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HomeMy WebLinkAbout2007Annual Report.pdfANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31, 2007 COMPANY INFORMATION Exact name of utiity: MIDVALE TELEPHONE EXCHANGE, INC. Address of principal office: P.O. BOX 7, MIDVALE, IDAHO 83645 Telephone Number (Area Code 208) 355.2211 E-Mail address: laner~ruralnetwork.net Cities or towns served: MIDVALE, LAKEVIEW, WARREN, YELLOW PINE, WARM LAKE AND STANLEY, IDAHO; HARPER AND JUNTURA, OREGON; CASCABEL, YOUNG, ELOY, PRESCOTT AND EAST OF SCOTTSDALE, ARIZONA Name and title of officer having custody of the general corporate books of account: LANE R. WILLIAMS, President Address of office where corporate books are kept and phone number: P.O. BOX 7, MIDVALE, IDAHO 83645 208.355.2211 Organized under the laws of the State of: IDAHO Date of organization: 1/9/1908 Form of organization (proprietorship, association, corporation): CORPORATION If a Subchapter S Corporation, please specify: NIA Name and address of controllng company, if any: NIA 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 VICE PRESIDENT DIRECTOR LANE R. WILLIAMS SHIRLEY ARCHER JULIANNE J. WILLIAM: CONLEY WARD P.O. BOX 7, MIDVALE, IDAHO 83645 P.O. BOX 7, MIDVALE, IDAHO 83645 P.O. BOX 7, MIDVALE, IDAHO 83645 P.O. BOX 7, MIDVALE, IDAHO 83645 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 Wil Expire Meetings Attended This year Fees Paid During Year LANE R. WILLIAMS SHIRLEY ARCHER JULIANNE JOHNSON P.O. BOX 7, MIDVALE, IDAHO 83645 CONLEY WARD P.O. BOX 7 MIDVALE, IDAHO 83645 2 2 2 2 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 2 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. Willams Shirley C. Archer President Sec./Treas. 55,935 40,898 John A. Stuart Rob Vowell Dennis Farrington Operations Manager NW Operations Mangager SW Operations Manager 79,491 49,312 62,166 Julianne Johnson Conley Ward Vice President Director 35,325 17,325 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 propert of the utilty; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. Rev 3/02 Page 3 BALANCE SHEET Assets and Other Debits Balance Balance Increase Beginning at End or Title of Account of Year of Year (Decrease) Current Assets 1120 Cash and Equivalents 196,585 18,239 ($178,346) 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 68,843 68,007 (836) 1181 Accts. Rec. Allow. -Telecommunications 1190 Other Accounts Receivable 762,015 759,184 (2,831 ) 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 73,837 103,151 29,314 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 123,579 80,751 (42,828) 1280 Prepayments 16,059 35,508 19,449 1290 Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affilated Companies 602,405 602,405 0 1402 Investment in Nonaffilated Companies 1,339,958 1,380,119 40,161 1406 Nonregulated Investments 343,929 291,410 (52,519) 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 175,223 188,043 12,820 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 24,559,349 27,730,662 3,171,313 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 707,306 696,139 (11,167)2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwil 1,017,240 1,017,240 0 Depreciation and Amortization Accounts 3100 Accumulated Depreciation (13,633,788)(14,986,466)(1,352,678)3200 Accum. Depre. - Held for Future Use 3300 Accumulated Depreciation - Nonoperating 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. - Leasehold Improvements 3500 Accumulated Amortization -Intangible 3600 Accumulated Amortization - Other TOTAL ASSETS $ 16,352,540 $ 17,984,392 $1,631,852 Rev 3/02 Page 4 BALANCE SHEET Liabilties & Stockholders' Equity Balance Balance Increase Beginning at End or Title of Account of Year of Year (Decrease) Current Liabilties 4010 Accounts Payable $621,532 $441,289 $(180,243) 4020 Notes Payable 324,108 113,485 (210,623) 4030 Advance Bilings and Payments 4040 Customer Deposits 1,528 760 (768) 4050 Current Maturities - Long -Term Debt 613,077 965,295 352,218 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 124,587 121,111 (3,476) 4100 Net Current Defer. Oper. Income Taxes 36,500 55,000 18,500 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilities 17,975 16,499 (1,476) 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 Affliated Companies 4270 Other Long-Term Debt 8,639,884 9,771,901 1,132,017 Other Liabilties & 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 1,597,205 1,697,207 100,002 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 25,000 25,000 4520 Additional Paid-In Capital 7,910 7,910 4530 Treasury Stock (64,000)(64,000) 4540 Other Capital 4550 Retained Earnings 4,407,234 4,832,935 425,701 TOTAL LIAB. & OTHER CREDITS 16,352,540 17,984,392 $1,631,852 Rev 3/02 Page 5 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Ye a r Du r i n g y e a r or So l d Ad j u s t m e n t s of Ye a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 13 3 , 8 1 5 13 3 , 8 1 5 21 1 2 Mo t o r V e h i c l e s 36 3 , 3 7 3 (4 1 , 5 5 0 ) 32 1 , 8 2 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 57 7 , 2 1 3 13 7 , 5 4 5 (3 5 , 1 0 0 ) 67 9 , 6 5 8 21 2 1 Bu i l d i n g s 91 4 . 0 1 7 38 , 4 3 4 95 2 , 4 5 1 21 2 2 Fu m i t u r e 21 2 3 Of c e E q u i p m e n t 72 , 3 3 7 72 , 3 3 7 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 17 0 . 1 2 1 20 , 5 3 2 (3 4 , 1 8 7 ) 15 6 , 4 6 6 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 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 3, 6 1 3 , 6 5 2 38 4 , 5 7 7 3, 9 9 8 , 2 2 9 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 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 5, 0 2 6 , 5 6 0 48 2 , 9 9 4 5, 5 0 9 , 5 5 4 23 1 1 St a t i o n A p p a r a t u s 27 , 2 3 2 27 , 2 3 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 93 2 93 2 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 13 . 6 6 0 . 0 9 9 2, 2 1 8 , 0 6 8 15 , 8 7 8 , 1 6 7 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 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 24 , 5 5 9 , 3 5 1 3, 2 8 2 , 1 5 0 (1 1 0 , 8 3 7 ) 0 27 , 7 3 0 , 6 6 4 Re v 3 / 0 2 Pa g e 6 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Ye a r Du r i n g Ye a r or So l d Ad j u s t m e n t s of Ye a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 77 , 3 6 1 77 , 3 6 1 21 1 2 Mo t o r V e h i c l e s 32 3 , 4 4 8 (4 1 , 5 5 0 ) 28 1 , 8 9 8 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 42 5 , 9 9 9 11 3 , 4 4 5 (3 5 , 1 0 0 ) 50 4 , 3 4 4 21 2 1 Bu i l d i n g s 84 5 , 4 8 7 1, 4 0 0 84 6 , 8 8 7 21 2 2 Fu r n i t u r e 54 , 7 3 8 54 , 7 3 8 21 2 3 Of 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 15 1 , 4 5 4 13 , 9 9 7 (2 9 , 1 0 3 ) 13 6 , 3 4 8 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 0 0 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 1, 4 3 1 , 2 8 6 86 , 0 1 0 1, 5 1 7 , 2 9 6 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 0 0 22 2 0 Op e r a t o r S y s t e m s 0 0 22 3 1 Ra d i o S y s t e m s 0 0 22 3 2 Ci r c u i t E q u i p m e n t 2, 3 3 2 , 4 4 6 20 9 , 6 3 6 2, 5 4 2 , 0 8 2 23 1 1 St a t i o n A p p a r a t u s 27 , 2 3 2 27 , 2 3 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 0 0 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 0 0 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 92 8 92 8 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 0 12 , 7 5 4 12 , 7 5 4 24 1 1 Po l e s 0 0 24 2 1 Ae r i a l C a b l e 0 0 24 2 2 Un d e r g r o u n d C a b l e 0 0 24 2 3 Bu r i e d C a b l e 6, 4 6 0 , 5 5 2 44 5 , 5 8 5 6, 9 0 6 , 1 3 7 24 2 4 Su b m a r i n e C a b l e 0 0 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 0 0 24 3 1 Ae r i a l W i r e 0 0 24 4 1 Co n d u i t S y s t e m s 0 0 26 8 1 Ca p i t a l L e a s e s 0 0 26 8 2 Le a s e h o l d I m p r o v e m e n t s 0 0 26 9 0 In t a n g i b l e s 0 0 TO T A L P L A N T A C C O U N T S 12 , 1 3 0 , 9 3 1 88 2 , 8 2 7 (1 0 5 , 7 5 3 ) 0 12 , 9 0 8 , 0 0 5 Re v 3 / 0 2 Pa g e 7 zo ~Õw 0=0.Woow ~.J 0:J 0 :E - :J C"0-o § ct 8 z u - ctU)wæi-zw u.o rn Cñ ~ ~ -.I"0 -.io co C\,.I"C\coC\I"0 T'T'I"0)0)0)I"co CI ..~co C\0)0)io ~,.I"-.U i:I1 ....i-a)cr iñ ..cr T'cri: i:Q)C\0 co C"-.C\co ..co coSw)-C"co C"..io co C\0) I1 ..C\ri ,....m 0 .. 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I- I- ü Cl (i 3 ~ ::.. ~ il~ Cl.._:: Q) ~ 0 ro~ ro 0- 0 0 Q)~ ~ (I~ ~i E~ei~ o E ~ CD e Q) ~ E 2 i: ~ :: 0 ~ 'õ B ~ u Cl:C CD .9 ~ "0 ~ ~ ro ~ c(I 0 ~ ~ ro 5 :J :J ~ CD C ~~ ~ ro ~ !! :J (i :J 5 0 Q) C :J :J ~ Q) 0~ ~ C C/ ø 0 m ~ 0 ø COW 0 ~ ü C/ ü ~ a. 0 a. C ~ m C/ £ C ü ~C\ C" 'V 10 ~ T' C\ C" 'V T' C\ io 0 .. C\ .. .. T'.. C\.. T' C\ C" 'V co.. ..~.v .. T' T' .. .. C\ C\ C\ C\ .. .. .. C\ C" C" T' C\ 'V io co .. C\ C\ C\ C\ C\ C" 'V T' .. .. .. .. .. .. .. .. C\ C\ C\ C\ C\ C\ C" C" C" C" C" 'V 'V 'V 'V 'V 'V 'V 'V C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ C\ 0' CDClIIa. co0'o('.... oi ..C:J §ro~uro Q).. .g2 ~ C0~ro '(3~~ CD"0~:J"0 'S; ~ 'õ ,5;-0 ~..CD N(I ~ro Q) õ:,.Q)..tt 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, Description Date Acquired RTFC NECA Services, Inc. Syringa Networks, LLC Note Receivable Rural Network Services Investment in M & L Enterprises, Inc, Net Non-regulated Cable TV and Internet plant Totals Book Cost of Investments Disposed of This year RECEIVABLES Book Cost of Investments Held at End of Year 117,961 o 3,000 899,096 360,062 602,405 291,410 2,273,934 Itemize amounts show in Accounts 1180, 1190 and 1200, For notes receivable list each note separately and include the maturity date and interest rate, Minor amounts in Account 1210 may be combined, Name of Company NECA Idaho Universal Fund Rural Network Services, Inc. Various carriers for access charges Other Miscellanous Totals Rev 3/02 Amount at End of Year Notes Accounts Receivable Page 10 168,681 31,638 328,706 71,336 158,823 759,184 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor Date of Note Interest Rate Due Date Bank of the Cascades-Line of Credit 7/16/2007 var-bank index rate + ,25%7/16/2008 Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100.00 Name of Creditor SEE SUPPLEMENTAL SHEET Misc less than $100 TOTALS Rev 3/02 Page 11 Face Amount 113,485 113,485 Amount o 438,363 2,436 440,799 Midvale Telephone Inc. IPUC REPORT - ACCOUNTS PAYABLE DECEMBER 31, 2007 VENDOR A.SAP, Inc, Arizona Department of Revenue Arizona Public Service Co, Avista Utilties Bank of the Cascades Bankcard Center Bankcard Center - Zions Bobbie's Catering Bradley & Shirley Blume Bruce Goslovich Buckaroo's Potties & Septics Calix Cascabel Community Chevron City Electric Supply Co. Clear Creek Disposal Codale Electric Supply Coleman Oil Co, Computer Technology, Inc. Conley Ward Corning Cable Systems Coyote Leasing, LLC Dell Financial Services Diana Holmes Discount Tire Co, Ditch Witch of the Rockies Embarq Logistics Inc. Empire Southwest ESPN Expert Plan Farmer's Supply Co-op Fiber Instrument Sales Inc, Gary H, Horton Geraldine P. Maloney Givens Pursley LLP Graybar Electric Co" Inc, Highway Technologies, Inc, Idaho Power Idaho Tractor, Inc, J.D. Bean & Associates Jerry's Country Store Jerrys country Store Jessica Bash Joy Mathews Ken Weyers Les Schwab Tire Center Lynn D. Hall Total 190.60 2,489.18 1,338,90 200,74 20,368.60 1,092,01 39,907,80 1,286,50 28,842,50 5,208,75 140,00 9,463,19 100,00 635,16 2,433,95 127,88 41,276.70 225.51 684.33 815,22 676.75 58,609.21 