2001Annual Report.pdf

ANNUAL REPORT
OF
DIRECT COMMUNICATIONS ROCKLAND,INC.
NAME
150 SOUTH MAIN,ROCKLAND,IDAHO
ADDRESS
TO THE
IDAHO PUBLIC
UTILITIES COMMISSION
FOR THE
YEAR ENDED DECEMBER 31'2001
ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO
THE IDAHO PUBLIC UTILITIES COMMISSION
FOR THE YEAR ENDING DECEMBER 31,2001
COMPANY INFORMATION
Exact name of utility:DIRECT COMMUNICATIONS ROCKLAND,INC.
Address of principal office:150 South Main Rockland,Idaho 83271
Telephone Number (Area Code_2_Q.S__)548 -2345
Cities or towns served:Rockland,Arbon,Paris,Bloomington,St.Charles,&Fish Haven
Name and title of officer having custody of the general corporate books of account:
Leonard May,President
Address of office where corporate books are kept and phone number:
150 South Main Rockland,Idaho 83271 (208)548 -2345
Organized under the laws of the State of:Idaho
Date of organization:1973
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:
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 -Treasurer Leonard May P.O.Box 269 Rockland,Idaho 83271
Vice Pres.-Secretary Marilyn May P.O.Box 269 Rockland,Idaho 83271
Last update 8/99 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
Leonard May May-02 12
P.O.Box 269
Rockland,Idaho 83271
Marilyn May May-02 12
P.O.Box 269
Rockland,Idaho 83271
Name of Chairman of the Board:Leonard May
Name of Secretary (or Clerk)of Board:Marilyn May
Number of Meetings of the Board during the year:12
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
Leonard May President -Treasurer $91,960.00
Marilyn May Vice Pres.-Secretary $45,355.00
Last update 8/99 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.
SEE ACCOMPANYlNG NOTES
Last Update 8/99 Page 3
DIRECTCOMMUNICATIONS ROCKLAND,INC.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDEDDECEMBER31,2001 AND 2000
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
Direct Communications Rockland,Inc.(Company)is a full service telecommunications providerwhose
main office is located in Rockland,Idaho.The service area of the Company consists of Southeastem Idaho
and South-central Idaho.The Company provideslocal exchange service as well as providing access services
for intrastate and interstate carners.
The mission of the Company is to provide its customers with reliable,convenient and equitable
telecommunications service,delivered by employees who are dedicated to customer satisfaction.
BASIS OF ACCOUNTING
The Company is subject to the accounting and reportingrules and regulations of the Rural Utilities Service
(RUS).The Company follows the Federal Communications Commission's Uniform System of Accounts
prescribed for Class B Telecommunications Utilities as modifiedby RUS.The accounting policies conform
to generally accepted accounting principles as applied in the case ofregulated telecommunication utilities.
Rates charged to customers are established by the Board of Directors and approved by the Idaho Public
UtilityCommission.The Idaho Public Utility Commission regulates all utility activity in the State of Idaho.
PLANT,EQUIPMENTAND DEPRECIATION
Plant is recorded at cost.The cost of additions to plant includes contracted work,direct labor and materials
and allocable overheads.When units of property are retired,sold or otherwise disposed of in the ordinary
course of business,their average book cost less net salvage is charged to accumulated depreciation,Repairs
and the replacement and renewal of items determined to be less than units of property are charged-to
maintenance.
The provision for depreciation is based upon a straight-line method which is applied to groups of assets
according to class.The rate is determined by RUS.recommendation which is based on an estimation of
useful lives for each asset group.The final rates are approved by the Idaho Public Utilities Commission.
PLANT CONSTRUCTIONAND RETIREMENT
Overhead costs are charged each month to construction and retirement on a prorated basis.These directly
related overhead costs include indirect labor,payroll taxes,insurance,transportation charges and storage
expense.
INVENTORIES
Inventories of materials and supplies are valued at moving average cost.Items determined to be obsolete are
written off.
-7-
DIRECT COMMUNICATIONS ROCKLAND,INC.
NOTESTO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31,2001 AND 2000
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
PLANT CONSTRUCTIONAND RETIREMENT
Overheadcosts are charged each month to constructionand retirementon a proratedbasis.These
directly related overhead costs include indirect labor,payroll taxes,insurance,transportation
charges and storage expense.
REVENUE RECOGNITION
I
Local and toll services are billed or accrued currently.Revenueis recognized using the accrual
basis of accounting in that revenue is recognizedwhen the earningprocess is complete.
INCOME TAXES
In accordance with SFAS 109,deferredtax liabilities have been adjusted to reflect deferred tax
consequences at current enacted rates versus historical rates as required under previous
accounting standards.Also SFAS 109 resulted in the establishment of certain regulatory
liabilities to recognize the cumulativeeffect or rate making activity.
Under SFAS 109 income taxes are provided for the tax effects of transactions reportedin the
financial statements and include taxes currently due and deferredtaxes.Deferredincome taxes
reflect the net tax effects of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of the Company's deferred tax assets and liabilities at December 31,
2001 and 2000,include the effects of accelerated depreciation,based debt reserve and other
liabilities.The deferredtax assets and liabilities represent the future tax retum consequences of
those differences,which will either be taxable or deductible when the assets and liabilities are
coveredor settled.
ALLOWANCE FOR FUNDSUSED DURING CONSTRUCTION
The Companyis requiredto calculate an amount to be capitalized to Plant Under Construction
for funds used during construction and capitalizing the used funds at an average rate of 6.35%
which is the Company's borrowing rate from Rural Telephone Finance Cooperativeand RUS.
The amount recorded in 2001 was $64,019 and $250,358in 2000.
I
DIRECTCOMMUNICATIONSROCKLAND,INC.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDEDDECEMBER31,2001 AND 2000
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
PREPAID EXPENSES
Prepaid expenses are those paid in advance or that providea benefit that extends beyond December
31.Such expenses include property insurance,employee insurance and workmens compensation
insurance.
INVENTORIES
Inventories of materials and supplies are valuedat moving average cost.Items determined to be
obsolete are written off.
PROVISIONFOR DOUBTFULACCOUNTS
A provision for doubtful accounts is maintained.Additions are estimated based on historical
analysis of write-offsand collections as a percentage of sales and accounts receivable balances.
CLEARINGACCOUNTS
Transportation,heavy work equipment and stores expense are cleared each month of actual
i expenses.Transportation equipment is cleared by miles used and heavy equipment and stores are
cleared by hours used.
ACCRUALS
Taxes are accrued each month with energy sales and individualpurchases.
ACCOUNTINGESTIMATES
I The preparation of financial statements in conformitywith accounting principles generally accepted
in the United States of America requires management to make estimates and assumptions that affect
certain reported amounts and disclosures.Accordingly,actual results could differ from those
estimates.
FINANCIAL INSTRUMENTS
I
The Company follows Statement of Financial Accounting Standards No.107,Disclosures about Fair
i Value of Financial Instruments.The Statement extends fair value disclosure practices by requiring
all entities to disclose the fair value of financial instruments,both assets and liabilities,recognized
and not recognized in the balance sheets,for which it is practicable to estimate fair value.The fair
value of a financial instrument is the amount at which the instrument could be exchanged in a
current transaction between willing parties,other than a forced or liquidation sale.
