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Home My WebLink About2011Annual Report.pdfcoL-T A NNUAL R Aw NAME ALLEN HOOPES COLUMBINE TELEPHONE DBA - rn TETON TELECOM COMM a: at rn P0 BOX 226 FREEDOM WY 83120 - 0 TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDED 2011 ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING 2011 COMPANY INFORMATION Exact name of utility: Columbine Telephone Company, Inc. Address of principal office: P0 Box 226 104101 Hwy 89 Freedom, WY 83120 Telephone Number Area Code (_307_) 883-2411 E-mail address: Cities or towns served: Idaho: Driggs, Victor, Tetonia; Wyoming: Alta, Leigh Canyon Name and title of officer having custody of the general corporate books of account: Allen R. Hoopes Address of office where corporate books are kept and phone number: P0 Box 226 104101 Hwy 89 Freedom, WY 83120 Organized under the laws of the State of: Wyoming Date of organization: Domesticated 12/23/04 Form of organization (proprietorship, association, corporation): Corporation If a Subchapter S Corporation, please specify: Name and address of controlling company, if any:______________________________________________________ Names of affiliated companies. Give address and description of business Telecommunication Services Silver Star Telephone Company, Inc. P0 Box 226 104101 Hwy 89 Freedom, WY 83120 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 Allen R. Hoopes P.O. Box 226, Freedom, WY 83120 COO Ron B. McCue P.O. Box 226, Freedom, WY 83120 VP Finance I Sec Chad Turner P.O. Box 226, Freedom, WY 83120 Asst Sec Michelle Motzkus P.O. Box 226, Freedom, WY 83120 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 Allen R. Hoopes Indefinate 6 $ 698 Jack Bentley Indefinate 6 $ 698 Bob Foster Indefinate 5 $ 582 Rod R. Jensen Indefinate 6 $ 698 Peggy Zimmer Indefinate 5 $ 582 Name of Chairman of the Board: Allen R. Hoopes Name of Secretary (or Clerk) of Board: Michelle Motzkus Number of Meetings of the Board during the year: 6 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 Allen R. Hoopes Ron B. McCue Chad H. Turner George Scherer Brad Madison Karen Ricks Heath Jensen Caryl Wilkerson Jennifer Brannen Title General Manager I President Chief Operation Officer VP Finance Director of Human Resource Director of Operations Engineering Manager Operations Supervisor Customer Service Manager Marketing Manager Wages and Bonuses Paid Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Confidential Note: These wges include all dollars paid to managers performing work for Silver Star Telephone as well as those dollars allocated to Columbine Telephone Company, dba Teton Telecom. 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. NONE 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 1130 Cash 527,301 27,609 (499,691) 1140 Special Cash Deposits 1150 Working Cash Advances 200 200 - 1160 Temporary Investments 26,460 25,092 (1,368) 1180 Telecommunications Accts. Receivable (221) (685) (463) 1181 Accts. Rec. Allow. -Telecommunications (30,000) (15,000) 15,000 1190 Other Accounts Receivable 1,540,705 1,263,110 (277,595) 1191 Accounts Receivable Allow. - Other (14,000) (14,000) - 1200 Notes Receivable - - - 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable - 1220 Material and Supplies 136,594 249,142 112,548 1280 Prepayments - 1290 Prepaid Rents 3,350 3,350 - 1300 Prepaid Taxes 1310 Prepaid Insurance 67,827 24,044 (43,783) 1320 Prepaid Directory Expenses - 1330 Other Prepayments - 1350 Other Current Assets - Noncurrent Assets - 1401 Investment in Affiliated Companies - 1402 Investment in Nonaffiliated Companies 2,771,821 3,210,686 438,865 1406 Nonregulated Investments 35,518 - (35,518) 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds - 1410 Other Noncurrent Assets 89,780 94,107 4,327 1438 Deferred Maintenance & Retirements - 1439 Deferred Charges - - - 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment - 2001 Telecommunications Plants in Service 34,238,390 35,256,037 1,017,646 2002 Prop. Held for Future Telecom. Use 30,000 30,000 - 2003 Telecom. Plant under Constr. - Short Term 527,553 44,394 (483,159) 2004 Telecom. Plant under Constr. - Long Term - 2005 Telecom. Plant Adjustment 2,637,771 2,637,771 - 2006 Nonoperating Plant - 2007 Goodwill - Depreciation and Amortization Accounts - 3100 Accumulated Depreciated (24,151,099) (26,833,923) (2,682,824) 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 (2,395,929) (2,571,777) (175,848) 3600 Accumulated Amortization - Other (89,780) (92,394) (2,614) TOTAL ASSETS 15,952,242 13,337,764 (2,614,478) BALANCE SHEET Liabilities & Stockholders' Equity Balance Balance Increase Beginning at End or of Year of Year (Decrease) 1,054,662 311,217 (743,444) 300,000 300,000 - 12,162 17,389 5,227 291,542 291,542 25,936 4,994 (20,942) (37,269) (10,730) 26,539 259,177 239,902 (19,274) 1,936,729 520,905 (1,415,824) 106,295 86,295 (20,000) (280,033) (348,213) (68,180) (3,428) (4,459) (1,031) 2,508,803 1,911,799 (597,004) 11,483 11,483 - 8,486,310 8,486,310 - (6,656) (8,658) (2,002) 1,578,071 1,527,987 (50,084) 15,952,242 13,337,764 (2,614,478) Title of Account Current Liabilities 4010 Accounts Payable 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 4050 Current Maturities - Long -Term Debt 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilities Long-Term Debt 4210 Funded Debt 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 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 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 4520 Additional Paid-In Capital 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings TOTAL LIAB. & OTHER CREDITS TOTAL Company Basis Balance Plant Transfers Balance Beginning Additions Retired and End of Year During year or Sold Adjustments of Year 89,780 4,327 - 94,107 718,557 - - 718,557 615,974 - - 615,974 637,921 - - 637,921 4,485,332 - - 4,485,332 246,478 7,080.72 - 253,559 153,188 14,990.44 - 168,179 283,786 9,910.09 - 293,696 899,944 5,720.61 (15,440) 890,225 250,080 - - 250,080 5,695,576 1,103,601.72 (1,877) (24,051) 6,773,250 103,273 - - 103,273 126,340 - - 126,340 196,868 - - 196,868 19,349,957 (191,479.18) - 19,158,478 11,044 - - 11,044 21,608 - - 21,608 420,822 81,151.73 - 501,973 21,640 28,037.69 - 49,678 34,328,171 1,063,341 (17,317) (24,051) 35,350,144 Analysis of Telecommunications Plant in Service 1410 Internet Equipment 2111 Land 2112 Motor Vehicles 2113 Aircraft 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 2121 Buildings 2122 Furniture 2123 Office Equipment 2124 General Purpose Computers 2211 Analog Electronic Switching 2212 Digital Electronic Switching 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 2232 Circuit Equipment 2311 Station Apparatus 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 2362 Other Terminal Equipment 2411 Poles 2421 Aerial Cable 2422 Underground Cable 2423 Buried Cable 2424 Submarine Cable 2426 Intrabuilding Network Cable 2431 Aerial Wire 2441 Conduit Systems 2681 Capital Leases 2682 Leasehold Improvements 2690 Intangibles TOTAL PLANT ACCOUNTS ANALYSIS OF TELECOMMUNICATIONS PLANT IN SERVICE 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 1410 Internet Equipment 89,780 4,327 - - 94,107 2111 Land 718,557 - - 718,557 2112 Motor Vehicles 615,974 - - 615,974 2113 Aircraft - - 2114 Special Purpose Vehicles - - 2115 Garage Work Equipment 2116 Other Work Equipment 637,921 - - 637,921 2121 Buildings 4,357,905 - - 4,357,905 2122 Furniture 