5,100,70 500,00 761,11 206,14 332.25 1,846.61 471.43 7,949,95 3,410.52 589.44 3,000.00 253,00 10,368,99 750,05 866.46 1,524,12 553,65 115.00 455,68 433.89 1,500,00 500.00 11,327.40 1,662,20 904.08 Page 11 A Midvale Telephone Inc. IPUC REPORT - ACCOUNTS PAYABLE DECEMBER 31, 2007 VENDOR A.SAP, Inc, Material Delivery, Inc, Metlife Dental Mid-State Consultants, Inc. Monte R. Lee & Company Moss Adams, LLP Mountain Vilage Resort MTV Networks, Inc. Nate Basey National Cable TV Co-op Neustar, Inc. Oregon Telecommunications OUS Fund Patriot Disposal, Inc, Payette Printing Company Pleasant Valley Auto Parts Power and Telephone Supplies Quil Corporation Qwest Communications Regence Blue Shield Robert Vowell Ross D, Jacobs Rural Network Services Salmon River Electric Company Shan nons Auto Parts SRP Steve or Kathryn Gilbert Sulphur Springs Valley Sunstate Equipment Co, Symmetricom Taqua Tellabs North America, Inc, Texas Engineering Extension Trumble Greetings, Inc. Unisource Energy Services United Fuel and Energy Universal Service Administration Verizon Verizon Wireless Waste Management of Arizona Zion's Bank Total Accounts Payable over $100 Accounts payable under $100 TOTAL A/C PAY PER REPORT Total 190,60 2,910.45 3,899.17 8,064,71 22,463.02 1,490,00 187.10 186,31 500.00 603,83 342,67 3,500,00 1,265,96 435,93 115,70 288.98 3,240,90 527.40 14,545.37 31,176,00 500.00 18,316.60 890,00 452.44 904.46 460,69 600.00 305,21 3,360,96 6,120,56 8,480,00 1,083,24 17,105,00 109,95 669,61 4,845.44 3,551,51 1,254,12 935.60 102,85 1,075.04 438,362,93 2,436.07 440,799.00 Page 11 A LO N G - T E R M D E B T Ac c o u n t s 4 2 1 0 , 4 2 4 0 , 4 2 5 0 , 4 2 6 0 , 4 2 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e , Da t e Da t e Fa c t Pr e m i u m l D i s c o u n t Cl a s s & S e r i e s of of Am o u n t Ou t s t a n d i n g Ye a r In t e r e s t f o r y e a r of O b l i a a t i o n Is s u e Ma t u r i t y Au t h o r i z e d Ye a r - E n d To t a l Am o r t i z e d Ra t e Am o u n t RT F C va r 20 0 6 - 2 0 1 3 3, 2 9 0 , 1 4 1 va r 18 2 , 2 9 7 RU S va r 20 1 4 - 2 0 2 0 7, 2 3 1 , 2 2 9 2% - 5 % 37 1 , 6 6 7 L. W i l i a m s 7/ 1 / 2 0 0 2 7/ 1 / 2 0 1 2 16 6 , 2 7 5 8% 13 , 5 2 9 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 3, 3 1 0 6% 66 7 Zi o n s B a n k 3/ 7 / 2 0 0 7 3/ 7 / 2 0 1 2 46 , 2 4 1 va r 3, 8 2 0 Re v 3 / 0 2 Pa g e 1 2 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. Class & Series of Stock COMMON Rev 3/02 Number of Shares Authorized 250 Par Value per Share 100 Page 13 Outstanding per Balance Sheet Shares Amount 250 25,000 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-Net 7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Propert 7360 Other Nonoperating Income 7370 Special Charges 7300 Nonoperating Income and Expense 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net 7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions 7500 Interest and Related Items 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net 7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 3/02 6,943,359 6,002,329 941,030 181,587 63,000 244,587 3,089,588 2,917,212 172,376 30,711 30,711 596,534 325,792 425,701 Page 14 259,222 356,794 239,237 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 Billng & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: 817,240 362,132 18,032 15,610 82,587 31,079 223,166 4,772,054 92,935 2,019,274 913,243 503,558 9,134 2,724 103,689 3,997 59,441 363 217 2,472 6,943,359 3,089,588 NECA USF $1,828,500, To what account were they booked? # 5082 State USF $379,660. 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 Expense6120 General Support Expenses 109,269 6121 Land and Building Expenses 6122 Furniture and Artorks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 807,874 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 588,987 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information OriginationlTermination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense6423 Buried Cable Expense 1,413,160 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense 49,757 457,227 254,744 802,182 TOTAL PLANT SPECIFIC OPERATIONS EXPENSE 2,919,290 Rev 3/02 1,563,910 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 3/02 650 650 3,593 2,467 291,015 142,230 295,258 145,347 394,016 166,494 52,109 33,237 74,462 1,463,514 1,623,322 471,169 299,274 1,164,459 6,002,329 Page 17 28,590 6,812 19,610 687,057 742,069 166,410 132,982 465,886 2,917,212 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 7 Na m e o f C e n t r a l O f f i c e : M I 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 : _ R e d c o m M D X , T E K E L E C T 7 0 0 0 Ch e c k on e : Di g i t a l X An a l o g _ Ac c e s s L i n e C a p a c i t y NX X : 2 2 2 - 3 5 5 - 6 3 2 - 6 3 3 - 6 3 6 - 7 7 4 De s i g n : 3 8 4 - 2 0 4 8 - 3 8 4 - 3 8 4 - 3 8 4 - 8 0 0 In s t a l l e d / E q u i p p e d : 1 0 0 - 2 0 4 8 - 1 0 0 - 1 5 0 - 1 6 0 - 7 5 0 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 Ye a r Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . c Di a l T o n e f r o m a n o t h e Mu l t i - Li n e 1- P a r t Re s i d e n c e Si n g l e L i n e Mu l t i - 1- P a r t P a r t 79 8 22 77 6 o o Cu s t o m C a l l n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : N I 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 - M e 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 1 6 0 (I n c l u d e C e n t r e x , P A L , S e m i - P u b . ) Pu b l i c T e l e p h o n e L i n e s _ 3 0 Co m p a n y O f i c i a l L i n e s _ 5 3 Co m p a n y Te s t L i n e s _ 3 7 Su b t o t a l Re s i d e n c e 79 8 Ce n t r e x N. A R . Mu l t i - Li n e 1- P a r t 22 77 6 Bu s i n e s s Si n g l e L i n e Mu l t i - 1- P a r t P a r t y 22 8 1 22 7 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 : 9 3 Pa g e 1 8 Su b t o t a l Bu s i n e s s 22 8 o 1 22 7 To t a l Re s i d e n c e & B u s i n e s s 10 2 6 o 23 10 0 3 Lo c a l E x c h a n g e 1 22 2 2 35 5 3 63 2 4 63 3 5 63 6 6 77 4 7.8.9 TO T A L S 11 13 . 14 15 . 16 . 17 . 18 Re v 3 / 0 2 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G ( Y E A R ) 2 0 0 7 Av e r a g e # Lo c a l C a l l s To l l C a l l s O r i g i n a t e d ( T o t a l o f a l l C a r r i e r s ) of Cu s t o m e r Nu m b e r Av g . l Av g . l 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 47 N/ A 46 0 4 33 3 2 79 3 6 16 8 . 8 5 36 9 N/ A 28 , 7 2 6 28 , 9 9 7 57 , 7 2 3 15 6 . 4 3 39 N/ A 8, 6 9 3 1, 4 9 6 10 , 1 8 9 26 1 , 2 6 83 N/ A 10 , 6 8 0 2, 5 1 4 13 , 1 9 4 15 8 , 9 6 72 N/ A 11 , 3 5 1 2, 0 1 7 13 , 3 6 8 18 5 , 6 7 53 0 N/ A 68 , 5 9 3 13 , 0 8 3 81 , 6 7 6 15 4 , 1 1 11 4 0 13 2 , 6 4 7 51 , 4 3 9 LO C A L C A L L S A R E N O T M E A S U R E D Pa g e 1 9 18 4 , 0 8 6 16 1 . 4 8 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31,2007 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_X_No_ Included in directory Yes_X_No_ Date of notification Alternate method of notification ON WEB SITE AND MAIL STUFFER APPLICATION PROCEDURES, Rule IDAPA 31.41,01.403.02 Record of Complaints: Number received by Company 2 Category of complaints (if known): Deposit Disputes Charges on Bil DeniallT erm ination Quality or Availabilty of Service 2 Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 CERTIFICATE State of Idaho ) ) ssCounty of Washington ) WE, the undersigned Lane R. Wiliams of the MIDVALE TELEPHONE EXCHANGE, INC. utilit, on our oath do severally say that the fooing return has been prepared under our directon, from th orinal boks, pape, and recrds of said utilit; that we have carefully examined same, and declre the same to be a co statement of th busne afrs of said utlit for th pe covered by the return in respe to ea and every mater and thing threin set fort, to the be of our knolege, informatn and belie. . ~.c rt . UØ .: (Chief Ofcer) -- ~ .-i~~"- (~r in Charge of Accunts) Subscrbe and Swrn to Before Me this 16th day of April, (Year) 2008~:tx3~ sgnJJ Gleis K. Bonner Nota Public Stae of Idaho My Commisio expires Ma 6 , (Year) 2012. GLENNIS K, BONNER Notary Public State of Idaho i Ji Rev 312 gdexcenelsanulrplannualrpt Pae 21 Mid v a l e T e l e p h o n e E x c h a n g e - I d a h o St u d y A r e a : 4 7 2 2 2 6 St u d y V e a r . 2 0 0 6 LI N E DE S C R I P T I O N SO U R C E 5,4 1 5 , 2 6 8 5, 4 1 5 , 2 6 8 1 N e t T e l e c o m P l a n t 2 R a t e B a s e A d j u n t # 1 3 R A T E BA S E ,L n 4 8 Re c o r d s lo 1 . 2 " R a l e o f R e t u r n 5 R E T U R N O N R A T E B A S E Re c o r d s ln 3 - " 8 R e t u A d j u s t n t # 1 7 N E T RE T U R N Re c o r d s ln 5 . 6 8 F i x e d C h a r g e s 9 A m o r t a t i n o f E x c e D e T a x e s 10 C a p i t l i z e d P a Y l O R T a x e s 11 D e p r e c i a t i o n A d j u s t m e n t 12 F I T A l l o w a n c s l l s l I n c e s 13 I n c A d j A R o e o n 2 0 0 1 14 I n c A d J A l l o o n B i g 3 E x p 15 T o t a l M i s I n c A d j u s t n t 18 A F T E R T A X I N C O M E .L n 2 4 ,L n 4 7 ,L n 5 0 ,L n 5 3 ,L n 2 2 ,L n 5 9 + 6 0 ,L n 6 1 + 6 2 ,L n 6 3 No t e 1 17 S t a t I n c o m e T a x 18 S t a l e I T C A m o r t z a t i n 19 N e t F e d e r a l I n c o m e T a x 20 F e d e r a l l T C A m o r t z a t i o n 21 O p e r a t i n g E x p e n s e s & T a x e s 22 N o n o p e r a i n g E x p e n s e s 23 U n c i i e c l b l e s 24 O t h e r A d u s m e n t ( N e t R R ) 25 N E T R E V E N U E R E Q U I R E M E N T 26 G r o s s R e c e i p t s T a x 27 7 3 4 0 A t w F d s U s e d O u r C o n s Ln 5 2 ,lo 4 5 Ln 4 3 ,L n 4 4 ,L n 1 7 8- 1 0 . l o 1 7 + 1 8 ,L n 5 7 Re c o r d s lo 7 + 1 7 . . 2 3 - 2 4 No t e 2 ,lo 1 5 Ln 2 5 + 2 6 - 2 7 Ln 2 8 1 8 a 28 R E V E N U E R E Q U I R E M E N T 29 D i s t i b u i o n o f L I n e 3 0 fO T A L CO M P A N V a 8.3 2 9 8 % 45 1 . 0 8 3 45 1 , 0 8 3 18 7 , 4 2 7 26 3 , 6 5 6 38 , 5 1 8 14 8 , 1 2 6 2,6 4 3 , 8 0 7 3,2 7 9 , 5 3 3 3,2 7 9 , 5 3 3 10 0 . 0 0 0 % 2, 1 3 5 , 6 3 3 2, 1 3 5 , 6 3 3 11 . 2 5 0 0 24 0 , 2 5 9 24 0 , 2 5 9 65 , 6 5 6 17 4 , 6 0 3 23 , 7 0 9 89 , 9 4 7 1,1 4 1 , 1 8 6 1,4 9 5 , 0 6 1 1,4 9 5 , 0 8 1 45 . 5 8 8 2 % RE V E N U E R E Q U I R E M E N T S U M M A R V 71 2 0 1 0 0 7 8- 1 :i ~ ~ i ~ - i ~ : - : : ; ; l ? l ~ § ~ ~ ~ i t l ~ 1 ~ i % l m i ¡ i ~ : ~ ~ : ~ ~ J ~ ~ r ~ ~ ~ : ; : . . . : . : In " L A T A I n t f l T A MS G P L M S G P L M S G 'd l r e I e n r o l I h 22 1 , 2 6 8 22 1 , 2 6 8 11 . 2 5 0 0 % 24 . 8 9 3 18 , 0 4 3 2, 4 5 0 9,2 9 5 10 7 , 9 2 3 14 4 , 5 6 0 14 4 , 5 6 0 4. 0 8 0 % 24 , 8 9 3 6, 8 5 0 10 2 , 5 7 3 10 2 , 5 7 3 11 . 2 5 0 0 % 11 , 5 3 9 18 5 , 9 1 6 16 5 , 9 1 6 5. 9 0 9, 7 8 9 5. 9 0 1,5 5 4 , 2 9 1 1,5 5 4 , 2 9 1 5. 9 0 % 91 , 7 0 3 64 , 0 9 9 5. 9 0 3,7 8 2 91 , 7 0 3 48 , 0 0 43 , 3 0 3 5, 8 8 22 , 5 7 3 22 , 5 7 3 0.6 8 3 % 64 , 0 9 9 85 , 1 2 3 1,0 8 6 , 3 6 5 11 . 2 5 0 0 11 , 5 3 9 3, 1 8 8 9, 7 8 9 5, 1 2 9 85 , 1 2 3 5. 9 0 % 5.0 2 2 1, 0 6 . 3 8 5 5. 9 0 5.9 0 0 0 % 64 . 0 9 6 8,3 5 1 1, 1 3 4 4,3 0 2 39 , 6 5 4, 6 8 0 63 3 2,4 0 1 22 , 3 0 7 60 9 , 9 3 0 3,7 8 2 5, 0 2 2, 6 8 6 64 , 0 9 6 33 . 5 2 8 78 , 4 6 4 2, 0 0 1, m 2, 3 5 6 32 0 30 , 5 6 7 56 , 6 3 1 91 , 2 8 8 72 9 , 8 2 1 24 1 4,1 5 1 58 , 8 3 1 1.7 2 6 8 % 91 , 2 8 6 2.7 8 3 5 % 72 9 , 8 2 1 22 . 2 5 3 8 % 91 3 1,2 1 4 15 , 7 4 7 82 2 , 9 4 3 17 , 6 3 7 26 , 0 6 32 , 6 4 4 70 6 , 9 3 6 32 . 6 4 4 0. 9 9 5 4 % 70 6 , 9 3 6 21 . 5 5 6 0 % 64 . 