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Home My WebLink About2012Annual Report.pdf•azc 46--r Communications p 208-673-5335 I f 208-673-6200 I e atc@atcnet.net I a 225 W. N $ flfn!.1P 3311 • April 9, 2013 Idaho Public Utilities Commission Attn: Terri Carlock P0 Box 83720 Boise, ID 83720-0074 Dear Ms. Carlock: Enclosed please find the Annual Report of Small Telephone Companies for Albion Telephone Company, Inc. If you have any questions or concerns, please feel free to call me at 673-5335. Sincerely, Jii lie Laumb Accounting Manager ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31, 2009 COMPANY INFORMATION Exact name of utility: Albion Telephone Company, Inc. Address of principal office: 225 West North Street. P.O. Box 98 Albion, ID 83311 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 officer 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, ID 83311 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 controlling 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, ID 83311 Vice-President Richard L. Redman P.O. Box 14 Albion, ID 83311 Secretary Dana Redman P.O. Box 22 Albion, ID 83311 Treasurer Barry Redman 266 S. 950 E. Dec10, ID 83323 Rev 3/02 Page 1 DIRECTORS List the name of each person who was a member of the Board of Directors at any given time during the year: (Fees related to meetings only.) Term Expired or Current Term Meetings Attended Fees Paid Name Will Expire This year During Year and Address ODeen K. Redman NA 4 3600 Richard L. Redman NA 4 3600 Dana Redman NA 4 3600 Barry Redman NA 4 3600 Name of Chairman of the Board: ODeen Redman Name of Secretary (or Clerk) of Board: Darla Redman Number of Meetings of the Board during the year: 4 MANAGERS List the name of each person who performed management duties for the Company during the year, and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts.) Name Title Wages and Bonuses Paid ODeen K. Redman President Confidential Richard L. Redman Vice-President/General Manager Confidential Rev 3/02 Page 2 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 property of the utility; 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 3102 Page 3 BALANCE SHEET Assets and Other Debits balance beginning Of Year I itle ot Account Current Assets 1120 Cash and Equivalents 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 1181 Accts. Rec. Allow. -Telecommunications 1190 Other Accounts Receivable 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 1280 Prepayments 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 1402 Investment in Nonaffiliated Companies 1406 Nonregulated Investments 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill Depreciation and Amortization Accounts 3100 Accumulated Depreciated 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 3600 Accumulated Amortization - Other TOTAL ASSETS balance Increase at Eno or OT Year uecreasej 2007187 - jcj'4eI. !4eIII - •iwi 05142 -1 196TW - 50837T I:IIIIM 3582310' - - 688638' 180246 5754 - —7N7178 51 - LeIeIIe - I*1*I0II - 95555 475109 I*I*IsIe - —47620 :4797F 1 -29494663 - -30526844 - 401321E1! K'Z1. 4M4455 Si 17977649 18158614 180965 Rev 3/02 Page 4 BALANCE SHEET Liabilities & Stockholders' Equity Balance Beginning Title of Account of Year Current Liabilities 4010 Accounts Payable 314739 4020 Notes Payable 4030 Advance Billings and Payments 264000 4040 Customer Deposits 7518 4050 Current Maturities - Long -Term Debt 568700 4060 Current Maturities - Capital leases 28034 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 49567 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilities 593147 Long-Term Debt 4210 Funded Debt 5095705 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 280132 4260 Advances from Affiliated Companies 4270 Other Long-Term Debt 302058 Other Liabilities& 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. Income Taxes 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 132330 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 40200 4520 Additional Paid-In Capital 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings 10301519 TOTAL LIAB. & OTHER CREDITS 17977649 Balance Increase at End or of Year (Decrease) 262610 -52129 284000 20000 5790 -1728 600503 31803 5292 0 43518 -6049 -4375 588772 4561788 -533917 0 0 0 0 -280132 -86933 