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HomeMy WebLinkAbout2008Annual Report.pdfINLAND TELEPHONE COMPANY Corporate Offces 103 S. 2nd St. P.O. Box 171 Roslyn, WA 98941 INLAD TELEPHONE Telephone: (509) 649-2211 Fax: (509) 649-3300 o,,~ 2~ \!¡S~n ,~ :rt i~~q ~h" í c"';'\ \'(\ ,"" f,j'\\~:; ~:,;, -.-; '." (:. C~; OJ::,;: \,. VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED -rL---r April 15, 2009 Randy Lobb, Administrator Utilities Division Idaho Public Utilties 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 Utilties Commission for the year ended December 31, 2008. Also included are the Company's Idaho separation factors for 2008 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 L. Morgan or myself at (509) 649-2211. Very truly yours, Jt/-,~_ l.~ ~:~¿aras Secretary GAM:glm Enclosures cc Dean Koch-Johnson, Stone & Pagano F:\WORD\GRETA\IPUC\RPT07.DOC ANNUAL REPORT OF SMALL TELEPHONE COMPANIES T0-- l . 4- THE IDAHO PUBLIC UTILITIES COMMISSION J.L.. , FOR THE YEAR ENDING DECEMBER 31, 2008 E COMPANY INFORMATION 2009 APR 17 PM 2: 45 IDAh¡O F;: Exact name of utility: Inland Telephone Company l ¡TI! IT!r:(~ rnri';:\! iC:n¡() Address of principal offce: 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 offcer having custody of the general corporate books of account: James K. Brooks, Controller Address of offce where corporate books are kept and phone number: same as principal offce Organized under the laws of the State of: Washington Date of organization: 07/02/63 Form of organization (proprietorship, association, corporation): Corporation If a Subchapter S Corporation, please specify: N/A Name and address of controllng company, if any Western Elite Incorporated Services, P.O. Box 687, Roslyn, Washington 98941 Names of affliated companies. Give address and description of business: (1) Inland Cellular Telephone Co., P.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., P.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 offce address of each general offcer 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 Secretary Treasurer Name Douglas W. Weis Nathan R. Weis Gregory A. Maras James K. Brooks Address P.O. Box 171, Roslyn, Washington 98941 P.O. Box 171, Roslyn, Washington 98941 P.O. Box 171, Roslyn, Washington 98941 P.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 31,2008 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: 1 Name and Address Douglas W. Weis Nathan R. Weis Gregory A. Maras James K. Brooks Term Expired or Current Term Wil Expire Meetings Attended This year Fees Paid During Year Continuous Continuous Continuous Continuous 1 1 1 1 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 Gregory A. Maras James K. Brooks Rev 3/02 Title Wages and Bonuses Paid President Vice President Secretary Treasurer Page 2 NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices, for the year ending December 31,2008 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 Asets and Other Debits FOR THE YEAR ENDING DECEMBER 31.2008 Baiance Baiance increaseBeginningatEnaor Tiue Of Account Of Year of Year (DereaSe)Current Assets 1120 Cash and Equivalents 1130 Cash 414,463 488,099 73,636 1140 Speial Cash Deposits 1150 Working Cash Advances 1,800 2,300 500 1160 Temporary Investments 345,505 48,121 (297,384) 1180 Telecommunications Accts. Receivable 105,070 117,793 12,723 1181 Acts. Rec. Allow. -Telecommunications (10,000)~10,OOO)0 1190 Other Accounts Receivable 8,934,274 (1)11, 58,410 3,024,136 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 280,724 384,586 103,862 1280 Prepayments 3,851 13,060 9,209 1290 Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affliated Companies 1402 Investment in Nonaffiliated Companies 1,212,268 626,540 (1~~:¡~~~ 1406 Nonregulated Investments 108,873 79,197 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Ofuer Noncurrent Asseæ 108,808 114,463 5,655 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Propert, Plant and Equipment 2001 Telecommunications Plants in Service 19,256,301 20,859,425 1,603,124 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 415,237 53,831 (361,406) 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goowil Depreciation and Amortization Accounts 3100 Accumulated Depreciated 11,291,057 12,481,335 1,190,278 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 188 30,963 30,775 3600 Accumulated Amortization - Other TOTAL ASSETS 19,885,929 (1)22,223,527 2,337,598 (1) These revisions reflect the transfer of cellular assets to Western Elite Incorporated Services, Inland Telephone Company's parent company. These revisions were made after last year's IPUC Report was submitted.Rev 3/02 Page 4 BALANCE SHEET Liabilties & Stockholders' Equity FOR THE YEAR ENDING DECEMBER 31, 2008 Balance Balance Increase Beginning at End or Title of Account of Year of Year (Decrease) Current Liabilties 4010 Accounts Payable 194,281 199,537 5,256 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 5,270 5,826 556 4050 Current Maturities - Long -Term Debt 413,500 574,362 160,862 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 125,791 135,573 9,782 4100 Net Current Defer. Oper. Income Taxes 55,373 191,959 136,586 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 846,262 968,228 121,966 4130 Other Current Liabilities 40,884 36,217 (4,667) Long-Term Debt 4210 Funded Debt 2,784,187 3,039,483 255,296 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affliated Companies 147,816 1,633,284 1,485,468 4270 Other Long-Term Debt Other Liabilties & Deferred Credits 4310 Other Long-Term Liabilties 4320 Unamort. Oper. Invest. Tax Credits - Net 1,836 710 (1,126) 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 919,093 864,185 (54,908) 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 93,150 93,150 0 4520 Additional Paid-In Capital 7,175 7,175 0 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings 14,251,311 (1)14,473,838 222,527 TOTAL LIAB. & OTHER CREDITS 19,885,929 (1)22,223,527 2,337,598 (1) These revisions reflect the transfer of cellular assets to Western Elite Incorporated Services, Inland Telephone Company's parent company. These revisions were made after last year's IPUC Report was submitted. Rev 3/02 PageS 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 Ye a r Du r i n g y e a r or So l d Ad j u s t m e n t s of Ye a r An a l y s i s 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 12 6 , 8 4 4 30 3 , 3 2 8 43 0 , 1 7 2 21 1 2 Mo t o r V e h i c l e s 1, 5 4 4 , 5 5 7 96 , 0 0 6 40 , 3 1 2 1, 6 0 0 , 2 5 1 21 1 3 Ai r c r a f t 0 0 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 0 0 21 1 5 Ga r a g e W o r k E q u i p m e n t 25 , 2 9 5 25 , 2 9 5 21 1 6 Ot h e r W o r k E q u i p m e n t 63 1 , 1 4 7 71 , 0 2 7 4, 0 0 0 69 8 , 1 7 4 21 2 1 Bu i l d i n g s 2, 0 3 5 , 6 9 9 19 , 8 3 3 2, 0 5 5 , 5 3 2 21 2 2 Fu r n i t u r e 17 1 , 2 0 8 3, 9 1 8 17 5 , 1 2 6 21 2 3 Of i c e E q u i p m e n t 24 4 , 9 8 4 30 , 7 8 4 27 5 , 7 6 8 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 79 9 , 0 1 5 18 , 4 8 6 81 7 , 5 0 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 0 0 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 2, 4 5 0 , 9 8 0 44 , 5 3 5 2, 4 9 5 , 5 1 5 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 0 0 22 2 0 Op e r a t o r S y s t e m s 0 0 22 3 1 Ra d i o S y s t e m s 36 , 8 4 2 36 , 8 4 2 22 3 2 Ci r c u i t E q u i p m e n t 2, 0 3 1 , 5 9 2 57 2 , 4 6 6 2, 6 0 4 , 0 5 8 23 1 1 St a t i o n A p p a r a t u s 0 0 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 0 0 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 0 0 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 0 0 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 0 0 24 1 1 Po l e s 24 , 8 0 7 14 , 4 2 9 67 3 38 , 5 6 3 24 2 1 Ae r i a l C a b l e 19 8 , 2 2 9 19 8 , 2 2 9 24 2 2 Un d e r g r o u n d C a b l e 0 0 24 2 3 Bu r i e d C a b l e 8, 9 1 9 , 7 9 8 34 6 , 9 8 9 9, 2 6 6 , 7 8 7 24 2 4 Su b m a r i n e C a b l e 0 0 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 0 0 24 3 1 Ae r i a l W i r e 6, 6 9 5 6, 6 9 5 24 4 1 Co n d u i t S y s t e m s 0 0 26 8 1 Ca p i t a l L e a s e s 0 0 26 8 2 Le a s e h o l d I m p r o v e m e n t s 0 3, 3 9 1 3, 3 9 1 26 9 0 In t a n g i b l e s 8, 6 0 8 12 2 , 9 1 8 13 1 , 5 2 6 TO T A L P L A N T A C C O U N T S 19 , 2 5 6 , 3 0 0 1, 6 4 8 , 1 1 0 44 , 9 8 5 0 20 , 8 5 9 , 4 2 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 8 Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Ye a r Du r i n g Y e a r or So l d Ad j u s t m e n t s of Ye a r An a l y s i s 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 23 , 4 7 2 (4 4 ) * 23 , 4 2 8 21 1 2 Mo t o r V e h i c l e s 0 0 21 1 3 Ai r c r a f t 0 0 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 0 0 21 1 5 Ga r a g e W o r k E q u i p m e n t 1, 7 9 7 15 * 1, 8 1 2 21 1 6 Ot h e r W o r k E q u i p m e n t 13 , 1 1 9 13 , 1 1 9 21 2 1 Bu i l d i n g s 44 5 , 0 2 8 5, 0 7 7 * 45 0 , 1 0 5 21 2 2 Fu r n i t u r e 24 , 4 3 3 66 0 * 25 , 0 9 3 21 2 3 Of f c e E q u i p m e n t 49 , 5 0 9 5, 8 5 8 * 55 , 3 6 7 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 10 6 , 7 6 9 1, 5 8 3 * 10 8 , 3 5 2 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 0 0 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 41 4 , 3 0 2 6, 6 4 2 (5 , 2 2 5 ) * 41 5 , 7 1 9 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 0 0 22 2 0 Op e r a t o r S y s t e m s 0 0 22 3 1 Ra d i o S y s t e m s 1, 6 5 8 92 * 1, 7 5 0 22 3 2 Ci r c u i t E q u i p m e n t 27 1 , 7 2 1 19 , 6 6 6 * 29 1 , 3 8 7 23 1 1 St a t i o n A p p a r a t u s 0 0 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 0 0 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 0 0 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 0 0 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 0 0 24 1 1 Po l e s 1, 5 7 7 1, 5 7 7 24 2 1 Ae r i a l C a b l e 29 , 5 3 0 29 , 5 3 0 24 2 2 Un d e r g r o u n d C a b l e 0 0 24 2 3 Bu r i e d C a b l e 1, 8 6 7 , 3 8 4 38 , 8 0 9 1, 9 0 6 , 1 9 3 24 2 4 Su b m a r i n e C a b l e 0 0 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 0 0 24 3 1 Ae r i a l W i r e 4, 8 2 1 4, 8 2 1 24 4 1 Co n d u i t S y s t e m s 0 0 26 8 1 Ca p i t a l L e a s e s 0 0 26 8 2 Le a s e h o l d I m p r o v e m e n t s 0 0 26 9 0 In t a n g i b l e s 4, 7 6 4 4, 7 6 4 TO T A L P L A N T A C C O U N T S 3, 2 5 9 , 8 8 4 45 , 4 5 1 0 27 , 6 8 2 * 3, 3 3 3 , 0 1 7 *R e 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 . 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Q)~ ro::~ 'S;~ .