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HomeMy WebLinkAbout2003Annual Report.pdfytJr,.. t""'CEI /ED' L. " " I \L .~, ! ' J !L. (fJ "'01 ","'1\ \1 L ' . y '., UU4 rIA T '~ fJ . ,* ' AL REP(1R!if's,ON MI DV ALE TELEPHONE -EXCHANGE I NC NAME P. O. BOX 7 , MID",ALE , IDAHO 83645 ADDRESS TO- TH E IDAHO PUBLIC UTiliTIES COMMISSION FOR THE YEAR ENDED DECEMBER 31 , 2003 ... ANNUAL REPORT OF SMAll TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTiliTIES COMMISSION FOR THE YEAR ENDING DECEMBER 31 , 2003 COMPANY INFORMATION Exact name of utility: MIDV ALE TELEPHONE EXCHANGE, INC. Address of principal office: O. BOX 7, MIDVALE, IDAHO 83645 Telephone Number (Area Code 208) 355-2211 Cities or towns served: MIDVALE, LAKEVIEW, WARREN, YELLOW PINE, WARM LAKE AND STANLEY IDAHO; HARPER AND JUATURA, OREGON; CASCABEL, YOUNG, SIL VERBELL GRANITE MOUNTAIN, AND MILLSITE, ARIZONA Name and title of officer having custody of the general corporate books of account: LANE R. WILLIAMS Address of office where corporate books are kept and phone number: O. BOX 7, MIDVALE, IDAHO 83645 208-355-2211 Organized under the laws of the State of: IDAHO Date of organ ization: 9-Jan-08 Form of organization (proprietorship, association , corporation): If a Subchapter S Corporation , please specify: N/A Name and address of controlling company, if any: N/A CORPORATION Names of affiliated companies. Give address and description of business: M&L ENTERPRISES, INC., dba SKYLINE TELEPHONE COMPANY, P.O. BOX 7, MIDVALE, IDAHO 83645. CLEC IN STATE OF WASHINGTON OFFICERS Report below the title, name and office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title, and address of the previous officer and the date of change. Title Name Address PRESIDENT SECITREAS LANE R. WILLIAMS MARY G. WILLIAMS (deceased 8/16/03) SHIRLEY ARCHER O. BOX 7, MIDVALE, IDAHO 83645 O. BOX 7, MIDVALE, IDAHO 83646 VICE PRES./SECITREAS O. BOX 7, MIDV ALE, IDAHO 83647 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 year: (Fees related to meetings only. Name and Address Term Expired or Current Term Will Expire Meetings Attended This year Fees Paid During Year LANE R. WILLIAMS MARY G. WILLIAMS SHIRLEY ARCHER O. BOX 7, MIDVALE, IDAHO 83645 ALL ALL NONE NONE NONE Name of Chairman of the Board: Name of Secretary (or Clerk) of Board: Number of Meetings of the Board during the year: LANE R. WILLIAMS SHIRLEY ARCHER TWO MANAGERS List the name of each person who performed management duties for the Company during the year, and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts. Name Title Wages and Bonuses Paid Lane R. Williams Mary G. Williams Shirley C. Archer John Stuart Karen Williams Bruce Goslovich President Sec./Treasurer Vice Pres./Sec./Treas. Ass. Manager Ass. Manager Controller 69,915 33,125 245 76,491 60,574 59,417 Rev 3/02 Page 2 NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices, extensions or additions to the system; disposal of any substantial portion of the property of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. The Company has adopted SFAS 142 as of January 1 , 2002. The result of this adoption has resulted in the restatment of Goodwill in the amount of $1 017 239 and the reduction of the amount reflected as Telephone Plant Adjustment. Retained earnings for ~eriods have been increased net of deferred tax by ~115,259. Rev 3/02 Page 3 1120 1130 1140 1150 1160 1180 1181 1190 1191 1200 1201 1210 1220 1280 1290 1300 1310 1320 1330 1350 1401 1402 1406 1407 1408 1410 1438 1439 1500 2001 2002 2003 2004 2005 2006 2007 3100 3200 3300 3400 3410 3420 3500 3600 Rev 3/02 BALANCE SHEET Assets and Other Debits TOT AL ASSETS Balance Beginning of Year 328,780 69,508 940,600 99,275 50,761 601 911 591 608 580,259 18,273,075 011 784 65,599 017 240 (10,532 038) $ 14 098,362 Balance at End of Year 126,484 71,170 887 343 35,550 89,574 30,480 601 911 643,308 687 646 166,881 268,257 767 012 40,493 017 240 (11 685,019) $15,748,330 Page 4 Increase (Decrease) ($202 296) 662 (53,257) 35,550 (9,701 ) (20,281 ) 700 687 646 (413,378) 995,182 244 772) (25,106) 152 981) 649,968 Title of Account Current Assets Cash and Equivalents Cash Special Cash Deposits Working Cash Advances Temporary Investments Telecommunications Accts. Receivable Accts. Rec. Allow. -Telecommunications Other Accounts Receivable Accounts Receivable Allow. - Other Notes Receivable Notes Receivable Allowance Interest & Dividends Receivable Material and Supplies Prepayments Prepaid Rents Prepaid Taxes Prepaid Insurance Prepaid Directory Expenses Other Prepayments Other Current Assets Noncurrent Assets Investment in Affiliated Companies Investment in Nonaffiliated Companies Nonregulated Investments Unamortized Debt Issuance Expense Sinking Funds Other Noncurrent Assets Deferred Maintenance & Retirements Deferred Charges Other Jurisdiction Assets - Net Property, Plant and Equipment Telecommunications Plants in Service Prop. Held for Future Telecom. Use Telecom. Plant under Constr. - Short Term Telecom. Plant under Constr. - Long Term Telecom. Plant Adjustment Nonoperating Plant Goodwill Depreciation and Amortization Accounts Accumulated Depreciation Accum. Depre. - Held for Future Use Accumulated Depreciation - Nonoperating Accumulated Amortization - Tangible Accum. Amort. - Capitalized Leases Accum. Amort. - Leasehold Improvements Accumulated Amortization - Intangible Accumulated Amortization - Other BALANCE SHEET Liabilities & Stockholders' Equity Balance Balance Increase Beginning at End Title of Account of Year of Year (Decrease) Current Liabilities 4010 Accounts Payable 730,445 572,451 (157 994) 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 200 790 590 4050 Current Maturities - Long -Term Debt 542,369 809,313 266,944 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 208 20,376 (73,832) 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilities 53,731 20,418 (33,313) Long-Term Debt 4210 Funded Debt 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated Companies 4270 Other Long-Term Debt 198,913 10,240,568 041 655 Other Liabilities & Deferred Credits 4310 Other Long-Term Liabilities 4320 Unamort. Oper. Invest. Tax Credits - Net 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 880,382 073,176 192 794 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 451 0 Capital Stock 25,000 25,000 4520 Additional Paid-In Capital 910 910 4530 Treasury Stock (64 000)(64 000) 4540 Other Capital 4550 Retained Earnings 628,204 040,328 412 124 TOTAL LlAB. & OTHER CREDITS 098,362 15,748,330 649,968 Rev 3/02 Page 5 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Y e a r Du r i n g y e a r or S o l d Ad j u s t m e n t s of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 1 0 1 80 5 5 , 60 0 1 0 7 40 5 21 1 2 Mo t o r V e h i c l e s 5 4 0 39 7 1 54 1 ( 3 7 05 5 ) 5 0 4 88 3 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 6 7 9 , 77 0 6 7 9 , 77 0 21 2 1 Bu i l d i n g s 7 8 9 , 29 9 5 4 95 4 8 4 4 25 3 21 2 2 Fu r n i t u r e 6 6 69 3 2 61 5 6 9 , 30 8 21 2 3 Of f i c e E q u i p m e n t 3 34 8 3 , 34 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 3 4 5 , 69 1 28 , 4 8 9 3 7 4 18 0 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 2 80 2 85 0 1 35 5 , 66 6 ( 1 8 7 97 4 ) 3 , 97 0 54 2 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 4 07 0 , 38 7 6 8 3 32 1 4 75 3 , 70 8 23 1 1 St a t i o n A p p a r a t u s 2 7 23 2 2 7 23 2 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 3 6 , 18 7 3 6 , 18 7 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 8 , 80 9 , 41 5 2 11 7 , 55 3 ( 2 9 52 7 ) 1 0 , 89 7 , 4 4 1 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S 18 , 27 3 , 07 4 4 24 9 , 73 9 ( 2 5 4 55 6 0 2 2 26 8 , 25 7 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 i n S e r v i c e 21 1 1 La n d 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S Re v 3 / 0 2 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 Ba l a n c e Be g i n n i n g of Y e a r 36 1 48 6 , 75 5 57 0 88 6 75 9 , 56 9 19 4 34 8 32 8 76 2 1 , 99 8 62 3 93 1 46 3 23 2 39 9 11 1 , 64 9 13 , 38 9 , 24 1 Ad d i t i o n s Du r i n g Y e a r 61 4 19 , 4 1 5 50 0 32 0 10 4 84 9 Pl a n t Re t i r e d or S o l d (2 2 05 8 ) (2 2 05 8 ) Pa g e 7 Tr a n s f e r s an d Ad j u s t m e n t s Ba l a n c e En d of Y e a r 36 1 46 4 69 7 57 0 , 88 6 75 9 , 56 9 80 8 34 8 34 8 , 17 7 1 , 99 8 , 62 3 97 4 96 3 27 , 23 2 39 9 15 0 96 9 13 , 47 2 03 2 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 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 Mo t o r V e h i c l e s 39 8 , 09 3 53 , 60 7 (3 6 , 05 8 ) 41 5 , 64 2 21 1 3 Ai r c r a f t VA R 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 37 9 , 4 2 7 69 , 32 9 44 8 , 75 6 21 2 1 Bu i l d i n g s 24 8 , 77 0 88 9 27 3 , 65 9 21 2 2 Fu r n i t u r e 52 , 4 8 1 62 4 56 , 10 5 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 23 6 , 25 6 23 5 27 9 , 4 9 1 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 17 1 05 6 29 8 , 66 8 (1 7 6 , 30 0 ) 29 3 , 4 2 4 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 75 6 , 25 5 39 5 , 95 2 15 2 20 7 23 1 1 St a t i o n A p p a r a t u s 16 , 79 7 16 , 79 7 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 36 , 18 6 36 , 18 6 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 23 6 , 71 8 50 5 , 56 2 (2 9 , 52 7 ) 71 2 75 3 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s TO T A L 10 , 53 2 03 9 1 , 39 4 86 6 (2 4 1 , 88 5 ) 68 5 , 02 0 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 Pa g e 8 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 ID A H O O p e r a t i o n s O n l y Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j us t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 Mo t o r V e h i c l e s 35 6 85 6 25 % 48 , 92 5 (2 2 06 0 ) 38 3 , 72 1 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 G a r a g e Wo r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 34 2 , 4 7 2 20 % 94 8 39 4 42 0 21 2 1 Bu i l d i n g s 23 4 92 4 23 , 03 3 25 7 95 7 21 2 2 Fu r n i t u r e 48 , 62 8 14 % 62 3 25 1 21 2 3 Of f i c e E q u i p m e n t 34 8 14 % 34 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 22 5 , 4 9 6 20 % 40 , 63 4 26 6 , 13 0 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 71 9 , 63 0 13 % 16 0 , 96 4 88 0 , 59 4 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 98 5 , 31 7 10 % 27 0 , 36 0 25 5 , 67 7 23 1 1 St a t i o n A p p a r a t u s 16 , 79 7 16 , 79 7 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 39 9 39 9 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 95 0 , 68 9 33 3 , 66 5 28 4 35 4 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s TO T A L 91 1 55 6 93 3 , 15 2 06 0 82 2 64 8 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 Pa g e 9 INVESTMENTS Report below the investments in Accounts 1401 , 1402 and 1406. Identify each investment as to the account in which included. Minor amounts in Account 1406 may be grouped by classes. 996 Book Cost of Investments Held at d of Year 000 000 199 000 459,252 643,308 601 911 30,127 932 865 Description Idaho Company Radio Shack Franchise RTFC Date AcQuired Book Cost of Investments Disposed of This year Western T eledata PCS Syrin9a Networks , LLC Note Receivable Rural Network Services Investment in M & L Enterprises, Inc. Net Non-re9ulated Cable TV and Internet plant Totals 996 RECEIVABLES Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Various carriers for access charg M & L Enterprises,Inc. Other Miscellanou Totals Amount at End of YearNotes Accountseceivable Receivable 769 30,197 71 ,170 301,081 80,458 174,449 73,939 994 063 Name of Company NECA Idaho Universal Fund Telecommunications accounts receivable Rural Network Services, Inc. Rev 3/02 Page 1 0 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor Interest RateDate of Note Due Date Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100. Name of Creditor SEE SUPPLEMENTAL SHEET Misc less than $100 Totals Rev 3/02 Page 11 Face Amount Amount 567,496 955 572,451 Midvale Telephone Inc, IPUC REPORT - ACCOUNTS PAYABLE DECEMBER 31 , 2003 VEN DOR Action Chrysler Dodge Advanced Fibre Communications American Express Weiser Auto Plex Avista Utilities AZ Dept of Rev (billing & use) AZ DES AZ Public Service AZ State Compensation Bankcard Center - Zions Barnett's Propane 911 Trust Account Blooston Mordkofsky Bonner County Tax Collector Marsha Bonham Border States Electric John Whitener Cascabel Community Center Chevron Choices Education Group City of Midvale Clearinghouse Atlas No 00 Comsearch Computer Technology Inc Court State Automotive Sharon Cox Coyote Leasing Susan Crutcher Cultural & Environmental Custer County Tax Collector Custer Septic Service Lawerence Denney Vickie L Dick Karen Ellison Phillip Ellison Farmer s Supply Federal Highway Admin Ferrellgas Beth Ford, Pima County Treasurer Ann Frei Fruitland Nursery FWT Inc Givens Pursley Glenn Dick Equipment Granillo Construction Graybar Electric Co Page 11 A Total 608 (113) 976 424 101 722 180 389 848 20,321 262 105 549 161 11,210 188 898 100 262 157 111 356 930 752 360 794 18,419 955 890 207 114 169 962 531 428 749 101 194 840 894 159 942 450 086 715 16,415 Midvale Telephone Inc, IPUC REPORT - ACCOUNTS PAYABLE DECEMBER 31 , 2003 VENDOR Idaho Optic Transport Assn Idaho Power Idaho Power (poles) Idaho Transportation Dept Idaho Dept of Labor Idaho Tractor Idaho State Tax Commission Idaho State Tax Commission Idaho Universal Service Fund lIIuminet Jag Tool & Equipment