9 + 2 D - 2 1 . . 3 2 8,9 3 2 , 9 3 8 1,7 0 5 , 7 3 4 39 , 6 4 4 12 2 , 9 8 2 87 9 , 6 3 8 3,5 1 5 , 5 7 4 2,6 6 9 , 3 6 5 - 34 D i s t r i b u t i o n o f L i n e 3 3 Ln 3 3 / 3 3 e 10 0 . 0 0 0 0 % 19 . 0 9 4 9 % 0.4 4 3 8 % 1.3 7 6 7 % 9.8 4 7 1 % 39 . 3 5 5 2 % 29 . 8 8 2 3 % - 35 1 4 0 2 R u r a l T e l B a n k S t o c k A-9 , L n 1 5 - - 36 C a s h W o r k i n g C a p i t a l A-9 . L n 1 9 25 3 , 9 9 7 43 , 0 2 4 1,2 6 6 2, 6 0 4 65 , 9 4 7 - 79 , 7 7 6 61 , 3 8 1 37 E q u a l A c c e s s . U n a m o r t e d E x p e n s e s A-9 , L n 2 4 - 38 I n v e s t A l I o w l D i s a l l o w a n c e s A.. . L n 2 9 - 39 A c c u m D e p r / A m o r t A l l o w / D i s e l l o w A-1 5 , L n 6 4 - - - 40 4 0 4 0 C u s t o m e r D e p o s i t A-1 5 , L n 2 9 3, 4 9 9 59 3 17 36 90 8 - 1,0 9 9 84 5 41 4 3 1 0 o t h e r L o n g - T e r m L i a b i l t i e s A-1 5 , L n 4 9 98 , 9 0 0 16 , 7 5 2 49 3 1,0 1 4 25 , 6 7 8 31 , 0 6 3 - 23 , 9 0 0 42 o t h e r T e l e c o m P I A d j u s t Re c o r d s - - - 43 N E T T E L E C O M P L A N T A N D Ln 3 3 + 3 5 . . 3 9 + 4 2 44 OT H E R R A T E B A S E I T E M S -4 0 . . 4 1 9,0 8 4 , 5 3 7 1,7 3 1 , 4 1 3 40 , 4 0 0 12 4 , 5 3 6 91 8 , 9 9 9 - 3, 5 6 3 , 1 8 9 2.7 0 6 , 0 0 0 45 Dis t r i b u t i o n o f L i n e 4 4 Ln 4 4 / 4 4 a 10 0 . 0 0 0 0 % 19 . 0 5 8 9 % 0. 4 4 7 % 1.3 7 0 9 % 10 . 1 1 6 1 % - 39 . 2 2 2 6 % - 29 . 7 8 6 9 % Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o r m a t i o n 20 f 2 6 Alb i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 LI N E DE S C R I P T I O N 46 2 0 0 1 T E L E C O M P L A N T I N S V C 47 E q u a l A c c e s s A d j u s t m e n t 48 2 0 0 1 T E L E C O M P L A N T I N S V C ( E A L S ) 49 D i s t r i b u t i o n o f U n e 4 8 50 G S F , C O E , I O T , C & W F , G r o s s E q A c s 51 E q u a l A c c e s s A d j u s t m e n t 52 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 53 D i s t r i b u t i o n o f L i n e 5 2 54 G S F , C O E , I O T , C & W F , G r o s s E q A c s 55 D i s t r i b u t i o n o f L i n e 5 4 56 C O E , I O T , C & W F , G r o s s E q A c s 57 E q u a l A c c e s s l n v e s b ' e n t 58 C O E , I O T , C & W F , E q A c s 59 D i s t r i b u t i o n o f L i n e 5 8 60 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 61 ( T r a n s , S w i h , C C L o n l y ) 62 D i s t r i b u t i o n o f L i n e 6 1 63 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 64 ( S p e c i a l A c c e s s o n l y ) 65 D i s t r i b u t i o n o f L i n e 6 4 66 C O E , I O T , C & W F 67 x l C C l , B & C , 1 X 68 D i s t r i b u t i o n o f L i n e 6 7 69 C O E S w i t h i n g I n v e s t m e n t 70 E q u a l A c c e s s I n v e s t m e n t 71 C O E S w i t c h i n g , E q u a l A c c e s s I n v e s t m e n t 72 D i s t r i b u t i o n o f U n e 7 1 73 C & W F C a t 1 . 3 74 D i r e c t A s s l g n - M S G ( 1 . 3 ) 75 C O E . l O T , C & W F x l C a t 1 . 3 76 D i s t r i b u t i o n o f L i n e 7 5 SO U R C E Ln 1 4 No t e 1 Ln 4 6 + 4 7 Ln 4 8 1 4 8 a Ln 1 + 7 + A - 9 L n 2 9 No t e 1 Ln 5 0 + 5 1 Ln 5 2 1 5 2 a Ln 1 + 7 + A - 9 L n 2 9 Ln 5 4 1 5 4 a A-2 , L n 7 A-2 , L n 9 Ln 5 6 + 5 7 Ln 5 8 / 5 S a Li 5 2 Ln 6 1 / 6 1 a Ln 5 2 Ln 6 4 f 6 4 a Ln 7 Ln 6 7 f 6 7 a A- 5 , L n 2 8 A- 9 , l n 2 1 Ln 6 9 + 7 0 Ln 7 1 / 7 1 a A- 7 , L n B A- 7 , L n 7 Ln 7 - 7 3 . . 7 4 Ln 7 5 J 7 5 a No t e 1: Eq u a l A c c e s s t r a n s f e r r d t o L o c a l S w i t c h i n g f o r d i s t r i b u t i o n Pro p r i e a r y I n f o n n a t i o n 4/1 3 / 2 0 0 9 SE P A R A T E D T E L E C O M M U N I C A T I O N S P L A N T S U M M A R Y A- 2 Pa g e 2 o f 2 Lo c a l In f o r m a t i o n Eq u a l Sw i t c h i n g Di r A s s t Su r c h a r g e Ac c e s s . f fa ) fh 5,2 3 8 , 7 8 0 5,2 3 8 , 7 8 0 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 20 , 1 7 7 , 4 1 2 3,4 1 7 , 8 1 2 10 0 , 5 4 8 20 8 , 8 4 1 5,2 3 8 , 7 8 0 20 , 1 7 7 , 4 1 2 3,4 1 7 , 8 1 2 10 0 , 5 4 8 20 8 , 8 4 1 5,2 3 8 , 7 8 0 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 20 , 1 7 7 , 4 1 2 3,4 1 7 , 8 1 2 10 0 , 5 4 8 20 6 , 8 4 1 5,2 3 8 , 7 8 0 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 , 9 6 3 6 % 18 , 7 1 5 , 7 6 4 3,1 7 0 , 2 2 6 93 , 2 6 5 19 1 8 5 7 4, 8 5 9 , 2 8 4 93 , 2 6 5 19 1 , 8 5 7 4, 8 5 9 , 2 8 4 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 3,7 2 5 , 2 0 1 10 0 , 0 0 0 0 % 3, 4 1 7 , 8 1 2 91 . 7 4 8 4 % 14 , 1 9 2 , 9 4 7 10 0 , 0 0 0 0 % 3, 1 7 0 , 2 2 6 22 . 3 3 6 6 % 4, 8 5 9 , 2 8 4 4, 8 5 9 , 2 8 4 10 0 , 0 0 0 0 % 3,4 5 8 , 6 6 6 15 , 2 5 7 , 0 9 8 10 0 . 0 0 0 0 % 3, 1 7 0 , 2 2 6 20 . 7 7 8 7 % Pro c e s s n B& C In t e r - ex c h a n g e o 6,3 3 7 , 3 9 4 6,3 3 7 , 3 9 4 31 . 4 0 8 4 % 4,8 7 6 , 0 3 6 24 . 1 6 5 8 % 6,3 3 7 , 3 9 4 4,8 7 6 , 0 3 6 6,3 3 7 , 3 9 4 31 . 4 0 8 4 % 4,8 7 6 , 0 3 6 24 . 1 6 5 8 % 6,3 3 7 , 3 9 4 31 . 4 0 8 4 % 4,8 7 6 , 0 3 6 24 . 1 6 5 8 % 5,8 7 8 , 3 1 5 4,5 2 2 , 8 1 7 5,8 7 8 , 3 1 5 31 . 4 0 8 4 % 4,5 2 2 , 8 1 7 24 . 1 6 5 8 % 10 0 , 5 4 8 2.6 9 9 1 % 93 , 2 6 5 0.6 5 7 1 % 93 , 2 6 5 0.6 1 1 3 % Mo s s A d a m s , L l P 30 f 2 6 4/1 3 1 0 0 9 Alb i o n T e l e p h o n e Co m p a n y St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 7 SE P A R A T E D E X P E N S E S U M M A R Y A. . IN T R S T A T E JU R I S S e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s o r t Ca r r i e r C o m m o n L i n e S& C In t e r - T~ : t L Ch a ~ b ; e r m CM ; ~ l e r m CM , - . a c i l sw ~ : ~ i n g Oir f ~ s t Su r ~ ~ ~ r g e A~ ~ e s s Tr a n s m i s s i o n Ta n d e m S w Pa y SF P Re c o r d Pr o c e s s ex c h a n g e LI N E DE S C R I P T I O N SO U R C E fi fi k '" m n . 1 P i t S p e c E x p A c c t s 6 1 1 0 , 6 1 2 0 2 62 1 0 , 6 2 2 0 . 6 2 3 0 , 6 3 1 0 , 6 4 1 0 A- 1 1 , L n 3 2 1,2 6 8 , 2 9 0 23 9 , 1 2 6 8,3 6 4 11 , 9 8 1 29 8 , 5 0 8 39 8 , 9 0 7 31 1 , 4 0 4 - 3 P I N o n s p e c A c c o u n t 6 5 1 0 , 6 5 3 0 , 6 5 4 0 A- 1 2 , L n 2 4 33 6 , 3 6 1 44 , 5 5 4 1, 3 1 1 2,6 9 6 88 , 2 9 2 82 , 6 1 4 13 6 , 8 9 4 - 4 C u s t O p e r A c c t s 6 6 1 0 , 6 6 2 0 A- 1 3 . L n 5 5 16 8 . 1 8 9 9,3 3 6 10 9 22 5 6,6 5 9 8,0 5 5 - 43 , 7 0 6 56 , 2 3 7 43 , 8 6 2 5 T O T A L B I G T H R E E E X P E N S E S Ln 2 . . 4 1, 7 7 2 , 8 4 0 29 3 , 0 1 6 9,7 8 4 14 , 9 0 2 37 3 , 4 6 0 48 9 , 5 7 7 - 49 2 , 0 0 4 56 , 2 3 7 43 , 8 6 2 6 D i s t r i b u t i o n o f L i n e 5 Ln S / 5 a 10 0 . 0 0 0 0 % 16 . 5 2 8 0 % 0. 5 5 1 9 % 0. 8 4 0 5 % 21 . 0 6 5 6 % 27 . 6 1 5 4 % - 27 . 7 5 2 3 % 3.1 7 2 2 % 2.4 7 4 1 % 7 P i t Sp e c E x p A c c t s x / 1 1 0 , 6 1 2 0 A- 1 1 , L n 3 1 1, 0 9 3 , 0 7 1 20 9 , 4 4 6 7,4 9 0 10 , 1 8 4 25 3 , 0 1 5 - 34 3 , 8 7 4 26 9 , 0 6 1 - 8 P I N o n s p e c A c c o u n t 6 5 1 0 , 6 5 3 0 , 6 5 4 0 A- 1 2 , L n 2 4 33 6 , 3 6 1 44 , 5 5 4 1,3 1 1 2,6 9 6 68 , 2 9 2 - 82 , 6 1 4 13 6 , 8 9 4 - 9 C u s t O p e r A c c t s 6 6 1 0 , 6 6 2 0 x f a m o u n t s 10 all o c a t e d o n G S F A- 1 3 , L n 5 4 14 6 , 4 5 4 7,2 5 3 58 11 8 2,9 9 8 - 3,6 2 7 38 , 1 1 9 52 , 9 6 9 41 . 3 1 3 11 T O T A L M O D I F I E D B I G T H R E E E X P E N S E S Ln 7 . . 1 0 1, 5 7 5 , 8 8 7 26 1 , 2 5 3 8,8 5 9 12 . 9 9 9 32 4 , 3 0 6 43 0 , 1 1 5 44 4 , 0 7 4 52 , 9 6 9 41 . 3 1 3 12 D i s t r i b u t i o n o f Lin e 1 1 Ln 1 1 1 1 1 a 10 0 . 0 0 0 0 % 16 . 5 7 8 2 % 0.5 6 2 1 % 0.8 2 4 9 % 20 . 5 7 9 3 % - - 27 . 2 9 3 5 % - 28 . 1 7 9 3 % 3.3 6 1 2 % 2.6 2 1 5 % 13 P l a n t S p e c i f i c E x p e n s e s A- 1 1 , L n 3 2 1, 2 6 8 , 2 9 0 23 9 , 1 2 6 8,3 6 4 11 , 9 8 1 29 8 , 5 0 8 39 8 , 9 0 7 - 31 1 , 4 0 4 - 14 P l a n t N o n s p e c i f i c E x p e n s e s A- 1 2 , L n 3 8 1, 7 5 3 , 7 4 6 28 3 , 9 8 8 10 , 8 7 6 12 , 4 5 9 58 2 , 2 4 0 44 2 , 1 5 1 42 2 , 0 3 1 - 15 C u s t o m e r O p e r a t i o n s E x p e n s e s A- 1 3 , L n 5 5 16 8 , 1 8 9 9,3 3 6 10 9 22 5 6, 6 5 9 8,0 5 5 43 , 7 0 6 56 , 2 3 7 43 , 8 6 2 - 16 C o r p o r a e O p e r a t i o n s E x p e n s e s A- 1 4 , L n 1 2 90 9 , 4 6 6 15 0 , 3 1 7 5,0 1 9 7,6 4 4 19 1 , 5 8 5 25 1 , 1 5 2 25 2 , 3 9 8 28 , 8 5 0 22 , 5 0 1 - 17 7 1 0 0 O t h O p e r I n c & E x p e n s e s A- 1 0 , L n 1 7 + 1 8 - 18 7 3 0 0 C o n t r i b u t i o n s A- 1 0 , L n 1 6 9,5 7 9 1,6 2 3 48 98 2, 4 8 7 3, 0 0 9 2,3 1 5 - 19 T O T A L O P E R A T I N G E X P E N S E S Ln 1 3 . . 