215125 22918 -109412 40200 1 0 11528098 1226579 18158614 180965 Rev 3/02 Page 5 ANALYSIS OF TELECOMMUNICATIONS PLANT IN SERVICE TOTAL Company Basis Balance Plant Beginning Additions Retired of Year During year or Sold Analysis of Telecommunications Plant in Service 2111 Land 110046 2112 Motor Vehicles 101077 2384 2113 Aircraft 242121 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 490699 13226 2121 Buildings 1638213 62504 1555 2122 Furniture 185190 5226 2123 Office Equipment 9186 2124 General Purpose Comput€ 363899 31406 23549 2211 Analog Electronic Switchin 0 2212 Digital Electronic Switchinç 4065579 82508 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 249350 2232 Circuit Equipment 9579747 557370 724208 2311 Station Apparatus 2321 Customer Premises Wiring______________ 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal 14618 10840 2362 Other Terminal Equipment 32439 32439 2411 Poles 101758 2421 Aerial Cable 392914 2422 Underground Cable 745731 2423 Buried Cable 19993248 965583 164908 2424 Submarine Cable 2426 Intrabuilding Network CabI 19327 2431 Aerial Wire 43160 2441 Conduit Systems 2681 Capital Leases 2682 Leasehold Improvements 2690 Intangibles TOTAL PLANT ACCOUNi 38378302 1637699 1040007 Transfers Balance and End Adjustments of Year -3500 106546 103461 242121 503925 -14870 1684292 190416 9186 371756 0 -1892 3981179 249350 -76063 9336846 3778 0 101758 392914 745731 -26259 20767664 19327 43160 -122584 38853410 Rev 3/02 Page 6 ANALYSIS OF TELECOMMUNICATIONS PLANT ACCOUNTS IDAHO Operations Only Balance Plant Transfers Balance Beginning Additions Retired and End of Year During Year or Sold Adjustments of Year Analysis of Telecommunications Plant in Service 2111 Land 110046 0 0 -3500 106546 2112 Motor Vehicles 101077 2384 0 0 103461 2113 Aircraft 242121 0 0 0 242121 2114 Special Purpose Vehicles 0 0 2115 Garage Work Equipment 0 0 0 2116 Other Work Equipment 490699 13226 0 0 503925 2121 Buildings 1638213 62504 1555 -14870 1684292 2122 Furniture 185190 5226 0 0 190416 2123 Office Equipment 9186 0 0 0 9186 2124 General Purpose Computers 363899 31406 23549 0 371756 2211 Analog Electronic Switching 0 0 0 0 0 2212 Digital Electronic Switching 4065579 0 82508 -1892 3981179 2215 Electro-Mechanical Switching 0 0 0 2220 Operator Systems 0 0 0 2231 Radio Systems 247074 0 0 0 247074 2232 Circuit Equipment 9579747 557370 724208 -76063 9336846 2311 Station Apparatus 0 0 0 2321 Customer Premises Wiring 0 0 0 2341 Large Private Branch Exchanges 0 0 0 2351 Public Telephone Terminal Equipment 14618 0 10840 0 3778 2362 Other Terminal Equipment 32439 0 32439 0 0 2411 Poles 101758 0 0 0 101758 2421 Aerial Cable 392914 0 0 0 392914 2422 Underground Cable 745731 0 0 0 745731 2423 Buried Cable 19944640 965583 164908 -26259 19944639 2424 Submarine Cable 0 0 0 2426 Intrabuilding Network Cable 19327 0 0 0 19327 2431 Aerial Wire 43160 0 0 0 43160 2441 Conduit Systems 2681 Capital Leases 2682 Leasehold Improvements 2690 Intangibles TOTAL PLANT ACCOUNTS 38327418 1637699 1040007 -122584 38028109 825301 Rev 3102 Page 7 ANALYSIS OF ENTRIES IN ACCUMULATED DEPRECIATION Account 3100 TOTAL Company Basis Balance Credits Retirements Balance Beginning Depreciation During and End of Year Rate* Year Adjustments of Year Analysis of Entries in Accumulated Depreciation 2112 Motor Vehicles 129048 25.00% 129048 2113 Aircraft 242121 10.00% 242121 2114 Special Purpose Vehicles 454848 12.50% 49077 503925 2115 Garage Work Equipment 2116 Other Work Equipment 2121 Buildings 755389 3.00% 49480 804869 2122 Furniture 183816 12.50% 6600 190416 2123 Office Equipment 9187 20.00% 9187 2124 General Purpose Computers 364489 20.00% 15628 23549 356568 2211 Analog Electronic Switching 0 12.50% 0 2212 Digital Electronic Switching 3022068 12.50% 484061 82507 3423622 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 195033 20.00% 49415 244448 2232 Circuit Equipment 8059280 10.00% 837823 720418 8176685 2311 Station Apparatus 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 14619 23.00% 10840 3779 2362 Other Terminal Equipment 32440 20.00% ____ 32439 1 2411 Poles 101758 7.50% 101758 2421 Aerial Cable 338574 8.60% 5073 343647 2422 Underground Cable 429160 6.50% 48473 477633 2423 Buried Cable 15100344 6.50% 521213 164908 15456649 2424 Submarine Cable 2426 Intrabuilding