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HomeMy WebLinkAbout2004 Revised Annual Report.pdfINLAND TELEPHONE COMPANY Corporate Offices 103 S. 2nd Sf. O. Box 171 Roslyn, WA 98941 INLAND TELEPHONE Telephone: (509) 649-2211 Fax: (509) 649-3300 VIA CERTIFIED MAIL RETURN RECEIPT REQUESLfQ r"' """ ;~J ;ft , r:' ",."", August 30, 2005 _.."- -"" """ r' .".,'~ ":'" .. -" i;)fT" ::.::.:::::; ::2 ",(: Randy Lobb, Administrator Utilities Division Idaho Public Utilities Commission P. O. Box 83720 Boise, Idaho 83720-0074 C-) ~~ " , \.0 C) ,, S~ 't~~, " ~ I"" ;::'' , '- .. . . (f) .~'.- :"-" Z; t~,J L~J en- _..",- Dear Mr. Lobb: Enclosed please find a REVISED hard copy of the Annual Report of Inland Telephone Company ("Company ) to the Idaho Public Utilities Commission for the year ended December 31 2004 and a completed annual report on disk. This revised report is due to the reclassification of expenses to the proper account and re-calculation of current operating taxes. Also included are the Company s REVISED Idaho separation factors for 2003 and the REVISED Idaho Separated Results of Operations (Form I) per your request. Questions regarding this report should be directed to the attention of either Greta Morgan or myself at (509) 649-2211. Very truly yours, Gregory A. Maras Secretary GAM : g 1m Enclosures cc: Dean Koch - Johnson, Stone & Pagano, P . K: \ WORD\GRET A \IPUC\RPTO4REV. DOC ANNUAL REPORT OF SMAll TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTiliTIES COMMISSION EC:EJ\lED , , FOR THE YEAR ENDING DECEMBER 31 , 2004 ' ' " D 17J "", COMPANY INFORMATION ?nns SEP f 9 PH 2: '4 .) Pi; nduJo~I'l1 ~SIONExact name of utility: Inland Tele hone Com Address of principal office: 103 South Second Street, Roslyn, Washington 98941 Telephone Number (509) 649-2211 Cities or towns served: Colton, Dewatto, Prescott, Roslyn & Uniontown, WashinQton & Gifford & Lenore, Idaho Name and title of officer having custody of the general corporate books of account: James K. Brooks, Controller Address of office where corporate books are kept and phone number: same as principal office Organized under the laws of the State of: Date of organization: 07/02/63 Form of organization (proprietorship, association , corporation): If a Subchapter S Corporation, please specify: N/A Name and address of controlling company, if an~ Western Elite Incorporated Services, P.O. Box 687 Roslyn, Washin~ton 98941 Names of affiliated companies. Give address and description of business: (1) Inland Cellular Telephone Co. O. Box 688 , Roslyn , WA 98941-cellular telephone company, (2) R & R Cable Co., P.O. Box 610 , Roslyn , WA 98941-cable television company, (3) Inland Lon~ Distance Telephone Company, P.O. Box 904, Roslyn , WA 98941-long distance resale, (4) Newport Hills Land Co., Inc., P.O. Box 687, Roslyn, WA-Iand company, (5) Easton Ridge Land Co., Inc., P.O. Box 687, Roslyn, WA-Iand company, (6) R & R Heights Land Co., Inc. O. Box 687, Roslyn, WA-Iand company, (7) Moses Lake Views Land Co., Inc., P.O. Box 687, Roslyn , WA- land company, (8) Central Cascade Land Co., Inc. P.O. Box 687, Roslyn , WA 98941-land company 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 President Vice President Controller Name Douglas W. Weis Nathan R. Weis James K. Brooks John P. Coonan Gre A. Maras Treasurer Secretary Washington Corporation Address O. Box 171 , Roslyn, Washington 98941 O. Box 171 , Roslyn, Washington 98941 O. Box 171 , Roslyn, Washington 98941 O. Box 171 , Roslyn , Washington 98941 O. Box 171 , Roslyn , Washington 98941 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 FOR THE YEAR ENDING DECEMBER 31 , 2004 Name of Chairman of the Board: N/A Name of Secretary (or Clerk) of Board: Gregory A. Maras Number of Meetings of the Board during the year: Name and Address Douglas W. Weis Nathan R. Weis John P. Coonan ~ory A. Maras Term Expired or Current Term Will Expire Meetings Attended This year Fees Paid During Year Continuous Continuous Continuous Continuous None None None None 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 Douglas W. Weis Nathan R. Weis James K. Brooks John P. Coonan ~ory A. Maras Rev 3/02 Title Wages and Bonuses Paid $149 996 $142 131 $88 386 $146,325 $144 912 President Vice President Controller Treasurer Secretary Page 2 NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices FOR THE YEAR ENDING DECEMBER 31 , 2004 reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. Rev 3/02 Page 3 BALANCE SHEET Assets and Other Debits FOR THE YEAR ENDING DECEMBER 31. 