1 8 4,1 0 9 , 2 7 0 68 4 , 3 8 9 24 , 4 1 6 32 , 4 0 7 1,0 8 1 , 4 7 9 1,1 0 3 , 2 7 5 - 1,0 3 1 , 8 5 3 85 , 0 8 7 66 , 3 6 3 20 O p e r a t i n g T a x e s A- 1 4 . L n 2 2 67 , 2 8 7 11 , 3 9 8 33 5 69 0 17 , 4 7 0 21 , 1 3 4 16 . 2 6 1 21 E q u a l A c c e s s E x p e n s e s A- 1 4 , L n 3 0 - - 22 E x p e n s e A l f o w / D i s a l l o w a n c e s A- 1 4 , L n 3 5 13 1 22 1 1 34 - 41 32 23 5 2 4 0 R e n t R e v e n u e s A- 1 0 , L n 4 3 - - - 24 T O T A L O P E R A T I N G E X P & T A X E S Ln 1 9 + 2 0 . . 2 2 - 2 3 4,1 7 6 , 6 8 8 69 5 , 8 0 9 24 , 7 5 2 33 , 0 9 8 1,0 9 8 , 9 8 4 - 1,1 2 4 , 4 5 0 - 1,0 4 8 , 1 4 6 85 , 0 8 7 66 , 3 6 3 25 D i s t r i b u t i o n o f L i n e 2 4 Ln 2 4 1 2 4 a 10 0 . 0 0 0 0 % 16 . 6 5 9 4 % 0.5 9 2 6 % 0.7 9 2 4 % 26 . 3 1 2 3 % 26 . 9 2 2 0 % - 25 . 0 9 5 1 % 2. 0 3 7 2 % 1.5 8 8 9 % - I IN C O M E T A X C A L C U L A T I O N I 26 O t h e r O p e r a t i n g I n c o m e A-1 4 , L n 2 8 - 27 A F U D C A-1 0 , L n 1 5 7,1 4 4 1,2 1 0 36 73 1,8 5 5 2,2 4 4 1,7 2 7 - 28 O p e r a t i n g R e v e n u e A-1 4 , L n 2 9 - L n 2 6 5,0 8 6 , 1 3 2 13 3 2 3 1,6 1 8 , 8 7 7 1,9 5 8 , 3 6 8 1. 5 0 7 , 3 1 8 80 4 62 7 29 U n c o l l e c t i b l e R e v e n u e A-1 0 , L n 5 7 30 I n c o m e E f f c t J u r i s d i c t i o n a l D i f f r e n c e A-1 0 , L n 5 9 - - 31 I R S I n c o m e A d j u s t m e n t A-1 0 , L n 6 0 - - 32 T O T A L R E V E N U E & O T H E R I N C O M E Ln 2 6 . . 3 1 5,0 9 3 , 2 7 6 1,3 4 4 37 76 1,6 2 0 , 7 3 2 1,9 6 0 , 6 1 2 1.5 0 9 , 0 4 80 4 62 7 33 C o n t r i b u t i o n s A-1 0 , L n 1 6 9,5 7 9 1.6 2 3 48 98 2, 4 8 7 3, 0 0 9 2,3 1 5 - - 34 O p e r a t i n g E x p e n s e s Ln 1 9 - L n 3 3 4,0 9 9 , 6 9 1 68 2 , 7 6 7 24 , 3 6 8 32 , 3 0 9 1,0 7 8 , 9 9 2 1,1 0 0 , 2 6 6 1,0 2 9 , 5 3 9 85 , 0 8 7 66 , 3 6 3 - 35 O p e r a t i n g T a x e s A-1 4 , L n 2 2 67 , 2 8 7 11 , 3 9 8 33 5 69 0 17 , 4 7 0 - - 21 , 1 3 4 16 , 2 6 1 - - 36 F i x e d C h a r g e s A- 1 0 , L n 2 5 17 2 , 6 6 6 29 , 2 4 8 86 0 1,7 7 0 44 , 6 3 0 - 54 , 2 3 2 - 41 , 7 2 6 37 T O T A L O P E R A T I N G E X P E N S E S Ln 3 3 . . 3 6 4,3 4 9 , 2 2 3 72 5 , 0 3 5 25 , 6 1 2 34 , 8 6 7 1,1 4 3 , 7 8 0 - 1,1 7 8 , 6 4 0 - 1,0 8 9 , 8 4 0 85 , 0 8 7 66 , 3 6 3 - 38 S t a t e T a x a b l e I n c o m e Ln 3 2 - L n 3 7 74 4 , 0 5 3 (7 2 3 , 6 9 1 ) (2 5 , 5 7 4 ) (3 4 , 7 9 0 ) 47 6 , 9 5 2 - - 78 1 , 9 7 1 - 41 9 , 2 0 5 (6 4 , 2 6 3 ) (6 5 , 7 3 6 ) 39 S t a t e I n c o m e T a x 1.0 0 0 % 9,6 7 3 (9 , 4 0 8 ) (3 3 2 ) (4 5 2 ) 6, 2 0 0 10 , 1 6 6 5,4 5 0 (1 , 0 9 6 ) (8 5 5 ) 40 F e d e r a l T a x a b l e I n c o m e Ln 3 2 - L n 3 7 74 4 , 0 5 3 (7 2 3 , 6 9 1 ) (2 5 , 5 7 4 ) (3 4 , 7 9 0 ) 47 6 , 9 5 2 - - 76 1 , 9 7 1 41 9 , 2 0 5 (6 4 , 2 6 3 ) (6 5 , 7 3 6 ) 41 S t a t e I n c o m e T a x Ln 3 9 9,6 7 3 (9 , 4 0 8 ) (3 3 2 ) (4 5 2 ) 6, 2 0 0 - 10 , 1 6 6 5,4 5 0 (1 , 0 9 6 ) (8 5 5 ) 42 N e t F e d e r a l T a x a b l e I n c o m e Ln 4 D - L n 4 1 73 4 , 3 8 1 (7 1 4 , 2 6 3 ) (2 5 , 2 4 2 ) (3 4 , 3 3 8 ) 47 0 , 7 5 1 n1 , 8 0 6 41 3 , 7 5 5 (6 3 , 1 6 8 ) (6 4 , 8 8 1 ) 43 F e d e r a l In c o m e T a x 26 . 8 2 0 0 % 19 6 , 9 6 1 (1 9 1 , 5 7 1 ) (6 , 7 7 0 ) (9 , 2 0 9 ) 12 6 , 2 5 6 20 6 , 9 9 8 11 D , 9 6 9 (2 2 , 3 1 1 ) (1 7 , 4 0 1 ) 44 A m o r t i z a t i o n o f I n v e s t m e n t T a x C r e d i t A- 1 0 , L n 4 4 19 1 5 7 ; 1 67 7 ~ \ - - 45 F e d e r a l In c o m e T a x Ln 4 3 - L n 4 4 19 6 9 6 1 92 0 9 12 6 2 5 6 20 6 9 9 6 11 0 9 6 9 '2 2 3 1 1 ' '1 7 4 0 1 Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o r m a t i o n 4 of 26 Alb I o n T e l e p h o n e C o m p a n y St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 7 IN T E R S T A T E JU R I S S e c i a l A c c e s s Lo c a l 1 TO T A L Ch a n T e r m CM - T e r m CM . F a c i l Sw i t h i n g LI N E DE S C R I P T I O N SO U R C E 0\ Ib l le I d . AP P O R T I O N M E N T F A C T O R S l 1 C O E , l O T , C & W F D i s t r A- 2 , L n 8 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0. 4 9 8 3 % 1.0 2 5 1 % 25 . 0 0 3 6 % 2 M o d i f i e d B i T h r e e E x p e n s e s D i s t r A- 3 L n 1 2 10 0 . 0 0 0 0 % 16 . 5 7 8 2 % 0. 5 6 2 1 % 0. 8 2 4 9 % 20 . 5 7 9 3 % LA N D & S U P T A S S E T S A P P O R T I O N M E N T 32 1 1 0 L a n d & S u p p o r t As s e t s 4 Su p p o r t A s s e t w o i n t x / G S F . B & C Ln 4 a * 1 1 1,4 6 1 , 6 4 7 1 24 7 , 5 6 6 7,2 8 4 14 , 9 8 4 1 37 9 , 4 9 6 5 Ge n e r a l S u p p o r t F a c i l i t i e s - S & C DI r e c t 6 Dir e c t A s s i g n m e n t Ln 6 a * 1 7 To t l S u p p o r t As s e t s Ln 4 . . 6 1 1. 4 6 1 , 6 4 7 1 24 7 , 5 8 6 7,2 8 4 14 , 9 8 4 1 37 9 , 4 9 6 8 Dis t r i b u t o n o f L i n e 7 Ln 7 1 7 a 10 0 . 0 0 0 0 % 18 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % . 25 . 9 6 3 6 % 9 La n d A s s e t s - J o i n t Ln 9 a * 1 10 Dir e c t A s s i g n m e n t Ln 1 0 a * 1 11 To t a l L a n d A s s e t s Ln 9 . . 1 0 12 T O T A L L A N D & S U P P O R T A S S E T S Ln 7 + 1 1 1 1, 4 6 1 , 6 4 7 1 24 7 , 5 8 6 7,2 8 4 14 , 9 8 4 1 37 9 , 4 9 6 13 D i s t r i b u t i o n o f L i n e 1 2 Ln 1 2 1 1 2 a 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1. 0 2 5 1 % 25 . 9 6 3 6 % GE N E R A L S U P P O R T F A C I L I T I E S 41 1 3 1 2 0 0 9 A-4 31 . 4 0 8 4 % 27 . 2 9 3 5 % 24 . 1 6 5 8 % 28 . 1 7 9 3 % 3.3 6 1 2 % 2.6 2 1 5 % Pr o p r i e t a r y I n f o r m a t i o n ~o s s A d a m s , L L P 45 9 , 0 7 9 45 9 , 0 7 9 31 . 4 0 8 4 % 45 9 , 0 7 9 31 . 4 0 8 4 % 35 3 , 2 1 9 35 3 , 2 1 9 24 . 1 6 5 8 % 35 3 , 2 1 9 24 . 1 6 5 8 % 50 f 2 6 Alb i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 SO U R C E 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % LI N E A.1 6 , L n 3 A- 1 6 . L n 5 IN T E R S T A T E JU R I S TO T A L 4/1 3 1 0 0 9 CE N T R A L O F F I C E E Q U I P M E N T A-5 Pa g e 1 o f 3 In t e r - ex c h a n g e o 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % Ln 5 a " 1 3 2 2 2 0 4 C a t 1 - D p e r a õ r S y s t e m s 5 M a n u a l S w i t c h l b o a r d s 6 A u x i l a r y S w i h b o a r d s 7 I n t e r c e p t 8 D i r e c t r y A s s i s t a n c e 9 S v c O b s B o a r d s 10 T S P S 11 O p e r a t o r 12 R T A 13 O U l e r 14 D i r e c t A s s i g n m e n t 15 T o t a l Ca t 1 16 D i s t r i b u t i o n o f L i n e 1 5 Di r e c t Di r e c t Ln 9 a ~ 1 Ln 1 1 a " 2 Ln 1 2 a " 3 1 Ln 1 3 a " 3 1 Ln 1 4 a " 3 1 Ln 7 . . 1 4 Ln 1 5 / 1 5 a 17 2 2 1 0 C e n t r a l O f c e S w i t c h i n g 18 C a t 2 . T a n d e m S w i h i n g 19 T a n d e m S w i t c h i n g 20 D i r e c t A s s i g n - M S G 21 . P L 22 T o t a l C a t 2 Di r e c t Di r e c t Di r e c t Ln 1 9 . . 2 1 23 C a t 3 - L c a l S w i t c h i n g - T S 24 C a t 3 - L c a l S w i h i n g . N T S 25 D i r e c t A s s i g n - M S G 26 . P L 27 T o t l C a t 3 Di r e c t Di r e c t Di r e c t Di r e c t Ln 2 3 . . 2 6 28 T O T A L C O E . o W I T C H I N G 29 D i s t r i b u t i o n o f L i n e 2 8 Ln 2 2 + 2 7 Ln 2 8 J 8 a 30 C O E C a t 1 , 2 & 3 x / S O B ( x I . . d , h , k ) 31 D i s t r b u t i o n o f L i n e 3 0 Ln 7 . . 8 + 2 8 Ln 3 0 / 3 0 a Pr o p r l e t r y I n f o r m a t i o n 4,8 5 9 , 2 8 4 4,8 5 9 , 2 8 4 4,8 5 9 , 2 8 4 10 0 . 0 0 0 0 % 4,8 5 9 , 2 8 4 10 0 . 0 0 0 0 % 4,8 5 9 , 2 8 4 10 0 . 0 0 0 0 % Mo s s A d a m s , L L P 60 f 2 6 Alb i o n T e l e p h o n e C o m p a n y std y A r e a : 4 7 2 2 1 3 st u d y Y e a r : 2 0 0 7 IN T E R S T A T E --TO T A L 4/1 3 1 2 0 0 9 CE N T R A L O F F I C E E Q U I P M E N T A- 5 Pa g e 2 o f 3 In f o r m a t i n Di r A s s t S u r c h a r g e Tr a n s p o r t Tr a n s m i s s i o n T a n d e m S w i Ca r r i e r C o m m o n L i n e Pa y B F P kl ( I Eq u a l Ac c e s s h LI N E DE S C R I P T I O N AP P O R T I O N M E N T F A C T O R S ca E A P P O R T I O N M E N T 32 2 2 3 0 C e n t r a l O f f c e - T r a n s m i s s i o n 33 C a t 4 . 1 - E x c h a n g e C i r c u i t 34 4 . 1 1 W i d e b a n d L i n e 35 D i r e c t A s s i g n - M S G 36 . . L 37 4 . 