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HomeMy WebLinkAbout2005Annual report.pdf, L . ~ " / E D ,. ,, ;; ?r~(~ ~I O. i"\! \J' t! L~ AN7VU~L .. ' "., '.. . . . . '.. .. ' . ,. r ; IE~ 'oi.,ilsSIO:, prL - INLAND TELEPHONE COMPANY NAME PO BOX 171, ROSLYN, WA 98941 ADDRESS TO TH E IDAHO PUBLIC UTiliTIES COMMISSION FOR THE YEAR ENDED DECEMBER 31, 2005 INLAND TELEPHONE COMPANY Corporate Offices 103 S, 2nd St, O, Box 171 Roslyn, WA 98941 INLANDTELEPHONE Telephone: (509) 649-2211 Fax: (509) 649-3300 . ' ;.. . Co . ." ;: l.: l ,.,' V " ,., VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED April 17 2006 Randy Lobb, Administrator Utilities Division Idaho Public Utilities Commission P. O. Box 83720 Boise, Idaho 83720-0074 Dear Mr. Lobb: Enclosed please find a hard copy of the Annual Report of Inland Telephone Company ("Company ) to the Idaho Public Utilities Commission for the year ended December 31 2005 and a completed annual report on disk. Also included are the Company s Idaho separation factors for 2005 and the 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, a~~c1 /~eTrv ,(Maras Secretary GAM :glm Enclosures cc: Dean Koch - Johnson, Stone & Pagano, P. K: \ WORD\GRET A \IPUC\RPTOS. DOC ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31 , 2005 COMPANY INFORMATION Exact name of utility: Inland Telephone Company 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 , Washington & 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 any Western Elite Incorporated Services, P.O. Box 687 Roslyn , Washington 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 Long 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 Name Douglas W. Weis Nathan R. WeisVice President Controller James K. Brooks John P. Coonan Gregory 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 2005 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 Gregory 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 Gregory A. Maras Rev 3/02 Title Wages and Bonuses Paid 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 2005 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 31.2005 Balance Balance IncreaseBeginningat EnaTitle or Account or Year or Year (DeCreaSe) Current Assets 1120 Cash and Equivalents 1130 Cash 438,123 482 221 098 1140 Special Cash Deposits 1150 Working Cash Advances 800 800 1160 Temporary Investments 042 932 504 (985,428) 1180 Telecommunications Accts. Receivable 212 974 (11 238) 1181 Accts. Rec. Allow. -Telecommunications (10 000)(10 000) 1190 Other Accounts Receivable 293 509 391,471 097 962 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 230 158 242 286 128 1280 Prepayments 37,486 155 503 118 017 1290 Prepaid Rents 1300 Prepaid Taxes 131 883 (131 883) 1310 Prepaid Insurance 865 (19 865) 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 1402 Investment in Nonaffiliated Companies 902 298 563 501 (338 797) 1406 Nonregulated Investments 151 672 157 530 858 1407 Unamortized Debt Issuance Expense 375 (375) 1408 Sinking Funds 1410 Other Noncurrent Assets 124 557 5,433 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 899 751 839,415 939 664 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 274 958 924 826 649 868 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill Depreciation and Amortization Accounts 3100 Accumulated Depreciated 759,784 738,481 978 697 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 841 312 248 011 406 699 Rev 3/02 Page 4 BALANCE SHEET Liabilities & Stockholders' Equity FOR THE YEAR ENDING DECEMBER 31, 2005 Balance Balance Increase Beginnmg at End Title of Account of Year of Year (Decrease) Current Liabilities 4010 Accounts Payable 149 543 538 323 388 780 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 786 555 (231 ) 4050 Current Maturities - Long -Term Debt 272 800 283 000 200 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 119 089 256 793 137 704 4100 Net Current Defer. Oper. Income Taxes 87,425 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 582 622 572 586 (10 036) 4130 Other Current Liabilities 320 522 798) Long-Term Debt 4210 Funded Debt 105 864 822 528 (283 336) 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 11,428 982 (3,446) 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 581 814 353 247 (228 567) 4350 Net Noncur. Defer. Nonoper. Income Taxes 177 274 (177 274) 4360 Other Deferred Credits 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 150 150 4520 Additional Paid-In Capital 175 175 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings 702,447 194 725 492 278 TOTAL LlAB. & OTHER CREDITS 841 312 248 011 319 274 Rev 3/02 Page 5 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 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 4 99 4 21 1 2 Mo t o r V e h i c l e s 24 8 90 4 95 , 86 1 34 4 76 5 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 37 0 29 5 21 1 6 Ot h e r W o r k E q u i p m e n t 57 4 36 6 72 7 58 1 09 3 21 2 1 Bu i l d i n g s 1 , 76 8 , 4 8 5 89 0 84 5 , 37 5 21 2 2 Fu r n i t u r e 12 7 65 0 03 6 13 0 68 6 21 2 3 Of f i c e E q u i p m e n t 21 7 56 0 25 9 22 7 81 9 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 72 4 88 4 77 4 75 0 65 8 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 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 83 7 50 0 58 , 4 3 2 89 5 93 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 84 2 84 2 22 3 2 Ci r c u i t E q u i p m e n t 68 8 51 5 21 7 , 4 8 3 12 1 95 5 78 4 04 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 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 31 4 78 7 56 3 78 7 87 8 57 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 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 89 9 75 1 06 1 61 9 12 1 95 5 83 9 , 4 1 5 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 5 Ba l a n c e Be g i n n i n g 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 P l a n t i n S e r v i c e 21 1 1 La n d 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 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 20 , 10 5 76 8 13 , 11 9 39 9 , 06 6 93 2 84 1 96 , 66 5 31 9 88 9 67 6 29 7 , 86 3 57 7 29 , 53 0 60 6 , 28 4 82 1 76 4 TO T A L P L A N T A C C O U N T S 85 9 , 90 0 Ad d i t i o n s Du r i n g Y e a r 75 8 56 8 32 6 Pl a n t Re t i r e d or S o l d 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 of Wa 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 Tr a n s f e r s an d Ad j u s t m e n t s 26 , 07 7 57 1 57 2 84 1 * 25 0 * 28 1 * 34 , 73 0 * 82 * 36 * 1 * Ba l a n c e En d of Ye a r 20 , 18 7 80 4 11 9 43 5 90 1 19 , 50 3 47 , 4 1 3 10 0 , 50 6 32 0 , 13 9 69 5 29 8 , 14 4 57 7 29 , 53 0 67 0 , 85 3 82 1 76 4 96 9 , 95 6 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 5 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of 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 13 5 35 4 16 , 00 / 1 2 . 14 4 53 5 27 9 88 9 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 12 . 89 0 23 , 81 5 21 1 6 Ot h e r W o r k E q u i p m e n t 52 5 90 2 16 . 00 / 1 2 . 82 7 57 7 72 9 21 2 1 Bu i l d i n g s 76 3 , 4 9 0 00 / 2 . 69 , 4 2 7 83 2 91 7 21 2 2 Fu r n i t u r e 11 3 13 6 15 . 00 / 6 , 54 9 13 0 68 5 21 2 3 Of f i c e E q u i p m e n t 21 7 19 2 20 . 