Network Cable 19327 20.00% 19327 2431 Aerial Wire 43160 14.60% 43160 2441 Conduit Systems TOTAL 29494661 2066843 1034661 30526843 *please list individual depreciation rate for each account. Rev 3/02 Page 8 ANALYSIS OF ENTRIES IN ACCUMULATED DEPRECIATION Account 3100 IDAHO Operations Only Balance Credits Retirements Balance Beginning Depreciation During and End of Year Rate* Year Adjustments of Year Analysis of Entries in Accumulated Depreciation 2112 Motor Vehicles 129048 25.00% 0 0 129048 2113 Aircraft 242121 10.00% 0 0 242121 2114 Special Purpose Vehicles 454848 12.5076 49077 0 503925 2115 Garage Work Equipment 0 0 2116 Other Work Equipment 12.50% 0 2121 Buildings _____ 755389 30%.0 49480 0 0 4- 8-6V 804869 2122 Furniture 183816 12.5076 6600 0 190416 2123 Office Equipment 9187 20.00% 0 0 9187 2124 General Purpose Computers 364489 20.00% 15628 23549 356568 2211 Analog Electronic Switching 0 12.50% 0 0 0 2212 Digital Electronic Switching 3022068 12.50% 484061 82507 3423622 2215 Electro-Mechanical Switching 0 0 2220 Operator Systems 0 0 2231 Radio Systems 192757 20.00% 49415 0 ____ 242172 2232 Circuit Equipment 8059280 10.00% 837823 720418 8176685 2311 Station Apparatus 0 2321 Customer Premises Wiring 0 2341 Large Private Branch Exchanges 0 2351 Public Telephone Terminal Equipment 14619 23.00% 0 10840 3779 2362 Other Terminal Equipment 32440 20.00% 0 32439 1 2411 Poles 101758 7.50% 0 0 101758 2421 Aerial Cable 338574 870% 5073 0 343647 2422 Underground Cable 429160 6.50% 48473 0 477633 2423 Buried Cable 15051738 6.50% 521213 164581 15408370 2424 Submarine Cable 0 0 2426 Intrabuilding Network Cable 19327 20.00% 0 , 0 _____ 19327 2431 Aerial Wire 43160 14.60% 0 0 43160 2441 Conduit Systems TOTAL 29443779 2066843 1034334 30476288 *please list individual depreciation rate for each account. Rev 3/02 Page 9 INVESTMENTS Report below the investments in Accounts 1401, 1402 and 1406. Identify each investment as to the account in which included. Minor amounts in Account 1406 may be grouped by classes. Book Cost of Book Cost of Investments Investments Disposed of Held at Description Date Acquired This year End of Year Telsat 0 CoBank Patronage 277937 Redban Investment 49638 Syringa Networks 3735305 Raft River Patronage 19893 Lost River Patronage 12416 Syringa Electronic Equip. 280351 Syringa Fiber 254484 Independent Cable Systems 1991 105 Electronics -4943 ICS Cable 159168 Spec Access Eq Non-Reg -256 Internet Equipment 16367 Declo Wireless DSL Elec 0 Declo Wireless DSL Cable 0 Voip Equipment 0 Syringa Wireless 0 Synnga Wireless Tower 0 Syringa Wireless Elec 0 Nextphone Website 0 Redban Goodwill 0 DSL Inventory 0 Syringa Wireless Inventory 3919 Voip Inventory 0 Totals 4806269 RECEIVABLES 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 Amount at End of Year Notes Accounts Name of Company Receivable Receivable Customers 482558 Qwest 21 CABS 126672 AT&T 0 NECA 372760 Red Ban 13276 Idaho USF 77417 Syringa Network 100 Misc. 1489 Totals 1047699 Rev 3/02 Page 10 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Interest Name of Creditor Date of Note Rate Due Date Face Amount Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100 00 Name of Creditor Amount Federal Excise Tax 13455 Misc 179696 Qwest pmts to Arapahoe Tel 0 Syringa Wireless 40983 ATC Long Distance 10940 State USF Surcharge 600 Dish Network 5390 911 Payable 3978 Conseco -804 Franchise Fee - ICS 8372 Totals 262610 0 Rev 3/02 Page 11 LONG - TERM DEBT Accounts 4210, 4240, 4250,4260, 4270 and 4310 List the required data for each obligation included in these accounts, grouping them by account number and showing totals for each account. If any obligations mature serially or otherwise at various dates, give particulars in a note. Date Date Face Premium/ Discount Class & Series of of Amount Outstanding Year Interest for year of Obligation Issue Maturity Authorized Year-End Total Amortized Rate Amount RUS Notes Various Various 9212887 5075678 2% to 5% 238620 CoBank 10-1996 12-2011 10380240 0 Variable Rich Redman Dec-09 1-2013 101405 43620 5.00% 2733 Odeen Redman Feb-10 2-2013 420568 258118 5.00% 14458 Wells Fargo Capital Lease Feb-10 2-2013 83478 2535.34 16.20% 12.41 CoBank Capital Lease Nov-1 0 11-2012 648266.94 4.31% Rev 3/02 Page 12 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. Number