0 9 6 I . I N C O M E T A X E S I 30 N e R e t u r n L n 7 31 F i x e d C h a r g e s 32 A m o r t z a t i o n o f E x c e n D e f e l ' T a x e s 33 C a p i l i z e d P a y r o l l T a x e s 34 D e p r c i a t n A d j u s t e n t 35 F I T A l l o w a n c e s I l s a l l o a n c e s 36 I n c A d j A l I c o n 2 0 0 1 37 I n c A d ) A l t o e o n B i g 3 E x p 38 F e d . r a l l T C A m o r t a t n 39 T o t a l I n c o m e A d j u s 40 F e d e r a l T a x a b l e I n c o m e 41 F e d e r a l In c o m e T a x 42 F e d e r a l S u r . T a x A l l o c a t n 43 N e t F e d e r a l In c o m e T a x Ln 6 Ln . Ln 1 0 Ln 1 1 Ln 1 2 ln 1 3 Ln 1 4 ,L n 4 4 Ln 3 1 + 3 5 . . 3 7 Ln 3 Q . 3 9 G m . s U p 34 . 0 0 0 % Re c o r d s Ln 4 1 - 4 2 . 3 8 44 N e t Re t u r n Ln 3 0 45 F i x e d C h a r g e s 46 O t h e r S I T A d J u e n t s 47 F e d e r a l In c o m e T a x Ln 3 1 Re c o r d s Ln 4 1 48 S t a t e T a x a b l e I n c o m e 49 S t a t e I n c o m e T a x 50 S t a l e S u r . T a x A l I c a n 51 S t a l e I T C A m o ~ l z a i 52 N e t S t a t e I n c o m e T a x lo 4 4 - 7 G m s s U p 8. 2 2 0 % Re c o r d s ,L n 4 5 Ln 4 9 - Q . 1 4,1 5 1 Pro p r i e t a r y I n f n n a t l o n 45 1 , 0 8 16 7 , 4 2 7 18 7 , 4 2 7 42 9 , 7 6 1 14 6 , 1 2 8 14 6 , 1 2 6 45 1 , 0 6 3 16 7 , 4 2 7 14 6 , 1 2 6 46 6 , 2 9 9 36 , 5 1 8 24 0 , 2 5 9 85 , 6 5 8 65 , 6 5 6 26 4 , 5 5 0 89 , 9 4 7 69 , 9 4 7 24 0 , 2 5 9 65 , 6 5 8 89 , 9 4 7 28 8 , 2 5 9 23 , 7 0 9 38 . 5 1 8 23 , 7 0 9 24 , 8 9 3 8,8 5 0 8,8 5 0 27 , 3 3 8 9,2 9 5 9,2 9 5 24 , 6 9 3 6, 6 5 0 9, 2 9 5 29 , 7 6 8 2, 4 5 0 2, 4 5 0 11 , 5 3 9 9,7 6 9 3,1 8 8 5,1 2 9 3,1 8 8 5,1 2 9 7,0 6 1 2,4 0 1 12 , 6 5 3 4,3 0 2 4,3 0 2 11 , 5 3 9 3, 1 8 8 4, 3 0 2 13 , 7 8 7 1, 1 3 4 2,4 0 1 9, 7 8 9 5, 1 2 9 2,4 0 1 7, 6 9 3 63 3 1,1 3 4 63 3 Mo s s A d a m s . L L P Vim 1 o 3 . 2 91 , 7 0 3 48 . 4 0 0 48 , 4 0 0 65 , 6 1 0 22 , 3 0 7 22 , 3 0 7 91 , 7 0 3 46 , 4 0 0 22 , 3 0 7 71 , 4 9 0 5.6 8 0 5,8 8 0 3,7 8 2 2, 0 0 9 5, 0 2 2 2. 6 6 6 33 . 5 2 8 2, 0 0 2, 6 8 5 91 3 2, 6 6 6 3. 5 7 0 1,2 1 4 1,2 1 4 5, 0 2 2 2, 6 8 1.2 1 4 33 , 5 2 8 46 . 3 1 4 15 , 7 4 7 91 3 3,7 8 2 2, 0 0 91 3 2.9 2 6 24 1 15 , 7 4 7 64 . 0 9 6 33 , 5 2 8 15 , 7 4 7 3,6 9 0 32 0 50 , 4 6 5 4,1 5 1 24 1 32 0 10 1 2 3 Mid v a l e T e l e p h o n e E x c h a n g e ~ I d a h o Stu d y A r e a : 4 n 2 2 6 Stu d y Y e a r . 2 0 0 6 LI N E DE S C R I P T I O N 48 2 , 1 9 4 1 2 1 1 0 L a n d & S u p p o r t A s s e t s 2 2 2 1 0 C o E - S W i t C h l n g 3 2 2 2 0 C O E - o p e r a t o r 4 2 2 3 0 C O E - T r a n s m l s s l o n 5 2 3 1 0 I n f o O r i r r e r m E Q u I p 82 4 1 0 C & W F 7 T o l a l C O E , I O T , C & W F 8 D i s t r i b u t i o n o f L i n e 1 9 E q u a l A c c e s s . I n v e s t m e n t 10 2 6 8 0 T a n g i b l e A s s e t s 11 T E L E C O M P L T I N S V C - E X C L 2 8 9 0 12 O i s t r i b u l i o n of Li n e 1 1 13 2 6 9 0 I n t a n g i b l e A s s e t s 14 2 0 0 1 T E L E C O M P L A N T I N S V C 15 D i s r i b u t o n o f L i n e 1 4 18 2 1 1 0 L a n d A s s e t s 17 2 0 0 1 T P I S x l L a n d 18 D i s t ñ b u l i o n o f L I n e 1 7 19 2 0 0 2 P r o p H i d F u t T e l e c o m U s e 20 2 0 0 P l a n t U n d e r C O n s t n 21 2 0 0 T e l e c o m P l a n t A d j u s t m e n t 22 T O T A L T E L E C O M P L A N T 23 1 2 2 0 M a t r i a l s a n d S u p p l i e s 24 1 5 0 0 O t h e r J u r i A s s e t s e t 25 3 1 0 0 A c c m u l a t e d D e p r e c i a t i o n 26 E q u a l A c c s s . A c e u m D e p r e c i a t i o n 27 3 2 0 0 A c e D e p . H l d f o r F u t U s e 28 3 4 0 0 A c c m A m o r t ~ T a n g i b l e 29 3 5 0 0 A c e u m A m o n . l n t n g l b l e 30 3 6 0 0 A c c u r n A m o r t - O t r 31 4 1 0 0 N e t C u r D e f O p l n c T a x e s 32 4 3 4 0 N o n e u r O e f O p e r I n c T a x 33 E q u a l A c c s s . D e f e r r d O p e r i n c T a x e s 34 4 3 6 0 O t h e r D e f e r r d C r e i t s - N e t 35 4 3 7 0 O t h e r J u r U a b & D e f C r e d i t N e t 38 N E T T E L E C O M P L A N T A 31 D i s t b u t o n o f l i n e 3 6 38 1 4 0 2 R u r a l T e l B a n k S t o k B 39 C a s h W o r k i n g C a p i t l C 40 E q u a l A c c s s - U n a m o r t e d E x p e n s e s 0 41 I n v e s t n t A l l o l O l s a l l o w e 42 A c e u m O e p r l A m o i 1 A l l o l O l s a l l o F 43 4 0 4 0 C u s t m e r D e p o s i t G 44 4 3 1 0 O t h e r L o n g - T e r m L l a b . H 45 O l h e r T e l e c o m P I A d j u s I 48 N E T T E L E C O M P L T & O T H R A T E B A S E I T E M S 47 D i s t r i b u t i o n 0 1 L i n e 4 6 Pr o p r i e t a r y I n f o r m a t i o n SO U R C E ,L n 1 3 ,L n 3 6 ,L n 2 3 ,L o 7 6 ,l o l l ,L n 4 2 Ln 2 . . 8 Ln 7 1 7 a ,L n 2 2 ,l o 3 1 Ln l + 7 + 9 + 1 0 Ln 1 1 / 1 1 a ,L n 3 5 Ln 1 1 + 1 3 Ln 1 4 / 1 4 a ,L n 1 2 Ln 1 4 - 1 6 Ln 1 7 / 1 7 a ,L n 6 ,L n 1 0 ,L n 1 4 Ln 1 4 + 1 9 . . 2 1 ,L n 2 0 ,l o 1 4 ,l o 2 8 ,L n 2 4 ,L n 3 0 ,l o 3 1 . . 3 2 ,L n 3 ,L n 3 4 ,L n 4 6 ,l o 6 6 ,L n 2 5 ,L n 6 7 ,l o 6 9 Ln 2 2 + 2 3 - 2 4 . . 3 5 Ln 3 6 1 6 a ,L o 1 8 ,L n 1 ,L n 2 6 ,L n 3 1 ,L n 7 2 ,L n 3 7 ,L n S 7 Re c o r d s A+ B . . F + I . ( G + H ) Ln 4 6 / 4 6 a SE P A R A T E D T E L E C O M M U N I C A T I O N S P L A N T S U M M A R Y 71 2 0 1 0 0 7 S.2 TO T A L CO M P A N Y fa l ~~ * l f l ~ ~ ! f J l = * * f ~ d : ~ : ~ y ~ ~ ~ : i g ~ ~ ~ ~ : : : ~ ¥ : f E ~ ~ ~ ~ ~ * f : ~ ~ ~ ~ ~ ~ t f . l i f t l ~ 1 * ¡ ~ : : : * : : k t g ~ ~ i ~ ¿ f : ~ i l ~ ~ : ~ : * . t t t . ¥ : ~ ' 1 : % . m * i f ¡ f . l : ? : m : ~ $ ; $ : ~ ~ l : : $ : : ~ i m B - m ~ ~ U t ~ ln t e r L i A I n t r a L A T A I n t e r L T A I n t r a L A T A E A S U s e r O t h e r MS G P L M S G P L M S G P L M S G P L D e f i n e ~ . M W ~ _ ~ ~ ~ m m 0 0 m 1, 9 3 8 . 4 4 4 1, 5 8 0 , 7 5 5 2,2 9 1 , 7 5 0 8,4 6 0 , 5 0 6 12 , 3 3 3 , 0 1 1 10 0 . 0 0 14 , 2 6 9 , 4 5 5 10 0 . 0 0 0 % 14 , 2 6 9 , 4 5 5 10 0 . 0 0 0 % 14 , 2 6 9 , 4 5 5 10 0 . 0 0 0 0 % 21 7 , 7 4 6 14 , 4 8 7 , 2 0 0 13 , 6 9 0 9,0 7 5 , 9 8 4 17 2 , 9 5 2 5,2 5 1 , 9 7 4 10 0 . ~ ~ % 18 3 , 5 3 3 5,4 1 5 , 2 6 8 10 0 . 0 0 0 0 % 78 0 , 3 9 9 1,2 9 8 , 6 9 4 88 9 , 1 8 1 2,7 6 4 , 4 0 8 4,9 7 0 , 2 8 3 40 . 3 0 6 % 5,7 5 0 , 6 8 2 40 . 3 0 0 8 % 5,7 5 0 , 6 8 2 40 . 3 0 0 8 % 5,7 5 0 , 6 8 2 40 . 3 0 0 6 % 5,6 3 8 , 4 3 5 4,5 0 5 3, 7 1 3 , 6 9 7 2, 0 5 9 , 5 4 2 39 . 2 1 4 6 % 23 9 2,1 3 5 , 6 3 3 39 . 4 3 7 3 % 19 5 , 0 5 7 33 3 , 1 5 7 52 8 , 2 1 4 4.2 8 2 9 % 61 1 , 1 5 0 4.2 6 2 9 % 61 1 , 1 5 0 4. 8 2 9 % 61 1 , 1 5 0 4.2 8 2 9 % 87 , 7 6 3 9,3 2 6 62 0 , 4 7 6 53 9 39 8 , 7 4 5 89 , 7 0 1 21 4 , 8 8 3 4.0 9 1 1 % 76 , 1 8 7 96 22 1 , 2 6 8 4.0 8 6 0 % 82 , 9 3 6 33 , 0 3 7 46 , 9 4 8 28 , 9 8 8 13 4 , 4 7 3 21 0 , 4 0 9 1.7 0 6 1 % 51 , 0 4 1 48 5 , 0 2 5 68 , 0 8 2 65 8 , 8 2 7 25 6 , 9 9 3 32 5 , 0 7 5 2.6 3 5 6 % 2. 4 3 2 , 2 4 7 3, 0 8 9 , 0 7 3 25 . 0 4 7 2 % 24 3 , 4 4 6 1.7 0 8 1 % 37 6 , 1 1 6 2.6 3 5 8 % 37 6 , 1 1 6 2.6 3 5 8 % 37 6 , 1 1 6 2.8 3 5 8 % 3,5 7 4 , 0 9 25 . 0 4 7 2 % 3, 5 7 4 0 9 25 . 0 4 7 2 % 3, 5 7 4 , 0 9 8 25 . 0 4 7 2 % 24 3 , 4 6 1.7 0 8 1 % 24 3 , 4 4 6 1. 0 6 1 % 3,7 1 5 24 7 , 1 6 1 21 8 14 4 , 4 1 9 5,7 3 9 38 1 , 8 5 8 41 8 3,6 2 8 , 6 3 7 3. 9 3 5 21 6 , 8 2 3 2,0 7 0 . 9 9 2 7, 4 0 7 2, 9 5 1 4,5 5 9 10 0 , 0 0 1. 9 0 2 % 16 0 , 8 9 0 3.0 6 3 4 % 1, 5 1 8 , 2 6 1 28 . 9 0 8 4 % 6, 4 1 5 2,5 6 8 5,0 3 2 10 10 2 , 5 7 3 1.8 9 4 1 % 16 5 , 9 1 6 3.0 6 3 8 % 1,5 5 4 , 2 9 1 28 . 7 0 2 0 % Mo s s A d a m s , U P V_ I o 32 88 , 9 3 3 10 6 , 7 7 1 0.8 6 5 7 % 12 3 , 5 3 6 0.8 6 5 7 % 12 3 , 5 3 6 0. 8 6 5 7 % 12 3 , 5 3 6 0. 6 6 5 7 % 54 , 5 3 9 12 5 , 2 1 43 , 3 2 0 63 . 0 3 4 1.2 0 0 2 % 39 , 0 8 9 60 64 , 9 9 1.1 8 3 7 % 16 , 7 6 4 25 , 0 4 7 19 , 8 3 8 23 7 , 1 1 3 40 9 , 2 9 1 2,2 9 7 . 2 6 1 2,6 4 3 , 6 6 5 23 . 8 6 8 2 % 24 , 4 8 5 13 5 , 0 3 5 15 9 , 5 2 0 1.2 9 3 4 % 18 4 , 5 6 7 1.2 9 3 4 % 3,4 0 5 , 8 5 9 23 . 8 6 6 2 % 16 4 , 5 6 7 1.2 9 3 4 % 3,4 0 5 . 8 5 9 23 . 8 6 8 2 % 16 4 , 5 6 7 1.2 9 3 4 % 3, 4 0 5 , 8 5 9 23 . 8 6 8 2 % 1, 8 8 5 2, 8 1 6 51 , 9 7 2 18 7 , 3 8 3 3, 4 5 7 , 8 3 1 14 1 21 8 3,7 1 7 81 , 0 3 0 10 1 , 7 3 0 2. 3 6 8 , 5 2 6 1, 4 9 7 2, 2 3 7 41 2 6 0 83 , 8 3 4 1.5 9 2 4 % 1. 0 5 1 , 7 . 1 20 . 0 2 5 6 % 1, 0 6 7 1.4 9 2 34 , 6 8 1 57 85 , 1 2 3 1.5 7 1 9 % 1,0 8 8 , 3 8 5 20 . 0 8 1 2 % 20 1 2 3 71 2 0 1 0 0 7 Mi d v a l e T e l e p h o n e E x c h a n g e . I d a h o St u d y A r e a : 4 7 2 2 2 6 SE P A R A T E D E X P E N S E S U M M A R Y S- 3 St u d y Y e a r . 2 0 0 6 :!r ~ ¡ ~ ? i ¡ m ~ m m m ¡ ~ + ' ~ : : ~ ~ * ~ : ~ ~ f . v ~ ~ l i ~ ~ : : ~ g : ~ l : : ~ : : = * : J ~ t ~ ~ i ¡ ~ l ¡ ~ ~ ~ ~ ¡ ~ ~ ¡ ¡ lt ¡ ~ ¡ ~ l ~ l W f . t : l : x ; ~ ~ : : * l ' f : % ~ T i l ~ : ~ r ~ ~ ~ ~ : S : * : $ i ~ ~ & i ~ i ~ i i ~ m i ~ ~ ~ ~ : TO T A L In i e r L T A I n t l a U T A ln t e r l T A I n t r a L A T A CO M P A N Y ~~ ~ PL MS G :: ~ MS G ¡. ~~ ~ LI N E DE S C R I P T I O N SO U R C E (a ) le I dl In 1 p n S p e c E x p A c e t 6 2 1 0 , 6 2 2 0 2 62 3 0 . 6 3 1 0 . 6 4 1 0 ,ln 3 0 96 3 , 8 8 5 46 5 , 0 1 1 44 , 6 5 8 17 . 6 5 3 21 . 2 4 4 20 3 , 0 8 4 6.6 9 9,3 3 2 19 6 . 0 3 4 3 P I N o n s p e c A c c u n t 6 5 3 0 ,L n 1 9 31 . 3 5 7 12 , 6 3 7 1, 3 4 3 53 5 82 7 7. 6 5 27 1 40 6 7.4 8 4 4 C u s t O p e r A c e 6 6 1 0 , 6 6 2 0 ,L n 5 7 16 3 . 4 6 6 59 , 4 1 2 14 . 9 0 2 41 . 0 4 3 46 . 1 0 9 5 T O T A L B I G T H R E E E X P E N S E S Ln 2 . . 4 1. 1 5 8 , 7 0 8 63 7 , 0 8 0 46 . 2 0 1 18 , 1 8 8 38 , 9 7 3 25 1 . 9 8 1 6.9 4 0 9. 3 8 25 1 . 6 2 7 B D i s t r i b u t i o n o f L i n e 5 Ln S / 5 a 10 0 . 0 0 0 0 46 . 3 4 9 9 % 3.9 8 7 3 % 1. 5 8 9 7 % 3. 1 9 0 % 21 . 7 4 6 7 % 0.5 9 9 % 0.8 4 0 4 % 21 . 7 1 6 2 % 7 P l a n t S p e c i f c E x p e n s e s ,L n 3 1 1,0 3 2 . 4 3 2 49 2 , 6 3 8 47 , 7 9 4 18 , 8 2 2 23 , 0 5 1 22 0 , 2 5 3 7. 2 6 2 10 , 2 1 9 21 2 , 3 9 5 8 P l a n t N o n s p e c i f c E x p e n s e s ,L n 4 4 95 6 , 4 4 4 34 9 , 5 8 9 41 , 4 5 5 13 . 4 7 5 25 , 8 1 2 24 6 . 2 5 8 7.5 0 1 11 . 8 1 2 26 0 . 5 6 2 9 C u s m e r O p e r a t i o n s E x p e n s e s ,L n 5 7 16 3 , 4 6 6 59 , 4 1 2 14 , 9 0 2 41 . 0 4 3 48 . 1 0 9 10 C O r p r a t e O p e r a o n s E x p e n s e s .L n 1 6 45 9 , 8 3 3 22 6 , 4 8 9 17 , 3 4 2 6,8 2 7 13 , 8 7 8 94 , 5 6 5 2, 6 0 3, 6 5 5 94 . 4 5 2 11 7 3 0 0 C o n t r b u t o n s .L n 1 6 12 T O T A L O P E R A T I N G E X P E N S E S Ln 7 . . 1 1 2,6 1 2 , 1 7 5 1,1 2 6 . 1 0 5 10 8 , 5 9 1 39 . 1 2 5 77 . 8 4 4 60 , 1 3 9 17 , 3 6 8 25 , 6 8 6 81 5 , 5 1 8 13 O p e r a t i n g T a x e s ,L n 2 6 31 , 6 3 2 13 , 0 8 1 1, 3 3 2 53 1 82 0 7,7 9 1 26 9 40 2 7,4 2 5 14 E q u a l A c c e s s E x p e n s e s ,L n 3 5 15 E x p e n s e A l l o w a n c e S / D i s a l l o w a n c e s ,L n 4 0 16 5 2 4 0 R e n t R e v e n u e s ,L n 4 3 17 T O T A L O P E R A T I N G E X P & T A X E S Ln 1 2 + 1 3 . . 1 5 - 1 6 2, 8 4 3 . 8 0 7 1, 1 4 1 , 1 6 6 10 7 , 9 2 3 39 , 6 5 78 , 4 8 4 80 9 , 9 3 0 17 . 6 3 7 26 . 0 6 62 2 , 9 4 3 18 D i s t r i b u t i o n o f L i n e 1 7 Ln 1 7 / 1 7 a 10 0 . 0 0 43 . 1 6 3 8 % 4. 0 8 2 1 % 1.9 9 9 % 2. 9 6 7 8 % 23 . 0 7 0 2 % 0. 6 6 1 % 0.9 8 6 8 % 23 . 5 6 2 3 % 19 T o t a l D e p r & A m o r t ,L n 4 3 90 7 , 3 4 3 31 9 , 1 8 8 40 , 1 1 2 12 , 9 4 0 24 , 9 8 6 23 8 , 4 0 4 7,2 2 9 11 , 4 0 8 25 3 , 0 7 8 20 F i x e d C h a r g e s ,L n 2 4 16 7 , 4 2 7 65 , 6 5 6 6,8 5 0 3,1 8 8 5,1 2 9 48 , 4 0 0 2. 0 0 2. 6 6 33 , 5 2 8 21 T o t a l O p e r a t i n g R e v e n u e .L n 3 3 22 T o t a l O p e r a t i n g E x p e n s e & T a x e s Ln 1 7 2,6 4 3 , 8 0 7 1,1 4 1 , 1 6 6 10 7 , 9 2 3 39 , 6 5 5 78 , 4 8 4 60 9 , 9 3 0 17 . 