2004Balance Balance Increase Beginning at Ena Title of Accou nt of Year of Year (DeCreaSe) Current Assets 1120 Cash and Equivalents 1130 Cash 290 309 438 123 147 814 1140 Special Cash Deposits 1150 Working Cash Advances 400 800 400 1160 Temporary Investments 079 240 042 932 (36 308) 1180 Telecommunications Accts. Receivable 102 037 212 825) 1181 Accts. Rec. Allow. -Telecommunications (10,000)(10 000) 1190 Other Accounts Receivable 6,423 238 293 509 (129 729) 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 208 495 230,158 663 1280 Prepayments 73,057 37,486 (35 571) 1290 Prepaid Rents 1300 Prepaid Taxes 131 883 131 883 1310 Prepaid Insurance 18,256 865 609 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 1402 Investment in Nonaffiliated Companies 360 215 902 298 542 083 1406 Nonregulated Investments 160 624 151 672 (8,952) 1407 Unamortized Debt Issuance Expense 800 375 (425) 1408 Sinking Funds 1410 Other Noncurrent Assets 90,416 124 708 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 492 951 899,751 406 800 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 327 834 274 958 (52 876) 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill Depreciation and Amortization Accounts 3100 Accu m u lated Depreciated 503 944 759 784 255 840 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 114 925 841 312 726 387 Rev 3/02 Page 4 BALANCE SHEET Liabilities & Stockholders' Equity FOR THE YEAR ENDING DECEMBER 31, 2004 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 LlAB. & OTHER CREDITS Rev 3/02 Balance Beginning of Year Balance at End of Year 242 548 149,543 595 261 673 786 272 800 101,460 112 907 119 089 405,701 051 582 622 320 378 789 105,864 201 11 ,428 512 092 958 581 814 177 274 150 175 93,150 175 825 625 702,447 114 925 841 312 Page 5 Increase (Decrease) (93 005) 809) 11 ,127 (101,460) 182 176,921 (34 731 ) (272 925) 773) 722 316 876,822 726,387 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s FO R T H E Y E A R E N D I N G D E C E M B E R 3 1 , 2 0 0 4 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 Y e a r Du r i n g y e a r or S o l d Ad j u s t m e n t s of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 99 , 99 4 99 , 99 4 21 1 2 Mo t o r V e h i c l e s 15 3 19 8 23 8 53 2 24 8 90 4 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 92 5 92 5 21 1 6 Ot h e r W o r k E q u i p m e n t 59 7 74 3 39 9 46 , 77 6 57 4 36 6 21 2 1 Bu i l d i n g s 76 6 62 5 86 0 76 8 , 4 8 5 21 2 2 Fu r n i t u r e 12 1 01 5 63 5 12 7 65 0 21 2 3 Of f i c e E q u i p m e n t 21 1 74 8 81 2 21 7 56 0 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 66 4 10 6 77 8 72 4 88 4 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 09 9 , 72 0 73 7 78 0 83 7 50 0 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 84 2 84 2 22 3 2 Ci r c u i t E q u i p m e n t 55 8 61 9 12 9 89 6 68 8 , 51 5 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 80 7 80 7 24 2 1 Ae r i a l C a b l e 19 8 22 9 19 8 , 22 9 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 92 3 07 7 39 1 71 0 31 4 78 7 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 69 5 69 5 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s 60 8 60 8 TO T A L P L A N T A C C O U N T S 15 , 4 9 2 95 1 1, 4 5 7 10 8 50 , 30 8 89 9 , 75 1 Re v 3 / 0 2 Pa g e 6 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y FO R T H E Y E A R E N D I N G D E C E M B E R 3 1 , 2 0 0 4 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 Y e a r Du r i n g Y e a r or S o l d Ad j u s t m e n t s of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 19 , 81 8 28 7 * 20 , 10 5 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 69 8 70 * 76 8 21 1 6 Ot h e r W o r k E q u i p m e n t 11 9 13 , 11 9 21 2 1 Bu i l d i n g s 38 7 08 6 98 0 * 39 9 , 06 6 21 2 2 Fu r n i t u r e 34 7 1 , 58 5 * 18 , 93 2 21 2 3 Of f i c e E q u i p m e n t 29 1 55 0 * 84 1 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 51 9 14 6 * 96 , 66 5 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 31 8 , 84 2 04 7 * 31 9 , 88 9 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 59 9 67 6 22 3 2 Ci r c u i t E q u i p m e n t 40 8 89 7 (1 1 1 03 4 ) * 29 7 86 3 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 57 7 57 7 24 2 1 Ae r i a l C a b l e 29 , 53 0 29 , 53 0 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 55 7 68 8 59 7 (1 ) * 60 6 , 28 4 