Outstanding per of Shares Par Value Balance Sheet Class & Series of Stock Authorized per Share Shares Amount Common 10000 4.02 Rev 3/02 Page 13 INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 15) 4703487 4671069 Total Operating Expenses (from page 17) 7583733 7549959 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 535 535 7240 Operating Other Taxes 92517 92517 7250 Provision for Deferred Operating Income Taxes-Net 0 0 7200 Operating Taxes (Total) 93052 93052 7310 Dividend Income 7320 Interest Income 25791 25791 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 0 0 7350 Gains/Losses from the Disposition of Certain Property 0 0 7360 Other Nonoperating Income 15147 15147 7370 Special Charges 7300 Nonoperating Income and Expense 40938 40938 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 255103 255103 7520 Interest Expense-Capital Leases 6730 6730 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions 0 0 7500 Interest and Related Items 261833 261833 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 1437350 1437350 AMOUNT TRANSFERRED TO RETAINED EARNINGS -1756843 -1755487 Rev 3/02 Page 14 OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 1280568 1272401 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 218238 218238 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 416527 414549 5082 Switched Access Revenue (Interstate) 1293661 1276127 5083 Special Access Revenue 706428 706428 5084 State Access Revenue (Intrastate) 696646 691907 Long Distance Network Services Revenues 5100 Long Distance Message Revenue -All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 36002 36002 5250 Corporate Operations Revenue 5261 Special Billing Arrangements Revenue 5262 Customer Operations Revenue 1309 1309 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 0 0 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue 68397 68397 UncoIIectibIe Revenues 5301 Uncollectible Revenue - Telecommunications -14289 -14289 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES 4703487 4671069 Please identify the following revenues NECA USE $____2037625.00 To what account were they booked 5082.12 State USF $464502 00 To what account were they bookec 5084.50 Rev 3/02 Page 15 OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 0 0 6112 Motor Vehicle Expense 69407 68976 6113 Aircraft Expense 3601 3579 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 0 0 6120 General Support Expenses 0 0 6121 Land and Building Expenses 225245 223847 6122 Furniture and Artworks Expense 0 0 6123 Office Equipment Expense 40643 40391 6124 General Purpose Computers Expense 71364 70921 6210 Central Office Switching Expenses 274033 272332 6211 Analog Electronic Expense 6212 Digital Electronic Expense 0 0 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 890929 885410 6231 Radio Systems Expense 0 0 6232 Circuit Equipment Expense 120402 119644 6310 Information Origination/Termination Expense 0 0 6311 Station Apparatus Expense 0 0 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 0 0.00 6362 Other Terminal Equipment Expense 0 0 6410 Cable and Wire Facilities Expenses 2282 2953 6411 Pole Expense 0 6421 Aerial Cable Expense 15335 15240 6422 Underground Cable Expense 0 0 6423 Buried Cable Expense 1620621 1610560 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 3333862 3313851 Rev 3/02 Page 16 OPERATING REVENUES Item Total Company Idaho Only 3333862 3313851 Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 0 6512 Provisioning Expense 0 0 6530 Network Operations Expense 0 0 6531 Power Expense 116000 115280 6532 Network Administration Expense 80115 79618 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 109952 109282 6540 Access Expense 130014 129207 6560 Depreciation and Amortization Expenses 0 0 6561 Depreciation Expense-Telecom. Plant in Service 2066843 2066843 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses 2502924 2500229 Customer Operations Expense 0 6610 Marketing 0 0 6611 Product Management 0 0 6612 Sales 6613 Product Advertising 44777 44493 6620 Services 4232 863 6621 Call Completion Services 6622 Number Services 6623 Customer Services 527605 527605 Total Customer Operations Expense 576614 572961 Corporate Operations Expense 6710 Executive and Planning 6711 Executive 407350 