6 3 7 26 , 0 8 8 62 2 , 9 4 3 23 U n c o H e c t i b l e s ,L n 5 7 24 F i x e d C h a r g e s Ln 2 0 16 7 , 4 2 7 65 , 6 5 6 6,8 5 0 3,1 8 8 5,1 2 9 48 , 4 0 0 2. 0 0 2, 6 6 8 33 . 5 2 8 25 I n c o m e A d j u s t m e n t ,L n 6 3 26 N e t I n c o m e Ln 2 1 . . 2 5 (2 , 8 1 1 . 2 3 4 ) (1 , 2 0 8 , 8 2 2 ) (1 1 4 , 7 7 2 ) (4 2 , 8 4 4 ) (8 3 . 5 9 2 ) (8 5 8 , 3 3 1 ) (1 9 , 8 4 7 ) (2 6 , 7 5 5 ) (6 5 8 , 4 7 1 ) 27 D i s t r i b u t n 0 1 L I n e 2 6 Ln 2 6 1 6 a 10 0 . ~ ~ % 42 . 9 2 8 6 % 4.0 8 2 6 % 1.5 2 4 0 % 2.9 7 3 5 % 23 . 4 1 7 9 0. 8 9 8 9 % 1.0 2 2 8 % 23 . 3 5 1 7 % 28 T O T A L C A S H O P E R E X P E N S E S Ln I 7 + 1 6 - 1 9 + 2 0 1,9 0 3 , 8 9 1 88 7 , 6 3 4 74 , 6 6 1 29 , 9 0 3 58 , 6 0 7 41 9 , 9 2 7 12 . 4 1 7 17 , 3 4 8 40 3 . 3 9 3 29 D i s t b u t o n 0 1 L i n 2 8 Ln 2 6 1 8 a 10 0 . 0 0 46 . 6 2 2 1 % 3.9 2 1 5 % 1.5 7 0 6 % 3.0 7 8 3 ' 4 22 . 0 5 6 2 % 0.6 5 2 % 0.9 1 1 2 % 21 . 1 8 7 8 % I IN C O M E T A X C A L C U L A T I O N I 31 O t e r O p e r a t i n g I n c o m e ,L n 3 2 32 A F U D C .L n 1 5 33 O p e r a t i n g R e v e n u .L n 3 3 . L n 3 1 34 U n c l l e c t i b l e R e v e n u e .L n 5 7 34 I n c o m e E f f e c t J u ñ s d i c t l o n a l D i f e r e n c ,L n 6 0 34 I R S I n c o m e A d j u s t e n t ,L n 6 2 35 T O T A L R E V E N U E & O T H E R I N C O M E Ln 3 1 . . 3 4 36 C O n t i b U l i o n s ,L n 1 6 37 O p e r a t i n g E x p e n s e s Ln 1 2 - l n 1 1 2, 8 1 2 , 1 7 5 1, 1 2 8 , 1 0 5 10 8 . 5 9 1 39 . 1 2 5 77 , 8 4 4 60 2 . 1 3 9 17 , 3 6 8 25 , 6 6 61 5 . 5 1 8 38 O p e r a t n g T a x e s .L n 6 31 , 6 3 2 13 , 0 6 1 1, 3 3 2 53 1 82 0 7.7 9 1 26 9 40 2 7. 2 5 39 F i x e d C h a r g e s ,L n 2 4 16 7 , 4 2 7 65 , 6 5 8 6,6 5 0 3, 1 8 8 5,1 2 9 48 , 4 0 0 2.0 0 2,6 6 6 33 . 5 2 8 40 T O T A L O P E R A T I N G E X P E N S E S Ln 3 6 . . 3 9 2, 8 1 1 , 2 3 4 1,2 0 8 , 8 2 2 11 4 , 7 7 2 42 . 8 4 4 83 , 5 9 2 65 8 . 3 3 1 19 . 6 4 7 28 , 7 5 5 65 6 . 4 7 1 41 S l a e T a x a b l e I n c o m e Ln 3 s . L n 4 0 (2 . 8 1 1 , 2 3 4 ) (1 , 2 0 6 , 8 2 2 ) (1 1 4 , 7 7 2 ) (4 2 , 8 4 4 ) (8 3 . 5 9 2 ) (6 5 8 , 3 3 1 ) (1 9 , 6 4 7 ) (2 8 , 7 5 5 ) (6 5 6 . 4 7 1 ) 42 S t a e I n c o m e T a x 8.2 2 5 0 % (2 3 1 , 2 2 4 ) (9 9 . 2 6 1 ) (9 , 4 4 0 ) (3 , 5 2 4 ) (8 , 8 7 5 ) (5 4 , 1 4 8 ) (1 , 6 1 6 ) (2 , 3 6 5 ) (5 3 . 9 9 5 ) 43 F e d e r a l T a x a b l e I n c o m e Ln 3 5 . L n 4 0 (2 , 8 1 1 , 2 3 4 ) (1 , 2 0 6 , 8 2 2 ) (1 1 4 , 7 7 2 ) (4 2 , 8 4 4 ) (8 3 , 5 9 2 ) (6 5 8 , 3 3 1 ) (1 9 . 8 4 7 ) (2 8 , 7 5 5 ) (6 5 6 , 4 7 1 ) 44 S t a t e I n c o m e T a x Ln 4 2 (2 3 1 , 2 2 4 ) (9 9 , 2 6 1 ) (9 , 4 4 0 ) (3 , 5 2 4 ) (6 , 8 7 5 ) (5 4 , 1 4 8 ) (1 , 6 1 6 ) (2 , 3 6 5 ) (5 3 , 9 9 5 ) 45 N e t F e d e r a l T a x a b l e I n c m e Ln 4 3 - L n 4 (2 , 5 8 0 , 0 1 0 ) (1 , 1 0 7 , 5 8 1 ) (1 0 5 , 3 3 2 ) (3 9 , 3 2 0 ) (7 6 , 7 1 7 ) (6 0 , 1 8 3 ) (1 8 , 0 3 1 ) (2 6 , 3 8 9 ) (8 0 2 . 4 7 6 ) 46 F e d e r a l In c o m e T a x 34 . 0 0 (8 7 7 , 2 0 3 ) (3 7 6 , 5 7 1 ) (3 5 , 8 1 3 ) (1 3 , 3 8 9 ) (2 6 , 0 8 ) (2 0 5 , 4 2 2 ) (6 , 1 3 0 ) (8 , 9 7 2 ) (2 0 4 , 8 4 2 ) 47 A m o r t i z a t i o n o f I n v e s t m e n t T a x C r e d i t .L n 4 4 48 F e e e r a l l n c o m e T a x Ln 4 6 - L n 4 7 18 7 7 . 2 0 3 1 13 7 6 . 5 7 1 /3 5 . 8 1 3 1 11 , 3 8 9 ) 12 6 . 0 8 ) 12 0 5 . 4 2 2 1 16 . 1 3 0 1 18 . 9 7 2 1 12 0 4 , 8 4 2 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , U P V. , . 1 o 3 2 30 1 2 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 d a h o St u d y A r e a : 4 7 2 2 2 6 St u y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 C a r r i r C l a s s i f c a t i n 2 B i g T h r e e E x p e n s e s O l s t 3 T o t a l SE P A R A T I O N 42 1 1 0 L a n d & Su p p o r t As s e t s 5 S u p p o r t A s s e . J o i n t x 1 G S F . B & C 6 G e n e r a l S u p p o r t F a c i i n l e s . B & C 7 D i r e c t A s s i g n m e n t 8 T o t a l S u p p o r t A s s e t s 9 O i S l n b u t l o n o f L i n e 8 10 L a n d 11 D i r e c t A s s i g n m e n t 12 T o t a l L a n d 13 T O T A L L A N D & S U P P O R T A S S E T S 14 D i s t r i b u i o n o f L i n e 1 3 No t 1: lf C a r r i e r C l a s s i f c a t n = A , t h e n If C a r r i e r C l a s s î f c a t o n = B . t h e n Pr o p r e t a r y I n f r m a t o n TO T A L CO ~ : ' A N Y ~~ G PL SO U R C E Ie Re c o r d s B ,l o 8 io o . D D 48 . 3 4 9 9 3. 9 8 7 3 % lo 8 io o . D D % 40 . 3 0 0 6 % 4. 2 8 2 9 % No t e 1 1,9 3 8 , 4 4 4 78 0 , 3 9 9 82 , 9 3 6 No t e 1 Dir e c t Ln S . . 7 I 1. 9 3 6 , 4 4 4 1 78 0 , 3 9 9 82 . 9 3 8 Lo B / 8 a 10 0 . 0 0 0 % 40 . 3 0 0 6 % 4.2 8 2 9 % No t e 1 Dir e c t Ln l 0 . . l l Ln 8 + 1 2 Ln 1 3 / 1 3 a 1,9 3 6 , 4 4 4 10 0 . 0 0 0 0 % 78 0 , 3 9 9 40 . 3 0 0 6 % Ln S a ' 2 . L n 8 a ' 2 , L n l 0 a ' 2 Ln S a " 3 . L n E i a " 3 , L n 1 0 a - 3 82 , 9 3 8 4.2 8 2 9 % 71 2 0 1 0 0 7 GE N E R A L S U P P O R T F A C I L I T E S 5- :~ r ß ~ ~ : : * ลก : ~ : : ~ ~ l ~ l l f ¡ r m n * ¡ l § . 1 f : ~ ~ ~ ~ i ~ ~ ? m ~ ~ : : ~ ~ : r : ~ ~ : ~ - 1 i r ~ : J g ~ ~ $ 3 ~ : * ~ ~ ~ % M t ¥ ' In t r a L A T A I n t e r l T A I n t r a L A T A MS G P L M S G P L M S G . ~ m ~ ~ iW : ~ : ; ¡ * ~ = ~ ; ; ê ~ i ~ ! M ~ De f i n e k 1.5 8 9 7 % .7 0 6 1 % 3. 1 9 0 21 . 7 4 8 7 % 0. 5 9 9 0.8 4 0 4 % 21 . 7 1 6 2 % 2. 6 3 5 8 % 25 . 0 4 7 2 % 0. 6 8 7 % 1. 2 9 3 4 % 23 . 8 6 8 2 % 51 . 0 4 1 48 5 , 0 2 5 18 , 7 8 4 25 , 0 4 7 46 2 , 1 9 4 51 , 0 4 1 48 5 . 0 2 16 , 7 8 4 25 . 0 4 7 46 2 , 1 9 4 2. 6 3 5 8 % 25 . 0 4 7 2 % 0. 6 8 7 % 1. 2 9 3 4 % 23 . 8 6 8 2 % 51 , 0 4 1 48 5 , 0 2 5 16 . 7 8 4 25 , 0 4 7 48 2 , 1 9 4 2. 6 3 5 8 % 25 . 0 4 7 2 % 0.8 8 5 7 % 1. 2 9 3 4 % 23 . 8 6 8 2 % 33 , 0 3 7 33 , 0 3 7 1. 7 0 6 1 % 33 , 0 3 7 1. 7 0 6 1 % MO S S A d a m s , L L P V_ I o ~ 2 40 1 2 3 Mk l v a l e T e l e p h o n e E x c h a n g e . Id a h o Stu y A r e a : 4 7 2 2 2 6 St u d y Y e a r : 2 0 0 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 W S W S P e t - S w i t c h b o a r d s 2 W S W S P c t - D l r e c t i y A s s i s t n c e 3 S u b L l n e M O U P e t 4 S O B T o l l M O U P e t 5 W S W S P e t - T S P S O p e r P o s l l o n 6 R e a l P r o c e s s o r T i m e P c t ~ T A 7 R e a l P r o c e s s o r T i m e P e t ~ T S P S 8 R E L M O V ' s - T a n d e m S w i t h i n g 9 T r a n s M e a s u r e d O E M P e t CO E C A T E G O R I E S 1 - 3 S E P A R A T I O N 10 2 2 2 0 O p e r a t o r S y s m s 11 C a 1 . 0 p e r a t r S y s m s 12 L o c , T o l l , O S A . D S B . a n d 13 T r a f f c S w i t c h b o a r d s 14 A u x . D l r e e t A s s i s t 15 A u x . l n t r c e p t 16 J t E x c h & T o l l S O B 17 T S P S - O p e r P o s i t n 18 T S P S . R T A 19 T S P S - D h e r 20 D i r e c t A s s i g n m e n t 21 T o l a l e a t 1 22 D i s t r i b u t i o n o f L i n e 2 1 23 T O T A L C O E - O P E R A T O R 24 D i s t r i b u t n o f l i n e 2 3 25 2 2 1 0 C e n t r a l O f æ S w i t c h i n g 26 c a t 2 ~ T a n d e m S w i c h i n g 27 D i r e c t A s s i g n m e n t 26 T o t a l C a t 2 29 D l s r i b u t l o n o f L i n e 2 8 30 31 C a t 3 - L o c a l S w l l c h l n g - T S 32 C a t 3 - L o c a l S w i t c h I n g . N T S 33 D i r e c t A s s i g n m e n t 34 T o t a l C a t 3 35 D i s t b u t i o n o f U n e 3 4 38 T O T A L C O E - S W I T C H I N G 37 D i s t r i b u t i o n o f U n e 3 6 Pr o p r i e t a r y I n f o r m a t i o n Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 1 3 a . 1 Ln 1 4 s a 2 Ln 1 5 a ' 3 Ln 1 6 a ' 4 Ln 1 7 a ' 5 Ln 1 8 a a 6 Ln 1 9 a o 7 Di r e c t Ln 1 3 . . 2 0 Ln 2 1 1 2 1 a Ln 2 1 Ln 2 3 1 3 a Ln 2 8 a ' 8 Dir e c t Ln 2 6 . . 2 7 Ln 2 8 1 8 a Ln 3 1 a ' 9 Ln 3 2 a a g 01 _ Ln 3 1 . . 3 3 Ln 3 4 1 3 4 a Ln 2 8 + 3 4 Ln 3 6 1 3 6 a 71 0 1 0 0 7 CE N T L O F F I C E E Q U I P M E N T SO U R C E ¡~ ~ l ~ ~ ~ i ~ ~ ~ . ~ ~ ? ~ ~ : ~ = ~ ~ ~ m ~ ~ ; : : : ~ ~ ~ ~ I D In t r L A T A I I n ' r a L A T A MS G P L M S G bl l e i I d l0 0 . 0 0 k 4S . " O l O % 10 0 . 0 0 0 0 % 15 . 0 0 1. 5 8 0 . 7 5 5 1. 9 6 . 8 9 4 46 . 9 4 8 23 7 , 1 1 3 1. 5 8 0 , 7 5 5 1,2 9 8 . 6 9 4 48 . 9 4 8 23 7 , 1 1 3 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % 2.9 7 0 0 % 15 . 0 0 1. 5 8 0 . 7 5 5 1, 2 9 . 6 9 4 48 . 9 4 8 23 7 . 1 1 3 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % 2.9 7 0 0 % 15 . 0 0 Mo s s A d a m s . L L P V. , 1 o 3 . 2 5 0 1 2 3 Mid v a l e T e l e p h o n e E x c h a n g e . Id a h o Stu d y A r e a : 4 7 2 2 2 6 St u y Y e a r : 2 0 0 6 SE P A R A T I O N S F A C T O R S 38 W B L i n e 39 E x T r k W B 40 R E L M O U ' s . . E x c h a n g e T r u n k 41 G r o s s A l l o c a t o r ( T r a n s S P F ) 42 C O E C a l 4 2 1 - F u m t o O t h r s P c t 43 I n l e r e c h a n g e T r k w e . _ CO E C A T E G O R Y 4 S E P A R A T I O N 44 2 2 3 0 C e n t r a l O f f c e - T r a n s m i s s i o n 45 C a t 4 . 1 - E x c h a n g e C i r c u i t 46 4 . 1 1 W l d e b a n d . . i n e 47 D i r e c t A s s i g n m e n t 48 4 . 1 2 E x c h T r u n k - E A S 49 E x T r k x f B . . B a s i c 50 E x T r k 1 N B - B a s i c D A 51 E x Tr k W B 52 E x c h T r k w e - D i r e c t A s s i g n m e n t 63 4 . 1 3 E x U n e x i B 54 J o l n t M S G 55 P L & l o c a l 56 D i r e c t A s s i g n m e n t . . B a s l c l S p e c l a l 57 C a t 4 . 2 . . l n t r e x c h a n g e 58 4 . 2 1 F u m 1 0 O t e r s 69 4 . 2 2 W l d e b a n d 60 J o i n t M S G 61 P L 62 D i r e c t A s s i g n m e n t UN E 'I O N CA T 4 . 1 3 73 7 . 4 6 2 0 No t e 1: Co s t p e r l o o p : i Pr o p r i e t a r y I n f o r m a t i o n Re c o r d s Re c o n : s Re c o r d s Re c o r d s Re c o n : s Re c o r d s Ln 4 6 a ' 3 8 Di r c t Di r c t Ln 4 9 a . 4 0 Di r e c t ln 5 1 a . 3 9 Di r e c t Ln 5 4 b - 4 1 Ln 5 4 e . . 1 Dir e c t Ln 5 8 a ' 4 2 Ln 6 0 a ' 4 3 Dir e c t Dir e c t Re c o r d s No t e 1 71 0 1 0 0 7 CE N T R L O F F I C E E O U I P M E N T TO T A L CO M P A N Y a ~i l t 1 1 ¡ ~ ~ ; l . ~ ~ ; ~ § l - t m d ~ ~ ~ ~ : ~ i k ~ ~ ~ ~ 1 ~ ~ ~ * ~ t * ¡ t ~ ~ m ~ I ~ ¡ i l i l ; l ~ ~ ~ ~ ~ l i l ~ ~ ~ ~ ~ ~ ~ : ~ ~ ~ I % i l ~ J i ~ ! In l e r I T A I n l . a L A T A I n l e r I T A MS G P L M S G P L M S G P L 'b l l e I I d 10 0 . 0 0 0 0 % 50 . ~ ~ % 17 6 . 4 6 1 24 . 4 8 6 81 8 . 6 8 3 8. 6 3 7 40 9 . 2 9 1 11 . 2 3 3 9.5 8 8 IN T R A S T A T E t O L L In t r l T A I n l r L A T A PL P L e Otl i r 1.1 1 9 82 5 . 2 2 0 1.1 1 0 81 8 . 6 8 3 4 2.9 6 0 5 3.8 8 7 Mo s s A d a m s . L L P Ve 1 S 1 o 3 . 2 60 1 2 3 71 2 0 1 0 0 Mi d v a l e T e l e p h o n e E x c h a n g e - I d a h o Stu d y A r e a : 4 n 2 2 6 St u d y Y e a r : 2 0 0 6 CE N T R A L O F F I C E e Q U I P M E N T Re c o r d s 'c t Re c o r d s SE P A R A T I O N ( C o n t 67 4. 2 3 A l l O l h e r 68 Jo l n t M S G ln ß 2 . f S 69 PL , T W X & L o c a l Ln 8 2 c . . i 70 Dir e d A s s i g n m e n t . N o n a c c s s Dir e c t 71 Ca I 4 . 3 . H o s t e m o l e M S G n Jo i n t ( x l A T S ) Ln 7 2 a ' 8 8 73 WA T S Olr e c t 74 Dir e c t A s s i g n m e n t Dir e c t 75 To t a l Ca t 4 Ln 4 6 . . 6 2 + 6 7 . . 7 4 2,2 9 1 , 7 5 0 88 9 , 1 8 1 19 5 , 0 5 7 28 , 9 8 8 76 T O T A L C O E . T R A N S M I S S I O N Ln 7 5 2,2 9 1 , 7 5 0 88 9 , 1 8 1 19 5 , 0 5 7 28 , 9 8 8 77 O i s t r i b u t l o n 0 1 L i n e 7 6 Ln 7 6 J 6 a 10 0 . 0 0 38 . 7 9 9 2 % 8.5 1 1 3 % 1.2 6 4 9 % 78 T O T A L C E N T R A L O F F I C E E Q U I P ln 2 3 + 3 6 + 7 6 3, 8 n , 5 0 5 2, 1 8 5 , 8 7 5 19 5 , 0 5 7 75 , 9 3 6 79 D i s t r i b u t i o n o f L i n e 7 8 Ln 7 8 1 8 a 10 0 . 