Rental Jerry s Auto Pris Knuckey-Ralls Les Schwab Tire Center M & L Enterprises Malheur County Tax Management Solutions Maxim Crane Milford Engineering Moss Adams Mountain Village Resort Movaz National Cable Television NECA Services Northern Arizona Concrete Sprint North Supply OECA Ontario Diesel Service Oregon Emergency Communication Panike Auto Body Repair Piper Jaffray Power and Telephone Supply Qwest Communications Radio Shack Red Bud Supply Redcom Laboratories Regence Blue Shield Ringler Excavation Salmon River Propane Scottsdale Airpark Suites Sherman & Reilly Sluder Construction SRP Steve s Backhoe & Welding John Stuart Sulphur Springs Valley Page 11 A Total 13,764 979 334 198 1 ,453 525 239 751 101 196 842 746 380 509 863 732 917 972 72,392 775 150 549 281 100 052 (2,924) 194 711 615 844 952 654 030 199 394 75,598 40,157 493 231 120 105 653 171 520 220 540 Midvale Telephone Inc, IPUC REPORT - ACCOUNTS PAYABLE DECEMBER 31 , 2003 VENDOR Syme Electric Syringa Networks Transtector System Universal Service Admin U S Bank USDA-Forest Service Valley County Tax Collector David Vega Verizon Viking Office Products Washington County Weiser Auto Parts Western Telecommunication Ken Weyers Whitman Truss & Lumber Lane R Williams Lane Williams Chuck Wiese Treasurer ALECA Yanke Machine Shop Total Accounts Payable over $100 Page 11 A Total 525 081 034 734 16,321 623 366 140 149 159 346 314 500 118 330 25,134 246 000 227 567,496 LO N G - T E R M D E B T Ac c o u n t s 4 2 1 0 , 42 4 0 , 42 5 0 , 42 6 0 , 42 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 . Cl a s s & S e r i e s of O b l i a a t i o n RT F C Da t e Is s u e Da t e Ma t u r i t y 20 0 6 - 20 1 3 va r Ba n k o f T h e W e s t 20 0 6 20 0 6 - 20 0 7 va r Fa r m e r s & M e r c h a n t B a n k v a r RU S 20 1 4 - 20 2 7/ 1 / 2 0 1 2 va r L. a n d M . W i l l i a m s 7/ 1 / 2 0 0 2 Co y o t e L e a s i n g 6/ 1 3 / 2 0 0 3 6/ 1 3 / 2 0 0 8 Be n s o n P r o p e r t y 3/ 2 7 / 2 0 0 3 3/ 2 7 / 2 0 0 8 Re v 3 / 0 2 Fa c t Am o u n t Au t h o r i z e d Ou t s t a n d i n g Ye a r - En d 89 3 , 4 9 9 36 , 69 4 66 , 35 6 75 4 , 33 1 00 0 31 , 4 3 5 43 , 56 6 Pa g e 1 2 Pr e m i u m ! D i s c o u n t Ye a r To t a l Am o r t i z e d va r In t e r e s t f o r y e a r Ra t e Am o u n t 11 4 76 5 96 0 4, 4 0 2 va r 4, 4 2 3 2% - 40 9 , 66 6 00 0 92 3 2, 4 7 6 CAPITAL STOCK Report below the particulars called for concerning common and preferred stock at end of year designating separate series of any general class. Show totals separately for common 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. Par Value per Share Outstanding per Balance SheetShares AmountClass & Series of Stock Number of Shares Authorized COMMON 250 100 250 25,000 Rev 3/02 Page 13 INCOME & RETAINED EARNINGS STATEMENT Item 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-Net7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Property 7360 Other Nonoperating Income 7370 Special Charges7300 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-Net7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions7500 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-Net7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 3/02 337,220 266,102 1 ,071 ,118 123,740 19,864 104 051 247 655 564 780 153,441 412 124 Page 14 184 259 601 234 583,025 41 ,787 797 349,518 191 710 OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Other Local Exchange Revenue 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue - All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: 678,683 412 788 076 12,401 63,131 29,235 165,195 3,432,478 87,443 050,517 886,284 542 809 692 044 728 (153) (717) 245 139 823 638 337 220 184 259 NECA USF $ 1 150,200. To what account were they booked? # 5082 State USF $ 362 366. To what account were they booked? # 5084 Rev 3/02 Page 15 OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information Origination/Termination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE Rev 3/02 126,306 70,953 911 545,085 019 274 120 318,329 227 057 647 534 960 345,843 1 ,527 238 918,992 Page 16 Item OPERATING REVENUES Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Rev 3/02 23,494 1,419,971 ,443,465 341 736 341 736 197,449 289,059 467,155 953,663 266,102 Page 17 12,723 954 394 967 117 187 348 187,348 112 025 156,117 259,635 527 777 601 234 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 3 ( u n l e s s ot 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 : MI D V A L E Pr e f i x ( e s ) : 2 2 2 - 3 5 5 - 6 3 2 - 6 3 3 - 6 3 6 - 7 7 4 Ce n t r a l O f f i c e 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 X Ho s t Re m o t e Ty p e : RE D C O M M D X Ch e c k o n e : Di g i t a l X An a l o g - Ac c e s s L i n e C a D a c i t v De s i g n : 3 8 4 - 7 6 0 - 3 8 4 - 3 8 4 - 3 8 4 - N I A In s t a l l e d / E q u i p p e d : 1 0 0 - 3 7 5 - 7 5 - 1 0 0 - 7 5 - 7 0 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 Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Mu l t i - Li n e Pa r t y 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 . : 0 Di a l T o n e f r o m a n o t h e r C . : 0 Re s i d e n c e Si n g l e L i n e Mu l t i - Pa r t y Pa r t y 86 7 83 6 Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : N / A 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 : N / A Re v 3 / 0 2 Ch e c k o n e : El e c t r o n i c X El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : 1 , 28 8 (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . Pu b l i c T e l e p h o n e L i n e s Co m p a n y O f f i c i a l L i n e s Co m p a n y T e s t L i n e s Bu s i n e s s Mu l t i - Si n g l e L i n e Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e pa r t y Pa r t y Pa r t y Bu s i n e s s 86 7 20 7 23 4 83 6 23 3 26 8 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 : Pa g e 1 8 To t a l Re s i d e n c e & B u s i n e s s 10 1 10 4 Lo c a l E x c h a n g e 22 2 35 5 63 2 63 3 63 6 77 4 TO T A L S LO C A L C A L L S A R E N O T M E A S U R E D 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 ( Y E A R ) 20 0 3 , Av e r a g e # Lo c a l C a l l s IQ U Ca l l s O r i in a t e dJ I Q ! g ! of a l l C a r r i e r s of C u s t o m e r Nu m b e r Av g . / Av g . / Li n e s i n U s e (1 0 0 0 s ) Li n e In t r a s t a t e In t e r s t a t e To t a l Li n e N/ A 89 5 26 0 28 , 15 5 49 4 38 5 N/ A 35 5 11 3 , 83 1 16 6 , 18 6 43 2 NI A 16 2 12 7 25 , 28 9 50 6 N/ A 12 , 64 1 26 , 98 9 39 , 63 0 42 2 N/ A 87 9 1 6 8 04 7 47 3 63 0 N/ A 18 7 64 2 44 7 98 5 63 5 , 62 7 00 9 28 8 Pa g e 1 9 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31 , 2003, CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA 31.41.01.105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes Included in directory Yes Date of notification Alternate method of notification PROVIDED TO ALL NEW CUSTOMERS DURING APPLICATION PROCEDURES. Rule IDAPA 31.41.01.403. Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bill Denial/Termination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 State of Idaho ) ss County of , the undersigned of the CERTIFICATE LANE R. WILLIAMS MIDV ALE TELEPHONE EXCHANGE, INC. utility, on our oath do severally say that the foregoing return has been prepared under our direction, from the original books, papers, and records of said utility; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utility for the period covered by the return in respect to each and every matter and thing therein set forth, to the best of our knowledge, information and belief. CX~~~ (Chief Officer) ?X' (Officer in Charge of Accounts) Subscribed and Sworn to Before Me this /7 -day of Jj/) atJ , (Year) ~Ott) /JI 4hd4MA/ Notary Public My Commission expires Rev 3/02 gd k/ excel/j n elson/a nul rpts/tel an nual rp , (Year) GLENNIS BON Notary Public State of Idaho Page 21 Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - ID - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A n O N S 7/ 2 3 / 2 0 0 3 8- 1 10 1 1 RE V E N U E R E Q U I R E M E N T S U M M A R Y 1 o f 1 IN T E R S T A T I = .. . - - - - - - - - TO T A L AL L O C A n O N DE S C R I P T I O N OP E R A T I N G BA S I S IN T R A L A T A RE V E N U E R E Q U I R E M E N T S U M M A R Y NE T I N V E S T M E N T F O R S E T T L E M E N T S 25 0 96 1 NO T E A 18 3 81 3 76 0 50 4 21 0 24 1 13 4 18 4 10 7 82 4 58 3 10 2 75 6 58 0 RA T E O F R E T U R N 90 9 6 % 11 , 25 0 0 % i 1 , 25 0 0 % 11 , 25 0 0 % 11 , 25 0 0 % 90 0 0 % 90 0 0 % 90 0 0 % 90 0 0 % 90 0 0 % 90 0 0 % 90 0 0 % RE T U R N O N I N V E S T M E N T 41 5 33 3 LN 1 ' LN 2 55 8 20 4 04 8 29 4 71 , 4 0 4 91 7 36 2 50 6 60 5 10 3 63 8 AL L O W F O R F U N D S U S E D O U R C O N S T R ( N o r m a l i z e d ) S- 8 LN 3 1 NE T R E T U R N F O R S E T T L E M E N T S 41 5 33 3 LN 3 - LN 4 55 8 20 4 04 8 29 4 40 4 91 7 36 2 50 6 60 5 10 3 63 8 FE D E R A L O P E R A T I N G I N C O M E T A X (O P T I O N A L ) 45 3 LN 2 8 16 1 58 , 4 1 9 93 3 55 8 62 1 48 5 27 3 96 5 LE S S : F E D E R A L I T C A M O R T I Z A T I O N LN 2 9 NE T F E D E R A L I N C O M E T A X 78 , 4 5 3 LN 6 - LN 7 16 1 41 9 93 3 55 8 62 1 48 5 27 3 96 5 ST A T E A N D L O C A L I N C O M E T A X (O P T I O N A L ) 97 7 LN 3 3 60 5 36 4 82 2 55 7 17 4 13 6 23 1 LE S S : S T A T E I T C A M O R T I Z A n O N LN 3 0 NE T S T A T E I N C O M E T A X 97 7 LN 9 - LN 1 0 60 5 36 4 82 2 55 7 17 4 13 6 23 1 OP E R A T I N G E X P E N S E A N D T A X 56 7 99 2 LN 2 0 12 0 15 4 99 4 32 4 55 0 89 1 73 4 80 2 57 2 60 8 65 8 94 6 OT H E R A L L O W A B L E E X P E N S E S LN 2 2 + 2 3 UN C O L L E C T I B L E S 74 1 S- 8 LN 3 0 74 1 BA S I S F O R G R O S S R E C E I P T S T A X 02 3 01 4 5+ 8 + 1 1 t h r u 1 5 44 5 43 3 82 5 37 3 62 9 , 4 1 0 44 6 78 4 12 7 56 3 71 2 04 0 17 a GR O S S R E C E I P T S T A X R A T E (G R O S S U P ) 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 17 b GR O S S R E C E I P T S T A X LN 1 6 ' LN 1 7 a LE S S : B - 1 E A S C R E D I T TO T A L R E V E N U E R E Q U I R E M E N T 02 3 01 4 44 5 43 3 82 5 37 3 62 9 41 0 44 6 78 4 12 7 56 3 71 2 04 0 NO T E A : I N C L U D E S N E T T E L P L A N T F R O M S C H S - LN 3 6 L E S S A f C : s 2 0 0 6 , 20 0 7 A N D 1 4 0 2 O T H E R T H A N R T B S T O C K , .. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . - .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OP T I O N A L G R O S S U P I N C O M E T A X C A L C NE T R E T U R N F O R S E T T L E M E N T S 41 5 33 3 LN 3 55 8 20 4 04 8 29 4 71 , 4 0 4 91 7 36 2 50 6 60 5 10 3 63 8 IN T E R E S T A N D R E L A T E D I T E M S E X C L N O N - OP E R 26 3 04 1 S - LN 1 6 + 1 8 36 2 64 7 60 0 61 5 6, 7 1 2 42 1 43 2 07 5 17 6 OT H E R I N C O M E A D J U S T M E N T S 0 S - LN 2 5 + 2 6 TO T A L I N C O M E A D J U S T M E N T S 26 3 04 1 LN 2 1 + 2 2 36 2 64 7 60 0 61 5 71 2 42 1 43 2 07 5 17 6 FE D E R A L I T C A M O R T I Z A T I O N LN 2 9 FE D E R A L T A X A B L E I N C O M E 23 0 , 7 4 5 35 7 17 1 81 9 62 7 34 7 82 5 42 5 11 3 80 4 42 8 FE D E R A L I N C O M E T A X 34 , 00 % 45 3 LN 2 5 ' FI T 16 1 41 9 93 3 55 8 62 1 48 5 27 3 96 5 FE D E R A L S U R T A X A L L O C - O P E R A T I N G /S - LN 3 4 NE T F E D I N C O M E T A X B E F O R E I T C 78 , 4 5 3 LN 2 6 - LN 2 7 16 1 41 9 93 3 55 8 62 1 48 5 27 3 96 5 ST A T E I T C A M O R T I Z A T I O N LN 3 0 ST A T E T A X A B L E I N C O M E 25 2 72 2 96 3 18 8 18 4 44 8 90 4 99 9 56 1 12 4 88 0 65 9 ST A T E I N C O M E T A X 70 % 97 7 LN 3 0 ' SI T 60 5 36 4 82 2 55 7 17 4 13 6 23 1 ST A T E S U R T A X E X E M P T I O N /S - LN 3 4 NE T S T A T E I N C O M E T A X B E F O R E I T C TA X : 97 7 60 5 36 4 82 2 55 7 17 4 13 6 23 1 R: I M I M i d v a l e T e l e p h o n e E x c h a n g e l 2 0 0 2 1 2 0 0 2 C o s t S t u d y l M T E - I D I R M S I 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " (g 2 0 0 1 T e l e l n f o S y s t e m s , I n c , v 2 , 7/2 3 / 2 0 0 3 Mi d v a l e T e l e p h o n e E x c h a n g e , l n G , - ID - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 8- 2 , 1 o f 1 SU M M A R Y O F N E T T E L E P H O N E P L A N T , M & S A N D W O R K I N G C A P I T A L 1 o f 1 TO T A L AL L O C A T I O N DE S C R I P T I O N CO M P A N Y BA S I S NE T I N V E S T M E N T S U M M A R Y GE N E R A L S U P P O R T F A C I L I T I E S 21 1 0 16 5 94 0 LN 1 0 62 7 86 9 14 2 95 6 46 8 32 5 85 9 44 8 98 8 11 0 64 8 48 5 CE N T R A L O F F I C E S W I T C H I N G E Q U I P 22 1 0 79 4 96 7 S- 4 , LN 5 2 31 1 47 2 , 4 1 2 26 9 24 5 OP E R A T O R S Y S T E M S E Q U I P M E N T 22 2 0 S- 4 LN 4 1 CE N T R A L O F F I C E T R A N S E Q U I P 22 3 0 88 8 73 1 S- 4 LN 7 8 11 6 17 2 67 8 87 0 82 4 17 1 43 1 10 3 28 5 82 1 58 0 35 9 IN F O R M A T I O N O R I G / T E R M E Q U I P M E N T 23 1 0 LN 1 7 CA B L E A N D W I R E F A C I L I T I E S 24 1 0 01 4 91 5 LN 4 2 79 3 64 8 01 8 79 6 48 9 10 8 15 5 90 9 10 1 44 7 93 7 33 4 35 3 57 4 TA N G I B L E A S S E T S 26 8 0 LN 2 9 IN T A N G I B L E A S S E T S 26 9 0 LN 3 6 TO T A L P L A N T I N S E R V I C E A l C 2 0 0 1 86 4 55 3 18 7 , 84 6 16 2 , 25 0 20 7 62 2 78 1 60 4 29 0 20 0 24 6 18 0 74 6 11 9 , 44 4 85 1 , 66 2 % D I S T R I B U T I O N 10 0 , 00 0 0 % 46 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % PR O P E R T Y H E L D F O R F U T U R E U S E 20 0 2 S- 6 LN 9 PL A N T U N D E R C O N S T R U C T I O N 20 0 3 LN 1 5 RE S E R V E D F O R F U T U R E U S E XX X X S- 6 LN 2 1 TE L E P H O N E P L A N T A D J U S T M E N T 20 0 5 LN 2 7 NO N O P E R A T I N G P L A N T 20 0 6 DI R E C T GO O D W I L L 20 0 7 DI R E C T TO T A L P R O P E R T Y , P L A N T & E Q U I P M E N T 86 4 55 3 18 7 84 6 16 2 25 0 20 7 , 62 2 78 1 , 60 4 29 0 20 0 24 6 18 0 74 6 11 9 44 4 85 1 , 66 2 % D I S T R I B U T I O N 10 0 , 00 0 0 % 1. 