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HomeMy WebLinkAbout2009Annual Report.pdfINLAND TELEPHONE COMPANY Corporate Offices 103 S. 2nd Sf. P.O. Box 171 Roslyn, WA 98941 )'.~"" .,..",:...t.'",...0.,.. INLAD TELEPHONE Telephone: (509) 649-2211 Fax: (509) 649-3300 pM 2: \,,6 'lfï\\\ JlPB. -9 \' i L~J; l...' H VIA CERTIFIED MAIL RETRN RECEIPT REQUESTED -:NC--r April 12, 2010 Randy Lobb, Administrator Utilties 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 Utilities Commission for the year ended December 31, 2009. Also included are the Company's Idaho separation factors for 2009 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,g~~~~~~.~s Secretary GAM:glm Enclosures cc: Emily Morris - Johnson Stone & Pagano F:\WORD\GRETA\IPUC\IPUC 2009 REPORT. DOC ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31, 2009 I"' At: It:li iL"" i COMPANY INFORMATION 2G\û ~.PR -9 l~' 2tΡ6 Exact name of utilty: 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, Ronald, & Uniontown, Washington & Gifford, Leon & Lenore, Idaho Name and title of officer having custody of the general corporate books of account: James K. Brooks, Treasurer Address of office where corporate books are kept and phone number: !. Çr t;1'~,:~~'~(:~'r~tt":~.,i I\"Tl\ 'IP',-:::, '..",j,t.," j _,. -\:: '~\ same as principal office 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 affiliated 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 office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title, and address of the previous officer and the date of change. Title President Vice President 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, 2009 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, 2009 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. 2009 Balance Baiance increase Beginning at End orTitie Of Account Of Year of Year (DeCreaSe) Current Assets 1120 Cash and Equivalents 1130 Cash 488,099 103,930 (384,169) 1140 Special Cash Deposits 1150 Working Cash Advances 2,300 2,300 0 1160 Temporary Investments 48,121 338,057 289,936 1180 Telecommunications Accts. Receivable 117,793 84,581 (33,212) 1181 Accts. Rec. Allow. -Telecommunications (10,000)(10,000)0 1190 Other Accounts Receivable 11,958,410 765,464 (11,192,946) 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 384,586 335,086 (49,500) 1280 Prepayments 13,060 14,233 1,173 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 Affilated Companies 1402 Investment in Nonaffiliated Companies 626,540 786,657 160,117 1406 Nonregulated Investments 79,197 631,666 552,469 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 114,463 120,067 5,604 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets ~ Net Propert, Plant and Equipment 2001 Telecommunications Plants in Service 20,859,425 21,434,467 575,042 2002 Prop. Held for Future Telecom. Use 20,130 20,130 2003 Telecom. Plant under Constr. - Short Term 53,831 181,128 127,297 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwil Depreciation and Amortization Accounts 3100 Accumulated Depreciated 12,481,335 12,991,047 509,712 3200 Accum. Depre. - Held for Future Use 2,146 2,146 3300 Accumulated Depreciation - Nonoperating 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. ~ Leasehold Improvements 136 136 3500 Accumulated Amortization -Intangible 30,963 61,737 30,774 3600 Accumulated Amortization - Other TOTAL ASSETS 22,223,527 11,752,700 (10,470,691) Rev 3/02 Page 4 BALANCE SHEET Liabilties & Stockholders' Equity FOR THE YEAR ENDING DECEMBER 31, 2009 Balance Balance Increase Beginning at End or Title of Account of Year of Year (Decrease) Current Liabilties 4010 Accounts Payable 199,537 128,601 (70,936) 4020 Notes Payable 4030 Advance Billngs and Payments 4040 Customer Deposits 5,826 4,097 (1,729) 4050 Current Maturities - Long -Term Debt 574,362 612,700 38,338 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 135,573 146,276 10,703 4100 Net Current Defer. Oper. Income Taxes 191,959 218,127 26,168 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilties 968,228 1,045,297 77,069 4130 Other Current Liabilties 36,217 41,136 4,919 Long-Term Debt 4210 Funded Debt 3,039,483 2,490,974 (548,509) 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 1,633,284 0 (1,633,284) 4270 Other Long-Term Debt Other Liabilties & Deferred Credits 4310 Other Long-Term Liabilities 4320 Unamort. Oper. Invest. Tax Credits - Net 710 0 (710) 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 864,185 991,055 126,870 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 o. 