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 82 1 82 1 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s 76 4 76 4 TO T A L P L A N T A C C O U N T S 89 3 , 59 6 48 , 59 7 (8 2 , 29 3 ) * 85 9 , 90 0 Re p r e s e n t s a d j u s t m e n t s t o t h e a l l o c a t i o n o f W a s h i n g t o n p l a n t t o I d a h o b a s e d u p o n j u r i s d i c t i o n a l p r o c e d u r e s . Re v 3 / 0 2 Pa g e 7 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 31 0 0 FO R T H E Y E A R E N D I N G D E C E M B E R 3 1 , 2 0 0 4 TO T A L C o m p a n y B a s i s An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s TO T A L Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 Ba l a n c e Be g i n n i n g of Y e a r 94 6 32 0 21 , 86 4 51 8 66 3 69 4 52 3 30 6 21 1 36 1 66 3 , 02 8 27 2 89 3 60 6 94 3 , 4 1 7 04 8 17 3 07 7 90 2 14 2 69 6 50 3 94 4 De p r e c i a t i o n Ra t e 16 . 00 / 1 2 . 12 . 16 . 00 / 1 2 . 00 / 2 . 15 . 00 / 6 . 20 . 00 / 5 . 00 & 6 . 25 . 00 / 1 2 . 00 / 2 7 . 11 . 19 / 2 7 . 59 / 5 . 20 . 4 0 / 4 . 00 & 6 . 00 / 4 . 00 & 6 . 42 . 06 / 8 . Cr e d i t s Du r i n g Ye a r 18 8 89 1 41 , 4 3 5 96 7 83 0 83 1 61 , 4 1 3 37 4 23 1 12 3 14 8 28 9 18 1 37 8 56 2 28 9 89 3 Pa g e 8 Re t i r e m e n t s an d Ad j u s t m e n t s 14 3 (3 4 19 6 ) (3 4 05 3 ) Ba l a n c e En d of Y e a r 13 5 , 35 4 92 5 52 5 90 2 76 3 , 4 9 0 11 3 13 6 21 7 , 1 9 2 72 4 , 4 4 1 64 7 12 4 72 9 09 1 70 6 12 7 17 4 25 8 28 0 70 4 69 6 75 9 78 4 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 FO R T H E Y E A R E N D I N G D E C E M B E R 3 1 , 2 0 0 4 ID A H O O p e r a t i o n s O n l y Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 69 8 12 . 70 76 8 21 1 6 Ot h e r W o r k E q u i p m e n t 32 1 12 . 64 0 96 1 21 2 1 Bu i l d i n g s 14 9 , 4 7 4 85 2 86 1 * * 16 8 , 18 7 21 2 2 Fu r n i t u r e 41 5 68 9 * * 10 4 21 2 3 Of f i c e E q u i p m e n t 24 5 00 / 6 . 2 5 1 7 * * 76 2 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 85 , 39 1 12 . 11 2 2 0 * * 61 1 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 30 5 01 6 27 . 64 6 * * 31 1 66 2 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 28 5 24 9 53 4 22 3 2 Ci r c u i t E q u i p m e n t 30 8 , 4 6 8 27 . (2 6 06 2 ) * * 28 2 , 4 0 6 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 81 8 89 7 24 2 1 Ae r i a l C a b l e 37 8 18 1 55 9 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 83 4 21 4 00 / 6 . 07 4 83 4 * * 89 7 12 2 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 82 1 82 1 24 4 1 Co n d u i t S y s t e m s TO T A L 75 9 54 4 82 6 14 0 2 4 * * 84 1 39 4 * P l e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re p r e s e n t s a d j u s t m e n t s t o t h e a l l o c a t i o n o f W a s h i n g t o n p l a n t t o I d a h o b a s e d u p o n j u r i s d i c t i o n a l s e p a r a t i o n p r o c e d u r e s . Re v 3 / 0 2 Pa g e 9 INVESTMENTS FOR THE YEAR ENDING DECEMBER 31 , 2004 account in which included. Minor amounts in Account 1406 may be grouped by classes. Description 1402-Partnership Investment 1402-RTB Class B Stock 1402-RTB Class C Stoc 1402-lliuminet 1406-Pag~./CPE/ Mobile CPE Date Acquired Various arious 1974 1981 Various Totals Book Cost of Investments Disposed of Th is year Book Cost of Investments Held at d of Year 98,454 874 000 046 909 151 672 050,909 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. Name of Comp 1180-Due From Customers 1190-0ther AlR-lnterexchange Carriers & Exchange Carrier Association 1190-0ther AIR-Western Elite Inc. Services Totals Rev 3/02 Amount at End of YearNotes Accountseceivable Receivable 212 195,888 097 621 387 721 Page 10 NOTES PAYABLE FOR THE YEAR ENDING DECEMBER 31 , 2004 Name of Creditor None Interest RateDate of Note Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100. Name of Creditor Trade Payables Due Date Totals Rev 3/02 Page 11 Face Amount Amount 149,543 149,543 LO N G - T E R M D E B T FO R T H E Y E A R E N D I N G D E C E M B E R 3 1 , 2 0 0 4 Ac c o u n t s 4 2 1 0 , 42 4 0 , 4 2 5 0 , 4 2 6 0 , 4 2 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e . Da t e Da t e Fa c t Pr e m i u m ! D i s c o u n t Cl a s s & S e r i e s Am o u n t Ou t s t a n d i n g Ye a r In t e r e s t f o r y e a r of O b l i at i o n Is s u e Ma t u r i t Au t h o r i z e d Ye a r - En d To t a l Am o r t i z e d Ra t e Am o u n t RU 8 2 0 3 0 Oc t . 1 9 6 9 Oc t . 2 0 0 4 00 0 RU S 2 0 4 0 Ju n . 1 9 7 1 Ju n . 