404769 6712 Planning 6720 General and Administrative 442956 440127 6721 Accounting and Finance 168625 167580 6722 External Relations 110085 109388 6723 Human Resources 17585 17474 6724 Information Management 0 0 6725 Legal 23642 23492 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 90 89 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense 1170333 1162919 TOTAL OPERATING EXPENSES 7583733 7549959 Rev 3/02 Page 17 CENTRAL OFFICE DATA as of December 31, 2011 (unless otherwise indicated) Name of Central Office: Albion Telephone Company, Inc. Prefix (es): 349,638,645,673,698,824,827,527,554,588,766,767 Central Office Switch Type: Tekelec T7 Check all that apply: Check one: Check one: Stand Alone Electronic_ Host _X_ Analog_ Electro-Mechanical_ Remote_ Other: Soft SwitchX______ Access Line Capacity Access Lines in Use Design _I0000 Customer Lines _35I9____________ (Include Centrex, PAL, Semi-Pub.) Installed/Equipped _I 0000 Public Telephone Lines 2 Company Official Lines-103_ Company Test Lines-26— Classification of Customer Access Residence Business Multi- Single Line Multi- Single Line Total Line Multi- Subtotal Centrex Line Multi- Subtotal Residence I Party 1-Party Party Residence N A R I-Party I-Party Party Business & Business Beginning of Year 2732 2732 888 888 3620 New Connects 207 207 25 25 232 Disconnects 287 287 46 46 333 End of Year 2652 2652 867 867 3519 Foreign Exchange: Directory Listings: Dial Tone from this C.O.: Number of Customers with Nonpublished or Nonlisted:_425_ Dial Tone from another C.O.:_______ Custom Calling Number of customers with at least one feature: _I 565 Total number of features subscribed to: _1 8 Rev 3/02 Page 18 NUMBER OF CALLS COMPLETED BY CUSTOMERS DURING 2012 Average # Local Calls Toll Calls Originated (Total of all Carriers) of Customer Number Avg./ Avg.! Local Exchange Lines in Use (1000s) Line Intrastate Interstate Total Line 1 ALL 3570 114430 172776 287206 80 2 3 4 c 6 7 8 9 10 11 12 13 14 15 16 17 18 Rev 3/02 Page 19 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2011 CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA3I.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 4-1-12 Alternate method of notification Rule IDAPA 31 .41 .01 .403.02 Record of Complaints Number received by Company 0 Category of complaints (if known): Deposit Disputes Charges on Bill Denial/Termination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 CERTIFICATE State of Idaho ) )ss County of Cassia I, the undersigned Richard Redman, of Albion Telephone Company, Inc. located at 225 W. North Street, Albion, ID 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 utility; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utility 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 . (Chief Officer) (Officer in Charge of Accounts) Subscribed and Sworn to Before Me this 94z day of A (Year) citA State ~rIkrw tayublic Vnq -1. Wof 1 61 My Commission expires , (Year) Rev 3/02 gdk/excei/jneison/anuirpts/teiannuairpt Page 21 2O11 FORM I INPUT MASTER COMPANY NAME: Albion Telephone Company, Inc. L.... For The Year Ended: December 31, 2011 Seperated Results of Idaho Operations Total Idaho Interstate Operationi Intrastate Operation Operations MTh & WATS TOLL PLS MTS & WATS TOLL PLS FCC Account and Note Line Subject To Separans tio Switched Special Switched Special Local Description No. No. Access Access Total Access Access EAS (other) Total SUMMARY Operating Revenues 5OXX Local -Billed (1) 1. 1.575,703 - 1,575,703 1,575,703 -EAS Billed (1) 2. - - - -EAS Settlement (1) 3. - - - 608X Access-SLC (End User) (2) 4. 421,253 421,253 421,253 -Switched (TS*NTS) (2) 5, 6,289,685 5,612,527 5,612,527 677,158 677,158 -Special (2) 6. 907,336 845,055 845,055 62,261 62,281 51 X Toll -Message (3a) 7. - - - -Private Line (3b) 8. - - - -Settlement (3c) 9. - - - 52XX Misc. -Billing & Collection (4) 10. 17,896 - - ........ - 17,896 17,896 -Directory Advertising 11. - - - -Operating Rents 12. 30,752 - 30,752 30,752 -Other Misc. 13. 53,788 - 53,788 53,788 530X Less: Uncolleclible Rev. (-) 14. (3,198) - (3,198) (3,198) Total Revenues 15. 9,293,215 6,033,780 845,055 6,878,835 695,054 62,281 - 1,657,045 2,414,380 Operating Expenses 61XX-64XX Plant Specific Oper. (5a) 16. 