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings 14,473,838 5,974,112 (8,499,726) TOTAL LIAB. & OTHER CREDITS 22,223,527 11,752,700 (10,470,827) 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 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 43 0 , 1 7 2 22 1 , 6 1 4 65 1 , 7 8 6 21 1 2 Mo t o r V e h i c l e s 1, 6 0 0 , 2 5 1 82 , 7 5 8 65 , 5 5 9 1, 6 1 7 , 4 5 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 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 69 8 , 1 7 4 75 , 2 2 0 34 , 3 7 2 13 , 3 2 7 75 2 , 3 4 9 21 2 1 Bu i l d i n g s 2, 0 5 5 , 5 3 2 19 0 , 5 4 7 (4 2 , 8 1 3 ) 2, 2 0 3 , 2 6 6 21 2 2 Fu r n i t u r e 17 5 , 1 2 6 2, 1 5 1 17 7 , 2 7 7 21 2 3 Of f c e E q u i p m e n t 27 5 , 7 6 8 6, 8 9 5 36 , 4 3 5 24 6 , 2 2 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 81 7 , 5 0 1 3, 2 0 5 44 3 , 2 4 0 37 7 , 4 6 6 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 9 5 , 5 1 5 21 1 , 7 7 7 24 , 4 5 6 2, 7 3 1 , 7 4 8 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, 6 0 4 , 0 5 8 12 , 6 4 8 6, 6 7 3 12 0 , 0 9 0 2, 7 3 0 , 1 2 3 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 38 , 5 6 3 0 0 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 9, 2 6 6 , 7 8 7 38 1 , 3 2 1 (1 4 1 , 8 7 6 ) 9, 5 0 6 , 2 3 2 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 3. 3 9 1 0 3, 3 9 1 26 9 0 In t a n g i b l e s 13 1 , 5 2 6 0 13 1 , 5 2 6 TO T A L P L A N T A C C O U N T S 20 , 8 5 9 , 4 2 5 1, 1 8 8 , 1 3 6 58 6 , 2 7 9 (2 6 , 8 1 6 ) 21 , 4 3 4 , 4 6 6 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 9 Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Ye a r Du r i n g Ye a r or So l d Ad j u s t m e n t s of Ye a r An a l y s i s 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 2 8 80 , 6 2 5 * 10 4 , 0 5 3 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, 8 1 2 6 * 1, 8 1 8 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 45 0 , 1 0 5 71 , 9 2 7 * 52 2 , 0 3 2 21 2 2 Fu r n i t u r e 25 , 0 9 3 49 1 * 25 , 5 8 4 21 2 3 Of f i c e E q u i p m e n t 55 , 3 6 7 (4 , 7 6 6 ) * 50 , 6 0 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 10 8 , 3 5 2 (5 6 , 4 1 1 ) * 51 , 9 4 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 41 5 , 7 1 9 62 * 41 5 , 7 8 1 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, 7 5 0 15 * 1, 7 6 5 22 3 2 Ci r c u i t E q u i p m e n t 29 1 , 3 8 7 26 2 * 29 1 , 6 4 9 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, 9 0 6 , 1 9 3 57 , 8 8 2 1, 9 6 4 , 0 7 5 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 Wi 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, 3 3 3 , 0 1 7 57 , 8 8 2 0 92 , 2 1 1 * 3, 4 8 3 , 1 1 0 *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 . Re v 3 / 0 2 Pa g e 7 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 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 9 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 Ye a r Ra t e * Ye a r Ad j u s t m e n t s of Ye a r An a l y s i s 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 1, 6 0 0 , 1 9 0 16 . 0 0 / 1 2 . 5 0 4, 3 2 1 (6 5 , 5 5 9 ) 1, 5 3 8 , 9 5 2 21 1 3 A i r c r a f t 0 0 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 0 0 21 1 5 G a r a g e W o r k E q u i p m e n t 25 , 2 9 5 12 . 5 25 , 2 9 5 21 1 6 O t h e r W o r k E q u i p m e n t 66 9 , 5 9 6 16 . 0 0 / 1 2 . 5 0 34 , 0 9 5 (3 3 , 8 7 2 ) 66 9 , 8 1 9 21 2 1 Bu i l d i n g s 1, 0 5 4 , 6 3 0 4. 0 0 / 2 . 5 0 83 , 1 7 0 (2 , 8 5 4 ) 1, 1 3 4 , 9 4 6 21 2 2 Fu r n i t u r e 17 3 , 1 8 9 15 . 0 0 / 6 . 0 0 2, 0 9 8 17 5 , 2 8 7 21 2 3 O f f i c e E q u i p m e n t 24 6 , 0 3 9 20 . 0 0 / 5 . 0 0 & 6 . 0 0 22 , 9 6 5 (3 6 , 2 8 5 ) 23 2 , 7 1 9 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 81 6 , 5 1 8 25 . 0 0 / 1 2 . 5 0 1, 3 8 4 (4 4 3 , 2 4 0 ) 37 4 , 6 6 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 73 3 , 3 8 9 9. 0 0 23 5 , 2 2 7 2, 8 5 4 97 1 , 4 7 0 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 O p 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 C i r c u i t E q u i p m e n t 88 1 , 7 6 2 11 . 1 9 28 1 , 9 1 4 17 , 9 5 6 1, 1 8 1 , 6 3 2 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 O t 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 23 , 7 5 3 7. 5 9 / 5 . 0 0 2, 8 5 9 26 , 6 1 2 24 2 1 Ae r i a l C a b l e 17 8 , 9 8 2 20 . 4 0 / 4 . 0 0 1, 1 8 1 18 0 , 1 6 3 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 6, 0 3 4 , 4 5 5 5. 0 0 & 6 . 0 0 / 4 . 0 0 & 6 . 0 0 42 7 , 3 3 4 (2 5 , 8 3 7 ) 6, 4 3 5 , 9 5 2 24 2 4 S u 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 6 42 . 0 6 / 8 . 