0 0 0 0 58 . 4 4 6 0 % 5. 0 3 7 0 % 1. 9 6 9 % 68 , 0 8 2 65 6 , 8 2 7 19 . 8 3 8 24 . 4 8 5 40 9 . 2 9 1 88 , 0 8 2 2.9 7 0 8 % 65 6 . 8 2 7 28 . 6 6 0 5 % 19 . 8 3 8 0. 8 6 5 6 % 24 , 4 8 5 1.0 6 8 4 % 40 9 . 2 9 1 17 . 8 5 9 3 % 88 , 0 8 2 .7 5 8 1 % 85 6 , 8 2 7 16 . 9 8 1 3 % 19 , 8 3 8 0. 5 1 2 3 % 24 , 4 8 5 0. 6 3 2 3 % 84 6 , 4 0 5 16 . 6 9 2 2 % LI N E D E S C R I P T I O N S O U R C E AS S I G N M E N T O F C O E C A T 4 . 3 I 80 C O E C a t 4 . 2 3 T e r m s . R e c o r d s -J o i n t M e s s a g e T o t a l T e r m i n a t i n s 81 C O E C a t 4 . 2 3 . T e n n s N o t e 1 82 . J o i n t M e s s a g e T o t a l A l l o c a d I n v e s t m e n t N o t e 1 ~f r : : i n W N ¡ ~ l g ~ ~ i : ~ ~ f i W f f J ~ : MS G 'h No t e 1: Co s t p e r t e r m i n a t i n = 3,7 3 8 . 7 5 Pr o p r l t a r y I n f o r m a t i o n Mo s s A d a m s , L L P Vl h 1 o 3 . 2 70 1 2 3 Mid v a l e T e l e p h o n e E x c h a n g e . Id a h o St u d y A r e a : 4 7 2 2 2 6 St u d y Y e a r : 2 0 0 6 LI N E 3 2 3 1 0 I n f o 4 C a t 1 . 0 t h e r l O T 5 C O l n l s P u b T e l E q 6 O i r e d A s s i g n m e n t 7 T o t a l C a t e g o r y 1 8 O i s t r i b u t i o n o f L i n e 7 9 C a t 2 . c u s t P r e m E q u i p 10 D i s t r i b u t i o n o f L I n e 9 11 T O T A L I N F O O R I G I T E R M E Q U I P 12 O l s t r i b u t i o n 0 1 L i n e 1 1 Pro p r i e t a r y I n f o r m a t i o n 'tI O N Re c o r d s Re c o r d s Ln 4 a . 1 ln S . . 2 Dl r e d ln 4 . . 6 Ln 7 n a Ol r e c t Ln 9 l a ln 7 + 9 ln l 1 1 1 1 a IN F O R M A T I O N O R I G I N I E R M E Q U I P M E N T SO U R C E :~ I ~ ; ~ 1 ß ~ ~ : ~ ~ ? d l i i m ~ ~ ~ ~ t l i i ~ i ~ ? : ~ TO T A L CO M P A N Y a 10 0 . 0 0 0 % 24 . 2 1 7 0 % 0. 7 8 3 0 % 71 2 0 1 0 0 7 5- 6 Us e , De f i n e k ::; : : i g ~ ~ ~ : ~ * ~ ~ * ¡ ~ ~ ? : ~ ~ ~ ~ ~ f ~ ~ Oth e r 50 . 0 0 0 0 % MO S S A d a m s . l l P Ve n 1 D 3 . 2 80 1 2 3 Mid v a l e T e l e p h o n e E x c h a n g e . Id a h o Stu d y A r e a : 4 7 2 2 2 6 Stu d y Y e a r : 2 0 0 6 SE P A R A T l o N S 1 G r o s s A l l o c a t o r P c t ( T r a n s S P F ) 2 R E L M O U ' s . E x c h a n g e T r u n k 3 W B L i n e 4 M O U P e t . E x T I k W B C& W F C A T 1 - 2 S E P A R A T I O N 5 2 4 1 0 C a b l e & W i r e F a c i l i t i e s 6 C a t 1 . E x c h L i n e x f B 7 1 . 1 In t PL & WA T S 8 1 . 2 In t r P L & W A T S 9 1 . 3 J o i n t l y U s e d 10 D i r e c t A s s i g n m e n t 11 T o t a l C a t e g o r y 1 12 C a t 2 - W B & E x c h T r u n k 13 E x T r k . j o i n t m e s s a g e 14 E x Tr k . E A S 15 E x Ll n e W B 16 W a L i n e 17 W B T r u i i k 18 W B T r u n k D A 19 T o t a l C a t e g o r y 2 LI N E D E S C R I P T I O N AS S I G N M E N T O F C & W F C A T 1 20 C & W F C a t 1 W o r k i n g L o o p s 21 D i s t r i b u i o n o f L i n e 2 1 22 C a t I - E x L i n e x N B No t e 1: CO s t p e r l o o p = Pro p r i e t a r y I n f r m a t i o n Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 2 2 e . . i Ln 2 c . . d Ln 2 2 b ' l Di r e c t Ln 7 . . 1 0 Ln 1 3 a . 2 Di r e c t Ln 1 5 a . 3 Di r c t Ln 1 7 a . 4 Dir e c t Re c o r d s Ln 2 0 J 0 a Ln 2 2 a ' 2 1 71 2 0 i 7 CA B L E A N D W I R E F A C I L I T I E S SO U R C E TO T A L CO M P A N Y 'a wi ~ ~ ¿ ~ : d ~ I T : : ~ ~ i i l i : i g : ~ : : : : : $ : i f ~ i ~ J ~ ¡ ~ t l t 1 ~ ~ t ~ ¡ ¡ ~ j ~ ¡ ¡ ¡ ¡ ¡ ~ ~ ~ ~ l . ~ ~ ~ ~ ~ : : : ~ : : $ : $ : ~ ~ : & ~ ~ £ ; ~ : : ~ x : : i ~ ~ f u ~ ¡ ¡ ¡ ~ * ~ ¡ f : ~ ~ i l ~ r : ~ ~ f : f : ~ ¡ I ~ ~ ~ ~ ~ ~ ~ ~ ~ t : ~ : : : : : : : ~ ? - : ~ ~ ~ ~ : : In t e r L T A I n l r a L A T A I n l e r L T A I n t r a L A T A E A S U s e r ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ M ~ l m ~ \ , ~ i l m ~ 4.6 3 1 , n 4 2. 2 9 7 . 2 6 1 13 5 , 0 3 5 41 , 2 7 5 13 5 . 0 3 5 17 8 . 3 1 0 33 , 1 1 8 8.1 5 8 13 5 . 0 3 5 SO U R C E 4 0.3 5 7 5 % 16 . 5 5 7 5 0.4 4 6 8 % 20 , 6 9 6 4, 1 3 9 . 2 0 8 2 Mo s s A d a m s , L L P VI I 1 o 3 2 90 1 2 3 Mid v a l e T e l e p h o n e E x c h a n g e - I d a h o St u d y A r e a : 4 7 2 2 6 Stu d y Y e a r : 2 0 0 6 SE P A R A T I O N S F A C T O R S 23 I n t e r e x c h a n g e 1 r k w e 24 C M M P e t . 1 X x J B 25 C & W F T W X C o n n e c t M i n M i l e s P c t - I T 26 C & W F i w x C o n n e c t M i n M i l e s P c t - R m t 27 H o s U R e m o t e M O U M U e s P e t C& W F C A T 3 - 4 S E P A R A T I O N 26 C a l 3 . l n l e r e x c h a n g e C & W F 29 W B P L . D i r e A s s n m e n l 30 w e - J o i n t M e s s a g e 31 J o l n l M S G x J B 32 P L , T W & L o c a l x J B 33 J o i n t T W X . I T 34 J o i n t T W X . R m I 35 D i r e c t A s s i g n m e n t . . N o n a c c e s s 36 T o t a l C a t e g o i y 3 37 C a t 4 . H o s t e m o l e C & W F 38 J o i n t (x J A T S ) 39 W A T S 40 D i r e c t A s i g n m e n t 41 T o t a l C a t e g o r y 4 42 T O T A L C A B L E & W I R E F A C I L I T I E S 43 D i s t r i b u t i o n o f L i n e 4 2 LI N E 'T I O N FC A T : ! 44 E q u i v I X 45 . P L , T W X & L o c a l 46 D i s t i b u t i o n o f L i n e 4 4 47 D i s t b u t n o f l i n e 4 5 48 C a t 3 - A I I O t h e r x J M S G 49 - P L T W X & L o c a l No t e 1: Co s t p e r c l r c u i t m i l e I : Pr o p r i e t a r y I n f o n n a t n TO T A L Jo l n t M S G CO M P A N Y Ex c l T W X SO U R C E a b Re c o r d s 14 , 4 3 8 14 , 2 7 8 Re c o r d s Ln 4 4 1 4 4 a 10 0 . ~ ~ % 9B B B 6 % Ln 4 5 / 4 4 a Ln 4 8 a . 4 6 3,3 4 8 , 1 3 7 3,3 1 0 , 8 6 Ln 4 8 a " 4 7 23 1 . 8 9 Re c o r d s Re c o r d s Re c o r d s Re C O r d s Re c o r d s Dlr e e t Ln 3 0 a " 2 3 Ln 4 8 b ' 2 4 Ln 4 9 c . . 1 Ln 4 9 j ' 2 5 Ln 4 9 k ' 2 6 Dir e c t Ln 2 8 . . 3 5 Ln 3 8 a . 2 7 Di r e c t Dl r e e t Ln 3 8 . . 4 0 Ln 1 1 + 1 9 + 3 6 + 4 1 Ln 4 2 1 4 2 a 71 2 0 1 0 0 7 CA B L E A N D W I R E F A C I L I T E S ~~ t f ~ ~ : J r ~ ¡ ~ ~ ~ l f & : : e : ; i ~ i ~ ~ ~ ~ ~ i ß ~ l ~ ~ ~ ~ ~ ~ ¡ ~ ~ ~ ~ ~ ~ ~ ~ ! f : ~ ~ ~ ~ ~ t ~ ~ i ~ ~ ~ ~ l % : ¡ ¡ ¡ ~ i i : : t ~ ; ~ ~ : ln t e r l T A I n t r L A T A I n t e r L T A MS G P L M S G P L M S G b) ( t : ) l d ) I e 30 4 , 2 8 6 3,3 1 0 , 8 6 0 37 , 2 7 7 3,6 5 2 , 4 2 2 1,8 7 1 , 7 5 2 28 3 , 4 6 3 98 , 4 9 8 14 9 . 0 2 2 1,3 9 1 , 5 8 8 58 , 0 7 9 8, 4 6 0 , 5 0 6 10 0 . ~ ~ % 2,7 8 4 , 4 0 8 32 . 9 1 0 7 % 33 3 , 1 5 7 3. 9 3 7 8 % 13 4 , 4 7 3 1.5 8 9 4 ~ % 25 6 , 9 9 3 2,4 3 2 , 2 4 7 86 , 9 3 3 13 5 , 0 3 5 2.2 9 7 , 2 6 1 3.0 3 7 6 % 28 . 7 4 8 2 % 1. 0 2 7 5 % 1. 5 9 6 1 % 27 . 1 5 2 8 % IN T R A S T A T E T O L L I In t e r In t EA S Us e r Ot r Jt M S G T W LA T A LA T A De n n e In t a F t n Re m o t e el In In ' Ih l 11 11 'k IN r ~ R S T Ä f E T Õ U : : In f e r I n t r LA T A L A T A cl l d Mo s s A d a m s , L L P V.1 s 1 o 3 2 10 0 1 2 3 Mid v a l e T e l e p h o n e E x c h a n e - I d a h o Stu d y A r e a : 4 7 2 2 2 6 St u d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 L a n d & S u p p o r t A s s e t s D i s t r 2 2 2 1 0 C O E - S w i t c h O i s t r 3 2 2 2 0 C O E . O p e r a t r S y s m s D l s t 4 2 2 3 0 C O E . T r a n s m l s s i o n O l s t 5 2 3 1 0 l O T O i s t r 6 2 4 1 0 C & W F D l s t 72 0 0 1 T P I S 8 2 0 0 1 T P I S i n e l 2 6 8 0 TA N G I B L E A S S E T S - e P I T A L L E A S E S S E P 9 2 6 8 0 T a n g i b l e A s s e t - C a p i t a l le a s e s 10 2 1 1 0 L a n d & S u p t A s s e t s 11 2 2 1 0 C O E . S w I l n g 12 2 2 2 0 C O E - O p e r a i o 13 2 2 3 0 C O E . T r a n s m l s s l o n 14 2 3 1 0 l O T 15 2 4 1 0 C & W F 16 N o t c l a s s i f d b y a c c u n t 17 D i r e c t A s s i g n m e n t 18 T O T A L C A P I T A L L E A S E S 19 D i s t r i u t i o n o f L i n e 1 8 TA N G I B L E A S S E T S . L E A S E H L D I M P R O V E S E P 20 2 6 8 0 T a n g i b l e A s s e t s - L e a s e h l d I m p r o v e 21 2 1 1 0 L a n d & S u p t A s s e t s 22 2 2 1 0 C O E - 5 w R c h l n 23 2 2 0 C O E . O p e r a t r 24 2 2 3 0 C O E - T r a n s m i s s i o n 25 2 3 1 0 lO T 26 2 4 1 0 C & W F 27 N o t c 1 a s s l l e d b y a c c u n l 28 D i r e c t A s s i g n m e n t 29 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 30 D i s t r i b u i o n 0 1 L i n e 2 9 .L n 1 4 .L n 3 7 .L n 2 4 ,L n n .L n 1 2 .L n 4 3 ,L n B S.2 , n 1 1 71 2 0 1 0 0 7 AM O R T I Z A B L E A S S E T S S- 8 f~ l 1 ~ ~ ~ ~ ~ ~ l ~ ~ ; ¡ ~ ~ i l ~ ; ~ ~ ~ ~ ~ : ; : ; ~ : ~ ~ ¥ A ~ 1 t . f u ~ : I ~ l ¡ ~ : ; : ; ~ : : ~ g r . ~ m ~ ~ ~ ¡ ¡ ¡ m ¡ ¡ ¡ § m ¡ ? : * ~ ~ ~ l t l l ~ l ~ i i i l ¡ ~ ~ ~ : : m ~ : : : ~ ~ 1 ~ ; ~ ~ T : t 1 i : ~ ~ ~ ~ : : * ~ ~ ~ : m ¡ t J ~ U ~ ~ ~ ~ ¡ ~ ~ l 1 ~ ~ I ¡ m ¡ 1 ~ ¡ ¡ ¡ ¡ I ¡ ~ ~ ~ i l ~ l ~ ~ i 1 : $ l g ~ ~ i ; ~ ~ : : ~ : : ~ ¡ ¡ ~ ~ r ~ ~ ~ ~ t ¡ ~ ~ l : ~ ~ l t SO U R C E TO T A L In l e r L A T A In t r a L A T A ln t e r L T A In l r a L A T A - E A S Us e r Ot h r CO M P A N Y ~: ~ ~e ~ MS G PL ~~ G ;.~ ~~ ~ PL De f i n e _, a ) Id le I ti m Ik I 10 0 . 0 0 40 . 3 0 0 6 % 4.2 8 2 9 % 1.7 0 6 1 % 2.6 3 5 6 % 25 . 0 4 7 2 % 0.8 6 7 % 1.2 9 3 4 % 23 . 8 6 8 2 % 10 0 . ~ ~ % 82 . 0 3 0 0 % 2. 9 7 0 0 % 15 . ~ ~ % 10 0 . 0 0 38 . 7 9 9 2 % 8. 5 1 1 3 % 1.2 6 4 9 % 2.9 7 0 8 % 28 . 8 6 % 0.8 6 5 6 % 1. 0 8 % 17 . 8 5 9 3 % 10 0 . 0 0 32 . 9 1 0 7 % 3. 9 3 7 8 % 1. 5 8 9 4 % 3. 0 3 7 6 % 28 . 7 4 6 2 % 1. 0 2 7 5 % 1. 5 9 6 1 % 27 . 1 5 2 8 % 10 0 . 0 0 0 0 0 / . 40 . 3 0 0 6 % 4.2 8 2 9 % 1. 7 0 6 1 % 2. 6 3 5 6 % 25 . 0 4 7 2 % 0.8 8 5 7 % 1. 2 9 3 4 % 23 . 8 6 8 2 % 10 0 . 0 0 0 0 % 40 . 3 0 0 6 % 4.2 6 2 9 % 1. 7 0 6 1 % 2. 6 3 5 6 % 25 . 0 4 7 2 % 0.8 6 5 7 % 1.2 9 3 4 % 23 . 8 8 8 2 % :1 :1 :1 31 T O T A L T A N G I B L E A S S E T S L n I 8 + 2 9 32 O i s b u l n o f l i n e 3 1 L n 3 1 1 3 1 a I I N T A N G I B L E A S S E T S S E P A R A T I O N I 33 2 6 9 0 I n t a n g i b l e A s s e t s L n 3 3 a . 8 34 D i r e c t A s s i g n m e n t D i r e c t 35 T O T A L I N T A N G I B L E A S S E T S L n 3 3 . . 3 4 36 D i s t r i b u t i o n o f L i n e 3 5 L n 3 5 1 3 5 a Pr o p r i t a r y I n f o r m a l l o n Ln 1 0 a . 1 Ln 1 1 a . 2 Ln 1 2 a . 3 Ln 1 3 a . 4 Ln 1 4 a . S ln 1 5 a . 6 ln 1 6 a . 7 Dir e c t Ln l 0 . . 1 7 ln 1 8 J 1 8 a Ln 2 1 a ' 1 Ln 2 2 a ' 2 Ln 2 3 a . 3 Ln 2 4 a ' 4 Ln 2 5 l 5 Ln 2 8 a ' 6 Ln 2 7 a ' 7 Dir e c t Ln 2 1 . . 2 8 Ln 2 9 1 9 a Mo s s A d a m s . L L P V. " i o 3 2 11 0 1 2 3 Mid v a l e T e l e p h o n e E x c h a n g e . I d a h o St u d y A r e a : 4 7 2 2 2 6 Slu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r 2 2 4 1 0 C & W F D i s t 3 E q u a l SO U R C E ,L n 1 5 ,L n 4 3 Re c o r d s '" ' 'O U N T S S E P A R A T I O N 4 2 0 0 2 P r o p H I d F u l T e l e c o m U s e 5 D i r e c t A s s i g n m e n t 6 T O T A L P R O P H L D F U T T E L E C O M U S E 7 D i s t r i b u t n o f L i n e 6 "" " T s ' " 1 Dir e c t ln . . 5 Ln 6 a 8 2 0 0 3 P i t U n d e r C o n s t 9 D i r e c t A s s i g n m e n t 10 T O T A L P L T U N D E R C O N S T R 11 D i s t r b u t i o n o f L i n e 1 0 Ln 8 a ' " 1 Di r e c t Ln 6 . . 9 Ln i 0 / 1 0 a 12 2 0 0 5 T e l e c o m P l a n t A d j u s l 13 D i r e c t A s s i g n m e n t 14 T O T A L T E L E C O M P L A N T A D J U S T 15 ln 1 2 a . 1 Di r e c t Ln I 2 . . 1 3 Ln 1 4 / 1 4 a Ln 1 6 a ' " 1 17 1 4 3 8 D e f e r r C h a r g e s Ln 1 7 a . l 16 1 2 2 0 M a t e r i a l & S u p l x l P E 19 D I r e c t A s s i n m e n t 20 T O T A L M A T E R I A L S A N D S U P P L I E S Ln 1 8 a ' " 2 Dir e c t Ln 1 8 . . 