£: ~ Q)o CO Q) a:.. ~ æ 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 8 ID A H O O p e r a t i o n s O n l y 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 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 M o t o r V e h i c l e s 21 1 3 A i r c r a f t 21 1 4 S p e c i a l P u r p o s e V e h i c l e s 21 1 5 G a r a g e W o r k E q u i p m e n t 21 1 6 O t h e r W o r k E q u i p m e n t 21 2 1 B u i l d i n g s 21 2 2 F u r n i t u r e 21 2 3 O f f i c e E q u i p m e n t 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 22 1 1 A n 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 D i 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 - M e c h a n i c a l S w i t c h i n g 22 2 0 O p e r a t o r S y s t e m s 22 3 1 R a d i o S y s t e m s 22 3 2 C i r c u i t E q u i p m e n t 23 1 1 S t a t i o n A p p a r a t u s 23 2 1 C u s t o m e r P r e m i s e s W i r i n g 23 4 1 L a 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 P u 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 O t h e r T e r m i n a l E q u i p m e n t 24 1 1 P o l e s 24 2 1 A e r i a l C a b l e 24 2 2 U n d e r g r o u n d C a b l e 24 2 3 B u r i e d C a b l e 24 2 4 S u b m a r i n e C a b l e 24 2 6 I n 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 A e r i a l W i r e 24 4 1 C o n d u i t S y s t e m s o Õ Õ 1, 7 9 7 13 21 2 , 2 4 9 22 , 6 6 6 47 , 7 0 1 10 6 , 7 6 9 o 11 3 , 9 7 9 o Õ 1, 6 5 10 1 , 4 6 6 o Õ Õ Õ Õ 1, 1 3 3 9, 1 0 3 -0 1, 1 0 1 , 8 5 0 o Õ 4, 8 2 1 -0 TO T A L 1, 7 3 8 , 3 1 1 5. 0 0 79 4. 0 0 1, 1 8 1 4. 0 0 / 6 . 0 0 74 , 4 9 0 87 1 * * 8. 0 0 14 1 , 6 1 5 24 , 0 9 4 * * De p r e c i a t i o n Ra t e * 12 . 5 0 12 . 5 0 2. 5 06: 5. 0 0 / 6 . 0 0 12 . 5 0 9. 0 0 11 . 1 9 Cr e d i t s Du r i n g Ye a r 3, 1 4 7 35 , 3 9 6 27 , 3 2 2 Re t i r e m e n t s an d Ad j u s t m e n t s 15 * * 12 , 5 6 5 * * 1, 8 4 6 * * 1, 4 9 0 * * 1, 3 4 7 * * 2 2 1 9 * * l.-92 * * 3, 6 4 9 * * * 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 . ** R e 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 P a g e 9 Ba l a n c e En d of Ye a r o Õ Õ 1, 8 1 2 13 , 1 1 9 22 ' 24 , 5 1 2 49 , 1 9 1 10 8 , 1 1 6 o 15 1 , 5 9 4 o Õ 1; 7 5 Õ 13 2 , o Õ Õ Õ Õ 1, 2 1 2 10 , 2 8 4 -- 1, 1 7 7 ; 1 1 1 o Õ 4, 8 2 1 -0 1, 9 0 4 , 0 2 0 INVESTMENTS FOR THE YEAR ENDING DECÈMBER 31, 2008 account in which included. Minor amounts in Account 1406 may be grouped by classes. Description 1402-llluminet 1402-Verizon 1402-RTB Class C Stock 1406-Paging Eguip.lCPEI Mobile CPE Various Rural Telephone Finance Cooperative Capital Certificates Date Acquired 1981 2005 1974 Totals Book Cost of Investments . Disposed of This year RECEIVABLES Book Cost of Investments Held at End of Year 594,495 28,984 o 79,197 3,061 o 705,737 Itemize amounts show in Accunts 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 Totals Rev 3/02 Amount at End of Year Notes Accounts Receivable Receivable 117,793 Page 10 2,802,156 9,156,254 12,076,203 NOTES PAYABLE FOR THE YEAR ENDING DECEMBER 31,2008 Name of Creditor None Totals Date of Note Interest Rate ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100.00 Name of Creditor Trade Payables Due Date Totals Rev 3/02 Page 11 Face Amount Amount 199,537 199,537 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 8 Ac c o u n t s 4 2 1 0 , 4 2 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 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 l D i s c o u n t Cl a s s & S e r i e s of of 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 a 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 - E n d To t a l Am o r t i z e d Ra t e Am o u n t RU S 1 2 0 6 0 Ma y 1 9 7 6 Ma y 2 0 1 1 57 8 , 0 0 0 55 , 9 1 6 1 2% 1, 3 5 9 RU S 1 2 0 7 0 Ma y 1 9 8 3 Ma y 2 0 1 8 1, 1 2 9 , 0 0 0 42 1 , 3 7 8 1 2% 8, 8 3 5 RU S 1 2 1 4 0 Oc t . 1 9 7 9 Oc t . 2 0 1 4 58 1 , 0 0 0 23 7 , 8 8 3 1 5% 12 , 4 9 0 RU S 1 2 1 5 0 Ap r . 1 9 9 5 Ap r . 2 0 1 4 94 7 , 0 0 0 41 7 , 7 1 6 1 7% 31 , 4 7 3 RU S 1 2 1 5 1 Ap r . 19 9 5 Ap r . 2 0 1 4 27 0 , 0 0 0 11 8 , 6 4 0 1 6. 9 1 % 8, 8 2 6 RU S 1 2 1 5 2 Ap r . 1 9 9 5 Ap r . 2 0 1 4 32 9 , 0 0 0 14 1 , 9 6 2 1 6. 2 6 % 9, 5 8 2 RT B S 0 1 0 Oc t . 1 9 7 9 Oc t . 2 0 1 4 34 5 , 4 5 0 14 1 , 9 4 8 1 8% 12 , 0 6 6 RT S S 0 2 0 De c . 19 8 6 Ap r . 2 0 1 1 43 9 , 9 5 0 20 5 , 4 1 6 1 8% 17 , 4 3 7 RT B S 0 2 3 De c . 19 8 6 De c . 20 1 1 32 4 , 9 5 2 14 7 , 0 4 1 1 5. 5 4 % 8, 7 9 9 RU S 1 2 1 5 3 Ap r . 1 9 9 5 Ap r . 2 0 1 4 45 1 , 4 7 8 19 4 , 7 4 8 1 4. 8 6 % 10 , 2 3 8 RU S 1 2 1 5 4 Ap r . 1 9 9 5 Ap r . 2 0 1 4 28 9 , 5 2 2 13 1 , 8 2 0 1 5. 7 1 % 8, 1 2 8 RT B S 0 3 1 De c . 19 8 6 De c . 20 1 1 72 9 , 6 1 1 54 1 , 0 0 0 1 5. 4 9 % 32 , 0 8 1 RT B S 0 3 2 De c . 19 8 6 Ap r . 2 0 1 4 1, 1 5 8 , 9 1 1 82 9 , 8 3 0 1 5. 