0 0 6, 6 9 6 24 4 1 Co n d u i t S y s t e m s 0 0 TO T A L 12 , 4 8 1 , 3 3 6 1, 0 9 6 , 5 4 8 (5 8 6 , 8 3 7 ) 12 , 9 9 1 , 0 4 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 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 9 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 Sp 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, 8 1 2 13 , 1 1 9 22 " 24 , 5 1 2 49 , 1 9 1 1õ ã o 15 1 , 5 9 4 o Õ 1, 7 5 Õ 13 ~ o Õ Õ Õ Õ 1, 2 1 2 10 , 2 8 4 -0 1, 1 7 7 , 2 1 1 o Õ 4, 8 2 1 -- TO T A L 1, 9 0 4 , 0 2 0 5. oc r - 79 4. 0 0 1~ 4. 0 0 / 6 . 0 0 77 , 2 0 6 (6 8 6 ) * * 8. 0 0 14 4 , 9 9 9 (3 6 , 1 7 3 ) * * De p r e c i a t i o n Ra t e * 12 . 5 0 12 . 5 0 2. 5 0 6. 0 0 5. õ õ 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 2 1 28 , 0 6 5 Re t i r e m e n t s an d Ad j u s t m e n t s 6 * * 15 , 6 4 0 * * 82 6 * * (2 , õ 6 * * (5 6 , 5 2 1 ) * * 2, 1 4 5 * * 15 * * 4, 4 6 6 * * * 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 8 13 , 1 1 9 24 6 25 , 3 3 8 47 , 1 2 7 51 , 5 9 5 o 18 9 , 0 6 Õ o Õ 1, 7 6 5 16 4 , o Õ Õ Õ Õ 1, 2 9 1 11 , 4 6 5 -0 1, 2 5 3 , 7 3 1 o Õ 4, 8 2 1 -0 2, 0 1 2 , 8 4 6 INVESTMENTS FOR THE YEAR ENDING DECEMBER 31, 2009 account in which included. Minor amounts in Account 1406 may be grouped by classes. Description Date Acquired 1402-llluminet 1402-Verizon 1402-RTB Class C Stock 1406-Paging EguipJCPEI Mobile CPE Various Rural Telephone Finance Cooperative Capital Certificates 1981 2005 1974 Totals Book Cost of Investments Disposed of This year RECEIVABLES Book Cost of Investments Held at End of Year 755,270 28,326 o 631,666 3,061 o 1,418,323 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 Totals Rev 3/02 Amount at End of YearNotes Accounts Receivable Receivable 84,581 Page 10 765,464 o 850,045 NOTES PAYABLE FOR THE YEAR ENDING DECEMBER 31, 2009 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 128,601 128,601 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 9 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 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 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 31 , 3 2 6 1 2% 87 2 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 37 9 , 8 4 8 1 2% 8, 0 1 2 RU S 1 2 1 4 0 Oc t . 1 9 7 9 Oc t . 2 0 1 4 58 1 , 0 0 0 21 2 , 8 2 1 1 5% 11 , 2 6 8 RU S 1 2 1 5 0 Ap r . 19 9 5 Ap r . 20 1 4 94 7 , 0 0 0 34 9 , 3 1 1 1 7% 26 , 8 4 6 RU S 1 2 1 5 1 Ap r . 19 9 5 Ap r . 2 0 1 4 27 0 , 0 0 0 99 , 1 7 3 1 6. 9 1 % 7, 5 2 5 RU S 1 2 1 5 2 Ap r . 1 9 9 5 Ap r . 20 1 4 32 9 , 0 0 0 11 8 , 3 1 3 1 6. 2 6 % 8, 1 4 7 RT B S 0 1 0 Oc t . 1 9 7 9 Oc t . 2 0 1 4 34 5 , 4 5 0 12 2 , 7 1 2 1 8% 10 , 5 8 6 RT B S 0 2 0 De c . 19 8 6 Ap r . 2 0 1 1 43 9 , 9 5 0 17 8 , 2 2 8 1 8% 15 , 3 4 6 RT B S 0 2 3 De c . 19 8 6 De c . 20 1 1 32 4 , 9 5 2 12 2 , 1 1 7 1 5. 5 4 % 7, 4 5 6 RU S 1 2 1 5 3 Ap r . 19 9 5 Ap r . 2 0 1 4 45 1 , 4 7 8 16 1 , 3 2 8 1 4. 8 6 % 8, 6 5 3 RU S 1 2 1 5 4 Ap r . 1 9 9 5 Ap r . 2 0 1 4 28 9 , 5 2 2 10 9 , 5 4 7 1 5. 7 1 % 6, 8 9 1 RT B S 0 3 1 De c . 19 8 6 De c . 20 1 1 72 9 , 6 1 1 44 9 , 4 1 4 1 5. 4 9 % 27 , 1 8 7 RT B S 0 3 2 De c . 19 8 6 Ap r . 2 0 1 4 1, 1 5 8 , 9 1 1 68 8 , 3 3 2 1 5. 1 0 % 38 , 7 1 3 RT B S 0 3 3 Ap r . 19 9 5 Ap r . 2 0 1 4 74 , 8 5 8 63 , 8 7 8 1 5. 1 3 % 3, 8 4 0 7, 6 4 8 , 7 3 2 3, 0 8 6 , 3 4 8 18 1 , 3 4 2 Re v 3 / 0 2 Pa g e 1 2 CAPITAL STOCK FOR THE YEAR ENDING DECEMBER 31, 2009 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 6,603,307 5,124,201 819,145 787,179 (710)0 219,057 4,504 (8,733)(8,733) 107,775 13,655 73,243 6,860 390,632 16,286 2,141 264 40,543 (1,750) 0 0 8,319 0 (55,259)(6,014) (4,256)(7,500) (812) (812) o o 182,288 29,378 54,904 237,192 27 29,405 o o (251,595) 596,243 14,304 (6,921) 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 Billng 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: 220,574 26,878 3,468,478 577,084 519,089 25,442 1,497,163 77,939 8,512 (22) 8,715 1,515 12,000 0 658,725 106 103,505 33,608 160 89,557 16,885 6,603,307 NECA USF $547,822 To what account were they booked? A1C 5082.13-lnterstate Switched Accss Revenue-USF (Idaho only) State USF $41,865 To what account were they booked? A1C 5084. 