1 2 E x Tr k x l B - B a s i c 38 D i r e c t A s s i g n - M S G 39 - P L 40 E x Tr k W B 41 D i r e c t A s s i g n - M S G 42 . . L 43 4 . 1 3 E x L i n e x J 44 J o i n t M S G 45 P L & L o c a l 46 D i r e c t A s s i g n - M S G 47 - P L 48 C a t 4 . 2 - l n t e r e x c h a n g e 49 4 . 2 1 F u r n t o o t h e r s - M S G 50 . P L 51 4 . 2 2 W i d e b a n d 52 J t M S G - c c e s $ 53 - N o n a c c e s s 54 P L T W - A c c e s s 55 - N o n a c c e s s 56 D i r e c t A s s l g n . - S G 57 - P L Pr o p r i e t a r y I n f o r m a t i o n SO U R C E Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t 1,4 7 1 , 6 4 5 1,0 6 4 , 1 5 1 39 , 9 2 9 ~ Mo s s A d a m s , L L P 7 of 26 4/1 3 1 2 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 CE N T R A L O F F I C E E Q U I P M E N T Stu d y Y e a r : 2 0 0 7 IN T E R S T A T E JU R I S S e o i a l A c c e s s Lo c a l TO T A L Ch a n T e r m eM - T e r m CM - F a c i l Sw i h i n g LI N E DE S C R I P T I O N SO U R C E I la l Ib l le I 10 1 la AP P O R T I O N M E N T F A C T O R S CO E A P P O R T I O N M E N T 5B 4.2 3 A l l O t h e r 59 Jt M S G - c c e s s Di r e c t I 61 6 , 7 9 1 60 PL T W - A c c e s s Di r e c t 44 , 1 4 9 61 Jt M s g T W - I T Di r e c t 62 Dir e c t A s s i g n - M S G N o n a c c e s s Dir e c t 63 -P L N o n a c c e s s Dir e c t 64 Ca t 4 . 3 - H o s t i R e m o t e 65 Jo i n t Dir e c t I 55 2 , 3 5 5 66 WA T S - M S G Dir e c t 67 .P L Dir e c t 6B Di r e c t A s s i g n - M S G Dir e c t 69 .P L Dir e c t 70 To t a l Ca t 4 Ln 3 4 . . 5 7 + 5 9 . . 6 9 3,B 3 B , 1 3 5 1.5 1 1 , 5 7 4 93 , 2 6 5 1,1 6 9 , 1 4 5 1,0 6 4 , 1 5 1 71 T O T A L C O E . T R A N S M I S S I O N Ln 7 0 3,B 3 B , 1 3 5 1,5 1 1 , 5 7 4 93 , 2 6 5 1,1 6 9 , 1 4 5 1,0 6 4 , 1 5 1 72 D i s t r i b u t i o n o f L i n e 7 1 Ln 7 1 / 7 1 a 10 0 . 0 0 0 0 % 39 . 3 8 3 0 % 2.4 2 9 9 % 30 . 4 6 1 3 % 27 . n 5 7 % 73 T O T A L C E N T R A L O F F I C E E Q U I P Ln 1 S + 2 2 + 2 7 + 7 0 8,6 9 7 , 4 1 9 1,5 1 1 , 5 7 4 93 , 2 6 5 4,8 5 9 , 2 8 4 1,1 6 9 , 1 4 5 1,0 6 4 , 1 5 1 74 D i s t r i b u t o n o f L i n e 7 3 lo 7 3 / 7 3 a 10 0 . 0 0 0 0 % 17 . 3 7 9 6 % 1. 0 7 2 3 % 55 . B 7 0 4 % 13 . 4 4 2 4 % 12 . 2 3 5 3 % A- ó Pa g e 3 o f 3 S& C Pr o c e s s n In t e r - ex c h a n g e o Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o r m a t i o n 80 f 2 6 41 1 3 1 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 IN F O R M A T I O N O R I G I N A T I O N f T E R M I N A T I O N E Q U I P M E N T A-6 LI N E DE S C R I P T I O N AP P O R T I O N M E N T F A C T O R S SO U R C E Lo c a l Sw i t c h i n g . In f o r m a t i o n Ci r A s s t S u r c h a r g e Eq u a l Ac c e s s h Tr a n s p o r t Tr a n s m i s s i o n T a n d e m S w i To t ï Ë a U I P M E N T A P P O R T I O N M E N T 1 2 3 1 0 I n f o O r i g f T e r m E q u i p 2 C a t 1 - o t h e r l O T 3 P u b l i c T e l e p h o n e D i r e c t 4 A l l o t h e r l O T - M S G D i r e c t 5 . P L D i r e c t 6 D i r e c t A s s i g n - M S G D i r e c t 7 . P L D i r e c t 8 T o t a l C a t 1 . o t h e r l O T L n 3 . . 7 9 D i s t r i b u t i o n o f L i n e 8 L n 8 J 8 a 10 C a t 2 C P E - M S G 11 . P L 12 T o t a I C a t 2 - C P E 13 D i s t r i b u t i o n o f L i n e 1 2 Di r e c t Di r e c t Ln 1 0 . . 1 1 Ln 1 2 1 1 2 a 14 T O T A L l O T E Q U I P M E N T 15 D i s t r i b u t i o n o f L i n e 1 4 Ln 8 + 1 2 Ln 1 4 / 1 4 a Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o n n a t i o n 9 of 26 Alb i o n T e l e p h o n e C o m p a n y St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 C a t 1 . 3 E q u i v I n t e r L o o p s p c t Re c o r d s IN T E R S T A T E~TO T A L SO U R C E 4/1 3 1 0 0 9 CA B L E A N D W I R E F A C I L I T I E S A-7 Pa g e 1 o f 2 10 0 . 0 0 0 0 % C& W F C A T 1 - 2 A P P O R T I O N M E N T -2 - 2 4 1 0 C a b l e & W i r e F a c i l i t i e s 3 C a t 1 - E c h L i n e x M 4 1 . 1 I n t r a P L & W A T S 5 1 . 2 I n t e r P L & W A T S 6 1 . 3 J o i n t l y U s e d 7 D i r e c t A s s i g n - M S G 8 - P L 9 T o t a l C a t e g o r y 1 10 C a t 2 - W B & E x c h T r u n k 11 E x T r k x M - j o i n t m e s s a g e 12 E x Lin e WB - P L 13 W B U n e - M S G .P L 14 W B T r u n k - P L 15 W B T r k D i r e c t A s s l g n - M S G 16 - P L 17 T o t a l C a t e g o r y 2 Pr o p r i e t a r y I n f o r m a t i o n DIr e c t DIr e c t Dir e c t Dir e c t Ol r e c t Ln 4 . . 8 Di r e c t Oir e Di r e c t Di r e c t Di r e c t DI r e c t Di r e c t lo l l . . l 6 12 9 , 7 7 5 3, 4 6 6 , 6 6 6 3,5 8 8 , 4 4 2 1, 5 2 8 , 8 7 7 1. 5 2 8 . 8 7 7 Mo s s A d a m s , L L P 10 of 26 Alb i o n T e l e p h o n e C o m p a n y St u d y A r e a : 4 7 2 2 1 3 st u d y Y e a r : 2 0 0 7 ii -J ü TO T A L LI N E DE S C R I P T I O N SO U R C E AP P O R T I O N M E N T F A C T O R S C- & W F C A T 3 - 4 A P P O R T I O N M E N T 18 Ca t 3 - 1 n t e r e x c h a n g e C & W F 19 Wid e b a n d : 20 Jt M S G - c c e s s Di r e c t 21 PU T - A c c e s s Di r e c t 22 Dir e c t A s s i g n - M S G Di r e c t 23 -P L Di r e c t I 66 , 2 2 7 24 Al l oth e r . 25 Jt M S G - c c e s s Di r e c t 4,0 4 9 , 7 5 2 26 PU T - A c c e s s Di r e c t 12 5 , 6 3 1 27 Jo i n t 1 W - I Di r e c t 28 Jo i n t T W o o e m o t e Di r e c t 29 Dir e c t A s s i g n - M S G N o n a c c e s s Di r e c t 30 ~P L N o n a c c e s s Di r e c t 31 To t a l C a t e g o r y 3 Ln 2 0 . . 3 0 I 4,2 4 1 , 6 1 0 32 Ca t 4 - H o s t l R e m o t e 33 Jo i n t ( x I W A T S ) Di r e c t I 65 9 , 4 1 7 34 WA T S - M S G Di r e c t 35 -P L Di r e c t 36 Dir e c t A s s i g n ~ M S G Di r e c t 37 -P L Di r e c t 38 To t a l C a t e g o r y 4 Ln 3 3 . . 3 7 I 65 9 , 4 1 7 39 T O T A L C A B L E & W I R E F A C I L I T I E S Ln 9 + 1 7 + 3 1 + 3 8 10 , 0 1 8 , 3 4 5 40 D i s t r i b u t o n o f L i n e 3 9 Ln 3 9 1 3 9 a 10 0 . 0 0 0 0 % Pr o p r i e t a r y I n f o r m a t i o n 41 1 3 1 0 0 9 CA B L E A N D W I R E F A C I L I T I E S A-7 Pa g e 2 o f 2 SB C Re c o r d P r o c e s s m) f n In t e r ~ ex c h a n g e . Eq u a l Ac c e s s h Tra n s p o r t Tr a n s m i s s i o n T a n d e m S w I Ca r r i e r C o m m o n L i n e Pa y B F ? kl ( I Mo s s A d a m s , L L P 11 of 26 41 1 3 / 2 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 AM O R T I Z A B L E A S S E T S A- 8 IN T E R S T A T E JU R I S S e c i s l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s p o r t Ca r r i e r C o m m o n L i n e B& C In t e r - TO T A L Ch a n Te r m CM - T e r m CM , : , a c i i SW ~ : ~ i n g Di r ( ~ s s t su r ~ ~ ~ r g e A~ ~ ~ S S Tr a n s m i s s i o n Ta n d e m S w Pa y BF P Ré c o r d Pr o c e s s ex c h a n g e LI N E DE S C R I P T I O N SO U R C E 'a 'b c Iii m 'k ' I 'm ' n' '0 ' AP P O R T I O N M E N T F A C T O R S 1 L a n d & S u p p o r t A s s e t s D i s t r A-4 , L n 1 3 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1. 0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % - 24 . 1 6 5 8 % 2 2 2 1 0 C O E - S w i t h D i s t r A-5 , L n 2 9 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % - - 3 2 2 2 0 C O E - D p e r a t o r D i s t r A-5 , L n 1 6 - - - 42 2 3 0 C O E - T r a n s m i s s i o n D i s t r A-5 , L n 7 2 10 0 . 0 0 0 0 % 39 . 3 8 3 0 % 2.4 2 9 9 % 30 , 4 6 1 3 % 27 . 7 2 5 7 % 5 2 3 1 0 l O T D i s t r A-6 , L n 1 5 - 6 2 4 1 0 C & W F D i s t r A-7 , L n 4 0 10 0 . 0 0 0 0 % 16 . 5 5 6 2 % 1.9 1 5 1 % 47 . 0 0 5 5 % 34 . 5 2 3 3 % 7 G S F C O E l O T C & W F E o A , s ' L 6 ' A-2 L n 5 3 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % TA N G I B L E A S S E T S A P P O R T I O N M E N T 8 2 6 8 0 T a n g i b l e A s s e t s - C a p L e a s e s 9 21 1 0 L a n d & S u p t A s s e t s Ln 9 a " 1 - - 10 22 1 0 C O E - S w l t c h l n g Ln 1 0 a " 2 11 22 2 0 C O E - D p e r a t o r Ln 1 1 a * 3 - - 12 22 3 0 C O E - T r a n s m i s s l o n Ln 1 2 a * 4 13 23 1 0 l O T Ln 1 3 a * 5 - 14 24 1 0 C & W F Ln 1 4 a * 6 15 No t C l a s s i f i e d b y A c t o u n t Ln 1 5 a " 1 - - 16 Dir e c t A s s i g n m e n t - C a p L e a s e s Ln 1 6 a " 1 - - 17 T O T A L C A P I T A L L E A S E S Ln 9 . . 