4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % AC C U M D E P R - P L A N T I N S E R V I C E 31 0 0 31 8 08 7 LN 1 8 11 7 , 26 7 25 7 11 3 11 2 33 5 45 2 88 0 15 1 48 0 13 3 , 86 5 84 5 22 8 02 8 07 4 AC C U M D E P R E C I A T I O N - F U T U R E U S E 32 0 0 LN 1 9 AC C U M A M O R T , T A N G I B L E P R O P E R T Y 34 0 0 LN 2 3 AC C U M A M O R T - IN T A N G I B L E P R O P E R T Y 35 0 0 LN 2 4 AC C U M A M O R T - T E L P L A N T A D J 36 0 0 LN 2 5 OP E R . D E F E R R E D I N C O M E T A X , N E T VA R 39 9 39 1 LN 3 4 78 4 13 1 38 8 26 6 14 2 , 62 9 37 7 24 2 45 2 05 5 19 6 CU S T O M E R D E P O S I T S 40 4 0 75 0 /L N 9 + D I R E C T 30 1 16 2 22 5 OT H E R U T L I A B - P O S T R E T B E N E F I T S 43 1 0 LN 4 3 OT H E R D E F E R R E D C R E D I T S - N E T 43 6 0 LN 4 2 NE T T E L E P H O N E P L A N T 14 6 32 5 78 4 77 3 44 8 00 9 18 5 93 2 13 1 32 5 10 6 05 8 44 8 15 5 72 5 16 7 % D I S T R I B U T I O N 10 0 , 00 0 0 % 27 8 3 % 34 . 4 6 0 5 % 00 0 0 % 74 9 0 % 23 , 04 4 3 % 55 1 8 % 06 0 8 % 00 0 0 % 16 4 1 % 1 , 1 6 8 9 % 33 , 52 2 3 % 00 0 0 % MA T E R I A L S A N D S U P P L I E S 12 2 0 42 1 LN 3 1 34 9 60 9 46 4 77 9 81 4 53 0 51 9 29 5 IN V E S T M E N T I N N O N A F F I L I A T E D C O ' 14 0 2 LN 3 5 NO N C U R R E N T A S S E T S - P O S T R E T B E N E 14 1 0 LN 3 6 EQ U A L A C C E S S E Q U I P M E N T 14 3 9 LN 3 7 OT H E R J U R I S D I C T I O N A L A S S E T S 15 0 0 LN 3 8 CA S H W O R K I N G C A P I T A L XX X X 21 4 05 0 70 3 03 1 53 0 04 4 23 6 42 9 19 , 11 8 NE T T E L P L A N T , M & S A N D C W C 25 0 96 1 18 3 81 3 76 0 50 4 21 0 24 1 13 4 18 4 10 7 82 4 58 3 10 2 75 6 , 58 0 % D I S T R I B U T I O N 10 0 , 00 0 0 % 27 9 4 % 34 , 54 1 5 % 00 0 0 % 74 2 6 % 23 , 04 8 0 % 55 5 4 % 05 3 4 % 00 0 0 % 16 3 5 % 16 3 6 % 33 . 4 5 2 5 % 00 0 0 % R: \ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t s t u d y \ M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 In t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " (f ) 20 0 1 Te l e l n f o S y s l e m s , l n G , v 2 , II 8, . . Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - I D - 1 2 / 3 1 / 0 2 47 2 2 2 6 S- 3 , 1 o f 1 DE S C R I P T I O N 90 3 05 3 10 0 , 00 0 0 % 69 8 61 3 10 0 , 00 0 0 % 21 1 0 16 5 94 0 16 5 94 0 10 0 , 00 0 0 % PA R T 3 6 S E P A R A T I O N S OT H E R T E L E C O M M U N I C A T I O N S P L A N T 7/ 2 3 / 2 0 0 3 , 1 o f 1 AL L O C A T I O N BA S I S LN 3 + D I R E C T LN 6 + D I R E C T DIR E C T 13 . 4 6 8 39 7 61 0 21 5 20 8 33 2 64 0 71 6 78 0 09 6 22 5 19 6 49 1 4 % 44 , 02 9 6 % 00 0 0 % 35 2 6 % 23 , 06 9 7 % 95 0 0 % 62 9 6 % 00 0 0 % 08 6 4 % 0.4 5 3 5 % 24 , 93 7 2 % 00 0 0 % 15 6 21 9 29 3 10 8 17 2 66 6 31 3 27 9 24 1 34 0 20 4 73 2 14 , 7 5 8 33 4 20 3 17 7 1. 4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 ' % 92 8 5 % 29 , 94 0 1 % 00 0 0 % 18 7 84 6 46 0 2 % 16 2 25 0 40 , 12 7 7 % 00 0 0 % 20 7 62 2 61 3 9 % 78 1 60 4 21 , 62 2 2 % 29 0 20 0 25 5 8 % LN 1 1 + D I R 0 S - 4 LN 8 1 + D I R 0 S - LN 1 8 + D I R 0 S - LN 4 3 + D I R LN 1 4 + D I R LN 1 1 + D I R S- 4 LN 8 1 + D I R S- 5 LN 1 8 + D I R LN 4 3 + D I R LN 1 4 + D I R 00 0 0 % LN 3 3 DI R E C T -- - -- - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - LA N D A N D S U P P O R T A S S E T S CL A S S A C O M P A N I E S CL A S S B C O M P A N I E S DI R E C T A S S I G N E D N O N A C C E S S TO T A L L A N D A N D S U P P O R T A S S E T S % D I S T R I B U T I O N BA S I S F O R G E N E R A L S U P P O R T F A C I L I T I E S - C L A S S A S E P A R A T I O N S BI G T H R E E E X P E N S E S % D I S T R I B U T I O N - C L A S S B S E P A R A T I O N S CO E , l O T A N D C & W F % D I S T R I B U T I O N 62 7 86 9 14 2 95 6 46 8 32 5 85 9 44 8 98 8 11 0 64 8 , 4 8 5 62 7 86 9 14 2 95 6 46 8 32 5 85 9 44 8 98 8 11 0 64 8 , 4 8 5 1.4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % 12 , 86 4 , 55 3 10 0 , 00 0 0 % -- - - - - - - - - - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - __ n _ _ - - - - - - - - - - -- - - -, - -- - - - - - - 00 0 0 % 24 6 18 0 91 3 6 % 00 0 0 % 74 6 13 7 9 % 11 9 44 4 92 8 5 % 85 1 66 2 29 , 94 0 1 % -- - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - __ _ _ _ _ n _ _ _ - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - _ n -- - -- - - - - -- , - -- - -- - 26 8 1 26 8 2 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 86 4 55 3 10 0 , 00 0 0 % -- - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - -- - - - - -- - - - - - - - - - - - -- - - - - - -- - - - - - , - - - 00 0 0 % 18 7 84 6 1. 4 6 0 2 % 16 2 25 0 40 , 12 7 7 % 00 0 0 % 20 7 62 2 61 3 9 % 78 1 60 4 21 , 62 2 2 % 29 0 20 0 25 5 8 % 24 6 18 0 91 3 6 % 00 0 0 % 17 , 74 6 13 7 9 % 11 9 44 4 92 8 5 % 85 1 66 2 29 , 94 0 1 % -- - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - -- - - - - - d _ ' _ -'- ' - - -- - - 26 9 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % R\ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y \ M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xt s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " GE N S U P P O R T A S S E T S , C O E , I N F O R M A T I O N OR I G / T E R M , A N D C & W F % D I S T R I B U T I O N TA N G I B L E A S S E T S CA P I T A L L E A S E S GE N E R A L S U P P O R T CE N T R A L O F F I C E E Q U I P IN F O R M A T I O N O R I G / T E R M CA B L E A N D W I R E F A C I L I T I E S UN D I S T R I B U T E D SU B T O T A L C A P I T A L L E A S E S LE A S E H O L D I M P R O V E M E N T S GE N E R A L S U P P O R T CE N T R A L O F F I C E E Q U I P IN F O R M A T I O N O R I G / T E R M CA B L E A N D W I R E F A C I L I T I E S UN D I S T R I B U T E D SU B T O T A L L E A S E H O L D I M P R O V E M E N T S TO T A L T A N G I B L E A S S E T S % D I S T R I B U T I O N GE N S U P P O R T A S S E T S , C O E , I N F O R M A T I O N OR I G / T E R M , C W F A N D T A N G I B L E A S S E T S % D I S T R I B U T I O N IN T A N G I B L E A S S E T S AL L O C A T E D DI R E C T A S S I G N M E N T TO T A L I N T A N G I B L E S % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 1& ) 2 0 0 1 T e l e l n f o S y s t e m s , l n G , v 2 , Mi d v a l e T e l e p h o n e E x c h a n g e , I n c , - 1 0 - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 7/ 2 3 / 2 0 0 3 8- 4 , 1 o f 2 CE N T R A L O F F I C E E Q U I P M E N T S E P A R A T I O N S S-4 , 1 o r 2 DE S C R I P T I O N TO T A L CO M P A N Y AL L O C A T I O N BA S I S SE P A R A T I O N F A C T O R S ST A N D A R D W O R K S E C O N D S - C O M B I N E D T O L L A N D L O C A L B O A R D S 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % - S E P A R A T E T O L L B O A R D S 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % - D S A B O A R D S 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % - D S B B O A R D S 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % - D I R E C T O R Y A S S I S T A N C E B O A R D S 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % - T S P S C O M P L E X 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % SE R V I C E O B S E R V I N G T O L L M O U ' 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % PR O C E S S O R R E A L T I M E - R T A 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % PR O C E S S O R R E A L T I M E - T S P S C O M P L E X 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % RE L M O U ' S - T A N D E M S W I T C H I N G 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % RE L M O U ' S - T A N D E M S W I T C H T R A N S P O R T 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % DI A L E Q U I P M E N T M O U ' S ( O E M ) 10 0 , 00 0 0 % 97 0 0 % 82 , 03 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 15 , 00 0 0 % 00 0 0 % 14 a RE L M O U ' S - E X C H A N G E T R U N K 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 14 b TO L L C O N V E R S A T I O N M I N U T E S 10 0 , 00 0 0 % 83 0 0 % 56 , 00 2 0 % 38 , 20 9 0 % 95 9 0 % 00 0 0 % 00 0 0 % HO S T / R E M O T E M O U M I L E S 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % EQ U I P M E N T F U R N I S H E D O T H E R S F A C T O R 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % -- - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - , - - -- - - - - - - - - - - - -_ _ - - - _ _ _ m - CO E B O O K C O S T OP E R A T O R S Y S T E M S E Q U I P M E N T MA N U A L S W I T C H B O A R D S 22 2 0 CO M B I N E D T O L L A N D L O C A L LN 2 SE P A R A T E T O L L S W B D LN 3 SE P A R A T E D S A B O A R D S LN 4 SE P A R A T E D S B B O A R D S LN 5 DI R E C T A S S I G N M E N T DI R E C T SU B T O T A L M A N U A L B O A R D S % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % AU X I L I A R Y S W I T C H B O A R D S 22 2 0 DI R E C T O R Y A S S I S T A N C E LN 6 + D I R IN T E R C E P T SL U TO L L R A T E A N D R O U T E LN 3 + D I R SU B T O T A L A U X I L I A R Y B O A R D S % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % SE R V I C E O B S E R V I N G 22 2 0 TO L L LN 8 EX C H A N G E DI R E C T DI R E C T A S S I G N M E N T DI R E C T SU B T O T A L S E R V I C E O B S E R V I N G % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TR A F F I C S E R V I C E P O S I T I O N S 22 2 0 1. 4 OP E R A T O R LN 7 + D I R RE M O T E T R U N K A R R A N G E M E N T LN 9 + D I R OT H E R LN 1 0 + D I R SU B T O T A L T S P S % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TO T A L O P E R A T O R S Y S T E M S E Q U I P M E N T % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % R:\ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y l M T E - I D I R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , x1 s 20 0 2 In t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " (I D 20 0 1 Te l e l n r o S y s t e m s , I n c , v 2 , 7/2 3 / 2 0 0 3 Mid v a l e T e l e p h o n e E x c h a n g e , I n o , - 1 0 - 1 2 1 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S S- 4 2o f 2 CE N T R A L O F F I C E E Q U I P M E N T S E P A R A T I O N S 5- 4 , 2 o f 2 AL L O C A T I O N DE S C R I P T I O N BA S I S TA N D E M S W I T C H I N G E Q U I P M E N T 22 1 0 AC C E S S LN 1 1 + D I R NO N A C C E S S DI R E C T TA N D E M S W I T C H T R A N S P O R T LN 1 2 + D I R SU B T O T A L T A N D E M S W I T C H I N G % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % LO C A L S W I T C H I N G E Q U I P M E N T 22 1 0 48 a AC C E S S - T S 79 4 96 7 LN 1 3 + D I R 31 1 47 2 41 2 26 9 24 5 48 b AC C E S S - N T S LN 1 3 + D I R 48 0 EQ U A L A C C E S S LN 3 SS 7 S W I T C H I N G LN 1 3 + D I R SU B T O T A L L O C A L S W I T C H I N G 79 4 96 7 31 1 1, 4 7 2 , 4 1 2 26 9 24 5 % D I S T R I B U T I O N 10 0 , 00 0 0 % 97 0 0 % 82 , 03 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 15 , 00 0 0 % 00 0 0 % TO T A L S W I T C H I N G E Q U I P M E N T 79 4 96 7 31 1 47 2 , 4 1 2 26 9 24 5 % D I S T R I B U T I O N 10 0 , 00 0 0 % 97 0 0 % 82 , 03 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 15 , 00 0 0 % 00 0 0 % CE N T R A L O F F I C E T R A N S E Q U I P 22 3 0 EX C H A N G E C I R C U I T EX C H A N G E L I N E W I D E B A N D 87 2 AL - 1 , LN 1 O + D I R 61 3 25 9 EX C H T R U N K - E A S 12 1 14 0 DI R E C T 14 0 EX C H T R U N K - W I D E B A N D 12 2 AL - LN 1 2 + D I R EX C H T R U N K - B A S I C 12 3 LN 1 4 a + D I R EX C H T R U N K - S P E C I A L 12 4 DIR E C T XX X SU B S C R I B E R L I N E - B A S I C 13 1 14 9 11 1 AL - 1 , LN 2 + D I R 71 0 26 9 39 9 04 6 25 1 96 7 14 2 80 7 82 1 55 6 21 9 SU B S C R I B E R L I N E - S P E C I A L 13 2 DI R E C T XX X XX X SU B T O T A L E X C H A N G E C I R C U I T 24 1 12 3 71 0 33 4 01 2 30 4 25 1 96 7 14 2 80 7 82 ' 58 0 35 9 % D I S T R I B U T I O N 10 0 , 00 0 0 % 70 1 8 % 26 , 91 2 1 % 00 0 0 % 47 4 8 % 20 , 30 1 5 % 10 6 3 % 51 5 3 % 00 0 0 % 22 7 3 0 00 0 0 % 46 , 76 0 8 % 00 0 0 % IN T E R E X C H A N G E C I R C U I T FU R N I S H E D O T H E R S - IN T E R S T A T E DI R E C T WI D E B A N D 12 8 AL - LN 1 4 + D I R 12 8 67 a OT H E R - B A S I C 23 1 64 3 , 4 8 1 AL - LN 6 + D I R 40 5 83 8 66 6 43 9 57 2 20 4 28 9 47 8 67 b OT H E R - T A N D E M M U L T I P L E X I N G 23 2 LN 1 1 + D I R 67 0 OT H E R - V O I C E G R A D E M U L T I P L E X I N G 23 3 LN 1 4 b + D I R OT H E R - S S 7 23 4 AL , LN 6 + D I R NO N A C C E S S DI R E C T XX X SU B T O T A L I N T E R E X C H A N G E C I R C U I T 64 7 60 9 40 5 83 8 66 6 56 6 57 2 , 20 4 28 9 84 , 4 7 8 % D I S T R I B U T I O N 10 0 , 00 0 0 % 66 3 3 % 50 , 90 2 0 % 00 0 0 % 97 9 5 % 34 , 72 9 4 % 59 8 5 % 12 7 3 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % HO S T / R E M O T E C I R C U I T EX C L U D I N G W A T S LN 1 5 + D I R CL O S E D E N D W A T S DI R E C T SU B T O T A L H O S T / R E M O T E C I R C U I T % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % EQ U I P M E N T R E N T E D O T H E R S LN 1 6 + D I R TO T A L T R A N S M I S S I O N E Q U I P M E N T 88 8 73 1 11 6 17 2 , 67 8 87 0 82 4 17 1 85 , 43 1 10 3 28 5 82 1 58 0 35 9 % D I S T R I B U T I O N 10 0 , 00 0 0 % 25 0 2 % 40 , 59 4 9 % 00 0 0 % 90 3 4 % 28 , 53 0 6 % 95 7 4 % 57 5 4 % 00 0 0 % 09 7 7 % 00 0 0 % 20 , 09 0 4 % 00 0 0 % TO T A L C E N T R A L O F F I C E E Q U I P M E N T 68 3 69 8 89 , 4 2 6 64 5 09 0 87 0 82 4 17 1 85 , 4 3 1 10 3 28 5 82 1 84 9 60 4 % D I S T R I B U T I O N 10 0 , 00 0 0 % 90 9 3 % 56 , 47 4 4 % 00 0 0 % 79 0 7 % 17 , 59 6 6 % 82 4 0 % 20 5 2 % 00 0 0 % 06 0 2 % 00 0 0 % 18 , 13 9 6 % 00 0 0 % R\M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y \ M T E - ID \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xls 20 0 2 I n t e r s t a t e C o s t S t u d y o o PR O P R I E T A R Y I N F O R M A T I O N " ~2 0 0 1 T e l e l n f o S y s t e m s , I n o , v 2 , 8 8 Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - I D - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 7/2 3 / 2 0 0 3 8- 5 , 1 o f 1 IN F O R M A T I O N O R I G / T E R M A N D C & W F S E P A R A T I O N S 1 o f 1 TO T A L AL L O C A T I O N DE S C R I P T I O N CO M P A N Y BA S I S SU B S C R I B E R P L A N T F A C T O R ( S P F ) 10 0 , 00 0 0 % IN P U T 78 3 0 % 24 , 21 7 0 % 22 , 65 0 0 % 35 0 0 % 00 0 0 % 50 , 00 0 0 % RE L A T I V E M O U ' S - C O I N L E S S P A Y T E L 00 0 0 % IN P U T 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % EQ U I V A L E N T L O O P S - C W F 10 0 , 00 0 0 % AL - LN 4 75 8 0 % 23 . 