12-lntrastate Switched Access Revenue-USF (Idaho only) Rev 3/02 Page 15 92,987 o 11,871 3,600 o 3,946 2,095 819,145 OPERATING REVENUES FOR T Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses6112 Motor Vehicle Expense 110,681 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 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 238,044 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information OriginationlTermination 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 Expense6431 Aerial Wire Expense 0 6441 Conduit Systems Expense 13,199 58,960 7,031 0 0 405,398 48,344 3,790 451 39,575 4,719 127,681 15,226 401,439 57,422 34,050 2,137 255 1,291 264 84,159 17,226 554,428 113,480 o TOTAL PLANT SPECIFIC OPERATIONS EXPENSE 2,027,583 311,667 Rev 3/02 Page 16 FOR litem OPERATING REVENUES Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Propert/Plant/Equipment 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 65.60 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-Propert 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 Accunting 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 3/02 903 166 37,047 6,814 3,917 721 32,820 6,038 120,471 22,163 47,255 8,694 29,205 5,373 1,097,623 170,441 30,775 0 1,400,016 40,712 22,028 460,584 523,324 189,842 433,747 23,975 91,239 56,329 378,146 1,173,278 5,124,201 Page 17 220,410 5,020 2,716 56,790 64,526 30,836 70,454 3,894 14,820 9,150 61,422 190,576 787,179 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 9 ( 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 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 . ) 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 i 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 1- P a r t y Pa r t y 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 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 4 0 4 0 0 0 0 0 4 Di s c o n n e c t s 0 4 0 4 0 0 0 0 0 4 En d o f Ye a r 0 28 0 28 0 0 0 0 1 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 : 12 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 9 ( 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 : 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 2 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 1 Co m p a n y O f f i c i a l L i n e s 10 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 y Re s i d e n c e N. A R . 1- P a r t y 1- P a r t 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 4 0 28 4 0 15 8 0 23 30 7 Ne w C o n n e c t s 0 40 0 40 0 0 0 0 0 40 Di s c o n n e c t s 0 43 0 43 0 1 1 0 2 45 En d o f Ye a r 0 28 1 0 28 1 0 14 7 0 21 30 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 . 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 : 18 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 : 26 8 21 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 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 . l (1 0 0 0 s ) L i n e N/ 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 . l 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 N/ A NI A NI A NI A NI A NI A NI A ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2009 CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA 31.41.01.105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes No x Included in directory Yes x No Date of notification December, 2008 through December, 2009 Alternate method of notification None Rule IDAPA 31.41.01.403.02 Record of Complaints: Number received by Company 8 Category of complaints (if known): Deposit Disputes o Charges on Bil 3 DeniallT ermination o Quality or Availability of Service o Carrier SelectionlAssignment 3 Miscellaneous 2 Rev 3/02 Page 20 CERTIFICATE FOR THE YEAR ENDING DECEMBER 31, 2009 ) ) ssCounty of Kittitas ) WE, the undersigned Gregory A Maras, Secretary and James K. Brooks, Treasurer of the Inland Telephone Company utilty, 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 utilty; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utilty for the penod 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 -l day of -CÀ ( \ c:Me.Y to. q Notary Public i Pam Nelson ,2010 My Commission expires 0Q. po q l ,Xl \ PAMELA R ¡l.SON NOTARY PUBLIC STATE Of WASHINGTON COMMISSiON EXPIRES SEPTEMBER 9. 2011 ¡:'i:'" .~,~;". ."",;- Rev 3/02 gdklexceVjnelson/anulrptsltelannualrpt Page 21 Pr p r a n d C o n f i d e n t i 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 m b e r 3 1 , 2 0 0 9 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 e O p e r a t i o n In t r a s t a e O p e r a t i o n Op e r a 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 To Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c a l Lo c a l De l i r l p t l o n No . No . se p a r a t i o n s Ac c s s Ac c To t a l Ac c s s Ac c 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 SO X X L o c l - B i l e d (1 ) 1. 10 4 , 8 5 7 ° 10 4 , 8 5 7 10 4 , 8 5 7 -E A S B i l l e d (1 ) 2. 0 0 0 -E A S S e t t l e m e n t (1 ) 3. 0 0 0 S0 8 X A c c s - S L C ( E n d U s e r ) (2 ) 4. 26 , 8 7 8 26 , 8 7 8 26 , 8 7 8 0 -S w i t c h e d ( T S + N T S ) (2 ) 5. 65 , 0 2 4 57 , 0 8 5n , 0 8 4 77 , 9 4 n, 9 4 -S p e a l (2 ) 6. 