2 0 0 6 53 , 00 0 2, 4 8 9 RU 8 2 0 5 0 Ju n . 1 9 7 1 Ju n . 2 0 0 6 12 9 00 0 24 4 21 9 RU S 1 2 0 6 0 Ma y 1 9 7 6 Ma y 2 0 1 1 57 8 , 00 0 14 9 51 4 21 3 RU S 1 2 0 7 0 Ma y 1 9 8 3 Ma y 2 0 1 8 12 9 00 0 57 9 , 4 3 9 11 , 96 5 RU 8 1 2 1 4 0 Oc t . 1 9 7 9 Oc t . 2 0 1 4 58 1 00 0 32 6 55 7 16 , 81 7 RU 8 1 2 1 5 0 Ap r . 1 9 9 5 Ap r . 2 0 1 4 94 7 00 0 64 8 , 21 2 89 1 RU S 1 2 1 5 1 Ap r . 1 9 9 5 Ap r . 2 0 1 4 27 0 00 0 18 4 37 4 91 % 21 7 RU 8 1 2 1 5 2 Ap r . 1 9 9 5 Ap r . 2 0 1 4 32 9 00 0 22 3 07 9 26 % 50 6 RT B 8 0 1 0 Oc t . 1 9 7 9 Oc t . 2 0 1 4 34 5 , 4 5 0 20 5 29 4 16 , 94 1 RT B 8 0 2 0 De c . 1 9 8 6 Ap r . 2 0 1 1 43 9 , 95 0 29 4 86 3 31 9 RT B 8 0 2 3 De c . 1 9 8 6 De c . 2 0 1 1 32 4 95 2 23 4 03 6 54 % 13 , 4 8 9 RU 8 1 2 1 5 3 Ap r . 1 9 9 5 Ap r . 2 0 1 4 45 1 , 4 7 8 31 3 32 1 86 % 15 , 86 4 RU 8 1 2 1 5 4 Ap r . 1 9 9 5 Ap r . 2 0 1 4 28 9 52 2 20 9 , 24 2 71 % 12 , 4 2 6 95 1 35 2 37 8 66 4 19 0 , 96 3 Re v 3 / 0 2 Pa g e 1 2 CAPITAL STOCK FOR THE YEAR ENDING DECEMBER 31 , 2004 designating separate series of any general class. Show totals separately for common and preferred. For each class of preferred stock, show the dividend rate and whether dividends are cumulative or noncumulative. Show details in a footnote of capital stock sold during the year. Include number of shares, consideration received , premium or discount, and expenses incurred. Class & Series of Stock Common Stock Number of Shares Authorized 000 Par Value per Share Outstanding per Balance SheetShares Amount 315 150 Rev 3/02 Page 13 INCOME & RETAINED EARNINGS STATEMENT FOR litem Total Company Idaho Only Total Operating Income (from page 15) Total Operating Expenses (from page 17) 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 Nonoperating 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 Rev 3/02 590 590 387 199 747 147 617,442 773)289) 392,492 739 147 147 119,143 16,436 722 11 ,371 630,731 119,404 331 38,689 770 903 510 161 685 144 005 (82 030)259) 143 578 148 067 952 952) 190 962 581 425 156 191 543 686 (91 579) 521 068 (622) 123 060 Page 14 OPERATING REVENUES FOR litem 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 Please identify the following revenues: 698 266 317 937 252 124 060 904 (100 863) 540,767 969 911 000 516 170 103 531 590,590 NECA USF $504 227 To what account were they booked? A/C 5082.13-lnterstate Switched Access Revenue-USF (Idaho only) State USF $43 161 To what account were they booked? A/C 5084.12-lntrastate Switched Access Revenue-USF (Idaho only) Rev 3/02 Page 15 00,466 084 955 522 737 520 236 325 1 ,402 306 914 747 147 OPERATING REVENUES FOR T Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 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 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE Rev 3/02 600 320 074 147 280,557 937 5,420 121 201 286,226 528 238 667 916 934 89,418 975 332 45,113 293 932 298 696 761 322 1 ,255,896 204 782 Page 16 FOR litem OPERATING REVENUES Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/PlanUEquipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-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 Rev 3/02 693 341 818 023 13,434 710 28,451 739 107 302 644 164 312 263 4,491 289 895 108 242 544 065 929 20,449 407 572 431 950 227 032 493,578 071 275 748 290 584 155,288 387 199 Page 17 159 502 484 521 50,254 53,259 39,283 85,404 587 602 743 280 199 899 617,442 CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , 2 0 0 4 ( u n l e s s ot h e r w i s e i n d i c a t e d ) FO R T H E Y E A R E N D I N G D E C E M B E R 3 1 , 2 0 0 4 Na m e o f C e n t r a l O f f i c e : Le o n , I d a h o ( sh a r e s U n i o n t o w n , W a s h i n g t o n s w i t c Pr e f i x ( e s ) : ( 2 0 8 ) 2 2 4 Ce n t r a l O f f i c e S w i t c h Ty p e : Mi t e l G X 5 0 0 0 Ch e c k a l l t h a t a p p l y : St a n d A l o n e . l L Ho s t Re m o t e Ch e c k o n e : Di g i t a l . l L An a l o g - Ch e c k o n e : El e c t r o n ic . l L El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : 1 0 , 00 0 Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . In s t a l l e d / E q u i p p e d : 76 4 Pu b l i c T e l e p h o n e L i n e s Co m p a n y O f f i c i a l L i n e s Co m p a n y T e s t L i n e s Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Re s i d e n c e Bu s i n e s s Mu l t i - Si n g l e L i n e Mu l t i - Si n g l e L i n e To t a l Li n 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 Pa r t y Pa r t y Pa r t y Re s i d e n c e Pa r t y Pa r t y Pa r t y Bu s i n e s s & B u s i n e s s Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . Di a l T o n e f r o m a n o t h e r C . Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d t o : Re v 3 / 0 2 Pa g e 1 8 CE N T R A L O F F I C E DA T A as o f D e c e m b e r 3 1 , 20 0 3 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : L e n o r e , I d a h o Pr e f i x ( e s ) : ( 2 0 8 ) 8 3 6 Ce n t r a l O f f i c e S w i t c h Ty p e : Mi t e l G X 5 0 0 0 Ch e c k a l l t h a t a p p l y : St a n d A l o n e - - X - Ho s t Re m o t e Ch e c k o n e : Di g i t a l - - X - An a l o g - Ch e c k o n e : El e c t r o n i c X El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : 10 , 00 0 Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . 33 9 In s t a l l e d / E q u i p p e d : 37 5 Pu b l i c T e l e p h o n e L i n e s Co m p a n y O f f i c i a l L i n e s Co m p a n y T e s t L i n e s Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Re s i d e n c e Bu s i n e s s Mu l t i - Si n g l e L i n e Mu l t i - Si n g l e L i n e To t a l Li n 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 Pa r t y Pa r t y Pa r t y Re s i d e n c e pa r t y Pa r t y Pa r t y Bu s i n e s s & B u s i n e s s Be g i n n i n g o f Y e a r 30 2 30 2 32 4 Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r 31 6 31 6 33 9 Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . Di a l T o n e f r o m a n o t h e r C . Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d t o : 11 8 Re v 3 / 0 2 Pa g e 1 8 A , . NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G (Y e a r ) FO R T H E Y E A R E N D I N G D E C E M B I Av e r a g e # of C u s t o m e r Lo c a l E x c h a n g e Li n e s i n U s e 1 L e o n , I d a h o 2 L e n o r e , I d a h o Re v 3 / 0 2 N/ A N/ A Lo c a l C a l l s Nu m b e r Av g . / (1 D D O s ) Li n e N/ A N/ A N/ A N/ A Pa g e 1 9 To l l C a l l s O r i a i n a t e d ( T o t a l o f a l l C a r r i e r s l Av g . / 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 N/ A N/ A N/ A N/ A N/ A N/ A N/ A N/ A ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2003 FOR THE YEAR ENDING DECEMBER 31 , 2004 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 Date of notification December, 2003 through December, 2004 Alternate method of notification None Rule IDAPA 31.41.01.403. Record of Complaints: Number received by Company 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 FOR THE YEAR ENDING D) ) ss County of Kittitas , the undersigned John P. Coonan , Treasurer and Gre~ory A. Maras, Secretary of the Inland Telephone Company 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. Treasurer ' John P, Coonan tl. ~--- Secretary Gregory A. Maras Subscribed and Sworn to Before Me this 3thday of ~K~ Notary Public LuAnn K. Stine 2005 My Commission expires O'b/ 0' Crl ",\\\lftlt/III ,\ ~ K. S 11/1~ h. ~ ..... 7iA~ ,:,...,; - ,"'-. .. ......:, ~ V' TAb .....".......,'..:\,' ,..., . , -. ~ -. -. - . My Comm. Expires. ,'" ~ ust 1, 2007 Z ~ . -........,. ,. ."....~'! VB\.. \~. ~~0; ~ ~ . . .' ,, ".., ,\..,,'," r-- ~ 1 , \ II r " ' \\\ 111/1111\\'.\\ Rev 3/02 gd klexcel/j nelson/an u rpts/telan n ua I rpt Page 21 FO R M I I N P U T M A S T E R RE V I S E D CO M P A N Y N A M E : I n l a n d T e l e p h o n e C o . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 20 0 4 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l SU M M A R Y Op e r a t i n g R e v e n u e s 50 X X Lo c a l - Bi l l e d (1 ) 10 9 55 0 10 9 , 55 0 10 9 , 55 0 EA S B i l l e d (1 ) EA S S e t t l e m e n t (1 ) 50 8 X A c c e s s - SL C ( E n d U s e r ) (2 ) 28 , 95 5 28 , 95 5 95 5 Sw i t c h e d ( T S + N T S ) (2 ) 60 0 , 97 3 52 2 73 7 52 2 73 7 78 , 23 6 78 , 23 6 Sp e c i a l (2 ) 52 0 52 0 52 0 51 X X T o l l - Me s s a g e (3 a ) Pr i v a t e L i n e (3 b ) Se t t l e m e n t (3 c ) 32 5 32 5 32 5 52 X X Mis c . - Bil l i n g & C o l l e c t i o n (4 ) 10 . 30 6 42 1 2, 4 2 1 72 7 72 7 Di r e c t o r y A d v e r t i s i n g 11 . Op e r a t i n g R e n t s 12 . Ot h e r M i s c . 13 . 1 , 4 3 2 43 2 1 , 4 3 2 53 0 X L e s s : Un c o l l e c t i b l e R e v . ( - ) 14 . 1, 4 2 5 55 1 55 1 32 3 55 1 87 4 To t a l R e v e n u e s 15 . 74 6 , 63 6 54 8 , 72 0 52 0 55 4 24 1 81 , 96 4 11 0 , 43 1 19 2 , 39 5 Op e r a t i n g E x p e n s e s 61 X X - 64 X X P l a n t S p e c i f i c O p e r . (5 a ) 16 . 