1 6 - - 18 D i s t r i b u t i o n o f L i n e 1 7 Ln 1 7 / H a - - TA N G I B L E A S S E T S A P P O R T I O N M E N T 19 2 6 8 0 T a n g i b l e A n t s - L e a s e I m p r o v e 20 21 1 0 L a n d & S u p t A s s e t s Ln 2 0 a " 1 - - - - 21 22 1 0 C O E - 8 w i h l n g Ln 2 1 a * 2 - - - 22 22 2 0 C O E - D p e r a t o r Ln 2 2 a * 3 - 23 22 3 0 C O E - T r a n s m i s s i o n Ln 2 3 a * 4 - 24 23 1 0 l O T Ln 2 4 a * 5 - - 25 24 1 0 C & W F Ln 2 5 a * 6 - 26 No t C l a s s i f i e d b y A c c o u n t Ln 2 6 a * 7 - - 27 Di r e c t A s s i g n m e n t . L e a s e I m p r o v e m e n t s Ln 2 7 a * 7 - - - - 28 T O T A L L E A S E H O L D I M P R O V E M E N T S Ln 2 0 . . 2 7 - - 29 D i s t r i b u t i o n o f L i n e 2 8 Ln 2 8 1 2 8 a - - - 30 T O T A L T A N G I B L E A S S E T S Ln 1 7 + 2 8 - - 31 D i s t r i b u t i o n o f U n e 3 0 Ln 3 0 1 3 0 a - IN T A N G I B L E A S S E T S AP P O R T I O N M E N T 32 2 6 9 0 I n t a n g i b l e A s s e t s Ln 3 2 a * 7 - 33 Di r e c t A s s i g n m e n t Ln 3 3 a * 7 - - 34 T O T A L I N T A N G I B L E A S S E T S Ln 3 2 . . 3 3 - - 35 D i s t r i b u t i o n o f L i n e 3 4 Ln 3 4 1 3 4 a - Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o r m a t i o n 12 of 26 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r . 2 0 0 7 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , G r o s s E q A c s 2 G S F C O E i l O T , C & W F , E a A c s ( L S ) OT H E R A C C O U N T S A P P O R T I O N M E N T 3 2 0 0 2 P r o p H i d F u t T e l e c o m U s e 4 D i r e c t A s s i g n m e n t 5 T O T A L P R O P H L D F U T T E L E C O M U S E 6 D i s t r i b u t i o n o f L i n e 5 7 2 0 0 3 P i t U n d e r C o n s t r 8 D i r e c t A s s i g n m e n t 9 T O T A L P L T U N D E R C O N S T R 10 D i s t r i b u t i o n o f L i n e 9 11 2 0 0 5 T e l e c o m P l a n t Ad j u s t 12 D i r e c t A s s i g n m e n t 13 T O T A L T E L E C O M P L A N T A D J U S T 14 D i s t r i b u t i o n o f L i n e 1 3 MI S C A C C O U N T S A P P O R T I O N M E N T 15 1 4 0 2 C l a s s B R T B S t o c k 15 1 4 3 8 D e f e r r e d C h a r g e s 16 1 2 2 0 M a t e r i a l & S u p l x / C P E 17 D i r e c t A s s i g n m e n t 18 T O T A L M A T E R I A L S A N D S U P P L I E S 19 C a s h W o r k i n g C a p i t l EQ U A L A C C E S S I N V E S T A P P O R T I O N M E N T 20 E q u a l A c c e s s G r o s s I n v e s t m e n t 21 E q u a l A c c e s s G r o s s l i i e s t m e n t - D i r e c t A s s i g n m e n t 22 A c c u m D e p r e c i a t i o n 23 D e f e r r d O p e r I n c T a x e s 24 U n a m o r t i z e d E x p e n s e s 25 T O T A L E Q U A L A C C E S S I N V E S T M E N T 26 D i s t r i b u t i o n o f L i n e 2 6 AL L O W / D I S A L L O W AP P O R T I O N M E N T 27 I n v e s t m e n t A l l o w / D i s a l l o w a n c e s 28 D i r e c t A s s i g n m e n t 29 T O T A L I N V E S T A L L O W / D I S A L L O W A N C E S Pro p r I e t a r y I n f o n n a t i o n SO U R C E A- 2 , L n 5 5 A- 2 , L n 5 3 Ln 3 a " 1 Ln 4 a " 1 Ln 3 . , 4 Ln 5 l 5 a Ln 7 a " 1 Ln 8 a ' " Ln 7 . . 8 Ln 9 1 9 a Ln 1 1 a " 2 Ln 1 2 a * 2 Ln 1 1 . 1 2 Ln 1 3 1 1 3 a Ln 1 5 a * 2 Ln 1 5 a * 2 Ln 1 6 a * 2 Ln 1 7 a * 2 Ln 1 6 . . 1 7 Ln 1 9 a * 2 Di r e c t Di r e c t Di r e c t Di r e c t Di r e c t Ln 2 0 ø 2 2 - 2 3 + 2 4 Ln 2 5 / 2 5 a Ln 2 7 a * 2 Ln 2 8 a " 2 Ln 2 7 . 2 8 4/ 1 3 1 2 0 0 9 TE L E C O M M U N I C A T I O N S P L A N T ø O T H E R A C C O U N T S A-9 IN T E R S T A T E~TO T A L Eq u a l Ac c e s s h Tr a n s p o r t Tr a n s m i s s i o n T a n d e m S w i In f o r m a t i o n Di r A s s t S u r c h a r g e 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 16 . 9 3 8 8 % 1.0 2 5 1 % 1.0 2 5 1 % 31 . 4 0 8 4 % 31 . 4 0 5 4 % 24 . 1 6 5 8 % 24 . 1 6 5 5 % 0. 4 9 8 3 % 0. 4 9 8 3 % 25 . 9 6 3 6 % 25 . 9 6 3 6 % 10 6 , 2 1 7 17 , 9 9 2 1,0 8 9 33 , 3 6 1 25 , 6 6 8 52 9 27 , 5 7 5 27 , 5 7 5 25 . 9 6 3 6 % 33 , 3 6 1 31 . 4 0 5 4 % 25 , 6 6 8 24 . 1 6 5 5 % 10 6 , 2 1 7 10 0 . 0 0 0 0 % 17 , 9 9 2 16 . 9 3 8 8 % 1,0 8 9 1. 0 2 5 1 % 52 9 0. 4 9 8 3 % 10 7 , 1 7 4 53 4 27 , 5 2 6 33 , 6 6 2 33 , 6 6 2 25 , 5 9 9 25 , 5 9 9 18 , 1 5 4 1,0 9 9 10 7 , 1 7 4 53 4 27 , 8 2 6 18 , 1 5 4 1,0 9 9 25 3 . 9 9 7 Mo s s A d a m s , L L P 13 0 f 2 6 4/ 1 3 1 2 0 0 9 Alb i o n T e l e p h o n e C o m p a n y St u d y A r e a : 4 7 2 2 1 3 CE R T A I N I N C O M E A C C O U N T S A N D A D J U S T M E N T S A- l 0 St u d y Y e a r : 2 0 0 7 IN T E R S T A T E JU R I S S e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tra n s p o r t Ca r r i e r C o m m o n L i n e B& C TO T A L Ch a n T e r m CM - T e r m CM , - : , a C i l SW ~ ~ ~ i n g Dir ( ~ s s t su r ~ ~ ~ r g e AC f ~ ~ s S Tr a n s m i s s i o n Ta n d e m S w Pa y BF P I Re c o r d LI N E DE S C R I P T I O N SO U R C E a b c ii I In k I 'm AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , E q A c s ( L S ) A- 2 , L n 5 3 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % - 24 . 1 6 5 8 % 2 G S F , C O E , I O T , C & W F , E q A c s D i s t r A- - , L n 4 9 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % - 24 . 1 6 5 8 % 3 C O E , C W & F , I O T x / C C L , L t d P a y , B & C , I X A- 2 , L n 6 8 10 0 . 0 0 0 0 % 22 . 3 3 6 6 % 0.6 5 7 1 % 1.3 5 1 8 % 34 . 2 3 7 3 % 41 . 4 1 7 2 % 42 1 1 0 S u p p o r t As s e t s D i s t r A- 4 , L n 8 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % - 31 . 4 0 8 4 % 24 . 1 6 5 8 % 5 2 2 1 0 C O E S w i t c h i n g D i s t r A- 5 , L n 2 9 10 0 . 0 0 0 0 % - 10 0 . 0 0 0 0 % 6 2 2 2 0 C O E O p e r a t o r D i s t r A- 5 , L n 1 6 7 2 2 3 0 C O E T r a n s m i s s i o n D i s t r A- 5 , L n 7 2 10 0 . 0 0 0 0 % 39 . 3 8 3 0 % 2. 4 2 9 9 % - 30 . 4 6 1 3 % 27 . 7 2 5 7 % 8 2 3 1 0 l O T D l s t r A~ , L n 1 5 - 92 4 1 0 C & W F D i s t r A-7 , n 4 0 10 0 . 0 0 0 0 % 16 . 5 5 6 2 % 1.9 1 5 1 % 47 . 0 0 5 5 % 34 . 5 2 3 3 % 10 2 0 0 1 T e l P i t i n B v c D l s t r A- 2 , L n 1 5 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % 11 N e t T e l e c o m P l a n t O i s t r A- 2 , L n 3 4 10 0 . 0 0 0 0 % 19 . 0 9 4 9 % 0.4 4 3 8 % 1.3 7 6 7 % 9. 8 4 7 1 % 39 . 3 5 5 2 % 29 . 8 8 2 3 % 12 4 1 0 0 N e t C u r D e f O p I n c T a x e s A- 1 5 , L n 4 8 13 B i g T h r e e E X D e n s e s D i s t r A- 3 . L n 6 10 0 . 0 0 0 0 % 16 . 5 2 8 0 % 0.5 5 1 9 % 0. 8 4 0 5 % 21 . 0 6 5 6 % 27 . 6 1 5 4 % 27 . 7 5 2 3 % I 3.1 7 2 2 % 2.4 7 4 1 % 1" _ 15 Al w F d s - U ~ e d O u r C ~ ' n s t r Ln 1 5 a * 1 I 7, 1 4 4 1 1,2 1 0 36 73 1 1,8 5 5 1 :1 :1 2,2 4 4 :1 1,7 2 7 16 Co n t r i b u t i o n s Ln 1 6 a * 1 9, 5 7 9 1,6 2 3 48 98 2,4 8 7 3,0 0 9 2, 3 1 5 17 Ab a n d o n d e d C o n s t r u c t i o n Ln 1 7 a * 1 18 Dir e c t A s s i g n m e n t Ln 1 8 a * 1 19 T O T A L O T H E R O P E R I N C & E X P E N S E S Ln 1 5 . . 1 8 I 16 , 7 2 3 1 2,8 3 3 83 17 1 4,3 4 2 1 -I -I 5,2 5 3 -I 4, 0 4 1 20 F i x e d C h a r g e s 21 In t r e s t o n C a p , i t l L e a s e s Ln 2 1 a * 1 22 Fix e d C h a r g e s E x c l C a p i t a l L e a s e s Ln 2 2 a * 1 1 17 2 , 6 6 6 I 29 , 2 4 8 86 0 1, 7 7 0 I 44 , 8 3 0 1 .1 -I 54 , 2 3 2 -I 41 , 7 2 6 23 Am o r t i Z i o n o f D e b t D i s c o u n t Ln 2 3 a * 1 24 Oth e r In t e r e s t Ln 2 4 a * 1 25 T O T A L F I X E D C H A R G E S Ln 2 1 . 2 4 I 17 2 , 6 6 6 1 29 , 2 4 8 86 0 1, 7 7 0 I 44 , 8 3 0 1 -I -I 54 , 2 3 2 -I 41 , 7 2 6 26 5 2 4 0 R e n t R e v e n u e s 27 Su p p o r t A s s e t s Ln 2 7 a * 4 28 CO E . . w i t h i n g Ln 2 8 a * 5 29 CO E - C p e r a t o r Ln 2 9 a * S 30 Ce E - T r a n s m i s s i o n Ln 3 0 a * 7 31 'O T Ln 3 1 a * 8 32 C& W F Ln 3 2 a " 9 33 No t C l a s s i f i e d b y A c c o u n t Ln 3 3 a * 1 0 UN B U N D L E D N E T W O R K E L E M E N T S 34 C& W F - U n b u n d l e d L o o p Dir e c t 35 Op e r a t o r S y s t e m s 36 Ta n d e m S w i t c h i n g Dir e c t 37 Lo c a l S w i h i n g Dir e c t 38 Tr a n s p o r t T e r m i n a t i o n Dir e c t 39 Tr a n s p o r t F a c i l i t Dir e c t 40 SS 7 Ln 4 0 a ' 7 41 OS S Ln 4 1 a * 1 0 42 Dir e c t A s s i g n m e n t Ln 4 2 a * 1 0 43 T O T A L R E N T R E V E N U E S Ln 2 7 . . 