4 4 4 1 % 00 0 0 % 30 9 3 % 21 , 92 7 1 % 27 5 0 % 63 6 7 % 00 0 0 % 24 5 5 % 00 0 0 % 48 . 4 0 4 3 % 00 0 0 % EQ U I V A L E N T C H A N N E L S - E X C H W I D E B A N D 00 0 0 % AL - LN 1 2 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % EQ U I V A L E N T C H A N N E L S - I X W I D E B A N D 00 0 0 % AL - LN 1 4 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % IX C I R C U I T M I L E S - C W F 10 0 , 00 0 0 % AL , 1 , LN 8 88 0 2 % 48 , 88 3 4 % 00 0 0 % 08 3 9 % 40 , 69 1 2 % 35 7 5 % 10 3 8 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % RE L M O U ' S - E X C H A N G E T R U N K 00 0 0 % IN P U T 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % HO S T / R E M O T E M O U M I L E S 00 0 0 % IN P U T 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % EQ U I P M E N T F U R N I S H E D O T H E R S F A C T O R 00 0 0 % IN P U T 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % -- - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - , - ,- - - - - - - - - -- - -- - - -'- -- - -- - -- - m - - _ n n- n , IN F O R M A T I O N O R I G / T E R M I N A T I O N 23 1 0 OT H E R l O T E Q U I P M E N T PU B L I C I N T E R E S T P A Y S T A T I O N E Q U I P LN 6 CO I N L E S S P U B L I C T E L E P H O N E LN 2 + D I R E C T OT H E R LN 1 + D I R E C T SU B T O T A L % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % NE W C U S T O M E R P R E M I S E E Q U I P M E N T DI R E C T TO T A L I N F O O R I G / T E R M E Q U I P % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CA B L E A N D W I R E F A C I L I T I E S 24 1 0 SU B S C R I B E R L I N E - J O I N T 86 2 32 8 LN 3 85 7 13 9 93 0 66 4 06 6 16 9 11 0 61 8 58 0 93 7 35 3 57 4 SU B S C R I B E R L I N E - D I R E C T DIR E C T XX X XX X SU B T O T A L S U B S C R I B E R L I N E 86 2 32 8 85 7 13 9 93 0 66 4 06 6 16 9 11 0 61 8 58 0 93 7 35 3 57 4 EX C H A N G E L I N E W I D E B A N D - J O I N T AL - LN 1 0 EX C H A N G E L I N E W I D E B A N D - D I R E C T 19 2 DI R E C T 19 2 XX X SU B T O T A L E X C H A N G E W I D E B A N D 19 2 19 2 25 a EX C H A N G E T R U N K - J O I N T LN 7 25 b EX C H A N G E T R U N K - D I R E C T 33 4 DI R E C T 33 4 EX C H A N G E T R U N K - W I D E B A N D LN 4 + D I R E C T SU B T O T A L E X C H A N G E T R U N K 33 4 33 4 IN T E R E X C H A N G E W I D E B A N D - J O I N T LN 5 IN T E R E X C H A N G E W I D E B A N D - D I R E C T 67 4 DI R E C T 67 4 XX X SU B T O T A L I N T E R E X C H A N G E W I D E B A N D 67 4 67 4 31 a IX T R U N K - A C C E S S - J O I N T 03 9 38 7 LN 6 93 6 50 8 08 8 26 6 42 2 , 93 9 29 2 21 , 86 7 31 b IX T R U N K - A C C E S S - D I R E C T DIR E C T XX X IX T R U N K - A C C E S S , S S 7 LN 6 + D I R E C T SU B T O T A L I N T E R E X C H A N G E A C C E S S 03 9 38 7 93 6 50 8 08 8 26 6 42 2 93 9 29 2 86 7 IX T R U N K - N O N A C C E S S , D I R E C T DI R E C T XX X HO S T / R E M O T E - J O I N T LN 8 HO S T / R E M O T E - D I R E C T DI R E C T XX X SU B T O T A L H O S T / R E M O T E E X C L W A T S HO S T / R E M O T E - C L O S E D E N D W A T S DI R E C T EQ U I P M E N T F U R N I S H E D O T H E R S - J O I N T LN 9 EQ U I P M E N T F U R N I S H E D O T H E R S - D I R E C T DI R E C T XX X SU B T O T A L E Q U I P , F U R N I S H E D O T H E R S TO T A L C A B L E A N D W I R E F A C I L I T I E S 01 4 91 5 79 3 64 8 01 8 79 6 48 9 10 8 15 5 90 9 10 1 44 7 93 7 99 , 33 4 35 3 57 4 % D I S T R I B U T I O N 10 0 , 00 0 0 % 11 0 5 % 27 , 39 8 9 % 00 0 0 % 1.4 7 6 3 % 24 , 75 6 9 % 59 2 0 % 68 6 6 % 00 0 0 % 19 8 5 % 65 1 5 % 39 , 12 9 0 % 00 0 0 % R:I M I M i d v a l e T e l e p h o n e E x c h a n g e l 2 0 0 2 1 2 0 0 2 C o s t S l u d y l M T E - 1D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xIs 20 0 2 In t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " (Q 20 0 1 Te l e l n f o S y s t e m s , I n c v 2 , 8 8 7/ 2 3 / 2 0 0 3 Mi d v a l e T e l e p h o n e E x c h a n g e , I n c , - ID - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 8- 6 , 1 o f 1 OT H E R T E L E P H O N E P L A N T A N D D E F E R R E D C H A R G E S 1 o f 1 AL L O C A T I O N DE S C R I P T I O N BA S I S TE L E P H O N E P L A N T I N S E R V I C E 20 0 1 10 0 , 00 0 0 % LN 1 0 1.4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % CA B L E A N D W I R E F A C I L I T I E S 24 1 0 10 0 , 00 0 0 % LN 4 3 11 0 5 % 27 , 39 8 9 % 00 0 0 % 1.4 7 6 3 % 24 , 75 6 9 % 59 2 0 % 68 6 6 % 00 0 0 % 19 8 5 % 65 1 5 % 39 , 12 9 0 % 00 0 0 % EQ U A L A C C E S S M O U ' 00 0 0 % IN P U T 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % -- - - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - - -- - - -- - - - - - - -- - - - - - - - - -- - - - - - - , - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - -- - -- - -- - - - - - - -- - - - -- - - -- - -- - n - -- - -- - -- - ' - OT H E R T E L E C O M M U N I C A T I O N S P L A N T PR O P E R T Y H E L D F O R F U T U R E U S E 20 0 2 GE N E R A L S U P P O R T F A C I L I T I E S S- 3 LN 1 1 CE N T R A L O F F I C E E Q U I P M E N T S- 4 , LN 8 1 CA B L E A N D W I R E F A C I L I T I E S LN 4 3 UN D I S T R I B U T E D LN 1 + D I R E C T PR O P E R T Y H E L D F O R F U T U R E U S E PL A N T U N D E R C O N S T R U C T I O N 20 0 3 GE N E R A L S U P P O R T F A C I L I T I E S LN 1 1 CE N T R A L O F F I C E E Q U I P M E N T S- 4 LN 8 1 CA B L E A N D W I R E F A C I L I T I E S LN 4 3 UN D I S T R I B U T E D LN 1 + D I R E C T TO T A L P L A N T U N D E R C O N S T R U C T I O N RE S E R V E D F O R F U T U R E U S E XX X X GE N E R A L S U P P O R T F A C I L I T I E S LN 1 1 CE N T R A L O F F I C E E Q U I P M E N T S- 4 LN 8 1 CA B L E A N D W I R E F A C I L I T I E S LN 4 3 UN D I S T R I B U T E D LN 1 + D I R E C T TO T A L TE L E C O M M U N I C A T I O N S P L A N T A D J 20 0 5 GE N E R A L S U P P O R T F A C I L I T I E S LN 1 1 CE N T R A L O F F I C E E Q U I P M E N T S- 4 , LN 8 1 CA B L E A N D W I R E F A C I L I T I E S LN 4 3 UN D I S T R I B U T E D LN 1 + D I R E C T TO T A L T E L P L A N T A D J U S T M E N T TO T A L O T H E R T E L E P H O N E P L A N T MA T E R I A L S A N D S U P P L I E S 12 2 0 CP E DI R E C T OT H E R 31 , 4 2 1 LN 2 + D I R E C T 34 9 60 9 46 4 77 9 81 4 53 0 51 9 12 , 29 5 TO T A L 42 1 34 9 60 9 46 4 77 9 81 4 53 0 51 9 29 5 % D I S T R I B U T I O N ' 1 0 0 , 00 0 0 % 11 0 5 % 27 , 39 8 9 % 00 0 0 % 1.4 7 6 3 % 24 , 75 6 9 % 59 2 0 % 68 6 6 % 00 0 0 % 19 8 5 % 65 1 5 % 39 , 12 9 0 % 00 0 0 % IN V E S T M E N T , I N N O N A F F I L I A T E D C O , 14 0 2 RT B S T O C K LN 1 OT H E R DI R E C T TO T A L NO N C U R R E N T A S S E T S - P O S T R E T B E N E 14 1 0 LN 3 EQ U A L A C C E S S E Q U I P M E N T - N E T 14 3 9 LN 3 + D I R E C T OT H E R J U R I S D I C T I O N A L A S S E T S 15 0 0 DI R E C T R\M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t s t u d y \ M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xls 20 0 2 In t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " ~ 2 0 0 1 T e l e l n f o S y s t e m s , l n G , v 2 , Mi d v a l e T e l e p h o n e E x c h a n g e , I n o , - I D - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 7/2 3 / 2 0 0 3 8- 7 1o f 2 AC C U M U L A T E D D E P R E C I A T I O N / A M O R T I Z A T I O N S E P A R A T I O N S 1 o f 2 TO T A L AL L O C A T I O N DE S C R I P T I O N CO M P A N Y BA S I S GE N E R A L S U P P O R T F A C I L I T I E S 21 1 0 10 0 , 00 0 0 % LN 1 1 46 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % CE N T R A L O F F I C E E Q U I P M E N T 22 3 0 10 0 , 00 0 0 % S- 4 LN 8 1 90 9 3 % 56 . 4 7 4 4 % 00 0 0 % 79 0 7 % 17 , 59 6 6 % 82 4 0 % 20 5 2 % 00 0 0 % 06 0 2 % 00 0 0 % 18 , 13 9 6 % 00 0 0 % IN F O R M A T I O N O R I G / T E R M E Q U I P M E N T 23 1 0 00 0 0 % LN 1 8 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CA B L E & W I R E F A C I L I T I E S 24 1 0 10 0 , 00 0 0 % LN 4 3 11 0 5 % 27 , 39 8 9 % 00 0 0 % 1. 4 7 6 3 % 24 , 75 6 9 % 59 2 0 % 68 6 6 % 00 0 0 % 19 8 5 % 65 1 5 % 39 , 12 9 0 % 00 0 0 % GE N S U P P O R T , C O E , l O T A N D C & W F 10 0 , 00 0 0 % LN 1 4 46 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % CA P I T A L L E A S E S 26 8 1 00 0 0 % LN 2 1 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % LE A S E H O L D I M P R O V E M E N T S 26 8 2 00 0 0 % LN 2 8 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TA N G I B L E A S S E T S 26 8 0 00 0 0 % LN 3 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % PL A N T H E L D F O R F U T U R E U S E 20 0 2 00 0 0 % LN 9 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TE L E C O M M U N I C A T I O N S P L A N T A D J 20 0 5 00 0 0 % LN 2 7 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % -- - - - - - - - - - - -- - - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - ,- - - - - - - - -- - - - - - - - - -- - - - - m_ _ _ m , _ - AC C U M D E P R - P L A N T I N S E R V I C E 31 0 0 GE N E R A L S U P P O R T 15 5 19 5 LN 1 + D I R E C T 86 8 46 3 55 3 64 4 24 9 77 9 05 9 10 6 59 4 72 6 34 5 86 7 CE N T R A L O F F I C E S W I T C H I N G E Q U I P 58 1 57 5 LN 5 3 + D I R 97 3 29 7 36 6 23 7 23 6 OP E R A T O R S E R V I C E S E Q U I P M E N T LN 4 2 + D I R CE N T R A L O F F I C E T R A N S M I S S I O N 82 6 03 8 LN 7 9 + D I R 83 0 74 1 , 27 9 01 6 52 0 97 9 00 3 28 9 78 3 36 6 85 9 UN D I S T R I B U T E D C O E LN 2 + D I R E C T IN F O R M A T I O N O R I G / T E R M LN 3 + D I R E C T CA B L E A N D W I R E F A C I L I T I E S 75 5 27 9 LN 4 + D I R E C T 59 6 75 4 91 5 67 5 68 2 12 2 41 8 47 0 5,4 6 8 50 2 07 8 11 2 TO T A L A C C U M D E P - P L A N T I N S E R V I C E 31 8 08 7 11 7 26 7 25 7 11 3 11 2 33 5 45 2 , 88 0 15 1 48 0 13 3 86 5 84 5 22 8 02 8 07 4 AC C U M D E P R E C I A T I O N - F U T U R E U S E 32 0 0 LN 9 + D I R E C T AC C U M U L A T E D A M O R T I Z A T I O N TA N G I B L E A S S E T S 34 0 0 CA P I T A L L E A S E S LN 6 + D I R E C T LE A S E H O L D I M P R O V E M E N T S LN 7 + D I R E C T UN D I S T R I B U T E D LN 8 + D I R E C T TO T A L A C C U M A M O R T - TA N G I B L E A S S E T S IN T A N G I B L E A S S E T S 35 0 0 LN 3 7 + D I R TE L E C O M M U N I C A T I O N S P L A N T A D J 36 0 0 LN 1 0 + D I R E C T TO T A L A C C U M A M O R T I Z A T I O N NE T O P E R A T I N G D E F E R R E D I N C T A X 41 0 0 & GE N E R A L S U P P O R T 43 4 0 58 8 LN 1 + D I R E C T 78 9 21 , 68 1 87 2 24 0 21 9 03 4 50 2 16 , 17 7 CE N T R A L O F F I C E S W I T C H I N G E Q U I P 88 7 LN 5 3 + D I R 36 9 81 8 78 4 91 5 OP E R A T O R S E R V I C E S E Q U I P M E N T LN 4 2 + D I R CE N T R A L O F F I C E T R A N S M I S S I O N 60 4 LN 7 9 + D I R 91 0 53 4 11 2 60 9 15 2 60 1 61 6 IN F O R M A T I O N O R I G / T E R M LN 3 + D I R E C T CA B L E A N D W I R E F A C I L I T I E S 18 7 31 2 LN 4 + D I R E C T 71 7 35 5 28 2 99 7 00 7 60 7 30 7 55 3 60 , 4 8 8 UN D I S T R I B U T E D LN 5 + D I R E C T TO T A L N E T D E F E R R E D I N C O M E T A X 39 9 39 1 78 4 13 1 38 8 26 6 14 2 62 9 37 7 24 2 45 2 05 5 19 6 RIM I M i d v a i e T e l e p h o n e E x c h a n g e l 2 0 0 2 1 2 0 0 2 C o s t S t u d y l M T E - ID I R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xls 20 0 2 In t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " (9 2 0 0 1 T e l e l n f o S y s t e m s , I n o , v 2 , .. . .. . 