17 9 , 4 1 7 24 5 40 3 64 8 36 , 70 9 91 3 14 7 11 4 76 9 65 X X P l a n t No n s p e c i f i c O p e r a t i o n s (5 a ) 17 . 03 7 14 3 14 , 24 0 92 5 22 2 18 , 65 0 79 7 65 6 X De p r e c i a t i o n & A m o r t i z a t i o n (5 a ) 18 . 93 , 72 4 29 , 96 7 21 7 30 , 18 4 20 , 4 4 5 50 2 59 3 63 , 54 0 66 X X C u s t o m e r O p e r a t i o n s (5 a ) 19 . 12 7 20 , 19 2 20 , 19 2 16 , 72 9 15 , 19 8 93 5 67 X X C o r p o r a t e O p e r a t i o n s (5 a ) 20 . 18 4 66 3 72 7 29 6 75 , 02 3 40 , 19 6 67 8 68 , 76 6 10 9 , 64 0 -- - - O t h e r O p e r a t i n g (5 a ) 21 . 03 6 03 6 03 6 To t a l E x p e n s e s (5 a ) 22 . 55 6 , 00 4 20 7 , 31 0 01 3 20 8 , 32 3 12 3 , 00 4 32 3 22 2 35 4 34 7 68 1 Op e r a t i n g T a x e s : (6 ) 72 4 0 Ge n e r a l T a x e s 23 . 15 , 74 5 20 3 23 8 69 1 73 6 10 , 50 7 72 3 0 St a t e / L o c a l I n c . T a x ( C u r r e n t ) 24 . 13 , 71 8 76 6 30 1 23 , 06 7 2, 4 3 4 14 6 77 0 34 9 72 2 0 Fe d e r a l I n c o m e T a x ( C u r r e n t ) 25 . 10 0 12 2 11 3 17 5 11 3 17 8 79 5 71 5 54 5 13 , 05 6 72 5 0 N e t De f e r r e d I n c o m e T a x e s 26 . 59 5 89 2 91 2 82 5 81 3 68 3 72 1 0 N e t In v e s t m e n t T a x C r e d i t s 27 . 22 6 -4 1 2 41 5 26 0 54 5 81 1 To t a l T a x e s 28 . 11 9 , 76 4 13 7 84 0 31 6 13 8 , 15 6 62 3 83 2 -4 , 93 7 18 , 39 2 Ne t O p e r a t i n g I n c o m e 29 . 70 , 86 8 20 3 , 57 0 19 2 20 7 76 2 28 , 41 7 49 1 10 6 , 98 6 13 6 , 89 4 IN L A N D T E L E P H O N E C O M P A N Y - Co n f i d e n t i a l 8/ 2 6 / 2 0 0 5 , - 1 , 7 " " Pa g e 1 FO R M I I N P U T M A S T E R RE V I S E D CO M P A N Y N A M E : I n l a n d T e l e p h o n e C o . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 20 0 4 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l SU M M A R Y ( c o n t i n u e d ) Av e r a g e R a t e B a s e 20 0 1 Te l e c o m . P l a n t i n S e r v i c e (5 b ) 64 6 , 4 7 1 89 0 , 40 0 10 4 89 6 , 50 4 56 1 87 9 13 , 94 1 17 4 14 7 74 9 , 96 7 20 0 5 Pl a n t A c q u i s i t i o n A d j u s t m e n t 31 0 0 Le s s : A c c u m u l a t e d D e p r . ( - ) (5 c ) 69 6 , 34 5 62 8 , 72 0 69 9 63 2 , 4 1 9 33 9 33 9 39 2 71 6 , 19 5 06 3 , 92 6 34 x x - 36 x x A c c u m u l a t e d Am o r t . ( - ) (5 ) 41 0 0 - 43 4 0 A c c u m . De f e r r e d T a x ( - ) 13 3 , 53 8 -4 5 , 13 7 30 5 45 , 4 4 2 29 , 14 4 71 8 58 , 23 4 88 , 09 6 12 2 0 Ma t e r i a l s a n d S u p p l i e s -- - - Eq u a l A c c e s s E q u i p m e n t (7 ) -- - - Ot h e r R a t e B a s e 74 4 27 0 31 4 15 , 43 0 15 , 4 3 0 To t a l A v e r a g e R a t e B a s e 84 1 , 33 2 22 5 , 81 3 14 4 22 7 95 7 19 3 , 39 6 83 1 41 5 , 14 8 61 3 , 37 5 IN L A N D T E L E P H O N E C O M P A N Y - Co n f i d e n t i a l 8/ 2 6 / 2 0 0 5 Pa g e 2 FO R M I I N P U T M A S T E R RE V I S E D CO M P A N Y N A M E : I n l a n d T e l e p h o n e C o . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 20 0 4 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l PL A N T I N S E R V I C E D E T A I L 21 X X Ge n e r a l S u p p o r t F a c i l i t i e s 44 3 96 2 14 9 , 37 0 02 4 15 0 , 39 4 25 9 33 9 19 6 , 97 0 29 3 56 8 22 X X Ce n t r a l O f f i c e E q u i p m e n t : CA T 1 - 0p e r a t o r S y s t e m s CA T 2 - Ta n d e m S w i t c h i n g ( A l l o c . CA T 2 - Ta n d e m S w i t c h i n g ( A s s i g n . CA T 3 - Lo c a l S w i t c h i n g 27 5 , 03 2 22 3 , 56 0 22 3 , 56 0 10 , 81 9 40 , 65 3 51 , 4 7 2 CA T 4 . 12 - Ex c h . T r u n k ( J o i n t U s e ) CA T 4 . 12 - Ex c h . T r u n k ( O e d . U s e ) 76 2 23 , 76 2 76 2 CA T 4 . 13 - Su b s c r . L i n e ( J o i n t U s e ) 27 9 , 25 1 69 , 64 3 69 , 64 3 69 , 64 3 67 9 13 9 , 28 6 20 9 , 60 8 CA T 4 . 13 - Su b s c r . L i n e ( O e d . U s e ) CA T 4 . 23 - IX T r u n k ( J o i n t U s e ) 10 . 87 9 03 8 09 8 25 , 13 6 11 , 09 6 64 7 74 3 CA T 4 . 23 - IX T r u n k C k t . ( O e d . U s e ) 11 . CA T 4 . 3 - Ho s U R e m o t e T r u n k C k t . 12 . Ot h e r C a E 13 . To t a l C O E 14 . 61 5 , 92 4 31 7 , 24 1 09 8 31 8 , 33 9 91 , 55 8 32 6 20 3 , 70 1 29 7 58 5 23 X X In f o r m a t i o n O r i g . fT e r m . E q u i p m e n t : CA T 1 - Re g u l a t e d C P E 15 . Ot h e r l O T 16 . To t a l l O T 17 . 24 X X Ca b l e & W i r e F a c i l i t i e s : CA T 1 . Su b s c r i b e r L i n e ( C o m m o n ) 18 . 35 4 14 6 33 7 , 71 3 33 7 71 3 33 7 71 3 29 5 67 5 , 42 5 01 6 , 4 3 3 CA T 1 . 1 , Su b s c r i b e r L i n e ( O e d . 19 . CA T 2 - Ex c h . T r u n k ( J o i n t U s e ) 20 . CA T 2 - Ex c h . T r u n k ( O e d . U s e ) 21 . 