4 2 IN C O M E T A X A D J U S T A P P O R T I O N M E N T I 44 I T C A m o r t i z a t i o n - F e d e r a l Ln 4 4 a * 1 45 i r e A m o r t t i o n - S t a t e Ln 4 5 a * 1 46 T O T A L I T C A M O R T I Z A T I O N ln 4 4 . . 4 5 47 A m o r t a t i o n o f E x c e s s D e f T a x e s ln 4 7 a * 1 0 48 C a p i t a l i z e d P a y r o l l T a x e s Ln 4 8 a * 2 49 Dir e c t A s s i g n m e n t Ln 4 9 a * 2 50 T O T A L C A P I T A L I Z E D P A Y R O L L T A X E S Ln 4 8 . . 4 9 51 D e p r e c i a t i o n A d j u s t e n t s Ln 5 1 a * 2 52 Dir e c t A s s i g n m e n t Ln 5 2 a * 2 53 T O T A L D E P R E C I A T I O N A D J U S T M E N T S Ln 5 1 . . 5 2 54 U n c o l l e c i b l e s - J o i n t M e s s a g e ln 5 4 a * 2 55 U n c o l l e c t i b l e s - E n d U s e r C e i Di r e c t 56 U n c o l l e c t i b l e s - I n t e r e x c h a n g e C a r r e r Ln 5 6 a * 3 57 T O T A L U N C O L l E C T I B L E S Ln 5 4 . . 5 6 58 M i s e I n c A d j u s t m e n t s 59 In c A d j A l l o c o n 2 0 0 1 Ln 5 9 a * 1 0 60 In c A d j A l l o c o n B i g 3 E x p Ln 6 0 e i * 1 61 T O T A L M I S C I N C A D J U S T M E N T S Ln 5 9 . . 6 0 62 T o t l O t h e r I n c o m e a n d T a x a d j u s t m e n t s Ln 1 9 + 2 5 + 4 3 + 4 6 + 4 7 + 5 0 1 18 9 , 3 8 9 1 32 , 0 8 0 94 4 1,9 4 1 1 49 , 1 7 2 1 :1 :1 59 , 4 8 4 :1 45 , 7 6 7 63 D i s t r i b u t i o n o f L i n e 6 2 Ln 6 2 1 2 a 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0,4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % Mo s s A d a m s , L L P 14 of 26 Pr o p r i e t a r y I n f o r m a t i o n 41 1 3 1 2 0 0 9 Alb i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 PL A N T S P E C I F I C E X P E N S E S A.1 1 Stu d y Y e a r : 2 0 0 7 I IN T E R S T A T E I ~ Lo c a l In f o r m a t i o n Eq u a l Tr a n s D o r t .. Ca r r i e r C o m m o n U n e B& C i~ í Sw i t c h i n g Dir ( ~ s s t su r ~ ~ ~ r g e Ac c e s s LI N E DE S C R I P T I O N SO U R C E fb i te l d' '. ' h AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , E q A c s ( L S ) A- 2 , l n 5 3 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0. 4 9 8 3 % 1,0 2 5 1 % 25 . 9 6 3 6 % - :1 31 . 4 0 8 4 % :1 24 . 1 6 5 8 % 22 1 1 0 l a n d & S u p p o r l A s s e t s D i s t r A- 4 , l n 1 3 10 0 , 0 0 0 0 % 16 . 9 3 8 8 % 0. 4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % 3 2 2 1 0 C O E S w i t h i n g D i s t r A- 2 , L n n 10 0 . 0 0 0 0 % - 10 0 . 0 0 0 0 % 4 2 2 2 0 C O E O p e r a t o r y S y s t e m s O i s t r A.. , l n 1 6 - 5 2 2 3 0 C O E T r a n s m i s s i o n O i s t r A.. , l n 7 2 10 0 . 0 0 0 0 39 . 3 8 3 0 % 2. 4 2 9 9 % - 30 . 4 6 1 3 % 27 . 7 2 5 7 % 6 6 4 1 0 C & W F O i s t r A.7 l n 4 0 10 0 . 0 0 0 0 % 16 . 5 5 6 2 % 1. 9 1 5 1 % 47 , 0 0 5 5 % 34 , 5 2 3 3 % PL A N T S P E C I F I C E X P A P P O R T I O N M E N T 7 6 1 1 0 N e t w r k S u p p o r t E x p e n s e s ln 7 a " ' 1 78 , 3 5 5 13 , 2 7 2 39 0 80 3 20 , 3 4 4 24 , 6 1 0 18 , 9 3 5 8 Di r e c t A s s i g n m e n t ln B a " ' 1 9 T O T A L N E l W R K S U P P O R T E X P E N S E S ln 7 . . 8 7B , 3 5 5 13 , 2 7 2 39 0 80 3 20 , 3 4 4 24 , 6 1 0 18 , 9 3 5 10 6 1 2 0 G e n e r a l S u p p o r t E x p e n s e s ln 1 0 a " 2 96 , 8 6 4 16 , 4 0 8 48 3 99 3 25 , 1 4 9 - 30 , 4 2 3 23 , 4 0 8 11 Dir e c t A s s i g n m e n t ln 1 1 a " 2 12 T O T A L G E N E R A L S U P P O R T E X P E N S E S ln 1 0 . . 1 1 96 , 8 6 4 16 , 4 0 8 48 3 99 3 25 , 1 4 9 30 , 4 2 3 23 , 4 0 8 13 6 2 1 0 C O E S w i t c h i n g E x p e n s e s ln 1 3 a " ' 3 25 3 , 0 1 5 25 3 , 0 1 5 14 Di r e c t A s s i g n m e n t ln 1 4 a " ' 3 15 T O T A L C O E S W I T C H I N G E X P E N S E S ln 1 3 . . 1 4 25 3 , 0 1 5 - 25 3 , 0 1 5 16 6 2 2 0 C O E O p e r a t o r S y s t e m s E x p e n s e s Ln 1 6 a " ' 4 17 Dir e c t A s s i g n m e n t ln 1 7 a " ' 4 18 T O T A L C O E O P E R A T O R S Y S E X P E N S E S ln 1 6 . . 1 7 19 6 2 3 0 C O E T r a n s m i s s i o n E x p e n s e s ln 1 9 a " ' 5 30 8 , 2 5 4 12 1 , 4 0 0 7,4 9 0 93 , 8 9 8 85 , 4 6 6 20 Dir e c t A s s i g n m e n t Ln 2 0 a " ' 5 21 T O T A L C O E T R A N S M I S S I O N E X P E N S E S Ln 1 9 . . 2 0 30 8 , 2 5 4 12 1 , 4 0 0 7.4 9 0 93 , 8 9 8 85 , 4 6 6 22 T O T A L C O E E X P E N S E S Ln 1 5 + 1 8 + 2 1 56 1 , 2 6 9 12 1 , 4 0 0 7,4 9 0 25 3 , 0 1 5 93 , 8 9 8 85 , 4 6 6 23 6 3 1 0 l O T E q u i p E x p e n s e s 24 Ca t 1 - C h e r l O T E q E x p e n s e s Di r e c t 25 Ca t 2 - C u s t P r e m E q u i p E x p Di r e c t 26 Dir e c t A s s i g n m e n t Di r e c t 27 T O T A L l O T E X P E N S E S Ln 2 4 . . 2 6 28 6 4 1 0 C & W F E x p e n s e s Ln 2 8 a " 6 53 1 , 8 0 2 88 , 0 4 6 10 , 1 8 4 24 9 . 9 7 6 18 3 , 5 9 6 29 Dir e c t A s s i g n m e n t Ln 2 9 a " 6 30 T O T A L C & W F E X P E N S E S Ln 2 8 . . 2 9 53 1 , 8 0 2 88 , 0 4 6 10 , 1 8 4 24 9 , 9 7 6 18 3 , 5 9 6 31 P i t S p e c E x p x / 1 1 0 , 6 1 2 0 Ln 2 2 + 2 7 + 3 0 1,0 9 3 , 0 7 1 20 9 , 4 4 6 7,4 9 0 10 , 1 8 4 25 3 , 0 1 5 34 3 , 8 7 4 26 9 , 0 6 1 32 T O T A L P L A N T S P E C O P E R E X P ln 9 + 1 2 + 3 1 1, 2 6 8 , 2 9 0 23 9 , 1 2 6 8,3 6 4 11 , 9 8 1 29 8 , 5 0 8 39 8 , 9 0 7 31 1 , 4 0 4 33 D i s t r i b u t i o n o f U n e 3 2 ln 3 2 1 2 a 10 0 . 0 0 0 0 % 18 . 8 5 4 2 % 0. 6 5 9 4 % 0.9 4 4 6 % 23 . 5 3 6 3 % 31 . 4 5 2 4 % 24 . 5 5 3 1 % Mo s s A d a m s , l L P Pro p r i e t a r y I n f o r m a t i o n 15 0 f 2 6 4/ 1 3 1 2 0 0 9 Alb i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 PL A N T N O N S P E C I F I C E X P E N S E S A.1 2 Stu d y Y e a r : 2 0 0 7 I lN T E R S T A T / i Lo c a l In f o r m a t i o n Eq u a l Tr a n s o r t Ca r r i e r C o m m o n L i n e B& C T In t e r r~ i Ib l le l Id ' sW ~ ~ ~ l n g Dir A s s t su ~ ~ ~ r g e Ac c e s s Tr a n s m i s s i o n Ta n d ~ ~ S W P~ : l Bi~ P 1 Re c o r d Pr o c e s s i e x c h a n g e LI N E DE S C R I P T I O N SO U R C E t h fi Im l In l 10 AP P O R T I O N M E N T F A C T O R S 1 C D E , l O T , C & W F D i s t r A- 2 , L n 8 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0. 4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 6 4 % 24 . 1 6 5 8 % 22 1 1 0 S u p t A s t s D i s t r A- 4 , L n 8 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0. 4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % 3 2 2 1 0 C D E - S w i t c h l n g D i s t r A- 2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 , 0 0 0 0 % 4 2 2 2 0 C D E - O p e r a t o r O i s t r A- 5 , L n 1 6 5 2 2 3 0 C D E - T r a n s m i s s i o n O l s t r Ao o , L n 7 2 10 0 . 0 0 0 0 % 39 . 3 8 3 0 % 2.4 2 9 9 % - 25 . 9 6 3 8 i 1 - ~ 1 ~ 1 30 . 4 8 1 3 % ~ 1 27 . 7 2 5 7 % 6 2 3 1 0 l O T D l s t r A~ . L n 1 5 - - 7 2 4 1 0 C & W F D i s t r A- 7 , L n 4 0 10 0 . 0 0 0 0 % 16 . 5 5 6 2 % - 1. 9 1 5 1 % 47 . 0 0 5 5 % 34 . 5 2 3 3 % 82 0 0 1 T e l P l t i n S v c D i s t r A- - , L n 1 5 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1. 0 2 5 1 % - 31 . 4 0 8 4 % 24 . 1 6 5 8 % 9 2 0 0 2 P r o p H i d F t T e l U s e D i s t r A- 9 , L n 6 10 2 6 8 0 C a p i t l L e a s e s D i s t r A.. , L n 1 8 11 2 6 8 0 L e a s e h o l d I m p r o v e D i s t r A.. , L n 2 9 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s t r A.. , L n 3 5 13 2 0 0 5 T e l e c o m P i t Ad j u s t m e n t A- 9 L n 1 4 PL A N T N O N S P E C E X P A P P O R T I O N 1 14 6 5 1 0 O t h P r o p P l a n t & E q E x p Ln 1 4 a " 1 15 Dir e c t A s s i g n m e n t Ln 1 5 a " 1 16 T O T A L O T H P R O P P L A N T & E Q E X P Ln 1 4 . . 1 5 17 6 5 3 0 N e t w r k O p e r a t i o n s E x p Ln 1 7 a " 1 I 28 3 , 0 3 : I 44 , 5 5 4 1,3 1 1 2,6 9 ~ I 68 , 2 9 : I :1 :1 82 , 6 1 4 :1 63 , 5 6 4 18 Dir e c t A s s i g n m e n t Ln 1 8 a " 1 19 T O T A L N E T W O R K O P E R A T I O N S E X P Ln 1 7 . . 1 8 26 3 , 0 3 1 44 , 5 5 4 1,3 1 1 2,6 9 6 68 , 2 9 2 82 , 6 1 4 63 , 5 6 4 20 6 5 4 0 A c c e s s E x p e n s e s 21 Ac c e s s E x p e n s e x f F e d e r a l S u p p o r t Di r e c t 22 Fe d e r a l S u p p o r t Di r e c t 1 73 , 3 3 0 23 T O T A L A C C E S S E X P E N S E S Ln 2 1 . . 