246,478 7,081 - 253,559 2123 Office Equipment 153,188 14,990 - 168,179 2124 General Purpose Computers 283,786 9,910 - 293,696 2211 Analog Electronic Switching - - 2212 Digital Electronic Switching 899,944 5,721 (15,440) 890,225 2215 Electro-Mechanical Switching - - 2220 Operator Systems 2231 Radio Systems 176,794 - - 176,794 2232 Circuit Equipment 5,539,986 1,102,165 (1,877) (30,125) 6,610,149 2311 Station Apparatus - - 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 2362 Other Terminal Equipment 2411 Poles 103,273 - - 103,273 2421 Aerial Cable 125,881 - - 125,881 2422 Underground Cable 196,868 - - 196,868 2423 Buried Cable 18,599,821 (191,479) - 18,408,341 2424 Submarine Cable 2426 Intrabuilding Network Cable 11,044 - - 11,044 2431 Aerial Wire 21,608 - - 21,608 2441 Conduit Systems 420,822 81,152 - 501,973 2681 Capital Leases - - 2682 Leasehold Improvements 21,640 28,038 - 49,678 2690 Intangibles TOTAL PLANT ACCOUNTS 33,221,272 1,061,904 (17,317) (30,125) 34,235,734 Rev 3/02 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 1410 Internet 89,780 33.33% 2,614 92,394 2112 Motor Vehicles 543,537 25.00% 72,437 - 615,974 2113 Aircraft - - 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 637,921 20.00% - - 637,921 2121 Buildings 1,244,023 5.00% 224,267 - 1,468,289 2122 Furniture 172,956 14.00% 34,590 - 207,546 2123 Office Equipment 130,720 20.00% 25,046 - 155,766 2124 General Purpose Computers 283,786 33.33% 9,885 - 293,671 2211 Analog Electronic Switching - - 2212 Digital Electronic Switching 447,844 12.00% 107,896 (15,440) 540,301 2215 Electro -Mechanical Switching - - 2220 Operator Systems 2231 Radio Systems 250,080 20.00% - - 250,080 2232 Circuit Equipment 5,143,152 12.50% 778,982 (1,877) 5,920,256 2311 Station Apparatus - - 2321 Customer Premises Wiring - - 2341 Large Private Branch Exchanges - - 2351 Public Telephone Terminal Equipment - - 2362 Other Terminal Equipment - - 2411 Poles 103,273 7.50% - - 103,273 2421 Aerial Cable 126,340 8.60% - - 126,340 2422 Underground Cable 196,868 10.00% - - 196,868 2423 Buried Cable 14,607,386 6.50% 1,425,332 - 16,032,718 2682 Amortize Leasehold lmprovemnts 21,640 Amortize 18 Months 207 - 21,847 2426 Intrabuilding Network Cable 11,044 6.50% - - 11,044 2431 Aerial Wire 21,608 - - 21,608 2441 Conduit Systems 208,920 5.00% 21,500 - 230,419 TOTAL 24,240,879 2,702,754 (17,317) 26,926,317 *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 Beginning Depreciation During and of Year Rate* Year Adjustments 89,780 33.33% 2,614 - 543,537 25.00% 72,437 - 637,921 20.00% - - 1,164,865 5.00% 217,895 - 172,956 14.00% 34,590 - 130,720 20.00% 25,046 - 283,786 33.33% 9,885 - 447,844 12.00% 107,896 (15,440) 176,794 20.00% - - 5,052,264 12.50% 758,904 (1,877) 103,273 7.50% - - 125,881 8.60% - - 196,868 10.00% - - 13,857,250 6.50% 1,425,332 - 21,640 Amortize 18 Month 207 - 11,044 6.50% - - 21,608 - - 208,920 5.00% 21,500 - 23,246,953 2,676,305 (17,317) Analysis of Entries in Accumulated Depreciation 1410 Internet 2112 Motor Vehicles 2113 Aircraft 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 2121 Buildings 2122 Furniture 2123 Office Equipment 2124 General Purpose Computers 2211 Analog Electronic Switching 2212 Digital Electronic Switching 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 2232 Circuit Equipment 2311 Station Apparatus 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 2362 Other Terminal Equipment 2411 Poles 2421 Aerial Cable 2422 Underground Cable 2423 Buried Cable 2682 Amortize Leasehold lmprovemnts 2426 Intrabuilding Network Cable 2431 Aerial Wire 2441 Conduit Systems TOTAL Balance End of Year 92,394 615,974 637,921 1,382,760 207,546 155,766 293,671 5,809,290 103,273 125,881 21,847 11,044 21,608 