25 , 4 4 2 25 , 4 4 25 , 4 4 2 0 51 X X T o l l - M e s s a g e (3 a ) 7. 0 0 0 -P n v a t e U n e (3 b ) 8. 0 0 0 -S e t t e m e n t (3 c ) 9. -2 2 ° -2 2 -2 2 52 X M i s e . - B i l l n g & C o l e c o n (4 ) 10 . 3, 9 4 1, 1 8 5 1, 1 8 5 2, 7 6 1 2, 7 6 1 -D i r e o r y A d v e r t i s i n g 11 . 1, 5 1 5 0 1, 5 1 5 1, 5 1 5 -O p e r a t i n g R e n t s 12 . 0 0 0 -o h e r M i s c . 13 . 3, 6 0 0 0 3, 6 0 3, 0 0 53 0 X L e s : U n c o l l e c i b e R e v . ( - ) 14 . -2 , 0 9 5 0 0 0 -2 , 0 9 5 -2 , 0 9 5 To t a l R e v e n u e s 15 . 81 9 , 1 4 5 60 5 , 1 4 7 25 , 63 0 , 5 8 9 80 , 6 7 9 0 0 10 7 , 8 7 7 18 8 , 5 5 6 Op e r a t i n g E x p e n s e s 61 X X - 6 X X P l a n t S p e f i c O p e r . (5 8 ) 16 . 29 , 0 7 0 10 3 , 3 5 8 28 , 3 7 1 13 1 , 7 2 9 51 , 9 9 8 71 9 0 11 0 , 6 2 4 16 3 , 3 4 1 65 X X P l a n t N o n s p e f i c O p e r a t i o n s (5 a ) 17 . 45 , 0 5 5 14 , 4 7 9 3, 2 2 4 17 , 7 0 3 8, 8 0 0 12 2 0 18 , 4 3 27 , 3 5 2 65 6 X D e p r e a t i o n & A m r t z a t i o n (5 8 ) 18 . 16 2 , 4 0 2 57 , 2 6 1 19 , 7 2 6 76 , 9 8 7 27 , 0 9 2 37 4 0 57 , 9 4 85 , 4 1 5 66 X X C u s t o m e r O p e r a t i o n s (5 8 ) 19 . 57 , 6 2 6 24 , 4 0 0 24 , 4 0 17 , 9 7 0 98 0 15 , 1 5 4 33 , 2 2 67 X X C o r p r a t e O p e r a t i o n s (5 8 ) 20 . 19 0 , 2 2 9 71 , 9 6 1 15 , 1 4 0 87 , 1 0 1 37 , 0 3 9 42 5 0 65 , 6 6 4 10 3 , 1 2 8 - O t h e r O p e r a t i n g (5 a ) 21 . 6, 9 5 8 6, 9 5 8 0 6, 9 5 8 0 0 0 0 0 To t a l E x p e n s e s (5 8 ) 22 . 75 7 , 3 27 8 , 4 2 1 66 , 4 6 1 34 , 8 8 2 14 2 , 8 9 9 1, 7 3 8 0 26 7 , 8 2 1 41 2 , 4 5 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 . 13 , 2 0 9 4, 1 6 6 90 2 5, 0 6 8 2, 9 5 5 34 0 5, 1 5 2 8, 1 4 1 72 3 0 S t a t e I o c l l n c . T a x ( C u r r n t ) 24 . 1, 5 1 1 20 , 7 0 8 -2 , 9 0 8 17 , 8 0 0 -4 , 6 1 3 -1 2 1 0 -1 1 , 5 5 -1 6 , 2 8 8 72 2 0 F e d e r a l In c T a x ( C u r r n t ) 25 . 79 , 1 1 8 10 2 , 5 6 5 0 10 2 , 5 6 5 -2 2 , 8 4 -6 1 0 0 -2 3 , 4 4 7 72 5 0 N e t D e e r r 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 i t s 27 . 0 0 0 0 0 0 0 0 To t a l Ta x e s 28 . 93 , 8 3 9 12 7 , 4 8 -2 , 0 0 6 12 5 , 4 2 -2 4 , 5 0 4 -6 6 8 0 -6 , 4 2 -3 1 , 5 9 Ne t O p e r a t i n g I n c o m e 29 . -3 2 , 0 3 4 19 9 , 2 8 8 -3 9 , 0 1 3 16 0 , 2 7 5 -3 7 , 7 1 6 -1 , 0 5 0 0 -1 5 3 , 5 4 2 -1 9 2 , 3 0 8 IN L A D T E L E P H O N E C O M P A N - C o n f i d e n t i a l 41 0 1 0 Pa 1 Pr o p r i r y a n d C o f i d e 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 9 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 e O p e r a t i o n In t r a 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 t c h e d Sp e c i a l Sw t c e d Sp e c a l Lo l De s c r i p t i o n No . No . Se p a r a t i o n s Ac s s Ac c s s To t a l Ac c s s Ac c 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 B a s e 20 0 1 T e l e c m . P l a n t i n S e r v i c e (5 b ) 1. 3, 1 9 6 , 4 5 1, 0 2 7 , 2 2 7 22 8 , 7 3 6 1, 2 5 5 , 9 6 3 62 4 , 3 2 2 8, 7 1 5 0 1, 3 0 7 , 4 5 1, 9 4 0 , 4 9 1 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 m u l a t e d D e p r . ( - ) (5 c ) 3. -1 , 8 3 2 , 2 5 0 -5 6 2 , 7 2 9 -1 1 7 , 5 0 5 -6 8 0 , 2 3 4 -3 7 2 , 2 0 2 -5 , 2 2 0 0 -n 4 , 5 9 4 - 1 , 1 5 2 , 0 1 6 34 x x - 3 6 x x A c m u l a t e d A m o r . ( - ) (5 ) 4. 0 0 0 0 0 0 0 0 0 41 0 0 - 4 3 4 0 A c m . D e e r r e T a x ( - ) 5. -1 8 1 , 3 7 9 -5 9 , 0 0 4 -1 2 , 7 8 7 -7 1 , 7 9 1 -3 5 , 8 7 9 -4 9 -7 3 , 2 1 0 -1 0 9 , 5 8 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 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 8. 25 , 3 6 6 9, 4 1 4 1, 9 9 11 , 4 1 3 13 , 9 5 3 13 , 9 5 3 To t a l A v e r a g e R a t e B a s e 9. 1, 2 0 , 1 9 1 41 4 , 9 0 8 10 0 , 4 4 51 5 , 3 5 1 21 6 , 2 4 1 2, 9 9 6 0 47 3 , 6 0 3 69 2 , 8 4 0 IN L A D T E L E P H O N E C O M P A N Y . C o n f d e n t i 41 0 1 0 Pa g e 2 Pr p r i e t 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 e a r E n d e d : D e c m b e r 3 1 , 2 0 0 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 e O p e r a t i o n In t r a 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 To Sw i t c h e d Sp e c i a l Sw 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 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 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. 53 7 , 7 2 3 17 2 , 8 0 5 38 , 4 7 9 21 1 , 2 8 4 10 5 , 0 2 7 1, 4 6 0 21 9 , 9 4 6 32 6 , 4 3 22 C e n t r a l O f 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 e . ) 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 a c a l S w t c h i n g 5. 36 9 , 5 4 30 1 , 0 4 30 1 , 0 4 8 13 , 0 6 4 55 , 4 2 68 , 4 9 6 CA T 4 . 