.9.
DIRECT COMMUNICATIONS ROCKLAND,INC.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31,2001 AND 2000
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
FINANCIAL INSTRUMENTS (continued)
The fair value of the Company's financial instruments approximates carrying value.Fair values
were estimated based on quoted market prices and on current rates offeredto the Company for debt
with similar terms and maturities.
CREDIT RISK
Financial instruments which potentially subject the Company to concentrations of credit risk
consist principally of debt agreements.Concentrations of credit risk with respect to trade
receivablesare limited due to the Company's large number of customers.
DEFERRED CREDITS
Deferredcredits consist entirely of deferredtax liabilities which are considered to be long-term.
INVESTMENT IN AFFILIATED COMPANIES
Investment in affiliated companies represents an investment in stock of the CIT Communications
Inc.,System Seven,RTFC Capital Certificates,NRTC 220 MHZ Wire,and other items.The
investments are recorded at cost.
CASH AND CASH EQUIVALENTS
All highly liquid investments with a maturity of six months or less from date of purchase are
considered cash equivalents.Such items include money market savings accounts and certificates of
deposit.
TEMPORARY INVESTMENTS
All investments are reported in accordance with SFAS 115 and are classified as trading securities.
Trading securities are debt and equity securities that are held principally for the purpose of selling
them in the near future.The Company reports these securities at fair market value,with unrealized
gains and losses included in earnings.
-10-
DIRECT COMMUNICATIONSROCKLAND,INC.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31,2001 AND 2000
NOTE2.PROPERTY AND EQUIPMENT
Telephone plant includes the following:
2001 2000
Construction in process S 37,304 5 517,114
In-service:
Land 109,564 98,236
Buildings 1,514,277 1,440,658
Switching equipment 3,280,802 2,516,287
Outside plant 12,967,555 11,291,362
Furniture and office
equipment 561,729 414,319
Vehicles and work equipment 1,021,996 895.959
19,493,227 17,173,935
Non-operating plant:
Subscriber lists,rights of way,etc...1,176,943 1,176,943
Total plant $20,670,170 $18,350,878
Non-operating plant is amortized over a period of 5 -15 years.
NOTE3.LONG-TERMDEBT
Long-term debt consists of:
2001 2000
Case Finance S 33,600 $42,777
I First Security Bank 11,457
Ford Credit 23,195
Caterpillar Finance Co.11,485 25,708
I Rural Telephone Finance Cooperative-
Construction Loan (LOC)3,266,588 4,293,070
Rural Telephone Finance Cooperative 2,399,202 2,575,027
I Rural Telephone Finance Cooperative 187,731 408,455
2%RUS mortgage note 741,209 793,930
5%RUS mortgage note 7,311,982 4,835,592
Unadvancedfunds (21,115)(21,115)
Stockholdernote 35,922 71,849
13,989,799 13,036,750
Less current maturity (3,955,889)(4,851,476)
S 10,033,910 S 8,185,274
The First Security Bank note was paid off in 200L
-11-
DIRECT COMMUNICATIONS ROCKLAND,INC.
NOTESTO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER31,2001 AND 2000
NOTE 3.LONG-TERM DEBT (continued)
The annual requirements for debt service on long-termdebt are as follows:
Interest
Principal (estimated)
2002 5 3,955,889 $750,100
2003 686,753 691,340
2004 723,535 645,950
2005 749,333 595,030
2006 786,546 543,325
Thereafter 7,087,743 3,331,239
Total $13,989,799 $6,556,984
Substantially all property and equipment of the Company are pledged as security for the long-termdebt under
certain loan agreements with the Rural Utilities Service (RUS)and Rural TelephoneFinance Cooperative.
These mortgage notes are to be repaid in equal quarterly installments coveringprincipal and interest expiring
by 2012.
The mortgage to the United States of America,underlying the RUS notes,contains certain restrictions on the
declaration or payment of cash dividends,redemptionof capital stock,or investment in affiliated companies.
Cash paid for interest during the years ended December 31,2001 and 2000,totaled $842,460 and $728,808,
respectively.
The Company has entered into a debt agreement with Rural Utilities Service for $9,062,600 in hardship loan
funds to finance (1)connection of new subscribers,(2)upgrade central office equipment,(3)purchase and
install a broadband switch,(4)construct fiber and copper outside plant,(5)construct new headquarter facilities,
(6)construct new toll facilities,(7)purchase vehicles and work equipment,and (8)construct an ETV facility.
The funding sources are to include Rural Utilities Service (RUS)and Rural Telephone Bank (RTN).The funds
loaned by the RuralTelephone Bank will require an advance sufficient to cover a 5%investment in RTB Class
B stock.$7,664,000 will be funded by RUS and $1,398,000 will be funded by RTB.The interest rates will vary
based on the timing of the loans with the first $5,000,000 from RUS bearing a rate of 5%.The Company
sought and received approvalfrom RUS to obtain interim financing for the fiber project and headquarter
facility construction from the Rural TelephoneFinance cooperative (RTFC)in the amount of $4,900,000 at a
variable rate.$7,119,943 of the RUS loan has been drawn down at December 31,2001.
At December 31,2001,the variable rate of the interim financing from RTFC was 5.95%.The amount
outstanding at December 31,2001,was $3,266,588.This amount is reported as current long term debt in the
financial statements because it is expected to be paid off with the long-termfinancingnoted above.
-12-
I
DIRECTCOMMUNICATIONSROCKLAND,INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER31,2001 AND 2000
NOTE 3.LONG-TERM DEBT (continued)
The note payable to Rural Telephone Finance Cooperative in the amount of $247,186 began October
1996 and ends April 2009.The interest rate is variablebut is considered by the Cooperative to average
4.65%.This rate is secured by a shared first lien on all assets and revenues of the Company.The balance
outstanding at December 31,2001,was $187,731.The company also has a line of credit with RTFC of
M $200,000.The balance outstanding at December 31,2001 and 2000 was $0 and $200,000.See Note 8.
I The last note payable to Rural Telephone Finance Cooperative began in October 1996,and was used to
purchase service area from US West.Payments began in 1997.The note has been broken down into five
separate payment schedules because the interest rate varies for each schedule.That rate ranges from 6.3%
i -7.5%.This note is secured by a shared lien on all assets and revenues of the Company.The maturity of
the last payment schedule is December 31,2012.
I The note payable to Ford Credit is payable in monthly installments of $682,including interest of 0%.
Payments began November 22,2001 and end October 22,2004.
I The note payable to Caterpillar Finance Co.is payable in monthly installments of $1,209.01,including
interest of 7.14%.Payments began December 1997 and end November 2002.The note is secured by a
backhoe.
I The note payable to Case Financing is due in monthly installments of $865 including interest of 8.9%.
Payments began July 1999 and end June 2005.The note is secured by an MX 110 tractor with loader.I The note payable to stockholder is due in monthly installments of $3,216,including interest of 7.7%.