00 / 5 . 00 & 6 . 24 8 22 2 , 4 4 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 72 4 , 4 4 1 25 . 00 / 1 2 . 39 3 74 9 83 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 64 7 12 4 00 / 2 7 , 22 8 62 7 87 5 75 1 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 72 9 11 3 36 , 84 2 22 3 2 Ci r c u i t E q u i p m e n t 09 1 70 6 11 . 19 / 2 7 . 15 0 74 8 (1 2 1 95 5 ) 12 0 , 4 9 9 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 12 7 59 / 5 . 20 6 24 2 1 Ae r i a l C a b l e 17 4 25 8 20 . 4 0 / 4 . 18 1 17 5 , 4 3 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 28 0 , 70 4 00 & 6 . 00 / 4 . 00 & 6 . 40 1 03 5 68 1 73 9 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 6 42 . 06 / 8 . 69 6 24 4 1 Co n d u i t S y s t e m s TO T A L 75 9 78 4 10 0 65 2 12 1 95 5 73 8 , 4 8 1 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 Pa g e 8 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 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 5 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 76 8 12 . 36 * * 80 4 21 1 6 Ot h e r W o r k E q u i p m e n t 96 1 12 . 64 0 60 1 21 2 1 Bu i l d i n g s 16 8 18 7 94 2 05 7 * * 18 4 18 6 21 2 2 Fu r n i t u r e 10 4 39 9 * * 19 , 50 3 21 2 3 Of f i c e E q u i p m e n t 43 , 76 2 00 / 6 . 08 9 * * 85 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 96 , 61 1 12 . 64 3 * * 10 0 25 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 31 1 66 2 27 . 53 3 * * 31 4 19 5 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 53 4 16 1 69 5 22 3 2 Ci r c u i t E q u i p m e n t 28 2 , 4 0 6 27 . 78 6 * * 28 5 19 2 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 89 7 97 6 24 2 1 Ae r i a l C a b l e 55 9 18 1 74 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 89 7 12 2 00 / 6 . 01 7 (3 2 0 ) * * 96 0 81 9 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 84 1 39 4 85 9 25 , 38 4 * * 93 6 , 63 7 * 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 , 2005 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 Stock 1402-lliuminet 1402-Verizon 1406-ging Equip./CPE/ Mobile CPE Date AcQu ired Various Various Book Cost of Investments Disposed of This year Book Cost of Investments Held at End of Year 98,454 874 000 360 752 1974 1981 2005 Various 157,530 Totals 717 970 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 Company 1180-Due From Customers 1190-0ther AlR-lnterexchange Carriers & Exchange Carrier Association 1190-0ther AIR-Western Elite Inc. Services Amount at End of YearNotes Accountseceivable Receivable 82,974 658,830 732 641 Totals 7,474,445 Rev 3/02 Page 1 NOTES PAYABLE FOR THE YEAR ENDING DECEMBER 31 2005 Name of Creditor None Interest RateDate of Note Due Date Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100, Name of Creditor Trade Payables Totals Rev 3/02 Page 11 Face Amount Amount 528 766 528 766 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 5 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 q a t i o n Is s u e Ma t u r i t y 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 S 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 39 2 RU S 2 0 5 0 Ju n . 1 9 7 1 Ju n . 2 0 0 6 12 9 00 0 74 2 11 0 RU S 1 2 0 6 0 Ma y 1 9 7 6 Ma y 2 0 1 1 57 8 00 0 12 6 81 0 76 3 RU S 1 2 0 7 0 Ma y 1 9 8 3 Ma y 2 0 1 8 12 9 00 0 54 1 10 0 11 , 20 5 RU S 1 2 1 4 0 Oc t . 1 9 7 9 Oc t . 2 0 1 4 58 1 00 0 30 6 01 2 81 4 RU S 1 2 1 5 0 Ap r . 1 9 9 5 Ap r . 2 0 1 4 94 7 00 0 59 6 , 4 7 3 44 , 4 1 4 RU S 1 2 1 5 1 Ap r . 1 9 9 5 Ap r . 2 0 1 4 27 0 00 0 16 9 59 9 91 % 23 0 RU S 1 2 1 5 2 Ap r . 1 9 9 5 Ap r . 