1 2 - E x c h . T r u n k ( J o i n t U s e ) 6. 10 , 0 1 9 0 10 , 0 1 9 10 . 0 1 9 CA T 4 . 1 2 - E x c h . T r u n k ( O e . U s e ) 7. 15 0 , 7 4 6 15 0 , 7 4 6 15 0 , 7 4 6 0 0 CA T 4 . 1 3 - S u b s . L i n e ( J o i n t U s e ) 8. 13 0 , 3 9 0 32 , 5 0 6 32 , 5 0 32 5 0 6 36 6 65 , 0 1 2 97 , 8 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 . 15 , 7 5 8 10 , 0 0 91 4 10 , 9 1 4 4, 6 1 6 22 0 4, 8 4 CA T 4 . 2 3 - i X T r u n k C k t . ( O e . U s e ) 11 . 3, 3 4 3, 3 4 3, 3 4 0 CA T 4 . 3 - H o 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 9 , 7 9 7 34 , 5 5 4 15 5 , 0 0 0 49 8 , 5 5 50 , 1 8 6 59 4 0 13 0 , 4 6 18 1 , 2 4 23 X X I n f o r m a t i o n O r l 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 C P E 15 . 0 0 0 Oth e r lO 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 b e r L i n e ( C o m m o n ) 18 . 1, 7 4 2 , 3 0 3 43 5 , 5 7 6 43 5 , 5 7 6 43 5 , 5 7 6 0 87 1 , 1 5 1 1. 3 0 , 7 2 7 CA T 1 . 1 , 2 - S u b s r i b e r L i n e ( D e d . ) 19 . 4, 9 0 8 0 4, 9 0 8 4, 9 0 8 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 . U s e ) 21 . 11 1 , 9 2 7 27 , 9 8 2 27 , 9 8 2 83 , 9 4 5 83 , 9 4 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 1, 7 3 34 , 3 3 7 CA T 3 - I X T r u n k ( O e . U s e ) 23 . 0 0 0 CA T 4 - H o s t l 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 I C & W F 26 . 1, 9 7 4 , 1 7 0 50 9 , 3 3 7 34 , 9 1 6 54 , 2 5 3 46 , 1 7 9 6, 6 4 0 95 5 , 0 9 1 , 4 , 9 1 7 26 X O t e r A s s e t s : Ca p i l L e a s e s 27 . 0 0 0 Le 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 g i b l e s 29 . 4, 7 6 4 1, 5 3 1 34 1 1, 8 7 2 93 0 13 1, 9 4 2, 8 9 2 To t a l O t e r A s s e 30 . 4, 7 6 4 1, 5 3 1 34 1 1, 8 7 2 93 0 13 0 1, 9 4 9 2, 8 9 2 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 (S b ) 31 . 3, 1 9 6 , 4 5 4 1, 0 2 7 , 2 7 22 8 , 7 3 6 1, 2 5 5 , 9 6 3 62 , 3 2 2 8, 7 1 5 0 1, 3 0 7 , 4 5 1 , 9 4 , 4 9 1 IN L A D T E L E P H O N E C O M P A N Y - C o n f d e n t i a l 41 1 2 1 0 Pa g e 3 I Pr p r i y a n d C o f i d e t i a l FO R M I IN P U T M A S T E R CO M P A N Y NA 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 m b e r 3 1 , 2 0 0 9 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 e O p e r a t i o n In t r a s t a t e O p e r a 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 Un e Su b j e c t To Sw i t c h e d Sp e a l Sw i t c 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 s s Ac c 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 o n Ac c m u l a t e d D e 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. -2 8 5 , 8 2 0 -9 1 , 8 5 2 -2 0 , 4 5 3 -1 1 2 , 3 0 5 -5 5 , 8 2 6 .7 7 9 -1 1 6 , 9 1 0 -1 7 3 , 5 1 5 31 2 X C e n t r a l O f c e S w i t c h i n g 2. -1 6 1 , 8 9 2 -1 3 1 , 8 8 5 -1 3 1 , 8 8 5 -5 , 7 2 3 -2 4 , 2 8 -3 , 0 0 7 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 c e T r a n s m i s s i o n 4. -1 5 0 , 5 7 9 -2 0 , 6 3 0 -7 5 , 2 2 -9 5 , 8 5 8 -1 8 , 0 1 7 -2 8 9 -3 6 , 4 1 5 -5 4 , 7 2 1 31 3 X I n f o r m t i o n O n g . / T e r r . 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 , 2 3 3 , 9 5 9 -3 1 8 , 3 6 2 -2 1 , 8 2 4 -3 4 , 1 8 6 -2 9 2 , 6 3 6 -4 , 1 5 2 -5 9 6 , 9 8 5 -8 9 3 , 7 7 3 To t a l A c c u m u l a t e d D e p r e i a t i o n (5 c ) 7. -1 , 8 3 2 , 2 5 0 -5 6 2 , 7 2 9 -1 1 7 , 5 0 5 -6 0 , 2 3 -3 7 2 , 2 0 2 -5 , 2 2 0 0 -7 7 4 , 5 9 4 - 1 , 1 5 2 , 0 1 6 Ac c u m u l a t A m o r t z a t i o n D e t 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 I n t a n g i b l e s 10 . 0 0 0 36 0 0 A c 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 . 0 0 0 0 0 0 0 0 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 d e n t i a l 4/ 6 1 0 1 0 Pa g e 4 ~ Pr o p r i e t r y a n d C o 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 m b e r 3 1 , 2 0 0 9 Se p e r a t e d R e s u l t 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 e O p e r a t i o n In t r a s t a 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 To Sw i t c e d Sp e c i a l Sw i t c h e d Sp e c a l Lo l De s c i p t i o n No . No . Se p a r a t i o n s Ac c s s Ac c s s To t a l Ac c 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 E N S E D E T A I L 61 X X - 6 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. 72 , 6 2 8 23 , 3 4 0 5, 1 9 8 28 , 5 3 8 14 , 1 8 5 19 8 29 , 7 0 7 44 , 0 9 0 62 1 X Ce n t r l O f c e S w i t c h i n g 2. 57 , 4 2 2 29 , 0 2 0 13 , 0 9 3 42 , 1 1 3 4, 2 3 9 50 11 , 0 2 0 15 , 3 0 9 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 c e T r a n s m i s s i o n 4. 34 , 0 5 0 17 , 2 0 8 7, 7 6 4 24 , 9 7 2 2, 5 1 4 30 6, 5 3 9, 0 7 8 63 X X In f o r m t i o n O r i g . / T e n n . 