2 2 73 , 3 3 0 24 T O T A L A C C O U N T S 6 5 1 0 , 6 5 3 0 , 6 5 4 0 Ln 1 6 + 1 9 + 2 3 33 8 , 3 6 1 I 44 , 5 5 4 1,3 1 1 2,6 9 6 I 68 , 2 9 2 1 -I -I 82 , 8 1 4 -I 13 6 , 8 9 4 25 6 5 6 0 D e p r a n d A m o r t E x p e n s e s 26 De p r - 8 u p p o r t A s s e t s Ln 2 6 a " 2 46 , 2 8 4 7,8 4 0 23 1 47 4 12 , 0 1 7 1 -I -I 14 , 5 3 7 -I 11 , 1 8 5 27 De p r - C O E . . w i h i n g Ln 2 7 a " 3 50 1 , 9 3 1 50 1 , 9 3 1 28 De p r - C O E - D p e r a t o r Ln 2 8 a " 4 29 De p r - C O E - T r a n s m i s s i o n Ln 2 9 a " 5 38 4 , 1 6 5 15 1 , 2 9 6 9,3 3 5 :1 :1 :1 11 7 , 0 2 2 :1 10 6 , 5 1 3 30 De p r - I n f o O r i g e r m E q u i p Ln 3 0 a " 6 31 De p r - C a b l e & W i r e F a c i ! Ln 3 1 a " 7 48 5 , 0 0 5 80 , 2 9 8 9,2 8 8 22 7 , 9 7 9 16 7 , 4 4 0 32 De p r - P r o p H I d F t T e l U s e Ln 3 2 a " 9 33 Am o r t - C a p i t l L e a s e s Ln 3 3 a " 1 0 34 Am o r t - L e a s e h o l d I m p r o e m e n t s Ln 3 4 a " 1 1 35 Am o r t - I n t a n g i b l e A s s e t s Ln 3 5 a " 1 2 36 Am o r t - o h e r Ln 3 6 a " 1 3 37 T O T A L D E P R & A M O R T E X P E N S E S Ln 2 6 . . 3 6 I 1. 4 1 7 ' 3 8 5 1 23 9 , 4 3 4 9,5 6 6 9'7 6 3 1 51 3 ' 9 4 8 1 ;1 ;1 35 9 , 5 3 7 ;1 28 5 , 1 3 7 38 T O T A L P L A N T N O N S P E C O P E R E X P Ln 1 6 + 1 9 + 2 3 + 3 7 1, 7 5 3 , 7 4 6 28 3 , 9 8 8 10 , 8 7 8 12 , 4 5 9 58 2 , 2 4 0 44 2 , 1 5 1 42 2 , 0 3 1 39 D i s t r i b u t i o n 0 1 L i n e 3 9 Ln 3 8 J 3 8 a 10 0 . 0 0 0 0 % 16 . 1 9 3 2 % 0. 6 2 0 2 % 0.7 1 0 4 % 33 . 1 9 9 8 % 25 . 2 1 1 8 % 24 . 0 6 4 5 % Mo s s A d a m s , L L P Pro p r i e t a r y I n f o r m a t i o n 16 0 1 2 6 Alb i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 2 W S W S - T e l O p e r S v c s P e t 3 O p e r a t o r S e l v l c e s U n d e r C o n t r a c t P e l 4 G S F , C O E , I O T , C & W F , E q A e s ( L S C C L + ) 5 E U S e i v l c e O r d e r C o n t a c t 6 E U P a y m e n t & C o l l e c t i o n 7 E U B i l l n g I n q u i r y C o n t a c t 8 I X C a r r i e r S v c O r d e r C o n t a c t s 9 i x C a r r i e r P a y m e n t & C o l l e c t i o n 10 i x C a r r i e r B I l l n g I n q u i r y C o n t a c t 11 C o i n C o l l e c t i o n MA R K E T I N G E X P E N S E S A P P O R T I O N - M E N T 12 6 6 1 0 M a r k e t i n g E x p e n s e s 13 D i r e c t A s s i g n m e n t 14 T O T A L M A R K E T I N G E X P E N S E S SE R V I C E S E X P E N S E S A P P O R T I Ö N M E N T 15 6 6 2 0 S e r v i c e s E x p e n s e s 16 T e l e p h o n e O p e r a t r S e r v i c e : 17 T e l O p e r a t o r S v c 18 O p e r a t o r s e r v i c e s u n d e r c o n t r a c t 19 T o t a l T e l O p e r B v c E x p 20 P u b l i s h e d D i r e c t L i s t i n g s 21 A l l Ot h e r : 22 C a t . 1 - L B O E E U S V c O r d P r o c 23 P r e s u b s c r l p t i o n 24 o t e r 25 C a t 1 - L B O E E U P & C 26 - C I I 27 - O t h e r 28 C a t 1 - L B O E E U B I 29 - C I I 30 - O t h e r 31 C a t 1 - L B O E I X C S O P 32 C a t 1 . o B O E I X C P & C 33 C a t 1 - L B O E I X C B I 34 C a t 1 - L B O E C o i n C o l - L m t d 35 T o t a l C a t 1 - L B O E Pro p r i e t a r y I n f o r m a t i o n SO U R C E A-2 , L n 5 5 A-1 6 , L n 7 A-1 6 , L n 1 4 A-2 , L n 6 2 A- 1 6 , L n 1 9 A- 1 6 , L n 2 4 A- 1 6 , L n 2 9 A- 1 6 , L n 3 3 A- 1 6 , L n 3 7 A- 1 6 , L n 4 1 A- 1 6 , L n 4 5 Ln 1 2 a * 1 Dir e c t Ln 1 2 . . 1 3 Ln 1 7 a * 2 Ln 1 8 a * 3 Ln 1 7 . . 1 8 Dir e c t Ln 2 3 a * 4 Ln 2 4 a * 5 Di r e c t Ln 2 5 a * 6 Dir e c t Ln 2 8 a * 7 Ln 3 1 a * S Ln 3 2 a * 9 Ln 3 3 a * 1 0 Ln 3 4 a * 1 1 Ln 2 3 . . 3 4 4/1 3 / 2 0 0 9 CU S T O M E R O P E R A T I O N S E X P E N S E S A-1 3 Pa g e 1 o f 2 IN T E R S T A T E~TO T A L I C h a n T e r m al ( b B& C Re c o r d P r o c e s s m) i n In t e r - ex c h a n g e o 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 9, 6 5 5 9. 6 5 5 58 , 2 6 6 21 , 2 0 6 12 , 6 2 4 29 0 1, 7 8 6 79 1 Mo s s A d a m s , L L P 17 0 f 2 6 4/1 3 / 2 0 0 9 Alb i o n T e l e p h o n e C o m p a n y St u d y A r e a : 4 7 2 2 1 3 CU S T O M E R O P E R A T I O N S E X P E N S E S A-1 3 St u d y Y e a r : 2 0 0 7 Pa g e 2 o f 2 S e c i a l A c c e ! : ! l Lo c a l In f o r m a t i o n Tr a n s D o r t Ca r r i e r C o m m o n L i n e BO C Ch a n T e m i CM . T e r m kiN E DE S C R I P T I O N SO U R C E b c AP P O R T I O N M E N T F A C T O R S 36 C O E , C W & F , I O T x l C C L , L t d P a y , 8 & C , 1 X A-2 . L n 6 8 22 . 3 3 6 6 % 0.6 5 7 1 % 1.3 5 1 8 % I 34 . 2 3 7 3 % I I 41 . 4 1 7 2 % SE R V I C E S E X P E N S E S A P P O R T I O N M E N T 37 Ca t 2 . c S E M s g P r o c 38 Jo i n t M e s s a g e Dir e c t 39 Di r e c t A s s i g n m e n t Dir e c t 40 Ca t 2 . c S E o t h e r B & C 41 Di r e c t A s s i g n m e n t Dir e c t 24 , 3 0 4 42 En d U s e r C o m m o n L i n e Dir e c t 4, 2 8 9 43 Ca t 2 . c S E C A B S Ln 4 3 a * 3 6 8, 7 5 8 44 To t a l C a t 2 0 C S E Ln 3 7 . . 4 3 54 , 3 5 9 1,9 5 6 58 11 8 1 2, 9 9 8 1 -I -I 3,8 2 7 -I 4,2 8 9 I 41 , 3 1 3 45 Ca t 2 S p e c A c s D i s t r Ln 4 4 f 4 4 a . . . . d 10 0 . 0 0 0 0 % 91 , 7 4 8 4 % 2.6 9 9 1 % 5.5 5 2 5 % 46 To t a l 66 2 0 x l C a t 3 Ln 1 9 + 2 0 + 3 5 + 4 4 14 9 , 3 2 0 7,2 5 3 58 11 8 1 3, 9 1 1 I :1 :1 4,7 3 1 :1 38 , 9 6 8 1 52 , 9 6 9 41 , 3 1 3 47 Di s t r i b u t i o n o f U n e 4 1 Ln 4 6 f 4 6 a 10 0 . 0 0 0 0 % 4.8 5 7 4 % 0.0 3 8 5 % 0.0 7 9 3 % 2. 6 1 9 2 % 3. 1 6 8 4 % 28 . 0 9 6 9 % 35 . 4 7 3 3 % 27 . 6 6 7 1 % 48 Ca t 3 - - 1 I o t h e r C S E Ln 4 8 a * 4 7 49 Ca t 3 - D i r e c t A s s i g n m e n t Ln 4 9 a * 4 7 9, 2 1 4 44 8 4 7 24 1 29 2 2,4 0 5 3,2 6 9 2,5 4 9 50 To t a l A l l O t h e r C a t 3 Ln 4 8 . . 4 9 9, 2 1 4 44 8 4 7 24 1 29 2 2,4 0 5 3,2 6 9 2,5 4 9 51 To t a l Al l Oth e r o C a t 1 , 2 , 3 Ln 3 5 + 4 4 + 5 0 15 8 , 5 3 4 7,7 0 1 61 12 6 4,1 5 2 5,0 2 3 41 , 3 7 2 56 , 2 3 7 43 , 8 6 2 52 T O T A L S E R V I C E S E X P E N S E S Ln 1 9 + 2 0 + 5 1 15 8 , 5 3 4 7,7 0 1 61 12 6 4,1 5 2 5,0 2 3 41 , 3 7 2 56 , 2 3 7 43 , 8 6 2 53 T O T A L 6 6 1 0 & 6 6 2 0 x l a m o u n t s Ln 1 2 + 1 8 + 1 9 + 2 2 . . 2 5 54 al l o c a t e d o n G S F +2 9 + 3 9 + 4 4 14 6 , 4 5 4 7, 2 5 3 58 "1 2'9 9 8 1 ;1 ;1 3,6 2 7 ;1 38 " ' 9 1 52 , 9 6 9 41 , 3 1 3 55 T O T A L C U S T O M E R O P E R E X P E N S E S Ln 1 4 + 5 2 16 8 , 1 8 9 9, 3 3 6 10 9 22 5 6,6 5 9 8,0 5 5 43 , 7 0 6 56 , 2 3 7 43 , 8 6 2 56 D i s t r i b u t o n o f L i n e 5 4 Ln 5 5 1 5 5 a 10 0 . 0 0 0 0 % 5.5 5 0 9 % 0.0 6 4 9 % 0.1 3 3 6 % 3. 9 5 9 2 % 4.7 8 9 5 % 25 . 9 8 6 0 % 33 . 4 3 7 0 % 26 . 0 7 8 9 % Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o m i a t i o n 18 0 f 2 6 4/ 1 3 1 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 CO R P O R A T E O P E R A T I O N S , T A X E S , & E Q U A L AC C E S S E X P E N S E S A- 1 4 Stu d y Y e a r : 2 0 0 7 IN T E R S T A T E JU R I S S e o i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s p o r t Ca r r i e r C o m m o n L i n e BS C In t e r - I TO T A L Ch a ~ b ; . m i CM ; ; : r m CM , - : i a c i l S~ ~ ~ i n g Dir ( ~ s s t su r ; ~ ~ r g e A~ ~ ~ S S Tr a n s m i s s i o n Ta n d e m S w Pa y BF P Re c o r d Pr o c e s s I ex c h a n g e qN E DE S C R I P T I O N SO U R C E a\ I m k I m 'n ,. AP P O R T I O N M E N T F A C T O R S 1 1 B i g T h r e e E x p e n s e s D i s t r A- 3 , L n 6 10 0 . 0 0 0 0 % 16 . 5 2 8 0 % 0. 5 5 1 9 % 0.8 4 0 5 % 21 . 0 6 5 6 % 27 . 6 1 5 4 % 27 . 7 5 2 3 % 3.1 n 2 % 2.4 7 4 1 % 2 G S F , C O E , I O T , C & W F , E q A c s ( L S ) A- 2 , L n 5 3 10 0 . 0 0 0 0 % 16 . 9 3 6 8 % 0. 4 9 8 3 % 1. 0 2 5 1 % 26 . 9 6 3 6 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % 3 C u s t o m e r O D e ra t i o n s D i s t r A- 1 3 . L n 5 6 10 0 . 0 0 0 0 % 5. 5 5 0 9 % 0. 0 6 4 9 % 0.1 3 3 6 % 3.9 5 9 2 % 4.7 8 9 5 % 25 . 9 8 6 0 % 33 . 4 3 7 0 % 26 . 