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HomeMy WebLinkAbout2008Annual Report.pdf¡~f:(;El 20U9 MA Y , I PM 2= 14 ANNUAL REPORT f1b-TOF MIDVALE TELEPHONE EXCHANGE, INC. P.O. Box 7, Midvale, Idaho 83645 TO THE IDAHO PUBLIC UTiliTIES COMMISSION FOR THE YEAR ENDED DECEMBER 31, 2008 ANNUAL REPORT OF SMAL TELEPHONE COMPANIES TC THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31, 2008 COMPANY INFORMATION Exct nam of utilit MIDVALE TELEHONE EXCHANGE-INC. Addre of principal oll: P.O. BOX 1, MIDVALE. IDAHO 838 Telephone Number (Ara Code 208) 366-2211 E-MII add..: annemldvalell.phone.com Cities or tons ser: MIDVALE. LAKEVEW, WARREN, YELLOW PINE. WARM LAKE AND STANLEY, IDAHO; HARPER AND JUNTURA, OREGON; CASCABEL YOUNG, ELOY, PRESCOn AND EAST OF SCOTTDALE ARIZONA Name and tie of offcer having custody of the general cote books of accunt: LANE R. WILLMS. President Addre of of where coorte bos are kept and phone number: P.O. BOX 7, MIDVALE, IDAHO 838 2082211 Olganl under the law of th State ot IDAHODate of oraniz: 119808 For of olganatln (proprtorship. assciation. corpOfn): CORPORA nON If a Subchapter S Corpration. please spfy NlA Name and address of contrlling company. if any: NlA Names of affiated companies. Giv address and descption 01 busiess: M&L ENTERPRISES, INC, dba SKYLINE TELEPHONE COMPANY, P.O. BOX 7, MIDVALE IDAHO 835. CLEC IN STATE OF WASHINGTON OFFCERS Report belo the lile. name and off adress of each general offcer 01 the uWity at th end of the year. If there were any changes during th year. sho the nall. title. and address of the previs ofcer and the date of change. Title Name Add.. PRESIDENT SECITEAS DIRECTOR VICE PRESIDENT- SECITEAS* LANE R. WILLIMS SHIRL ARCHER JULINNE JOHNSON CONLE WARD EMMA GROSS 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 P. O. BOX 7, MIDVALE IDAHO 83845 * SHIRLEY ARCHER DIED APRIL OF 2008 AND REPCED BY EMMA GROSS MAY 18. 2008 ** CONLEY WARD REPLACED JULIANNE JOHNSON IN JULY AND JULIANNE BECAME A DIRECTOR Re3J2 Pagi DIRECTRS List the name of each persn who wa a member of th Board of Dirers at any given time during the year: (Fee related to meetings only.) Term expire or Currnt TermName Will Expire and Address LANE R. WILLIAMS SHIRLEY ARCHER JULIANNE JOHNSON P.O. BOX 7, MIDVALE, IDAHO 83645 CONLEY WARD P.O. BOX 7 MIDVALE, IDAHO 8364 EMMA GROSS P.O. BOX 7 MIDVALE, IDAHO 8364 Name of Chairman of the Board: Name of Secretary (or Clerk) of Board: Number of Meetings of the Bord during the year: Meetings Attnded This year LANE R. WILLIAMS EMMA GROSS 4 Fees Paid During Year 4 2 3 93,854 11,625 36,771 4 21,693 3 15,271 MANAGERS List the name of each persn who perfrmd management duties for the Company during the year, and the total wages and bonuses paid to those persns: (Do not Include Direr fes In these amounts.) Name STEE CHILD ANN SHARP John A. Stuart Rob Vowell Dennis Farrngton Rev 312 TI CEO CONTROLLER Operaions Manager PLANT ADMINISTRATOR SW Operations Manager Pag 2 Wages and Bonuses Paid 52,334 14,583 80,036 50,518 67,963 NOTES TO THE FINANCIA STATEMENT Please provide importnt Infonnation such as changes in accounting or depreiation practice, extnsions or additins to the system; disposal of any substantial porton of the prpert of the utilty; rerganiztion, mergers, or consolidations with other companie: leases executed; other contracts or agreements entered into; changes made in artcles of incorpration or amendments; the occurrence of contingency losses or gains. Rev 3/02 Page 3 BALANCE SHEET Assets and Oter Debits Balance Balance Increase Beginning at End orTile of Account of Year ofVear (Decrease)Currnt Assets 1120 Cash and Equivalents 18,239 264,725 $246,4861130Cash 1140 Speal Cash Deposits 1150 Workng Cash Advances 1160 Temporary Investments 1180 Telecommunictions Acc. Recivable 68,007 82,955 14,948 1181 Ace. Ree. Allow. -Telecmmunictions 1190 Other Acunts Receivble 759,184 895089 135,905 1191 Accunts Receivable ANow. - Other (2Ie:täi ((Sg:t~l1200Notes Receivable 103,151 1201 Notes Receivable Allownce 1210 Interest & Dividends Receivable 1220 Material and Supplies 80,751 112,050 31,2991280Prepayments35,507 37,999 2.4921290Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Diretory Expnses 1330 Oter Prepaments 1350 Oter Current Asets Noncurrnt Assets 1401 Investment in Affliated Companies 602,405 602,405 0 1402 Investment in Nonaffliated Companies 1,380,119 1,634,150 254,0311406Nonregulate Investmnts 291,410 357,310 65,900 1407 Unamortzed Debt Issuance Expense 1408 Sinking Funds 1410 Oter Noncurrnt Assets 188,043 53,041 (134,996(1438 Deferr Maintenance & Retirements 1439 Deferr Charges 1500 Other Jurisdiction Assets - Net Propert, Plant and Equipment 3,122,7542001Telecmmunictions Plants in Servic 27,730,662 30,853,416 2002 Prop. Held fo Future Telecm. Use 2003 Telecm. Plant under Constr. - Short Term 696,139 826,932 130.793 2004 Telecm. Plant under Constl. -long Term 2005 Telecm. Plant Adjustent 2006 Nonoperating Plant 2007 Goodll 1,017,240 1,017,240 0 Depreciation and Amorttion Accounts (773,417)3100 Acmulated Depreation (14.986,466)(15,759.883) 3200 Acm. Depre. - Held fo Futre Use 3300 Acmulated Deprecation - Nonoperating 3400 Accmulated Amortzation - Tangible 3410 Acm. Amort. - Capitalized leases 3420 Accm. Amort. -leasehold Improvements 3500 Acmulated Amortzation - Intangible 3600 Accmulated Amortzation - Oter TOTAL ASSETS $17,984,391 $20,746,923 $2,762,532 Rev 31 Page 4 BALANCE SHEET Liabilities & stckholders. Equity Balanc Balance Increase Beginning at End orTitle of Account of Year of Year (Decrease) Currnt Liabilities 4010 Accunts Payable $441,289 $1.178.525 $737,2364020 Notes Payable 113,485 238.136 124.6514030 Advace Billings and Payments 4040 Customer Deposits 760 1.000 2404050 Currnt Maturities - Long -Term Debt 965,295 1,169.611 204.316 4060 Currnt Maturities - Capitl leases 4070 Incoe Taxes - Acrued 4080 Other Taxes - Aced 121,111 38,793 (82,318)4100 Net Current Defer. Oper. Income Taxes 55,000 35,733 (19,267)4110 Net Current Defer. Nonoper. Incoe Taxes 4120 Other Acrued Liabiltis 4130 Other Current Liabilities 16,499 8,795 (7,704)Long-Tenn Debt 4210 Funded Debt 4220 Preium on Long-Term Debt 4230 Disunt on long- Term Debt 4240 Reacuire Debt 4250 Obligtions Under Capita Leases 4260 Advance from Affliated Companies 4270 Other Long-Term Debt 9,n1.902 11,260,969 1,489,067Other Liabilites & Deferr Creits 4310 Other Long-Term Liabilities 4320 Unamor. Oper. Invet. Tax Credits - Net 4330 Unamort. Nonopr. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 1.697,205 1,932,985 235,780 4350 Net Noncur. Defer. Nonoper. Incoe Taxes 4360 Oter Deferr Creits 4370 Other Juris. Lieb. & Def. Creits - Net Stockholders. Equit 4510 Capital Stock 25.000 25,00 4520 Additional Paid-In capital 7.910 7.910 4530 Treasury Stock (64.000)(64.00) 4540 Oter capitl 4550 Retained Earnings 4,832,935 4,913.466 80,531 TOTAL L1AB. & OTHER CREDITS 17.984,391 20,746.923 $2,762,532 Rev 3102 PageS AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A 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 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 an d En d of Ye a r Du r i n g ye a r or So l d Ad J u s b n e n t s ot Y e a r An a l y s i s o f T e l e c 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 14 8 , 6 9 14 8 , 6 9 21 1 2 Mo t r V e h i d e s 32 1 , 8 2 4 (3 6 . 5 0 ) 28 5 , 3 2 4 21 1 3 Ai r c f t 21 1 4 Sp e a l P u r p V e h c l 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 W o r k E q u i p m e n t 66 , 7 8 2 16 , 8 9 8 68 1 , 6 8 0 21 2 1 Bu i l d i n g s 95 2 , 4 5 1 2, 4 5 7 95 4 , 9 0 8 21 2 2 Fu r n u r e 21 2 3 Of f c e E q u i p m e n t 72 , 3 3 72 , 3 3 21 2 4 Ge n e r a l P u r p e C o m p u t r s 15 6 , 4 6 7 67 , 2 0 5 22 3 , 6 7 22 1 1 An l o g E 1 e c n i c S w i n g 22 1 2 Di g i t l E l r o i c S w i n g 3, 9 9 , 2 2 9 89 4 , 1 2 4 (7 3 5 , 6 2 9 ) 4, 1 5 6 . 7 2 4 22 1 5 El c l e c i c a S w t c i n g 22 Op e S y s t m s 22 3 1 Ra d i o S y s t e m s 22 3 Ci r c E q u p m e n t 5, 5 0 , 5 5 3 1, 0 1 0 . 2 2 6, 5 1 9 , 7 8 23 1 1 St n A p p a r a s 27 , 2 3 2 27 , 2 23 1 Cu s t o m e P r e i s e W r i n g 23 1 La r g P r i a t B r a n c h E x c h n g e s 23 5 1 Pu b l i c T e l e p h o n e T e n n i n a l E q u I p m e 92 8 92 8 23 Ot r T e r i n a l E q u i p m e n 24 1 1 Po l e 24 2 1 Ae l C a b l e 24 2 2 Un d e r g n d C a b 24 2 3 Bu r i C a b l e 15 , 8 7 8 , 1 6 6 1, 9 0 , 9 7 1 17 , 7 8 1 3 7 24 2 4 Su b m a r n e C a b l e 24 2 6 In t b u i l i n g N e t w C a b l e 24 3 1 Ae l Wir e 24 4 1 Co d u i S y e m s 26 1 Ca i t le a s 26 Le e h l d I m p r e n t s 26 9 In t a n g i b l e s TO T A L P L A T A C C O U N T S 27 , 7 3 0 , 6 6 2 3, 8 9 4 , 8 8 4 (7 7 2 , 1 2 9 ) 0 30 , 8 5 3 , 4 1 7 Re v 31 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 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 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 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 i c e 21 1 1 La n d 17 , 3 6 1 77 , 3 6 1 21 1 2 Mo t r V e h i c l s 28 1 , 8 9 8 (3 , 5 0 0 ) 24 5 , 3 9 8 21 1 3 Ai r a 21 1 4 Sp e a l P u r p o s V e h i c l s 21 1 5 Ga r e W o r k E q u i p m e n t 21 1 6 Ot e r W o r k E q u I p m e n 50 , 3 4 9. 7 9 2 (5 , 0 5 8 ) 50 , 0 7 8 21 2 1 Bu i l d i n g s 84 3 , 4 9 8 84 , 4 9 8 21 2 2 Fu m l t r e 58 , 1 2 7 58 , 1 2 7 21 2 3 Of f E q u i p m e n t 21 2 4 Ge n l P u r p e C o m p u t 13 6 , 3 4 8 65 , 5 0 20 1 . 8 4 22 1 1 An l o g E l n i c S w c h i n g 0 0 22 1 2 Di i t E l e i c S w i n g 1. 5 1 7 , 2 9 35 5 . 6 7 2 (3 6 8 . 0 6 ) 1, 5 0 , 9 0 22 1 5 El e d e c i c a l S w t c h i n g 0 0 22 0 Op e S y e m 0 0 22 3 1 Ra d i o S y s 0 0 22 3 2 Ci i t E q u i p m e n 2, 5 4 2 , 0 8 29 7 , 8 2 1 2, 8 3 , 9 0 3 23 1 1 St a o n A p p a r a 27 , 2 3 2 27 , 2 3 23 2 1 Cu s o m r P r e m i s W i r i 0 0 23 4 1 La r g P r i t e B r n c h E x c h g e s 0 0 23 1 Pu b l i c T e l e p h o T e n n i n a l E q u i p m e n t 92 92 23 Ot r T e r m i n a E q u i p m e n t 12 , 7 5 4 12 , 7 5 4 24 1 1 Po l e s 0 0 24 2 1 Ae c a b l 0 0 24 2 2 Un d r o c a 0 0 24 2 3 Bu r e d C a b l e 6, 9 0 , 1 3 7 20 , 8 8 7, 1 1 6 , 0 2 24 2 4 Su b m a r i n e C a b l e 0 0 24 2 6 In t r b u i l d i n g N e t w c a b l 0 0 24 3 1 Ae a l W i 0 0 24 1 Co n d u i t S y s m s 0 0 26 1 ca p i l L e s e 0 0 26 2 Le a h o l d I m p r e m e n t s 0 0 26 In t a n g i b l 0 0 TO T A L P L A N T A C C O U N T S 12 , 9 0 8 , 0 0 5 93 8 , 6 7 0 (4 0 , 5 6 2 ) (5 , 0 5 8 ) 13 , 4 3 7 , 0 5 5 12 , 9 0 8 , 0 0 5 Re 3 / 2 Pa g e 7 AN A L Y S I S O F E N T R E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 31 0 0 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Ye a r Ra t e * Ye a r Ad j u s t m e n t s of Ye a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n VA R 21 1 2 M o t o r V e h i c l e s 32 1 , 8 2 4 7, 5 0 0 36 , 5 0 0 29 2 , 8 2 4 21 1 3 A i r c f t 21 1 4 S p e a l P u r p V e h i c l e s 21 1 5 G a r e W o r k E q u i p m e n t 21 1 6 O t h e r W o r k E q u i p m e n t 60 4 . 