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 0 , 9 7 0 33 , 7 9 0 2, 3 1 6 36 , 1 0 6 31 , 0 6 0 44 1 63 , 3 6 3 94 , 8 6 4 To t a l P l a n t S p e i f i c (s a ) 7. 29 5 , 0 7 0 10 3 , 3 5 8 28 , 3 7 1 13 1 , 7 2 9 51 , 9 9 71 9 0 11 0 , 6 2 4 16 3 , 3 4 1 65 X P l a n t N o n s p e i f 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. 16 6 53 12 65 32 69 10 1 65 3 X Ne t w o r k O p e r a t i o n s 9. 44 . 8 8 9 14 , 4 2 6 3, 2 1 2 17 , 6 3 8 8, 7 6 8 12 2 18 , 3 6 1 27 , 2 5 1 65 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 c (s a ) 11 . 45 , 0 5 5 14 , 4 7 9 3, 2 2 4 17 , 7 0 3 8, 8 0 0 12 2 0 18 , 4 3 0 27 , 3 5 2 65 6 D e p r e i a t i o n & A m o r t z a t i o n (8 ) 65 6 1 Ge n e r l S u p p o F a c i l i t i e s 12 . 15 . 9 0 1 5, 1 1 0 1, 1 3 8 6, 2 4 8 3, 1 0 6 43 6, 5 0 9. 6 5 3 65 6 1 Ce n t r a l O f c e S w i c h i n g 13 . 33 . 2 6 7 27 , 1 0 1 27 , 1 0 1 1, 1 7 6 4, 9 9 0 6. 1 6 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 c e T r a n s m i s s i o n 15 . 34 , 4 1 6 4, 7 1 5 17 , 1 9 4 21 , 9 0 9 4, 1 1 8 66 8, 3 2 3 12 . 5 0 7 65 6 1 in f o r m t i o n O r i g . / T e r m . E q u i p . 16 . 0 0 0 65 1 Ca b l e & W i r e F a c i l i t i e s 17 . 78 , 8 1 8 20 , 3 3 5 1, 3 9 4 21 , 7 2 9 18 , 6 9 2 26 5 38 , 1 3 2 57 , 0 8 9 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 In t a n g i b l e s 20 . 0 0 0 65 6 5 Ac u i s i t i o n A d j u s t m n t 21 . 0 0 0 To t a l D e p r e i a t i o n & A m o r t i z a t i o n (s a ) 22 . 16 2 , 4 0 2 57 , 2 6 1 19 , 7 2 6 76 , 9 8 7 27 , 0 9 2 37 4 0 57 , 9 4 9 85 , 4 1 5 IN L A 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 41 6 1 0 1 0 Pa g e 5 r , . Pr p r i e t 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 ç e m b e r 3 1 , 2 0 0 9 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 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 - I n t r 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 To Sw t c h e d Sp e i a l Sw h e d Sp e c i a l Lo c a l De s c r p t i o n No . No . Se p a r a t i o n s Ac s Ac c s s To t a l Ac c 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. 5, 9 8 6 3, 8 0 0 3, 8 0 0 2, 0 8 8 98 2, 1 8 6 66 2 X Op e 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, 7 1 6 65 65 8 29 1, 7 6 5 2, 0 5 8 66 2 X Di r e 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 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, 9 9 5 2, 8 7 3 2, 8 7 3 1, 9 9 7 5, 1 2 5 7, 1 2 2 66 2 3 Pa y m e n t & C o l l e c n - E n d U s e r 7. 8, 1 4 5 3, 3 2 7 3, 3 2 7 1, 7 0 6 3, 1 1 2 4, 8 1 8 66 2 3 Bi l l i n g I n q u i r y - E n d U s e r 8. 3, 1 5 9 1, 8 6 4 1, 8 6 4 1, 2 9 5 0 1, 2 9 5 66 2 3 Se r v i c e O r d 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 i o n - C X R 10 . 0 0 , 0 66 2 3 Bi l l 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 g . - T o l l T i c k e t P r o . 13 . 38 20 20 18 0 18 66 2 3 Re v . A c g . - L o c l M e s s . P r o . 14 . 0 0 0 66 2 3 Re v . A c g . - O t h e r B i l & C o i L . 15 . 4, 8 4 1 1,4 3 1 1, 4 3 1 1, 6 1 4 1, 7 9 6 3, 4 1 0 66 2 3 Re v . A c g . - S L C B i l l n g 16 . 25 5 25 5 25 5 0 66 2 3 Re v . A c g . - C X R B & C (9 ) 17 . 8, 4 4 4, 2 2 0 4, 2 2 0 4, 2 2 0 4, 2 2 0 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 e r C u s t o m e r S e r v i c e 19 . 14 , 0 5 1 5, 9 5 6 5, 9 5 6 4, 7 3 9 3, 3 5 6 8, 0 9 5 To t a l C u ~ m e r O p e r a t i o n s (5 a ) 20 . 57 , 6 2 6 24 4 0 0 24 , 4 0 4 17 , 9 7 0 98 0 15 , 1 5 4 33 , 2 2 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 t i v e & P l a n n i n g 21 . 30 , 8 3 6 11 , 2 7 8 2, 5 0 13 , 7 8 2 6, 1 2 5 70 10 , 8 5 9 17 , 0 5 4 67 2 X Ge n e r l & A d m i n i s t t i v e 22 . 15 9 , 3 9 3 60 , 6 8 3 12 , 6 3 6 73 , 3 1 9 30 , 9 1 4 35 5 54 , 8 0 5 86 , 0 7 4 67 2 8 EA S S e t t l e m e n t E x n s e 23 . 0 0 0 To t a l C o r p o r a O p e r a t i o n s (s a ) 24 . 19 0 , 2 2 9 71 , 9 6 1 15 , 1 4 0 87 , 1 0 1 37 , 0 3 9 42 5 0 65 , 6 6 10 3 , 1 2 8 - O t e r O p e r a t i n g E x p e n s e : - Eq u a l A c s s P r o v i s i o n (1 0 ) 25 . 0 0 0 - Un i v e r l S e r v i c e F u n d (1 1 ) 26 . 6, 9 5 8 6, 9 5 6, 9 5 8 0 - Li f e l i n e C o n n e c i o n A s s i s t a n c e (1 2 ) 27 . 0 0 0 To t a l Ot e r (s a ) 28 . 6, 9 5 8 6, 9 5 8 0 6, 9 5 8 0 0 0 0 0 To t a l O p e r a t i n g E x p e n s e s (s a ) 29 . 