2,855,782 1,030,263 361,158 1,391,421 475,013 76,361 40,988 871,999 1,464,361 65XX Plant Nonspecific Operations (5a) 17. 409,756 216,046 31,412 247,458 53,760 8,532 3,802 96,204 162,298 656X Depreciation & Amortization () 18. 2,579,754 948,318 340,829 1,289,147 419,934 67,442 32,178 771,053 1,290,607 66XX Customer Operations ,() 19. 679.212 302,979 3.278 306,257 121,968 2,776 - 248.211 372.955 67XX Corporate Operations ( 20. 1,721,254 701,673 150,793 852,466 289,655 32,158 19,868 527,107 868,788 -- Other Operating (5a) 21. - - - - - - - - - Total Expenses (5a) 22. 8,245,758 3,199,279 887,470 4,086,749 1,360,330 187,269 96,836 2,514,574 4,159,009 Operating Taxes: 7240 General Taxes 23. 116,418 43,604 11,808 55,412 20,208 3,207 1,429 36,162 61.006 7230 State/Local Inc. Tax (Current) 24. 104,057 40,270 11,469 51,739 17,088 2,411 1,231 31,588 52,318 7220 Federal Income Tax (Current) 25. 615,841 238,328 67,879 306,207 101,132 14,269 7,288 186,945 309,634 7250 Net Deferred Income Taxes 26. (477910) (18,541) (5,281) (23,822) (7,868) (1,110) (567) (14,544) (24,088) 7210 Net Investment Tax Credits 27. - - - Total Taxes - 28. 788.406 303,661 85,875 389,536 130,560 18,777 9,381 240,151 398,870 Net Operating Income 29. 259,051 2,530,840 (128,290) 2,402,550 (795,836) (143,765) (106,217) (1,097,680) (2,143,499) Page 1ot 6 14,340,980L SUMMARY (continued) 4,219,725 18.560,705 12,923,283 Average Rate Base 2001 Telecom. Plant in Service (5w 1. 40,362,547 21,801,842 7,221,763 , 1,146,091 510,705 2005 Plant Acquisition Adjustment - 3100 Less Accumulated Depr. (-) - 2. - .... .............. - (11,249,740) (518.638) (5,209,533) (996,208 (201.797i 132.025) ........ .... - _)294.679J (14271) (10 128.00) (361,114) - (5c) 3. - (27.878,168) (8.318.163J) _J, )40O.72,)] (2,931,577) (117,911 (16,628,428) (609.207) 34xx-36xx Accumulated Amort. (-) 4100-4340 Accum. Deferred Tax)-) (5) 4. 5. - (1.127.845) 1220 Materials and Supplies 4040 Customer Deposits 6 449,160 184512] (2743) 28,181 ] (718 183,093 91,148 14,172 i 4,227 156 520 266,067 7 (6,867) (3,157) (1,229) (19.,(_ (87) )2,199) (3,710) 4310 Other Long Term Liabilities 8 - - J .. - - - - - Equal Access Equipment (7) 9 Other Rate Base 10 893,363 343968 91,356 435,324 150.318 21,050 10,581 276,090 458,039 Total Average Rate Base - 11 12,692,190 6,118,531 1,289,056 7,407,587 2,050,670 152,885 216,476 2,864,572 5,284,603 PLANT IN SERVICE DETAIL 21XX General Support Facilities 1. 3,189,834 1,133361 333,483 1,466,844 570.733 90.575 40,361 1,021.321 1,722,990 22XXCentral Office Equipment: CAT 1-Operator Systems CAT 2-Tandem Switching )Alloc.) 3. - - - __________ 2. - - __________ CAT 2-Tandem Switching (Assign.) 4. - - - CAT 3-Local Switching 5. 2,538,407 2,157,646 - 2,157,646 _______________ _____________ ______________ 380,701 380,761 CAT 4.12 -Exch. Trunk (Joint Use) 6. 246,100 ___ - 246,100 246,100 T4.1 CA2-Exch.Trunk(Ded.Use) 7. 403,492 157,476 157,478 246,014 246,014 CAT4.13-Subscr.Line(JointUse) 8. 5,866275 1454,728 35,141 1,489,869 1.484,728 12,223 2,905,455 4,376,406 CAT 4.13-Subscr.Line(Ded.Use) 9. - - - - CAT 4.23-IX Trunk (Joint Use) 10. 770,399 597,416 11,838 609,254 156,592 4,583 161,145 CAT 4.23 -IX Trunk Ckt.(Bed.Use) 11. 2.227,734 - 2.186,833 2,186,833 40,901 1 40.901 CAT 4.3-Host/Remote Trunk Ckt. 12. 1.293,124 780,038 ________________ 780.038 204.456 308,630 513,086 Other COE 13. - - - TotalCOE 14. 13,345,531 4,989,828 2.391,290 7,381,118 1,815,776 303,691 246,100 3,598,846 5,964,413 23XX Information OrigjTerm. Equipment: __ CAT 1-Regulated CPE 15, - - - Other lOT 16. - - - Total lOT 17. - - - - - - - 24XXCable&WireFacilities: CAT1.3-SubscriberLine(Common) 18. 15,769,782 3,942,446 3,942,446 3,542445 7,884,891 11,827,336 CAT 1.1,2-Subscriber Line (Dud.) 19. 128,361 55,236 95,236 33,125 33,125 CAT2-Exch.Trunk(JointUse) 20. 224,244 - 224,244 224,244 CAT2-Exch.Trunk(Ded.Use) 21. 1.094.708 427,754 427,754 666,984 666,954 CAT3-IXTrunk(JointUse) 22. 3,883.264 3,218,312 41,809 3,260,121 615,750 7,393 623.143 CAT3-IXTrunk(Ded.Use) 23. 974,506 930,153 930,153 44,353 44,353 CAT4-Host/RemoteTrunk 24. 1,752,317 1,057,033 _______________ 1,057,033 277,089 418,225 695,284 Other C&WF 25. - - - TotalC&WF 26. 