230,419 25,905,941 *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. Description Date Acquired RTFC Certificates 1997 RTFC Certificates 2003 Syringa 2000 Valley Wireless 2003 Book Cost of Investments Disposed of This year Book Cost of Investments Held at End of Year 70,561 227,384 2,303,359 576,430 Totals 3,177,734 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 maybe combined. Name of Company Due From Customers (1180 Bad Debt (1181) Neca (1190) Sprint (1190) AlT (1190) Other lnterexchange Carriers) Other (1190) Schools & Libraries (1190) Affiliates (1190) Prepaid Income Taxes (1190) Bad Debt (1191) Shareholders (1210) Totals Amount at End of Year Notes Accounts Receivable Receivable 685 (15,000) 400,202 174,084 8,678 14,720 665,426 (14,000) 1,233,426 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 RURAL TELEPHONE FINANCE COOP ___________ __________ 300,000 Totals 300,000 ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100.00 Name of Creditor Amount Affiliates 200,643 Neca - Taxes 5,512 U.S. West 230 Other Carriers - Employee Payroll I Benefits 108,924 Totals 315,309 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 Fact Premium! Discount Class & Series of of Amount Outstanding Year of Obligation Issue Maturity Authorized Year-End Total Amortized ALLY 10/31/2010 10/31/2015 62,081 47,146 RTFC Note 5/7/1997 2012 10,000,000 291,533 Four Star 2003 2010 435,902 473,768 Less Current Portion (291,542) Total Long Term Debt (Page 5) 520,905 Interest for year Rate Amount 4% 1601 5.50% 37,828 1.68% 7,828 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 Stock Voting 25,000 1 2500 2500 Common Stock Non-voting 75,000 1 8983 8983 Rev 3/02 Page 13 INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 16) Total Operating Expenses (from page 18) 7100 Other Operating Income and Expense 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 7230 Operating State and Local Income Taxes 7240 Operating Other Taxes 7250 Provision for Deferred Operating Income Taxes-Net 7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Property 7360 Other Nonoperating Income 7370 Special Charges 7300 Nonoperating Income and Expense 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 Norioperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions 7500 Interest and Related Items 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 AMOUNT TRANSFERRED TO RETAINED EARNINGS 9,087,491 8,605,854 (7,742,291) (7,331,950) (20,000) (18,940) 805,493 762,802 (4,665) (4,418) 79,882 75,648 (58,404) (55,309) 802,305 759,783 (7,546) (7,146) (2,228) (2,110) (756) (716) 25,407 24,061 13,879 13,144 28,756 27,232 10,363 9,813 (10,043) (9,511) 319 302 37,884 35,876 23,678 22,423 61,562 58,299 582,668 551,787 1,035,564 980,679 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 Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES 1,139,288.22 1,078,906 48.95 46 152,659.30 144,568 224,063.26 212,188 2,951,410.50 2,794,986 415,028.69 393,032 2,838,078.32 2,687,660 1,123,874.03 1,064,309 48,219.05 45,663 4.80 5 46,638.39 44,167 46,301.98 43,848 65,244.78 61,787 48,284.96 45,726 (12,318.74) (11,666) 664.63 629 9,087,491.12 8,605,854 Please identify the following revenues: NECA USF $ 2,946,311 To what account were they booked? 5069.10 State USF $ - To what account were they booked? 