Payments began February 2000 and end January 2003.The note is unsecured.I NOTE 4.INCOME TAXES
Income taxes reflected in the Statement of Income consist of the following:
2001 2000
i Operating income taxes
Federal income taxes -
Current tax expense (benefit)$(29,919)$(33,970)
Deferred tax expense 111,047 22,019
State income taxes -
Current tax expense (benefit)(6,787)(8,012)
Deferred tax expense 35,535 2,936
Investment tax credit,net
Total income tax expense (benefit)S 109,876 $(17,027)
-13-
DIRECTCOMMUNICATIONSROCKLAND,INC.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDEDDECEMBER31,2001 AND 2000
NOTE 4.INCOME TAXES
Cash paid for income taxes or estimated income taxes for 2001 and 2000 totaled 520 and
$232,000,respectively.
The company has state investment tax credit carojovers of approximately $374,983 which expire
from 2004-2018.
The Company has tax benefits from federal and state net operating loss carryovers of $27,366
and $5,501 expiring in 2020.
Deferred Federal and State tax liabilities and assets are comprised of the following:
2001 2000
Total deferedtax liabilities $319,469 $172,887
Total deferred tax assets (43,244)(5,501)
Net deferred tax liability $276,225 $167,386
Long-term portion $276,225 5 167,386
Current portion
Net deferred tax liability $276,225 $167,386
Included in deferred items reported on the balance sheet are as follows:
Deferred credits S 276,225 $1,676,386
The tax provisiondiffers from the expense than would result from applying the Federal statutory
rates to income before income taxes because of permanent differences related to officer life
insurance premiums,the effect of state income taxes,and amortization of investment tax credits
and excess deferred taxes.Temporary differences include depreciation,capitalized interest,bad
debts and certain payroll accruals.
NOTE 5.RETIREMENT PLANS
The Company has a non-contributorydefined benefit plan coveringmost employees.The multi-
employer retirement programs are with the National Telephone Cooperative Association (NTCA)
and have been approved by the Internal Revenue Service.Pension costs,expensed and
capitalized for 2001 and 2000 were $49,441 and $34,806,respectively.The Company makes
annual contributions to the plan equal to amounts accrued for pension expense.The Company
also participates in a profit sharing savings plan administered by NTCA.This plan is a
contributory plan based on 11%of eligible salary.All eligible employees are covered by the
plan.The annual contributions were 575,730 in 2001 an $55,718 in 2000.
-14-
DIRECT COMMUNICATIONS ROCKLAND,INC.
NOTESTO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31,2001 AND 2000
NOTE 6.COMPENSATION AGREEMENT
In 1979,the Company entered into a compensation agreement with a former stockholder and
employee,providing for payments of retirementbenefits of $4,800 annually,beginning January 1,
1980,and continuing for the lifetime of the employee,but,in any event,for a period certain of ten
years.Such benefit shall be increased annually by the proportional increases in the Consumer Price
Index for the metropolitan area of Boise,Idaho.The amount paid under this contract was $1,995
for 2001 and $7,980 for 2000.
NOTE 7.RELATED PARTY TRANSACTIONS
The Company had various transactions with CIT Communications,Inc.The Company's president
and majority shareholder has an approximate5.95%interest in CIT.
The Company has invested $160,861 in the common stock of CIT,which approximates 10.5%
interest.$2,8 14 for newsletters and satisfaction surveys was paid to CIT in 2000.
The Company has entered into the following related party transactions during2001 and 2000:
1 Direct Communications Internet,Inc.
This Company is a wholly-owned subsidiary of Direct Communications Star West,Inc.
and charges the company for internet services,which the Company in turn charges to its
customers who have signed up for these services.The net effect on the Company is zero
because the Companies record the income for the charges and expense the charges from
the internet provider.The income and expense are eliminated at year end.The amount
paid during 2001 and 2000 amounted to $107,908 and $23,271,respectively.The
Company also loaned $50,000 during 2001.The balance outstanding at December 31,
2001,was $44,889.
2 Direct Communications Long Distance,LC
The Company entered into an agreement with Direct CommunicationsLong Distance,
LC,which is 100%owned by Direct CommunicationsStar West.Inc.The agreement is
for long distance services to the Company.$54,523 was paid in 2001 and $74,344 was
paid in 2000.
3 Direct Communications Star West,Inc.
This company is owned 50%by the officers of the Company.Services are providedto the
Company for after hours calling,personnel management,marketing and rent of the
building used by the Company.The amount paid during 2001 and 2000 amounted to
$116,598 and $44,861,respectively.
4 Other transactions include rent,marketing services and computer consulting.The amount
spent in 2001 and 2000 was $22,655 and $42,445,respectively.
-15-
DIRECT COMMUNICATIONSROCKLAND,INC.
NOTES TO FINANCIALSTATEMENTS
FORTHE YEARS ENDED DECEMBER 31,200l AND 2000
NOTE 8.LINE OF CREDIT
The Company has an unsecured line of credit from the Rural TelephoneFinance Cooperative(RTFC)
with a maximum limit of $200,000expiring September 2002.The credit line bears interest at prime
plus 1.5%.During the years ended December31,2001 and 2000,there were borrowings of $0 and
$200,000 against this line of credit.The line of credit agreement providesthat no payment of cash
dividends can be made while a loan balance remains outstanding without RTFC approval,and the
balance outstanding must be reduced to $-0-for 5 working days each year based on the date of the
first outstanding advance.At December31,2001,the balance was $0.
NOTE 9.CONCENTRATIONS OF CREDIT RISK -CASH BALANCES
The Company maintains most of its cash accounts in commercial banks located in Idaho.Accounts
2001 2000
Total cash held (bankbalance)$1,401,000 $811,710
Portion insured by FDIC (270,988)(438,553)
Uninsuredcash balances $1,130,012 $373,157
Credit sales are made to the Company's customers in the ordinary course of business.Generally,these
sales are unsecured.
NOTE 10.ACCOUNTS RECEIVABLE
The Company had the following accounts receivableat December 31,2001 and 2000:
2001 2000
Unbilled amounts $19,790 $18,220
Billed to customers 108,848 116,247
Bad debt reserve (12,815)(10,745)
115,823 123,722
Interexchange carriers and other 443,564 381,952
$559,387 $505,674
-16-
DIRECT COMMUNICATIONS ROCKLAND,INC.
NOTESTO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31,2001 AND 2000
NOTE 11.TEMPORARY INVESTAŒNTS
Temporary cash investments consist of amounts invested in certificates of deposit,mutual funds and
stocks.They are categorized as trading securities.
2001 2000
Amortized Fair Amortized Fair
Cost Value Cost Value
TradingSecurities $75,746 S 76,194 $72,838 $73,231
The unrealizedgain (loss)on trading securities was $55 and $(8,750)for the years ended December 31,
2001 and 2000,respectively.Realized gains (losses)in 2001 and 2000 were SO and $5,787.
NOTE 12.COMPREHENSIVE INCOME
The Company had no components of comprehensiveincome required to be disclosed under Statement of
Financial Accounting Standards (SFAS)130.
NOTE 13.SETTLEMENTS
The Company participates in cost recoverypools nationally and in the State of Idaho.The Companyhas
significantly invested in plant over the past three years and is expecting recoveries from the pools to
cover the increased costs.