7:2 3 / 2 0 0 3 Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - 10 - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T l a N S OT H E R U T L l A B - P O S T R E T B E N E F I T 43 1 0 AC C U M U L A T E D D E P R E C I A T I O N / A M O R T I Z A T I O N S E P A R A T I O N S , 2 o f 2 AL L O C A T I O N BA S I S LN 1 + D I R E C T LN 5 3 + D I R LN 4 2 + D I R LN 7 9 + D I R LN 3 + D I R E C T LN 4 + D I R E C T LN 5 + D I R E C T LN 3 S- 7 20 f 2 DE S C R I P T I O N OT H E R D E F E R R E D C R E D I T S - N E T GE N E R A L S U P P O R T CE N T R A L O F F I C E S W I T C H I N G E Q U I P M E N T OP E R A T O R S E R V I C E S E Q U I P M E N T CE N T R A L O F F I C E T R A N S M I S S I O N IN F O R M A T I O N O R I G / T E R M CA B L E A N D W I R E F A C I L I T I E S UN D I S T R I B U T E D TO T A L O T H E R D E F E R R E D C R E D I T S 43 6 0 R\ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y \ M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " (Q 2 0 0 1 T e l e l n f o S y s t e m s , I n c , v 2 , .. , Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - 1 0 - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 7/2 3 / 2 0 0 3 8- 8 , 1 o f 1 SU M M A R Y O F O P E R A T I N G E X P E N S E A N D T A X 1 o f 1 TO T A L AL L O C A T I O N DE S C R I P T I O N CO M P A N Y BA S I S OP E R A T I N G E X P E N S E A N D T A X S U M M A R Y NE T W O R K S U P P O R T E X P E N S E 61 1 0 LN 7 GE N E R A L S U P P O R T E X P E N S E 61 2 0 36 9 LN 8 07 1 29 , 4 4 1 18 4 86 4 65 5 40 4 10 1 68 1 96 7 CE N T R A L O F F I C E E X P E N S E 62 1 0 47 7 66 7 LN 1 5 12 0 26 9 75 9 55 4 05 3 71 3 53 4 28 8 64 7 IN F O R M A T I O N O R I G I T E R M E X P E N S E 63 1 0 LN 2 1 CA B L E A N D W I R E F A C I L I T I E S E X P E N S E 64 1 0 24 7 99 5 LN 2 5 75 4 94 8 66 1 39 6 42 8 18 3 49 2 09 6 03 8 OT H E R P L A N T E X P E N S E 65 1 0 LN 1 1 NE T W O R K O P E R A T I O N S E X P E N S E 65 3 0 LN 1 3 AC C E S S C H A R G E E X P E N S E 65 4 0 91 5 14 a + 1 4 b 91 5 MA R K E T I N G E X P E N S E 66 1 0 LN 1 2 SE R V I C E S E X P E N S E 66 2 0 17 7 37 6 11 , LN 4 4 59 4 89 7 88 0 49 9 50 7 EX E C U T I V E A N D P L A N N I N G E X P E N S E 67 1 0 10 9 29 3 LN 8 + 9 63 0 12 1 1, 4 7 8 21 4 22 4 78 1 49 6 25 5 GE N E R A L A N D A D M I N I S T R A T I V E E X P 67 2 0 35 4 93 0 LN 1 1 + 1 2 91 7 17 0 39 8 4, 4 6 0 06 0 72 6 37 3 28 5 49 5 82 , 21 7 SU B T O T A L O P E R A T I N G E X P E N S E S 1,4 4 4 56 0 08 6 64 9 48 6 33 7 32 5 46 9 24 5 27 4 26 0 76 8 35 6 63 4 % D I S T R I B U T I O N 10 0 , 00 0 0 % 1. 4 5 9 7 % 44 , 96 0 8 % 00 0 0 % 33 8 6 % 22 , 53 0 7 % 85 5 2 % 61 1 2 % 00 0 0 % 08 7 2 % 0.4 6 8 5 % 24 , 68 8 1 % 00 0 0 % DE P R E C I A T I O N A N D A M O R T I Z A T I O N 65 6 0 08 3 15 9 LN 2 4 + 3 1 17 , 4 4 6 48 9 33 3 33 8 21 6 71 9 58 1 75 7 25 6 46 7 29 0 26 2 OT H E R O P E R A T I N G T A X 72 4 0 27 3 LN 3 3 58 8 17 6 65 0 70 3 90 8 77 0 37 4 05 0 EQ U A L A C C E S S E X P E N S E LN 1 5 IN T E R E S T O N C U S T O M E R D E P O S I T S 72 5 0 LN 1 7 RE N T R E V E N U E 52 4 0 1 O LN 4 7 TO T A L O P E R A T I N G E X P E N S E A N D T A X 56 7 99 2 12 0 15 4 99 4 32 4 55 0 89 1 73 4 80 2 57 2 60 8 65 8 94 6 % D I S T R I B U T I O N 10 0 , 00 0 0 % 52 3 4 % 44 , 97 6 5 % 00 0 0 % 1. 4 5 3 4 % 21 . 4 5 2 2 % 52 0 8 % 74 4 6 % 00 0 0 % 10 0 1 % 56 8 9 % 25 , 66 0 0 % 00 0 0 % NO N O P E R A T I N G E X P E N S E 73 7 0 AB A N D O N E D C O N S T R U C T I O N LN 1 0 CO N T R I B U T I O N S LN 1 4 OT H E R N O N O P E R A T I N G E X P E N S E DI R E C T TO T A L N O N O P E R A T I N G E X P E N S E % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % UN C O L L E C T I B L E S EN D U S E R M S G T O L L S 53 1 0 74 1 DI R E C T 74 1 EN D U S E R C O M M O N L I N E 53 2 0 DI R E C T IX C A R R I E R 53 3 0 DI R E C T TO T A L U N C O L L E C T I B L E S 74 1 74 1 AL L O w . F O R F U N D S U S E D D U R . C O N S T F 73 4 0 LN 3 R:I M I M i d v a l e T e l e p h o n e E x c h a n g e l 2 0 0 2 1 2 0 0 2 C o s t S t u d y l M T E - I D I R M S I 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y . . PR O P R I E T A R Y I N F O R M A T I O N " ~ 2 0 0 1 T e l e l n f o S y s t e m s , I n c , v 2 , 7/2 3 / 2 0 0 3 Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - 1 0 - - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 8- 9 , 1 o f 1 PL A N T S P E C I F I C O P E R A T I O N S E X P E N S E S E P A R A T I O N S 1 o f 1 TO T A L AL L O C A T I O N DE S C R I P T I O N CO M P A N Y BA S I S AL L O C A T I O N F A C T O R S GE N E R A L S U P P O R T A S S E T S 21 1 0 10 0 , 00 0 0 % LN 1 1 46 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % CE N T R A L O F F I C E E Q U I P M E N T VA R 10 0 , 00 0 0 % S- 4 LN 8 1 90 9 3 % 56 . 4 7 4 4 % 00 0 0 % 79 0 7 % 17 , 59 6 6 % 82 4 0 % 20 5 2 % 00 0 0 % 06 0 2 % 00 0 0 % 18 1 3 9 6 % 00 0 0 % PU B L I C S E R V I C E T E L E P H O N E E Q U I P 23 1 0 00 0 0 % LN 1 1 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CO I N L E S S P U B L I C T E L E P H O N E E Q U I P 23 1 0 00 0 0 % LN 1 2 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % OT H E R l O T E Q U I P M E N T 23 1 0 00 0 0 % LN 1 3 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CA B L E A N D W I R E F A C I L I T I E S 24 1 0 10 0 , 00 0 0 % LN 4 3 11 0 5 % 27 , 39 8 9 % 00 0 0 % 47 6 3 % 24 , 75 6 9 % 59 2 0 % 68 6 6 % 00 0 0 % 19 8 5 % 65 1 5 % 39 , 12 9 0 % 00 0 0 % -- - - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - , - - - - - -- - - - - - - , - -o o - - - - , - GE N E R A L S U P P O R T E X P E N S E NE T W O R K S U P P O R T 61 1 0 LN 1 + D I R E C T GE N E R A L S U P P O R T 61 2 0 36 9 LN 1 + D I R E C T 07 1 44 1 18 4 86 4 65 5 40 4 10 1 68 1 96 7 TO T A L G E N E R A L S U P P O R T E X P 36 9 07 1 44 1 18 4 86 4 65 5 1, 4 0 4 10 1 68 1 21 , 96 7 % D I S T R I B U T I O N 10 0 , 00 0 0 % 1. 4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % CE N T R A L O F F I C E E X P E N S E CE N T R A L O F F I C E S W I T C H I N G E X P E N S E 62 1 0 29 2 , 67 7 LN 2 + D I R E C T 58 8 16 5 28 8 24 1 50 1 33 8 45 4 17 6 09 0 OP E R A T O R S Y S T E M S E X P E N S E 62 2 0 LN 2 + D I R E C T CE N T R A L O F F I C E T R A N S M I S S I O N E X P 62 3 0 18 4 99 0 LN 2 + D I R E C T 53 2 10 4 47 2 31 3 55 2 37 4 07 9 11 1 55 6 CO E E X P E N S E - S S 7 L E A S E 62 3 0 LN 2 + D I R E C T TO T A L C E N T R A L O F F I C E E X P E N S E 47 7 66 7 12 0 26 9 75 9 55 4 05 3 71 3 53 4 28 8 64 7 % D I S T R I B U T I O N 10 0 , 00 0 0 % 90 9 3 % 56 . 4 7 4 4 % 00 0 0 % 79 0 7 % 17 , 59 6 6 % 82 4 0 % 20 5 2 % 00 0 0 % 06 0 2 % 00 0 0 % 18 , 13 9 6 % 00 0 0 % IN F O R M A T I O N O R I G / T E R M E X P E N S E 63 1 0 lO T E X P - P U B L I C I N T E R E S T P A Y T E L LN 3 lO T E X P - C O I N L E S S P A Y T E L LN 4 lO T E X P - O T H E R LN 5 + D I R E C T lO T E X P - C P E DI R E C T TO T A L I N F O R M A T I O N O R I G / T E R M E X P % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CA B L E A N D W I R E F A C I L I T I E S E X P E N S E 64 1 0 CW F E X P - U N D I S T R I B U T E D 24 7 99 5 LN 6 75 4 94 8 66 1 39 6 42 8 18 3 49 2 09 6 03 8 24 a CW F E X P - S S 7 L E A S E LN 6 + D I R E C T 24 b CW F E X P - D I R E C T A S S I G N E D DIR E C T TO T A L C W F E X P E N S E 24 7 99 5 75 4 94 8 66 1 39 6 42 8 18 3 49 2 09 6 03 8 % D I S T R I B U T I O N 10 0 , 00 0 0 % 11 0 5 % 27 , 39 8 9 % 00 0 0 % 1.4 7 6 3 % 24 , 75 6 9 % 59 2 0 % 68 6 6 % 00 0 0 % 19 8 5 % 65 1 5 % 39 , 12 9 0 % 00 0 0 % TO T A L P L A N T S P E C I F I C E X P E N S E 79 9 03 1 12 , 94 5 36 7 14 9 39 9 16 1 31 3 79 6 12 0 88 1 77 7 20 5 65 1 % D I S T R I B U T I O N 10 0 , 00 0 0 % 62 0 1 % 45 , 94 9 2 % 00 0 0 % 67 6 9 % 20 , 18 8 6 % 10 2 0 % 01 7 5 % 00 0 0 % 11 0 3 % 59 7 8 % 25 , 73 7 6 % 00 0 0 % PL A N T S P E C I F I C E X P E X C L U D I N G G S F 72 5 66 2 87 4 33 7 , 7 0 7 21 5 14 5 , 4 4 9 14 1 14 , 7 1 6 78 0 09 6 18 3 68 5 % D I S T R I B U T I O N 10 0 , 00 0 0 % 63 6 3 % 46 , 53 7 8 % 00 0 0 % 68 3 2 % 20 , 04 3 6 % 08 6 5 % 02 8 0 % 00 0 0 % 10 7 5 % 56 4 4 % 25 , 31 2 7 % 00 0 0 % R\ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y l M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N . . 20 0 1 Te l e l n f o S y s t e m s , l n G , v 2 , Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - 10 - - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 7/ 2 3 / 2 0 0 3 8- 1 0 PL A N T N O N S P E C I F I C O P E R A T I O N S E X P E N S E S E P A R A T I O N S , 1 o f 1 AL L O C A T I O N DE S C R I P T I O N BA S I S TE L E P H O N E P L A N T I N S E R V I C E 20 0 1 10 0 , 00 0 0 % LN 1 0 1. 4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % CA P I T A L L E A S E S 26 8 1 00 0 0 % LN 6 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % LE A S E H O L D I M P R O V E M E N T S 26 8 2 00 0 0 % LN 7 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TA N G I B L E P R O P E R T Y 26 8 0 00 0 0 % LN 3 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % IN T A N G I B L E P R O P E R T Y 26 9 0 00 0 0 % LN 3 7 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TE L E P H O N E P L A N T A D J U S T M E N T 20 0 5 00 0 0 % LN 1 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CO E , l O T A N D C & W F 10 0 , 00 0 0 % LN 7 1. 4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % -- - - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - ,- - - - - - - - - - -- - -- - -- , -- - _ -- _ _ _ OT H E R P R O P E R T Y P L A N T & E Q U I P E X P , UN D I S T R I B U T E D 65 1 0 LN 1 + D I R E C T PR O P E R T Y H E L D F O R F U T U R E U S E 65 1 1 LN 1 + D I R E C T MA T E R I A L S & S U P P L I E S P R O V I S I O N I N G 65 1 2 LN 1 + D I R E C T TO T A L O T H E R P R O P P L A N T & E Q U I P E X P , % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % NE T W O R K O P E R A T I O N S E X P E N S E 65 3 0 LN 7 + D I R E C T 14 a AC C E S S C H A R G E E X P E N S E 65 4 0 DI R E C T 14 b FE D E R A L S U P P O R T C H A R G E S 65 4 0 91 5 DI R E C T 91 5 DE P R E C I A T I O N E X P E N S E 65 6 0 GE N E R A L S U P P O R T 18 0 46 9 LN 1 1 63 5 72 , 41 8 91 3 02 1 07 1 45 4 24 9 67 6 03 3 CE N T R A L O F F I C E S W I T C H I N G E Q U I P M E N T 23 3 , 4 7 7 S- 4 LN 5 3 93 4 19 1 52 1 02 2 OP E R A T O R S Y S T E M S E Q U I P M E N T S- 4 LN 4 2 CE N T R A L O F F I C E T R A N S M I S S I O N 31 8 55 7 S- 4 LN 7 9 98 3 12 9 31 8 24 9 88 6 42 1 39 0 31 1 99 9 UN D I S T R I B U T E D C O E S- 4 LN 8 1 IN F O R M A T I O N O R I G / T E R M LN 1 8 CA B L E A N D W I R E F A C I L I T I E S 35 0 65 6 LN 4 3 89 4 07 6 17 7 86 , 81 2 08 9 91 4 69 6 79 1 13 7 20 8 TO T A L D E P E X P - P L A N T I N S E R V I C E 08 3 , 15 9 44 6 48 9 33 3 33 8 21 6 71 9 58 1 20 , 7 5 7 25 6 46 7 29 0 26 2 PR O P E R T Y H E L D F O R F U T U R E U S E LN 1 + D I R E C T TO T A L D E P R E C I A T I O N E X P E N S E 08 3 15 9 44 6 48 9 33 3 33 8 21 6 71 9 58 1 75 7 25 6 46 7 29 0 26 2 % D I S T R I B U T I O N 10 0 , 00 0 0 % 61 0 7 % 45 , 17 6 5 % 00 0 0 % 60 0 7 % 20 , 00 8 1 % 08 4 8 % 91 6 4 % 00 0 0 % 11 6 0 % 68 9 3 % 26 , 79 7 7 % 00 0 0 % AM O R T I Z A T I O N E X P E N S E CA P I T A L L E A S E 65 6 3 LN 2 + D I R E C T LE A S E H O L D I M P R O V E M E N T S 65 6 3 LN 3 + D I R E C T UN D I S T R I B U T E D 65 6 3 LN 4 + D I R E C T IN T A N G I B L E A S S E T S 65 6 4 LN 5 + D I R E C T OT H E R - T P A A 65 6 5 LN 6 + D I R E C T TO T A L A M O R T I Z A T I O N E X P E N S E % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % RE N T R E V E N U E S GE N S U P P O R T A S S E T S 52 4 0 LN 1 1 + D I R CE N T R A L O F F I C E E Q U I P M E N T 52 4 0 S- 4 LN 8 1 + D I R CA B L E & W I R E F A C I L I T I E S 52 4 0 LN 4 3 + D I R UN D I S T R I B U T E D 52 4 0 LN 1 0 + D I R UN B U N D L E D I N T E R C O N N E C T I O N : - U N B U N D L E D L O O P 52 4 0 LN 3 + D I R - O P E R A T O R S Y S T E M S 52 4 0 S- 4 LN 4 2 + D I R - T A N D E M S W I T C H I N G 52 4 0 S- 4 LN 4 7 + D I R - L O C A L S W I T C H I N G 52 4 0 S- 4 LN 5 1 + D I R - T R A N S P O R T T E R M I N A T I O N 52 4 0 AL - LN 6 + D I R - T R A N S P O R T F A C I L I T Y 52 4 0 AL - 1 , LN 8 + D I R - S S 7 / 8 0 0 D A T A B A S E 52 4 0 DIR E C T - O S S 52 4 0 0 S - LN 4 5 + D I R MI S C E L L A N E O U S R E N T R E V E N U E 52 4 0 DI R E C T TO T A L R E N T R E V E N U E S R:\ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y \ M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " i& ) 2 0 0 1 T e l e l n f o S y s t e m s , I n c , v 2 , Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - 10 - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 7/ 2 3 / 2 0 0 3 8- 1 1 10 f CU S T O M E R O P E R A T I O N S , EX P E N S E S E P A R A T I O N S , 1 o f 1 Al l O C A T I O N DE S C R I P T I O N BA S I S SW S - O P E R A T O R S E R V I C E S E X C l D A 10 0 , 00 0 0 % IN P U T 00 0 0 % 00 0 0 % 10 0 , 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % SW S - D I R E C T O R Y A S S I S T A N C E B O A R D S 00 0 0 % IN P U T 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % SU B S C R I B E R L I N E U S E ( S l U ) 10 0 , 00 0 0 % IN P U T 99 0 0 % 30 , 62 9 0 % 20 , 81 7 0 % 16 0 0 % 00 0 0 % 45 . 