1 9 CW C IN V E S T M E N T S E P A R A T I Ö N 22 E q u a l A c c s s G r o s s I n v e s t m e n t L n 2 2 a ' " 3 23 E q u a l A c c e s s G r o s s I n v e s t n t . D A D I r e c t 24 A c c D e p r e c i a t i n L n 2 4 a ' " 3 25 D e f e r r e d O p e r I n c T a x e s L n 2 5 a . 3 26 U n a m o r t i z e d E x p e n s e s L n 2 6 a . 3 27 T O T A L N E T E Q U A L A C C E S S I N V E S T M E N T L n 2 2 . 2 4 . 2 5 + 2 6 28 D I s t r i b u i o n o f L i n e 2 7 L n 2 7 1 7 a I I N V E S T A L L O W / D I S A L L O W S E P A R A T I O N I 29 I n v e s t m e n t A l l o l D i s a l l o a n c e s L n 2 9 a . 1 30 D i r e c t A s s i g n m e n t D i r e c t 31 T O T A L I N V E S T A L L O W I O I S A L L O W A N C E S L n 2 9 . . 3 0 Pr o o n e t a i y I n f o n n a t l o n TE L E C O M M U N I C A T I O N S P L A N T . O T H E R A C C O U N T S 71 0 1 0 0 7 S- 9 TÖ T A L CO M P A N Y a Ot h e r 21 7 , 7 4 6 21 7 , 7 4 6 10 0 . 0 0 0 % 13 , 6 9 0 13 , 6 9 0 16 3 , 5 3 3 ... . . . L A T A MS G b'87 , 7 5 3 87 , 7 5 3 40 . 3 0 0 % 9, 3 2 8 9, 3 2 8 4. 2 8 2 9 % In t r a L A T A MS G 'd 3,7 1 5 3,7 1 5 1.7 0 6 1 % 21 8 21 6 2,5 6 8 :o : o ; L T A MS G P L 5,7 3 9 5.7 3 9 2.6 3 5 8 % 41 6 41 6 5,0 3 2 := L A T A MS G 'h 54 , 5 3 9 1, 8 8 5 EA S Us e r De f i n e k 4,5 0 5 4,5 0 5 78 , 1 8 7 53 9 53 9 8,4 1 5 54 , 5 3 9 25 . 0 4 7 2 % 1, 8 8 0. 8 6 5 7 % 2. 6 1 8 51 , 7 2 3,9 3 5 3,9 3 5 36 . 0 8 9 14 1 14 1 1,0 8 7 2. 8 1 8 1.2 9 3 4 % 51 , 9 7 2 23 . 8 8 8 2 % 21 8 3, 7 1 7 3. 7 1 7 3U 8 1 21 8 1.4 9 2 Mo s s A d a m s , L L P Ve n 1 o 3 . 2 12 0 1 2 3 Mid v a l e T e l e p h o n e E x c h a n g e . Id a h o Stu d y A r e a : 4 7 2 2 2 6 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D l s t r 2 2 0 0 3 P U C - P c t 3 C o r p O p e r E x p e n s e s O l s t 4 2 6 8 0 C a p i l le a s e s D l s t r 5 N e t T e l e c o m P l a n t O i s t r e x d 4 0 4 0 . 4 3 1 0 6 2 1 1 0 S u p p o r t A s s e t s D l s t 7 2 2 1 0 C O E . S w ü C h i n 9 D i s t r 8 2 2 2 0 C O E . O p e r a t o r D l s t r 9 2 2 3 0 C O E . T r a n s m l s s l o n D i s r 10 2 3 1 0 l O T D i s t 11 2 4 1 0 C & W F D i s t 12 C O E , I O T , C & W F 13 'M E S e P A R A T I O N 14 7 3 0 0 N o n o p e r I n c & E x p e n s e s 15 A l F d s U s e d O u r C o n s t r 16 C o n t r i b u t o n s 17 A b a n d o n e C o n s t c t n 18 O t h e r N o n o p e r a t i n g E x p e n s 19 F i x e d C h a r g e s 20 I n t r e s t o n C a p i t a l l e a s e s 21 F i x e d C h a r g e s E x d C a p i t a l l e a s e s 22 A m o r t i z a t i o n o f D e b t D i s c o u n t 23 O t h e r I n t e r e s t 24 T O T A L F I X E D C H A R G E S 25 5 2 4 0 R e n t R e v e n u e s 26 S u p p o r t A s s e t s 27 C O E . S w ü C h i n g 28 C O E . O p e r a r 29 C O E . T r a s m i s s i o n 30 I n f O r i 9 r r e i m E q u i p 31 C & W F 32 N o t C l a s s l f i e b y A c c 33 U N B U N D L E D N E T W O R K E L E M E N T S 34 C & W F . U n b u n d l e d L o o p 35 O p e r a t o r S y s m s 36 T a n c e m S w i t h i n g 37 L o c a l S w i t c h i n g 38 T r a n s p o r t T e n n l n a t i o n 39 T r a n s p o r t F a c l l i t 40 S S 7 41 O S S 42 D i r d A s s i g n m e n t 43 T O T A L R E N T R E V E N U E S IN C O M E T A X A D J U S T M E N T S S E P A R A T I O N S 44 I T e A m o r t i z a t i o n . F e d e r a l 45 I T C A m o r t z a t i o n . S t a t e 46 T O T A L I T C A M O R T i Z A T i O N 47 A m o r t i z a t i n o f E x c e s s O e f T a x e s 48 C a p i t l i z e d P a y r l l T a x e s 49 D i r e c t A s s i g n m e n t 50 T O T A L C A P I T A L i Z E D P A Y R O L L T A X E S 51 D e p r e c i a t i o n A d j u s t e n t s 52 D i r e c t A s s i g n m e n t 53 T O T A L D E P R E C I A T I O N A D J U S T M E N T S 54 U n c o H e c b l e s . J o i n t M e s s a g e 55 U n c o l l e c t b l e s - E n d U s e r C C L 56 U n c o l l e c t b l e s - I n t e r e x c h a n g e C a r r e r 57 T O T A L U N C O L L E C T i B L E S 58 M i s e I n c A d j u s t m e n t 59 I n c A d j A l l o e o n 2 0 0 1 60 I n c A d j A l l o e o n 2 0 0 1 . D i r e c t A s s i g n m e n t 61 1 n c A d j A I I o c o n B i g 3 E x p 62 I n c A d j A U o c o n B i g 3 E x p - D i r e c t A s s i g n m e n t 63 T O T A L M I S C I N C A D J U S T M E N T S Pr o p r i t a r y I n f o n n a t l n SO U R C E ,l o 1 5 .L n 1 1 ,l n 1 7 ,L n 1 9 .L n 3 7 ,L n g .L n 3 7 ,L n 2 4 ,L n 7 7 ,L n 1 2 ,L n 4 3 ,L n 8 Ln 6 Ln 1 5 a ' 2 Ln 1 6 a . 3 Ln 1 7 a ' 1 Di r e c t Ln 2 0 a - 4 Ln 2 1 a - S Ln 2 a ' 5 Ln 2 3 a ' 5 Ln 2 0 . . 2 1 Ln 2 6 a ' 6 Ln 2 7 a - 7 Ln 2 8 a ' 8 Ln 2 9 a - g lo 3 0 a ' 1 0 ln 3 1 a - 1 1 Ln 3 2 a . 1 , D i r e c t ,L n 1 - l n 3 4 ,L n 2 4 . L n 3 5 ,L n 2 9 ' L n 3 6 ,L n 3 4 . L n 3 7 ,L n e s - L n 3 8 ,L n 6 5 ' l o 3 9 ,L n 7 S - L n 0 Ln 1 a . 1 Oi r e d Ln 2 6 . . 4 2 Ln 4 4 a ' 1 ln 4 5 a - 1 Ln 4 4 . . 4 5 ln 4 7 a . 1 Ln 4 8 a . 1 Di r e c t Ln 4 6 . . 4 9 Ln 5 1 a . 1 Di r e c t Ln 5 1 . . 5 2 Di r e c t Di r e c t Di r e c t Ln 5 4 . . 5 6 Ln 9 a ' 1 Di r e c t Ln 6 1 a - 1 3 Dir e c t Ln 5 9 . . 6 1 TO T A L CO M P A N Y a 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . ~ ~ % 10 0 . 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 10 0 . 0 0 10 0 . 0 0 0 % 16 7 , 4 2 7 16 7 , 4 2 7 71 0 1 0 0 7 CE R T A i N i N C O M E A C C O U N T S A N D A D J U S T M E N T S S,1 0 ¡1 : * : * i ~ * : ~ : : : : : : : ) 1 M l t J ~ ~ l ~ ~ ~ ¡ : Us e r O t e r De f i n e 'k !i~ ~ ~ ~ ~ ~ ~ * j l ~ i ~ ~ ~ t ~ ~ x : ~ : J : ~ ~ ~ ~ ~ r ~ J l : : r g & t : ~ : : $ : ~ ~ t ~ ¡ r j : i ~ ¡ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Ê ~ ~ ~ ~ ¡ i ~ ~ ~ ~ ~ ~ i f : ~ i ~ : : : : : : : : $ : : : ~ ~ : r : ~ l i ~ r l J g ß ~ : : : In l e r L A T A I n t r a L A T A I n i e r l T A i i L A T A MS G P L M S G P L M S G P L M S G b) C e ) ( d 40 . 3 0 0 % 4.2 8 2 9 % 1.7 0 8 1 % 2.6 3 5 8 % 25 . 0 4 7 2 % 0.8 6 7 % 1.2 9 3 4 % 23 . 8 8 8 2 % 40 . 3 0 0 % 4.2 8 2 9 % 1.7 0 6 1 % 2.6 3 5 8 % 25 . 0 4 7 2 % 0.8 6 5 7 % 1.2 9 3 4 % 23 8 8 8 2 % 49 . 2 5 4 5 % 3.7 7 1 4 % 1.4 8 4 7 % 3.0 1 8 1 % 20 . 5 6 9 4 % 0.5 6 6 5 % 0.7 9 4 9 % 20 . 5 4 0 5 % 39 . 2 1 4 6 % 4.0 9 1 1 % 1.9 0 2 % 3.0 6 3 4 % 28 . 9 0 8 4 % 1. 2 0 2 % 1.5 9 2 4 % 20 . 0 2 5 6 % 40 . 3 0 0 6 % 4.2 8 2 9 % 1.7 0 6 1 % 2.6 3 5 8 % 25 . 0 4 7 2 % 0. 8 6 5 7 % 1.2 9 3 4 % 23 . 8 6 8 2 % 82 . 0 3 0 0 % 2.9 7 0 0 % 15 . ~ ~ % 38 . 7 9 9 2 % 8.5 1 1 3 % 1.2 6 4 9 % 2.9 7 0 8 % 28 . 6 6 0 % 0.8 6 6 % 1.0 6 % 17 . 8 5 9 3 % 32 . 9 1 0 7 % 3,9 3 7 8 % 1.5 6 9 4 % 3.0 3 7 6 % 28 . 7 4 8 2 % 1.0 2 7 5 % 1,5 9 6 1 % 27 . 1 5 2 8 % 40 . 3 0 0 % 4.2 8 2 9 % 1.7 0 6 1 % 2.8 3 5 8 % 25 . 0 4 7 2 % 0. 8 6 5 7 % 1. 2 9 3 4 % 23 . 8 8 8 2 % 46 . 3 4 9 9 % 3.9 8 7 3 % 1.5 6 9 7 % 3. 1 9 0 21 . 7 4 8 7 % 0. 5 9 9 0. 8 4 0 4 % 21 . 7 1 6 2 % 65 . 6 5 6 6. 6 5 0 3, 1 8 8 5, 1 2 9 48 , 4 0 0 2, 0 0 2, 8 8 33 . 5 2 8 65 , 6 5 6 6, 6 5 0 3, 1 8 8 5, 1 2 9 48 . 4 0 0 2.0 0 2,8 6 6 33 , 5 2 8 Mo s s A d a m s , L L P VI 1 ' 1 o 3 . 2 13 0 1 2 3 Mi d v a l e T e l e p h o n e E x c h a n g e . Id a h o St u d y A r e a : 4 7 2 2 6 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 1 1 0 L a n d & S u p t A s s t s D i s l t 2 T o t a l C O E O l s + E A O l s t 3 2 3 1 0 l O T C a l 1 . O t e r O l s l , 4 2 3 1 0 l O T C a t 2 . C P E D i s t 52 4 1 0 SO U R C E ,L n 1 4 ,L n 7 9 1 n d E A ,L n 1 .L n 1 0 ,ln 4 3 TO T A L CO M P A N Y a PL A N T S P E C I F I C E X P E N S E S 71 2 0 1 0 0 7 S. 1 1 i.~ m ~ _ : : s = : * ~ l t r : l ~ ~ A : l ~ J g ~ k ~ ~ ~ ~ t f l ~ ¡ & 1 ~ ~ ~ ~ ~ ~ J l : l ~ ~ ~ ~ l 1 i i ~ f . l ~ " : ~ , r ~ ~ : : ~ 1 % ~ I A I : ~ ~ 1 ~ ~ i ~ : : J In t e r l T A I n t r a L A T A I n i e r l T A I n t L A T A MS G P L M S G P L M S G P L M S G bl I c l f d l l e I i n 1 0 \ I h ... , ' i e r 10 0 . 0 0 0 % 10 0 . 0 0 0 10 0 . 0 0 0 0 % 10 0 . ~ ~ % 40 . 3 0 0 6 % 56 . 4 4 6 0 24 . 2 1 7 0 % 32 . 9 1 0 7 % 4.2 8 2 9 % 5.0 3 7 0 % 1.7 0 8 1 % 1.9 6 0 9 % 0.7 8 3 0 % 2.6 3 5 8 % 1.7 5 8 1 % 2.3 5 0 0 1 0 3.0 3 7 8 % 25 . 0 4 7 2 % 16 . 9 6 1 3 % 22 . 8 5 0 0 % 0. 8 6 5 7 % 0. 5 1 2 3 % 1. 2 9 3 4 % 0. 6 3 2 3 % 23 . 8 6 8 2 % 16 . 6 9 2 2 % 50 ~ ~ % 66 1 7 D i r e c t A s s i g n m e n t 8 T O T A L N E l W O R K S U P P O R T E X P E N S E S 27 . 1 5 2 8 % 9 6 1 2 0 G e n e r a l S u p p o r t E x p e n s e s 10 D i r e c t A s s i g n m e n t 11 T O T A L G E N E R A L S U P P O R T E X P E N S E S 12 6 2 1 0 C O E S w i t c h i n g E x p e n s e s 13 D i r e c t A s s i g n m e n t 14 T O T A L C O E S W I T C H I N G E X P E N S E S 15 6 2 2 0 C O E O p e r a t o r S y s t m s E x p e n s e s 16 D i r e d A s s i g n m e n t 17 T O T A L C O E O P E R A T O R S Y S E X P E N S E S 18 6 2 3 0 C O E T r a n s m i s s i O n E x p e n s e s 19 D i r e c t A s s i g n m e n t 20 T O T A L C O E T R A N S M I S S I O N E X P E N S E S 21 T O T A L C O E E X P E N S E S 22 6 3 1 0 l O T E q u i p E x p e n s e s 23 C a t 1 - o l h e r l O T E q E x p e n s s 24 C a t 2 - C u S l P r e m E q u i p E x p 25 D i r e c t A s s i g n m e n t 26 T O T A L l O T E X P E N S E S 27 6 4 1 0 C & W F E x p e n s e s 28 D i r e c t A s s i g n m e n t 29 T O T A L C & W F E X P E N S E S 30 P t t S p e c E x p x 1 1 1 0 . 6 1 2 0 31 T O T A L P L A N T S P E C O P E R E X P 32 D I s t b u t i o n o f L i n e 3 1 Pro p t i e t a r y I n f o r m a t i o n Ln 8 a ' 1 Dir e c t Ln 8 . . 7 ln 9 a . 1 Dir e c t ln 9 . . 1 0 Ln 1 2 a ' 2 Dir e c t Ln 1 2 . . 1 3 Ln 1 5 a . 2 Dir e c t Ln 1 5 . . 1 8 Ln 1 8 a ' 2 Dir e c t Lo 1 8 . . 1 9 Ln 1 4 + 1 7 + 2 0 Ln 2 3 a ' 3 Ln 2 4 a ' 4 Dir e c t Ln 2 3 . . 2 5 Ln 2 7 a ' 5 Dir e c t Ln 2 7 . 2 8 Ln 2 1 + 2 6 + 2 9 Ln 8 + 1 1 + 3 0 Ln 3 1 1 3 1 a 88 , 5 4 7 68 . 5 4 7 40 4 . 7 2 8 40 4 , 7 2 8 22 3 . 2 2 2 22 3 , 2 2 2 82 7 , 9 4 8 33 5 , 9 3 7 33 5 , 9 3 7 96 3 , 8 8 5 1,0 3 2 , 4 3 2 10 0 . ~ ~ % 27 . 8 2 5 27 , 8 2 5 22 8 , 5 2 22 8 , 4 5 2 12 6 , 0 0 12 6 , 0 0 35 4 . 4 5 2 11 0 , 5 5 9 11 0 , 5 5 9 48 5 , 0 1 1 49 2 . 6 3 6 47 . 7 1 6 0 3.9 3 7 8 % 13 , 2 2 9 44 , 8 5 8 47 , 7 9 4 4.8 2 9 2 % 1.5 8 9 4 % 28 . 7 4 8 2 % 2.9 3 8 2,9 3 8 20 , 3 8 8 20 . 3 8 8 1. 1 8 9 1, 1 8 9 7,9 3 8 1.8 0 7 1.8 0 7 7, 1 1 5 7, 1 1 5 17 . 1 6 9 17 . 1 8 9 88 , 8 4 7 68 , 5 4 7 7,9 3 8 11 , 2 4 4 11 , 2 4 4 31 . 8 3 0 4.3 7 7 4,3 7 7 12 , 3 1 3 3.9 2 4 3,9 2 4 11 . 0 4 0 37 . 8 6 1 37 , 8 6 1 10 8 , 5 0 8 13 , 2 2 5.3 3 9 5.3 3 9 17 . 8 5 3 10 . 2 0 4 10 . 2 0 4 21 . 2 4 4 96 . 5 7 8 98 . 5 7 6 20 3 . 0 8 18 . 8 2 2 1.8 2 3 1 % 23 , 0 5 1 2.2 3 2 7 % 22 0 . 2 5 3 21 . 3 3 3 4 % Mo s s A d a m s . L L P V- n 1 o 3 . 2 1. 0 2 7 5 % 7. 2 6 2 0. 7 0 3 4 % 1. 5 9 6 1 % 59 3 59 3 86 7 88 7 16 . 3 8 1 18 . 3 8 1 2,0 7 3 2,5 5 9 87 , 5 5 8 87 . 5 5 8 2.0 7 3 2,5 5 9 1,1 4 4 1.4 1 1 1,4 1 1 3,9 7 0 37 . 2 6 1 37 , 2 8 1 1.1 4 4 3.2 1 7 10 4 . 8 1 8 3, 4 5 2 5. 3 6 2 91 . 2 1 8 3. 4 5 2 5. 3 8 2 91 . 2 1 8 8. 6 8 9 9.3 3 2 19 6 , 0 3 4 21 2 , 3 9 5 20 . 5 7 2 3 % 10 , 2 1 9 0. 