6 8 0 28 , 8 4 7 63 3 , 5 2 7 21 2 1 B u i l d i n g s 38 7 , 2 0 0 30 , 4 0 7 41 7 , 6 0 7 21 2 2 F u r n i t r e 21 2 3 O f E q u i p m n t 39 , 9 1 4 9, 1 6 8 49 , 0 8 2 21 2 4 G e n e r a l P u r p o s C o m p u t e r s 14 6 , 9 1 5 7, 8 2 7 15 4 , 7 4 2 22 1 1 A n a l o g E l e c n i c S w h i n g 22 1 2 D i g i t a l E l e c n i c S w t c h i n g 2, 5 2 5 , 5 7 8 28 9 , 0 5 7 73 4 , 1 0 0 2, 0 8 0 , 5 3 5 22 1 5 E l e c - M e c a n i c l S w i t c h i n g 22 2 0 O p e r a t o r S y s t e m s 22 3 1 R a d i o S y s t e m s 22 3 2 C i r c i t E q u i p m n t 3, 6 8 1 , 6 9 1 39 6 , 3 7 2 4, 0 7 8 , 0 6 3 23 1 1 S t a t i n A p p a r a t u s 16 , 7 9 7 16 , 7 9 7 23 2 1 C u s r P r e m i s e W i r i n g 23 4 1 L a r g e P r i B r a c h E x h a n g e s 23 5 1 P u b l i c T e l e p h o n e T e n n i n a l E q u i p m n t 97 46 4 56 1 23 6 2 O t e r T e n n i n a l E q u i p m e n t 24 1 1 P o l e 24 2 1 A e r i l C a b l e 24 2 2 U n d e r g r o n d C a b l e 24 2 3 B u r i e d C a b l e 7, 2 6 1 , n 2 n4 , 3 7 3 8, 0 3 6 , 1 4 5 24 2 4 S u b m a r i n e C a b l e 24 2 6 I n t r b u i l d i n g N e t w r k C a b l e 24 3 1 A e r i a l W i r e 24 4 1 C o d u i t S y s t e m s TO T A L 14 , 9 8 6 , 4 6 8 1, 5 4 , 0 1 5 77 0 , 6 0 0 15 , 7 5 9 , 8 8 3 *P l e a s e l i s t i n d i v i d u a l d e p r e i a t o n r a f o r e a h a c c u n t Re 31 Pa g e 8 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T l O ~ Ac c o u n t 3 1 0 0 ID A H O O p e r a t i o n s O n l y Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d 01 Ye a r Ra t e * Ye a r Ad j u s t m e n t s of Ye a r An a l y s i s 0 1 E n t r e s i n A c c u m u l a t e D e p r e c i a t i o n 21 1 2 M o t o r V e h l c l e s 28 1 , 8 9 7 25 % 6, 9 6 9 35 , 9 6 9 25 2 , 8 9 7 21 1 3 A i r c r a f t 21 1 4 S p e c a l P u r p V e h i c l e s 21 1 5 G a r a g e W o r k E q u i p m e n t 21 1 6 O t h r W o r k E q u i p m e n t 48 5 . 3 0 6 20 % 19 , 4 5 2 50 4 . 7 5 8 21 2 1 B u i l d i n g s _ ~ E i 1 , 7 1 4 3% 27 , 6 6 7 38 9 . 3 8 1 21 2 2 F u m i t r e 21 2 3 O f c e E q u i p m e n t 34 . 2 3 0 14 % 8, 5 5 5 42 , 7 8 5 21 2 4 G e n e r a l P u r p s e C o p u t e 13 5 , 2 2 3 20 % _. 2 M 8 . - - - - - - - 1~ 7 , 7 7 1 22 1 1 A n a l o E l e c n i c S w t c i n g 22 1 2 D i g i t l E l e c n i c S w t c i n g 1, 2 9 2 , 8 9 1 13 % 53 , 5 e ~ _ 36 8 , 0 6 2 97 8 . 4 2 1 22 1 5 E I M e c a n i c a l S w i t i n g 22 0 O p r a t o r S y s t 22 3 1 R a d i o S y s t e m s 22 3 2 C i r c i t E q u i p m e n t 2, 3 2 6 , 5 7 5 10 % 28 , 2 7 8 2, 3 5 , 8 5 3 23 1 1 S t t i o n A p p a r a t u s 16 . 7 9 7 16 . 7 9 7 23 2 1 C u s t o e r P r e m i s e s W i r i n g 23 4 1 L a e P n v t e B r a n c h E x c h a n g e s 23 5 1 P u b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 97 10 % 46 4 56 1 23 6 2 O t h e r T e r m i n a l E q u i p m e n t 31 9 1, 6 7 4 1, 9 9 3 24 1 1 P o l e s 24 2 1 A e r i a l C a b l e 24 2 2 U n d e r g r o u n d C a b l e 24 2 3 B u r i e d C a b l e 4, 7 5 9 , 3 5 1 7% 18 9 , 3 6 5 4, 9 4 8 , 7 1 6 24 2 4 S u b m a r i n e C a b l e 24 2 6 I n t r b u i l d i n g N e t w r k C a b l e 24 3 1 A e r i a l W r e 24 4 1 C o n d u i t S y s t e m s TO T A L 9, 6 9 4 , 4 0 0 33 8 , 5 6 40 4 , 0 3 1 9. 6 2 8 , 9 3 3 .P l e a s e l i s t i n d i v i d u a l d e p r e i a t i o n r a t e f o e a c h a c o u n t Re v 31 Pa g e 9 INVESTMENTS Report below the investments in Accounts 1401,1402 and 1406. Identify each investent as to the accunt in which included. Minor amounts in Acunt 1406 may be groped by classes. Description Date Acquired RTFC NECA Servces, Inc. Syringa Network, LLC Note Receble Rural Netwrk Servics Investmnt in M & L Enteærises, Inc. Net Non-reulated Cable TV and Internet plant Totals Book Cost of Investments Disposed of This year RECEIVABLES Book Cost of Investments Held at End of year 125,571 o 3.000 1,123,769 381,810 602,405 357,310 2,593,865 Itemize amounts show in Acunts 1180, 1190 and 1200. For notes recivable list each note separatel and include the matuñt date and interest rate. Minor amounts In Acunt 1210 may be combine. Name of Company NECA Idaho Universl Fund Rural Network Services, Inc. Various carrirs for access charges Other Miscellanous Totals Re3J2 Amount at End of YearNotes Accounts Receivable 381.810 Page 10 419,732 31,638 75,007 91,294 617,671 NOTES PAYABLE For Notes Payable, list each note separately and include the matur date and interet rate. Name of Creditor Bank of the Cascades-line of Credit Totals InteretDate of Note Rate Due Date var-bank index 6/161008 rate + .25%6/161009 ACCOUNTS PAYABLE Name of Creitor Report belo all Accunts Payable amounting to more than $100.00 SEE SUPPLEMENTAL SHEET Mise less than $100 OTHER MiSe AeeURALS TOTALS Rev 3/02 Page 11 Face Amount 238,136 238,136 Amount 1,138,286 1,573 38,666 1.178,525 Midvale Telephone Inc. IPUC REPORT. ACCOUNTS PAYABLE DECEMBER 31, 2008 VENDOR SRP VETERAS MEMORIAL HALL ASAP ESPN ESOP AGM SALES & SERVICE APEX COMMUNICATIONS ARAMARK AVISTA UTILITIES ARIZONA PUBLIC SERVICE BANKCARD CENTER - ZIONS MARSHA BONHAM CALIX NETWRKS CASCABEL COMMUNITY CENTER FOR EDUCATION CHEVON & TECO CINTAS CLEAR CREEK DISPOSAL CODALE ELECTRIC COMSEARCH COMPUTR TECH COUNCIL MOUNTAIN MACHINES COYOTE LEASING BRAD & KRISTIN CROAK CULTURAL & ENVIRONMENTAL DEli BUSINESS CREDIT DELL FINANCING DIG LINE EAGLE TELEPHONE SYSTEM EMBAQ LOGISnCS EMPLOYEE SAVINGS WIH DENNIS FARRINGTON FARMER'S SUPPLY COOP FIBER INSTRUMENT SALES BETH FORD-PIMA CO FOX SPORTS NET ARIZONA FRANKliN ELECTRIC ANNFREI FUJITSU NETWRK GILA COUNTY TREASURER STEV GILBERT GIVENS PURSLEY GLENN DICK EQUIPMENT BRUCE GOSLOVICH GRAYBAR ELECTRIC STEV'S HOMETOWN TOYOTA GAY HORTON Total 86.62 225.00 115.30 473.61 400,000.00 1,245.57 477.00 36.89 261.37 2,169.26 22,073.64 15.453.56 8,070.75 300.00 274.95 309.54 311.35 127.88 4,802.01 834.00 5,580.88 497.55 20,988.11 2,019.66 7,205.00 2,393.53 50,296.00 112.00 7,858.53 587.79 5,463.00 120.00 1,471.50 132.01 2,083.40 175.42 145.20 10,395.92 3,157.00 9,365.57 708.00 5,145.75 19,06.54 1,891.25 4,821.67 760.69 3,000.00 Page 11 A Midvale Telephone Inc. IPUC REPORT. ACCOUNTS PAYABLE DECEMBER 31, 2008 IDAHO OPTIC TRANSPORT IDAHO POWER IDAHO POWER ROSS D JACOBS VAUGHN T JAES JERRYS AUTO PARTS JERRYS COUNTRY STORE JUPITER COMMUNICATIONS K&LGATES LES SCHWAB TIRE CENTER LUBE EXPRESS MALHEUR BELL MALHEUR COUNTY TAX COLLECT MARICOPA COUNTY TREASURER MID-8TATE CONSULTANTS MOBILE MINI MONTE R LEE & COMPANY MOSS ADAMS MOUNTAINLAND BUSINESS MOUNTAIN VILLAGE RESORT MTV NETRKS NATIONAL CABLE TV COOP NEUSTAR NORMS AUTO ELECTRIC ONTARIO TOOL & RENTAL OREGON TELECOMMUNICATIONS OUSFUND PAYETE PRINTING PINAL COUNTY TREASURER PLATINUM CARD PLUS PLEASANT VALLEY AUTO PARTS PLEASANT VALLEY PROPANE POWER PRODUCT SER~CES PRINCIPAL FINANCIAL GROUP PV MECHANICAL QWEST QUAliTY AUTO REPAIR QUILL CORP ROO EQUIPMENT RURAL NE~RK SER~CES SALMON RIVER PROPANE SALMON RIVER ELECTRIC SIGNART SULPHUR SPRINGS DIXIE SUTON SYME ELECTRIC SYRINGA NE~RKS TAQUAINC 33,04.00 1,54.19 309.84 17,191.12 900.00 94.17 153.76 309.71 3,682.25 1,582.38 151.80 122.83 1,432.69 4,429.79 155.32 190.33 23,188.80 16,761.00 159.00 331.60 178.83 594.11 212.09 209.95 183.00 3,675.00 1,241.27 580.42 11,004.36 3,692.49 588.40 715.13 4,695.00 955.72 250.00 12,779.76 113.22 395.77 2,913.00 49,437.70 305.83 1,291.89 286.20 849.49 420.90 1,211.00 25,232.54 237,778.78 Page 11 A Midvale Telephone Inc. IPUC REPORT. ACCOUNTS PAYABLE DECEMBER 31, 2008 TELLABS NORTH AMERICA TEREX UTILITIES TRVIS JEFFRIES TURNER NETRK SALES UNITED FUEL & ENERGY UNIVERSA SERVICE ADMIN USA NETRK VERIZON WIRELESS WASTE MAAGEMENT OF AZ WEISER SIGNA AMERICAN WESTERN TELECOMMUNICATIONS KENVVERS LANE R WIlliAMS ZIONS BANK Total Accounts Payable over $100 Acunts payable under $100 7,867.51 927.50 11,658.00 104.10 1,323.60 4,203.59 269.10 2,534.42 101.83 365.70 3,137.00 9,809.92 2,412.81 998.83 1,138,28.61 Page 11 A 1,573.04 1,139,858.65 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 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 u n t s , g r o u p i n g t h e m b y a c c u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c u n t If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t 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 l 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 t f o r y e a r of O b l i a a t l o n Is s u e Ma t u r i Au t o r i z e Ve a r - E n d I2 Am o r t e d B! Am o u n t RT F C va r 20 0 6 - 2 0 1 3 68 8 , 9 0 3 va r 58 , 5 3 4 RU S va r 20 1 4 - 2 0 2 0 11 , 5 5 6 , 9 3 7 2% - 5 % 45 9 , 7 5 1 L. W i l l a m s 7/ 1 1 2 0 0 2 7/ 1 1 2 0 1 2 14 8 , 6 6 9 8% 13 . 3 4 5 Co y o t e L e a s i n g 61 1 3 1 0 0 3 61 1 3 1 0 0 8 49 9 6% 55 Zi o n s B a n k 3f 1 2 0 0 7 3f 1 2 0 1 2 35 , 5 n va r 2, 5 1 4 TO T A L S 12 , 4 3 0 , 5 8 0 53 4 . 1 9 9 Re v 31 0 2 Pa g e 1 2 CAPITAL STOCK Report below the partculars called for concerning common and preferred stock at end of year, designating separate series of any general class. Show totals separately for common and preferrd. For each class of preferred stock, show the dividend rate and whether dividends are cumulatie or noncumulative. Show details In a footnote of capital stock sod during the year. Include number of shares, consideration received, premium or discount, and expense incurre. Class & Series of Stok COMMON Re 312 Number of Share Autoried 250 Par Value per Share 100 Page 13 Outstanding per Balance Sheet Share Amount 250 25,000 Item INCOME & RETAINED EARNINGS STATEMENT Total Company Idaho Only Total Operating Income (from page 15) Total Operating Expense (frm pae 17) 7100 Other Operating Income and Expense 7210 Operaing Investmnt Tax Creits-Net 7220 Operating Federal Income Taxes 7230 Operang State and Loca Income Tax 7240 Operating Other Taxes 7250 Provision for DefelT Operating Income Taxes-Net 7200 Operating Taxes (Total) 7310 Dividend Incme 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Use During Constructn 7350 GainsIosss frm the Disposition of Certin Propert 7360 Other Nonoperating Income 7370 Special Charges 7300 Nonoperating Income and Expse 7410 Nonoperating Investment Tax Credit-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-Capitl lease 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions 7500 Interest and Related Items 7610 Extaordinary Income Credits 7620 Extordinary Income Charges 7630 Currnt Income Tax Efft of Extorlnaiy Items-Net 7640 Provision for Deferr Income Tax Effct of Extordinaiy Items-Net 7600 Extraordlnaiy Items 7910 Income Eff of Jurisdictonal Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 31 7,287,288 6,524,202 763,086 161,424 72,494 233,918 2,869.222 2,784,998 84.224 29,806 29.806 383,227 (65,410) 80.531 Page 14 245,382 299.317 108,353 OPERAnNG REVENUES Item Totl Company Idaho Only Local Network Services Revenue 5001 Basi Area Revenue 775,703 324,028 5002 Optional Exended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile SeNices Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 17,291 14,901 5050 Customer Premises Revenue 5060 Other Locl Exchange Revenue 80,431 28,071 5069 Other Locl Exchange Seldements Netwrk Access Services Revenues 5081 End User Revenue (SLC)222,284 89,209 5082 Switched Access Revenue (Interstate)5,496,242 2,138,099 5083 Special Accss Revenue 5084 State Accss Revenue (Intrastate)860,647 486,338 Long Distance Netwrk SeNic Revenues 5100 Long Distance Message Revenue. All Miscellaneous Revenues 5230 Direory Revenue 9,177 2,591 5240 Rent Revenue 5250 Corprate Opertions Revenue 5261 Speal Billing Arngements Revenue 5262 Customer Operatins Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 78,618 41,553 5269 Other Revenue Settlements 6,567 409 5270 Carrer Biling & Collecion Revenue Uncollectible Revenues 5301 Uncollectble Revenue. Telecommunications 1,630 (2,065) 5302 Uncollectible Revenue. Other 258,042 258,042 TOTAL OPERATING REVENUES 7,287,288 2,869,222 Please Identif the following revenues: NECA USF $5,021,913. To what accunt were they booked? '# 5082 State USF $379,660. To what accunt were they