0 7 8 9 % CO R P O P E R A T I O N S E X P A P P O R T I O N M E N T 4 6 7 1 0 E x e c & P l a n n i n g E x p e n s e s :1 5 Al l Ot h e r Ln S a " 1 43 4 , 3 8 ~ I 71 , 7 9 6 2,3 9 7 3, 6 5 : I 91 , 5 0 ~ I :1 11 9 , 9 5 8 :1 12 0 , 5 5 ~ 1 13 , 7 7 9 10 , 7 4 7 6 Dir e c t A s s i g n m e n t Lo B a " " 7 T O T A L E X E C & P L A N N I N G E X P E N S E S Lo S . . s 43 4 , 3 8 8 71 , 7 9 6 2,3 9 7 3,6 5 1 91 , 5 0 7 11 9 , 9 5 8 12 0 , 5 5 3 13 , 7 7 9 10 , 7 4 7 8 6 7 2 0 G e n ' l a n d A d m i n E x p e n s e s 9 Al l oth e r Lo 9 a ' " , 43 0 , 4 1 2 71 , 1 3 9 2,3 7 5 3,6 1 8 90 , 6 6 9 11 8 , 8 6 0 11 9 , 4 4 9 13 , 6 5 3 10 , 6 4 9 10 Dir e c t A s s i g n m e n t Ln 1 0 a * ' 44 , 6 6 6 7,3 8 2 24 6 37 5 9,4 0 9 12 , 3 3 5 12 , 3 9 6 1, 4 1 7 1,1 0 5 11 T O T A L GE N ' L & AD M I N E X P E N S E S Ln S . . l 0 47 5 , 0 7 8 78 , 5 2 1 2,6 2 2 3,9 9 3 10 0 , 0 7 8 13 1 , 1 9 5 13 1 , 8 4 5 15 , 0 7 0 11 , 7 5 4 12 T O T A L C O R P O R A T E O P E R E X P E N S E S Ln 7 + 1 1 90 9 , 4 6 6 15 0 , 3 1 7 5,0 1 9 7,6 4 4 19 1 , 5 8 5 25 1 , 1 5 2 25 2 , 3 9 8 28 , 8 5 0 22 , 5 0 1 13 D i s t r i b u t i o n o f L I n e 1 2 Ln 1 2 1 1 2 a 10 0 . 0 0 0 0 % 16 . 5 2 8 0 % 0.5 5 1 9 % 0.8 4 0 5 % 21 . 0 6 5 6 % 27 . 6 1 5 4 % 27 . 7 5 2 3 % 3.1 7 2 2 % 2. 4 7 4 1 % OP E R A T I N G T A X E S A P P O R T I O N M E N T 14 7 2 0 0 O p e r a t i n g T a x e s I 15 Fe d e r a l In c o m e T a x e s Ln 1 5 a " 2 10 8 , 8 7 ~ I 18 , 4 4 3 54 3 1,1 1 ~ I 28 , 2 S ~ I :1 :1 34 , 1 9 7 :1 26 , 3 1 1 16 St a e & L o c a l In c o m e T a x e s Ln 1 6 a * 2 1 0 2 2 17 OP F E D , S T A T E , L O C A L T A X E S 10 8 , 8 8 6 18 , 4 4 4 54 3 1,1 1 6 28 , 2 7 1 34 , 1 9 9 26 , 3 1 3 18 F I T A l l o w n c e s / D i s a l t w a n c e s Ln 1 8 a " 2 19 Op e r a t i n g T a x e s R P r o p e r t Ln 1 9 a " 2 I 65 , 8 3 ~ I 11 , 1 5 2 32 8 67 ~ I 17 , 0 9 ~ I ~ I ~ I 20 , 6 7 7 ~ I 15 , 9 0 9 20 Op e r a t i n g T a x e s - O U l e r Ln 2 0 a " 2 21 Op e r a t i n g T a x e s - D i r e c t A s s i g n m e n t Ln 2 1 a " 2 1,4 5 3 24 6 7 15 37 7 45 6 35 1 22 T O T A L O P E R T A X E S x l F I T . S I T Ln 1 9 . . 2 1 S7 , 2 8 7 11 , 3 9 8 33 5 69 0 17 , 4 7 0 21 , 1 3 4 16 , 2 6 1 OP E R A T I N G R E V E N U E S E P A R A T I O N S I 23 5 0 0 0 B a s i c L o c a l R e v e n u e Dir e c t 24 5 0 8 0 I n t e r s t a t e A c c e s s / E n d U s e r R e v e n u e Ln 2 4 a " 2 I 5,0 8 3 , 7 2 8 25 5 0 8 4 S t a t e A c c e s s / E n d U s e r R e v e n u e Dir e c t 26 5 1 0 0 L o n g D i s t a n c e M e s s a g e R e v e n u e Dir e c t 27 5 2 0 0 M i s c e l l a n e o u s O p e r a t i n g R e v e n u e Ln 2 7 a ' " 1 2,4 0 4 :1 11 5 :1 62 5 1 80 4 62 7 28 7 1 0 0 o t h e r O p e r a t n g I n c o m e Ln 2 8 a ' " 1.5 0 7 . 3 1 Š 29 T O T A L O P E R A T I N G R E V E N U E 5.0 8 8 . 1 3 2 1. 9 5 8 . 3 6 8 80 4 82 7 EQ U A L A C C E S S E X F I . A P P : 9 R T I O N M E N T I Dir e c t OR T I O N 31 E x p e n s e A l l o w a n c e s / D i s a l l o w a n c e s I 13 1 I 11 32 In t r e s t o n C u s t m e r D e p o s i t Ln 3 2 a " 2 22 1 34 1 -I .1 41 -I 32 33 oth e r I n t e r e s t Ln 3 3 a " 2 34 Dir e c t A s s i g n m e n t Ln 3 4 a " 2 35 T O T A L E X P A L L O W I O I S A L L O W A N C E S Ln 3 2 . . 3 4 1 13 1 1 22 1 11 34 1 .1 .1 41 -I 32 No t e 1 : A l l o c a t e d o n t h e A - 1 Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o r m a t i o n 19 0 f 2 6 4/ 1 3 1 2 0 0 9 Alb i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 RE S E R V E S A N D D E F E R R A L S A.1 5 Pa g e 1 o f 2 IN T E R S T A T E JU R I S S e c l a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s o r t Ca r r i e r C o m m o n L i n e B& C In t e r - TO T A L Ch a n Te r m CM ; ~ ~ r m CM i ~ , . C i l S~ ~ ~ i n 9 Dir ( ~ s s t Su r ~ ~ ~ r g e Ac c e s s Tr a n s m i s s i o n Ta n d e m S w Pa y BF P Re c o r d pr~ ~ ~ s s ex c ~ n g e LI N E DE S C R I P T I O N SO U R C E a b h fI In Ik I 'm ' AP P O R T I O N M E N T F A C T O R S I 12 1 1 0 S u p p o r t As s e t s D i s t r A- 4 , L n 8 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0. 4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % 2 2 2 1 0 C O E S w i c h i n g O i s t r A-2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % - 3 2 2 2 0 C O E O p e r a t o r D i s t r A-5 , L n 1 6 - - . 4 2 2 3 0 C O E T r a n s m i s s i o n D i s t r A-5 , L n 7 2 10 0 . 0 0 0 0 % 39 . 3 8 3 0 % 2. 4 2 9 9 % - 30 , 4 6 1 3 % - 21 . 7 2 5 7 % 5 2 3 1 0 l O T D i s t r A-6 , L n 1 5 . - 62 4 1 0 C & W F D i s t r A-7 , L n 4 0 10 0 . 0 0 0 0 % 16 . 5 5 6 2 % 1.9 1 5 1 % - 47 . 0 0 5 5 % 34 . 5 2 3 3 % 7 G S F , C O E , I O T , C & W F , E q A c s ( L S ) A-2 , L n 5 3 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0. 4 9 8 3 % 1.0 2 5 1 % 25 . 9 8 3 8 % . - 31 . 4 0 8 4 % 24 . 1 6 5 8 % 8 2 6 8 0 C a p i t a l L e a s e s D i s t r A.e , L n 1 8 - . - - - 9 2 6 8 0 L e a s e h o l d I m p r o v e D i s t r A-B , L n 2 9 - - 10 2 0 0 5 T e l e c o m P L t A d u s b n e n t A.. L n 1 4 - . RE S E R V E S & D E F E R R A L S A P P O R T I O N M E N T 11 1 5 0 0 o t h e r J u r i s A s s e t s - N e t Ln 1 1 a * 1 - . 12 3 1 0 0 A c e u m D e p r - 8 u p p o r t A s s e t s Ln 1 2 a * 1 1, 1 4 9 , 9 7 6 19 4 , 7 9 2 5,7 3 1 11 , 7 8 9 29 8 , 5 7 5 36 1 , 1 8 9 27 7 , 9 0 1 - 13 ..O E S w l c h i n g Ln 1 3 a " 2 4,0 3 7 , 6 9 8 - 4,0 3 7 , 6 9 8 14 ..O E O p e r a t o r Ln 1 4 a * 3 . 15 ..O E T r a n s m i s s i o n Ln 1 5 a * 4 2,2 6 2 , 5 0 0 88 7 , 1 0 3 54 , 7 3 5 - 68 6 , 1 4 0 62 4 , 5 2 2 16 -l O T Ln 1 6 a * 5 - 17 -C & W F Ln 1 7 a * 6 3,7 1 6 , 2 1 8 61 5 , 2 6 3 71 , 1 6 8 1,7 4 6 , 8 2 5 1,2 8 2 , 9 6 2 . 18 T O T A L AC C U M U L A T E D D E P R E C I A T I O N Ln 1 2 . . 1 7 11 , 1 5 6 , 3 9 1 1,6 9 7 , 1 5 7 60 , 4 6 5 82 , 9 5 6 4,3 3 6 , 2 7 3 2,7 9 4 , 1 5 4 2, 1 8 5 , 3 8 5 - - 19 3 2 0 0 A c c u m D e p r P r o p e r t H e l d 20 Fo r F u t u r e T e l e c o m U s e Ln 2 0 a * 7 . 21 3 4 0 0 A c c u m A m o r t T a n g i b l e 22 Ca p i t a l L e a s e s Ln 2 2 a * B 23 Le a s e h o l d I m p r o v Ln 2 3 a * 9 24 T O T A L AC C U M U L A T E D A M O R T . T A N G I B L E Ln 2 2 . . 2 3 - - - 25 3 5 0 0 A c c u m A m o r t - l n t a n g i b l e Ln 2 5 a * 1 26 3 6 0 0 A c c u m A r n r t - o e r Ln 2 6 a * 1 0 . 27 4 0 4 0 C u s t o m e r D e p o s i t Ln 2 7 a * 7 3,4 9 9 59 3 17 36 90 8 . - 1,0 9 9 84 5 28 Dir e c t A s s i 9 n m e n t Ln 2 8 a * 7 - - 29 T O T A L C U S T O M E R D E P O S I T S Ln 2 7 . 2 8 34 9 9 59 3 17 36 90 8 - 10 9 9 - 84 5 Mo s s A d a m s , L L P Pro p r i e t a r y I n f o r m a t i o n 20 of 26 41 1 3 1 2 0 0 9 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 RE S E R V E S A N D D E F E R R A L S A~ 1 5 Pa g e 2 o f 2 IN T E R S T A T E JU R I S S e e l a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s o r t Ca r r i e r C o m m o n L i n e S& C In t e r . T~ : ~ L Ch a n T e r m CM ; ~ : r m CM i : , a c i i S~ ~ i n 9 Di r ¡ ~ s s t Su r ~ ~ ~ r g e Ac e e s s Tra n s m i s s i o n Ta n d e m S w Pa y Sii P R~ ~ : d pr ~ ~ ~ s s ex c l o ~ n g e LI N E DE S C R I P T I O N SO U R C E I. h i Ii' I. ' AP P O R T I O N M E N T F A C T O R S 30 2 1 1 0 S u p p o r t Ass e t s O i s l r A-4 , L n 8 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1. 0 2 5 1 % 25 . 9 8 3 8 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % . 31 2 2 1 0 C O E S w i t c h i n g D i s t r A.2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 32 2 2 2 0 C O E O p e r a t o r D i s t r A- 5 , L n 1 6 . . 33 2 2 3 0 C e E T r a n s m i s s i o n O i s t r A- 5 , L n 7 2 10 0 . 0 0 0 0 % 39 . 3 8 3 0 % 2.4 2 9 9 % . 30 . 4 8 1 3 % 27 . 7 2 5 7 % . 34 2 3 1 0 l O T D i s t r A- 6 , L n 1 5 . 35 2 4 1 0 C & W F D i s t r A- 7 , L n 4 0 10 0 . 0 0 0 0 % 18 . 5 5 8 2 % 1. 9 1 5 1 % 47 . 0 0 5 5 % 34 . 5 2 3 3 % 36 2 0 0 1 T e l P i t i n B v e D i s t r A- 2 , L n 1 5 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 6 3 6 % 31 . 4 0 8 4 % 24 . 1 6 5 8 % 37 B i g T h r e e E x p e n s e s D l s t r A~ , L n 6 10 0 . 0 0 0 0 % 18 . 5 2 8 0 % 0.5 5 1 9 % 0.8 4 0 5 % 21 . 0 6 5 6 % 27 . 6 1 5 4 % 27 . 7 5 2 3 % 3.1 n 2 % 2.4 7 4 1 % 38 G S F C O E l O T C & W F E o A c s ( L S ' A- 2 L n 5 3 10 0 . 0 0 0 0 % 16 . 9 3 8 8 % 0.4 9 8 3 % 1.0 2 5 1 % 25 . 9 S 3 6 % . 31 . 4 0 8 4 % . 24 . 1 6 5 8 % RE S E R V E S & D E F E R R A L S A P P O R T I O N M E N T 39 4 1 0 0 N e t Cu r De f O p I n c Ta x e s 40 Su p p o r t A s s e t s Ln 4 0 a * 3 0 . 41 CO E - 8 w i t c h l n g Ln 4 1 a * 3 1 . . 42 CO E . . p e r a t o r Ln 4 2 a " 3 2 . 43 CO E - T r a n s m i s s i o n Ln 4 3 a * 3 3 . 