-17-
BALANCE SHEETAssetsandOtherDebits
Balance Balance IncreaseBeginningatEndor
Title of Account of Year of Year (Decrease)
Current Assets
1120 Cash and Equivalents
1130 Cash 146,356 162,672 16,316
1140 Special Cash Deposits 478,222 6,401 (471,821)
1150 Working Cash Advances 90 300 210
1160 Temporary investments 72,843 76,194 3,351
1180 Telecommunications Accts.Receivable 134,467 128,637 (5,830)
1181 Accts.Rec.Allow.-Telecommunications (10,745)(12,815)(2,070)
1190 Other Accounts Receivable 381,603 442,331 60,728
1191 Accounts ReceivableAllow.-Other
1200 Notes Receivable 44,889
1201 Notes Receivable Allowance
1210 Interest &Dividends Receivable 349 1,233 884
1220 Material and Supplies 163,754 261,335 97,581
1280 Prepayments
1290 Prepaid Rents
1300 Prepaid Taxes 23,180 23,180 0
1310 Prepaid Insurance 8,454 45,013 36,559
1320 Prepaid Directory Expenses
1330 Other Prepayments
1350 Other Current Assets
Noncurrent Assets
1401 Investment in Affiliated Companies 578,174 708,005 129,831
1402 investment in Nonaffiliated Companies
1406 Nonregulated investments
1407 Unamortized Debt lssuance Expense
1408 Sinking Funds
1410 Other Noncurrent Assets 9,787 9,787 0
1438 Deferred Maintenance &Retirements
1439 Deferred Charges
1500 Other Jurisdiction Assets -Net
Property,Plant and Equipment
2001 Telecommunications Plants in Service 16,656,821 19,455,923 2,799,1022002Prop.Held for Future Telecom.Use
2003 Telecom.Plant under Constr.-Short Term 517,114 37,304 (479,810)2004 Telecom.Plant under Constr.-Long Term
2005 Telecom.Plant Adjustment
2006 Nonoperating Plant 1,176,943 1,176,943 02007Goodwill
Depreciation and Amortization Accounts
3100 Accumulated Depreciated 5,689,056 6,695,810 1,006,7543200Accum.Depre.-Held for Future Use
3300 Accumulated Depreciation -Nonoperating3400AccumulatedAmortization-Tangible
3410 Accum.Amort.-Capitalized Leases
3420 Accum.Amort.-Leasehold Improvements
3500 Accumulated Amortization -Intangible
3600 Accumulated Amortization -Other
TOTAL ASSETS 14,648,356 15,871,524 1,178,280
Last Update 8/99 Page 4
BALANCE SHEET
Liabilities &Stockholders'Equity
Balance Balance Increase
Beginning at End or
Title of Account of Year of Year (Decrease)
Current Liabilities
4010 Accounts Payable 58,478 62,255 3,777
4020 Notes Payable
4030 Advance Billings and Payments 35,949 39,044 3,095
4040 Customer Deposits 1,750 1,850 100
4050 Current Maturities -Long -Term Debt 4,851,476 3,955,889 (895,587)
4060 Current Maturities -Capital leases
4070 Income Taxes -Accrued 0 0
4080 Other Taxes -Accrued 29,357 46,756 17,399
4100 Net Current Defer.Oper.Income Taxes
4110 Net Current Defer.Nonoper.IncomeTaxes
4120 Other Accrued Liabilities 117,905 72,892 (45,013)
4130 Other Current Liabilities
Long-Term Debt
4210 Funded Debt 8,033,483 9,929,708 1,896,225
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 151,791 104,202 (47,589)
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 167,386 276,225 108,839
4350 Net Noncur.Defer.Nonoper.IncomeTaxes
4360 Other Deferred Credits
4370 Other Juris.Liab.&Def.Credits -Net
Stockholders'Equity
4510 Capital Stock 50,000 50,000 0
4520 Additional Paid-In Capital
4530 Treasury Stock
4540 Other Capital
4550 Retained Earnings 1,150,782 1,332,704 181,922
TOTAL LIAB.&OTHER CREDITS 14,648,357 15,871,524 1,223,167
Last Update 8/99 Page 5
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n
t
s
of
Ye
a
r
An
a
l
y
s
i
s
of
Te
l
e
c
o
m
m
u
n
i
c
a
t
i
o
n
s
Pl
a
n
t
in
Se
r
v
i
c
e
21
1
1
La
n
d
98
,
2
3
6
11
,
3
2
8
10
9
,
5
6
4
21
1
2
Mo
t
o
r
Ve
h
i
c
l
e
s
20
4
,
2
4
1
31
,
9
2
9
31
,
5
0
6
20
4
,
6
6
5
21
1
3
Ai
r
c
r
a
f
t
21
1
4
Sp
e
c
i
a
l
Pu
r
p
o
s
e
Ve
h
i
c
l
e
s
40
,
9
0
9
78
6
41
,
6
9
5
21
1
5
Ga
r
a
g
e
Wo
r
k
Eq
u
i
p
m
e
n
t
99
,
2
4
2
6,
2
1
2
10
5
,
4
5
4
21
1
6
Ot
h
e
r
Wo
r
k
Eq
u
i
p
m
e
n
t
55
1
,
5
6
6
11
8
,
6
1
6
67
0
,
1
8
2
21
2
1
Bu
i
l
d
i
n
g
s
1,
4
4
0
,
6
5
8
73
,
6
1
9
1,
5
1
4
,
2
7
7
21
2
2
Fu
r
n
i
t
u
r
e
53
,
7
0
0
10
,
4
1
7
64
,