23,827,182 8,217,791 1,494,952 9,712,743 4,835,254 751,825 224,244 8,303,116 14,114,439 26XXOtherAssets: ________________ _______________ CapitalLeases 27, - - - LeaseholdImprovements - 28. - - - Intangibles - 29. - - - Total Other Assets - 30. - - - - - - - - Total Telecom. Plant in Service (5b) 31. 40,362,547] 14,340,980 4,219,725 18,560,705 7,221,763 1,146,091 510,705 12,923,283 21,801,842 Page 2 of 6 Depreciation & Amortization - - Accumulated Depreciation Detail _______ 311X General Support Facilities 1. 107,054) _(2_, (748.645) (220,263) (968.928) (1,435,953) (375.999) (59.830) (26,660) (674,637) (1,138,126) 312X Central Office Switching 2. (1,689,356) (1,435.953) )253,403) (253,403) 312X Operator Systems 3. 312X Central Office Transmission 4. (8,401,622) (2131,2971 (1.892,890) (4,024,187) (1,405.725) (239,152) (162,752) (2,536,806) (4,377,435) 313X Information Orig./Term. Equip. 314X. Cable & Wire Facilities 5. 6. - (15,680,136) . (4,002.208) ..... (818,4041 (4,820,672) . (3,428808) )607.226)[ L......... ..... (75,267) (0,660,162) (10.859,464) Total Accumulated Depreciation (Sc) 7. (27,878,168) (8,318,163) (2,931,577) (11,249,740) (5,209,533) (996,208) (294,679) (10,128,008) (16,628,428) Accumulated Amortization Detail 3410 Capital Leases 8. - . - ...... ............ ............. ,,, . ....... ........ 3420 Leasehold Improvements 9. - - - 3500 Intangibles 10. 600 Acquisition Adjustment 11. - - ,,,,................ ,,.,,,,_ ...-- ............ , - Total Accumulated Amortization (Sc) 12. - - - - - - - OPERATING EXPENSE DETAIL I XX-64XX Plant Specific Operations 110-20 General Support Facilities 1. 416,612 148.024 43,555 191,579 74,541 11,830 5,271 - 133,391 225,033 Central Office Switching 2. 1 648,195 242,307 116,145 358,502 88,193 14,750 11,953 - 174,797 289,693 OperatorSystems 3. - - - Central Office Transmission 4. 765,103 286,068 137,093 423,161 104,099 17,411 14,100 206,323 341,942 Information Orig./Term.Equip. 5. - .... ............. - - - Cable &WireFacilities 6. 1,025,872 353.814 64,365 418,179 208,160 32,370 9,055 357,488 607,693 TotalPlant Specific (5a) 7. 2,855,782 1,030,263 361,158 1,391,421 475,013 76,361 40,988 871,999 1,464,361 Plant Nonspecific Operations (8) (44) (3) (78) (1321 Provisioning 8. (245) (87) (26) (113) (7) NetworkOperations 9. 300,712 106.844 31,438 138,282 53,804 8,539 3,805 96,282 162,430 0 Access Paid to LECs (9) 10. 1 109,289 109.269 109,289 - Total Plant Nonspecific (5a) 11. 409,756 216,046 31,412 247,458 53,760 8,532 3,802 96,204 162,298 656X Depreciation&Amortization (8) GeneralSupportFacilities 12. 175,634 82,403 18,362 80,765 31,425 4,987 2,222 56,235 94,869 Central Office Switching 13. 283,256 240,768 240,768 42,488 42,488 Operator Systems 14. - CentralOfficeTransmission 15. 1,075,241 284,794 250,247 535,041 175.331 30,112 20,248 311,509 540.200 Information OriglTerm.Equip. 16. - - - Cable&WireFacilities 17. 1,045,623 300.353 72,220 432,573 210,178 12,343 9,708 360,821 613,050 6563 CapitalLeases IS. - - ........ - - 6563 LeaseholdImprovements 19. - - - 6564 Intangibles 20. - - - 6565 Acquisition Adjustment Total Depreciation&Amortization 21. (Sa) 22. 2,579,754 948,318 340,829 1,289,147 419,934 67,442 32,178 771,053 1,290,607 Page 3 of 6 OPERATING EXPENSE (continued) 66XX Customer Operations 661X Marketing 662X Operator Services 1 2. 100711 - - 55,043 - 3,278 58321 - 7211 - 2 76 32,397 42,390 - 662X Directory Publishing Alpha 3 - 662X Directory Publishing-Classified 4. - 662X Directory Publishing-Foreign 5. - - 6623 Service Order Proc-End User 6. 224,692 119,312 119,312 9.939 99.441 - 105,380 Payment & Collection-End User 7. - 133,621 42,638 42,636 26,738 64,247 90,985 Billing Inquiry-End User 8. 79,546 25,381 25,381 15,919 __________ 38,246 54,165 Service Order Proc.-CXR 9. 1,164 582 582 582 - 582 Payment & Collection-CXR 10. 7,182 3,591 3,591 3,591 3,591 Billing Inquiry-CXR Ii. 3,180 1,590 1,590 1,590 1,590 Coin Administration 12. - - - Rev. Acctg.-Toll Ticket Proc. 13. - ............._ .._. - .......... -- ......... ................. - Rev. Acclg.-Local Mess. Proc. 14. 48,581 20,841 20,841 277740 27,740 Rev. Acctg.-Other Bill & Colt. 15. 50,959 15,199 15,199 17,880 17,880 35,760 Rev. Acctg.-SLC Billing 16. 2,682 2,682 2,682 Rev. Acctg.-CXR B & C (9) 17, 21,544 10,772 10.772 10,772 10,772 6623 B,& C Amts Paid to LECs (9) 18. - 5,350 - 5,350 __________ - 6623 Other Customer Service 19. 5,350 Total Customer Operations 20. 