95 , 93 7 95 , 93 7 95 , 93 7 CA T 3 - IX T r u n k ( J o i n t U s e ) 22 . 13 1 73 8 47 3 97 1 88 , 4 4 4 33 8 95 6 29 4 CA T 3 - IX T r u n k ( O e d . U s e ) 23 . CA T 4 - Ho s U R e m o t e T r u n k 24 . Ot h e r C & W F 25 . To t a l C & W F 26 . 58 1 82 1 42 2 18 6 97 1 42 6 , 15 7 37 5 , 05 1 25 1 77 1 , 36 2 15 5 , 66 4 26 X X Ot h e r A s s e t s : Ca p i t a l L e a s e s 27 . Le a s e h o l d I m p r o v e m e n t s 28 . In t a n g i b l e s 29 . 76 4 60 3 61 4 01 1 11 4 15 0 To t a l O t h e r A s s e t s 30 . 76 4 60 3 61 4 01 1 11 4 15 0 To t a l T e l e c o m . P l a n t i n S e r v i c e (5 b ) 31 . 64 6 , 47 1 89 0 , 40 0 10 4 89 6 , 50 4 56 1 87 9 13 , 94 1 17 4 , 14 7 74 9 , 96 7 IN L A N D T E L E P H O N E C O M P A N Y - Co n f i d e n t i a l 8/ 2 6 / 2 0 0 5 Pa g e 3 FO R M I I N P U T M A S T E R RE V I S E D CO M P A N Y N A M E : I n l a n d T e l e p h o n e C o . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 20 0 4 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l De p r e c i a t i o n & A m o r t i z a t i o n Ac c u m u l a t e d D e p r e c i a t i o n D e t a i l 31 1 X Ge n e r a l S u p p o r t F a c i l i t i e s 23 0 , 22 2 45 8 53 1 98 9 -4 8 , 87 9 21 3 10 2 14 1 15 2 23 3 31 2 X Ce n t r a l O f f i c e S w i t c h i n g 28 8 , 64 5 23 4 62 5 23 4 62 5 11 , 35 5 -4 2 , 66 5 02 0 31 2 X Op e r a t o r S y s t e m s 31 2 X Ce n t r a l O f f i c e T r a n s m i s s i o n 29 9 , 36 3 82 , 26 9 96 4 83 , 23 3 70 , 90 3 04 3 14 3 , 18 4 21 6 13 0 31 3 X In f o r m a t i o n O r i g . /T e r m . E q u i p . 31 4 X Ca b l e & W i r e F a c i l i t i e s 87 8 11 5 23 4 36 8 20 4 23 6 , 57 2 20 8 , 20 2 13 6 -4 2 8 , 20 5 64 1 54 3 To t a l A c c u m u l a t e d D e p r e c i a t i o n (5 c ) 69 6 , 34 5 62 8 , 72 0 69 9 63 2 41 9 33 9 , 33 9 39 2 71 6 , 19 5 - 06 3 , 92 6 Ac c u m u l a t e d A m o r t i z a t i o n D e t a i l 34 1 0 Ca p i t a l L e a s e s 34 2 0 Le a s e h o l d I m p r o v e m e n t s 35 0 0 In t a n g i b l e s 10 . 36 0 0 Ac q u i s i t i o n A d j u s t m e n t 11 . To t a l A c c u m u l a t e d A m o r t i z a t i o n (5 c ) 12 . IN L A N D T E L E P H O N E C O M P A N Y - Co n f i d e n t i a l 8/ 2 6 / 2 0 0 5 Pa g e 4 FO R M I I N P U T M A S T E R RE V I S E D CO M P A N Y N A M E : I n l a n d T e l e p h o n e C o . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 20 0 4 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l OP E R A T I N G E X P E N S E D E T A I L 61 X X - 64 X X P l a n t S p e c i f i c O p e r a t i o n s 61 1 0 - 20 G e n e r a l S u p p o r t Fa c i l i t i e s 53 , 19 8 89 8 12 3 18 , 02 1 11 , 29 4 28 0 23 , 60 3 35 , 17 7 62 1 X Ce n t r a l O f f i c e S w i t c h i n g 38 , 86 9 02 0 20 , 08 9 77 8 14 7 12 , 85 5 18 , 78 0 62 2 0 Op e r a t o r S y s t e m s 62 3 X Ce n t r a l O f f i c e T r a n s m i s s i o n 14 3 25 4 27 6 80 5 01 6 86 7 63 X X In f o r m a t i o n O r i g . /T e r m . E q u i p . 64 X X Ca b l e & W i r e F a c i l i t i e s 75 , 20 7 20 , 07 3 18 9 20 , 26 2 83 2 44 0 36 , 67 3 54 , 94 5 To t a l P l a n t S p e c i f i c (5 a ) 17 9 , 41 7 64 , 24 5 40 3 64 , 64 8 70 9 91 3 14 7 11 4 76 9 65 X X Pl a n t N o n s p e c i f i c O p e r a t i o n s (8 ) 65 1 2 Pr o v i s i o n i n g 30 7 10 3 10 4 13 6 20 3 65 3 X Ne t w o r k O p e r a t i o n s 73 0 04 0 13 6 86 0 22 0 18 , 51 4 59 4 65 4 0 Ac c e s s P a i d t o L E C s (9 ) 10 . To t a l P l a n t N o n s p e c i f i c (5 a ) 11 . 42 , 03 7 14 , 14 3 24 0 92 5 22 2 18 , 65 0 79 7 65 6 X De p r e c i a t i o n & A m o r t i z a t i o n (8 ) 65 6 1 Ge n e r a l S u p p o r t F a c i l i t i e s 12 . 19 , 18 5 45 5 6, 4 9 9 07 3 10 1 51 2 68 6 65 6 1 Ce n t r a l O f f i c e S w i t c h i n g 13 . 57 4 34 4 34 4 25 9 97 1 23 0 65 6 1 Op e r a t o r S y s t e m s 14 . 65 6 1 Ce n t r a l O f f i c e T r a n s m i s s i o n 15 . 63 3 99 8 01 0 86 0 73 8 62 3 65 6 1 In f o r m a t i o n O r i g . /T e r m . E q u i p . 16 . 65 6 1 Ca b l e & W i r e F a c i l i t i e s 17 . 33 2 17 , 17 0 16 1 17 , 33 1 15 , 25 3 37 6 37 2 00 1 65 6 3 Ca p i t a l L e a s e s 18 . 65 6 3 Le a s e h o l d I m p r o v e m e n t s 19 . 65 6 4 In t a n g i b l e s 20 . 65 6 5 Ac q u i s i t i o n A d j u s t m e n t 21 . To t a l D e p r e c i a t i o n & A m o r t i z a t i o n (5 a ) 22 . 