1
1
7
-
21
2
3
Of
f
i
c
e
Eq
u
i
p
m
e
n
t
76
,
8
4
9
28
,
5
8
4
69
,
4
8
1
17
4
,
9
1
4
21
2
4
Ge
n
e
r
a
l
Pu
r
p
o
s
e
Co
m
p
u
t
e
r
s
28
3
,
7
7
0
38
,
9
2
8
32
2
,
6
9
8
t
22
1
1
An
a
l
o
g
El
e
c
t
r
o
n
i
c
Sw
i
t
c
h
i
n
g
22
1
2
Dig
i
t
a
l
El
e
c
t
r
o
n
i
c
Sw
i
t
c
h
i
n
g
1,
5
5
0
,
4
3
9
7,
9
7
9
19
,
7
7
1
(7
5
,
7
8
1
)
1,
4
6
2
,
8
6
6
y
22
1
5
El
e
c
t
r
o
-
M
e
c
h
a
n
i
c
a
l
Sw
i
t
c
h
i
n
g
22
2
0
Op
e
r
a
t
o
r
Sy
s
t
e
m
s
22
3
1
Ra
d
i
o
Sy
s
t
e
m
s
22
3
2
Ci
r
c
u
i
t
Eq
u
i
p
m
e
n
t
96
5
,
8
4
8
84
5
,
7
8
8
6,
3
0
0
1,
8
1
7
,
9
3
6
23
1
1
St
a
t
i
o
n
Ap
p
a
r
a
t
u
s
23
2
1
Cu
s
t
o
m
e
r
Pr
e
m
i
s
e
s
Wir
i
n
g
23
4
1
La
r
g
e
Pr
i
v
a
t
e
Br
a
n
c
h
Ex
c
h
a
n
g
e
s
23
5
1
Pu
b
l
i
c
Te
l
e
p
h
o
n
e
Te
r
m
i
n
a
l
Eq
u
i
p
m
e
n
t
61
,
0
6
4
61
,
0
6
4
0
23
6
2
Ot
h
e
r
Te
r
m
i
n
a
l
Eq
u
i
p
m
e
n
t
24
1
1
Po
l
e
s
20
,
9
4
6
20
,
9
4
6
0
24
2
1
Ae
r
i
a
l
Ca
b
l
e
24
2
2
Un
d
e
r
g
r
o
u
n
d
Ca
b
l
e
24
2
3
Bu
r
i
e
d
Ca
b
l
e
11
,
2
0
9
,
3
5
3
1,
7
5
8
,
2
0
2
12
,
9
6
7
,
5
5
5
24
2
4
Su
b
m
a
r
i
n
e
Ca
b
l
e
24
2
6
In
t
r
a
b
u
i
l
d
i
n
g
Ne
t
w
o
r
k
Ca
b
l
e
24
3
1
Ae
r
i
a
l
Wi
r
e
24
4
1
Co
n
d
u
i
t
Sy
s
t
e
m
s
26
8
1
Ca
p
i
t
a
l
Le
a
s
e
s
26
8
2
Le
a
s
e
h
o
l
d
Im
p
r
o
v
e
m
e
n
t
s
26
9
0
In
t
a
n
g
i
b
l
e
s
1,
1
7
6
,
9
4
3
1,
1
7
6
,
9
4
3
TO
T
A
L
PL
A
N
T
AC
C
O
U
N
T
S
17
,
8
3
3
,
7
6
4
2,
9
3
2
,
3
8
7
13
3
,
2
8
6
0
20
,
6
3
2
,
8
6
6
La
s
t
Up
d
a
t
e
8/
9
9
Pa
g
e
6
AN
A
L
Y
S
I
S
OF
TE
L
E
C
O
M
M
U
N
I
C
A
T
I
O
N
S
PL
A
N
T
AC
C
O
U
N
T
S
ID
A
H
O
Op
e
r
a
t
i
o
n
s
On
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
Ye
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
of
Te
l
e
c
o
m
m
u
n
i
c
a
t
i
o
n
s
Pl
a
n
t
in
Se
r
v
i
c
e
21
1
1
La
n
d
21
1
2
3
AM
o
t
o
r
n
V
e
h
i
c
l
e
s
S
A
ME
A
ST
O
T
A
L
21
1
4
Sp
e
c
i
a
l
Pu
r
p
o
s
e
Ve
h
i
c
l
e
s
21
Ga
m
e
Wo
r
k
E
ui
p
m
e
n
t
CO
MP
A
NY
21
2
2
Fu
r
n
i
t
u
r
e
21
2
3
Of
f
i
c
e
Eq
u
i
p
m
e
n
t
21
2
4
Ge
n
e
r
a
l
Pu
r
p
o
s
e
Co
m
p
u
t
e
r
s
22
1
1
An
a
l
o
g
El
e
c
t
r
o
n
i
c
Sw
i
t
c
h
i
n
g
22
1
2
Di
g
i
t
a
l
El
e
c
t
r
o
n
i
c
Sw
i
t
c
h
i
n
g
22
1
5
El
e
c
t
r
o
-
M
e
c
h
a
n
i
c
a
l
Sw
i
t
c
h
i
n
g
22
2
0
Op
e
r
a
t
o
r
Sy
s
t
e
m
s
22
3
1
Ra
d
i
o
Sy
s
t
e
m
s
22
3
2
Ci
r
c
u
i
t
Eq
u
i
p
m
e
n
t
23
1
1
St
a
t
i
o
n
Ap
p
a
r
a
t
u
s
23
2
1
Cu
s
t
o
m
e
r
Pr
e
m
i
s
e
s
Wir
i
n
g
23
4
1
La
r
g
e
Pr
i
v
a
t
e
Br
a
n
c
h
Ex
c
h
a
n
g
e
s
23
5
1
Pu
b
l
i
c
Te
l
e
p
h
o
n
e
Te
r
m
i
n
a
l
Eq
u
i
p
m
e
n
t
23
6
2
Ot
h
e
r
Te
r
m
i
n
a
l
Eq
u
i
p
m
e
n
t
24
1
1
Po
l
e
s
24
2
1
Ae
r
i
a
l
Ca
b
l
e
24
2
2
Un
d
e
r
g
r
o
u
n
d
Ca
b
l
e
24
2
3
Bu
r
i
e
d
Ca
b
l
e
24
2
4
Su
b
m
a
r
i
n
e
Ca
b
l
e
24
2
6
In
t
r
a
b
u
i
l
d
i
n
g
Ne
t
w
o
r
k
Ca
b
l
e
24
3
1
Ae
r
i
a
l
Wir
e
24
4
1
Co
n
d
u
i
t
Sy
s
t
e
m
s
26
8
1
Ca
p
i
t
a
l
Le
a
s
e
s
26
8
2
Le
a
s
e
h
o
l
d
Im
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
PL
A
N
T
AC
C
O
U
N
T
S
La
s
t
Up
d
a
t
e
8/9
9
Pa
g
e
7
AN
A
L
Y
S
I
S
OF
EN
T
R
I
E
S
IN
AC
C
U
M
U
L
A
T
E
D
DE
P
R
E
C
I
A
T
I
O
N
Ac
c
o
u
n
t
31
0
0
TO
T
A
L
Co
m
p
a
n
y
Ba
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
*
g
Ye
a
r
Ad
j
u
s
t
m
e
n
t
s
of
Ye
a
r
An
a
l
y
s
i
s
of
En
t
r
i
e
s
in
Ac
c
u
m
u
l
a
t
e
d
De
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
,
9
2
4
25
.
0
%
21
,
7
2
7
(2
1
,
6
6
0
)
15
4
,
9
9
1
21
1
3
Ai
r
c
r
a
f
t
21
1
4
Sp
e
c
i
a
l
Pu
r
p
o
s
e
Ve
h
i
c
l
e
s
20
,
9
3
5
f.
0
°
/
2.
7
0
9
ca
a
21
1
5
Ga
r
a
g
e
Wo
r
k
Eq
u
i
p
m
e
n
t
9,
4
5
4
(
12
.
5
%
)
21
1
6
Ot
h
e
r
Wo
r
k
Eq
u
i
p
m
e
n
t
30
4
,
4
2
0
N
21
2
1
Bu
i
l
d
i
n
g
s
15
0
,
8
4
7
3.
0
%
21
2
2
Fu
r
n
i
t
u
r
e
1,
4
2
7
12
.
5
%
Ë
i
';
I
s
°s
°
:
:
h
i
ne
s
2
6
22
1
2
Di
g
i
t
a
l
El
e
c
t
r
o
n
i
c
Sw
i
t
c
h
i
n
g
1,
0
6
9
,
2
4
6
12
.
0
%
22
1
5
El
e
c
t
r
o
-
M
e
c
h
a
n
i
c
a
l
Sw
i
t
c
h
i
n
g
22
2
0
Op
e
r
a
t
o
r
Sy
s
t
e
m
s
22
3
1
Ra
d
i
o
Sy
s
t
e
m
s
22
3
2
Ci
r
c
u
i
t
Eq
u
i
p
m
e
n
t
71
3
,
8
5
2
12
.