4 0 4 0 % EN D U S E R B i l l E D RE V E N U E I N C l C C l 10 0 , 00 0 0 % IN P U T 00 0 0 % 31 , 13 9 6 % 00 0 0 % 00 0 0 % 31 , 67 6 7 % 39 4 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 34 , 78 9 7 % 00 0 0 % IX C A R R I E R B i l l E D R E V E N U E 10 0 , 00 0 0 % IN P U T 00 0 0 % 50 , 00 0 0 % 00 0 0 % 00 0 0 % 50 , 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % PU B L I C I N T E R E S T P A Y S T A T I O N R E V E N U E 00 0 0 % IN P U T 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % BU S I N E S S O F F I C E C O N T A C T S 10 0 , 00 0 0 % IN P U T 00 0 0 % 27 , 00 0 0 % 00 0 0 % 00 0 0 % 11 , 50 0 0 % 11 , 50 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 50 , 00 0 0 % 00 0 0 % Bi l L I N G I N Q U I R Y C O N T A C T S 10 0 , 00 0 0 % IN P U T 00 0 0 % 25 , 00 0 0 % 00 0 0 % 00 0 0 % 17 , 50 0 0 % 17 , 50 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 40 , 00 0 0 % 00 0 0 % IX C A R R I E R S V C O R D E R C O N T A C T S 10 0 , 00 0 0 % IN P U T 00 0 0 % 50 , 00 0 0 % 00 0 0 % 00 0 0 % 50 , 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % IX C A R R I E R B i l L I N G I N Q U I R Y C O N T A C T S 10 0 , 00 0 0 % IN P U T 00 0 0 % 50 , 00 0 0 % 00 0 0 % 00 0 0 % 50 , 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CA R R I E R A C C E S S B i l L I N G F A C T O R 10 0 , 00 0 0 % IN P U T 00 0 0 % 50 , 00 0 0 % 00 0 0 % 00 0 0 % 25 , 00 0 0 % 25 , 00 0 0 % 00 0 0 % 00 0 0 % -- - - - - - -- - - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - -- - - - - - - - - - -- - -- - - - - - -- - - - - - - - -- - - - - - - - -- - - - , - - - - -- - - - - - - - -- - - - - - - - - -- - _ __ _ _ ' 0 _ - __ m _ _ - - - - -- - -- - - - -- - - - -- - - - , m_ , _ ,_ , m CU S T O M E R O P E R A T I O N S E X P E N S E S MA R K E T I N G 66 1 0 IN P U T TE L E P H O N E O P E R A T O R S E R V I C E S - C A l l CO M P L E T I O N I N C l D A 66 2 1 89 3 IN 1 + D I R E C T 89 3 - O P E R A T O R S E R V , U N D E R C O N T R A C T DI R E C T PU B L I S H E D D I R E C T O R Y L I S T I N G S 66 2 2 - C L A S S I F I E D DI R E C T TW X DI R E C T - A L P H A IN 3 0 F O R E I G N DI R E C T SU B T O T A L lO C A L B U S I N E S S O F F I C E 66 2 3 - E N D U S E R S V C O R D E R P R O C E S S I N G - P R E S U B S C R I P T I O N 60 8 DI R E C T 60 8 - O T H E R 22 , 82 3 IN 7 16 2 62 5 62 5 41 2 - E N D U S E R P A Y M E N T & CO l l E C T I O N 82 3 IN 4 10 7 23 0 54 6 94 0 - E N D U S E R B i l L I N G I N Q U I R Y 82 3 IN 8 70 6 99 4 99 4 12 9 IX C A R R I E R S V C O R D E R P R O C E S S I N G 1. 4 IN 9 IX C A R R I E R P A Y M E N T & CO l l E C T I O N IN 5 - I X C A R R I E R B i l L I N G I N Q U I R Y IN 1 0 - C O I N C O l l E C T A N D A D M I N - P U B I N T IN 6 + D I R SU B T O T A L l O C A L B U S I N E S S O F F I C E 07 8 26 , 58 3 84 8 16 5 48 1 CU S T O M E R S E R V I C E S ( R E V A C C T G ) 66 2 3 - M E S S A G E P R O C E S S I N G - T O l l TI C K E T P R O C E S S I N G 53 2 Al - lN 1 6 + D I R 59 4 33 7 69 0 91 1 - l O C A L M E S S A G E P R O C E S S I N G DI R E C T - O T H E R B i l L I N G & C O l l E C T I O N 07 7 Al - lN 1 8 + D I R 02 6 02 6 13 , 02 6 - E N D U S E R C O M M O N L I N E 05 7 DI R E C T 05 7 - C A R R I E R A C C E S S B i l L I N G ( C A B S ) 2.4 68 9 IN 1 1 84 5 42 2 42 2 SU B T O T A L C U S T O M E R S E R V I C E S 10 0 35 5 59 4 26 4 13 8 33 4 02 6 TO T A L C A T 1 A N D C A T 2 17 6 43 3 IN 3 2 + l N 4 0 59 4 84 7 61 , 98 7 49 9 50 7 % D I S T R I B U T I O N 10 0 , 00 0 0 % 90 3 3 % 33 , 92 0 5 % 00 0 0 % 00 0 0 % 35 , 13 3 2 % 51 7 4 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 23 , 52 5 6 % 00 0 0 % Al l OT H E R C U S T O M E R S E R V I C E 66 2 3 IN 4 2 + D I R E C T TO T A L S E R V I C E S E X P E N S E 17 7 , 37 6 59 4 89 7 62 , 88 0 49 9 41 , 50 7 % D I S T R I B U T I O N 10 0 , 00 0 0 % 89 8 5 % 33 , 76 8 4 % 00 0 0 % 00 0 0 % 35 . 4 4 9 8 % 48 2 8 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 23 , 40 0 5 % 00 0 0 % TO T A L C U S T O M E R O P E R A T I O N S E X P , 17 7 , 37 6 IN 1 2 + l N 4 4 59 4 89 7 88 0 49 9 50 7 % D I S T R I B U T I O N 10 0 , 00 0 0 % 89 8 5 % 33 , 76 8 4 % 00 0 0 % 00 0 0 % 35 . 4 4 9 8 % 48 2 8 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 23 . 4 0 0 5 % 00 0 0 % R\M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y \ M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y . ' PR O P R I E T A R Y I N F O R M A T I O N " (9 2 0 0 1 Te l e l n f o S y s l e m s , I n c , v 2 , I. II 7/2 3 / 2 0 0 3 Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - ID - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S OT H E R O P E R A T I N G E X P E N S E A N D T A X S E P A R A T I O N S 1 o f 1 1 o f 1 AL L O C A T I O N DE S C R I P T I O N BA S I S SE P A R A T I O N F A C T O R S BIG T H R E E E X P E N S E S 10 0 , 00 0 0 % LN 3 1. 4 9 1 4 % 44 , 02 9 6 % 00 0 0 % 35 2 6 % 23 , 06 9 7 % 95 0 0 % 62 9 6 % 00 0 0 % 08 6 4 % 45 3 5 % 24 , 93 7 2 % 00 0 0 % TE L E P H O N E P L A N T I N S E R V I C E 20 0 1 10 0 , 00 0 0 % LN 1 0 46 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % PL A N T U N D E R C O N S T R U C T I O N 20 0 3 00 0 0 % LN 1 5 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CA P I T A L L E A S E S 26 8 0 00 0 0 % LN 2 1 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % EQ U A L A C C E S S I N V E S T M E N T 00 0 0 % LN 3 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % NE T T E L E P H O N E P L A N T E X C L 4 0 4 0 43 1 0 10 0 , 00 0 0 % LN 2 9 27 8 3 % 34 . 4 6 1 3 % 00 0 0 % 74 9 0 % 23 , 04 4 0 % 55 1 8 % 06 0 8 % 00 0 0 % 16 4 1 % 16 8 8 % 33 , 52 1 8 % -- - - - - - - -- - - - - - - - - - -- - - - -- - - - - -- - - - - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - -- - , - - - - - - - ,- - - - - - - - --- -- - -- - - - - - - CO R P O R A T E O P E R A T I O N S E X P E N S E EX E C U T I V E A N D P L A N N I N G 67 1 0 DI R E C T A S S I G N E D DI R E C T OT H E R 10 9 29 3 LN 1 63 0 12 1 47 8 21 4 22 4 78 1 49 6 25 5 GE N E R A L & A D M I N I S T R A T I V E 67 2 0 DI R E C T A S S I G N E D 25 , 23 4 DIR E C T 23 4 OT H E R 32 9 69 6 LN 1 91 7 14 5 16 4 46 0 06 0 72 6 37 3 28 5 1, 4 9 5 21 7 TO T A L C O R P O R A T E O P E R A T I O N S E X P 46 4 , 22 3 54 7 21 8 51 9 93 8 10 1 27 4 12 , 95 0 15 4 37 9 99 1 10 9 , 47 2 % D I S T R I B U T I O N 10 0 , 00 0 0 % 1. 4 1 0 3 % 47 , 07 2 0 % 00 0 0 % 27 9 1 % 21 , 81 5 7 % 78 9 6 % 54 1 1 % 00 0 0 % 08 1 7 % 0.4 2 8 9 % 23 , 58 1 7 % 00 0 0 % EQ U A L A C C E S S E X P E N S E LN 5 + D I R E C T IN T E R E S T A N D R E L A T E D I T E M S 75 0 0 CA P I T A L L E A S E S LN 4 + D I R E C T CU S T O M E R D E P O S I T S LN 6 + D I R E C T OT H E R F I X E D C H A R G E S - O P E R A T I N G 10 0 , 00 % 26 3 04 1 LN 6 36 2 64 7 60 0 61 5 71 2 42 1 43 2 07 5 17 6 OT H E R F I X E D C H A R G E S - N O N O P E R A T I N G 00 % DI R E C T TO T A L 10 0 , 00 % 26 3 04 1 36 2 64 7 60 0 61 5 71 2 42 1 43 2 07 5 17 6 -- - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - -- - - -- - - - -- - - - - - - -- - -- - - - , - - - - - - - -- , -- - BA S I S F O R A C T U A L I N C O M E T A X A L L O C , TO T A L O P E R A T I N G R E V E N U E S RE C O R D S LE S S : O P E R A T I N G E X P E N S E A N D T A X 50 7 , 25 1 VA R I O U S 12 0 15 4 99 4 32 4 55 0 89 1 73 4 44 , 80 2 57 2 60 8 59 8 20 5 : I N T E R E S T - C A P I T A L L E A S E LN 1 6 : O P E R A T I N G F I X E D C H A R G E S 26 3 04 1 LN 1 7 36 2 64 7 60 0 60 , 61 5 71 2 42 1 43 2 07 5 17 6 : O T H E R I N C O M E A D J B A S E D O N P L A N T LN 2 + D I R E C T : O T H E R I N C O M E A D J B A S E D O N E X P LN 1 + D I R E C T NE T T A X A B L E I N C O M E 77 0 29 2 42 , 4 8 2 24 5 , 64 1 92 5 61 1 50 6 71 , 4 4 7 22 3 00 3 68 3 68 6 38 1 % D I S T R I B U T I O N 10 0 , 00 0 0 % 53 3 5 % 44 , 96 4 3 % 00 0 0 % 51 3 4 % 22 , 07 3 7 % 57 9 0 % 81 2 9 % 00 0 0 % 10 8 4 % 63 8 3 % 24 , 77 6 5 % -- - - - -- - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - - - - -- - - - - - - - - -- - - - - - - , - - - - - - - OP E R A T I N G T A X E S FE D E R A L I T C A M O R T I Z A T I O N 72 1 0 LN 2 + D I R E C T ST A T E I T C A M O R T I Z A T I O N 72 1 0 LN 2 + D I R E C T OP E R A T I N G F E D E R A L I N C O M E T A X 72 2 0 50 0 LN 2 8 51 4 06 3 50 7 39 5 86 4 60 7 21 4 30 0 OP E R A T I N G S T A T E & L O C A L I N C , T A X 72 3 0 LN 2 8 OP E R A T I N G T A X E S - O T H E R 72 4 0 24 8 LN 2 + D I R E C T 58 8 15 1 65 0 70 3 90 8 77 0 37 4 12 , 05 0 OP E R A T I N G T A X E S - D I R E C T A S S I G N 72 4 3 DI R E C T TO T A L O P E R A T I N G T A X E S 77 3 10 1 23 9 15 7 09 7 77 2 37 8 58 8 20 . 35 0 R:\ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y \ M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " (g ) 2 0 0 1 T e l e l n f o S y s t e m s , I n c , v 2 , II 8 . . 7/ 2 3 / 2 0 0 3 Mi d v a l e T e l e p h o n e E x c h a n g e , I n c , - I D - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S AL - 1o f DE V E L O P M E N T O F A L L O C A T I O N R A T I O S AL , 1 o f 1 TO T A L AL L O C A T I O N AL L O C A T I O N R A T I O S CO M P A N Y BA S I S AL L O C A T E D L O O P S - C O E 22 2 SP F 28 6 26 8 59 2 PE R C E N T D I S T R I B U T I O N 10 0 , 00 0 0 % 75 8 0 % 23 , 44 4 1 % 00 0 0 % 30 9 3 % 21 , 92 7 1 % 27 5 0 % 63 6 7 % 00 0 0 % 24 5 5 % 00 0 0 % 48 . 4 0 4 3 % 00 0 0 % AL L O C A T E D L O O P S - C W F 22 2 SP F 28 6 26 8 59 2 PE R C E N T D I S T R I B U T I O N 10 0 , 00 0 0 % 75 8 0 % 23 , 44 4 1 % 00 0 0 % 30 9 3 % 21 , 92 7 1 % 27 5 0 % 63 6 7 % 00 0 0 % 24 5 5 % 00 0 0 % 48 . 4 0 4 3 % 00 0 0 % AL L O C A T E D C I R C U I T T E R M - C O E 21 4 TO L L M O U 10 9 XX X PE R C E N T D I S T R I B U T I O N 10 0 , 00 0 0 % 66 7 5 % 51 , 02 9 9 % 00 0 0 % 73 8 3 % 34 , 81 6 6 % 60 7 5 % 14 0 2 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % AL L O C A T E D C I R C U I T M I L E S - C W F 31 2 7 , CM M 90 , 15 2 8 , 33 , 12 7 2 , 13 6 , 65 , XX X PE R C E N T D I S T R I B U T I O N 10 0 , 00 0 0 % 88 0 2 % 48 , 88 3 4 % 00 0 0 % 08 3 9 % 40 , 69 1 2 % 35 7 5 % 10 3 8 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % AL L O C A T E D E X C H W I D E B A N D L O O P S WB M O U PE R C E N T D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % AL L O C E X C H W I D E B A N D C H A N ( M O U ' WB M O U PE R C E N T D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % AL l O C I X W I D E B A N D CH A N ( M O U M I L E S ) WB M O U M I PE R C E N T D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % AL l O C A T E D T O L L M E S S A G E S ( S P + R C ) 36 7 60 9 DI R E C T 83 5 65 9 25 5 88 3 23 2 PE R C E N T D I S T R I B U T I O N 10 0 , 00 0 0 % 49 1 5 % 24 , 93 3 8 % 69 , 60 7 4 % 96 7 3 % 00 0 0 % All O C A T E D U S E R S PE R C E N T D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % R\M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t s t u d y l M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xt s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " (Q 2 0 0 1 T e l e l n f o S y s t e m s . I n c , v 2 , . . 7/ 2 3 / 2 0 0 3 Mi d v a l e T e l e p h o n e E x c h a n g e , I n c , - 1 0 - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S CW C - CA S H W O R K I N G C A P I T A L W O R K S H E E T CW C - TO T A L AL L O C A T I O N DE S C R I P T I O N CO M P A N Y BA S I S PL A N T S P E C I F I C E X P E N S E S 79 9 03 1 LN 2 7 12 , 94 5 36 7 14 9 13 , 39 9 16 1 , 31 3 16 , 7 9 6 12 0 88 1 77 7 20 5 65 1 PL A N T N O N S P E C I F I C E X P E X C L D E P & A M O R T 93 0 VA R I O U S 92 1 CU S T O M E R O P E R A T I O N S E X P - M A R K E T I N G LN 1 2 CU S T O M E R O P E R A T I O N S E X P - S E R V I C E S 17 7 37 6 LN 4 4 59 4 89 7 88 0 11 , 4 9 9 50 7 CO R P O R A T E O P E R A T I O N S E X P E N S E 46 4 22 3 LN 1 3 54 7 21 8 51 9 93 8 10 1 27 4 95 0 15 4 37 9 99 1 10 9 , 4 7 2 EQ U A L A C C E S S E X P E N S E LN 1 5 OT H E R E X P E N S E - C O N T R I B U T I O N S 12 , LN 1 4 IN T E R E S T O N C U S T O M E R D E P O S I T S 12 , LN 1 7 FE D E R A L I N C O M E T A X ( A C T U A L ) 50 0 12 , LN 3 1 51 4 06 3 50 7 39 5 86 4 60 7 21 4 30 0 ST A T E I N C O M E T A X ( A C T U A L ) LN 3 2 OT H E R O P E R A T I N G T A X 24 8 LN 3 3 58 8 15 1 65 0 70 3 90 8 77 0 37 4 05 0 OT H E R O P E R A T I N G T A X - D I R E C T A S S I G N LN 3 4 GR O S S R E C E I P T S T A X ( A C T U A L ) RE C O R D S IN T E R E S T O N C A P I T A L L E A S E S LN 1 6 OT H E R F I X E D C H A R G E S - O P E R A T I N G 26 3 04 1 LN 1 8 36 2 64 7 60 0 61 5 71 2 42 1 43 2 07 5 17 6 TO T A L C A S H W O R K I N G C A P I T A L E X P E N S E S 78 1 37 4 55 0 77 1 37 2 09 4 40 2 , 18 2 72 9 07 3 78 4 43 0 46 5 16 1 CA S H W O R K I N G C A P I T A L R A T I O RE C O R D S 04 1 1 0 04 1 1 0 04 1 1 0 04 1 1 0 04 1 1 0 04 1 1 0 04 1 1 0 04 1 1 0 04 1 1 0 04 1 1 0 04 1 1 0 CA S H W O R K I N G C A P I T A L 21 4 05 0 31 , 70 3 03 1 53 0 04 4 23 6 42 9 11 8 MI N I M U M B A N K B A L A N C E /L N 1 6 WO R K I N G C A S H A D V A N C E S /L N 1 6 TO T A L C A S H W O R K I N G C A P I T A L 21 4 05 0 70 3 03 1 53 0 04 4 23 6 42 9 11 8 R: \ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y \ M T E - ID \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , x1 s 20 0 2 In t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " (0 ) 2 0 0 1 Te l e l n f o S y s t e m s , I n c , v 2 , -- - -- - -- - -- . Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - ID - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 71 2 3 1 2 0 0 3 AL L O C A T I O N R A T I O S TO T A L NE T I N V E S T M E N T S U M M A R Y GE N E R A L S U P P O R T F A C I L I T I E S 21 1 0 10 0 , 00 0 0 % 1.4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % CE N T R A L O F F I C E S W I T C H I N G E Q U I P 22 1 0 10 0 , 00 0 0 % 97 0 0 % 82 0 3 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 15 , 00 0 0 % 00 0 0 % OP E R A T O R S Y S T E M S E Q U I P M E N T 22 2 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CE N T R A L O F F I C E T R A N S M I S S I O N E Q U I P 22 3 0 10 0 , 00 0 0 % 25 0 2 % 40 , 59 4 9 % 00 0 0 % 90 3 4 % 28 , 53 0 6 % 95 7 4 % 57 5 4 % 00 0 0 % 09 7 7 % 00 0 0 % 20 , 09 0 4 % 00 0 0 % IN F O R M A T I O N O R I G I T E R M E Q U I P M E N T 23 1 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CA B L E A N D W I R E F A C I L I T I E S 24 1 0 10 0 , 00 0 0 % 11 0 5 % 27 3 9 8 9 % 00 0 0 % 47 6 3 % 24 , 75 6 9 % 59 2 0 % 68 6 6 % 00 0 0 % 19 8 5 % 65 1 5 % 39 , 12 9 0 % 00 0 0 % TA N G I B L E A S S E T S 26 8 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % IN T A N G I B L E A S S E T S 26 9 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TO T A L P L A N T I N S E R V I C E NC 20 0 1 10 0 , 00 0 0 % 1. 