44 lO T Ln 4 4 a " 3 4 . 45 C& W F Ln 4 5 a * 3 5 . 46 No t C l a s s i f i e d b y A c c o u n t Ln 4 6 a " 3 6 . 47 T O T A L N E T C U R D E F O P I N C T A X E S Ln 4 0 . . 4 6 . . 48 D i s t r i b u t i o n o f L i n e 4 8 Ln 4 7 / 4 7 a . . 49 4 3 1 0 O t h e r L o n g - T e r m l i a b i l t i e s Ln 4 9 a * 3 8 98 , 9 0 0 16 , 7 5 2 49 3 1,0 1 4 25 , 6 7 8 31 , 0 6 3 23 , 9 0 0 50 4 3 4 0 N e t N o n c u r r n t D e f T a x e s 51 Su p p o r t A s s e t s Ln 5 1 a " 3 0 . 52 CO E . . w i h i n g Ln 5 2 e * 3 1 53 CO E . . p e r a t o r Ln 5 3 a * 3 2 54 CO E - T r a n s m i s s i o n Ln 5 4 a * 3 3 55 In f o O r i g r r e r m E q u i p Ln 5 5 a * 3 4 . 55 C& W F Ln 5 6 a * 3 5 . 57 No t C l a s s i f i e d b y A c c Ln 5 7 a * 3 6 30 1 , 4 7 3 51 , 0 6 6 1,5 0 2 3, 0 9 0 78 , 2 7 3 94 , 6 8 8 72 , 8 5 3 58 T O T A L N E T N O N C U R R E N T D E F T A X E S Ln 5 1 . . 5 7 30 1 , 4 7 3 51 , 0 6 6 1,5 0 2 3, 0 9 0 78 , 2 7 3 . 94 , 6 8 8 . 72 , 8 5 3 . 59 4 3 6 0 O t e r D e f e r r e d C r e d i t N e t Ln 5 9 a * 3 8 . . 60 4 3 7 0 O t h e r J u r i s L i a b i l i t i e s 61 & D e f e r r e d C r e d i t - N e t Ln 6 1 a * 3 8 . AL L O W / D I S A L L O W A N C E S A P P O R T I O N M E N T 62 A c c u m D e p r & A m o r t A n o w / D i s a l l o w Ln 6 2 a " 3 8 . 63 Dir e c t A s s i g n m e n t Ln 6 3 a " 3 8 64 T O T A L A C C D E P R / A M O R T A L W / Q I S A L L O W Ln 6 2 . . 6 3 Mo s s A d a m s , L L P Pr o p r i e t r y I n f o r m a t i o n 21 of 26 Al b i o n T e l e p h o n e C o m p a n y Stu d y A r e a : 4 7 2 2 1 3 Stu d y Y e a r : 2 0 0 7 IN T R S T A T E~TO T A L 41 1 3 / 0 0 9 DIS T R I B U T I O N F A C T O R S A-1 6 LI N E DE S C R I P T I O N Sp e c i a l A c c e s s Ch a n T e r m C M - T e r m C M - F e c i ! b) ( c \ ( d Lo c a l Sw i t c h i n g . 1 6 6 2 0 T e l e p h o n e O p e r a t r S e r v i c e . 2 S t d W o r k S e c o n d s - M a n u a l B o a r d s 3 S W S - M a n u a l B o a r d s % 4 S t d W o r k S e c o n d s - T S P S 5 S W S - T S P S % 6 S t d W o r k S e c o n d s - O p e r a t o r s 7 S W S - O p e r a t r % 8 O p e r a t r S e r v c e s U n d e r C o n t r a c t 9 T r a n s p o r t 10 I n f o r m a t o n 11 l o c a l S w i t h i n g 12 A n O t h e r 13 T o t a l 14 O p e r a t o r S e r v i c e s U n d e r C o n t r a c t % 15 6 6 2 0 L o c a l B u s i n e s s O f f c e 16 E U S e r v i c e O r d e r P r o c e s s i n g 17 l E C ' s o w n T o l l S e r v i c e 18 C o n c e r n i n g L X C ' s T o l l s e r v i c e 19 E U S O P C o n t a c t % 20 E U P a y m e n t & C o U e c t i o n 21 l E C ' s O w n T o l l B i l l i n g 22 B i l i n g o n B e h a l f o f I X C 23 E n d U s e r e C i C h a r g e s 24 E U P & C % 25 E U B i l i n g I n q u i r y 26 l E C ' s O w n T o l l B i l l n g 27 B i ß i n g o n B e h a l f o f I X C 28 E n d U s e r e C i C h a r g e s 29 E U B I % 30 L X C S e r v i c e O r d e r C o n t a c t s 31 M s g T o l l a n d A c c e s s S e r v i c e 32 B i l i n g a n d C o l l e c t o n S e r v i c e 33 L X C S O C o n t a c t % 34 I X C B i l l e d R e v e n u e 35 T o t a l e x c l u d i n g B & C 36 B i l i n g a n d C o l l e c t i o n s 37 I X C P & C % 38 ¡ X C B l I l n g I n q u i r y C o n t a c t s 39 T o t l E x c l u d i n g B & C 40 B i l l n g a n d C o l l e c i o n s 41 I X C 8 1 C o n t a c t % 42 P u b l i c T e l e p h o n e R e v e n u e 43 L i m i t d P u b l i c T e l e p h o n e s 44 P u b l i c I n t e r e s t P a y s t i o n s 45 I X C 8 1 C o n t a c t % pro p r i e t a r y I n f o r m a t i o n SO U R C E Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s I 10 Re c o r d s 10 0 Re c o r d s 10 0 . 0 0 0 0 % Re c o r d s Re c o r d s I 10 0 Re c o r d s 10 0 . 0 0 0 0 % Re c o r d s Re c o r d s I 10 0 Re c o r d s 10 0 . 0 0 0 0 % I 10 0 Re c o r d s Re c o r d s 10 0 . 0 0 0 0 % I 10 0 Re c o r d s Re c o r d s 10 0 . 0 0 0 0 % 10 0 Re c o r d s Re c o r d s 10 0 . 0 0 0 0 % 10 0 Re c o r d s Re c o r d s 10 0 . 0 0 0 0 % In f o r m a t i o n Dl r A s s t S u r c h a r g e Eq u a l Ac c e s s h Mo s s A d a m s , L L P 22 o f 2 6 41 1 3 1 0 0 9 Alb i o n T e l e p h o n e C o m p a n y St u d y A r e a : 4 7 2 2 1 3 St u d y Y e a r : 2 0 0 7 SE P A R A T I O N I N P U T S A N D F E D R A L I N C O M E T A X A D J U S T M E N T A N A L Y S I S A-1 7 Lin e Ye a r So u r c e To t a l To t a l S p e c i a l Ac c e s s Re v e n u e R e u i r e m e n t s S e c i a l A c c e s s Sw i h e d A c c e s s No n Ac c e s Ch a n n e l Ch a n n e l M i l e a g e C h a n n e l M i l e a g In f o r m a t i o n BB C Te r m i n a t i o n Te r m i n a t i o n Fe c i i Bu r c h a r e Tr e n s o r t IX 1.0 0 2 . 1 8 0 32 . 2 6 0 1.5 1 4 . 1 0 7 15 1 . 4 5 0 Ad j u s t e d R e v e n u e R e q u i r e m e n t Ln 6 + L n 9 + l n 1 2 5,5 1 8 , 1 2 1 1.0 8 8 . 8 4 9 A-1 , L n 5 A-1 , L n 4 6 - 4 5 Aw 1 , L n 4 5 I( L n l 4 - 1 5 - 1 6 ) ' 1 3 ) - 1 6 31 1 , 2 7 9 Av e r a g e N e t I n v e s t m e n t A~ 1 , L n 3 9,0 8 4 , 5 3 7 Ex p e n s e & o t e r T a x e s Sta t e I n c o m e T a x Un c o l l e c t i b l e s Al l o c a t e d L i n e P o r t R e v e n u e R e q u i r m e n t s Al l o c a t e d T I C R e v e n u e s To t a l E x p e n s e & O t h e r T a x e s A- 1 , L n 2 1 A- 1 , L n 1 7 A- 1 , L n 2 2 A- 1 , L n 3 1 A- 1 , L n 3 5 4, 1 7 6 , 6 8 8 15 , 2 8 7 4,1 9 1 , 9 7 5 7,1 4 4 44 3 , 9 2 0 In c o m e f r m I n t e r e s t C h a r g e d t o C o n s t r u c t i o n A- l , L n 2 6 10 I n c o m e A d j u s t m e n t f o r F I T A- 1 7 , l n 2 6 11 F I T Ta x Cr e d i t I A-1 , L n 4 5 + 5 8 LN DE S C R I P T I O N SO U R C E TO T A L CO M P A N Y ST E P A - D e t e r m i n e E f f c t i v e T a x R a t e 12 E f f c t i v e F I T R a t e 13 G r o s s - p F a c t o r 14 R e h i m o n I n v e s t m e n t 15 I n c o m e A d j u s t m e n t f o r F I T 16 F I T T a x C r e d i t 17 F I T A m o u n t a t E C ' s E f f c t i v e F I T R a t e A-l , L n 5 0 / 4 7 26 . 8 2 0 0 % 36 . 8 4 9 4 % 1, 0 2 2 , 0 1 0 17 2 , 6 6 6 ST E P B - D e t e r m i n e E C ' s T a x A l l o w a n c e b a s e d u p o n N E C A S e t t l e m e n t S y s t e m C a l c u l a t i o n 17 M a x i m u m T a x R a t e P e r N E C A R e c o r d s I 3 5 . 0 0 0 0 % 18 G r o s s - u p F a c t r 5 3 . 8 4 6 2 % 19 F I T Ba s e Am o u n t l n 1 4 - 1 5 - 1 6 8 4 9 , 3 4 4 20 F I T a t M a x i m u m T a x R a t 4 5 7 , 3 3 9 ST E P C - G r o s s u p o f D i f f r e n c e B e t w e n E f f c t e R a t e a n d M a x i m u m R a t e 21 D i f f r e n c e I n I n c o m e T a x A m o u n t s L n 1 7 - 2 0 22 G r o s s u p o f D i f f r e n c e i n T a x A m o u n t s L n 2 1 1 1 8 23 A m o u n t t o B e R e p o r t e d a s I n c o m e Ad j u s b n e n t f o r F I T L n 1 5 + 2 2 14 6 , 0 6 0 27 1 , 2 5 4 44 3 , 9 2 0 28 , 4 6 7 52 , 8 6 7 82 , 1 1 5 63 4 1,1 7 7 2,0 3 7 2,1 0 5 3,9 0 9 5,6 7 9 10 , 0 7 0 18 , 7 0 1 83 , 5 3 2 59 , 6 0 9 11 0 , 7 0 2 16 4 , 9 3 4 45 , 1 7 6 83 , 8 9 8 12 5 , 6 2 4 ST E P 0 - V e r i f i c a t i o n o f L i n e 1 2 C o m p u t a t i o n 24 ( ( I n 3 - L n 1 2 - L n 5 ) x L n 7 ) - L n 5 31 1 . 2 7 9 60 , 6 6 8 1.3 5 0 4.4 8 6 21 . 4 8 1 12 7 , 0 3 7 96 . 2 7 7 In c o m e A d j u s t m e n t f o r F I T : R e c a l c u l a t i o n 25 I n t e r s t a t e Af t r Ta x I n c o m e ( A l , I n . 2 0 ) 26 I n t e r s t a t e F I T ( A l , I n . 4 5 ) Ad j u s t m e n t (l n l + Ln 2) * . 3 5 - l n 2 84 9 , 3 4 4 31 1 2 7 9 1,1 6 0 , 8 2 4 27 1 , 2 5 4 0.3 5 Co m m o n L i n e Tr a f f c S e n s i t e - S W Tr a f f c S e n s i t i v e - S P BB C Fi x e d Mis c . I n c o m e In c o m e A d j . FI T Ad j u s t m e n t Ch a r g e s Ad l u s t m e n t (c o l s 2 ' " 3 - 4 (1 ) (2 ) (3 ) (4 ) 15 A1 I n . 4 5 A1 / n . 1 1 A1 I n . 1 9 96 , 2 7 7 83 , 8 9 8 41 , 7 2 6 12 5 , 6 2 4 14 8 , 4 9 7 12 9 , 4 0 3 99 , 0 6 2 22 8 , 4 6 5 68 , 5 0 4 57 , 9 5 3 31 , 8 7 8 89 , 8 3 1 31 1 , 2 7 9 27 1 , 2 5 4 17 2 , 6 6 6 44 3 . 9 2 ~ I OK 27 1 . 2 5 4 Ad j u s t m e n t b y P o o l : To t a l Ch e c k s u m Mo s s A d a m s , L L P Pro p r i e t a r y I n f o r m a t i o n 23 0 f 2 6