1 0 % 15 , 9 9 6 7, 5 7 3 , 8 7 4 3, 5 8 5 , 2 9 8 17 7 , 3 1 0 Re v 3 / 0 2 Pa g e 1 2 CAPITAL STOCK FOR THE YEAR ENDING DECEMBER 31, 2008 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 Rev 3/02 Number of Shares Authorized 10,000 Par Value per Share Page 13 Outstanding per Balance Sheet Shares Amount 10 9,315 93,150 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 GainslLosses from the Disposition of Certain Propert 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 6,820,506 5,297,291 953,539 833,508 (1,126)0 207,219 10,982 2,146 2,146 148,559 10,242 148,669 29,175 505,467 52,545 2,151 262 19,133 2,334 3,191 524 6,496 415 (59,567)(4,339) (28,596)(804) (4,430) (4,430) o o 177,310 29,141 238 177,548 39 29,180 o o (206,926) 609,108 8,993 46,495 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 Biling & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: 236,369 27,697 3,035,152 723,358 997,343 7,561 1,601,960 80,174 7,702 504 11,280 1,308 12,135 0 699,757 106 106,088 27,497 160 92,756 7,799 6,820,506 NECA USF $544,315 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 95,045 o 11,396 3,600 20 3,966 1,090 953,539 OPERATING REVENUES FORT 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 Artorks Expense 6123 Offce Equipment Expense 6124 General Purpose Computers Expense 6210 Central Offce Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Offce Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information Origination/T ermination 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 3/02 128,766 14,818 59,951 6,899 0 0 451,249 51,930 2,207 254 30,249 3,481 171,530 19,740 419,149 64,759 182,509 28,198 (82) 74,211 (17) 15,293 553,571 114,080 12 2 2,073,322 319,437 Page 16 OPERATING REVENUES FOR litem Total Company Idaho Only 538 102 33,606 6,366 9,400 1,781 34,936 6,618 116,724 22,112 37,310 7,068 27,872 5,280 1,199,649 166,273 30,775 30,729 Plant Nonspecific Operations Expense 6510 Other Propert/PlantlEquipment Expenses 6511 Propert 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 1,490,810 28,030 19,925 444,109 492,064 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 236,914 491,968 64,799 80,062 36,095 331,257 1,241,095 TOTAL OPERATING EXPENSES 5,297,291 Rev 3/02 Page 17 246,329 3,420 2,431 54,181 60,032 39,650 82,336 10,845 13,399 6,041 55,439 207,710 833,508 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 8 ( 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 o n , I d a h o ( s h 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 : Me t a s w i t c h 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 Ho s t _ Re m o t e _ Ch e c k on 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 - M e 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 , 0 0 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 - P u b . ) 29 In s t a l l e d / E q u i p p e d : 7 6 4 Pu b l i c T e l e p h o n e L i n e s o Co m p a n y O f f c i a l L i n e s 1 Co m p a n y T e s t L i n e s 3 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 1- P a r t y 1- P a r t Pa r t Re s i d e n c e NA R . 1- P a r t y 1- P a 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 0 28 0 28 0 1 0 0 1 29 Ne w C o n n e c t s 0 3 0 3 0 0 0 0 0 3 Di s c o n n e c t s 0 2 0 2 0 1 0 0 1 3 En d o f Ye a r 0 29 0 29 0 0 0 0 0 29 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 . O . : Di a l T o n e f r o m a n o t h e r C . O . : o o 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 : 1 Cu s t o m C a l l 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 : 9 5 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 8 ( 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 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 c e S w i t c h Ty p e : Me t a s w i t c h 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 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 on e : El e c t r o n i c l El e c t r o - M e 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 , 0 0 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 - P u b . ) 30 7 In s t a l l e d / E q u i p p e d : 3 7 5 Pu b l i c T e l e p h o n e L i n e s o Co m p a n y O f f i c i a l L i n e s 11 Co m p a n y T e s t L i n e s 4 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 1- P a r t y 1- P a r t y Pa r t Re s i d e n c e N. A . R . 1- P a r t y 1- P a r t y Pa r t y Bu s i n e s s & B u s i n e s s Be g i n n i n g o f Y e a r 0 30 3 0 30 3 0 15 7 0 22 32 5 Ne w C o n n e c t s 0 34 0 34 0 0 2 0 2 36 Di s c o n n e c t s 0 42 0 42 0 0 1 0 1 43 En d o f Ye a r 0 29 5 0 29 5 0 15 8 0 23 31 8 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 . O . : Di a l T o n e f r o m a n o t h e r C . O . : o o 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 : 21 Cu s t o m C a l l 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 : 25 8 18 Re v 3 / 0 2 Pa g e 1 8 A Lo c a l E x c h a n g e Le o n , I d a h o 2 L e n o r e , I d a h o 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 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 8 Av e r a g e # of Cu s t o m e r Li n e s i n U s e NI A NI A Lo c a l C a l l s Nu m b e r A v g . / (1 0 0 0 s ) L i n e NI A N I A NI A NI A Pa g e 1 9 To l l C a l l s O r i g 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 I n t e r s t a t e T o t a l L i n e NI A NI A NI A NI A NI A NI A NI A NI A ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2008 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 No x Included in directory Yes x No Date of notification December, 2007 through December, 2008 Alternate method of notification None Rule IDAPA 31.41.01.403.02 Record of Complaints: Number received by Company 1 Category of complaints (if known): Deposit Disputes o Charges on Bill o Denial/T ermination 1 Quality or Availabilty of Service o Carrier Selectionl Assignment o Miscellaneous o Rev 3/02 Page 20 CERTIFICATE FOR THE YEAR ENDING DECEMBER 31,2008 ) ) ssCounty of Kittitas ) WE, the undersigned Gregory A. Maras, Secretary and James K. Brooks, TreasurerlController 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 /6 day of Op;,,2009 Rev 3/02 """11"',,,~\\\ " SEt II" ~..