9 8 9 8 % 14 0 1 2 3 Mid v a l e T e l e p h o n e E x c h a n g e . Id a h o Stu d y A r e a : 4 7 2 2 2 6 Stu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r 2 T o t a l C O E , l O T , C & W F D l s t r 32 1 1 0 S u p p o r t As s e t s D l s t r 4 2 2 1 0 C O E . S w R c h l n g D i s 5 2 2 2 0 C O E - O p e r a o r D l s l r 6 2 2 3 0 C O E - T r a n s m l s l o n D l s t 7 2 3 1 0 l O T D l s t 82 4 1 0 C & W F D l s t 9 2 0 0 2 P l O P H I d F t T e l U s e D l s t 10 2 6 8 0 C a p i l L e a s e s D i s t r 11 2 6 8 0 L e a s e h o l d I m p r o v e m e n t D l s t 12 2 6 9 0 I n t a n g i b A s s e t s D l s t r 13 2 0 0 5 SO U R C E ,l o 1 5 .L n 7 + 9 ,L n 9 .L n 4 9 .L n 2 4 ,L n 7 7 ,L n 1 2 ,L n 4 3 ,L n 7 ,L n 1 9 ,L n 3 0 ,L n 3 6 ,L n 1 5 PL A N T N O N S P E C I F I C E X P E N S E S 71 0 t o o 7 TO T A L CO M P A N Y la l S.1 2 ¡¡ ~ ¡ i ~ ~ i ~ i i l i ~ ; ; . ~ ; i m ~ ~ l T ~ ~ ~ : J : ~ ~ ~ : s : : : : : : i § i ~ i f : ~ i t l ~ i l ~ t l t ¡ j i ~ i 1 ; ' ? ~ : : : $ : ¿ m M l ~ 1 ¿ l : J l à ~ : : : ? : * ~ : ~ i ¡ J l l i i i l t l ~ ¡ ¡ ~ ~ t ~ ~ ~ ~ ~ ~ : : : ~ : : : ~ ~ ~ l g t i : ~ : : : : ~ t ¡ i l i l ~ ~ ~ ~ ~ ~ 1 l : ~ 1 In t e r t T A I n l r a L A T A I n t e r t T A I n t L A T A E A S U s e r O t h r ~~ ~ ~ ~ ~ ~ ~ M ~ M M M ~ m M W m m 0 0 a 10 0 . ~ ~ % 10 0 . ~ ~ % 10 0 . 0 0 0 % 10 0 . ~ ~ % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 40 . 3 0 0 % 40 . 3 0 0 % 40 . 3 0 0 6 % 82 . 0 3 0 0 % 38 . 7 9 9 2 % 32 . 9 1 0 7 % 4.2 8 2 9 % 4.2 8 2 9 % 4.2 8 2 9 % 8.5 1 1 3 % 3.9 3 7 8 % 1.7 0 6 1 % 1.0 6 1 % 1. 7 0 6 1 % 2.9 7 0 0 % 1.2 6 4 9 % 1.5 8 9 4 % 2.6 3 5 8 % 2,6 3 5 8 % 2.8 3 5 8 % 25 . 0 4 7 2 % 25 . 0 4 7 2 % 25 . 0 4 7 2 % 0.8 6 5 7 % 0.8 8 5 7 % 0.8 6 5 7 % 0.8 6 5 6 % 1.0 2 7 5 % 1.2 9 3 4 % 1.2 9 3 4 % 1.2 9 3 4 % 23 . 8 6 8 2 % 23 . 8 6 8 2 % 23 . 8 6 8 2 % 15 . ~ ~ % 2.9 7 0 8 % 28 . 6 6 % 1.0 6 6 4 % 1.5 9 8 1 % 17 . 8 5 9 3 % 27 . 1 5 2 8 % 3.0 3 7 8 % 28 . 7 4 8 2 % SE P A R A T I O N 14 8 5 1 0 O t P 15 D i r e c t A s s i n m e n t 16 T O T A L O T H P R O P P L A N T & E O E X P 17 6 5 3 0 N e t w r k O p e r a t i n s E x p 18 D l r e d A s s i g n m e n t 19 T O T A L N E T W O R K O P E R A T I O N S E X P 20 6 5 4 0 A c r s s E x p e n s e s 21 A c r s s E x p e n s e x / F e d e r a l S u p p o r t 22 F e d e r a l S u p p o r t 23 T O T A L A C C E S S E X P E N S E S 24 6 5 6 0 D e p r a n d A m o r t E x p e n s e s 25 O e p r ø S u p p o r t A s s e t s 26 D e p r - S u p p o r t A s s e t s ø D i r e c t A s s i g n m e n t 27 D e p r . C O E - S w l t l n g 28 D e p r - C O e . . w i c h l n g . D i r e c t A s s i g n m e n t 29 D e p r - C a E - O p e r a t o r 30 D e p r . C O E . O p e r a t o r . D I r e c t A s s i g n m e n t 31 D e p r ø C O E - T r a n s m i s s i o n 32 D e p r - C O E . T r a n s m i s s l o n ø D i r c t A s s i g n m e n t 33 D e p r . I n t o O r l f T e r m E q u l p 34 D e p r - I n f o O r f l T e r m E q u i p ø D l r e d A s s i g n m e n t 35 D e p r . C a b l & W i r e F a c i i n l e s 36 D e p r . C a b l e & W i r e F a c i l i t s . D i r e c t A s s i g n m e n t 37 D e p r - P r o p H i d F t T e l U s e 38 A m o r t - C a p i t a l L e a s e s 39 A m o r t - L e a s e h o l d I m p r v e m e n t s 40 A m o r t - I n t a n g i b l e A s s e t 41 A m o r t - O t h e r 42 A m o r t - D i r e A s s i g n m e n t 43 T O T A L D E P R & A M O R T E X P E N S E S 44 T O T A L P L A N T N O N S P E C O P E R E X P 45 D i s t b u t n o f L i n e 3 9 Pro p r i t a r y I n f o r m a t i o n Ln 1 4 a - 1 Di r e c t Ln 1 4 . . 1 5 Ln 1 7 a - 2 Dlr e d Ln 1 7 . . 1 8 Di r e c t Dlr e d Ln 2 1 . . 2 2 Ln 2 5 a " 3 Di r e c t Ln 2 7 a " 4 Di r e c t Ln 2 9 a . 5 DI r e c t Ln 3 1 a ' 8 DI r e c t ln a ' 7 Dlr e d Ln 3 5 a " 8 Di r e c t Ln 3 7 a . 9 Ln 3 8 a . ' 0 Ln 3 9 a ' 1 1 Ln 4 0 a ' 1 2 Ln 4 1 a - 1 3 Di r e Ln 2 5 . . 4 1 Ln 1 8 + 1 9 + 2 3 + 4 3 Ln 4 4 / 4 4 a 13 4 . 7 1 0 20 1 , 3 1 7 54 8 , 5 7 4 90 7 , 3 4 3 95 6 , 4 4 4~31 , 3 5 7 31 , 3 5 7 17 , 7 4 4 17 , 7 4 4 24 , 7 4 2 16 3 , 5 7 9 31 9 , 1 8 8 34 9 , 5 8 9 36 . 5 4 8 8 % 12 , 6 3 7 12 , 6 3 7 17 , 7 4 4 17 , 7 4 4 54 , 2 8 9 20 , 2 9 8 81 , 0 2 4 40 , 1 1 2 41 , 4 5 5 4.3 3 4 2 % 1,3 4 3 1,3 4 3 53 5 82 7 53 5 82 7 5, 7 7 0 2,2 9 8 3,5 5 1 33 , 7 4 1 73 5 18 , 5 1 1 2, 6 4 2 8,1 4 8 59 , 3 1 4 17 , 8 3 1 7,2 6 5 15 , 2 8 7 14 5 . 3 4 9 12 , 9 4 0 13 , 4 7 5 1.0 8 9 % 24 , 9 8 6 25 , 8 1 2 2.8 9 8 8 % 23 8 , 4 0 4 24 8 , 2 5 8 25 . 7 4 7 3 % Mo s s A d a m s , L L P Ve , . 1 o 3 . 2 7, 8 5 4 7, 8 5 4 7, 2 2 9 7,5 0 1 0.7 8 4 2 % 27 1 40 6 7,4 8 . 4 27 1 40 6 7.4 8 4 1, 1 6 8 1, 7 4 2 32 , 1 5 3 3,7 1 1 85 1 1, 9 1 9 32 , 9 0 8 5. 2 1 2 7, 7 4 5 16 4 , 3 0 6 11 , 4 0 6 11 , 8 1 2 1.2 3 5 0 % 25 3 , 0 7 8 28 0 . 5 6 2 27 . 2 4 2 8 % 15 0 1 2 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 d a h o St u d y A r e a : 4 7 2 2 2 6 St u d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 M a r k e t i n g e x p e n s e f a d o r 2 W S W S - T e l O p e r S v c s 3 S u b s c r i b e r L i n e M O U 4 E U S e r v i c e O r d e r C o n t å s 5 E U B i l e d R e v e n u e I n e l e e i 6 E U B i l e d I n q u i r y C o n t a c t 7 I X $ y C O r d P r o c C o n t c t s 8 I X B i l l e d R e v e n u e 9 I X B m I n q C o n t a c 10 SO U R C E ~e C O r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d Re c o r d s Re c o r d s TO T A L CO M P A N Y a 10 0 . 0 0 10 0 . 0 0 10 0 . 0 0 10 0 . 0 0 10 0 . 0 0 0 0 % 10 0 . ~ ~ % 10 0 . 0 0 0 10 0 . 0 0 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 30 6 2 9 0 27 . 0 0 31 . 1 3 9 6 % 25 . 0 0 0 0 % 50 . ~ ~ % 50 . 0 0 50 , ~ ~ % 71 2 0 0 7 .5 . . 0 4 0 % 50 . ~ ~ % 3" - 6 9 7 % .0 ~ ~ % Ln 1 1 a ' " 1 Olr e d Ln l 1 . . 1 2 'A R A T I O N RA T f o N 14 6 6 2 0 15 T e l e p h o n e O p e r a t o r S e r v i c : 16 T e l O p e r a t o r S v c 17 D i r e c t A s s i g n m e n t 18 T o t a l T e l O p e r S v c E x p Ln 1 6 a - 2 Di r e c t Ln 1 6 . . 1 7 19 P u b l i s h e d O i r e d L l s t l n g s : 20 C l a s s f f d 21 T W X 22 A l p h a 23 F o r e i g n 24 T o t a l P u b l D i r e c t l i s t Ol r e d Dir e c t Ln 2 2 a - 3 Ol r d Ln 2 0 . . 2 3 25 A I I O l h e r . 26 C a t l - L B O E E U S v e O r d P r o c 27 P r e s u b s c r l p t o n 26 O t h e r 29 C a t H B O E E U P m t & C O L 30 . C i l 31 - O t h e r 32 C a l l - L B O E E U B I I I I n 33 - C I I 34 . O t h e r 35 C a l l - L B O E I X S v c O r d P r o c 36 C a l l - L B O E I X P m t & C O L 37 C a l I . L B D E I X B l l l n q 38 C a l l - L B O E C n C o l & A d m i n 39 T o t a l C a t I . L B O E Ol r d Ln e s - 4 Di r c t Ln 2 9 a ' " S Olr e d Ln 3 2 a ' " S ln 3 5 a . 7 Ln 3 S a - S Ln 3 7 a . 9 ln 3 8 a . , 0 Ln 2 6 . . 3 6 Pro p r i t a r y I n f o r m a t l n r: t m U ~ l ~ ; ! ~ f 1 * , ~ ~ : i ~ 1 N H g ~ k ~ ~ ~ ~ ~ 1 ¡ ¡ ¡ ~ m l 1 n i ~ MS G b :~ : ; : : ~ ~ : i r ~ ~ : ~ i ~ W : I ~ ~ ~ ~ : : : : : : : : : : f f ~ ~ ~ t t ~ l r : l t : ~ , ¡ ; : : ~ ~ : ~ * ~ ~ ~ ~ ~ ~ W ~ ~ : : : ~ : ~ ~ : ~ g ~ ¥ : : * : : : : 'A I n t r a L A T A E A S U s e r MS G P L D e f i n e M m i n ~ 09 9 0 0 % 2.1 6 0 0 11 . 5 0 0 2.3 l U O % 17 . 5 0 0 0 % 3,4 6 0 3, 4 6 0 29 , O M 9,6 6 6 29 , 0 6 4 9,6 6 8 7,6 4 7 . f t r : j t : P f 1 ~ r r ! f t : J ; ; f , , ~ ~ R t . ~ 1 ? n ~ ~ t t g r 1 t ; r ? ~ ~ _ : 9.0 5 0 29 . 0 6 4 ;~ ' ลก t f ; j % r f : f i , * ' F ~ r t ~ ~ ~ Y t ; 7.2 6 6 96 . 8 6 0 ~ 2. 17 , 6 3 5 Mo s s A d a m s . L l P Ve , * l a n 3 2 36 , 2 6 9 16 0 1 2 3 71 2 0 1 0 0 7 Mid v a l e T e l e p h o n e E x c h n g e . I d a h o St u d y A r e a : 4 7 2 2 2 6 St u d y V e a r : 2 0 0 6 -r A L CO M P A N Y LI N E DE S C R I P T I O N a 28 . 4 0 3 0 % SO . O O O O % EX P S E P A R A T I O N C O N r O 42 Ca t 2 . C S E M S 9 P r o c 43 Jo i n t M e s s a g e ln 4 2 a . 4 0 I 3,4 4 4 I 97 8 44 Dir e c t A s s i g n m e n t Dir e c t 45 Ca t 2 . C S E O l h e r B & C 46 Dir e c t A s s i g n m e n t Dir e c t 33 , 7 4 4 10 , 0 6 47 En d U s e r C o m m o n L i n e Dir e c t 1,7 7 6 1, 7 7 6 48 Ca i 2 - e S E C A B S Ln 4 8 a . 4 1 22 , 8 4 0 11 , 4 2 0 49 To l a l C a l 2 . C S E Ln 4 2 . . 4 8 61 , 8 0 4 24 , 2 3 8 50 To t a l A l l O t h e r C a t 1 & 2 Ln 3 9 + 4 9 15 8 , 6 8 4 68 , 0 9 0 51 Di s r i b u t n o f l i n e 5 0 Ln S 0 J 0 a 10 0 . 0 l , ( 36 . 8 0 7 3 % 52 Ca t 3 . A 1 O l h e r C S E ln 5 2 a . S 1 53 Ca t 3 - 0 i r e e t A s s i g n m e n t Dir e c t 1, 3 2 2 1,3 2 2 54 To l a l A l l O t h e r C a t 3 Ln 5 2 . . 5 3 1, 3 2 2 1,3 2 2 55 To t l A l l O l h e r . C a t 1 , 2 , 3 Ln 0 + 5 4 16 0 , 0 0 59 , 4 1 2 58 T O T A L S E R V I C E S E X P E N S E S Ln 1 8 + 2 4 + S 5 16 3 , 4 8 6 59 , 4 1 2 57 T O T A L C U S T O M E R O P E R E X P E N S E S ln 1 3 + 5 6 16 3 , 4 6 6 59 , 4 1 2 58 Dis t ñ b u t n o f l i n e 5 7 Ln 5 7 / 5 7 a 10 0 . 0 0 0 0 % 36 . 3 4 5 1 % 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 ::: ~ ~ r : : ~ ~ ¿ ; : ~ ~ : : ~ g : ~ k : : ~ * * : ~ ! ~ ~ ; l ~ i l ; ; ; ~ ; ~ ~ ~ ~ ~ ¡ ¡ m f ~ m i j ~ ~ ~ ~ ~ ~ ; ~ ¡ l ~ : : : : : : : ~ ~ : ~ l = ~ ~ : : : r : $ ~ - : ~ : : t i ~ m - ~ ~ ¡ ~ ~ ~ ~ . ~ ¿ ~ ~ r ~ i l ~ ~ ~ * ; ~ l i : : : $ : : : ~ ~ ~ ~ : : : : : : r : : ln t r L A T A I n i e r l T A I n t r L A T A E A S U s e r MS G P L M S G P L M S G P L D e f i n e d ~) ~ ) m f u ' ~ f l ) m ~ 1.9 6 7 3 % 69 6 2 9 7 % 25 . 0 0 0 0 % 25 . 0 0 0 % 68 2,3 9 8 11 . 8 4 0 11 , 8 4 0 5, 7 1 0 5,7 1 0 5,7 7 8 19 , 9 4 8 11 , 8 4 0 14 , 9 0 2 37 , 5 8 3 48 , 1 0 9 9. 3 9 1 1 % 23 . 6 8 3 % 30 . 3 1 7 4 % 14 , 9 0 37 , 5 8 3 48 . 1 0 9 14 , 9 0 2 41 , 0 4 3 48 , 1 0 9 14 , 9 0 2 41 , 0 4 3 48 . 1 0 9 9.1 1 6 3 % 25 . 1 0 1 3 29 . 4 3 0 5 % Pr o p r i e t a r y I n f r m a t i o n Mo s s A d a m s . l L P Vø i o 3 _ 2 17 0 ( 2 3 Mi d v l e T e l e p h o n e E x c h a n g e - I d a h o St u d y A r e a : 4 7 2 2 2 6 St u d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 B i g T h r e e E x p e n s e s D i s t r 2 2 0 0 1 T P I S D l s l ' 3 E q u a l A c c s s I n v e s t D l s t .4 N e t T e l e c o m P l a n t D l s t e x e l 1 2 2 0 , E A !J 6" 0 7 E A S 8 A l l O t h e ' 9 D i r e c t A s s i g n m e n t 10 T O T A L E X E C & P L A N N I N G E X P E N S E S 11 6 7 2 0 G e n ' l a n d A d m i n E x p e n s e s 12 E A S 13 A i l Oth e r 14 D i r e c t A s s i g n m e n t 15 T O T A L G E N ' L & A D M I N E X P E N S E S SO U R C E ,L n 8 ,l n 1 5 ,L o l 8 .l n 3 7 5- , L n 2 7 Di r e c t ln 8 a - 1 Di r e c t Ln 7 . . 9 Di r e c t ln 1 3 a - 1 Di r e c t ln 1 2 . . 1 4 18 T O T A L C O R P O R A T E O P E R E X P E N S E S L n 1 0 + 1 5 17 O i s t r l b u l l o n o f Un e 1 6 l n 1 6 1 1 6 a I O P E R A T I N G T A X E S S E P A R A T I O N S I 16 7 2 0 0 O p e r a t i n g T a x e s ( A c t a l ) 19 F e d e r a l I n c o m e T a x e s l n 1 9 a - S 20 S t a t e & l o c a l I n c m e T a x e s L n 2 0 a - S 21 O P F E D , S T A T E , L O C A L T A X E S . C W C 22 F I T A l l o a n c e s l l s a l l o n c e s 23 O p e r a t i n g T a x e s - P r o p e r t 24 O p e r a i n g T a x e s . O t h e r 25 O p e r a t i n g T a x e s - D i r e c t A s s i g n m e n t 26 T O T A L O P E R T A X E S x l l T , S I T OP E R A T I N G R E V E N U E S E P A R A T I O N S 27 5 0 0 0 B a s i c L o c a R e v e n u e 28 5 0 6 0 I n t e r s A c c s s l n d U s e r R e v e n u e 29 5 0 6 4 S t a t e A c c : s l n d U s e r R e v e n u e 30 5 1 0 0 l o n g D i s t n c e M e s s a g e R e v e n u 31 5 2 0 0 M i s c e l l a n e o u s O p e r a i n g R e v e n u e 32 7 1 0 0 O t h e r O p e r a t i n g I n c m e 33 T i 'À R A T I O N ~ 36 E 37 I n t r e s t o n C u s t m e r D e p o s i t 36 O t h r I n t e r e s t D e d u c t n 39 D i r e c t A s s i g n m e n t 40 T O T A L E X P E N S E A L L O W I O I S A L L O W A N C E S No t e 1: FI T a n d S I T C a l c u l a t a n th e S . 1 Pr o p r i e t a r y I n f o r m a t i o n Ln 2 2 a . 2 Ln 2 3 a . 2 Ln 4 a . 