75 7 , 3 4 0 27 8 , 4 2 1 66 , 4 6 1 34 , 8 8 2 14 2 , 8 9 9 1, 7 3 0 26 7 , 8 2 1 41 2 , 4 5 IN L A 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 41 6 1 1 0 Pa g e 6 .. Pt p r i r y a n d C o 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 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 9 Se p e r a 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 e O p e r a o n In t r a t a e O p e r a 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 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 s s Ac c e 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 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 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 Fe e 3. 61 1 11 7 11 7 49 49 4 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. 12 , 5 9 8 4, 0 4 90 2 4, 9 5 1 2, 4 6 1 34 5, 1 5 2 7, 6 4 7 To t a l G e n e r a l T a x e s 6. 13 , 2 0 9 4, 1 6 6 90 2 5, 0 6 8 2, 9 5 5 34 0 5, 1 5 2 8, 1 4 1 72 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. 48 , 5 9 32 2 , 5 6 0 -4 1 , 9 2 1 28 0 , 6 3 9 -6 5 , 1 7 5 -1 , 7 7 2 0 -1 6 5 , 0 9 6 -2 3 2 , 0 4 3 Le s s F i x e d C h a r g e s ( - ) 8. 25 , 6 9 8 8, 8 1 0 2, 1 3 9 10 , 9 4 9 4, 7 1 2 65 9, 9 7 2 14 , 7 4 9 Su b t o t a l ( l i n e s 7 - 1 ) (1 4 ) 9. . 2 2 , 8 9 8 31 3 , 7 5 0 -4 , 0 6 0 26 9 , 6 9 0 -6 9 , 8 8 7 -1 , 8 3 7 0 -1 7 5 , 0 6 8 -2 4 6 , 7 9 2 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 . 22 , 8 9 8 31 3 , 7 5 0 -4 , 0 6 0 26 9 , 6 9 -6 9 , 8 8 7 -1 , 8 3 7 0 -1 7 5 , 0 6 -2 4 6 , 7 9 2 72 3 0 S I T - C u r r e n t ( a t 6 . 6 % ) (1 6 ) 12 . 1, 5 1 1 20 , 7 0 8 -2 , 9 0 8 17 , 8 0 0 -4 , 6 1 3 -1 2 1 0 -1 1 , 5 5 -1 6 , 2 8 8 Ot h e r F I T B a s e A 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 . 21 , 3 8 7 29 3 , 0 4 0 25 1 , 8 9 0 -6 5 , 2 7 4 -1 , 7 1 6 0 0 -6 , 9 9 Gr o s s F I T 15 . 79 , 1 1 8 10 2 , 5 6 5 0 10 2 , 5 6 5 -2 2 , 8 4 -6 1 0 0 -2 3 , 4 4 7 72 1 0 P C l a i m e I T C ( - ) 16 . 0 0 0 0 0 0 0 0 0 Su r t 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 n t ( l i n e s 1 5 - 1 6 - 1 7 ) (1 8 ) 18 . 79 , 1 1 8 10 2 , 5 6 5 0 10 2 , 5 6 -2 2 8 4 -6 0 1 0 0 -2 3 , 4 4 7 IN L A 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 41 6 1 1 0 Pa g e 7 ;, . . Pt r l e t r y a n d C o ß d e n t i 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 m b e r 3 1 , 2 0 0 9 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 t a t e O p e r a t i o n In t r a s t a t O p e r a i o n Op e r a 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 To Sw i t c e d Sp e a l Sw i t c h e d Sp e c i a l Lo c a l De s c p t i o n No . No . Se p a r a t i o n s Ac c Ac c s s To t a l Ac c s Ac 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 9 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 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 s t 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 e t T o In t e r s t a t e In t r s t 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 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 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 9 0. 6 4 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 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 i t e S P F (2 0 ) 5. 1. 0 0 0 0 0 0. 2 5 0 0 0 0. 2 5 0 0 0 0. 5 0 0 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 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 8 7 1 9 Cu r r 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 n t C o m p o 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 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 t / 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 s M O U (2 4 ) 12 . 0 Op e r a 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 t i o n M O U 15 . 1, 6 2 5 , 7 8 9 1, 1 1 2 , 3 4 51 3 , 4 iX C o n v e r s 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 , 7 9 6 5, 3 1 8 , 9 9 0 Ot h e r P a r a m e t e r s Ac c s s L i n e s 17 . 33 8 Un s e p a t e d L o o p C o s t ~ 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 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 o n E n d U s e (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 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 . - 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 X R (2 9 b ) 23 . 0 Bi l i n g I n q u i r y C o n t a -B i l l n g I n q u i r y - E n d U s e (3 0 a ) 24 . 38 0 22 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 g e s (3 1 ) 26 . 10 0 , 6 8 0 54 , 2 8 6 46 , 3 9 4 EA S l L o c M e s s a g e s ( M s g . P r o . ) 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 , 9 8 90 , 8 6 5 56 , 6 9 3 96 , 4 2 6 -P L S & S p e a l A c c 29 . 1, 6 2 3 1, 6 2 Op e r a t o r S e r v s E x p e n s e - F a c t o r 30 . 0 Ac M i n u t e s o f U s e ( E n d O f c e ) 31 . 0 IN L A 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 4l 1 0 Pa g e 8