0
%
c
«
23
1
1
St
a
t
i
o
n
Ap
p
a
r
a
t
u
s
23
2
1
Cu
s
t
o
m
e
r
Pr
e
m
i
s
e
s
Wi
r
i
n
g
23
4
1
La
r
g
e
Pr
i
v
a
t
e
Br
a
n
c
h
Ex
c
h
a
n
g
e
s
23
5
1
Pu
b
l
i
c
Te
l
e
p
h
o
n
e
Te
r
m
i
n
a
l
Eq
u
i
p
m
e
n
t
61
,
0
6
4
23
6
2
Ot
h
e
r
Te
r
m
i
n
a
l
Eq
u
i
p
m
e
n
t
'3
24
1
1
Po
l
e
s
20
,
9
4
6
.0
°
/
24
2
1
Ae
r
i
a
l
Ca
b
l
e
24
2
2
Un
d
e
r
g
r
o
u
n
d
Ca
b
l
e
24
2
3
Bu
r
i
e
d
Ca
b
l
e
2,
5
5
6
,
7
1
8
6.
5
%
75
1d
o.
«
4
ÑO
24
2
4
Su
b
m
a
r
i
n
e
Ca
b
l
e
24
2
6
In
t
r
a
b
u
i
l
d
i
n
g
Ne
t
w
o
r
k
Ca
b
l
e
24
3
1
Ae
r
i
a
l
Wi
r
e
24
4
1
Co
n
d
u
i
t
Sy
s
t
e
m
s
TO
T
A
L
5,
3
5
4
,
8
0
2
*P
l
e
a
s
e
li
s
t
in
d
i
v
i
d
u
a
l
de
p
r
e
c
i
a
t
i
o
n
ra
t
e
fo
r
ea
c
h
ac
c
o
u
n
t
.
La
s
t
Up
d
a
t
e
8/
9
9
Pa
g
e
8
/
AN
A
L
Y
S
I
S
OF
EN
T
R
I
E
S
IN
AC
C
U
M
U
L
A
T
E
D
DE
P
R
E
C
I
A
T
I
O
N
Ac
c
o
u
n
t
31
0
0
ID
A
H
O
Op
e
r
a
t
i
o
n
s
On
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
of
En
t
r
i
e
s
in
Ac
c
u
m
u
l
a
t
e
d
De
p
r
e
c
i
a
t
i
o
n
21
1
2
Mo
t
o
r
Ve
h
i
c
l
e
s
li
l
l
i
PW
u
os
E
e
ep
h
c
e
n
e
s
SA
M
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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.
BookCostof BookCostof
Investments Investments
Disposed of Held atDescriptionDateAcquiredThisyearEndofYear
CIT COMMUNICATIONS 1991 160,861
RTFC CERTIFICATES 1993,94,&96 187,189
SYSTEM SEVEN 1994 19,668 0
ASSOCIATED NETWORK PART 1998 5,100
NRTC'S 220 MHz WIRELESS 1999 114,855
SYRINGA NETWORK 2000 232,000
NECA SERVICES 2000 8,000
Totals 19,668 708,005
RECEIVABLES
Itemize amounts show in Accounts 1180,1190 and 1200.For notes receivable list each note separately andincludethematuritydateandinterestrate.Minor amounts in Account 1210 may be combined.
Amount at End of Year
Notes AccountsNameofCompanyReceivableReceivable
CUSTOMERS 115,823
INTEREXCHANGE CARRIERS AND OTHERS 443,564
DIRECT INTERNET,APRIL 2006,6%44,889
Totals 44,889 559,387
Last Update 8/99 Page 10
NOTES PAYABLE
For Notes Payable,list each note separately and include the maturity date and interest rate.
Interest
Name of Çreditor Date of Note Rate Due Date Face Amount
NONE
Totals
ACCOUNTS PAYABLE
Report below all Accounts Payable amounting to more than $100.00
Name of Creditor Amount
SEE ATTACHED LISTING
Totals
Last Update 8/99 Page 11
ACCOUNTS PAYABLE
NAME OF CREDITOR AMOUNT
Computer Technology,Inc.1,863.10
Dam Lumber 273.23
Direct Internet 14,575.35
Direct Communications Long Distance 10,147.40
Employee Flex Plan 629.03
Federal Excise Tax 845.19
Fremont Telcom 699.74
GVNW,Inc.5,910.37
Idaho Power Company 567.06
Intermountain Gas Company 128.76
Jiffy Lube 159.50
NECA Services 1,241.81
Paris County Store 557.30
P.P.S.Company 470.40
Pro -Flame,Inc.608.30
Schmidt Oil 637.66
Silver Star Telephone Co.800.00
U.S.West 373.55
Unbilled Toll 19,790.00
Wiggins &Co.1,450.00
All others under $100 526.87
Total Accounts Payable 62,254.62
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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 andpreferred.
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 SheetCIpse&Series of Stock Authorized per Share Shares Amount
COMMON 50,000 $1.00 50,000 $50,000.00
Last Update 8/99 Page 13
INCOME &RETAINED EARNINGS STATEMENT
Item Total Company Idaho Only
Total Operating Income (from page 15)3,806,719
Total Operating Expenses (from page 17)2,651,335 SAME
AS7100OtherOperatingIncomeandExpenseTOTAL
7210 Operating Investment Tax Credits-Net
7220 Operating Federal Income Taxes (29,919)
7230 Operating State and Local Income Taxes (6,787)
7240 Operating Other Taxes 97,866
7250 Provision for Deferred Operating Income Taxes-Net 146,582
7200 Operating Taxes (Total)
7310 Dividend Income 19,099
7320 Interest Income (23,163)
7330 Income from Sinking and Other Funds
7340 Allowance for Funds Used During Construction (64,019)
7350 Gains/Losses from the Disposition of Certain Property 2,476
7360 Other Nonoperating Income (37,916)
7370 Special Charges 23,066
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 Nonoperating Taxes
7510 Interest on Funded Debt 302,414
7520 Interest Expense-Capital Leases
7530 Amortization of Debt Issuance Expense
7540 Other Interest Deductions 538,713
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 5,050
AMOUNT TRANSFERRED TO RETAINED EARNINGS 181,922
Last Update 8/99 Page 14
OPERATING REVENUES
Item Total Company Idaho Only
Local Network Services Revenues
5001 Basic Area Revenue 440,220
5002 Optional Extended Area Revenue SAME5003CellularMobileRevenueAS5004OtherMobileServicesRevenue
5010 Public Telephone Revenue TOTAL
5040 Local Private Line Revenue
5050 Customer Premises Revenue
5060 Other Local Exchange Revenue 46,415
5069 Other Local Exchange Settlements
Network Access Services Revenues
5081 End User Revenue (SLC)73,004
5082 Switched Access Revenue (Interstate)2,909,742
5083 Special Access Revenue
5084 State Access Revenue (\ntrastate)300,957
Long Distance Network Services Revenues
5100 Long Distance Message Revenue -All 2,051
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 14,222
5269 Other Revenue Settlements
5270 Carrier Billing &Collection Revenue 22,308
Uncollectible Revenues
5301 Uncollectible Revenue -Telecommunications (2,200)
5302 Uncollectible Revenue -Other
TOTAL OPERATING REVENUES 3,806,719
Please identify the following revenues:
NECA USF $2.647.365 .To what account were they booked?