5069.22 Rev 3/02 Page 15 OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses - 6112 Motor Vehicle Expense (1,869) (1,770) 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 223,078 211,255 6122 Furniture and Artworks Expense 1,758 1,665 6123 Office Equipment Expense 53,110 50,295 6124 General Purpose Computers Expense 321,751 304,698 6210 Central Office Switching Expenses - 6211 Analog Electronic Expense - 6212 Digital Electronic Expense 166,395 157,576 6215 Electro-Mechanical Expense - 6220 Operators System Expense 6230 Central Office Transmission Expenses - 6231 Radio Systems Expense 1,304 1,234 6232 Circuit Equipment Expense 268,049 253,842 6310 Information Origination/Termination 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 Facilities Expenses 6411 Pole Expense - 6421 Aerial Cable Expense 2,000 1,894 6422 Underground Cable Expense - 6423 Buried Cable Expense 1,309,622 1,240,212 6424 Submarine Cable Expense - 6425 Deep Sea Cable Expense - 6426 lntrabuilding Network Cable Expense - 6431 Aerial Wire Expense - 6441 Conduit Systems Expense - TOTAL PLANT SPECIFIC OPERATIONS EXPENSE 2,345,198 2,220,903 Rev 3/02 Page 16 OPERATING REVENUES Item Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment 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-Property 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 43,183 40,894 46,403 43,944 100,164 94,855 110,771 104,900 131,007 124,063 2,702,534 2,559,300 3,134,061 2,967,956 135,450 128,271 23,490 22,245 39,512 37,418 629,680 596,307 828,131 784,240 256,583 242,984 3,503 3,318 508,539 481,587 156,482 148,188 169,027 160,069 20,184 19,114 29,232 27,683 291,351 275,909 1,434,901 1,358,851 7,742,291 7,331,950 Rev 3/02 Page 17 CENTRAL OFFICE DATA as of December 31, 2011 (unless otherwise indicated) Name of Central Office: Driggs, Idaho Prefix (es): 354, 787k, 456* *Served Via Concentrators Central Office Switch Type: CS 1500 Check all that apply: Check one: Check one: Stand Alone–X— Digital–X— Electronic_ Host_ Analog_ Electro-Mechanical_ Remote_ Other:_____________ Access Line Capacity Design: Installed/Equipped:__________________ Access Lines in Use Customer Lines: 3124 (Include Centrex, PAL, Semi-Pub.) Public Telephone Lines 0 Company Official Lines 69 Company Test Lines 0 Classification of Customer Access Beginning of Year New Connects Disconnects End of Year Residence Multi- Single Line Line Multi- Subtotal 1-Party 1-Party Party Residence 2286 2286 0 77 77 2209 2209 Business Multi- Single Line Total Centrex Line Multi- Subtotal Residence N.A.R. 1-Party 1-Party Party Business & Business 670 292 962 3248 8 8 8 55 55 132 615 300 915 3124 Foreign Exchange: Dial Tone from this C.O.:_______ Dial Tone from another C.O.:_______ Custom Calling: Number of customers with at least one feature:-142– Total number of features subscribed to:_12_ Directory Listings: Number of Customers with Nonpublished or Nonlisted: 118 Rev 3/02 Page 18 NUMBER OF CALLS COMPLETED BY CUSTOMERS DURING (Year) 2011 Average # LocalCalls Toll Calls Originated (Total of allCarriers) of Customer Number Avg./ Avg.! Local Exchange Lines in Use (1000s) Line Intrastate Interstate Total Line 1 2 4 5 208/354 6208/787 7 208/456 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 IDAPA 31.41.01.105 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 Included in directory Yes—X— No, Date of notification Alternate method of notification Rule IDAPA 31.41.01.403.02 Record of Complaints: Number received by Company 1 Category of complaints (if known): Deposit Disputes Charges on Bill Denial/Termination Quality or Availability of Service I Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 5 %~O?A711' CERTIFICATE State ofJ ) ) ss County 7 j WE, the undersigned / ,4Zrr crrprfcl an of the utility, 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. t I /WA/Vv (Chief Officer) ,/V (4icer in Charge of Accounts) AV-4 Subscribed and Sworn to Before Me this day of Notary Public 1k , (Year) My Commission expires l JT , (Year) Rev 3/02 gdk/excel/jnelson/anulrpts/telannualrpt Page 21 MICHELLE MOTZKUSNTARY PUBLIC cOtjTyo g: STATE OF LINCOLN MY COMMISSION S