2 0 1 4 32 9 00 0 20 4 65 8 26 % 38 8 RT B S 0 1 0 Oc t . 1 9 7 9 Oc t . 2 0 1 4 34 5 , 4 5 0 19 1 27 8 86 3 RT B S 0 2 0 De c . 1 9 8 6 Ap r . 2 0 1 1 43 9 95 0 27 5 10 0 79 8 RT B S 0 2 3 De c , 1 9 8 6 De c . 2 0 1 1 32 4 95 2 21 4 05 6 54 % 12 , 4 1 2 RU S 1 2 1 5 3 Ap r . 1 9 9 5 Ap r . 2 0 1 4 45 1 47 8 28 5 80 0 86 % 55 9 RU S 1 2 1 5 4 Ap r . 1 9 9 5 Ap r . 2 0 1 4 28 9 52 2 19 1 50 8 71 % 11 , 4 4 1 95 1 35 2 10 5 52 8 17 7 02 6 Re v 3 / 0 2 Pa g e 1 2 CAPITAL STOCK FOR THE YEAR ENDING DECEMBER 31, 2005 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 Stoc Common Stock Rev 3/02 Number of Shares Authorized 10,000 Par Value per Share Page 13 Outstanding per Balance Sheet Shares Amount 315 150 FOR litem INCOME & RETAINED EARNINGS STATEMENT 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 3/02 344 224 954 791 621 215 719 285 (3,447) 598 677 248 688 688 117 835 176 (154 393)(37 585) 588 360 527 747 082 583 928 59,459 144 000 (83,451)354) 338 139 656 (123 357) (123 357) 177 026 *708 375 * 868 *146 178 269 *917 (5,573) 740 926 740 926 Page 14 345) 203) 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: 727 074 101 834 93,677 785 251,499 009 152 040 379 522 315,942 705 649 300 560 021 782 275 523 ' 013 068 270 101 520 087 859) 344 224 621 215 NECA USF $400 682 To what account were they booked? AlC 5082.13-lnterstate Switched Access Revenue-USF (Idaho only) State USF $43 161 To what account were they booked? AlC 5084.12-lntrastate Switched Access Revenue-USF (Idaho only) Rev 3/02 Page 15 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 86,433 794 297 105 559 560 140 741 270 165 * 98,485 883 482 868 1,496 593 Page 16 877 278 388 322 951 711 872 806 603 103 310 240 118 FOR litem OPERATING REVENUES Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Rev 3/02 897 544 732 142 694 819 928 240 168,583 633 129 843 26,041 886 100 651 553 1,415,700 788 378 397 316 415,482 415 275 626 902 121 874 126,764 43,251 292 950 627 016 954 791 Page 17 152 660 150 148 395 219 106 003 608 21,434 313 535 275 112 719 285 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 5 ( 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 : 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 h ) 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 Al o n e l Ho s t Re m o t e Ch e c k o n e : Di g i t a l l An a l o g - Ch e c k o n e : El e c t r o n i c 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 NA R . 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 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 : Re v 3 / 0 2 Pa g e 1 8 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 5 ( 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 Al o n e L Ho s t Re m o t e Ch e c k o n e : Di g i t a l L An a l o g - Ch e c k o n e : El e c t r o n i c 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 : 10 , 00 0 Ac c e s s L i n e s i n U s e Cu s t b 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 . 34 2 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 NA R . 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 31 6 31 6 33 9 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 32 0 32 0 34 2 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 : 21 0 Re v 3 / 0 2 Pa g e 1 8 A Lo c a l E x c h a n g 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 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G 2 0 0 5 Av e r a g e # of C u s t o m e r Li n e s i n U s e N/ A N/ A Lo c a l C a l l s Nu m b e r Av g . / (1 0 0 0 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 q i n a t e d ( T o t a l o f a l l C a r r i e r s ) Av g . / 