booked? '# 5084 Rev 312 Page 15 OPERAnNG REVENUES Item Totl Company Idaho Only Plant Specifc Operations Expense 6110 Network Support Expnse 6112 Motor Vehicl Exense 6113 Aircft Expense 6114 Special Purpse Vehicles Expense 6115 Garage Work Equipment Exnse 6116 OUler Work Equipment Expense 6120 General Support Expenses 133,572 6121 Land and Building Expenses 6122 Furniture and Arork Expense 6123 Off Equipment Expense 6124 General Purpos Computers Exense 6210 Centrl Offce Switching Expenses 886,998 6211 Analog Electrnic Expense 6212 Digital Elecnic Exnse 6215 ElecroMecanical Exense 6220 Operators System Expense 6230 Centrl Offce Transmission Expenses 637,140 6231 Radio Systems Exense 6232 Circuit Equipment Expense 6310 Information Origination/Termlnatton Exnse 6311 Station Apparatus Expense 6341 Large Private Brach Exchange Expense 6351 Public Telephone Terminal Equipment Expense 636 OUler Terminal Equipment Exens 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Exense6423 Buried Cable Expense 1,467,898 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrbuilding Netwrk Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERAnONS EXPENSE 3,125,608 Rev 312 Page 16 62,549 485,132 399.733 818,984 1,766,398 Item OPERATING REVENUES Totl Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Propert/Plant/Equipment Expenses 6511 Propert Held for Future Telecmm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Exnse 6532 Network Administrtion Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Accss Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecm. Plant in service 652 Depreciation Expense-ropert Held for Future Use 6563 Amortization Expense - Tangible 656 Amortization Expense. Intangible 6565 Amortization Expense - Other Total Plant Nonspeifi Operatins Expense Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertsing 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Totl Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administtive 6721 Accounting and Finance 6722 External Relations 6723 Human Resourcs 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollecble Notes Recivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Rev 31 650 550 3,995 2.302 310,734 138.205 315,379 141,057 458,127 183,978 97.799 19,567 65,394 1,544,015 1,726,775 535,641 362,672 1,356,440 6,524,202 Page 17 40,678 8,622 17,864 338,56 405,728 175.491 112,34 471,815 2.784,998 CE N T R L O F F I C E D A T A As o f D e c e m b e r 3 1 , 2 0 0 8 Na m e o f C e n t r l O f f c e : M I D V A L E Pr e f i x ( a s ) : 2 2 2 - 3 5 5 - 6 3 2 - 6 3 3 - 6 3 6 - 7 7 4 Ce n t r l O f f 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 L 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 l X An a k Ac c e s s L i n e C a p a c i t NX X : 2 2 2 - 3 5 5 - 6 3 2 - 6 3 3 - 6 3 6 - 7 7 4 De 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 s s Mu l l Un e 1- P a r t Be g i n n i n g o f Y e a r Ne w C o n n e c Di s c n n e c 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 m t h i s C . C Di a l T o n e f r m a n o t h e Re s i d e n c e Si n g l e U n e Mu l t - 1- P a r t P a r t 77 6 24 8 28 1 74 3 o o Cu s t o m C a l l i n g : Nu m b e r o f c u s t m e r s w i t h a t l e a s t o n e f e a t u r e : N / A To t a l n u m b e r o f f e t u r e s s u b s c r b e d t o : N l A Re v 31 2 Ch e c k on e : El e e o n l c X El e c M e c 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 0 3 (I n c l u d e C e n t r x , P A L , S e m i - P u b . ) Pu b l i c Te l e p h o n e l i n e s _ 1 7 . Co m p a n y O f a l l i n e s _ 5 3 Co m p a n y T e s t L i n e s _ 6 4 Su b t o t a l Re s i d e n c e 77 6~28 1 74 3 ce n t r x N. A R . Mu l t i - li n e 1- P a r t Bu s i n e s s Sl n g ! u n e Mu l t i - 1- P a r t P a r t 22 7-41-58 21 0 Di r e c t o r y l i s t 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 : 8 5 Pa g e 1 8 Su b t t a Bu s i n e s 22 7-~58 21 0 To t l Re s i d e n c e & B u s i n e s s !Q 28 9 m 95 3 Lo c a l E x c h a n g e 1 22 2 2 3 5 5 3 6 3 2 4 6 3 3 5 6 3 6 6 7 7 4 7,8,9 TO T A L S 11 13 , 14 , 15 , 1~17 ,18 _ Re v 31 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 8 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 I 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 . / Li n e s i n U s e (1 0 0 0 s ) Li n e In t r s t a t e In t e r s t a t e To t a l Li n e 48 N/ A 77 8 8 14 8 6 1 22 6 4 9 47 1 . 8 5 35 7 N/ A 49 , 4 9 7 46 , 9 7 9 96 , 4 7 6 27 0 . 2 4 49 Nl A 8. 8 8 4 16 , 7 2 7 25 , 6 1 1 52 2 . 6 7 85 N/ A 15 , 9 5 6 26 , 2 9 3 42 , 2 4 9 49 7 . 0 5 87 N/ A 15 , 9 7 8 15 , 3 0 5 31 , 2 8 3 35 9 . 5 7 56 2 N/ A 13 1 , 5 9 3 26 2 , 7 9 6 39 4 , 3 8 9 70 1 . 7 6 11 8 8 22 9 , 6 9 6 38 2 , 9 6 1 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 19 61 2 , 6 5 7 51 5 . 7 0 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2008 CUSTOMER RELAnONS 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 Corpratins Idaho Telephone Soliciti Ac Notfion Method of Notification: Mailed separately to customers Yes_X_No_ Included in direcory Yes_X_No_ Date of notification A1temate 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 NONE Category of complaints (if know): Deposit Disputes Charges on Bill DeniallTermination Quality or Availabilty ofSerylc Carrier Selection/Asignment Miscellaneous Rev 3/02 Page 20 CERTIFICATE State of Idaho ) ) ss )County of Washington WE, the undersigned Steve Child of the MIDVALE TELEPHONE EXCHANGE, INC. utility, on our oath do severally say that the foregoing return has been prepared under our direction, from the original books, papers, and records of said utility; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utility for the period covered by the return in respect to each and every matter and thing therein set forth, to the best of our knowledge, information and belief.~ ~ci/M:îS) Subscribed and Sworn to Before Me this 5th day of May, (Year) 2009~~%tte of Idaho I ~ ~ .rø~ April My Commission expires ~6, (Year) 2012. ~~ ,-~::~~" I GLENNIS K. BONNER Notary Puhlic State of Idaho '...,;"...';t:~""~;"I~ftl Rev 3/02 Page 21 r..£.. .. I,'t !~ 21 1 5 1 0 0 8 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t St u d y A r e a : 4 7 2 2 2 6 RE V E N U E R E Q U I R E M E N T S U M M A R Y $0 1 St u d y Y e a r : 2 0 0 8 TO T A L CO M P A N Y MS G PL PL LI N E DE S C R I P T I O N SO U R C E . 1 N e t T e l e c o m P l a n t ,L n 4 6 5,0 3 6 , 0 9 4 1,9 3 0 , 2 7 9 19 7 , 2 8 2 82 , 7 2 4 13 0 , 2 1 4 1, 2 2 7 , 8 6 9 22 , 8 4 1 73 , 6 6 1,3 7 1 , 2 2 1 2 R a t e B a s e A d j u s t m e n t # 1 Re c o r d s 3 R A T E BA S E Ln 1 - 2 5,0 3 6 , 0 9 4 1,9 3 0 , 2 7 9 19 7 , 2 8 2 82 , 7 2 4 13 0 , 2 1 4 1, 2 2 7 , 8 6 9 22 , 8 4 1 73 , 6 6 4 1,3 7 1 , 2 2 1 4 R a t e o f R e t u r n Re c r d s 8,2 4 8 1 % 11 , 2 5 0 0 % 11 , 2 5 0 0 % 11 , 2 5 0 0 % 11 , 2 5 0 0 % 5,9 0 0 0 % 5.9 0 0 0 % 5, 9 0 0 0 % 5, 9 0 0 0 % 5.9 0 0 0 % 5.9 0 0 0 % 5.9 0 0 0 % 5 R E T U R N O N R A T E B A S E Ln 3 * 4 41 5 , 3 8 0 21 7 , 1 5 6 22 , 1 9 4 9, 3 0 6 7,6 8 3 72 , 4 4 4 1,3 4 8 4, 3 4 80 , 9 0 2 6 R e t u r n A d j u s t m e n t ' 1 Re c o r d s 7 N E T RE T U R N lo 5 ' " 41 5 , 3 8 0 21 7 , 1 5 6 22 , 1 9 4 9, 3 0 6 7,6 8 3 :1 72 , 4 4 4 ',3 4 8 / 4'3 4 6 1 :1 80 , 9 0 2 8 F i x e d C h a r g e s ,L n 2 4 21 7 , 9 4 9 83 , 0 5 5 8,3 6 3 3, 5 9 1 5,6 2 8 53 , 4 2 1 99 3 3, 2 2 8 59 , 6 7 0 9 A m o r t i z a t i o n o f E x c e s s D e f T a x e s ,L n 4 7 10 C a p i t a l i z e d P a y r o l l T a x e s ,L n 5 D 11 D e p r e c i a t i o n A d j u s t m e n t ,L n S 3 12 F I T A H o w a n c e s J i s a l l o w a n c e s ,L n 2 2 13 In c A d j A l i c e o n 2 0 0 1 ,L n 5 9 + 6 0 14 In c A d j A l l o c o n B i g 3 E x p ,L n 6 1 + 6 2 15 T o t a l M i s e I n c A d j u s t m e n t ,L n 6 3 16 A F T E R T A X I N C O M E No t 1 19 7 , 4 3 1 13 4 , 1 0 2 13 , 8 3 2 5,7 1 6 2, 0 5 5 19 , 0 2 3 35 5 1, 1 1 8 21 , 2 3 2 17 S t a t I n c o m e T a x Ln 5 2 26 , 8 0 9 18 , 2 1 0 1,8 7 8 77 6 27 9 2,5 8 3 48 15 2 2,8 8 3 18 S t I T C A m o r t i o n ,L n 4 5 19 N e t F e d e r a I n c o m e T a x lo 4 3 10 1 , 7 0 7 69 , 0 8 3 7,1 2 5 2,9 4 1,0 5 8 9,8 0 0 18 3 57 6 10 , 9 3 7 20 F e d e r a i i T C A m o r t a t i o n ,l o 4 4 21 O p e r n g E x p e n s e s & T a x e s ,L n 1 7 2,3 6 8 , 6 8 7 1,0 4 7 , 8 6 9 15 2 , 4 1 3 36 , 2 3 1 63 , 0 0 4 50 3 , 6 4 7 9, 8 3 23 , 4 5 9 55 2 , 2 2 8 22 N o n o p e r a t i n g E x p e n s e s 8- 1 0 , L n 1 7 + 1 8 23 U n c o l l e c t b l e s ,l o 5 7 24 O t e r A d j u s t m e n t s ( N e t R R ) Re c r d s 25 N E T R E V E N U E R E Q U I R E M E N T Ln 7 + 1 7 . . 2 3 - 2 4 1 2,9 3 2 , 5 8 3 1 1,3 5 2 , 3 1 8 18 3 , 6 1 1 I 49 , 2 5 8 .1 72 , 0 2 4 -I 58 8 , 4 7 4 11 . 4 1 4 1 28 , 5 3 3 1 -I 64 , 9 5 1 26 G r o s s R e c e i p t s T a x No t e 2 27 7 3 4 0 A J F d s U s e d O u r C o n s t r ,L n 1 5 28 R E V E N U E R E Q U I R E M E N T Ln 2 5 + 2 6 2 7 2,9 3 2 , 5 8 3 1,3 5 2 , 3 1 8 18 3 , 6 1 1 49 , 2 5 8 72 , 0 2 4 :1 58 8 , 4 7 4 11 , 4 1 4 1 28 , 5 3 3 1 :1 64 , 9 5 1 29 D i s t i b u t i o n o f L i n e 3 C Ln 2 8 J 8 a 10 0 . 0 0 0 0 % 46 , 1 1 3 5 % 6,2 8 1 1 % 1, 6 7 9 7 % 2.4 5 6 0 % 20 , 0 8 8 % 0.3 8 9 2 % 0.9 7 3 0 % 22 , 0 6 8 % 1 IN C O M E T A X E S I 30 N e t Re t u m Ln 7 41 5 , 3 8 0 21 7 , 1 5 6 22 , 1 9 4 9, 3 0 7,6 8 3 :1 72 , 4 4 4 "3 4 8 1 4'3 4 6 1 :1 80 , 9 0 31 F i x e d C h a r g e s Ln 8 21 7 , 9 4 9 83 , 0 5 5 8, 3 6 3 3,5 9 1 5,6 2 8 53 , 4 2 1 99 3 3,2 2 8 59 , 8 7 0 32 A m o r t a t i o n o f E x c e s s D e f e r r e d T a x e s Ln 9 33 C a p i t a l i z e d P a y r o l l T a x e s Ln 1 0 34 D e p r e c i a t i o n A d j u s t m e n t Ln 1 1 35 F I T A I n c e s J i s a l l o w n c e s Ln 1 2 36 In c A d j A 1 l o c o n 2 0 0 1 Ln 1 3 37 In c A d j A 1 l o c o n B i g 3 E x p Ln 1 4 38 F e d e r a i i T C A m o r t l l o n ,L n 4 39 To t l In c o m e A d j u s t m e n t Ln 3 1 + 3 5 . . 3 7 21 7 , 9 4 9 83 , 0 5 5 8, 3 6 3 3,5 9 1 5,6 2 8 53 , 4 2 1 99 3 3,2 2 8 59 , 6 7 0 40 F e d e r T a x a b l e I n c o m e Ln 3 D - G r o s U p 29 9 , 1 3 8 20 3 , 1 8 4 20 , 9 5 7 8,6 8 3,1 1 3 28 , 8 2 2 53 7 1,6 9 4 32 , 1 6 9 41 F e d e r a l In c o m e T a x 34 . 0 0 0 0 % 10 1 , 7 0 7 69 , 0 8 3 7,1 2 5 2,9 4 4 1, 0 5 8 9,8 0 0 18 3 57 6 10 , 9 3 7 42 F e d e r a l S u r . T a x A l l o c a t i o n Re c r d s 43 N e t F e d e r l In c o m e T a x Ln 4 1 4 2 - 3 8 10 1 , 7 0 7 69 , O B 3 7,1 2 5 2,9 4 4 1, 0 5 8 9,8 0 0 18 3 57 6 10 , 9 3 7 44 N e t R e t m lo 3 0 41 5 , 3 8 0 21 7 , 1 5 6 22 , 1 9 4 9,3 0 7,6 8 3 72 , 4 4 4 1,3 4 8 4,3 4 6 80 , 9 0 2 45 F i x e d C h a r g e s Ln 3 1 21 7 , 9 4 9 83 , 0 5 5 8,3 6 3 3,5 9 1 5,6 2 8 53 , 4 2 1 99 3 3,2 2 8 59 , 6 7 0 46 o t e r S I T A d j u s t m e n t Re c r d s 47 F e d e r a l In c o m e T a x Ln 4 1 10 1 , 7 0 7 69 , 0 8 3 7,1 2 5 2,9 4 1, 0 5 8 9,8 0 0 18 3 57 6 10 , 9 3 7 48 S t a t e T a x a b l e I n c o m e Ln 4 4 - 4 7 G r o s s U p 32 5 , 9 4 7 22 1 , 3 9 22 , 8 3 5 9,4 3 6 3,3 9 2 31 , 4 0 6 58 6 1,8 4 35 , 0 5 2 49 S t a t e I n c o m e T a x 8.2 2 5 0 % 26 , 8 0 9 18 , 2 1 0 1,8 7 8 77 6 27 9 2,5 8 3 48 15 2 2,8 8 3 50 S t a t e S u r - T a x A l l o c a t i o n Re c o r d s 51 S t a t e I T e A m r t i z t i o n ,L n 4 5 52 N e t S t a t e I n c o m e T a x Ln 4 e . D - 1 1 26 , 8 0 9 1 18 , 2 1 0 1,8 7 8 1 77 6 .1 27 9 .1 2,5 8 3 48 1 15 2 1 .1 2,8 8 3 Pro p r i t a r y I n f o r m a t o n Mo s s A d a m s , L L P Vlr s 3 . 