5082.11,5082.21,&5082.22
State USF $221.847 .To what account were they booked?
5084.60
Last Update 8/99 Page 15
OPERATING REVENUES
Item Total Company Idaho Only
Plant Specific Operations Expense
6110 Network Support Expenses
6112 Motor Vehicle Expense 1,398 SAME6113AircraftExpense
6114 Special Purpose Vehicles Expense AS
6115 Garage Work Equipment Expense TOTAL
6116 Other Work Equipment Expense 471
6120 General Support Expenses
6121 Land and Building Expenses 48,711
6122 Furniture and Artworks Expense 1,563
6123 Office Equipment Expense
6124 General Purpose Computers Expense 75,364
6210 Central Office Switching Expenses
6211 Analog Electronic Expense
6212 Digital Electronic Expense 70,041
6215 Electro-Mechanical Expense
6220 Operators System Expense
6230 Central Office Transmission Expenses
6231 Radio Systems Expense
6232 Circuit Equipment Expense 87,209
6310 Information Origination/Termination Expense
6311 Station Apparatus Expense 905
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
6422 Underground Cable Expense
6423 Buried Cable Expense 404,858
6424 Submarine Cable Expense
6425 Deep Sea Cable Expense
6426 Intrabuilding Network Cable Expense
6431 Aerial Wire Expense 129
6441 Conduit Systems Expense
TOTAL PLANT SPECIFIC OPERATIONS EXPENSE 690,648
Last Update 8/99 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 SAME6512ProvisioningExpense11,384 AS6530NetworkOperationsExpense
6531 Power Expense 24,455 TOTAL
6532 Network Administration Expense 60
6533 Testing Expense 74
6534 Plant Operations Administration Expense
6535 Engineering Expense 56,538
6540 Access Expense 26
6560 Depreciation and Amortization Expenses 78,006
6561 Depreciation Expense-Telecom.Plant in Service 1,038,503
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 1,209,047
Customer Operations Expense
6610 Marketing
6611 Product Management
6612 Sales
6613 Product Advertising 6,507
6620 Services
6621 Call Completion Services
6622 Number Services 2,389
6623 Customer Services 188,285
Total Customer Operations Expense 197,181
Corporate Operations Expense
6710 Executive and Planning
6711 Executive 178,103
6712 Planning
6720 General and Administrative
6721 Accounting and Finance 298,345
6722 External Relations 6,520
6723 Human Resources 43,233
6724 Information Management
6725 Legal 17,467
6726 Procurement
6727 Research and Development
6728 Other General and Administrative 10,792
6790 Provision for Uncollectible Notes Receivable
Total Corporate Operations Expense 554,459
TOTAL OPERATING EXPENSES 2,651,335
Last Update 8/99 Page 17
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n
l
i
s
t
e
d
:
2
Di
a
l
To
n
e
fr
o
m
an
o
t
h
e
r
C.
O
.
:
)
Cu
s
t
o
m
Ca
l
l
i
n
g
:
Nu
m
b
e
r
of
cu
s
t
o
m
e
r
s
wi
t
h
at
le
a
s
t
on
e
fe
a
t
u
r
e
:
_
ji
3
To
t
a
l
nu
m
b
e
r
of
fe
a
t
u
r
e
s
su
b
s
c
r
i
b
e
d
to
:
_
y
La
s
t
Up
d
a
t
e
8/
9
9
Pa
g
e
18
CE
N
T
R
A
L
OF
F
I
C
E
DA
T
A
as
of
De
c
e
m
b
e
r
31
,
_2
0
0
1
(u
n
l
e
s
s
ot
h
e
r
w
i
s
e
in
d
i
c
a
t
e
d
)
Na
m
e
of
Ce
n
t
r
a
l
Of
f
i
c
e
:
PA
R
I
S
Pr
e
f
i
x
(e
s
)
:
$4
5
Ce
n
t
r
a
l
Of
f
i
c
e
Sw
i
t
c
h
Ty
p
e
:
SI
E
M
E
N
S
ST
R
O
M
B
E
R
G
-
CA
R
L
S
O
N
DC
O
Ch
e
c
k
al
l
th
a
t
ap
p
l
y
:
Ch
e
c
k
on
e
:
Ch
e
c
k
on
e
:
St
a
n
d
Al
o
n
e
l
_
Di
g
i
t
a
l
l
El
e
c
t
r
o
n
i
c
]
Ho
s
t
_
An
a
l
o
g
El
e
c
t
r
o
-
M
e
c
h
a
n
i
c
a
l
Re
m
o
t
e
Ot
h
e
r
:
Ac
c
e
s
s
Li
n
e
Ca
p
a
c
i
t
y
Ac
c
e
s
s
Li
n
e
s
in
Us
e
De
s
i
g
n
:
15
2
0
Cu
s
t
o
m
e
r
Li
n
e
s
:
BA
1
(I
n
c
l
u
d
e
Ce
n
t
r
e
x
,
PA
L
,
Se
m
i
-
P
u
b
.
)
In
s
t
a
l
l
e
d
/
E
q
u
i
p
p
e
d
:
14
4
2
Pu
b
l
i
c
Te
l
e
p
h
o
n
e
Li
n
e
s
_
Q
Co
m
p
a
n
y
Of
f
i
c
i
a
l
Li
n
e
s
_
2
Co
m
p
a
n
y
Te
s
t
Li
n
e
s
Cl
a
s
s
i
f
i
c
a
t
i
o
n
of
Cu
s
t
o
m
e
r
Ac
c
e
s
s
Re
s
i
d
e
n
c
e
Bu
s
i
n
e
s
s
Mu
l
t
i
-
Sin
g
l
e
Li
n
e
Mu
l
t
i
-
Si
n
g
l
e
Li
n
e
To
t
a
l
Lin
e
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
y
1-
P
a
r
t
y
Pa
r
t
y
Re
s
i
d
e
n
c
e
Ñ.
A
.
R
.
1-
P
a
r
t
y
1-
P
a
r
t
y
Pa
r
t
y
Bu
s
i
n
e
s
s
&
Bu
s
i
n
e
s
s
Be
g
i
n
n
i
n
g
of
Ye
a
r
82
7
82
7
10
1
10
1
92
8
Ne
w
Co
n
n
e
c
t
s
17
4
17
4
21
21
19
5
Di
s
c
o
n
n
e
c
t
s
16
8
16
8
14
14
18
2
En
d
o
f
Y
e
a
r
83
3
83
3
10
8
10
8
94
1
Fo
r
e
i
g
n
Ex
c
h
a
n
g
e
:
Di
r
e
c
t
o
r
y
Li
s
t
i
n
g
s
:
Di
a
l
To
n
e
fr
o
m
th
i
s
C.
O
.
:
_
_
1
Nu
m
b
e
r
of
Cu
s
t
o
m
e
r
s
wi
t
h
No
n
p
u
b
l
i
s
h
e
d
or
No
n
l
i
s
t
e
d
:
Di
a
l
To
n
e
fr
o
m
an
o
t
h
e
r
C.