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 , 2005 CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA31.41,01.105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes Included in directory Yes Date of notification December, 2004 through December, 2005 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 Gregory A. Maras , Secretary and James K. Brooks, Controller 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. Subscribed and Sworn to Before Me this --11 ~ day of ~,2006 q;.,J ",'""111"" \ N otary ublic -\:),?:~... ~J)';" ,:-" LuAnn K. Stine g ~. ' ~OTAJ;';:. . ,. ,g : My Comm. ~xPires: ~ ~.. AuguS11 2007 : ~ ~~' . .0 "A.:.O~ ~ ~ . UB 'v ."~A ~ ' " ,'V'.::::- ,I 1'oo :.1\"~I/" WASP \\'\Iflll/IIIII\\\ My Commission expires Rev 3/02 gdklexcel/j nelson/an u I rpts/tela n n ual rpt Page 21 FO R M I I N P U T M A S T E R 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 5 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 L o c a l - Bi l l e d (1 ) 11 1 61 9 11 1 61 9 11 1 61 9 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 ) 00 9 29 , 00 9 00 9 Sw i t c h e d ( T S + N T S ) (2 ) 46 2 08 2 37 9 , 52 2 37 9 , 52 2 82 , 56 0 56 0 Sp e c i a l (2 ) 70 5 70 5 70 5 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 ) 52 X X M i s c , - Bil l i n g & C o l l e c t i o n (4 ) 10 , 52 0 24 1 24 1 27 9 27 9 Di r e c t o r y A d v e r t i s i n g 11 , 27 5 27 5 27 5 Op e r a t i n g R e n t s 12 , Ot h e r M i s c , 13 , 09 8 09 8 09 8 53 0 X L e s s : Un c o l l e c t i b l e R e v , ( - ) 14 , 44 5 87 9 87 9 43 4 1, 4 3 4 To t a l R e v e n u e s 15 , 61 6 , 91 1 40 5 , 89 3 70 5 41 0 , 59 8 86 , 32 1 11 9 , 99 2 20 6 31 3 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 , 22 7 99 5 56 5 48 8 05 3 98 8 14 2 10 0 81 2 14 9 94 2 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 , 58 1 06 6 11 8 18 4 67 3 27 8 24 , 4 4 6 36 , 39 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 , 90 , 91 0 00 4 20 2 20 6 22 0 47 9 00 5 70 4 66 X X C u s t o m e r O p e r a t i o n s (5 a ) 19 , 89 4 67 3 67 3 88 7 33 3 26 , 22 1 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 , 27 3 58 0 17 4 48 2 65 6 77 2 12 8 11 3 02 4 17 4 92 4 -- - - O t h e r O p e r a t i n g (5 a ) 21 , 88 6 88 6 88 6 To t a l E x p e n s e s (5 a ) 22 , 69 4 , 84 6 24 3 , 36 8 29 0 24 4 , 65 8 15 3 , 54 0 02 8 29 3 , 62 0 45 0 , 18 8 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 , 67 9 09 2 11 8 08 2 41 7 56 1 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 , 56 4 10 , 84 7 22 7 07 4 37 9 19 6 06 3 63 8 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 , 06 8 72 8 72 8 68 9 97 1 66 0 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 , 58 5 44 0 52 2 03 8 19 1 16 , 83 4 25 , 06 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 , To t a l T a x e s 28 , 59 9 56 , 22 7 17 1 56 , 39 8 02 4 29 6 48 0 54 , 80 0 Ne t O p e r a t i n g I n c o m e 29 , 79 , 53 3 10 6 , 29 8 24 4 10 9 , 54 2 36 , 19 5 73 2 15 1 14 8 18 9 , 07 5 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 4/ 1 4 / 2 0 0 6 Pa g e 1 FO R M I I N P U T M A S T E R 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 5 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 ) 76 2 17 0 91 4 24 6 99 0 92 0 , 23 6 59 0 , 75 4 06 5 23 7 11 5 84 1 93 4 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 ) 79 9 , 63 4 65 6 38 1 68 2 66 0 06 3 36 2 67 2 59 2 76 8 30 7 13 9 57 1 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 Ac c u m , D e f e r r e d T a x ( - ) 13 1 , 4 9 9 -4 2 11 4 28 9 40 3 30 , 07 6 71 6 58 , 30 4 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 