2 10 f 2 3 21 1 5 1 0 0 8 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t st u d y A r e a : 4 7 2 2 2 6 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 8- 2 Stu d y Y e a r : 2 0 0 8 MS G PL MS G PL MS G PL PL LI N E DE S C R I P T I O N SO U R C E . b c d . 12 1 1 0 L a n d & Su p p o r t As s e t s ,L n 1 3 1,9 4 8 , 4 9 0 75 8 , 9 6 10 7 , 5 7 8 31 , 3 8 6 48 , 8 3 9 46 4 , 7 7 5 9,2 1 9 26 , 3 0 9 50 1 , 4 2 3 22 2 1 0 C O E - 8 ' W h i n g .L n 3 6 1,6 9 6 , 9 0 3 1, 3 9 1 , 9 7 0 50 , 3 9 8 25 4 , 5 3 6 3 2 2 0 C O E . Q p e r a r ,L n 2 3 4 2 2 3 0 C O E - T r a n s m i s s i o n ,L o 7 8 2, 6 3 4 , 2 7 9 89 5 , 8 8 9 42 0 . 7 6 8 29 , 1 9 1 69 , 7 5 7 87 2 , 9 3 6 17 , 7 6 8 24 , 5 6 6 50 3 , 4 0 4 5 2 3 1 0 I n f o O r g l T e r m E q u i p ,L o 1 l 62 4 1 0 C & W F ,L n 4 2 8, 5 5 1 , 2 6 9 2,7 3 0 , 0 2 1 29 0 , 4 8 2 12 7 , 9 2 1 25 3 , 1 3 9 2,3 9 9 , 9 2 8 43 , 1 8 3 14 9 , 3 7 4 2, 5 5 7 , 2 2 0 7 To t a l c e e , l O T , C & V V Ln 2 . . 6 12 , 8 8 2 , 4 5 1 5,0 1 7 , 8 7 9 71 1 . 2 5 0 20 7 , 5 1 1 32 2 , 8 9 7 3,0 7 2 , 8 6 4 60 , 9 5 1 17 3 , 9 4 0 3, 3 1 5 , 1 6 0 8 Dis t r i b u t i o n o f L i n e 7 to 7 1 7 a 10 0 . 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2.5 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % 9 E q u a l A c e s s - I n v e s t m e n t ,L n 2 10 2 6 8 0 T a n g i b l e A s s e t ,L o 3 1 11 T E L E C O M F ' L T I N S V c . X C L 2 6 0 Ln 1 + 7 + 9 + 1 0 14 , 8 3 0 , 9 4 1 5,7 7 6 , 8 4 1 81 8 , 8 2 7 23 8 , 8 9 7 37 1 , 7 3 5 3,5 3 7 , 6 3 9 70 , 1 7 0 20 0 , 2 4 9 3, 8 1 6 , 5 8 2 12 D i s t r b u t i o n o f L i n e 1 1 Ln 1 1 / 1 1 a 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2.5 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % 13 2 6 9 0 I n t a n g i b l e A s s e t s ,l o 3 5 14 2 0 0 1 T E L E C O M P L A N T I N S V C Ln 1 1 + 1 3 14 , 8 3 0 , 9 4 1 5,7 7 6 , 8 4 1 81 8 , 8 2 7 23 8 , 8 9 7 37 1 , 7 3 5 3, 5 3 7 , 6 3 9 70 , 1 7 0 20 0 , 2 4 9 3,8 1 8 , 5 8 2 15 Dis t r b u t o n o f U n e 1 4 Ln 1 4 1 1 4 a 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5. 5 2 1 1 % 1.6 1 0 8 % 2.5 0 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % 16 2 1 1 0 L a n d A s s e t s ,L n 1 2 17 2 0 0 1 T P I S x l L n d Ln 1 4 - 1 6 14 , 8 3 0 , 9 4 1 5,1 7 6 , 8 4 1 81 8 , 8 2 7 23 8 , 8 9 7 37 1 , 7 3 5 3, 5 3 7 , 6 3 9 70 , 1 7 0 20 0 , 2 4 9 3,8 1 6 , 5 8 18 Dis t b u t i o n o f L i n e 1 7 Ln 1 7 / 1 7 a 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5. 5 2 1 1 % 1.6 1 0 8 % 2.5 0 6 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1. 3 5 0 2 % 25 . 7 3 3 9 % 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 ,L n 6 20 2 0 0 3 P l a n t U n d e r C o n s t c t l o n ,ln 1 0 16 9 , 3 7 2 65 , 9 7 3 9,3 5 1 2,n 8 4,2 4 5 40 , 4 0 0 80 1 2,2 8 7 43 , 5 8 6 21 2 0 0 5 T e l e c o m P l a n t A d j u s t m e n t ,ln 1 4 22 T O T A L T E L E C O M P L A N T Ln 1 4 + 1 9 . . 2 1 15 , 0 0 0 , 3 1 3 5, 6 4 2 , 8 1 4 82 8 , 1 7 8 24 1 , 6 2 5 37 5 , 9 8 1 3,5 7 8 , 0 3 9 70 , 9 7 2 20 2 , 5 3 6 3,8 6 0 , 1 6 8 23 1 2 2 0 M a t r i a l a n d S u p p l i e s ,lo 2 0 14 , 7 2 6 4,7 0 1 50 0 22 43 6 4,1 3 3 74 25 7 4, 4 0 4 24 1 5 0 0 o t h e r J u r i s A s t s e t ,L n 1 4 25 3 1 0 0 A c u m u l a t e d D e p r e c i a t n ,lo 2 8 9,8 5 6 , 8 5 9 3, 8 7 9 , 3 2 2 62 5 , 6 8 7 15 6 , 9 1 6 24 3 , 4 4 9 2,3 1 9 , 8 3 3 47 , 4 9 5 12 6 , 7 8 6 2,4 5 7 , 3 1 0 26 E q u a l A c c e s s - A c c u m D e p r c i a t i o n ,L n 2 4 27 3 2 0 0 A c c D e p - 1 d f o r F u t U s e ,L n 3 0 28 3 4 0 0 A c c u m A m o r t . T a n g i b i e ,L n 3 1 . 3 2 29 3 5 0 0 A c : c u m A m o r t - l n t a n g i b l e ,ln 3 3 30 3 6 0 0 A c : u m A m o r t - O e r ,L n 3 4 31 4 1 0 0 N e t C u r D e f O p I n c T a x e s ,L n 4 8 32 4 3 4 N o n c u r D e f O p e r I n c T a x ,L n 6 1 30 1 , 2 7 1 1 11 7 , 3 4 9 16 , 6 3 3 1 4, 8 5 3 .1 7,5 5 1 -I 71 , 8 6 2 1,4 2 5 1 4, 0 6 8 n, 5 2 33 E q u a l A c c e s s . D e f e r r d O p e r I n c T a x e s ,L n 2 5 34 4 3 6 O U i e r D e f e r r C r e i t s - e t ,L n 6 7 35 4 3 7 0 o t h e r J u r L i B b & D e f C r e d i t e t ,L n 6 9 36 N E T T E L E C O M P L A N T A Ln 2 2 + 2 3 - 2 4 . . 3 5 I 4'6 5 6 ' 9 0 9 1 1, 8 5 0 , 8 4 4 18 6 ' 3 5 8 1 80 , 0 1 6 ~ I 12 5 , 4 1 7 :1 1,1 9 0 , 4 7 6 22 , 1 2 6 1 71 , 9 3 9 1,3 2 9 , 7 3 3 37 D i s t r i b u t o n o f l i n e 3 6 Ln 3 6 a 10 0 . 0 0 0 0 ~ 38 1 0 7 4 % 3.8 3 7 0 ~ 1. 6 4 7 5 % 2.5 8 2 2 % 24 . 5 1 1 0 % 0.4 5 5 6 % 1.4 8 1 2 % 27 . 3 7 8 2 % 38 1 4 0 2 R u r a l T e l B a k S t o c B ,lo 1 6 39 C a s h W o r k n g C a p i t l C ,L n 2 1 17 9 , 5 6 4 79 , 5 9 1 10 , 9 4 7 2,7 1 4 4,8 0 7 .1 37 , 4 8 8 71 7 1 1,7 3 0 41 , 5 9 1 40 E q u a l A c s - U n a m o r t e d E x p e n s e s D ,lo 2 6 41 I n v e m e n t A 1 l o l D i s a l l o w E ,L n 3 1 42 A c c u m D e p r l A m o r t A l l o w l D i s a l l o w F ,lo 7 2 43 4 0 4 0 C u s t m e r D e p o s i t s G ,lo 3 7 1 40 0 1 15 6 22 1 6 -I 10 .1 95 21 5 10 3 44 4 3 1 0 o t h e r l o n g - T e r m U a b . H ,lo 5 7 45 O t e r T e l e c o m P I A d j u s t I Re c o r d s 46 N E T TE L E C O M P L T & O T H R A T E B A S E I T E M S A+ B . . F + I - ( G + H ) I 5,0 3 6 , 0 9 4 1 1,9 3 0 , 2 7 9 19 7 , 2 8 2 1 82 , n 4 :1 13 0 , 2 1 4 :1 1,2 2 7 , 8 6 9 22 , 6 4 1 1 73 , 6 6 1,3 7 1 , 2 2 1 47 D i s t b u t i o n o f L i n e 4 6 Ln 4 6 4 6 a 10 0 . 0 0 0 0 % 31 1 3 2 8 9 % 3.9 1 7 4 % 1. 6 4 2 6 % 2.5 8 5 8 % 24 . 3 8 1 4 % 0. 4 5 3 5 % 1. 4 6 7 % 27 . 2 2 9 % Pr o p r i 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 Ve r n 3 . 2 2o f 2 3 Pr o p r i e t r y I n f o r m t i o n Mo s s A d a m s , L L P Ve r s n 3.2 3o l 2 3 Mi d a l e T e l e p h o n e E x c h a n g e . 1 0 N E C A F o r e c a s t 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 8 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 e r C l a s s i f i c a t i o n 2 B i g T h r e e E x p e n s e s D i s t r 3 T o t l SE P A R A T I O N Su p p o r t A s s e t o i n t x f G S F . B & C Ge n e r a l S u p p o r t F a c i l i t e s - B & C Dir e c t A s s i g n m e n t To t l S u p p o r t A s s e t Dis t l i b u t 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 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 b u t i o n o f L i n e 1 3 No t 1: If C a r l i e r C l a s s i f i c a t o n = A , t h e n If C a r r e r C 1 s s i f c a n = e , t h e n Pro p r i e t a r y l n f o n n t i o n 21 1 5 1 0 0 8 GE N E R A L S U P P O R T F A C I L I T I E S S4 IN T E R S T A T E T O L L IN T R A S T A T E T O L L To T A L CO M P A N Y SO U R C E Re c o r d s ,L n 6 43 . 9 6 3 % 6,5 5 3 3 % 1, 5 2 7 1 % 2.7 6 2 9 % 20 . 7 9 8 1 % 0.3 9 8 5 % 0.9 0 4 % 23 . 0 6 7 4 % ,L n 8 38 . 9 5 1 3 % 5. 5 2 1 1 % 1. 6 1 0 8 % 2.5 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % No t e 1 75 8 , 9 6 2 10 7 , 5 7 8 31 , 3 8 6 48 , 8 3 9 46 4 , 7 7 5 9,2 1 9 26 , 3 0 9 50 1 , 4 2 3 No t e 1 Dir e c t Ln 5 . . 7 I 1, 9 4 8 , 9 0 I 75 8 , 9 6 2 10 7 ' 5 7 8 1 31 , 3 8 :1 48 , 8 3 9 :1 46 4 , 7 7 5 9, 2 1 9 1 26 , 3 0 9 50 1 , 4 2 3 Ln 8 J 8 a 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 25 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 No t e 1 Dir e c t Ln 1 0 . . 1 1 Ln 8 + 1 2 75 8 , 9 6 2 10 7 , 5 7 8 31 , 3 8 :1 48 , 8 3 9 :1 46 4 , 7 7 5 9,2 1 9 1 26 , 3 0 9 50 1 , 4 2 3 Ln 1 3 f 1 3 a 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2.5 0 6 5 % 23 . 8 5 3 1 % 0, 4 7 3 1 % 1. 3 5 0 2 % 25 . 7 3 3 9 % Ln 5 a * 2 , L n 6 a * 2 , L n 1 0 e * 2 Ln 5 e * 3 , L n 6 a * 3 , L n 1 0 e * 3 Mo s s A d a m s , L L P Ve r s 3 . 4 of 23 Mid v l e T e l e p h o n e E x c h a n g e . 1 0 N E C A F o r e c a s t Stu d y A r e a : 4 7 2 2 2 6 Stu d y Y e a r . 2 0 0 8 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 P c t . . t c h b o a r d s 2 ' W P c t ~ D i r e c t o r y A s s i s t a n c e 3 S u b L i n e M O U P c t 4 S O B T o l l M O U P c t 5 W S W S P c t . T S P S O p e r P o s i t i o n 6 R e a l P r o s o r T i m e P c t - - T A 7 R e a l P r o s o r T i m e P e t . T S P S 8 R E L M O U ' s ~ T a n d e m S w i c h i n g 9 T r a n s M e a s u r e 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 t m s 11 C a t 1 - C p e r a t o r S y s e m s 12 L o c , T o n , D S A , O S B , a n d 13 T r a f f c S ' N t c h b o a r d s 14 A u x - o l r e c t A s s i s t 15 A u x ~ l n t e r c p t 16 J t E x c h & T o R S O S 17 T S P S . Q e r P o s i t o n 18 T S P S - R T A 19 T S P s - e r 20 D i r e c t A s s i g n m e n t 21 T o t t C a t 1 22 D i s t r i b u t n o f L i n e 2 1 23 T O T A L C O & O E R A T O R 24 O l i b i b u t o n o f L i n e 2 3 25 2 2 1 0 C e n t l O f f S w r l n g 26 C a t 2 ~ T a n d e m S ' N t e i n g 27 D i r e c t A s s i g n m e n t 28 T o t a l Ca t 2 29 D i s t r b u t o f L i n e 2 8 3031 C e t 3 - o c l S ' N t c i n g - T S 32 C a t 3 - L o c l S ' l 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 l Ca t 3 35 D i s t r i b u t o n o f L i n e 3 4 36 T O T A L C O E - C H I N G 37 D i s t i b u t i o n o f L i n e 3 6 Pr o p r i e t a r y I n f o r m t i o n Re c 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 a ' " Ln 1 5 a ' " 3 Ln 1 6 a ' " 4 Ln 1 7 a ' " 5 Ln 1 8 a * 6 Ln 1 9 a " ' Di r e c t Ln 1 3 . . 2 0 Ln 2 1 1 2 1 a Ln 2 1 Ln 2 3 / 3 a Ln 2 6 . 8 Di r e c t Ln 2 6 . . 2 7 Ln 2 8 1 Ln 3 1 a ~ Ln 3 2 a ~ Dir e c t Ln 3 1 . . 3 3 Ln 3 4 l 3 a Ln 2 8 + 3 4 Ln 3 6 2/1 5 1 2 0 0 CE N T R A L O F F I C E E Q U I P M E N T SO U R C E TO T A L CO M P A N Y . 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 1, 6 9 , 9 0 3 '~ ~ . , -. , :. , :. , 25 4 , 5 3 6 . . 1, 6 9 , 9 0 3 1, 3 9 1 , 9 7 0 ~ 50 , 3 9 8 . . . . . 25 4 , 5 3 6 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % . 2, 9 T o o % . . . . . 15 . 0 0 % 1, 6 9 6 , 9 0 3 1, 3 9 1 , 9 7 0 . 50 , 3 9 8 . . . . . 25 4 , 5 3 6 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % . 2. 9 7 0 0 % . . . . . 15 . ~ ~ % Mo s s A d a m s , L L P Ve r s n 3.2 5 of 23 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t 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 8 21 1 5 / 0 0 8 CE N T R A L O F F I C E E Q U I P M E N T 8- 5 ~~ d 1 38 w a U n e 39 E x Tr k WB 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 R o c a t o r ( T r a n s S P F ) 42 C O E C a t 4 . 2 1 - F u m t o O t h e r s P c t 43 I n t e r e x c h a n g 8 T r k V V 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 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 i 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 49 E x T r k x J ~ B a s i c 50 E x T r k x f \ - B a s i c D A 51 E x T r k \ J 52 E x c h T r k W B - D i r e c t A s s i g n m e n t 53 4 . 1 3 E x L i n e x M 54 J o i n t M S G 55 P L & L o c l 56 D i r e A s s i g n m e n t - B a s i c l S p e c i a l 57 C a t 4 . 2 - l n t e r e x c h a n g e 58 4 . 2 1 F u m t o o t h e r s 59 4 . 2 2 W i 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 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 O E C A T 4 . 1 3 63 C O E C a t 4 . 1 3 W o r k n g L o o p s 64 C O E C a t 4 . 1 3 A s s i g n e d I n v e t Re c 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 4 6 a ' " 3 8 Dir e c t Di r e Ln 4 9 a ' " 4 0 Di r e Ln 5 1 a ' " 3 9 Dir e c t Ln 6 b ' " 4 1 Ln 6 c . . i Di r e Ln 5 8 a ' " 4 2 Ln 6 0 a ' " 4 3 Di r e Di r e Re c o r d s No t e 1 1, 0 0 , 8 0 9 7,3 0 9 23 , 6 6 0- 50 3 , 4 0 4 7,8 8 3 22 8 , 0 4 2 24 3 , 8 1 9- 3, 6 5 4 3, 8 " SO U R C E ot e r 1,1 1 0 1.0 1 4 . 1 1 8 4 3,6 5 4 1,1 0 2 1.0 0 . 8 0 9 4 3. 6 " No t e 1: Co s t p e r l o o p = 91 3 . 6 1 9 4 Pr o p r i e t a r y I n f o r m a i o n Mo s s A d a m s , L L P Va r s n 3 . 