~~ .:... ..I.b '~~ ~ . ~"8 ..'~ .,~ t)' ....0 'rt~ .;'c ~~~.... .. ~~..: ..~::- . ,-1:-. ..Š t tI.-i.to'~. §- ... ..., Il... · -.~,-~. . ~~.... ._.ç.~. ~~'-7, . r-~.. s~ ~....... "-~ ~"i¡r OF W~~~,'\11/,"~i1\\\\\ My Commission expires 810' ( l I gdklexcel/jnelson/anulrpts/telannualrpt Page 21 ., .. Pr o p r i e t a t y a n d C o n f i d e n t a l FO R M I IN 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 8 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 Id 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 u n t a n d No t e Li n e Su b j e c t To 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 - B i l e d (1 ) 1. 10 6 , 4 1 0 10 6 , 4 4 1 10 6 , 4 4 1 -E A S B i l l e d (1 ) 2, 0 0 0 -E A S S e t t e m e n t (1 ) 3. 0 0 0 50 8 X A c c s s - S L C ( E n d U s e r ) (2 ) 4. 27 , 6 9 7 27 , 6 9 7 27 , 6 9 7 0 -S w i t c h e d ( T S + N T S ) (2 ) 5. 80 3 , 5 3 3 72 3 , 3 5 9 72 3 , 3 5 9 80 , 1 7 4 80 , 1 7 4 -S p e c i a l (2 ) 6, 7,5 6 1 7, 5 6 1 7,5 6 1 0 51 X X T o l l - M e s s a g e (3 a ) 7. 0 0 0 -P r i v a t e L I n e (3 b ) 8. 0 0 0 -S e t t e m e n t (3 c ) 9. 50 4 0 50 50 4 52 X X M i s c . - B i l l i n g & C o l l e c t i o n (4 ) 10 . 3, 9 6 5 1, 2 5 5 1, 2 5 5 2, 7 1 0 2, 7 1 0 -D i r e c t o r y A d v e r t i s i n g 11 . 1, 3 0 8 0 1, 3 0 8 1, 3 0 8 -O p e r a t i n g R e n t s 12 . 0 0 0 -O t h e r M i s c . 13 . 3, 6 2 0 0 3, 6 2 0 3, 6 2 0 53 0 X L e s s : U n c o l l e c t i b l e R e v . ( - ) 14 . -1 , 0 9 0 0 0 0 -1 , 0 9 0 -1 , 0 9 0 To t a l R e v e n u e s 15 , 95 3 , 5 3 9 75 2 , 3 1 1 7, 5 6 1 75 9 , 8 7 2 83 , 3 8 8 0 0 11 0 , 2 7 9 19 3 , 6 6 7 Op e r a t i n g E x p e n s e s 61 X X - 6 4 X X P l a n t S p e c i f i c O p e r . (5 a ) 16 . 32 8 , 9 4 3 11 7 , 8 5 4 33 , 4 8 7 15 1 , 3 4 1 56 , 5 4 5 73 3 0 12 0 , 3 2 4 17 7 , 6 0 2 65 X X P l a n t N o n s p e c i f i c O p e r a t i o n s (5 a ) 17 . 47 , 2 9 7 15 , 2 9 0 3, 4 3 0 18 , 7 2 0 9, 2 0 6 12 0 0 19 , 2 5 1 28 , 5 7 7 65 6 X 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 ) 18 . 20 4 , 1 1 7 76 , 0 6 9 31 , 8 5 7 10 7 , 9 2 6 30 , 3 2 1 39 6 0 65 , 4 7 4 96 , 1 9 1 66 X X C u s t o m e r O p e r a t i o n s (5 a ) 19 . 53 , 7 4 8 22 , 4 6 4 0 22 , 4 6 4 17 , 0 9 1 57 0 14 , 1 3 6 31 , 2 8 4 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 . 24 0 , 4 5 5 94 , 3 4 9 20 , 7 3 7 11 5 , 0 8 6 44 , 6 7 6 46 7 0 80 , 2 2 6 12 5 , 3 6 9 -- - - O t h e r O p e r a t i n g (5 a ) 21 . 5, 0 6 9 5, 0 6 9 0 5, 0 6 9 0 0 0 0 0 To t a l E x p e n s e s (5 a ) 22 . 87 9 , 6 2 9 33 1 , 0 9 5 89 , 5 1 1 42 0 , 6 0 6 15 7 , 8 3 9 1, 7 7 3 0 29 9 , 4 1 1 45 9 , 0 2 3 Op e r a t i n g T a x e s : (6 ) 72 4 0 G e n e r a l T a x e s 23 . 8, 8 0 5 2, 7 5 3 59 5 3, 3 4 8 2, 0 9 9 21 0 3, 3 3 7 5, 4 5 7 72 3 0 S t a t e / L o c l l n c . T a x ( C u r r e n t ) 24 , 2, 6 2 1 27 , 0 2 6 -5 , 5 9 5 21 , 4 3 0 -5 , 3 5 1 -1 2 2 0 -1 3 , 3 3 6 -1 8 , 8 0 9 72 2 0 F e d e r a l In c o m e T a x ( C u r r e n t ) 25 . 10 6 , 7 5 1 13 3 , 8 5 9 0 13 3 , 8 5 9 -2 6 , 5 0 3 -6 0 6 0 0 -2 7 , 1 0 9 72 5 0 N e t D e f e r r e d I n c o m e T a x e s 26 . 0 0 0 0 0 0 0 0 72 1 0 N e t I n v e s t m e n t T a x C r e d i t s 27 , 0 0 0 0 0 0 0 0 To t a l T a x e s 28 . 11 8 , 1 7 7 16 3 , 6 3 8 -5 , 0 0 0 15 8 , 6 3 8 -2 9 , 7 5 5 -7 0 7 0 -9 , 9 9 9 -4 0 , 4 6 1 Ne t O p e r a t i n g I n c o m e 29 . -4 , 2 6 7 25 7 , 5 7 8 -7 6 , 9 5 0 18 0 , 6 2 8 -4 , 6 9 6 -1 , 0 6 6 0 -1 7 9 , 1 3 3 -2 2 4 , 8 9 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 5 / 2 0 0 9 Pa g e 1 Pr o p r i e t a r y a n d C o n f i d e n t i a l FO R M I IN 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 8 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 Id 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 To 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 T e l e c o m . P l a n t i n S e r v i c e (5 b ) 1. 3, 1 1 5 , 2 7 6 1, 0 0 7 , 1 2 0 22 5 , 9 0 9 1, 2 3 3 , 0 2 9 60 6 , 3 9 3 7, 9 0 5 0 1, 2 6 7 , 9 4 9 1, 8 8 2 , 2 4 7 20 0 5 P l a n t A c q u i s i t i o n A d j u s t m e n t 2. 0 0 0 31 0 0 L e s s : A c c u m u l a t e d D e p r . ( - ) (5 c ) 3. -1 , 7 0 4 , 9 4 5 -5 1 2 , 7 0 8 -1 0 4 , 2 2 0 -6 1 6 , 9 2 8 -3 5 2 , 6 5 5 -4 , 6 2 0 0 -7 3 0 , 7 4 2 - 1 , 0 8 8 , 0 1 7 34 x x - 3 6 x x A c c u m u l a t e d A m o r t , ( - ) (5 ) 4. 0 0 0 0 0 0 0 0 0 41 0 0 - 4 3 4 0 A c c u m . D e f e r r e d T a x ( - ) 5. 15 0 , 5 2 7 48 , 7 4 7 10 , 9 5 4 59 , 7 0 1 29 , 2 5 6 38 1 61 , 1 8 9 90 , 8 2 6 12 2 0 M a t e r i a l s a n d S u p p l i e s 6. 0 0 0 -- - - E q u a l A c c s s E q u i p m e n t (7 ) 7. 0 0 0 -- - - O t h e r R a t e B a s e 8. 28 , 8 0 4 11 , 0 4 2, 5 0 2 13 , 5 2 15 , 2 6 2 15 , 2 6 2 To t a l A v e r a g e R a t e B a s e 9. 