O
.
:
)
Cu
s
t
o
m
Ca
l
l
i
n
g
:
Nu
m
b
e
r
of
cu
s
t
o
m
e
r
s
wi
t
h
at
le
a
s
t
on
e
fe
a
t
u
r
e
:
34
0
To
t
a
l
nu
m
b
e
r
of
fe
a
t
u
r
e
s
su
b
s
c
r
i
b
e
d
to
:
2
La
s
t
Up
d
a
t
e
8/
9
9
Pa
g
e
18
CE
N
T
R
A
L
OF
F
I
C
E
DA
T
A
as
of
De
c
e
m
b
e
r
31
,
20
0
1
(u
n
l
e
s
s
ot
h
e
r
w
i
s
e
in
d
i
c
a
t
e
d
)
Na
m
e
of
Ce
n
t
r
a
l
Of
f
i
c
e
:
RO
C
K
L
A
N
D
Pr
e
f
i
x
(e
s
)
:
Ce
n
t
r
a
l
Of
f
i
c
e
Sw
i
t
c
h
Ty
p
e
:
SI
E
M
E
N
S
ST
R
O
M
B
E
R
G
-
CA
R
L
S
O
N
DC
O
Ch
e
c
k
al
l
th
a
t
ap
p
l
y
:
Ch
e
c
k
on
e
:
Ch
e
c
k
on
e
:
St
a
n
d
Al
o
n
e
l
_
_
Di
g
i
t
a
l
l
El
e
c
t
r
o
n
i
c
_
X
Ho
s
t
)
An
a
l
o
g
El
e
c
t
r
o
-
M
e
c
h
a
n
i
c
a
l
Re
m
o
t
e
Ot
h
e
r
:
Ac
c
e
s
s
Li
n
e
Ca
p
a
c
i
t
y
Ac
c
e
s
s
Li
n
e
s
in
Us
e
De
s
i
g
n
:
72
0
Cu
s
t
o
m
e
r
Li
n
e
s
:
35
7
(I
n
c
l
u
d
e
Ce
n
t
r
e
x
,
PA
L
,
Se
m
i
-
P
u
b
.
)
In
s
t
a
l
l
e
d
/
E
q
u
i
p
p
e
d
:
64
8
Pu
b
l
i
c
Te
l
e
p
h
o
n
e
Lin
e
s
_
ÿ
Co
m
p
a
n
y
Of
f
i
c
i
a
l
Li
n
e
s
_
_
Q
Co
m
p
a
n
y
Te
s
t
Li
n
e
s
Cl
a
s
s
i
f
i
c
a
t
i
o
n
of
Cu
s
t
o
m
e
r
Ac
c
e
s
s
Re
s
i
d
e
n
c
e
Bu
s
i
n
e
s
s
Mu
l
t
i
-
Si
n
g
l
e
Li
n
e
Mu
l
t
i
-
Si
n
g
l
e
Li
n
e
To
t
a
l
Li
n
e
Mu
l
t
i
-
Su
b
t
o
t
a
l
Ce
n
t
r
e
x
Lin
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
y
1-
P
a
r
t
y
Pa
r
t
y
Re
s
i
d
e
n
c
e
N.
A
.
R
.
1-
P
a
r
t
y
1-
P
a
r
t
y
Pa
r
t
y
Bu
s
i
n
e
s
s
&
Bu
s
i
n
e
s
s
Be
g
i
n
n
i
n
g
of
Ye
a
r
24
4
24
4
96
96
34
0
Ne
w
Co
n
n
e
c
t
s
55
55
17
17
72
Di
s
c
o
n
n
e
c
t
s
45
45
10
10
55
En
d
o
f
Y
e
a
r
25
4
25
4
10
3
10
3
35
7
Fo
r
e
i
g
n
Ex
c
h
a
n
g
e
:
Di
r
e
c
t
o
r
y
Li
s
t
i
n
g
s
:
Di
a
l
To
n
e
fr
o
m
th
i
s
C.
O
.
:
Nu
m
b
e
r
of
Cu
s
t
o
m
e
r
s
wi
t
h
No
n
p
u
b
l
i
s
h
e
d
or
No
n
l
i
s
t
e
d
:
_
_
4
Di
a
l
To
n
e
fr
o
m
an
o
t
h
e
r
C.
O
.
:
_
1
Cu
s
t
o
m
Ca
l
l
i
n
g
:
Nu
m
b
e
r
of
cu
s
t
o
m
e
r
s
wi
t
h
at
le
a
s
t
on
e
fe
a
t
u
r
e
:
_
24
To
t
a
l
nu
m
b
e
r
of
fe
a
t
u
r
e
s
su
b
s
c
r
i
b
e
d
to
:
_
1
û
La
s
t
Up
d
a
t
e
8/
9
9
Pa
g
e
18
NU
M
B
E
R
OF
CA
L
L
S
CO
M
P
L
E
T
E
D
BY
CU
S
T
O
M
E
R
S
DU
R
I
N
G
(Y
e
a
r
)
1
Av
e
r
a
g
e
#
Lo
c
a
l
Ca
l
l
s
To
l
l
Ca
l
l
s
Or
i
g
i
n
a
t
e
d
(T
o
t
a
l
of
al
l
Ca
r
r
i
e
r
s
)
of
Cu
s
t
o
m
e
r
Nu
m
b
e
r
Av
g
.
/
Av
g
.
/
Lo
c
a
l
Ex
c
h
a
n
g
e
Li
n
e
s
in
Us
e
(1
0
0
0
s
)
Li
n
e
in
t
r
a
s
t
a
t
e
In
t
e
r
s
t
a
t
e
,
To
t
a
l
Li
n
e
1
AR
B
O
N
10
3
5,
4
4
2
24
,
1
5
5
29
,
5
9
7
28
6
2
RO
C
K
L
A
N
D
35
5
25
,
2
2
0
13
7
,
0
4
8
16
2
,
2
6
8
45
7
3
PA
R
I
S
95
9
27
,
9
4
6
39
6
,
4
1
9
42
4
,
3
6
5
44
3
5 6 7 8 9 10 11 12 13 14 15 16 17 18
La
s
t
Up
d
a
t
e
8/
9
9
Pa
g
e
19
ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
YEARENDEDDECEMBER31,2001 .
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 No]
Included in directory Yes]_No
Date of notification Paris in January,Rockland &Arbon in June
Alternate method of notification Local newspaper annually
Rule IDAPA 31.41.01.403.02
Record of Complaints:
Number received by Company 246
Category of complaints (if known):
Deposit Disputes
Charges on Bill 34
Denial/Termination
Quality or Availability
of Service 180
Carrier Selection/Assignment 28
Miscellaneous 4
Last Update 8/99 Page 20
CERTIFICATE
State of Idaho )
)ss
County of )
WE,the undersigned Leonard May
and Bruce Steed
of the___Direct Communicâtions Rockland,Inc.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.
(Chief fficer)
(Officer in Charge of Accounts)
Subscribe I ty)o Before Me this day of ,(Year)O
gdklexcel/jnelsonlanulrpts/telannualrpt
Last Update 8/99 Page 21