63 5 76 3 81 3 17 , 82 2 82 2 To t a l A v e r a g e R a t e B a s e 85 8 , 67 2 22 5 , 51 4 06 9 22 7 , 58 3 19 8 , 00 6 75 7 42 8 , 32 6 63 1 08 9 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 4/ 1 4 / 2 0 0 6 Pa g e 2 FO R M I I N P U T M A S T E R 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 5 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 48 4 32 8 16 0 , 30 7 05 0 16 1 35 7 10 3 , 58 5 46 6 21 6 , 92 0 32 2 97 1 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 U 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 26 8 66 1 21 8 , 36 7 21 8 36 7 60 0 39 , 69 4 29 4 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 ) 25 , 38 6 25 , 38 6 38 6 CA T 4 , 13 - Su b s c r . L i n e ( J o i n t U s e ) 26 9 69 5 26 0 26 0 26 0 65 6 13 4 51 9 20 2 43 5 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 , 76 9 20 , 79 5 95 0 74 5 59 9 42 5 02 4 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 t / 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 , 59 6 , 51 1 30 6 , 42 2 95 0 30 7 37 2 87 , 45 9 08 1 19 9 , 59 9 28 9 , 13 9 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 , 44 8 57 5 36 1 26 3 36 1 26 3 36 1 , 26 3 52 4 72 2 52 5 08 7 31 2 CA T 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 93 7 CA T 3 - IX T r u n k ( J o i n t U s e ) 22 , 13 2 05 5 84 , 67 7 98 0 65 7 37 , 42 8 97 0 43 , 39 8 CA T 3 - IX T r u n k ( O e d , U s e ) 23 , CA T 4 - Ho s t / 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 , 67 6 , 56 7 44 5 , 94 0 98 0 44 9 , 92 0 39 8 , 69 1 49 4 81 8 , 46 2 22 6 , 64 7 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 57 7 58 7 01 9 13 4 17 7 To t a l O t h e r A s s e t s 30 , 76 4 57 7 58 7 01 9 13 4 17 7 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 , 76 2 17 0 91 4 24 6 99 0 92 0 , 23 6 59 0 75 4 06 5 23 7 , 11 5 84 1 , 93 4 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 4/ 1 4 / 2 0 0 6 Pa g e 3 FO R M I I N P U T M A S T E R 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 5 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 26 3 05 0 -8 7 , 06 6 57 0 63 6 56 , 25 9 33 9 11 7 81 6 17 5 , 4 1 4 31 2 X Ce n t r a l O f f i c e S w i t c h i n g 29 2 28 5 23 7 56 8 23 7 56 8 11 , 53 2 -4 3 , 18 5 71 7 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 30 1 51 9 80 , 98 3 87 4 85 7 70 , 68 6 91 4 14 7 06 2 21 9 66 2 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 94 2 78 0 25 0 , 76 4 23 8 25 3 00 2 22 4 , 19 5 33 9 -4 6 0 , 24 4 68 9 77 8 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 ) 79 9 , 63 4 65 6 , 38 1 68 2 66 0 06 3 36 2 67 2 59 2 76 8 , 30 7 13 9 , 57 1 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 - C o n f i d e n t i a l 4/ 1 4 / 2 0 0 6 Pa g e 4 FO R M I I N P U T M A S T E R 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 5 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 F a c i l i t i e s 63 , 4 0 8 20 , 98 7 13 8 12 5 13 , 56 1 32 3 28 , 39 9 28 3 62 1 X Ce n t r a l O f f i c e S w i t c h i n g 87 1 19 , 45 4 19 , 51 4 55 3 13 2 12 , 67 2 35 7 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 80 6 09 2 11 4 02 4 62 0 69 2 63 X X In f o r m a t i o n O r i g J 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 11 2 91 0 30 , 03 2 26 8 30 , 30 0 26 , 85 0 63 9 55 , 12 1 61 0 To t a l P l a n t S p e c i f i c (5 a ) 22 7 , 99 5 77 , 56 5 48 8 78 , 05 3 47 , 98 8 14 2 10 0 , 81 2 14 9 , 94 2 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 54 4 18 0 18 1 11 6 24 4 36 3 65 3 X Ne t w o r k O p e r a t i o n s 03 7 17 , 88 6 11 7 18 , 00 3 55 7 27 5 20 2 36 , 03 