4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % PR O P E R T Y H E L D F O R F U T U R E U S E 20 0 2 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % PL A N T U N D E R C O N S T R U C T I O N 20 0 3 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % RE S E R V E D F O R F U T U R E U S E 20 0 4 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TE L E P H O N E P L A N T A D J U S T M E N T 20 0 5 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % NO N O P E R A T I N G P L A N T 20 0 6 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % GO O D W I L L 20 0 7 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TO T A L P R O P E R T Y , P L A N T & E Q U I P 10 0 , 00 0 0 % 1. 4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % AC C U M D E P R - PL A N T I N S E R V I C E 31 0 0 10 0 , 00 0 0 % 60 2 4 % 44 , 50 7 7 % 00 0 0 % 53 5 0 % 19 , 85 3 3 % 06 9 9 % 82 9 2 % 00 0 0 % 12 0 9 % 76 8 3 % 27 , 71 3 2 % 00 0 0 % AC C U M D E P R E C I A T I O N - F U T U R E U S E 32 0 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % AC C U M A M O R T - TA N G I B L E P R O P E R T Y 34 0 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % AC C U M A M O R T - IN T A N G I B L E P R O P E R T Y 35 0 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % AC C U M A M O R T - TE L P L A N T A D J 36 0 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % NO N C U R R E N T D E F E R R E D I N C T A X - N E T 43 4 0 10 0 , 00 0 0 % 19 7 9 % 32 , 89 7 1 % 00 0 0 % 31 8 6 % 35 , 71 1 6 % 84 7 1 % 56 3 0 % 00 0 0 % 11 3 3 % 76 4 8 % 24 , 58 6 6 % 00 0 0 % OT H E R D E F E R R E D C R E D I T S - N E T 43 7 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CU S T O M E R D E P O S I T S 10 0 , 00 0 0 % 1. 4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % NE T T E L E P H O N E P L A N T 10 0 , 00 0 0 % 27 8 3 % 34 . 4 6 0 5 % 00 0 0 % 74 9 0 % 23 , 04 4 3 % 55 1 8 % 06 0 8 % 00 0 0 % 16 4 1 % 16 8 9 % 33 , 52 2 3 % 00 0 0 % MA T E R I A L S A N D S U P P L I E S 12 2 0 10 0 , 00 0 0 % 11 0 5 % 27 , 39 8 9 % 00 0 0 % 47 6 3 % 24 , 75 6 9 % 59 2 0 % 68 6 6 % 00 0 0 % 19 8 5 % 65 1 5 % 39 , 12 9 0 % 00 0 0 % IN V E S T M E N T I N N O N A F F I L I A T E D C O ' 14 0 2 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % EQ U A L A C C E S S E Q U I P M E N T 14 3 9 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % OT H E R J U R I S D I C T I O N A L A S S E T S 15 0 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CA S H W O R K I N G C A P I T A L XX X X 10 0 , 00 0 0 % 1. 4 3 4 3 % 43 , 30 2 1 % 00 0 0 % 40 8 7 % 22 , 57 7 1 % 79 1 6 % 68 8 2 % 00 0 0 % 10 0 1 % 58 5 5 % 26 , 11 2 5 % 00 0 0 % NE T T E L P L A N T , M & S A N D C W C 10 0 , 00 0 0 % 27 9 4 % 34 , 54 1 5 % 00 0 0 % 74 2 6 % 23 , 04 8 0 % 55 5 4 % 05 3 4 % 00 0 0 % 16 3 5 % 16 3 6 % 33 , 45 2 5 % 00 0 0 % RI M I M i d v a i e T e l e p h o n e E x c h a n g e l 2 0 0 2 1 2 0 0 2 C o s t S t u d y l M T E - I D I R M S I 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " ' (9 2 0 0 1 T e l e l n f o S y s l e m s , l n G , v 2 , il l .. . 7/2 3 / 2 0 0 3 Mid v a l e T e l e p h o n e E x c h a n g e , l n G , - ID - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S AI C AL L O C A T I O N R A T I O S TO T A L OP E R A T I N G E X P A N D T A X S U M M A R Y NE T W O R K S U P P O R T E X P E N S E 61 1 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % GE N E R A L S U P P O R T E X P E N S E 61 2 0 10 0 , 00 0 0 % 1. 4 6 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 9 4 0 1 % 00 0 0 % CE N T R A L O F F I C E E X P E N S E 62 1 0 10 0 , 00 0 0 % 90 9 3 % 56 , 47 4 4 % 00 0 0 % 79 0 7 % 17 , 59 6 6 % 82 4 0 % 20 5 2 % 00 0 0 % 06 0 2 % 00 0 0 % 18 , 13 9 6 % 00 0 0 % IN F O R M A T I O N O R I G I T E R M E X P E N S E 63 1 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % CA B L E A N D W I R E F A C I L I T I E S E X P E N S E 64 1 0 10 0 , 00 0 0 % 11 0 5 % 27 , 39 8 9 % 00 0 0 % 47 6 3 % 24 , 75 6 9 % 59 2 0 % 68 6 6 % 00 0 0 % 19 8 5 % 65 1 5 % 39 , 12 9 0 % 00 0 0 % OT H E R P L A N T E X P E N S E 65 1 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % NE T W O R K O P E R A T I O N S E X P E N S E 65 3 0 10 0 , 00 0 0 % 46 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % AC C E S S C H A R G E E X P E N S E 65 4 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % FE D E R A L S U P P O R T E X P E N S E 65 4 0 10 0 , 00 0 0 % 00 0 0 % 10 0 , 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % MA R K E T I N G E X P E N S E 66 1 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % SE R V I C E S E X P E N S E 66 2 0 10 0 , 00 0 0 % 89 8 5 % 33 , 76 8 4 % 00 0 0 % 00 0 0 % 35 , 44 9 8 % 6. 4 8 2 8 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 23 , 40 0 5 % 00 0 0 % EX E C U T I V E A N D P L A N N I N G E X P E N S E 67 1 0 10 0 , 00 0 0 % 1. 4 9 1 4 % 44 , 02 9 6 % 00 0 0 % 35 2 6 % 23 , 06 9 7 % 95 0 0 % 62 9 6 % 00 0 0 % 08 6 4 % 0. 4 5 3 5 % 24 , 93 7 2 % 00 0 0 % GE N E R A L A N D A D M I N I S T R A T I V E E X P 67 2 0 10 0 , 00 0 0 % 38 5 3 % 48 , 00 8 8 % 00 0 0 % 25 6 4 % 21 . 4 2 9 6 % 74 0 3 % 51 3 8 % 00 0 0 % 08 0 2 % 0. 4 2 1 3 % 23 , 16 4 3 % 00 0 0 % SU B T O T A L O P E R A T I N G E X P E N S E S 10 0 , 00 0 0 % 1. 4 5 9 7 % 44 , 96 0 8 % 00 0 0 % 33 8 6 % 22 , 53 0 7 % 85 5 2 % 61 1 2 % 00 0 0 % 08 7 2 % 0.4 6 8 5 % 24 , 68 8 1 % 00 0 0 % DE P R E C I A T I O N A N D A M O R T I Z A T I O N 65 6 0 10 0 , 00 0 0 % 61 0 7 % 45 , 17 6 5 % 00 0 0 % 60 0 7 % 20 , 00 8 1 % 08 4 8 % 91 6 4 % 00 0 0 % 11 6 0 % 68 9 3 % 26 , 79 7 7 % 00 0 0 % OT H E R O P E R A T I N G T A X 72 4 0 10 0 , 00 0 0 % 1.4 5 9 3 % 40 , 16 4 9 % 00 0 0 % 61 2 9 % 21 , 60 8 8 % 25 4 4 % 91 2 4 % 00 0 0 % 13 7 9 % 92 7 9 % 29 , 92 1 5 % 00 0 0 % EQ U A L A C C E S S E X P E N S E 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % IN T E R E S T O N C U S T O M E R D E P O S I T S 75 0 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % RE N T R E V E N U E - A C C E S S 52 4 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TO T A L O P E R A T I N G E X P E N S E A N D T A X 10 0 , 00 0 0 % 52 3 4 % 44 , 97 6 5 % 00 0 0 % 45 3 4 % 21 , 45 2 2 % 52 0 8 % 74 4 6 % 00 0 0 % 10 0 1 % 56 8 9 % 25 , 66 0 0 % 00 0 0 % NO N O P E R A T I N G E X P E N S E 73 7 0 AB A N D O N E D C O N S T R U C T I O N 10 0 , 00 0 0 % 46 0 2 % 40 , 12 7 7 % 00 0 0 % 61 3 9 % 21 , 62 2 2 % 25 5 8 % 91 3 6 % 00 0 0 % 13 7 9 % 92 8 5 % 29 , 94 0 1 % 00 0 0 % CO N T R I B U T I O N S 10 0 , 00 0 0 % 1. 4 1 0 3 % 47 , 07 2 0 % 00 0 0 % 27 9 1 % 21 , 81 5 7 % 78 9 6 % 54 1 1 % 00 0 0 % 08 1 7 % 0. 4 2 8 9 % 23 , 58 1 7 % 00 0 0 % OT H E R N O N O P E R A T I N G E X P E N S E 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TO T A L N O N O P E R A T I N G E X P E N S E 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % UN C O L L E C T I B L E S EN D U S E R M S G T O L L S 53 1 0 10 0 , 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 10 0 , 00 0 0 % 00 0 0 % EN D U S E R C O M M O N L I N E 53 2 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % IX C A R R I E R 53 3 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % TO T A L U N C O L L E C T I B L E S 10 0 , 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 10 0 , 00 0 0 % 00 0 0 % AL L O W F O R F U N D S U S E D D U R I N G C O N S T R 73 4 0 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % OT H E R I N C O M E A D J U S T M E N T S XX X X 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % 00 0 0 % R\ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S l u d y \ M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e c o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " ~ 2 0 0 1 T e l e l n f o S y s t e m s . ln G , v 2 , Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - I D - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T l O N S TA X - EF F E C T I V E F E D E R A L I N C O M E T A X R A T E DE S C R I P T I O N AV E R A G E N E T I N V E S T M E N T LN 1 25 0 96 1 25 0 96 1 AS S U M E D R A T E O F R E T U R N F O R E S T I M A T I N G T A X R A T E 90 9 6 % 90 9 6 % RE T U R N O N I N V E S T M E N T LN 1 ' LN 2 41 5 33 3 41 5 33 3 FI T I N C O M E A D J U S T M E N T ( F R O M C O S T S T U D Y ) 26 3 04 1 26 3 04 1 IN V E S T M E N T T A X C R E D I T A M O R T I Z A T I O N LN 2 9 AF T E R T A X I N C O M E B E F O R E T A X C R E D I T S LN 3 - 15 2 , 29 2 15 2 29 2 FIT B E F O R E T A X C R E D I T S ( M U S T E Q U A L L N 1 7 ) 78 , 4 5 3 45 3 TA X A B L E I N C O M E LN 6 + L N 7 23 0 74 5 23 0 74 5 FIT O N $ 0 t o $ 5 0 00 0 ~ 1 5 % 50 , 00 0 00 0 50 0 50 0 FIT O N $ 5 0 00 0 t o $ 7 5 00 0 ~ 2 5 % 00 0 00 0 25 0 25 0 FIT O N $ 7 5 00 0 t o $ 1 0 0 00 0 ~ 3 4 % 00 0 25 , 00 0 50 0 50 0 FIT O N $ 1 0 0 00 0 t o $ 3 3 5 00 0 ~ 3 9 % 13 0 , 7 4 5 13 0 74 5 99 0 99 0 FI T O N $ 3 3 5 00 0 t o $ 1 0 00 0 00 0 ~ 3 4 % FI T O N $ 1 0 00 0 00 0 t o $ 1 5 00 0 00 0 ~ 3 5 % FI T O N $ 1 5 00 0 00 0 t o $ 1 8 33 3 33 3 ~ 3 8 % FI T O N O V E R $ 1 8 , 33 3 33 3 ~ 3 5 % TO T A L T A X A B L E I N C O M E / F I T B E F O R E T A X C R E D I T S LN s 9 . . 23 0 74 5 23 0 74 5 24 0 24 0 EF F E C T I V E F I T T A X R A T E 31 , 74 0 9 % 31 , 74 0 9 % R: I M I M i d v a l e T e l e p h o n e E x c h a n g e l 2 0 0 2 1 2 0 0 2 C o s t S t u d y l M T E - I D I R M S I 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " 7/2 3 / 2 0 0 3 ~ 2 0 0 1 T e l e l n f o S y s t e m s , I n c , v 2 , Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - ID - 1 2 / 3 1 / 0 2 47 2 2 2 6 MO N I T O R 1 o f 1 AN A L Y S I S O F I N C O M E F R O M O P E R A T I O N S OP E R A T I N G R E V E N U E S R E C E I V E D OP E R A T I N G E X P E N S E & O T H E R T A X E S FE D E R A L I N C O M E T A X N E T O F I T C ST A T E I N C O M E T A X N E T O F I T C TO T A L O P E R A T I N G E X P E N S E & T A X OP E R A T I N G I N C O M E FIX E D C H A R G E S - O P E R A T I N G NE T I N C O M E F R O M O P E R A T I O N S RE A L I Z E D R A T E O F R E T U R N .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AN A L Y S I S O F R E V E N U E E X C E S S I D E F I C I E N C Y OP E R A T I N G R E V E N U E S R E C E I V E D RE V E N U E R E Q U I R E M E N T RE V E N U E E X C E S S / ( D E F I C I E N C Y ) 50 7 25 1 85 9 99 2 24 0 90 5 -- - - - - - - - - - 1,4 0 6 35 5 -- - - - - - - - - - 40 6 35 5 -- - - - - - - - - - AL L O C A T I O N BA S I S RE C O R D S 26 3 04 1 S - LN 1 6 + 1 7 -- - - - - - - - - - 66 9 39 6 -- - - - - - - - - - - -- - - - - - - - - - - LN 2 + 3 + 4 LN 1 - LN 5 LN 6 - LN 7 26 , 78 2 8 % L N 6 / S - LN 1 -- - - - - - - - - - - -- - - - - - - - - - - 30 7 88 2 34 2 37 8 58 1 .. . 02 3 01 4 -- - - - - - - - - - 02 3 01 4 -- - - - - - - - - - - -- - - - - - - - - - - LN 1 9 IN P U T PA R T 3 6 S E P A R A T I O N S RE V E N U E M O N I T O R I N G S U M M A R Y 7/ 2 3 / 2 0 0 3 MO N I T O R , 1 o f 1 12 0 15 4 99 4 32 4 55 0 89 1 73 4 44 , 80 2 57 2 60 8 59 8 20 5 18 8 38 6 68 9 01 5 18 9 83 2 17 9 59 1 93 2 5. 4 8 9 21 3 07 6 69 4 10 8 32 1 64 6 17 7 21 3 36 7 26 1 53 8 68 8 -- - - - - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - - - - - - - -- - - - - - - - -- - - - - - - - - -- - - - - - - - -- - - - -- - - - - -- - - , - -- - -- - 23 8 65 9 98 4 66 4 30 7 88 2 34 2 84 4 37 8 58 1 32 5 . 4 4 2 36 2 64 7 60 0 -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ,- - - - - - - - - - - - - - - 07 5 17 6 23 8 65 9 98 4 66 4 84 4 32 5 , 4 4 2 -- - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - , - - - - - - - - - - -- - - 61 5 71 2 42 1 43 2 33 , 10 0 1 % 36 , 38 7 6 % 00 0 0 % 22 , 58 2 3 % 25 . 4 3 9 8 % -- - - - - - - - - - - -- - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - _ _ _ _ _ _ m, - -- - - - - - 18 , 52 7 0 % -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - 60 0 75 0 63 1 26 4 36 8 49 8 27 , 08 3 7 % 05 4 26 5 81 0 65 6 41 3 61 8 -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - -- - - - - - - - - - , - - - - - - - - - -- - - - - - - - ,- - - - - - - - - - - - - - -- - - - - - - 71 2 04 0 44 5 1, 4 3 3 82 5 37 3 -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - -- - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - 49 , 4 4 5 43 3 82 5 37 3 R: \ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y \ M T E - I D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xI s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " 23 , 04 1 1 % 00 0 0 % 16 , 05 5 9 % 12 . 4 0 7 3 % .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . " . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 9 41 0 62 9 , 4 1 0 44 6 78 4 - 7 3 44 6 51 , 78 4 12 7 56 3 12 7 56 3 71 2 04 0 ~ 2 0 0 1 T e l e l n f o S y s t e m s , I n c , v 2 , Mid v a l e T e l e p h o n e E x c h a n g e , I n c , - I D - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S 8- 2 , 1 o f 1 SU M M A R Y O F N E T T E L E P H O N E P L A N T , M & S A N D W O R K I N G C A P I T A L , 1 o f 1 TO T A L AL L O C A T I O N DE S C R I P T I O N CO M P A N Y BA S I S NE T I N V E S T M E N T S U M M A R Y GE N E R A L S U P P O R T F A C I L I T I E S 21 1 0 16 5 94 0 LN 1 0 93 5 72 5 43 , 20 1 8 % 23 0 21 5 56 , 79 8 2 % CE N T R A L O F F I C E S W I T C H I N G E Q U I P 22 1 0 1. 