6 of 23 Mid v a l e T e l e p h o n e E x c h a n g e ~ 1 0 N E C A F o r e c a s t Stu d y A r e a : 4 7 2 2 2 6 Stu d y Y e a r : 2 0 0 8 TO T A L CO M P A N Y 21 1 5 1 2 0 0 8 Re c o r d s Re c o r d s 10 0 . 0 0 0 0 % SE P A R A T I O N S F A C T O R S 65 C o n v e r s a t o n M i n u t e s P e t 66 H o s t I e m o t M O U M i l e s P e t CO E C A T E G O R Y 4 S E P A R A T I O N t C o n t 67 4 . 2 3 A l l o t e r 68 J o l n t M S G 69 P L , T W & L o c a l 70 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 Ln 8 2 * Ln 8 2 c . . i Di r e c t 71 C a t 4 . 3 - o s t R e r n e M S G 72 J o i n t ( x i A T S ) 73 W A T S 74 O i r e e t A s s i g n m e n t Ln 7 2 a ' * 6 6 Dir e c Di r e c t 75 T o t l Ca t 4 Ln 4 6 . . 6 2 + 6 7 . . 7 4 76 T O T A L C O E - T R A N S M I S S I O N 77 D i s t b u t i o n o f L i n e 1 6 Ln 7 5 Ln 7 6 f 6 a 78 T O T A L C E N T R A L O F F I C E E Q U I P 79 D i s t b u t o n o f L i n e 7 8 Ln 2 3 + 3 6 + 7 6 Ln 7 B n a a LI N E O 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 . 2 3 i 80 C O E C a 4 . 2 3 T e r m . R e c o r d s .. o i n t M e s s a g e T o t l T e r m I n a t i o n s 81 C O E C a t 4 . 2 3 . T e r m s N o t e 1 82 . . o i n t M e s s a s e T o t a l A l l o c t e d I n v e s n t N o t 1 No t e 1: Co s t p e r t e r m i n a t o n = Pr o p r i e t a r y I n f o r m o n CE N T R A L O F F I C E E Q U I P M E N T 1,1 6 4 , 3 6 9 21 , 1 7 0 14 , 1 1 4 46 , 0 9 7 44 4 , 8 9 4 65 2 , 0 7 0 21 , 3 0 8 7,0 5 7 2,6 3 4 , 2 7 9 89 , 8 8 9 42 0 , 7 6 8 29 , 1 9 1 69 , 7 5 7 67 2 , 9 3 6 17 , 7 6 8 24 , 5 6 50 3 , 4 0 4 2,6 3 4 , 2 7 9 89 5 , 8 8 9 42 0 , 7 6 8 29 , 1 9 1 69 , 7 5 7 67 2 , 9 3 6 17 , 7 6 8 24 , 5 6 50 3 , 4 0 4 10 0 . 0 0 0 0 % 34 . 0 0 8 9 % 15 . 9 7 2 8 % 1.1 0 8 1 % 2.6 4 8 1 % 25 . 5 4 5 3 % 0.6 7 4 5 % 0. 9 3 2 6 % 19 . 1 0 9 8 % 4,3 3 1 , 1 8 3 2,2 8 7 , 8 5 8 42 0 , 7 6 8 79 , 5 8 9 69 , 7 5 7 67 2 , 9 3 6 17 , 7 6 8 24 , 5 6 75 7 , 9 4 0 10 0 . 0 0 0 0 % 52 . 8 2 9 % 9.7 1 4 9 % 1.8 3 7 6 % 1.6 1 0 6 % 15 . 5 3 7 0 % 0.4 1 0 2 % 0. 5 6 7 2 % 17 . 4 9 9 % 3,5 2 8 . 3 9 33 33 0 1,1 8 5 , 5 3 9 1.1 6 4 . 3 6 9 7,0 5 7 14 , 1 1 4 Mo s s A d a m s , L L P Ve r s n 3. 70 f 2 3 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e a s t stu d y A r e : 4 7 2 2 2 6 Stu d y Y e a r : 2 0 0 8 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 G r o s A l l o c a r ( T r a n s S P F ) 2 R E L M O U ' s . C o l n l e s s P u b T e l lO T E Q U I P M E N T S E P A R A T I O N 32 3 1 0 I n f o O r i g f T e r m E q u i p 4 C a t 1 - o e r l O T 5 C o i n l s P u b T e l E q 6 D i r e c t A s s i g n m e n t 7 T o t l C a t e g o i y 1 8 D i s t r i b u t 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 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 E R M E Q U I P 12 D i s t r i b u t o n o f l i n e 1 1 Pr o p r i e t a r y I n f r m a t o n Re c r d s Re c o r d s Ln 4 a * 1 Ln 5 a * 2 Dir e c t ln 4 . . 6 ln 7 1 7 a Dir e c t ln 9 1 9 ln 7 + 9 Ln 1 1 / 1 1 a TO T A L CO M P A N Y SO U R C E 21 1 5 1 0 0 8 IN F O R M A T I O N O R I G I N I T E R M E Q U I P M E N T 8- MS G b 10 0 . 0 0 0 0 % 24 . 2 1 7 0 % Mo s s A d a m s , L l P V, r . i o 3 . 2 80 f 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 - 1 0 N Ë C A F o r e c a s t St u d y A r e a : 4 7 2 2 2 6 stu d y Y e a r : 2 0 0 8 CA B L E A N D W I R E F A C I L I T E S SO U R C E IO N S F A C T O R S 1 G r o s s A l c a r P e 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 V v L i n e 4 M O U P c t - E x T r k W B C& W F C A T 1 - 2 S E P A R A T I O N 52 4 1 0 C a b l & W I r e F a c i l i t e s 6 C a t 1 - - c h L i n e x M 7 1 . 1 1 n t r a P L & W A T S 8 1 . 2 1 n t e r P L & W A T S 9 1 . 3 J o i n t 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 l C a t g o r y 1 12 C a t 2 . . & E x c h T r u n k 13 E x T r k . j o i n t r n s s a g e 14 E x T r k - E A S 15 E x L i n e V v 16 \ n L i n e 17 Y \ T r u n k 18 \ N T r u n k D A 19 T o t 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 & Y J C a t 1 W o r k i n g L o p s 21 D i s t b u t o n o f L i n e 2 1 22 C a t 1 - E x L i n e x N i 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 2 c . . d Ln 2 2 b " 1 Dir e c t Ln 7 . . 1 0 Ln 1 3 e " 2 01 _ Ln 1 5 a " 3 Dir e 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 " 2 1 EA S Ot . r Us e r De f i n e d (h ) (I ) SO U R C E (9 1 1,1 0 2 99 . 2 7 9 3 % 5.1 1 4 . 4 4 0 4 0.3 6 4 % 18 , 5 6 4 4 0.3 6 0 4 % 18 . 5 8 4 No t e 1: Co s t p e r l o o p = 4,6 4 1 . 0 5 2 3 Pro p r i e t a r y I n f o r m t i o n Mo s s A d a m s , L L P V. r s i c 3 . 2 21 1 5 1 0 0 8 8- 7 50 . 0 0 0 0 % 2,5 5 7 , 2 2 0 14 9 , 3 7 4 14 9 . 3 7 4 9 of 23 21 1 5 1 2 0 0 8 Mid l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t st u d y A r a : 4 7 2 2 2 6 Stu d y Y e a r . 2 0 0 8 Re c o r d s Re c o r d s Re c o r d s . Re c r d s Re c o r d s CA B L E A N D W I R E F A C I L I T I E S IN T R A S T A T E r O L L 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 e i n g e T r k w e 24 C M M P e ~ X x J 25 C & " I T W C o n n e c t M i n M i l e s P c t " ' T 26 C & W F T W C o n n e c t M i n M i l e s P c l . - m l 27 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % Ar i O N 28 C a t 29 V V P L . D i r e c t A s s i g n m e n t 30 V I . J o i n t M e s s a g e 31 J o i n t M S G x f i 32 P L . T \ & L o c a l x l W 33 J o i n t T W - I T 34 J o i n t T W - R m t 35 D i r e c t A s s i g n m e n t . N o n a c c s s 36 T o t l C a t e g o r y 3 37 e a 4 - o s t J e m o C & w i 38 J o i n t ( x i A T S ) 39 W A r S 40 D i r e c t A s s i g n m e n t 41 T o t 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 b u t o n o f L i n e 4 2 Dir e c t Ln 3 0 a * 2 3 Ln 4 8 b * 2 4 Ln 4 9 c . . i Ln 4 9 j * 2 5 Ln 4 9 k " Di r e c t Ln 2 8 . . 3 5 22 3 , 3 6 9 2, 9 5 3 , 7 9 0 36 , 0 3 9 3, 2 1 3 , 1 9 8 1,4 9 1 , 4 5 7 23 4 , 7 8 9 87 , 8 7 5 13 2 , 9 5 0 1,2 4 1 , 5 0 7 24 , 6 1 9 Ln 3 8 a " 2 7 Di r e c t Di r e c t Ln 3 8 . . 4 0 ln 1 1 + 1 9 + 3 6 4 1 Ln 4 2 / 4 2 a 8,5 5 1 , 2 6 10 0 . 0 0 0 0 % 2,7 3 0 , 0 2 1 31 . 9 2 5 3 % 29 0 , 4 8 2 3. 3 8 9 % 12 7 , 9 2 1 1.4 9 5 9 % 25 3 , 1 3 9 :1 2, 3 9 9 , 9 2 8 43 , 1 8 3 1 14 9 , 3 7 4 2.9 6 0 3 % 28 . 0 6 5 2 % 0.5 0 5 0 % 1.7 4 6 8 % IN T R A S T A T E T O L In t e r In t r EA S Us e r Ot e r JlM S G 1 W LA T A LA T A De f i n e d In t r t l Re m o e hI m ti (k 2,5 5 7 , 2 2 0 29 . 9 0 4 6 % No t e 1: Co s t p e r c i r c i t m i l e = lN T õ ! l S T Ä T e - O L L TO T A L Jo l n t M S G In t r In t r CO M P A N Y Ex c l i w LA T A LA T A SO U R C E e b (e l Cd Re c r d s 14 , 4 5 2 14 , 2 7 8 Re c o r d s 55 Ln 4 J 4 e 10 0 . 0 0 0 0 % 98 . 7 9 4 % Ln 4 5 J 4 4 e 0, 3 8 2 0 % Ln 4 8 a * 4 6 2.9 8 9 , 8 2 9 2.9 5 3 , 7 9 0 Ln 4 8 e * 4 7 11 4 2 0 20 6 . 8 8 11 9 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 3 44 E q u l v I X C i r e M i l e ~ S G 45 - P L , T W & L o c a 46 D i s t b u t i o n 0 ' L i n e 4 4 47 D i s t b u t i o n 0 ' L i n e 4 5 48 e a 3 - A I I o t e r x M S G 49 - P L l W L o c a l 0.8 2 3 4 % 24 , 6 1 9 Pro 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 Ye r & n 3 . 2 10 o f 2 3 2/ 1 5 / 0 0 8 Mi d v a l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t stu d y A r e a : 4 7 2 2 2 6 stu d y Y e a r : 2 0 0 8 S-8 AM O R T I Z A B L E A S S E T S TO T A L CO M P A N Y MS G PL MS G PL MS G PL MS G PL . b c d . (h i 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5. 5 2 1 1 % 1.6 1 0 8 % 2, 5 0 6 5 % 23 . 8 5 3 1 % 0. 4 7 3 1 % 1. 3 5 0 2 % 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % 2.9 7 0 0 % 10 0 . 0 0 0 0 % 34 . 0 0 9 % 15 . 9 7 2 8 % 1.1 0 8 1 % 2.6 4 8 1 % 25 . 5 4 5 3 % 0.6 7 4 5 % 0.9 3 2 % 10 0 . 0 0 0 0 % 31 . 9 2 5 3 % 3.3 9 6 9 % 1.4 9 5 9 % 2. 9 6 3 % 28 . 0 6 5 2 % 0.5 0 5 0 % 1.7 4 6 8 % 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.8 1 0 8 % 2.5 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2. 5 0 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % LIN E DE S C R I P T I O N AT 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 j s l r 2 2 2 1 0 C O e - 8 w i h O i s t r 3 2 2 2 C O E . . p e r a t o r S y s e m s D i s t 4 2 2 3 0 C O E - T r a n s m i s s i o n D l s t r 5 2 3 1 0 l O T O i s t r 6 2 4 1 0 C & W F D i s t r 72 0 0 1 T P I S 8 2 0 0 1 T P I S i n d 2 6 8 0 TA N G I B L E A S S E T S - C A P I T A L L E A S E S S E P 92 6 8 0 T a n g i b l e A s s e - C a p i t l L e a s s 10 2 1 1 0 L a d & S u p t A s s e t s L n 1 Q a . , 11 2 2 1 0 C O e - S w l i n g L n 1 1 a " ' 2 12 2 2 2 0 c o e - Q p e r a t o r L n 1 2 a " ' a 13 2 2 3 0 C O E . T r a n s m l $ $ i o n L n 1 3 a + 4 14 2 3 1 0 l O T L n 1 4 a * S 15 2 4 1 0 C & W F L n 1 5 a * 6 16 N o t c l s s i f i e d b y ac c o u n t L n 1 6 a * 7 17 D i r e c t A s s i g n m e n t D i r e c t 18 T O T A L C A P I T A L L E A S E S L n 1 0 . . 1 7 19 D i s t b u t i o n o f L i n e 1 8 L n 1 8 / 1 8 a I 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 S E P I 20 2 6 8 0 T a n g i b l e A s s e - L e a s e h l d I m p r o 21 2 1 1 0 L a n d & S u p t A s s e t 22 2 2 1 0 C O E - s c h i n g 23 2 2 C O E - p e r a 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 l O T 26 2 4 1 0 C & \ N 27 N o t c l s s l f d b y ac c u n t 28 D i r e c t A s 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 b u t o n o f L i n e 2 9 SO U R C E ,L n 1 4 ,L n 3 7 ,L n 2 4 ,L n 7 7 ,L n 1 2 ,L n 4 3 ,L n 8 S. 2 , L n 1 1 25 . 7 3 3 9 % 15 . 0 0 0 0 % 19 . 1 0 9 8 % 29 . 9 0 6 % 25 . 7 3 3 9 % 25 . 7 3 3 9 % Ln 2 1 a * 1 Ln 2 2 a * 2 Ln 2 3 a * 3 Ln 2 4 a * 4 Ln 2 5 a * 5 Ln 2 6 a * 6 Ln 2 7 a * 7 Dir e c t Ln 2 1 . . 2 8 Ln 2 l l 31 T O T A L T A N G I B L E A S E T S L n 1 8 + 2 9 32 D i s t r i b u t o n o f U 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 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 o n o f L i n e 3 5 L n 3 5 1 5 8 Pr o p r i e t a r y I n f o r m t i o n Mo s s A d a m s . L L P Ve l ' 3 . 2 11 of 23 Mi d V l e T e l e p h o n e E x c h a n g e . 1 0 N E C A F o r e c a s t stu d y A r a : 4 7 2 2 2 6 St u d y Y e a r : 2 0 0 8 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 22 4 1 0 C & W F D l s t r 3 E q u a l A c c s s M O U P c t OT H E R A C C O U N T S S E P A R A T I O N 4 2 0 0 P r o p H i d F u t 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 b u t i o n o f L i n e 6 SO U R C E ,L n 1 5 ,L n 4 3 Re c r d s Ln 4 a " ' 1 Di r e c t Ln 4 . . 5 Ln 6 1 6 8 2 0 0 3 P I U n d e r C o n s t r 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 i b u t i o n of Li n e 1 0 Ln 8 a " ' 1 Dir e c t Ln B . . 9 Ln 1 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 t L n 1 2 a " ' 1 13 D i r e c t A s s i g n m e D i r e c t 14 T O T A L T E L E C O M P L A A D J U S T L n 1 2 . . 1 3 15 D i s t r i b u t i o n o f U n e 1 4 L n 1 4 1 1 4 a I M I S C A C C O U N T S S E P A R A T I O N I 16 1 4 0 2 C l a s s B R T B S t o c k L n 1 6 a " ' 1 17 1 4 3 8 D e f r r d C h a r g e s Ln 1 7 a " ' 1 18 1 2 2 0 M a t e r i a l & S u p ! x / P E 19 D i r e c t A s s i g 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 " ' Oi r e Ln 1 8 . . 