1, 5 8 9 , 6 6 2 55 4 , 1 9 9 13 5 , 1 4 5 68 9 , 3 4 28 2 , 9 9 4 3, 6 6 6 0 61 3 , 6 5 8 90 0 , 3 1 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 5 / 2 0 0 9 Pa g e 2 Pr o p r i e t a r y a n d C o n f i d e n t i a l FO R M I IN 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 8 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 Id 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 u n t a n d No t e Li n e Su b j e c t To 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 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 G e n e r a l S u p p o r t F a c i l t i e s 1, 50 6 , 1 0 0 16 3 , 6 1 4 36 , 7 0 1 20 0 , 3 1 5 98 , 5 1 3 1, 2 8 4 0 20 5 , 9 8 8 30 5 , 7 8 5 22 X X C e n t r a l O f i c e E q u i p m e n t : CA T 1 - 0 p e r a t o r S y s t e m s 2. 0 0 0 CA T 2 - T a n d e m S w i t c h i n g ( A l l o c . ) 3. 0 0 0 CA T 2 - T a n d e m S w i t c h i n g ( A s s i g n , ) 4. 0 0 0 CA T 3 - L o c l S w i t c h i n g 5, 36 8 , 2 1 9 29 , 9 6 9 29 9 , 9 6 9 13 , 0 1 8 55 , 2 3 2 68 , 2 5 0 CA T 4 . 1 2 - E x c h . T r u n k ( J o i n t U s e ) 6. 0 0 0 CA T 4 . 1 2 - E x c h . T r u n k ( O e d . U s e ) 7. 15 9 , 4 5 5 14 9 , 4 3 7 14 9 , 4 3 7 10 , 0 1 8 10 , 0 1 8 CA T 4 . 1 3 - S u b s c r . L i n e ( J o i n t U s e ) 8. 12 7 , 3 7 1 31 , 7 6 3 31 , 7 6 3 31 , 7 6 3 32 0 63 , 5 2 5 95 , 6 0 8 CA T 4 , 1 3 - S u b s c r . L i n e ( O e d . U s e ) 9. 0 0 0 CA T 4 . 2 3 - I X T r u n k ( J o i n t U s e ) 10 . 20 , 2 0 4 12 , 8 2 2 1, 1 7 1 13 , 9 9 3 5, 9 1 8 29 3 0 6, 2 1 1 CA T 4 , 2 3 - I X T r u n k C k t . ( O e d . U s e ) 11 . 3, 3 3 9 3, 3 3 9 3, 3 3 9 0 CA T 4 . 3 - H o s t / R e m o t e T r u n k C k t . 12 . 0 0 0 Ot h e r C O E 13 , 0 0 0 To t a l C O E 14 . 67 8 , 5 8 8 34 4 , 5 5 4 15 3 , 9 4 7 49 8 , 5 0 1 50 , 6 9 9 61 3 0 12 8 , 7 7 5 18 0 , 0 8 7 23 X X I n f o r m a t i o n O r i g . f T e r m . E q u i p m e n t : CA T 1 - R e g u l a t e d C P E 15 . 0 0 0 Ot h e r l O T 16 . 0 0 0 To t a l lO T 17 . 0 0 0 0 0 0 0 0 0 24 X X C a b l e & W i r e F a c i l t i e s : CA T 1 . 3 - S u b s c r i b e r L i n e ( C o m m o n ) 18 . 1, 6 9 4 , 6 0 3 42 3 , 6 5 1 42 3 , 6 5 1 42 3 , 6 5 1 0 84 7 , 3 0 1 1, 2 7 0 , 9 5 2 CA T 1 . 1 , 2 - S u b s c r i b e r L i n e ( O e d , ) 19 . 4, 2 6 2 0 4, 2 6 2 4, 2 6 2 CA T 2 - E x c h . T r u n k ( J o i n t U s e ) 20 , 0 0 0 CA T 2 - E x c h . T r u n k ( O e d . U s e ) 21 . 11 1 , 9 2 7 27 , 9 8 2 27 , 9 8 2 83 , 9 4 5 83 , 9 4 5 CA T 3 - I X T r u n k ( J o i n t U s e ) 22 , 11 5 , 0 3 2 73 , 7 6 1 6, 9 3 4 80 , 6 9 5 32 , 6 0 3 1, 7 3 4 0 34 , 3 3 7 CA T 3 - I X T r u n k ( O e d . U s e ) 23 . 0 0 0 CA T 4 - H o s t / R e m o t e T r u n k 24 . 0 0 0 Ot h e r C & W F 25 . 0 0 0 To t a l C & W F 26 . 1, 9 2 5 , 8 2 4 49 7 , 4 1 2 34 , 9 1 6 53 2 , 3 2 8 45 6 , 2 5 4 5, 9 9 6 0 93 1 , 2 4 6 1, 3 9 3 , 4 9 6 26 X X O t h e r A s s e t s : Ca p i t a l L e a s e s 27 . 0 0 0 Le a s e h o l d I m p r o v e m e n t s 28 , 0 0 0 In t a n g i b l e s 29 . 4, 7 6 4 1, 5 4 0 34 5 1, 8 8 5 92 7 12 1, 9 4 2, 8 7 9 To t a l O t h e r A s s e t s 30 . 4, 7 6 4 1, 5 4 0 34 5 1, 8 8 5 92 7 12 0 1,9 4 0 2, 8 7 9 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 . 3, 1 1 5 , 2 7 6 1, 0 0 7 , 1 2 0 22 5 , 9 0 9 1, 2 3 3 , 0 2 9 60 6 , 3 9 3 7, 9 0 5 0 1, 2 6 7 , 9 4 9 1, 8 8 2 , 2 4 7 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 5 / 2 0 0 9 Pa g e 3 Pr o p r i e t a r y a n d C o n f i e n t i a l FO R M I IN 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 è a r E n d e d : D e c m b e r 3 1 , 2 0 0 8 Se p e r a t e 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 Id 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 To 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 s s To t a l Ac 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 G e n e r a l S u p p o r t F a c i l i t i e s 1, -3 0 3 , 3 4 6 -9 8 , 0 6 7 -2 1 , 9 9 -1 2 0 , 0 6 5 -5 9 , 0 4 7 -7 7 O -1 2 3 , 4 6 -1 8 3 , 2 8 1 31 2 X C e n t r a l O f f c e S w i t c h i n g 2. -1 2 0 , 0 2 8 -9 7 , 7 8 0 -9 7 , 7 8 0 -4 , 2 4 3 -1 8 , 0 0 5 -2 2 , 2 4 8 31 2 X O p e r a t o r S y s t e m s 3, 0 0 0 31 2 X C e n t r a l O f f c e T r a n s m i s s i o n 4. -1 2 3 , 4 3 3 -1 7 , 7 3 1 -6 1 , 2 2 4 -7 8 , 9 5 5 -1 4 , 9 8 6 -2 4 4 -2 9 , 2 4 -4 4 , 4 7 8 31 3 X I n f o r m a t i o n O r i g . l T e r m . E q u i p . 5, 0 0 0 31 4 X C a b l e & W i r e F a c i l i t i e s 6. -1 , 1 5 8 , 1 3 8 -2 9 , 1 3 0 -2 0 , 9 9 8 -3 2 0 , 1 2 8 -2 7 4 , 3 7 9 -3 , 6 0 6 -5 6 0 , 0 2 5 -8 3 8 , 0 1 0 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 ) 7. -1 , 7 0 4 , 9 4 5 -5 1 2 , 7 0 8 -1 0 4 , 2 2 0 -6 1 6 , 9 2 8 -3 5 2 , 6 5 5 -4 , 6 2 0 ° -7 3 0 , 7 4 2 - 1 , 0 8 8 , 0 1 7 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 C a p i t a l L e a s e s 8. 0 0 0 34 2 0 L e a s e h o l d I m p r o v e m e n t s 9. 0 0 0 35 0 0 I n t a n g i b l e s 10 . 0 0 0 36 0 0 A c q u i s i t i o n A d j u s t m e n t 11 , 0 0 0 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 5 / 2 0 0 9 Pa g e 4 Pr o p r i e t a r y a n d C o n f i d e n t i a l FO R M I IN 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 8 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 Id 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 To 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 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 - 6 4 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 - 2 0 G e n e r a l S u p p o r t F a c i l i t i e s 1. 86 , 0 5 6 27 , 8 2 1 6, 2 4 1 34 , 0 6 2 16 , 7 5 1 21 8 35 , 0 2 5 51 , 9 9 4 62 1 X Ce n t r a l O f c e S w i t c h i n g 2. 