2 Di r e c t Ln 2 3 . . 2 5 Di r c t Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Ln 7 . . 3 2 Ln 3 4 a - 3 ln 3 4 , , 3 4 Ln 3 7 a . 4 Ln 3 7 a . 4 Di r e c t Ln 3 7 , . 3 8 71 2 0 1 0 0 7 CO R P O R A T E O P E R A T I O N S , T A X E S , & E O U A L A C C E S S E X P E N S E S S. 1 4 ¡~ l : ~ l ~ l ~ m f : l i ¡ l : ; : : : ~ ~ ~ * : ~ ~ ~ : ~ M : ~ ~ ~ : : r : ~ t ~ ~ ~ ~ ! ~ ~ ~ * i ¡ ~ ~ ¡ f i 1 ~il : t ¡ f f : ~ ~ t m ~ ~ ~ : : : : : : ~ W ~ ~ ~ T : t T : ~ ~ r ~ ~ : ; r 1 : $ à * ~ f ~ ¡ ¡ r : l ~ 1 .~ ~ ~ ~ ~ ; ~ ¡ l ~ ¡ r £ t ~ : : : $ : : : $ ~ g ~ : ~ : : : : ~ J ~ ~ ~ ~ TO T A L In t e r l T A In l r a L A T A In t e r L T A In t r a L A T A EA S Us e , CO M P A N Y MS G PL MS G PL MS G PL MS G De f i n e a b c d e h k 10 0 . 0 0 48 . 3 4 9 9 % 3.9 8 7 3 % 1.5 6 9 7 % 3. 1 9 0 % 21 . 7 4 6 7 0.5 9 9 0 % 0. 8 4 0 4 % 21 . 7 1 6 2 % 10 0 . ~ ~ 0 / . 40 . 3 0 0 6 % 4.2 8 2 9 % 1.7 0 8 1 % 2.6 3 5 8 % 25 . 0 4 7 2 % 0.8 6 5 7 % 1. 2 9 3 4 ' 1 23 . 8 6 8 % 10 0 . 0 0 1 0 39 . 2 3 1 1 % 4.0 9 1 5 % 1. 9 0 0 % 3.0 6 3 5 % 28 . 9 0 % 1.2 0 0 % 1. 5 9 2 4 % 20 . 0 0 7 0 " 1 0 10 0 . 0 0 42 . 9 2 8 8 % 4.0 8 2 6 % 1.5 2 4 0 % 2.9 7 3 5 % 23 . 4 1 7 9 % 0. 6 9 8 9 % 1. 0 2 2 8 % 23 . 3 5 1 7 % 20 3 , 2 5 8 1, 7 0 8 20 3 , 2 5 8 1, 7 0 23 1 , 6 7 9 1, 9 4 7 24 , 8 9 8 25 6 , 5 7 5 7,3 9 3 60 , 3 8 3 1, 3 8 8 1,9 4 7 50 , 3 1 2 45 9 , 8 3 3 22 8 , 4 8 9 17 , 3 4 2 8,8 2 7 13 , 8 7 8 94 , 5 8 5 2,6 0 3, 8 5 5 94 , 4 5 2 10 0 . 0 0 49 . 2 5 4 5 % 3. n 1 4 % 1.8 4 7 % 3.0 1 8 1 % 20 . 5 6 9 4 % 0. 5 6 6 5 % 0. 7 9 4 9 % 20 . 5 4 0 5 % 12 , 8 0 0 I 5,4 9 5 52 3 19 5 38 1 2, 9 9 7 89 13 1 2,9 8 9 4,7 1 0 2,0 2 2 19 2 72 14 0 1, 1 0 3 33 48 1,1 0 0 17 , 5 1 0 7,5 1 7 71 5 28 7 52 1 4, 1 0 0 12 2 17 9 4,0 8 9 31 , 1 0 ~ I 12 , 5 3 8 1,3 3 2 53 1 82 0 7,7 9 1 28 9 40 2 7, 4 2 5 52 5 62 5 31 , 6 3 2 13 , 0 6 1 1,3 3 2 1 53 1 .1 82 0 .1 7,7 9 1 26 9 1 40 2 7, 4 2 5 Mo s s A d a m s , U P Ve l l o : U 18 0 ( 2 3 7/ 2 0 1 0 0 7 Mid v a l e T e l e p h o n e E x c a n g e . I d a h o Stu d y A r e a : 4 7 2 2 2 6 RE S E R V E S & D E F E R R A L S 8-1 5 Stu y Y e a r : 2 0 0 6 ¡~ i t : f $ i ~ f : ~ ~ l $ : : : : : : : : : ~ : : ~ ~ ~ ~ ; i i i ~ ~ ~ r g : ~ r TO T A L In t e r L T A CO ~ : ' A N Y MS G PL ~: ~ PL MS G ::~ MS G ~k LIN E DE S C R I P T I O N SO U R C E b le I 'e l 1f hI SE P A R A T I O N S F A C T O R 1 2 1 ' 1 0 S u p p o r t A s s e t s D l s t ,L n 9 10 0 . ~ ~ % 40 . 3 0 0 6 % 4.6 2 9 % 1.7 0 6 1 % 2.8 3 5 8 % 25 . 0 4 7 2 % 0. 6 6 7 ' 1 0 1. 2 9 3 4 % 23 . 6 6 6 2 % 2 2 2 1 0 C O E . S w f t c h l n 9 , I n d . E A D l s t S- 5 , L n 3 7 + S . 9 , L n 2 6 10 0 . 0 0 0 0 % 82 . 0 3 0 0 2.9 1 0 0 % 15 . ~ ~ % 3 2 2 2 0 C O E . O p e r a t o r D l s l r ,L n 2 4 4 2 2 3 0 C O E - T r a n s m i s s i o n O l s t ,L n 7 7 10 0 . ~ ~ % 36 . 7 9 9 % 8. 5 1 1 3 % 1.2 6 4 9 % 2.9 7 0 8 % a6 6 0 5 % 0. 8 6 5 8 % 1. 0 5 % 17 . 6 5 9 3 % 52 3 1 0 l O T D I s .L n 1 2 62 4 1 0 C & W F D l s t ,l n 4 3 10 0 . 0 0 0 0 % 32 . 9 1 0 7 % 3. 9 3 7 8 % 1.5 6 9 4 % 3. 0 3 7 8 % 28 . 7 4 8 2 % 1. 0 2 7 5 % 1. 5 9 6 1 % 27 . 1 5 2 8 % 7 2 0 0 1 T P I S x I a n d ,L n 1 8 10 0 . 0 0 0 0 % 40 . 3 0 0 6 % 4.8 2 9 % 1.7 0 6 1 % 2. 6 3 5 8 % 25 . 0 4 7 2 % 0. 6 6 7 % 1.2 9 3 4 % 23 . 6 6 6 2 % 8 G e n e r a l S u p p o r t . C O E , l O T , C & W F ,L n 1 + 8 10 0 . 0 0 0 0 % 40 . 3 0 0 6 % 4. 2 8 2 9 % 1. 7 0 6 1 % 2. 6 3 5 6 % 25 . 0 4 7 2 % 0.8 6 5 7 % 1. 2 9 3 4 % 23 . 6 6 6 2 % 9 2 0 0 P r o p H i d F i r Te l U s e D l s i r ,L n 7 10 2 6 6 0 C a p t i a l L e a s e s D I s ,L n 1 9 11 2 6 8 0 L e a s e h o l d I m p r o v e m e n t ,L n 3 0 12 2 6 9 0 I n t a n g i b l e A s s e t s D I s ,L n 3 6 13 2 0 0 5 T e l e c o m P R A d u s l n t Ln 1 5 RE S E R V E S & D E F E R R A L S S E P A R A T I O N 14 1 5 0 0 O t h e r J u r i s A s s e t s . N e l Dir e c t 15 3 1 0 0 A c c u m D e p r - T e l P i t I n S v c 11 ' 0 1 ~ I 16 Su p p o r t A s s e t s Ln 1 6 a " 1 1, 2 7 2 , 2 2 0 51 2 , 7 1 3 54 , 4 6 6 21 , 7 0 5 ~ I 33 , 5 3 3 ~ I 31 8 , 6 5 5 16 , 4 5 5 30 3 . 6 5 6 17 Su p p o r t A s s e t s - D i r e c t A s s i g n m e n t Dir e c t 16 CO E - S w f t e h l n o Ln 1 8 a " 2 73 3 , 1 1 9 80 1 , 3 7 7 21 , 7 7 4 10 9 , 9 6 8 19 CO E . S w i t c h i n g . D i r e c t A s s i g n m e n t Di r e c t 59 5 , 6 1 4 46 6 , 6 8 2 17 , 6 9 0 69 , 3 4 2 20 CO E . O p e r a t o r ln 2 0 a a 3 21 CO E . O p e r a r . D i r e c t A s s i g n m e n t Di r e c t 22 CO E - T r a n s m l s s i o n Ln 2 2 a . 4 1,0 4 7 , 4 5 9 40 6 , 4 0 6 80 , 1 5 2 13 , 2 4 9 :1 31 , 1 1 7 :1 30 0 , 2 0 7 9, 0 6 7 1 11 , 1 9 1 18 7 , 0 6 9 23 CO E . T r a n s m i s s i o n - D i r e c t A s s i g n m e n t Di r e c t 1,1 3 7 , 9 5 5 43 6 , 8 0 8 10 4 , 3 5 4 14 , 2 3 9 33 , 5 3 4 32 3 . 5 1 4 5,3 8 1 12 . 1 3 0 20 7 . 9 9 24 In f o O r l e r m E q u i p Ln 2 4 a " 5 25 In f o O r i l T e n n E q u i p - D i r e c t A s s i g n m e n t Di r e c t 26 C& W F Ln 2 6 a - 6 2,0 3 6 , 4 7 9 87 0 . 8 7 7 80 , 2 7 1 32 , 4 0 0 :1 61 , 9 2 0 :1 58 6 . 0 2 7 20 , 9 , 6 1 32 , 5 3 5 55 3 , 5 0 3 27 C& W F - D i r e c t A s s i g n m e n t Di r e c t 2,2 5 1 , 1 1 9 59 6 , 9 3 5 70 . 4 6 0 23 , 3 6 3 56 , 7 1 9 54 2 , 5 8 9 14 , 6 2 2 29 , 4 1 9 91 6 , 9 9 3 26 T O T A L A C C U M U L A T E D D E P R E C I A T I O N Ln 1 6 . . 2 7 9,0 7 5 , 9 6 3, 7 1 3 , 6 9 7 39 8 . 7 4 5 14 4 , 4 1 9 21 6 , 6 2 3 2,0 7 0 , 9 9 2 61 , 0 3 0 10 1 , 7 3 0 2, 3 6 6 , 5 2 6 29 3 2 0 0 A c c D e p r P r o p e r l H e l d 30 Fo r F u t u r e T e l e c o m U s e Ln 3 0 a " g 31 3 4 0 0 A c c A m o r t - C a p i t a l le a s e s Ln 3 1 a ' 1 0 32 3 4 0 0 A c c m A m o r t - L e a s e h o l d I m p r o v e m e n t Ln 3 2 a * 1 1 33 3 5 0 0 A c c m A m o r t - I n t n g i b l e Ln 3 3 a ' 1 2 34 3 6 0 0 A c c u m A m o r t - o t h e r Ln 3 4 a . 1 3 35 4 0 4 0 C u s t m e r D e p o s i t s Ln 3 5 a * 7 I 23 ~ I 96 1~ I 4 :\ 6 :1 60 ~ I 3 57 36 Dir e c t A s s i g n m e n t Dir e c t 37 T O T A L C U S T O M E R D E P O S I T S Ln 3 5 . . 3 6 23 9 96 10 4 6 60 3 57 38 4 1 0 0 N e t Cu r Oe f O p In c Ta x e s 39 Su p p o r t A s s e t s Ln 3 9 s . 1 40 CO E - S w i t c h l n g Ln 4 D a ' 2 41 CO E - D p e r a t o r Ln 4 1 a * 3 42 CO E - T r a n s m i s s l o n LM 2 a ' 4 43 In f o O r i r r e r m E q u i p Ln 4 3 a ' 5 44 C& W F Ln 4 4 a * 6 45 No t C l a s s i f i e d b y A c c t Ln 4 5 a ' 8 46 T O T A L N E T C U R D E F O P I N C T A X E S Ln 3 9 . . 4 5 Pr o p r i e t a r y I n r o n n a t i n Mo s s A d a m s , L L P V., l o n 3 . 2 19 0 ' 2 3 Mid v a l e T e l e p h o n e E x c h a n g e . Id a h o St u y A . . a : 4 7 2 2 2 6 Siu d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 47 B i g T h r e e E x p e n s e s D i s t r 48 2 1 1 0 S u p p r t A s s e t s O l s t r 49 2 2 1 0 C O e . S w i t c h i n g O l s 50 2 2 2 0 C O E - o p e r a t o r O l s t r 51 2 2 3 0 C O E - T r a n s m l s s i o n D I s t r 52 2 3 1 0 l O T D i s t 53 2 4 1 0 C & W F D i s " 54 2 0 0 1 T P I S i c a o d 55 2 0 0 1 T P I S D l s t 56 2 0 0 1 T P I S O l s t RE S E R V E S & D E F E R R A L S S E P A R A T i O N 57 4 3 1 0 0 l h e r L o n g . T e n n L l a b i l i t i e s 58 4 3 4 0 N e t N o n c u r r e n t D e f T a x e s 59 S u p p o r t A s s e t 60 C O E - S w R c h l o 9 61 C O E . Q p e r a l o r 62 C O E - T r a n s m i s s i o n 63 I n f o O r i g / e n n E q u i p 64 C & W F 65 N o t C l a s s i f e d b y A c c i 66 T O T A L N E T N O N C U R R E N T D E F T A X E S 67 4 3 6 0 O l h e r D e f e r r d C . . d i l . N e l 68 4 3 7 0 O t h e r J u r L 1 a b l l R l e s 89 & D e f e r r d C i e l t . N e t AC C U M D E P R & A M O R T A L L O W I O I S A L L O W 70 A c c m D e p r & A m o r t A l l o w / D i s a l l o 71 D i r e c t A s s i g n m e n t 72 T O T A L A C C D E P R / A M O R T A L W I O I S A L L O W Pr o p r i t a r y I n f o r m a t i o n ,L n B ,L n g .L n 2 .L n 2 4 ,L o n ,L o 1 2 ,l o 4 3 ,L o 1 8 .L n 1 5 Ln 1 + 8 Ln 5 7 a - 4 7 Lo S 9 a ' 4 8 Ln 6 0 a - 4 9 Lo 8 1 a " 5 0 Ln 6 2 a " 5 1 Ln 6 3 a " 5 2 Lo 6 4 a ' 5 3 Ln 6 5 a . 5 4 Lo 5 9 , . 6 5 Lo 6 7 a ' 5 5 Dl . . c i lo 7 0 a ' 5 4 Dl . . c i Lo 7 0 . . 7 1 71 0 1 0 0 7 RE S E R V E S & D E F E R R A L S ~~ J ~ s : ~ s ; : : ~ : ~ : ~ ~ : ~ ~ i ~ f u ~ ~ T : : ~ ~ ~ = * : : : : ~ : l t ¡ ~ ; ~ ~ n f : ~ f ~ m ~ ~ ~ ~ ~ ~ ~ ~ ¡ ~ ~ ~ ~ ¡ ~ f . ~ ~ l l t ~ : ~ : ~ ~ : : ~ ~ W $ ~ : ~ i ~ i i : $ g ~ s ~ ~ ~ : : : i ¡ i l f t : ~ l ~ * t t : 1_ . . . . A T A 1 _ _ 1 A T A SO U R C E TÖ T A L lo l e r l T A In l r a L A T A .. . . . . . . . " ... . . _ _ . . . . CO ~ : ' A N Y MS G ~~ ~: ~ ~~ ~~ G ::~ ~~ G b 10 0 . ~ ~ % 48 . 3 4 9 9 3.9 8 7 3 % 1.5 8 9 7 % 3.1 9 0 9 % 21 . 7 4 8 7 % 0. 5 9 9 06 4 0 4 % 21 . 7 1 6 2 % 10 0 . 0 0 40 . 3 0 0 % 4. 8 2 9 % 1.7 0 6 1 % 2.6 3 5 8 % 25 . 0 4 7 2 % 0. 8 6 5 7 % 1.2 9 3 4 % 23 . 8 6 8 2 % 10 0 . 0 0 82 . 0 3 0 0 % 2.9 7 0 0 15 . ~ ~ % 10 0 . 0 0 0 0 % 38 . 7 9 9 2 % 8.5 1 1 3 % 1.2 6 4 0 0 1 0 2.9 7 0 8 % 28 . 6 8 0 5 % 0.8 6 8 % 1. 0 6 % 17 . 8 5 9 3 % 10 0 . 0 0 0 0 % 32 . 9 1 0 7 % 3.9 3 7 8 % 1.5 8 9 4 % 3.0 3 7 6 % 28 . 7 4 8 2 % 1. 0 2 7 5 % 1. 5 9 6 1 % 27 . 1 5 2 8 % 10 0 . ~ ~ % 40 . 3 0 0 % 4.2 8 2 9 % 1.7 0 6 1 % 2.6 3 5 8 % 25 . 0 4 7 2 % 0. 8 6 5 7 " k 1. 2 9 3 4 % 23 . 8 6 8 2 % 10 0 . 0 0 40 . 3 0 0 % 4. 2 8 2 9 " k 1.7 0 8 1 % 2.6 3 5 8 % 25 . 0 4 7 2 % 0. 8 6 5 7 % 1. 2 9 3 4 % 23 . 8 6 2 % 10 0 . 0 0 0 0 % 40 . 3 0 0 % 4.2 8 2 9 % 1.7 0 6 1 % 2.8 3 5 8 % 25 . 0 4 7 2 % 0, 8 6 5 7 % 1. 2 9 3 4 % 23 . 8 6 8 2 % 17 2 , 9 5 2 17 2 , 9 5 2 69 , 7 0 1 69 , 7 0 1 7,4 0 7 7,4 0 7 2,9 5 1 2,9 5 1 4,5 5 9 4,5 5 9 43 , 3 2 0 43 , 3 2 0 1,4 9 7 1,4 9 7 2,2 3 7 2,2 3 7 41 , 2 8 0 41 , 2 8 0 Mo s S A d a m s , l l P . V _ l o n 3 2 20 Of 23 Mi d v a l e T e l e p h o n e E x c h a n g e . I d ë l h o St u d y A r e a : 4 7 2 2 2 6 St u d y Y e a r : 2 0 0 6 LI N E D E S C R I P T I O N CA S H W O R K I N G C A P I T A L 1 P l a n t S p e c i f i c E x p e n s e s 2 P l a n t N o n s p e c i f c e x p e x c t d e p r e c i a t i o n & a m o r t z a t n 3 C u s o m e r O p e r a n s E x p e n s e . M a r k e t i n g 4 C u s t o m e r O p e r a i o n s E x p e n s e - S e r v c e s 5 C o r p r a t e O p e r a t i o n s E x p e n s e 6 E q u a l A c c s s E x p e n s 7 O t h e r N o n o p e r a t i n g E x p e n s e - C o n t b u t l o n s 8 I n t r e s t o n C a p i t a l L e a s e s 9 F i x e d C h a r g e s e x e l C a p i t a l L e a s e s 10 I n t e r e s t o n C u s t m e r D e p o s i t 11 O t h e r O p e r a t i n g T a x . P r o p e r t 12 O t h e r O p e r a t i n g T a x - O t h e r 13 O t 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 m e n t 14 F e d e r a l In c o m e T a x f A c t a l ) 15 S l a I n c o m e T a x ( A c t u a l ) 16 T o t a l C a s h W o r k n g C a p l t a l E x p e n s e s 17 C a s h W o r k i n g C a p i t a l F a c t r 18 C a s h W o r k i n g C a p i t a l 19 M i n i m u m B a n k B a l a n c 20 W o r k i n g c a s h A d v a n c e s 21 T o t a l C a s h W o r k i n g C a p i t l 22 D i s t r i b u t i o n o f L i n e 2 0 Pr o p r i r y I n f r m a t i o n SO U R C E ,L n 3 1 5.1 2 , L n 1 6 a ' 2 3 5,1 3 , L n 1 3 5'1 3 , L n 5 6 5.1 4 , L n 1 6 5- 1 4 . L n 3 4 5- 1 0 . L n 1 6 5- 1 0 . L n 2 0 5,1 0 , L n 2 1 5.1 0 , L n 1 7 5.1 0 . L n 2 3 5.1 0 . L n 2 4 5,1 0 . L n 5 5, 1 0 , L o 1 9 $- 1 0 , L n 2 0 Lo l . . 1 5 Re c o r d s Lo 1 5 . 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