679,212 302,979 3,278 306,257 121,968 2,776 - 248,211 372,955 67XX Corporate Operations: 671X Executive & Planning 21. 806,811 315,280 72,996 387,976 139,660 15,503 9,578 254,114 418,835 672X General & Administrative 22. 914,443 386,393 78,087 464,490 150,015 16,655 10,290 212,993 449,953 6728 EAS Settlement Expense 23. - - - Total Corporate Operations (5a) 24. 1,721,254 701,673 150,793 852,466 289,655 32,158 19,868 527,107 - 868,788 Other Operating Expenses: Equal Access Provision - (tO) 25. - - __________ __________ - - Universal Service Fund (11) 26. Lifeline Connection Assistance (12) 27. Total Other (5a) 28. - - - - - - - - - Total Operating Expenses - (5a) 1 29.1 8,245,7581 3,199,279 1 887,470 1 4,086,749 1 1,360,330 187,269 96,836 2,514,574 4,159,009 Page 4 of 6 OPERATING TAXES DETAIL 7240 General Taxes 7240 Property 1. 112943 40,120 11,808 51,937 20.209 3,207 1,425 36,192 61,006 7240 Gross Receipts 2. - - - 7240 PUC Fee 3, - - 7240 Franchise Fees 4. - - 7240 Other 5. - 13,475 3,475 3,475 Total General Taxes 6. 116,418 43,604 11,808 55.412 20,208 3,207 1,429 36,162 61,006 72XX Income Taxes (Calculated) Net Income Before SIT& FIT (13) 7. 931,039 2,790,897 (54.223) 2.736,674 (685,484) (128,195) (98,265) (893,691) (1,805,635) Less Fixed Charges (-) 8. 207,392 98,511 21,120 119,631 33,801 2,701 3,512 47,747 87,761 Subtotal (lines 7.8) (14) 9. 723,647 2,692,386 (75,343) 2,617,043 (719,285) (130,896) (101.777) (941,438) (1,893,396) Other SIT Base AddlDed. (+-) (15) 10. - f - - SIT Taxable Inc. (lines 9+-b) 11. 723,647 2,692,386 (75,343) 2,617,043 (719,285) (130,896) (941,438) (1,893,396) 7230 SIT-Current (at 7.78%) j 12. 131,321 72.705 15,280 87,985 16,840 1.237 1,783 23.476 43,336 Other FIT Base Add/Ded. (+-) (17) 13. - - - FIT Taxable Inc. (lines 9.12+-13) 14. 592,326 2,619.681 (90,623) 2,529,058 (736,125) (132,133) (964,914) (1,833,172) Gross FIT at 31.4700% 1 15. 492,022 271.976 57,225 329,201 637202 4.676 6,679 88.265 162,821 7210P Claimed ITC (-) 16. - - - Surtax Elimination (-) 17. - 7220 FIT-Current (lines 15-16-17) (18) 18. 492,022 271,976 57,225 329,201 63,202 4,676 6,678 88,265 1 162,821 Page 5 of 6 iii COMPANY NAME: Albion Teleph one Company, Inc t-orThevearEnded:December3l,2011 -----.---- -----.------- Seperated Results of Idaho Operations Total Idaho Intrastate Operation - Operations Description Note Line Subject To Interstate Toll EAS Intrastate Local (Other) No. No. Separations - Toll Separation Parameters (19) Plant SLU Minutes of Use )MOU) 1. 90,184,712 25,347570 6,592,010 20,387,268 37,857.864 SLU Factor 2. 1.000000 0.26 0.07 0.23 0,42 Base SPE -January 1 3. 1.000000 0,25 11.25 0.50 Base SPF -December 31 Current Composite SPF (20) 4. 5. 1.000000 1.000000 0.25 0,25 015 0.25 0.50 050 1996 Weighted DEM 6. 1.000000 0.85 0.15 1996 Unweighted DEM 7. 1.000000 0.31 010 0.13 0.45 Current CAT 3 Dial Equipment Minutes (21) 8. 90,184,713 25,347,648 6,591,933 20,387,266 37,557.864 Current Composite DEM Factor 9. 1.000000 0.85 0.15 Exchange Trunk - Joint Use MOU (22) 10. 0 Host/Remote MOU Kilometers (23) 11. 1 90,184,713 25,347,648 6,581,933 20.387,268 37,857,864 Equal Access MOU (24) 12. 1 0 Operator Standard Work Seconds (25) 13. 0 Tandem Switching MOU (26) 14. 0 IX Conversation MOU 15. 31,939,580 25,306,313 6,833,267 IX Conversation Minute Kilometers - 16. 190,191,538 159,645,592 30,545,846 Other Parameters Access Lines 17. 3,764 - ___________ Unseparated Loop Cost @ 11.1 ROR (27) 18. 4,817,619 Gross Billed Revenues -Marketing Allocation Basis (28a( 19. 16,672 91655 1,654 5,363 -Payment & Collection-End User )28b) 20. 3,042,153 970,696 608,739 1,462.718 -Payment & Collection-CXR (28c) 21. 2,666 1,333 1,333 Service Order Contacts -Service Order Proc-End User (29a) 22. 3,558 1,586 186 1,786 -Service OrderProc.-CXR (29b) 23. 433 216 217 Billing Inquiry Contacts -Billing Inquiry-End User (30a( 24. 3,042,153 970,896 608,739 1,462,715 -Billing Inquiry-CXR )30b) 25. 1,180 580 5911 SP*RC Toll Messages (31) 26. 1,113,798 477,663 636,135 EAS/Local Messages (Msg. Proc.) 27. 0 'BIG 3' Expense Factor-Message (32) 28. 0.90 0.41 0,17 0.02 0.30 -PLS & Special Access 29. 0.10 0.09 0,01 Operator Services Expense -Factor 30. 1 1.00 Access Minutes of Use (End Office) 1 - 31. 1 13,949,763 10,419,559 1 3,530,204 1 Page 6 of 6