76 , 2 3 5 38 , 7 0 8 17 , 2 9 5 56 , 0 0 3 5, 6 9 6 69 14 , 4 6 7 20 , 2 3 2 62 2 0 Op e r a t o r S y s t e m s 3. 0 0 0 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 4. 33 , 1 9 5 16 , 8 5 5 7, 5 3 1 24 , 3 8 6 2, 4 8 0 30 6, 2 9 9 8, 8 0 9 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 . 5, 0 0 0 64 X X Ca b l e & W i r e F a c i l i t i e s 6. 13 3 , 4 5 7 34 , 4 7 0 2, 4 2 0 36 , 8 9 0 31 , 6 1 8 41 6 64 , 5 3 3 96 , 5 6 7 To t a l P l a n t S p e c i f i c (5 a ) 7. 32 8 , 9 4 11 7 , 8 5 4 33 , 4 8 7 15 1 , 3 4 1 56 , 5 4 5 73 3 0 12 0 , 3 2 4 17 7 , 6 0 2 65 X X P l 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 8. 10 8 35 8 43 21 44 65 65 3 X Ne t w o r k O p e r a t i o n s 9. 47 , 1 8 9 15 , 2 5 5 3, 4 2 2 18 , 6 7 7 9, 1 8 5 12 0 19 , 2 0 7 28 , 5 1 2 65 4 0 Ac c s s P a i d t o L E C s (9 ) 10 . 0 0 0 To t a l P l a n t N o n s p e c i f i c (5 a ) 11 . 47 , 2 9 7 15 , 2 9 0 3, 4 3 0 18 , 7 2 0 9, 2 0 6 12 0 0 19 , 2 5 1 28 , 5 7 7 65 6 X D e 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 . 16 , 4 8 3 5, 3 2 9 1, 1 9 5 6,5 2 4 3, 2 0 8 42 6, 7 0 9 9, 9 5 9 65 6 1 Ce n t r a l O f f c e S w i t c h i n g 13 . 52 , 2 0 2 42 , 5 2 6 42 , 5 2 6 1, 8 4 5 7, 8 3 1 9, 6 7 6 65 6 1 Op e r a t o r S y s t e m s 14 . 0 0 0 65 6 1 Ce n t r a l O f i c e T r a n s m i s s i o n 15 . 59 , 0 2 5 8, 4 7 9 29 , 2 7 7 37 , 7 5 6 7, 1 6 6 11 6 13 , 9 8 7 21 , 2 6 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 . 0 0 0 65 6 1 Ca b l e & W i r e F a c i l i t i e s 17 . 76 , 4 0 7 19 , 7 3 5 1, 3 8 5 21 , 1 2 0 18 , 1 0 2 23 8 36 , 9 4 7 55 , 2 8 7 65 6 3 Ca p i t a l L e a s e s 18 , 0 0 0 65 6 3 le a s e h o l d I m p r o v e m e n t s 19 . 0 0 0 65 6 4 In t a n g i b l e s 20 , 0 0 0 65 6 5 Ac q u i s i t i o n A d j u s t m e n t 21 . 0 0 0 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 . 20 4 , 1 1 7 76 , 0 6 9 31 , 8 5 7 10 7 , 9 2 6 30 , 3 2 1 39 6 0 65 , 4 7 4 96 , 1 9 1 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 5 / 2 0 0 9 Pa g e 5 Pr o p r i e t a r y a n d C o n f i d e n t i a l FO R M i IN 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 8 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 Id 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 To 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 s s Ac c e s s To t a l Ac c e s s Ac c 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 C u 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 1. 3, 4 5 5 2, 1 9 3 2, 1 9 3 1, 2 0 5 57 1, 2 6 2 66 2 X Op e r a t o r S e r v i c e s 2. 0 0 0 66 2 X Di r e c t o r y P u b l i s h i n g - A l p h a . 3. 2, 4 6 2 59 6 59 6 26 6 1, 0 0 1, 8 6 6 66 2 X Di r e c t o r y P u b l i s h i n g - C l a s s i f i e d 4. 0 0 0 66 2 X Di r e c t o r y P u b l i s h i n g - F o r e i g n 5. 0 0 0 66 2 3 Se r v i c e O r d e r P r o c . - E n d U s e r 6. 9, 5 6 1 2, 7 4 8 2, 7 4 8 1, 9 1 0 4, 9 0 3 6, 8 1 3 66 2 3 Pa y m e n t & C o l l e c t i o n - E n d U s e r 7, 6, 9 1 4 2, 8 2 4 2, 8 2 4 1, 4 4 9 2, 6 4 1 4, 0 9 0 66 2 3 Bi l i n g I n q u i r y - E n d U s e r 8. 3, 5 0 7 2, 0 6 9 2, 0 6 9 1, 4 3 8 ° 1, 4 3 8 66 2 3 Se r v i c e O r d e r P r o c . - C X R 9. 0 0 0 66 2 3 Pa y m e n t & C o l l e c t i o n - C X R 10 . 0 0 0 66 2 3 Bi l i n g I n q u i r y - C X R 11 . 0 0 0 66 2 3 Co i n A d m i n i s t r a t i o n 12 . 0 0 0 66 2 3 Re v , A c c g . - T o l l T i c k e t P r o c . 13 . 22 6 12 2 12 2 10 4 ° 10 4 66 2 3 Re v . A c c t g . - L o c a l M e s s . P r o c . 14 . 0 0 0 66 2 3 Re v , A c c t g . - O t h e r B i l & C o l i ' 15 . 4, 6 3 2 1, 3 6 9 1, 3 6 9 1, 5 4 1, 7 1 9 3, 2 6 3 66 2 3 Re v . A c c t g . . S L C B i l i n g 16 . 24 4 24 4 24 4 0 66 2 3 Re v . A c c t g , - C X R B & C (9 ) 17 . 9, 2 9 8 4, 6 4 9 4, 6 4 9 4, 6 4 9 4, 6 4 9 66 2 3 B & C A m t s P a i d t o L E C s (9 ) 18 . 0 0 0 66 2 3 Ot h e r C u s t o m e r S e r v i c e 19 . 13 , 4 4 9 5, 6 5 0 5, 6 5 0 4, 5 2 6 3, 2 7 3 7, 7 9 9 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 . 53 , 7 4 8 22 , 4 6 4 ° 22 , 4 6 4 17 , 0 9 1 57 ° 14 , 1 3 6 31 , 2 8 4 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 . 41 , 1 6 1 15 , 2 9 4 3,6 7 1 18 , 9 6 5 7, 9 1 0 83 14 , 2 0 3 22 , 1 9 6 67 2 X Ge n e r a l & A d m i n i s t r a t i v e 22 . 19 9 , 2 9 4 79 , 0 5 5 17 , 0 6 96 , 1 2 1 36 , 7 6 6 38 66 , 0 2 3 10 3 , 1 7 3 67 2 8 EA S S e t t l e m e n t E x p e n s e 23 . 0 0 0 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 . 24 0 , 4 5 5 94 , 3 4 9 20 , 7 3 7 11 5 , 0 8 6 44 , 6 7 6 46 7 ° 80 , 2 2 6 12 5 , 3 6 9 .. . . O t 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 s s P r o v i s i o n (1 0 ) 25 . 0 0 0 -- - - Un i v e r s a l S e r v i c e F u n d (1 1 ) 26 . 5, 0 6 9 5, 0 6 9 5, 0 6 9 0 -- - - Lif 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 , 0 0 0 To t a l Oth e r (5 a ) 28 , 5, 0 6 9 5,0 6 9 ° 5, 0 6 9 ° ° ° ° ° To t a l O p e r a t i n g E x p e n s e s (5 a ) 29 . 87 9 , 6 2 9 33 1 , 0 9 5 89 , 5 1 1 42 0 , 6 0 6 15 7 , 8 3 9 1, 7 7 3 ° 29 9 , 4 1 1 45 9 , 0 2 3 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 5 / 2 0 0 9 Pa g e 6 . . Pr o p r i e t a r y a n d C o n f i d e n t i a l FO R M I IN 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 8 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 Id 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 To Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e 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 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 G e n e r a l T a x e s 72 4 0 Pr o p e r t y 1. 