7 9 4 96 7 S- 4 LN 5 2 52 5 72 2 85 , 00 0 0 % 26 9 24 5 15 , 00 0 0 % OP E R A T O R S Y S T E M S E Q U I P M E N T 22 2 0 S- 4 LN 4 1 00 0 0 % 00 0 0 % CE N T R A L O F F I C E T R A N S E Q U I P 22 3 0 88 8 73 1 S- 4 LN 7 8 29 2 66 4 44 , 74 8 5 % 59 6 06 7 55 , 25 1 5 % IN F O R M A T I O N O R I G / T E R M E Q U I P M E N T 23 1 0 LN 1 7 00 0 0 % 00 0 0 % CA B L E A N D W I R E F A C I L I T I E S 24 1 0 01 4 91 5 LN 4 2 80 3 60 7 29 , 98 5 6 % 21 1 30 8 70 , 01 4 4 % TA N G I B L E A S S E T S 26 8 0 LN 2 9 00 0 0 % 00 0 0 % IN T A N G I B L E A S S E T S 26 9 0 LN 3 6 00 0 0 % 00 0 0 % TO T A L P L A N T I N S E R V I C E NC 20 0 1 12 , 86 4 55 3 55 7 , 71 8 43 , 20 1 8 % 30 6 83 5 56 , 79 8 2 % % D I S T R I B U T I O N 10 0 , 00 0 0 % 43 , 20 1 8 % 56 , 79 8 2 % PR O P E R T Y H E L D F O R F U T U R E U S E 20 0 2 LN 9 00 0 0 % 00 0 0 % PL A N T U N D E R C O N S T R U C T I O N 20 0 3 LN 1 5 00 0 0 % 00 0 0 % RE S E R V E D F O R F U T U R E U S E XX X X LN 2 1 00 0 0 % 00 0 0 % TE L E P H O N E P L A N T A D J U S T M E N T 20 0 5 LN 2 7 00 0 0 % 00 0 0 % NO N O P E R A T I N G P L A N T 20 0 6 DI R E C T 00 0 0 % 00 0 0 % GO O D W I L L 20 0 7 DI R E C T 00 0 0 % 00 0 0 % TO T A L P R O P E R T Y , P L A N T & E Q U I P M E N T 12 , 86 4 55 3 55 7 71 8 43 , 20 1 8 % 30 6 83 5 56 , 79 8 2 % % D I S T R I B U T I O N 10 0 , 00 0 0 % 43 , 20 1 8 % 56 , 79 8 2 % AC C U M D E P R - P L A N T I N S E R V I C E 31 0 0 31 8 , 08 7 LN 1 8 48 6 71 5 47 , 64 5 2 % 83 1 37 2 52 , 35 4 8 % AC C U M D E P R E C I A T I O N - F U T U R E U S E 32 0 0 LN 1 9 00 0 0 % 00 0 0 % AC C U M A M O R T - T A N G I B L E P R O P E R T Y 34 0 0 LN 2 3 00 0 0 % 00 0 0 % AC C U M A M O R T - IN T A N G I B L E P R O P E R T Y 35 0 0 LN 2 4 00 0 0 % 00 0 0 % AC C U M A M O R T - T E L P L A N T A D J 36 0 0 LN 2 5 00 0 0 % 00 0 0 % OP E R . D E F E R R E D I N C O M E T A X - N E T VA R 39 9 , 39 1 LN 3 4 14 1 43 9 35 , 41 3 6 % 25 7 95 2 64 , 58 6 4 % CU S T O M E R D E P O S I T S 40 4 0 75 0 /L N 9 + D I R E C T 32 4 43 , 20 1 8 % 42 6 56 , 79 8 2 % OT H E R U T L l A B - P O S T R E T B E N E F I T S 43 1 0 LN 4 3 00 0 0 % 00 0 0 % OT H E R D E F E R R E D C R E D I T S - N E T 43 6 0 LN 4 2 00 0 0 % 00 0 0 % NE T T E L E P H O N E P L A N T 14 6 32 5 92 9 24 0 37 . 4 8 7 7 % 21 7 08 5 62 , 51 2 3 % % D I S T R I B U T I O N 10 0 , 00 0 0 % 37 . 4 8 7 7 % 62 , 51 2 3 % MA T E R I A L S A N D S U P P L I E S 12 2 0 42 1 LN 3 1 42 2 29 , 98 5 6 % 99 9 70 , 01 4 4 % IN V E S T M E N T I N N O N A F F I L I A T E D C O ' 14 0 2 LN 3 5 00 0 0 % 00 0 0 % NO N C U R R E N T A S S E T S - P O S T R E T B E N E 14 1 0 LN 3 6 00 0 0 % 00 0 0 % EQ U A L A C C E S S E Q U I P M E N T 14 3 9 LN 3 7 00 0 0 % 00 0 0 % OT H E R J U R I S D I C T I O N A L A S S E T S 15 0 0 LN 3 8 00 0 0 % 00 0 0 % CA S H W O R K I N G C A P I T A L XX X X 21 4 78 5 46 , 14 5 0 % 43 0 53 , 85 5 0 % NE T T E L P L A N T , M & S A N D C W C 25 0 96 1 97 2 44 7 37 , 56 3 5 % 27 8 51 4 62 . 4 3 6 5 % % D I S T R I B U T I O N 10 0 , 00 0 0 % 37 , 56 3 5 % 62 , 43 6 5 % RIM I M i d v a i e T e l e p h o n e E x c h a n g e l 2 0 0 2 1 2 0 0 2 C o s t S t u d y l M T E - I D I R M S I 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " 7/ 2 3 / 2 0 0 3 IQ 2 0 0 1 T e l e l n f o S y s t e m s , I n c , v 2 , Mi d v a l e T e l e p h o n e E x c h a n g e , I n c , - 1 0 - 1 2 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S , 1 o f 1 SU M M A R Y O F O P E R A T I N G E X P E N S E A N D T A X S- 8 , 1 o f 1 AL L O C A T I O N DE S C R I P T I O N BA S I S OP E R A T I N G E X P E N S E A N D T A X S U M M A R Y NE T W O R K S U P P O R T E X P E N S E 61 1 0 LN 7 00 0 0 % 00 0 0 % GE N E R A L S U P P O R T E X P E N S E 61 2 0 73 , 36 9 LN 8 31 , 69 7 43 , 20 1 8 % 67 2 56 , 79 8 2 % CE N T R A L O F F I C E E X P E N S E 62 1 0 47 7 66 7 LN 1 5 28 7 . 4 3 3 60 , 17 4 4 % 19 0 23 4 39 , 82 5 6 % IN F O R M A T I O N O R I G / T E R M E X P E N S E 63 1 0 LN 2 1 00 0 0 % 00 0 0 % CA B L E A N D W I R E F A C I L I T I E S E X P E N S E 64 1 0 24 7 99 5 LN 2 5 36 3 29 , 98 5 6 % 17 3 63 2 70 , 01 4 4 % OT H E R P L A N T E X P E N S E 65 1 0 LN 1 1 00 0 0 % 00 0 0 % NE T W O R K O P E R A T I O N S E X P E N S E 65 3 0 LN 1 3 43 , 20 1 8 % 56 , 79 8 2 % AC C E S S C H A R G E E X P E N S E 65 4 0 91 5 , 1 4 a + 1 4 b 91 5 10 0 , 00 0 0 % 00 0 0 % MA R K E T I N G E X P E N S E 66 1 0 LN 1 2 00 0 0 % 00 0 0 % SE R V I C E S E X P E N S E 66 2 0 17 7 37 6 LN 4 4 49 1 34 , 66 6 9 % 11 5 88 5 65 , 33 3 1 % EX E C U T I V E A N D P L A N N I N G E X P E N S E 67 1 0 10 9 29 3 LN 8 + 9 23 0 46 , 87 3 6 % 06 3 53 , 12 6 4 % GE N E R A L A N D A D M I N I S T R A T I V E E X P 67 2 0 35 4 93 0 LN 1 1 + 1 2 17 9 77 4 50 , 65 0 6 % 17 5 15 6 49 , 34 9 4 % SU B T O T A L O P E R A T I N G E X P E N S E S 44 4 56 0 68 9 90 9 47 , 75 9 1 % 75 4 65 1 52 , 24 0 9 % % D I S T R I B U T I O N 10 0 , 00 0 0 % 47 , 75 9 1 % 52 , 24 0 9 % DE P R E C I A T I O N A N D A M O R T I Z A T I O N 65 6 0 08 3 15 9 1 O LN 2 4 + 3 1 52 4 11 7 48 , 38 7 8 % 55 9 04 2 51 , 61 2 2 % OT H E R O P E R A T I N G T A X 72 4 0 27 3 12 , LN 3 3 17 . 4 1 3 43 , 23 7 1 % 86 0 56 , 76 2 9 % EQ U A L A C C E S S E X P E N S E LN 1 5 00 0 0 % 00 0 0 % IN T E R E S T O N C U S T O M E R D E P O S I T S 72 5 0 LN 1 7 00 0 0 % 00 0 0 % RE N T R E V E N U E 52 4 0 LN 4 7 00 0 0 % 00 0 0 % TO T A L O P E R A T I N G E X P E N S E A N D T A X 56 7 99 2 23 1 . 4 3 8 47 , 95 3 4 % 33 6 55 4 52 , 04 6 6 % % D I S T R I B U T I O N 10 0 , 00 0 0 % NO N O P E R A T I N G E X P E N S E 73 7 0 AB A N D O N E D C O N S T R U C T I O N LN 1 0 00 0 0 % 00 0 0 % CO N T R I B U T I O N S LN 1 4 00 0 0 % 00 0 0 % OT H E R N O N O P E R A T I N G E X P E N S E DI R E C T 00 0 0 % 00 0 0 % TO T A L N O N O P E R A T I N G E X P E N S E 00 0 0 % 00 0 0 % % D I S T R I B U T I O N 00 0 0 % 00 0 0 % 00 0 0 % UN C O L L E C T I B L E S EN D U S E R M S G T O L L S 53 1 0 74 1 DI R E C T 00 0 0 % 74 1 00 0 0 % EN D U S E R C O M M O N L I N E 53 2 0 DIR E C T 00 0 0 % 00 0 0 % IX C A R R I E R 53 3 0 DIR E C T 00 0 0 % 00 0 0 % TO T A L U N C O L L E C T I B L E S 74 1 00 0 0 % 74 1 00 0 0 % 00 0 0 % 00 0 0 % AL L O w . F O R F U N D S U S E D O U R . C O N S T f 73 4 0 LN 3 00 0 0 % 00 0 0 % R:I M I M i d v a l e T e l e p h o n e E x c h a n g e l 2 0 0 2 1 2 0 0 2 C o s t S t u d y l M T E - I D I R M S I 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xls 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " 7/ 2 3 / 2 0 0 3 (9 2 0 0 1 T e l e l n f o S y s t e m s , I n c , v 2 , Mid v a l e T e l e p h o n e E x c h a n g e , I n o , - 1 0 - 1 2 / 3 1 / 0 2 47 2 2 2 6 .. . .. . PA R T 3 6 S E P A R A T I O N S 8- 1 10 f 1 RE V E N U E R E Q U I R E M E N T S U M M A R Y 1 o f 1 TO T A L AL L O C A T I O N DE S C R I P T I O N OP E R A T I N G BA S I S RE V E N U E R E Q U I R E M E N T S U M M A R Y NE T I N V E S T M E N T F O R S E T T L E M E N T S 25 0 96 1 NO T E A 97 2 44 7 37 , 56 3 5 % 27 8 51 4 62 . 4 3 6 5 % RA T E O F R E T U R N 90 9 6 % RE T U R N O N I N V E S T M E N T 41 5 33 3 LN 1 ' LN 2 22 1 90 0 53 . 4 2 7 1 % 19 3 43 2 46 , 57 2 9 % AL L O W F O R F U N D S U S E D D U R C O N S T " ( N o r m a l i z e d ) LN 3 1 00 0 0 % 00 0 0 % NE T R E T U R N F O R S E T T L E M E N T S 41 5 33 3 LN 3 - LN 4 22 1 90 0 53 . 4 2 7 1 % 19 3 , 4 3 2 46 , 57 2 9 % FE D E R A L O P E R A T I N G I N C O M E T A X (O P T I O N A L ) 78 , 4 5 3 LN 2 8 51 3 80 , 95 6 5 % 94 0 19 , 04 3 5 % LE S S : F E D E R A L I T C A M O R T I Z A T I O N LN 2 9 00 0 0 % 00 0 0 % NE T F E D E R A L I N C O M E T A X 45 3 LN 6 - LN 7 51 3 80 , 95 6 5 % 94 0 19 , 04 3 5 % ST A T E A N D L O C A L I N C O M E T A X (O P T I O N A L ) 97 7 LN 3 3 79 2 80 , 95 6 5 % 18 5 19 , 04 3 5 % LE S S : S T A T E I T C A M O R T I Z A T I O N LN 3 0 00 0 0 % 00 0 0 % NE T S T A T E I N C O M E T A X 21 , 97 7 LN 9 - LN 1 0 79 2 80 , 95 6 5 % 18 5 19 , 04 3 5 % OP E R A T I N G E X P E N S E A N D T A X 56 7 99 2 LN 2 0 23 1 43 8 47 , 95 3 4 % 33 6 55 4 52 , 04 6 6 % OT H E R A L L O W A B L E E X P E N S E S LN 2 2 + 2 3 00 0 0 % 00 0 0 % UN C O L L E C T I B L E S 74 1 S- 8 LN 3 0 00 0 0 % 74 1 00 0 0 % BA S I S F O R G R O S S R E C E I P T S T A X 02 3 01 4 5+ 8 + 1 1 t h r u 1 5 53 4 64 3 50 , 76 5 3 % 1,4 8 8 37 0 49 , 23 4 7 % 17 a GR O S S R E C E I P T S T A X R A T E (G R O S S U P ) 17 b GR O S S R E C E I P T S T A X LN 1 6 ' LN 1 7 a 00 0 0 % 00 0 0 % LE S S : B - 1 E A S C R E D I T 00 0 0 % 00 0 0 % TO T A L R E V E N U E R E Q U I R E M E N T 02 3 01 4 53 4 64 3 50 , 76 5 3 % 48 8 37 0 49 , 23 4 7 % NO T E A : I N C L U D E S N E T T E L P L A N T F R O M S C H S - LN 3 6 L E S S N C ' s 2 0 0 6 , 20 0 7 A N D 1 4 0 2 O T H E R T H A N R T B S T O C K , w. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . w. . . . . . . . . . . . . . . . . w . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . OP T I O N A L G R O S S U P I N C O M E T A X C A L C NE T R E T U R N F O R S E T T L E M E N T S 41 5 33 3 LN 3 22 1 90 0 53 , 42 7 1 % 19 3 43 2 46 , 57 2 9 % IN T E R E S T A N D R E L A T E D I T E M S E X C L N O N - OP E R 26 3 04 1 LN 1 6 + 1 8 61 0 37 , 48 8 6 % 16 4 43 1 62 , 51 1 4 % OT H E R I N C O M E A D J U S T M E N T S LN 2 5 + 2 6 00 0 0 % 00 0 0 % TO T A L I N C O M E A D J U S T M E N T S 26 3 04 1 LN 2 1 + 2 2 61 0 37 . 4 8 8 6 % 16 4 43 1 62 , 51 1 4 % FE D E R A L I T C A M O R T I Z A T I O N LN 2 9 00 0 0 % 00 0 0 % FE D E R A L T A X A B L E I N C O M E 23 0 74 5 18 6 80 3 80 , 95 6 5 % 94 2 19 , 04 3 5 % FE D E R A L I N C O M E T A X 34 , 00 % 78 , 4 5 3 LN 2 5 ' FI T 51 3 80 , 95 6 5 % 94 0 19 0 4 3 5 % FE D E R A L S U R T A X A L L O C - O P E R A T I N G /S - LN 3 4 00 0 0 % 00 0 0 % NE T F E D I N C O M E T A X B E F O R E I T C 45 3 LN 2 6 - LN 2 7 51 3 80 , 95 6 5 % 94 0 19 , 04 3 5 % ST A T E I T C A M O R T I Z A T I O N LN 3 0 00 0 0 % 00 0 0 % ST A T E T A X A B L E I N C O M E 25 2 72 2 20 4 59 5 80 , 95 6 5 % 48 , 12 7 19 , 04 3 5 % ST A T E I N C O M E T A X 70 % 97 7 LN 3 0 ' SI T 79 2 80 , 95 6 5 % 18 5 19 , 04 3 5 % ST A T E S U R T A X E X E M P T I O N /S - LN 3 4 00 0 0 % 00 0 0 % NE T S T A T E I N C O M E T A X B E F O R E I T C TA X : 97 7 79 2 80 , 95 6 5 % 18 5 19 , 04 3 5 % R:I M I M i d v a l e T e l e p h o n e E x c h a n g e l 2 0 0 2 1 2 0 0 2 C o s t S t u d y l M T E - I D I R M S I 2 0 0 2 M T E - ID I n t e r s t a t e c o s t S t u d y - RM S , xJ s 20 0 2 I n t e r s t a t e C o s t S t u d y " PR O P R I E T A R Y I N F O R M A T I O N " 7/ 2 3 1 2 0 0 3 (9 2 0 0 1 T e l e l n f o S y s t e m s , I n o , v 2 , II 8. Mi d v a l e T e l e p h o n e E x c h a n g e , I n c , - ID - - 12 / 3 1 / 0 2 47 2 2 2 6 PA R T 3 6 S E P A R A T I O N S T2 C O S - 1 ( P ) Pa g e 1 o f 1 PR O S P E C T I V E C O S T A N A L Y S I S S U M M A R Y TO T A L C O M P A N Y SU B J E C T T O TE S T Y E A R F O R E C A S T AD J U S T M E N T S SE P A R A T I O N S 7/ 9 3 T H R U 6 / 9 4 TO T A L C O M P A N Y PA R T 6 4 OT H E R (A ) (B ) (C ) (D ) RE V E N U E S 10 0 Ne t w o r k A c c e s s 11 0 Un c o l l e c t i b l e s 60 , 74 1 74 1 12 0 Co m m o n L i n e S u p p o r t 13 0 Lo n g - Te r m 14 0 Tr a n s i t i o n a l 15 0 Mi s c e l l a n e o u s 16 0 Ne t R e v e n u e s EX P E N S E S 17 0 Pl a n t S p e c i f i c 79 9 03 1 79 9 03 1 18 0 Pla n t N o n S p e c i f i c E x c l D e p r & A m o r t 19 0 De p r e c i a t i o n ! A m o r t i z a t i o n 08 3 15 9 08 3 15 9 20 0 Cu s t o m e r O p e r a t i o n s 17 7 , 37 6 17 7 , 37 6 21 0 Ac c e s s 91 5 91 5 22 0 Co r p o r a t e O p e r a t i o n s 46 4 , 22 3 46 4 , 22 3 23 0 AF U D C 24 0 Ot h e r E x p e n s e s a n d A d j u s t m e n t s 25 0 Ta x e s O t h e r t h a n F I T 25 0 62 , 25 0 26 0 To t a l E x p e n s e s a n d O t h e r T a x e s 58 9 , 96 9 58 9 96 9 FI T A D J U S T M E N T S 27 0 Ad j u s t m e n t s f o r F I T 26 3 04 1 26 3 04 1 28 0 Am o r t i z e d I T C 29 0 Fe d e r a l I n c o m e T a x e s 78 , 4 5 3 78 , 4 5 3 30 0 T O T A L E X P E N S E S A N D T A X E S 66 8 , 4 2 2 66 8 , 4 2 2 TE L E P H O N E P L A N T I N S E R V I C E 31 0 Ge n e r a l S u p p o r t 16 5 , 94 0 16 5 , 94 0 32 0 Ce n t r a l O f f i c e E q u i p m e n t - S w i t c h 79 4 , 96 7 79 4 96 7 33 0 Ce n t r a l O f f i c e E q u i p m e n t - T r a n s 88 8 73 1 88 8 , 73 1 34 0 Ca b l e a n d W i r e 01 4 , 91 5 01 4 , 91 5 35 0 In f o O r i g , T e r m E q u i p m e n t 36 0 Am o r t i z a b l e A s s e t s 37 0 To t a l P l a n t i n S e r v i c e 86 4 55 3 12 , 86 4 55 3 AD J U S T M E N T S T O T P I S 38 0 De p r e c i a t i o n , A m o r t i z a t i o n R e s e r v e 31 8 , 08 7 31 8 , 08 7 39 0 Ac c u m D e f e r r e d I n c o m e T a x 39 9 39 1 39 9 39 1 40 0 Ot h e r R a t e B a s e A d j u s t m e n t s 10 3 88 5 10 3 88 5 RE T U R N D A T A 41 0 Av e r a g e R a t e B a s e 25 0 96 1 25 0 96 1 42 0 Re t u r n 43 0 Ra t e o f R e t u r n R: \ M \ M i d v a l e T e l e p h o n e E x c h a n g e \ 2 0 0 2 \ 2 0 0 2 C o s t S t u d y \ M T E - 1D \ R M S \ 2 0 0 2 M T E - ID I n t e r s t a t e C o s t S t u d y - RM S , xl s 20 0 2 I n t e r s t a t e C o s t S t u d y * * PR O P R I E T A R Y I N F O R M A T I O N * * 7/ 2 3 / 2 0 0 3 (9 2 0 0 1 T e l e l n f o S y s t e m s , ln G , v 2 ,