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 , 54 , 58 1 18 , 06 6 11 8 18 , 18 4 67 3 27 8 44 6 36 , 39 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 , 58 1 81 9 85 7 76 0 87 4 72 4 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 , 89 3 97 7 97 7 19 3 72 3 91 6 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 , 97 6 53 1 53 7 46 3 96 3 43 9 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 , 66 , 4 6 0 67 7 15 8 83 5 15 , 80 4 37 6 32 , 44 5 62 5 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 , 91 0 00 4 20 2 28 , 20 6 22 0 47 9 42 , 00 5 70 4 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 4/ 1 4 / 2 0 0 6 Pa g e 5 FO R M I I N P U T M A S T E R 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 5 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 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 , 15 3 52 1 52 1 23 3 39 9 63 2 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 7, 4 7 7 14 9 14 9 49 4 83 4 32 8 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 54 1 26 3 26 3 16 1 11 7 27 8 66 2 3 Bi l l i n g I n q u i r y - En d U s e r 39 8 00 5 00 5 39 3 39 3 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 , 92 1 49 7 49 7 42 4 42 4 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 , 99 7 65 9 65 9 99 9 33 9 33 8 66 2 3 Re v , A c c t g , SL C B i l l i n g 16 , 47 4 47 4 47 4 66 2 3 Re v , A c c t g , CX R B & C (9 ) 17 , 70 4 35 2 35 2 35 2 35 2 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 , 13 0 69 0 69 0 79 6 64 4 5, 4 4 0 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 , 89 4 16 , 67 3 16 , 67 3 88 7 33 3 26 , 22 1 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 , 21 9 24 , 47 1 12 6 59 7 15 , 85 0 29 4 29 , 47 8 45 , 62 2 67 2 X Ge n e r a l & A d m i n i s t r a t i v e 22 , 20 3 , 36 1 73 , 70 3 35 6 05 9 92 2 83 4 83 , 54 6 12 9 30 2 67 2 8 EA S S e 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 , 27 3 , 58 0 98 , 17 4 48 2 98 , 65 6 60 , 77 2 12 8 11 3 , 02 4 17 4 92 4 n- - 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 , 88 6 88 6 88 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 , 88 6 88 6 88 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 , 69 4 84 6 1 24 3 36 8 29 0 24 4 , 65 8 15 3 , 54 0 02 8 29 3 , 62 0 45 0 , 18 8 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 4/ 1 4 / 2 0 0 6 Pa g e 6 FO R M I I N P U T M A S T E R 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 5 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 58 4 49 5 49 5 72 4 0 Fr a n c h i s e F e e s 72 4 0 Ot h e r 09 5 00 3 02 9 58 7 41 7 06 6 To t a l G e n e r a l T a x e s 12 , 67 9 09 2 11 8 08 2 41 7 56 1 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 ) 61 4 15 8 , 4 3 3 38 9 16 1 82 2 30 1 09 0 17 9 , 04 5 25 2 , 4 3 6 Le s s F i x e d C h a r g e s ( - ) 46 9 92 2 97 3 95 4 12 0 42 2 49 6 Su b t o t a l ( l i n e s 7 - (1 4 ) 14 5 16 4 35 5 3, 4 4 0 16 7 79 5 34 7 97 0 16 7 62 3 23 6 94 0 Ot h e r S I T B a s e A d d / D 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 . 69 , 14 5 16 4 , 35 5 44 0 16 7 79 5 66 , 34 7 97 0 16 7 62 3 23 6 94 0 72 3 0 S I T - Cu r r e n t ( a t 8 % ) (1 6 ) 12 , 56 4 84 7 22 7 07 4 37 9 19 6 06 3 63 8 Ot h e r F I T B a s e A d d / D 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 , 58 1 15 3 50 8 15 6 , 72 1 61 , 96 8 77 4 74 2 Gr o s s F I T 15 , 06 8 72 8 72 8 68 9 97 1 66 0 72 1 0 P C l a i m e d I T C ( - ) 16 , 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 , 06 8 53 , 72 8 72 8 68 9 97 1 66 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 4/ 1 4 / 2 0 0 6 Pa g e 7