1 9 21 C a s h W o r k i n g C a p i t l e w I E Q U A L A C C E S S I N V E S T M E N T S E P A R A T I O N I 22 E q u a l A c s s G r o s I n v s t m t L n 2 2 " ' 3 23 E q u a l A c s G r s I n v e s t m n t . O A D i r e 24 A c c u m D e p r e c i a i o n L n 2 4 a " ' 3 25 D e f e r r O p e r I n c T a x e s L n 2 5 e " ' 3 26 U n a m o r t i z e d E x p e n s e 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 4 - 2 5 + 2 6 28 D i s t b u t o n o f L i n e 2 7 L n 2 7 J 2 a I I N V E S T A L L O W I D I S A L L O W S E P A R A T I O N I 29 I n v n t A l l o / O i s a l l o w a n c e s L n 2 a " ' 1 3D 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 Pro p r i e t a r y I n f o r m a o n TE L E C O M M U N I C A T I O N S P L A T . O T H E R A C C O U N T S 2/1 5 1 0 0 8 8- TO T A L CO M P A N Y 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 16 9 , 3 7 2 16 9 , 3 7 2 10 0 . 0 0 0 0 % 17 9 , 5 8 4 IN T E R S T A T E T O L L 38 . 9 5 1 3 % 31 . 9 2 5 3 % 5. 5 2 1 1 % 3.3 9 6 9 % 1.6 1 0 8 % 1.4 9 5 9 % 2,7 2 8 2,7 2 8 1.6 1 0 8 % 50 0 22 IN T R A S T A T E T O l L 2.5 0 5 % 2.9 6 0 3 % 4, 2 4 5 4,2 4 5 2. 5 0 6 5 % 43 43 8 4, 8 0 7 23 . 8 5 3 1 % 28 . 0 6 5 2 % 0.4 7 3 1 % 0.5 0 5 0 % 1.3 5 0 2 % 1.7 4 6 8 % 25 . 7 3 3 9 % 29 . 9 0 4 % 65 , 9 7 3 9, 3 5 1 50 22 0 40 , 4 0 0 40 , 4 0 0 23 . 8 5 3 1 % 80 1 0. 4 7 3 1 % 80 1 2,2 8 7 2,2 8 7 1. 3 5 0 2 % 43 , 5 8 6 65 , 9 7 3 38 . 9 5 1 3 % 9, 3 5 1 5.5 2 1 1 % 2,7 1 4 4,1 3 3 4,1 3 3 37 , 4 8 8 43 , 5 8 6 25 . 7 3 3 9 % 14 , 7 2 6 4, 7 0 1 74 25 7 4,4 0 14 , 7 2 6 4, 7 0 1 74 25 7 4,4 0 4 79 , 5 9 1 10 , 9 4 7 71 7 1, 7 3 0 41 , 5 9 1 Mo s s A d a m s , L L P Va r s n 3 . 12 of 23 Mid v l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e a s t Stu d y A r e a : 4 7 2 2 2 6 Stu d y Y e a r : 2 0 0 8 LI N E DE S C R I P T I O N nO N S F A C T O R S SO U R C E 1 2 0 0 1 T P I S D i s t 2 2 0 0 3 P U C - c t 3 C o r p O p e E x p e n s e s D i s t r 4 2 6 8 0 C a p i t l L e a s e s D i s t r 5 N e t T e l e c o m P l a n t D i s t r e x c l 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 D i s t r 7 2 2 1 0 C O E - s i n g O l s t r 8 2 2 2 0 C O E - D e r a r D i s t r 9 2 2 3 0 C O E . T r a n s m i s s i o n D i s t r 10 2 3 1 0 l O T D i s t 11 2 4 1 0 C & W F O i s t r 12 C O E , l O T , C & ' A 13 B i s T h r e e E x p e n s e O i s r OT H E R I N C O 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 n s e s 15 ~ F d s U s e 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 d C o n s t r u c t o n 18 o t e r N o n o p e r a i n g E x p n s e ,L n 1 5 ,L n 1 1 ,L n 1 7 ,L n 1 9 ,L n 3 7 ,L n 9 ,L n 3 7 ,L n 2 4 ,L n 7 7 ,L n 1 2 ,L n 4 3 ,L n 8 _, L n B Ln 1 S a . 2 Ln 1 6 a . 3 Ln 1 7 a * 1 Dir e c t 19 F i x e d C h a r g e s 20 I n t e r e s t o n C a p i t l L e a s e s 21 F i x e d C h a r g e s E x c l C a p i t l L e s e s 22 A m o r t i z a t n o f D e b t D I s c u n t 23 o t 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 Ln 2 0 a * 4 Ln 2 1 a . S Ln 2 2 * 5 Ln 2 3 a * 5 Ln 2 0 . . 2 1 25 S 2 4 0 R e n t R e v n u e s 26 S u p p o r t A s s e t s 27 C O E - S w i h i n g 28 C O E ~ p e r a r 29 C O E . T r a n s m i s s i o n 30 i n f O r i g I e n n E q u i p 31 C & W F 32 N o t C l a s s i f i d b y A c 33 U N B U N D L E D N E T W K E L E M E N T S 34 C & W F . U n b u n d t e d L o o p , L n 4 1 . L n 3 4 35 O p e r a t o r S y s e m s , L n 2 4 * L n 3 5 36 T a n d e m S 1 N h i n g , L n 2 9 * L n 3 6 37 L o c l S Y A t c h i n g , L n 3 4 * L n 3 7 38 T r a n s p o r t T e r m i n a t i o n , L n 6 5 * L n 3 8 39 T r a n s p o r t F a c i l i , L 0 6 S . L n 3 9 40 S S 7 , L n 7 5 * L n 4 0 41 ~ ~ 1 ~ 1 42 D i r e c t A s s i g n m e n t D i r e 43 T O T A L R E N T R E V E N U E S L n 2 6 . . 4 2 I I N 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 I 44 I T e A m o r t i z a t o n . F e d e r a l l n 4 4 * 1 45 I T e A m o r t i z a t o n . s t l n 4 5 a . 1 46 T O T A L I T C A M O R T I Z T I O N L n 4 4 . . 4 5 Ln 2 6 ' 6 lo 2 7 a r y ln 2 8 a * 8 ln 2 9 a . - Ln 3 0 a . 1 0 Ln 3 1 a . 1 1 Ln 3 2 a * 1 , D i r e c t 47 A m o r t i z o n o f E x c e s s D e f T a x e s lo 4 7 a . 1 48 C e p i t W z e d P a y r o l l T a x 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 Ln 4 8 a * 1 Dir e c t Ln 4 6 . . 4 9 51 D e p r e c i a t i o n A d j u s t m e n t S2 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 U S T M E N T S ln S 1 a . 1 Dir e c t ln S 1 . . 5 2 54 U n c o l l e c t b l e s . J o i n t M e s s a g e 55 U n c o H e c t b l e s . E n d U s e r e e i 56 U n c o D e c t b l e s . I n t e r e h a n g e C a n i e r 57 T O T A L U N C O L L E C T I B L E S Dir e c t Di r e Di r e ln 5 4 . . 5 6 58 M i s e I n c A d j u s t e n t s 59 I n c A d j A 1 l o c o n 2 0 0 1 60 I n c A d j A 1 l o c o n 2 0 0 1 - D i r e A s s i g n m e n t 61 I n c A d j A 1 l o c o n B i g 3 E x p 62 I n c A d j A 1 l 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 e I N C A D J U S T M E N T S Ln 5 9 a . 1 Dir e c t Ln 6 1 a ' * 1 3 Dir e c t Ln 5 9 . . 6 1 Pro p r i e t a r y I n f o r m o n 2/ 1 5 / 2 0 0 8 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 8-1 0 TO T A L CO M P A N Y MS G PL MS G PL MS G PL MS G PL De f i n e d . b c d . n h i k 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2. 5 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2. 5 0 6 5 % 23 . 8 S 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % 10 0 . 0 0 0 0 % 46 . 9 0 3 2 % 6.2 1 0 0 % 1.4 4 7 1 % 2. 6 1 8 2 % 19 . 7 0 8 7 % O.3 n 7 % 0.8 5 7 0 % 21 . 8 7 8 1 % 10 0 . 0 0 0 % 38 . 1 0 7 4 % 3.8 3 7 0 % 1.6 4 7 5 % 2.5 8 2 2 % 24 . 5 1 1 0 % 0. 4 5 5 6 % 1. 4 8 1 2 % 27 . 3 7 8 2 % 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2.5 0 6 5 % 23 . 6 5 3 1 % 0. 4 7 3 1 % 1. 3 5 0 2 % 25 . 7 3 3 9 % 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % 2.9 7 0 0 % 15 . 0 0 0 0 % 10 0 . 0 0 0 0 % 34 . 0 0 8 9 % 15 . 9 7 2 8 % 1. 1 0 8 1 % 2.6 4 8 1 % 25 . 5 4 5 3 % 0.6 7 4 5 % 0.9 3 2 6 % 19 . 1 0 9 8 % 10 0 . 0 0 0 % 31 . 9 2 5 3 % 3.3 9 9 % 1. 4 9 5 9 % 2.9 6 0 3 % 28 . 0 6 2 % 0.5 0 5 0 % 1.7 4 6 8 % 29 . 9 0 4 10 0 . 0 0 0 % 38 . 9 5 1 3 % 5. 5 2 1 1 % 1. 6 1 0 8 % 2.5 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % 10 0 . 0 0 0 0 % 43 . 9 6 3 % 6.5 5 3 3 % 1.5 2 7 1 % 2.7 6 2 9 % 20 . 7 9 8 1 % 0.3 9 8 5 % 0. 9 0 4 % 23 . 0 8 7 4 % 21 7 , 9 4 9 83 , 0 5 5 8,3 6 3 3,5 9 1 5,6 2 8 53 , 4 2 1 99 3 3,2 2 8 59 , 6 7 0 21 7 , 9 4 9 83 , 0 5 5 8, 3 6 3 3,5 9 1 5,6 2 8 53 , 4 2 1 99 3 3,2 2 8 59 , 6 7 0 Mo s s A d a m s , L l P Ve r a i o n 3 . 13 o f 2 3 Pr o p r i e t a r y I n f o r m o n Mo s s A d a m s , L L P V.l S n 3 . 2 14 o f 2 3 21 1 5 1 0 8 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t Stu d y A r e a : 4 7 2 2 2 6 PL A N T N O N S P E C I F I C E X P E N S E S 8- 1 2 Stu d y Y e s r : 2 0 0 8 TO T A L CO P A N Y MS G PL MS G PL MS G PL MS G PL LI N E DE S C R I P T I O N SO U R C E . b c d . h AR A T I O N S A C T O R S 1 2 0 0 1 T P I S D I s t r ,L n 1 5 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2. 5 0 5 % 23 . 8 5 3 1 % 0. 4 7 3 1 % 1. 3 5 0 2 % 25 . 7 3 3 9 % 2 T o t a l c e E , l O T , C & W F D l s t r ,L n 7 + 9 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2.5 0 6 5 % 23 . 8 5 3 1 % 0. 4 7 3 1 % 1. 3 5 0 2 % 25 . 7 3 3 9 % 32 1 1 0 S u p p o r t A s s e t s D i s t ,L n 9 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 25 0 6 5 % 23 . 8 5 3 1 % 0. 4 7 3 1 % 1. 3 5 0 2 % 25 . 7 3 3 9 % 42 2 1 0 C O e o o i M h i n g D i s t r ,L n 4 9 10 0 . 0 0 0 0 % 82 . 0 3 0 % 2.9 7 0 0 % 15 . 0 0 0 0 % 5 2 2 c o e - c p e r a r D i s l r ,L n 2 4 6 2 2 3 0 C O E - T r a n s m i s s i o n D i s t r ,L n n 10 0 . 0 0 0 0 % 34 . 0 0 8 9 % 15 . 9 7 2 8 % 1.1 0 8 1 % 2.6 4 8 1 % 25 . 5 4 5 3 % 0. 6 7 4 5 % 0. 9 3 2 % 19 . 1 0 9 8 % 72 3 1 0 l O T O l s t r ,L n 1 2 82 4 1 0 C & W F D i s t r ,L n 4 3 10 0 . 0 0 0 0 % 31 . 9 2 5 3 % 3.3 9 6 9 % 1.4 9 5 9 % 2.9 6 0 3 % 28 . 0 6 5 2 % 0.5 0 5 0 % 1.7 4 6 8 % 29 . 9 0 4 6 % 9 2 0 0 2 P r o p H i d F t T e l U s e O i s t r ,L n 7 10 2 6 8 0 C a p i t l L e a s e s D l s t r ,L n 1 9 11 2 6 8 0 L e a s e h o l d I m p r o e m e n t s O l s t r ,L o 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 t r ,L n 3 6 13 2 0 0 5 T e l e c o m Pit Ad j u s t m n t 1,L n 1 5 PL A T N O N S P E C I F I C E X P S E P A R A T I O N 14 6 5 1 0 O t h P r o p P l a n t & E q E x p Ln 1 4 a " ' 1 15 Dir e c t A s s i g n m e n t Dir c t 16 T O T A L O T H P R O P P L A N T & E O E X P Ln 1 4 . . 1 5 17 6 5 3 0 N e t w r k O p e r a i o n s E x p Ln 1 7 a " ' I 35 , 4 0 ~ I 13 , 7 9 0 1, 9 5 : I 57 0 :1 68 7 :1 8,4 4 4 16 ~ I 47 8 9,1 1 0 18 Dir e c t A s s i g n m e n t Di r e 19 T O T A L N E T W K O P E R A T I O N S E X P Ln 1 7 . . 1 8 35 , 4 0 2 13 , 7 9 0 1,9 5 5 57 0 86 7 8,4 4 4 16 7 47 8 9,1 1 0 20 6 5 4 A c s E x p e n s e s 21 Ac s E x p e n s e x J e d e r a S u p p o r t Dir e c t 22 Fe d e r a l S u p p o r t Dir e c t 17 , 7 4 4 1 17 , 7 4 4 23 T O T A L A C C E S S E X P E N S E S Ln 2 1 . . 2 2 17 , 7 4 4 17 , 7 4 4 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 3'7 ~ 1 :1 :1 32 ~ I 25 De p r - S u p p o r t A s t s Ln 2 5 a " ' 3 66 , 7 5 ~ I 26 , 7 8 0 1,1 0 7 1,7 2 3 16 , 3 9 9 92 8 17 , 6 9 3 26 De p r . S u p p o r t A s t s - D i r e c t A s s i g n m e n t Dir e c t 27 De p r . C O E - 8 i n g Ln 2 7 a " ' 4 63 , 8 2 5 52 , 3 5 6 1,8 9 6 9, 5 7 4 28 De p r . C O E . . w i h l n g - D i r e c t A s s i g n m e n t Dir e c t 29 De p r - C O E - p e r a r Ln 2 9 a " ' 5 30 De p r - C O E . . r a r - D i r e c t A s s i g n m e n t Dir e c t 31 De p r - C a E - T r a n s m i s s i o n Ln 3 1 a " ' 1 13 1 , 6 1 0 1 44 , 7 5 9 21 , 0 2 1 1,4 5 8 .1 3, 4 8 5 -I 33 , 6 2 0 88 8 1 1,2 2 7 25 , 1 5 0 32 Oe p r - C O E - T r a n s m i s s i o n - D i r e A s s i g n m e n t Dir e c t 33 De p r - I n f o O r i g I T e r m E q u i p Ln 3 3 a " ' 7 34 Oe p r - I n f o O r i g I T e r m E q u i p - D i r e c t A s i g n m e n t Dir e c t 35 De p r . C a b l e & V I r e F a c i i t e s Ln 3 5 a " ' 1 25 2 , 5 0 9 1 80 , 6 1 4 8, 5 7 8 1 3,7 7 7 -I 7, 4 7 5 -I 70 , 8 6 7 1, 2 7 5 1 4, 4 1 1 75 , 5 1 2 36 De p r . C a b l e & W r e F a c i l i t e s - D i r e c t A s s i g n m e n t Dir e c t 37 Oe p r . . r o p H i d F t T e l U s e Ln 3 7 a " ' 9 38 Am o r t - C a p l t l L e a s e s Ln 3 8 a " ' 1 0 39 Am o - L e a s e h o l d I m p r o m e n t Ln 3 9 a " ' 1 1 40 Am o r t - I n t a n g i b l e A s Ln 4 0 a " ' 1 2 41 Am o r - o h e r Ln 4 1 a " ' 1 3 42 Am o i - D i r e A s s i g n m e n t Di r e 43 T O T A L D E P R & A M O R T E X P E N S E S Ln 2 5 . . 4 1 1 51 6 ' 6 9 6 1 20 4 , 5 0 9 33 ' 3 9 5 1 8,2 3 9 ;1 12 , 6 8 3 ;1 12 0 , 8 8 7 2'4 8 8 1 6, 5 6 12 7 , 9 2 8 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 Ln 1 6 + 1 9 + 2 3 + 4 3 56 9 , 8 4 2 23 , 0 4 2 35 , 3 5 0 8,8 0 9 13 , 5 7 1 12 9 , 3 3 1 2,6 5 6 7,0 4 4 13 7 , 0 3 45 D i s t r b u t o n o f L i n e 3 9 Ln 4 4 1 4 4 a 10 0 . 0 0 0 % 41 . 4 2 2 4 % 6.2 0 3 4 % 1.5 4 5 9 % 2.3 8 1 5 % 22 . 6 9 6 0 % 0.4 6 0 % 1.2 3 6 2 % 24 . 0 4 5 % Pr o p r i e t a r y I n f o r m o n Mo s s A d a m s , L L P Ve r s n : U 15 o f 23 21 1 5 1 2 0 0 8 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t stu d y A r e a : 4 7 2 2 2 6 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 Stu d y Y e a r ; 2 0 0 8 MS G PL MS G PL MS C LI N E DE S C R I P T I O N SO U R C g SE P A R A T I O N S F A C T O R S 1 1 M a r k e t i n g e x p e n s e f a c t r Re c o r d s 2 W S T e l O p e r S v Re c o r d s 10 0 . 0 0 0 0 % 3 S u b s c r i b e r L i n e M O U Re c o r d s 10 0 . 0 0 0 0 % 3O ' 6 2 9 0 % ~ 0.9 9 0 0 % 2.1 6 0 0 % 20 . 8 1 7 0 % ~ 45 . 4 0 4 0 % 4 E U S e r v c e O r d e r C o n t c t Re c r d s 10 0 . 0 0 0 0 % 27 . 0 0 0 0 % - 11 . 5 0 0 0 % 11 . 5 0 0 0 % ~ 50 . 0 0 0 0 % 5 E U B i l l e d R e v e n u e j n e l e e i Re c o r d s 10 0 . 