0 0 0 72 4 0 Gr o s s R e c e i p t s 2. 0 0 0 72 4 0 PU C F e e 3. 60 5 10 2 10 2 50 3 50 3 72 4 0 Fr a n c h i s e F e e s 4. 0 0 0 72 4 0 Ot h e r 5, 8, 2 0 0 2, 6 5 1 59 5 3, 2 4 6 1, 5 9 6 21 3, 3 3 7 4, 9 5 4 To t a l G e n e r a l T a x e s 6, 8, 8 0 5 2, 7 5 3 59 5 3, 3 4 8 2, 0 9 9 21 0 3, 3 3 7 5, 4 5 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 ) 7, 65 , 1 0 5 41 8 , 4 6 3 -8 2 , 5 4 5 33 5 , 9 1 8 -7 6 , 5 5 0 -1 , 7 9 4 0 -1 9 2 , 4 6 9 -2 7 0 , 8 1 3 Le s s F i x e d C h a r g e s ( - ) 8. 25 , 3 8 8 8, 9 8 2 2, 2 3 2 11 , 2 1 4 4, 5 2 4 59 9, 5 9 1 14 , 1 7 4 Su b t o t a l ( l i n e s 7 - 8 ) (1 4 ) 9, 39 , 7 1 7 40 9 , 4 8 1 -8 4 , 7 7 7 32 4 , 7 0 4 -8 1 , 0 7 4 -1 , 8 5 3 0 -2 0 2 , 0 6 0 -2 8 4 , 9 8 7 Ot h e r S I T B a s e A d d / O e d . ( + - ) (1 5 ) 10 . 0 0 0 SI T T a x a b l e I n c . ( l i n e s 9 + - 1 0 ) 11 . 39 , 7 1 7 40 9 , 4 8 1 -8 4 , 7 7 7 32 4 , 7 0 4 -8 1 , 0 7 4 -1 , 8 5 3 0 -2 0 2 , 0 6 0 -2 8 4 , 9 8 7 72 3 0 S I T - C u r r e n t ( a t 6 . 6 % ) (1 6 ) 12 . 2, 6 2 1 27 , 0 2 6 -5 , 5 9 5 21 , 4 3 0 -5 , 3 5 1 - -1 2 2 0 -1 3 , 3 3 6 -1 8 , 8 0 9 Ot h e r F I T B a s e A d d / D e d . ( + - ) (1 7 ) 13 . 0 0 0 0 0 0 0 FI T T a x a b l e I n c . ( l i n e s 9 - 1 2 + - 1 3 ) 14 . 37 , 0 9 5 38 2 , 4 5 5 0 30 3 , 2 7 3 -7 5 , 7 2 3 -1 , 7 3 1 0 0 -7 7 , 4 5 4 Gr o s s F I T 15 . 10 6 , 7 5 1 13 3 , 8 5 9 0 13 3 , 8 5 9 -2 6 , 5 0 3 -6 0 6 0 0 -2 7 , 1 0 9 72 1 0 P C l a i m e d I T C ( - ) 16 . 0 0 0 0 0 0 0 0 0 Su r t a x E l i m i n a t i o n ( - ) 17 . 0 0 0 0 0 0 0 0 72 2 0 F I T - C u r r e n t ( l i n e s 1 5 - 1 6 - 1 7 ) (1 8 ) 18 . 10 6 , 7 5 1 13 3 , 8 5 9 0 13 3 , 8 5 9 -2 6 , 5 0 3 -6 0 6 0 0 -2 7 , 1 0 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 5 / 2 0 0 9 Pa g e 7 . . . ,~ Pr o p r i e t a i y a n d C o n f i d e n t i a l FO R M I IN 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 8 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 Id 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 u n t a n d No t e Li n e Su b j e c t To 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 FO R M I IN P U T M A S T E R 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 8 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 . 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 Id a h o In t r a s t a t e Op e r a t i o n Op e r a t i o n s De s c r i p t i o n No t e Li n e Su b j e c t To In t e r s t a t e In t r a s t a t e No . No . Se p a r a t i o n s To l l To l l EA S Lo c a l ( O t h e r ) Se p a r a t i o n P a r a m e t e r s (1 9 ) Pl a n t SL U M i n u t e s o f U s e ( M O U ) 1. 8, 7 3 3 , 5 9 1 2, 1 1 4 , 4 7 9 94 3 , 3 1 3 5, 6 7 5 , 7 9 9 SL U F a c t o r 2. 1. 0 0 0 0 0 0 0. 2 4 2 1 0 9 0. 1 0 8 0 0 0. 6 4 9 8 8 2 Ba s e S P F - J a n u a r y 1 3. 0. 0 0 0 0 0 0 Ba s e S P F - D e c e m b e r 3 1 4. 0. 0 0 0 0 0 0 Cu r r e n t C o m p o s i t e S P F (2 0 ) 5. 1. 0 0 0 0 0 0 0. 2 5 0 0 0 0 0. 2 5 0 0 0 0. 5 0 0 0 19 9 6 W e i g h t e d O E M 6. 1. 0 0 0 0 0 0 0. 8 5 8 8 0 7 0. 1 4 1 1 9 3 19 9 6 U n w e i g h t e d O E M 7. 1. 0 0 0 0 0 0 0. 2 8 6 2 6 9 0.1 2 5 0 1 2 0. 5 8 7 1 9 Cu r r e n t C A T 3 D i a l E q u i p m e n t M i n u t e s (2 1 ) 8. 8, 7 3 3 , 5 9 1 2, 1 1 4 , 4 7 9 94 , 3 1 3 5, 6 7 5 , 7 9 9 Cu r r e n t C o m p o s i t e O E M F a c t o r 9. 1. 0 0 0 0 0 0 0. 8 1 4 6 4 7 0. 0 3 5 3 5 3 0. 1 5 Ex c h a n g e T r u n k - J o i n t U s e M O U (2 2 ) 10 . 0 Ho s U R e m o t e M O U K i l o m e t e r s (2 3 ) 11 . 0 Eq u a l A c c s s M O U (2 4 ) 12 . 0 Op e r a t o r S t a n d a r d W o r k S e c n d s (2 5 ) 13 . 0 Ta n d e m S w i t c h i n g M O U (2 6 ) 14 . 0 IX C o n v e r s a t i o n M O U 15 . 1, 6 2 5 , 7 8 9 1, 1 1 2 , 3 4 4 51 3 , 4 4 IX C o n v e r s a t i o n M i n u t e K i l o m e t e r s 16 . 17 , 3 5 2 , 7 8 6 12 , 0 3 3 , 7 9 6 5, 3 1 8 , 9 9 Ot h e r P a r a m e t e r s Ac c s s L i n e s 17 . 39 8 Un s e p a r a t e d L o o p C o s t ( g 1 1 . 1 R O R (2 7 ) 18 . Gr o s s B i l e d R e v e n u e s -M a r k e t i n g A l l o c a t i o n B a s i s (2 8 a ) 19 . 0 -P a y m e n t & C o l l e c i o n - E n d U s e r (2 8 b ) 20 . 18 4 , 2 8 1 75 , 2 7 2 38 , 6 0 70 , 4 0 -P a y m e n t & C o l l e c t i o n - C X R (2 8 c ) 21 . 0 Se r v i c e O r d e r C o n t a c t s -S e r v i c e O r d e r P r o c . - E n d U s e r (2 9 a ) 22 . 67 7 19 5 13 5 34 7 -S e r v i c e O r d e r P r o c . - C X R (2 9 b ) 23 . 0 Bi l l n g I n q u i r y C o n t a c t s -B i l i n g I n q u i r y - E n d U s e r (3 O a ) 24 . 38 0 22 4 15 6 -B i l l n g I n q u i r y - C X R (3 0 b ) 25 . 0 SP + R C T o l l M e s s a g e s (3 1 ) 26 , 10 0 , 6 8 0 54 , 2 8 6 46 , 3 9 4 EA S / L o c a l M e s s a g e s ( M s g . P r o c . ) 27 . 0 'B I G 3 ' E x p e n s e F a c t o r - M e s s a g e (3 2 ) 28 . 24 3 , 9 8 4 90 , 8 6 5 56 , 6 9 3 96 , 4 2 6 -P L S & S p e c i a l A c c s s 29 , 1, 6 2 3 1, 6 2 3 Op e r a t o r S e r v i c e s E x p e n s e - - F a c t o r 30 . 0 Ac c s s M i n u t e s o f U s e ( E n d O f i c e ) 31 . 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 5 / 2 0 0 9 Pa g e 8