93 , 72 4 29 , 96 7 21 7 30 , 18 4 20 , 44 5 50 2 59 3 63 , 54 0 IN L A N D T E L E P H O N E C O M P A N Y - C o n f i d e n t i a l 8/ 2 6 / 2 0 0 5 Pa g e 5 FO R M I I N P U T MA S T E R RE V I S E D CO M P A N Y N A M E : I n l a n d T e l e p h o n e C o . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 20 0 4 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l OP E R A T I N G E X P E N S E ( c o n t i n u e d ) 66 X X Cu s t o m e r O p e r a t i o n s 66 1 X Ma r k e t i n g 48 4 30 7 30 7 16 9 17 7 66 2 X Op e r a t o r S e r v i c e s 66 2 X Di r e c t o r y P u b l i s h i n g - Al p h a . 82 1 68 3 68 3 30 5 83 3 13 8 66 2 X Di r e c t o r y P u b l i s h i n g - Cl a s s i f i e d 66 2 X Di r e c t o r y P u b l i s h i n g - Fo r e i g n 66 2 3 Se r v i c e O r d e r P r o c . En d U s e r 29 5 38 4 38 4 65 7 25 4 91 1 66 2 3 Pa y m e n t & C o l l e c t i o n - En d U s e r 95 8 61 7 61 7 82 9 51 2 34 1 66 2 3 Bi l l i n g I n q u i r y - En d U s e r 80 3 65 4 65 4 14 9 14 9 66 2 3 Se r v i c e O r d e r P r o c . CX R 66 2 3 Pa y m e n t & C o l l e c t i o n - CX R 10 . 66 2 3 Bi l l i n g I n q u i r y - CX R 11 . 66 2 3 Co i n A d m i n i s t r a t i o n 12 . 66 2 3 Re v . A c c t g . To l l T i c k e t P r o c . 13 . 32 2 71 3 71 3 60 9 60 9 66 2 3 Re v . A c c t g . Lo c a l M e s s . P r o c . 14 . 66 2 3 Re v . A c c t g . Ot h e r B i l l & C o i l . 15 . 89 0 81 0 81 0 29 6 78 4 08 0 66 2 3 Re v . A c c t g . SL C B i l l i n g 16 . 67 8 67 8 67 8 66 2 3 Re v . A c c t g . CX R B & C (9 ) 17 . 37 2 18 6 18 6 18 6 18 6 66 2 3 B & C A m t s P a i d t o L E C s (9 ) 18 . 66 2 3 Ot h e r C u s t o m e r S e r v i c e 19 . 10 , 50 4 16 0 16 0 52 9 81 5 34 4 To t a l C u s t o m e r O p e r a t i o n s (5 a ) 20 . 52 , 12 7 20 , 19 2 20 , 19 2 16 , 72 9 15 , 19 8 31 , 93 5 67 X X C o r p o r a t e O p e r a t i o n s : 67 1 X Ex e c u t i v e & P l a n n i n g 21 . 36 , 39 1 13 , 32 4 13 , 38 6 43 4 14 2 42 9 00 5 67 2 X Ge n e r a l & A d m i n i s t r a t i v e 22 . 14 8 , 27 2 40 3 23 4 63 7 76 2 53 6 54 , 33 7 63 5 67 2 8 EA S Se t t l e m e n t E x p e n s e 23 . To t a l C o r p o r a t e O p e r a t i o n s (5 a ) 24 . 18 4 66 3 72 7 29 6 02 3 40 , 19 6 67 8 68 , 76 6 10 9 , 64 0 .. . - Ot h e r O p e r a t i n g E x p e n s e s : -- - - Eq u a l A c c e s s P r o v i s i o n (1 0 ) 25 . -- - - Un i v e r s a l S e r v i c e F u n d (1 1 ) 26 . 03 6 03 6 03 6 -- - - Li f e l i n e C o n n e c t i o n A s s i s t a n c e (1 2 ) 27 . To t a l O t h e r (5 a ) 28 . 03 6 03 6 03 6 To t a l O p e r a t i n g E x p e n s e s (5 a ) 29 . 55 6 , 00 4 20 7 31 0 01 3 20 8 , 32 3 12 3 , 00 4 32 3 22 2 , 35 4 34 7 , 68 1 IN L A N D T E L E P H O N E C O M P A N Y . Co n f i d e n t i a l 8/ 2 6 / 2 0 0 5 Pa g e 6 FO R M I I N P U T M A S T E R RE V I S E D CO M P A N Y N A M E : I n l a n d T e l e p h o n e C o . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 2 0 0 4 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l OP E R A T I N G T A X E S D E T A I L 72 4 0 Ge n e r a l T a x e s 72 4 0 Pr o p e r t y 72 4 0 Gr o s s R e c e i p t s 72 4 0 PU C F e e 56 3 46 8 46 8 72 4 0 Fr a n c h i s e F e e s 72 4 0 Ot h e r 18 2 10 8 14 3 22 3 73 6 10 , 03 9 To t a l G e n e r a l T a x e s 15 , 74 5 20 3 23 8 69 1 73 6 10 , 50 7 72 X X In c o m e T a x e s ( C a l c u l a t e d ) Ne t I n c o m e B e f o r e S I T & F I T (1 3 ) 17 4 88 7 33 6 , 20 7 4, 4 7 2 34 0 , 68 0 73 1 2, 4 0 3 11 8 , 65 9 16 5 , 79 3 Le s s F i x e d C h a r g e s ( - ) 95 8 73 8 82 3 85 4 19 6 16 , 08 5 13 5 Su b t o t a l ( l i n e s 7 - (1 4 ) 20 7 84 5 34 4 94 5 55 7 34 9 50 3 87 7 20 7 10 2 57 4 14 1 65 8 Oth e r S I T B a s e A d d / O e d . ( + - ) (1 5 ) 10 . SI T T a x a b l e I n c . ( l i n e s 9 + - 10 ) 11 . 20 7 84 5 34 4 , 94 5 55 7 34 9 , 50 3 36 , 87 7 20 7 10 2 , 57 4 14 1 65 8 72 3 0 S I T - Cu r r e n t ( a t 8 % ) (1 6 ) 12 . 13 , 71 8 76 6 30 1 23 , 06 7 2, 4 3 4 14 6 77 0 34 9 Ot h e r F I T B a s e A d d / O e d . ( + - ) (1 7 ) 13 . FI T T a x a b l e I n c . ( l i n e s 9 - 12 + - 13 ) 14 . 19 4 12 7 32 2 , 17 9 32 6 , 43 6 34 , 44 3 06 1 50 5 Gr o s s F I T 15 . 99 , 98 6 11 2 76 3 11 2 76 3 05 5 72 1 77 7 72 1 0 P C l a i m e d I T C ( - ) 16 . 22 6 -4 1 2 41 5 26 0 54 5 81 1 Su r t a x E l i m i n a t i o n ( - ) 17 . 72 2 0 F I T - Cu r r e n t ( l i n e s 1 5 - 16 - 17 ) (1 8 ) 18 . 98 , 76 0 11 3 , 17 5 11 2 , 34 8 11 , 79 5 71 5 54 5 13 , 58 8 IN L A N D T E L E P H O N E C O M P A N Y - Co n f i d e n t i a l 8/ 2 6 / 2 0 0 5 Pa g e 7