0 0 0 0 % 31 . 1 3 9 6 % - 2.3 9 4 0 % 31 . 6 7 8 7 % - 34 . 7 8 9 7 % 6 E U B U i e d I n q u i r y C o n t c t s Re c o r d s 10 0 . 0 0 0 0 % 25 . 0 0 0 0 % - 17 . 5 0 0 0 % 17 . 5 0 0 0 % - 40 . 0 0 0 0 % 7 I X B v e O r d P r o e C o n t c t Re c r d s 10 0 . 0 0 0 0 % 50 . 0 0 0 0 % 8 I X B i l l e d R e v e n u e Re c o r d s 10 0 . 0 0 0 0 % 50 . 0 0 0 % 9 i x B i l l I n q C o n t c t s Re c o r d s 10 0 . 0 0 0 0 % 50 . 0 0 0 0 % 10 P u b l i c I n t r e s t P a v s t t i o n R e v n u e Re c o r d s 'A R A T I O N 1 Ln 1 1 a + 1 Dir e A s s i g n m e n t Dir e c t 13 T O T A L M A R K E T I N G E X P E N S E S Ln 1 1 . . 1 2 1 SE R V I C E S E X P E N S E S S E P A R A T I O N 1 14 6 6 2 0 S e r v c e s E x p e n s e s 15 Te l e p h o n e O p e r a t o r S e r i c e : 16 Te l O p e r a r S v Ln 1 6 a * 2 I 3, 1 1 7 17 Dir e c t A s s i g n m e n t Di r e 18 To t l T e l O p e r S v E x p Ln 1 6 . . 1 7 3, 1 1 7 19 Pu b l i s h e d D i r e c t L i s n g s : 20 Cl a s s i f e d Dir e c t 21 TW Di r e 22 Alp h a Ln 2 2 a " ' 23 Fo r i g n Oi r e 24 To t l P u b l O i r e c t L i s Ln 2 0 . . 2 3 25 AU o t e r : 26 Ca t 1 . . B O E E U S v e O r o P r o 27 Pre s u b s c r i p t i o n Di r e c t I 8,0 9 9 1 8, 0 9 9 28 Ot h e r ln 2 8 a " ' 4 24 , 2 9 6 6, 5 6 0 -I -I 2,7 9 4 -I 2,7 9 4 12 , 1 4 8 29 Ca t 1 . o B O E E U P m t & C O L 30 -C i i Di r e 31 -o t e r Ln 2 9 . . . S I 24 , 2 9 1 7, 5 6 -I -I 58 2 -I 7,6 9 6 -I 8,4 5 3 32 Ca t 1 . o B O E E U B i l l l n q 33 -C i i Di r e c t 34 -O t e r Ln 3 2 a * 6 I 24 . 2 9 1 6,0 7 4 -I 'I 4.2 5 2 -I 4,2 S 2 -I 9,7 1 8 35 Ca t 1 . . B O e i x S y e O r d P r o c Ln 3 S a * 7 36 Ca t 1 - L B O E i X P m t & C o l Ln 3 6 a " ' 37 Ca t 1 . . B O E I X B i l l l n q Ln 3 7 a * 9 38 Ca t 1 - L B O E e n c o l & A d m i n Ln 3 8 a * 1 0 39 To t a l C a t 1 . o B O E Ln 2 6 . . 3 8 I 80 . 9 8 7 1 28 . 2 9 9 -I -I 7.6 2 7 -I 14 . 7 4 2 -I 30 , 3 1 9 Pr o p r i e t a r y I n f o n n ö o n Mo s s A d a m s , L L P Ve r s 3,2 16 0 f 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 - 1 0 N E C A F o r e a s t St u d y A r e a : 4 7 2 2 2 6 stu d y Y e a r : 2 0 0 8 MS G LI N E DE S C R I P T I O N SO U R C E b CO 40 R e l a t i v e T o l l & L o c a l M s g s P e Re c o r d s 28 . 4 0 3 0 % 41 C A B S P c t Re c r d s 50 . 0 0 0 0 % SE R V I C E S E X P S E P A R A T I O N C O N T ' D 42 Ca t 2 - C S e M s g P r o c 43 Jo i n t M e s s a g e Ln 4 2 a * 4 0 I 1,9 3 9 1 55 1 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 t h e r B & C 46 Dir e c t A s s i g n m e n t Di r e 34 , 5 7 6 10 , 3 1 2 47 En d U s e r C o m o n L I n e Di r e 1,6 2 0 1, 6 2 0 48 Ca t 2 - C S E C A B S Ln 4 8 a * 4 1 14 , 4 7 1 7,2 3 6 49 To t a l C a t 2 - C S E Ln 4 2 . . 4 8 52 , 8 0 6 19 , 9 1 8 50 To t l A I O t e r C a t 1 & 2 Ln 3 9 + 4 9 13 3 , 7 9 3 48 , 2 1 7 51 Di s t r i b u t o n o f L i n e 5 0 Ln 5 0 1 5 0 a 10 0 . 0 0 0 0 % 36 . 0 3 8 4 % 52 Ca t 3 - 1 o t h e r C S E Ln 5 2 a * 5 1 53 Ca t 3 - D i r c t A s s i g n m e n t Dir e c t 1, 1 6 8 1,1 6 8 54 To t a l A U O t e r C a t 3 Ln 5 2 . . 5 3 1, 1 6 8 1,1 6 8 55 To t l A I O t e r - C a t 1 , 2 , 3 Ln 5 0 + 5 4 13 4 , 9 6 1 49 , 3 8 5 56 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 + 5 5 13 8 , 0 7 6 49 , 3 8 5 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 13 8 , 0 7 8 49 , 3 8 5 56 Dis t r i b u t n o f L i n e 5 7 Ln 5 7 / 5 7 a 10 0 . 0 0 0 0 % 35 . 7 8 5 9 % 2/1 5 1 0 0 8 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 Pr o p r i e t a r y I n f o r m a o n 38 1, 3 5 0 12 , 1 3 2 12 , 1 3 2 3,6 1 8 3,6 1 8 3,6 5 6 17 , 1 0 0 12 , 1 3 2 11 , 2 8 3 31 , 8 4 2 42 , 4 5 1 8. 4 3 3 5 % 23 . 7 9 9 % 31 . 7 2 8 8 % 11 , 2 6 3 31 , 8 4 2 42 , 4 5 1 11 , 2 8 3 34 , 9 5 9 42 , 4 5 1 11 , 2 8 3 34 , 9 5 9 42 , 4 5 1 8.1 7 1 7 % 25 . 3 1 8 2 30 . 7 4 4 1 % Mo s s A d a m s , L L P Ve t s l ø 3 . 2 17 0 1 2 3 Mi d v l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t std y A r e a : 4 7 2 2 2 6 St u d y Y e a r : 2 0 0 8 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 t r 3 E q u a l A c c e s s I n v e s t D i s t r 4 N e t Te l e c o m P l a n t D i s t r e x d 1 2 2 0 , E A 5 I n c o m e T a x D I s t b u t o n CO R P O R A T E O P E R E X P S E P A R A T I O N S 66 7 1 0 E x e c & P l a n n i n g E x p e n s e s 7 E A S 8 A l l Oth e r 9 D i r e 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 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 U Ot 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 ~A f l ö N S 18 19 F e d è r a l l n c o m e T a x e s 20 S t e & L o c l In c o m e T a x e s 21 O P F E O , S T A T E , L O C A L T A X E S - C W 22 F I T A H o n c e s l s a l l o w a n c e s No t 1: FI T a n d S I T C a l c u l a e d o n t h e 8 - 1 Pr o p r i e t a r y I n f o r m a o n 21 1 5 1 0 0 8 CO R P O R A T E O P E R A T I O N S , T A X E S , & E Q U A L A C C E S S E X P E N S E S TO T A L MS G I n t e n A T A P L CO M P A N Y MS G PL SO U R C E (e l fb i le I 1.' ,L n 6 10 0 . 0 0 0 0 % 43 . 9 6 8 3 % 8.5 5 3 3 % 1.5 2 7 1 % ,L n 1 5 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.8 1 0 8 % ,L n 2 8 - ,L n 3 7 10 0 . 0 0 0 0 % 38 . 1 2 6 2 % 3.8 3 8 3 % 1.6 4 7 9 % 8- L n 2 7 10 0 . 0 0 0 0 % 43 . 3 8 6 3 % 6.1 6 7 9 % 1.5 2 7 7 % I Dir e c t - Ln 8 a * 1 16 9 , 5 0 4 74 , 5 2 8 11 , 1 0 8 2,5 8 9 Di r e Ln 7 . . 9 16 9 , 5 0 4 74 , 5 2 8 11 , 1 0 8 2,5 8 9 Dir e c t Ln 1 3 e ' 1 28 0 , 8 9 2 12 3 , 5 0 4 18 , 4 õ á ~~ 4 , 2 9 0 Di r e c t 24 , 8 9 6 24 , 8 9 6 Ln 1 2 . . 1 4 30 5 , 7 8 8 14 8 , 3 9 9 18 , 4 0 8 4, 2 9 0 Ln 1 0 + 1 5 47 5 , 2 9 2 22 , 9 2 7 29 , 5 1 6 8, 8 7 8 Ln 1 6 J 1 6 a 10 0 . 0 0 0 0 46 . 9 0 3 2 % 8. 2 1 0 0 % 1.4 4 7 1 % Ln 1 9 a * 5 12 , 8 0 0 5, 5 5 3 78 9 19 6 Ln 2 0 a ' " S 4,7 1 0 2, 0 4 29 1 72 17 , 5 1 0 7, 5 9 7 1,0 8 0 26 8 Ln 2 2 a " 2 30 , 0 0 1 1,6 5 6 23 O p e r a n g T a x e s - P r o p e r t L n 2 3 a " 2 24 O p e r a t i n g T a x e s - o t h e r L n 2 4 a * 2 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 D i r e 26 T O T A L O P E R T A X E S x l I T , S I T L n 2 3 . . 2 5 I O P 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 I 27 5 0 0 0 B a s i c L o c l R e v e n u e D i r e 28 5 0 8 0 I n t e r s a t e A c s s n d U s e r R 8 Y n u e D i r e 29 5 0 8 4 S t a A c c e s s J E n d U s e r R e v n u e D i r 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 n u e D i r e 31 5 2 0 0 M i s c l l a n e o u s O p e r a t i n g R e v n u e D i r e 32 7 1 0 0 o t h e r O p e r a i n g I n c o m e D i r e 33 T O T A L O P E R A T I N G R E V E N U E L n 2 7 . . 3 2 I E Q U A L A C C E S S E X P E N S E S S E P A R A T I O N I 34 E q u a l A c c s s E x p e n s e s L n 3 4 a * 3 3S T O T A L E Q U A L A C C E S S E X P E N S E S L n 3 4 . . 3 4 I A L L O W A N C E S A N D D I S A L L O W A N C E S I 36 E x p e n s e A l l o w a n c e s l D i s a H o w a n c e s 37 I n t r e s t o n C u s t m e r D e p o s i t 38 o t h e r I n t e r e s t D e d u c t i o n 39 D i r e 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 / D I S A L L O W A N C E S 11 , 6 8 66 9 30 , 6 7 0 66 12 , 3 5 5 1,8 5 8 Ln 3 7 s " ' 4 Ln 3 7 a ' " 4 Dir e c t Ln 3 7 . . 3 8 48 3 48 3 6-1 4 Ih l m 2.7 6 2 9 % 20 . 7 9 8 1 % 0.3 9 8 5 % 0.9 0 4 % 23 . 0 8 7 4 % 2. 5 0 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 2 % 25 . 7 3 3 9 % 2.5 8 1 1 % 24 . 5 0 0 2 % 0.4 5 5 4 % 1. 4 8 0 4 % 27 . 3 7 0 5 % 2.6 3 3 0 % 21 . 3 7 1 2 % 0.4 1 5 4 % 1. 0 2 3 8 % 23 . 4 7 _ ii I i 4, 8 8 3 35 , 2 5 4 67 6 1,5 3 3 39 , 1 3 4 4, 6 8 3 35 , 2 5 4 67 6 1,5 3 3 39 , 1 3 4 7, 7 6 1 58 , 4 2 0 1,1 1 9 2, 5 4 0 64 , 8 5 1 7, 7 6 1 58 , 4 2 0 1,1 1 9 2,5 4 0 64 , 8 5 1 12 , 4 4 4 93 , 6 7 4 1,7 9 5 4,0 7 3 10 3 , 9 8 5 2. 6 1 8 2 % 19 . 7 0 8 7 % 0.3 7 7 7 % 0. 8 5 7 0 % 21 . 8 7 8 1 % 33 7 2,7 3 6 53 13 1 3,0 0 5 12 4 1,0 0 7 20 48 1,1 0 6 46 1 3,7 4 2 73 17 9 4,1 1 0 75 2 -I 7,1 5 6 14 2 40 7,7 2 0 75 2 -I 7,1 5 6 14 2 40 5 7,7 2 0 Mo s s A d a m s , L L P V. r a 3 . 2 18 o f 2 3 21 1 5 1 2 0 0 8 Mi d v a l e T e l e p h o n e E x c h a n g e ~ 1 0 N E C A F o r e c a s t Stu d y A r e a : 4 7 2 2 2 RE S E R V E S & D E F E R R A L S S.1 5 St u d y Y e a r : 2 0 0 8 Sh e e t 1 o f 2 TO T A L CO M P A N Y MS G PL 1 MS G PL LIN E DE S C R I P T I O N SO U R C E . SE P TI O N F A C O R S 1 2 1 1 0 S u p p o r t A s s e t s O i s t r ,L n g 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2. 5 0 5 % 23 . 8 5 3 1 % 0. 4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % 2 2 2 1 0 C O E - 8 w i l C h i n g , i n e l . E A D i s t r S- , L n 3 7 + s . , L n 10 0 . 0 0 0 % 82 . 0 3 0 0 % 2.9 7 0 0 % 15 . 0 0 0 0 % 3 2 2 2 0 C O E . . p e r a r O l s t r ,L n 2 4 42 2 3 0 C a E - T r a n s m i s s i o n O i s t ,L n 7 7 10 0 . 0 0 0 0 % 34 . 0 0 8 9 % 15 . 9 7 2 8 % 1.1 0 8 1 % 2.6 4 8 1 % 25 . 5 4 5 3 % 0. 6 7 4 5 % 0.9 3 2 % 19 . 1 0 9 8 % 5 2 3 1 0 l O T D i s t r ,L o 1 2 62 4 1 0 C & W F D i s t r ,L n 4 3 10 0 . ~ ~ % 31 . 9 2 5 3 % 3.3 9 6 % 1.4 9 5 9 % 2.9 6 0 3 % 28 . 0 6 5 2 % 0.5 0 5 0 % 1.7 4 6 8 % 29 . 9 0 4 6 % 7 2 0 0 1 T P I S x l L n d ,L n 1 8 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5. 5 2 1 1 % 1.6 1 0 8 % 2.5 0 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1. 3 5 0 % 25 . 7 3 3 9 % 8 G e n e r a l S u p p o r c e E , l O T , C & \ N ,L n 1 + 8 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5. 5 2 1 1 % 1.6 1 0 8 % 25 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % 92 0 0 2 P r o p H i d F t r T e l U s e O i l ,L n 7 10 2 6 8 0 C a p t i a l L e a s e s O i s t ,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 s ,L n a O 12 2 6 9 0 I n t a n g i b l A s s e D l s t r ,L n 3 6 13 2 0 0 5 T e l e c o m P i t A d j u s t m e n t I,L n 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 o t e r J u r i s A s s e t s ~ N e t Dir e c t 15 3 1 0 0 A c e u m D e p r ~ T e l P i t i n S v e 16 Su p p o r t A s s e t Ln 1 6 a * 1 I 1'3 6 . 3 9 6 1 53 3 , 3 9 7 75 , 6 0 ~ 1 22 , 0 5 8 :1 34 , 3 2 4 :1 32 , 6 4 3 6,4 7 ~ I 18 , 4 9 0 35 2 , 3 9 9 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 18 CO E - 8 Y A e h i n g Ln 1 8 a ' * 1,1 7 0 , 1 8 9 95 9 , 9 0 6 34 . 7 5 5 17 5 , 5 2 8 19 CO E ~ S v . h i n 9 . D i r e c t A s s l g n m e n t Dir e c t 20 CO E ~ O p e r a r Ln 2 0 a * 3 21 CO 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 Di r e 22 Ca E - T r a n s m i s s i o n Ln 2 2 a * 4 1 2,3 9 7 , 5 9 9 1 61 5 , 3 9 6 38 2 , 9 6 3 1 26 , 5 6 9 ., 63 , 4 9 0 .1 61 2 . 4 7 5 16 , 1 7 2 1 22 , 3 5 9 45 8 , 1 7 5 23 Ca E . T r a n s m l s s l n . D i r e A s s i g n m e t Dir e c t 24 In f o O r t g l e r m E q u i p Ln 2 4 a . 5 25 In f o O r i g I e r E q u i p - D i r e c t A s s i g n m e n t Dir e c t 26 C& W F Ln 2 6 * 6 I 4. 9 1 9 , 6 7 ~ I 1, 5 7 0 , 6 2 3 18 7 , 1 1 ~ I 73 , 5 9 5 :1 14 5 , 6 3 5 :1 1, 3 8 0 , 7 1 5 24 . 8 4 1 85 , 9 3 7 1,4 7 1 , 2 0 8 27 C& W F - D i r e A s s i g n m e n t Di r e 28 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 9.8 5 . 8 5 9 3,8 7 9 , 3 2 2 62 5 , 6 8 7 15 6 , 9 7 6 24 3 , 4 4 9 2,3 1 9 . 8 3 3 47 , 4 9 5 12 6 , 7 8 6 2,4 5 7 , 3 1 0 29 3 2 0 0 A c m C a p r P r o p e r t H e l d 30 Fo r F u t r e T e l e c o m U s e Ln 3 0 a * 9 31 3 4 0 0 A c m A m o r t - C a p l l L e a s e Ln 3 1 a * 1 0 32 3 4 0 0 A e u m A m r t . . e a s e h o l d I m p r o m e n t Ln 3 2 a . 1 1 33 3 5 0 0 A e c u m A m o r t - l n t n g i b l e Ln 3 3 . 1 2 34 3 6 0 A c c m A m o r t . . e r Ln 3 4 a . 1 3 35 4 0 4 0 C u s t o m e r D e p o i t Ln 3 5 a * 1 i ~~ i 15 6 :1 6 :1 10 :1 95 ;1 5 10 3 36 Di r 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 ~O 15 6 6 10 95 5 10 3 38 4 1 0 0 N e t Cu r Oe f O p I n c T a x e s 39 Su p p o r t A s e t s Ln 3 9 a . 1 ~ CO E . . w i h i n g Ln 4 0 a ' * 41 CO E . . p e r a r Ln 4 1 a . 3 42 CO E . T r a n s m i s s i o n Ln 4 2 a * 4 43 In f o O r i g l e m i 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 d b y A c Ln 4 5 a * 8 46 T O T A L N E T C U R O E F O P I N C T A X E S Ln 3 9 . . 5 Pr o p r i e t r y I n f o r m a t i o n Mo s s A d a m s , L L P V. n i 3 . 2 19 0 f 2 3 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t stu d y A r e a : 4 7 2 2 2 6 stu d y Y e a r : 2 0 0 8 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 o l t A s s e b D i s t r 49 2 2 1 0 C O E - 8 i M h i n g D i s t 50 2 2 0 C O E - Q p e r a r D i s t r 51 2 2 3 0 C O E ~ T r a n s m i s s i o n O i s t r 52 2 3 1 0 l O T D i s t r 53 2 4 1 0 C & I N D i s t 54 2 0 0 1 T P I S x A . a n d 55 2 0 0 1 T P I S D i s t r 56 2 0 0 1 T P I S D i s t r 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 o t e r L o n g ~ T e n n L i a b i l i t 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 s 60 C O E . s Y J t e i n g 61 C O E - O p e r a t 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 e i m E q u i p 64 C & W F 65 N o t C l a s s i f i d b y A c e t 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 t h e r D e f r r d C r e d i t N e t ,L n 6 ,L n 9 ,L n 2 ,L n 2 4 ,L n n ,L n 1 2 ,L n 4 3 ,L n 1 8 ,L n 1 5 ,L n 1 + 8 Ln 5 7 a ' " 4 7 Ln 5 9 a ' " 4 8 Ln 6 0 a ' " 4 9 Ln 6 1 a ' " 5 0 Ln 6 2 8 ' " 5 1 Ln 6 3 a ' " 5 2 Ln Ø 4 8 ' " S 3 Ln 6 S a ' " 5 4 Ln S S . . 5 S Ln 6 7 a ' " 5 S 68 4 3 7 0 o t h e r J u r i U a b i l i e s 69 & D e f e r r d C r e i t ~ N e t D i r e c t I A C C U M D E P R & A M O R T A L L O W I D I S A L O W I 70 A c c u m D e p r & A m o r t A l l o w l i s a l o w L n 7 0 a ' " 5 4 71 D i r e c t A s s i g n m e n t D i r e c t 72 T O T A L A C C O E P R / A M O R T A l W I I S A L L O W L n 7 0 . . 7 1 Pr o p r i e t a i y I n f r m a t o n SO U R C E RE S E R V E S & D E F E R R A L S TO T A L CO M P A N Y MS G PL PL PL . b c 10 0 . 0 0 0 0 % 43 . 9 6 6 3 % 6.5 5 3 3 % 1.5 2 7 1 % 2.7 6 2 9 % 20 . 7 9 6 1 % 0. 3 9 8 5 % 0. 9 0 4 % 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % S.5 2 1 1 % 1.6 1 0 8 % 2.5 0 6 5 % 23 , 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % 2.9 7 0 0 % 10 0 . 0 0 0 0 % 34 . 0 0 8 9 % 15 . 9 7 2 8 % 1. 1 0 8 1 % 2.6 4 8 1 % 25 . 5 4 5 3 % 0.6 7 4 5 % 0.9 3 2 6 % 10 0 . 0 0 0 0 % 31 . 9 2 5 3 % 3.3 9 6 9 % 1. 4 9 5 9 % 2. 9 6 0 3 % 28 . 0 6 5 2 % 0.5 0 5 0 % 1. 7 4 6 % 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1. 6 1 0 8 % 2. 5 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1. 6 1 0 8 % 2. S 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1. 6 1 0 8 % 2.5 0 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 2/1 5 / 2 0 0 8 8- 1 5 30 1 , 2 7 1 30 1 , 2 7 1 7,5 5 1 7,5 5 1 1, 4 2 5 1, 4 2 5 71 , 8 6 2 71 , 8 6 2 11 7 , 3 4 9 11 7 , 3 4 9 16 , 6 3 3 16 , 6 3 3 4,8 5 3 4,8 5 3 23 . 8 7 4 % 25 . 7 3 3 9 % 15 . 0 0 0 0 % 19 . 1 0 9 8 % 29 . 9 0 4 6 % 25 . 7 3 3 9 25 . 7 3 3 9 % 25 . 7 3 3 9 % 4, 0 6 4,0 6 8 77 , S 2 9 77 , 5 2 9 Mo s s A d a m s , L L P Ve r s n 3.2 20 o f 2 3 Pr o p r i e t a r y I n f o r m t i o n Mo s s A d a m s , L L P Ve n i n 3 . 2 21 o f 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 N E C A F o r e c a s t 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 8 LN DE S C R I P T I O N 1 A V E R A G E N E T I N V E S T M E N T 2 A S S U M E D R A T E O F R E T U R N F O R E S T I M A T I N G T A X R A T E 3 R E T U R N O N I N V E S T M E N T 4 F I T I N C O M E A D J U S T M E N T ( F R O M C O S T S T U D Y ) 5 I N V E S T M E N T T A X C R E D I T A M O R T I Z A T I O N 6 A F E R T A X I N C O M E B E F O R E T A X C R E D I T S 7 F I T BE F O R E T A X CR E D I T S ( M U S T E Q U A L L N 1 7 ) 8 T A X B L E I N C O M E 9 F I O N $ 0 t o $ 5 0 , 0 0 ~ 1 5 % 10 F I T O N $ 5 0 , 0 0 t o $ 7 5 , 0 0 0 ~ 2 5 % 11 F I T O N $ 7 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 ~ 3 4 % 12 F I T O N $ 1 0 0 , 0 0 0 t o $ 3 3 5 , 0 0 0 ~ 3 9 % 13 F I T ON $ 3 3 5 , 0 0 to $1 0 , 0 0 0 , 0 0 0 ~ 3 4 % 14 F I T O N $ 1 0 , O o o , 0 0 0 t o $ 1 5 , 0 0 0 , 0 0 0 i i 3 5 % 15 F I T O N $ 1 5 , 0 0 0 , 0 0 0 t o $ 1 8 , 3 3 3 , 3 3 3 0 3 8 % 16 F I T O N O V E R $ 1 8 , 3 3 3 , 3 3 3 ( l 3 5 % 17 T O T A L T A X B L E I N C O E I I T B E F O R E T A X C R E D I T S 18 E F F E C T I V E F I T T A X R A T E Pr o p r i e t a r y I n f o r m a o n SO U R C E ,lJ 1 ,L n 4 Ln 1 a * 2 15 % 25 % 34 % 39 % 34 % 35 % 38 % 35 % LN s 9 . . 1 6 Ta x a b l e TO T A L 5,0 3 6 , 0 9 4 8.2 4 8 1 % 41 5 , 3 8 0 21 7 , 9 4 9 19 7 , 4 3 1 10 1 , 7 0 7 29 9 , 1 3 8 50 , 0 0 0 25 , 0 0 0 25 , 0 0 0 19 9 , 1 3 8 29 9 , 1 3 8 TA X FO R M IN C O M E TA X TO T A L I S u r T a x 99 , 9 1 4 33 . 4 0 0 % 21 1 5 1 0 0 8 8- 1 7 7, 5 0 0 6,2 5 0 8,5 0 0 77 , 8 8 4 5,0 0 0 11 , 7 5 0 16 , 7 5 0 10 0 , 0 0 0 55 0 , 0 0 0 Mo s s A d a m s , L L P Ve n i n 3 . 2 22 o f 2 3 2/1 5 / 2 0 0 8 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 N E C A F o r e c a s t stu d y A r e a : 4 1 2 2 2 6 DI S T R I B U T I O N R A T I O S F O R R A T E B A S E A N D E X P E N S E S 8- 1 8 stu d y Y e a r : 2 0 0 8 AJ I I MS G PL PL MS G PL AL L O C A T I O N R A T I O S I Ca t e a o r v To t l Ib l le I (Q I (h I (l Ca p i t a l In v e n t S u m m i r , Ge n e r a l S u p p o r t F a c i l i t e s 21 1 0 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2.5 0 6 5 % 23 . 8 5 3 1 % 0. 4 7 3 1 % 1.3 5 2 % 25 . 7 3 3 9 % CO E S w i i n g E q u i p m e n t 22 1 0 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % 2. 9 7 0 0 % 15 . 0 0 0 0 % Op e r a r S y s t e m s E q u i p m e n t 22 2 CO E T r a n s m i s s i o n E q u i p m e n t 22 3 0 10 0 . 0 0 0 0 % 34 . 0 0 8 9 % 15 . 9 7 2 8 % 1.1 0 8 1 % 2.6 4 8 1 % 25 . 5 4 5 3 % 0. 6 7 4 5 % 0.9 3 2 6 % 19 . 1 0 9 8 % In f o r m a t i o n O n g f T e r m E q u i p m e n t 23 1 0 Ca b l e & W i r e F a c i l t i e s 24 1 0 10 0 . 0 0 0 0 % 31 . 9 2 5 3 % 3.3 9 6 9 % 1.4 9 5 9 % 2.9 6 3 % 28 . 0 6 5 2 % 0.5 0 5 0 % 1.7 4 6 8 % 29 . 9 0 4 6 % Ta n g i b l e A s s e t s 26 8 0 In t a n g i b l A s s e t s 26 9 0 To t a l P l a n t i n S e r v i c e A l 2 0 0 1 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1. 6 1 0 8 % 2. 5 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % Pr o p e r t H e l d f o r F u t u r e U s e 20 0 2 Pl a n t U n d e r C o n s t r u c t o n 20 0 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1. 6 1 0 8 % 25 0 6 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1. 3 5 0 % 25 . 7 3 3 9 % Te l e p h o n e P l a n t A d j u s t m e n t 20 0 5 To t l P r o p e r t , P l a n t a n d E q u i p m e n t 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1. 6 1 0 8 % 2. 5 0 6 5 % 23 . 8 5 3 1 % 0.4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % Ac c u m u l a t e d D e p r e i a t o n ~ P l n t i n S e i v i c 31 0 0 10 0 . 0 0 0 0 % 39 . 3 5 % 6. 3 4 7 7 % 1. 5 9 2 % 2.4 6 9 8 % 23 . 5 3 5 2 % 0.4 8 1 8 % 1.2 8 6 3 % 24 . 9 3 0 0 % Ac c u m u l a t e d D e p r e c i a t i o n - P r o p e r t h e l d f o r F u t u r e U s e ) 32 Ac c u m u l a t e d A m o r t a t i o n ~ T a n g j b l e P r o p e r t 34 Ac u m u l a t e d A m o r t i z a t i o n - I n t n g i b l e P r o p e r t 35 0 0 Ac m u l a t d A m o r t i z a t i o n ~ T e l e p h o n e P l a n t A d j u s t m e n t 36 0 De f e r r d O p e r a t i n g T a x e s 43 4 0 1 10 0 . 0 0 0 0 % 1 38 . 9 5 1 3 % 5.5 2 1 1 % 1 1.6 1 0 8 % -I 2.5 0 6 5 % -I 23 . 8 5 3 1 % 0.4 7 3 1 % 1 1.3 5 0 % 25 . 7 3 3 9 % ote r L o n g T e r m L i a b i l i t e s 43 1 0 ote r D e f e r r d C r e d i t s 43 7 0 1 Cu s t o m e r D e p o s i t 10 0 . 0 0 0 0 % i 38 9 5 1 3 % 5.5 2 1 1 % I 1.6 1 0 8 % :1 2. 5 0 6 % :1 23 . 8 5 3 1 % 0.4 7 3 1 % I 1. 3 5 0 2 % 25 . 7 3 3 9 % Ne t T e l e p h o n e P l a n t 10 0 . 0 0 0 0 % 38 . 1 0 7 4 % 3.8 3 7 0 % 1.6 4 7 5 % 25 8 2 2 % 24 . 5 1 1 0 % 0.4 5 5 8 % 1. 4 8 1 2 % 27 . 3 7 8 2 % In v m e n t A l l o w l D i s a l l o w Ac c u m D e p r / A m o r t A l l o w i s a l l o w Ma t e r i a l s a n d S u p p l i e s 12 2 0 1 10 0 . 0 0 0 0 % I 31 . 9 2 5 3 % 3. 3 9 6 % I 1.4 9 5 9 % -I 2.9 6 0 3 % -I 28 . 0 6 5 2 % 0. 5 0 0 % 1 1.7 4 6 8 % 29 . 9 0 4 6 % In v e s b n e n t i n N o n a f f l i a t d C o m p n i e s 14 0 2 Eq u a l A c s s E q u i p m e n t 14 3 9 ot h e r J u r i s d i c t i o n a l A s s t s 15 0 Ca s h W o l 1 i n g C a p i t l xx i 10 0 . 0 0 0 0 % I 44 . 3 1 9 5 % 6.0 9 5 5 % I 1.5 1 1 3 % :1 2.6 7 6 7 % :1 20 . 8 7 4 7 % 0. 3 9 9 2 % 1 0. 9 6 2 % 23 . 1 5 9 8 % Ne t T e l e p h o n e P l a t , M & S a n d e w 10 0 . 0 0 0 0 % 38 . 3 2 8 9 % 3.9 1 7 4 % 1.6 4 2 6 % 2.5 8 5 6 % 24 . 3 8 1 4 % 0. 4 5 3 5 % 1.4 6 2 7 % 27 . 2 2 7 9 % Op e i n g E X p e M e a n d T a x e s S u m m a r ) Ne t w S u p p o r t 61 1 0 Ge n e r a l S u p p o r t 61 2 0 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2.5 0 5 % 23 . 8 5 3 1 % 0. 4 7 3 1 % 1. 3 5 2 % 25 . 7 3 3 9 % Ce n t r l Of c e 62 1 0 10 0 . 0 0 0 0 % 52 8 2 2 % 9.7 1 4 9 % 1.8 3 7 6 % 1.6 1 0 6 % 15 . 5 3 7 0 % 0. 4 1 0 2 % 0.5 8 7 2 % 17 . 4 9 9 6 In f o n n t l o n O n g f T e r m 63 1 0 Ca b l a n d ' W r e F a c i l i t e s 64 1 0 10 0 . 0 0 0 0 % 31 . 9 2 5 3 % 3.3 9 8 9 % 1.4 9 5 9 % 2.9 6 0 3 % 28 . 0 6 2 % 0. 5 0 5 0 % 1.7 4 6 8 % 29 . 9 0 4 Oth e r Pl a n t 65 1 0 Ne t w r k O p e r a o n s 65 3 0 10 0 . 0 0 0 0 % 38 . 9 5 1 3 % 5.5 2 1 1 % 1.6 1 0 8 % 2.5 0 % 23 . 8 5 3 1 % 0. 4 7 3 1 % 1.3 5 0 2 % 25 . 7 3 3 9 % Ac C h a r g e 65 4 Fe d e r a l S u p p o r 65 4 0 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % Ma r k e t i n g 66 1 0 Cu s t o m e r s e r v e 68 10 0 . 0 0 0 0 % 35 . 7 6 5 9 % 8.1 7 1 7 % 25 . 3 1 8 2 % 30 . 7 4 4 1 % Co r p o r a t e O p e r a i o n s - E x e c i v e a n d P l a n n i n g 67 1 0 10 0 . 0 0 0 0 % 43 . 9 6 8 3 % 6.5 5 3 3 % 1.5 2 7 1 % 2.7 6 2 9 % 20 . 7 9 8 1 % 0. 3 9 8 5 % 0. 9 0 4 % 23 . 0 8 7 4 % Co r p o r a t e O p e r a i o n s - G e n e r a l a n d A d m i n i s t r e 67 2 0 10 0 . 0 0 0 0 % 48 . 5 3 0 1 % 6.0 1 9 7 % 1.4 0 2 8 % 2.5 3 7 9 % 19 . 1 0 4 8 % 0.3 6 1 % 0.8 3 0 7 % 21 . 2 0 7 1 1 Su b t l O p e r a o n s E x p e n s e 10 0 . 0 0 0 0 % 43 . 9 1 4 6 % 6.3 9 3 4 % 1.5 1 6 0 % 2.6 4 0 0 % 21 . 5 5 5 % 0. 4 1 1 1 % 0.9 7 7 7 % 23 . 0 9 1 8 % De p r e c i a t i o n a n d A m o r t a t i o n 65 8 10 0 . 0 0 0 0 % 39 . 5 8 0 1 % 6.4 6 3 2 % 1.5 9 5 % 2.4 5 4 7 % 23 . 3 9 6 1 % 0. 4 8 1 5 % 1.2 7 0 9 % 24 . 7 5 8 9 Ot h e r O p e r a n g 72 4 0 10 0 . 0 0 0 0 % 40 . 2 8 2 9 % 5. 0 0 % 1.5 7 5 7 % 2.4 5 1 8 % 23 . 3 3 2 8 % 0. 4 6 2 8 % 1.3 2 0 8 % 25 . 1 7 2 % Eq u a l A c c e s s Fix e d C h a r g e s 75 0 0 10 0 . 0 0 0 0 % 38 . 1 0 7 4 % 3.8 3 7 0 % 1.6 4 7 5 % 2.5 8 2 2 % 24 . 5 1 1 0 % 0. 4 5 5 6 % 1.4 8 1 2 % 27 . 3 7 8 2 % Re n t R e v e n u e 52 4 0 To t a l O p e r a i n g E x p e n s e a n d T a x 10 0 . 0 0 0 0 % 43 . 8 6 0 % 6.3 8 0 6 1.5 1 6 8 % 2.6 3 7 6 % 21 . 0 8 4 7 % 0. 4 1 1 8 % 0.9 8 2 1 % 23 . 1 1 8 5 % No n o p e r a t i n g E x p e n s e 73 7 0 Ab n d o n e d C o n s t r u c t i o n Co n t b u t i o n s Oth e r N o n o p e r a n g AH o n c f o F u n d s U s e d D u r i n g C o n s t r u c t i o n 73 4 0 Ote r I n c o m e A d j u s t e n t s XX X Pr o p r i e t r y I n f o t i o n Mo s s A d a m s , L L P Ve r s 3 . 23 0 f 2 3