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HomeMy WebLinkAbout2009Annual Report.pdf,. Ml:-ò -T. ANNUAL REPORT OF MIDVALE TELEPHONE EXCHANGE, INC. NAME 2205 KEITHLEY CREEK ROAD, MIDVALE, IDAHO ADDRESS TO THE IDAHO PUBLIC UTiliTIES COMMISSION FOR THE YEAR ENDED DECEMER 3 i, 2009 ~~.~~.,~v'~'7~ ct ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31, 2007 COMPANY INFORMATION Exact name of utility: MIDVALE TELEPHONE EXCHANGE Address of principal offce: PO BOX 7, 2205 KEITHLEY CREEK ROAD, MIDVALE, ID 83645 Telephone Number (Area Code_208 355-2211 Cities or towns served: ID-MIDVALE, LAKEVIEW, STANLEY, WARM LAKE, WARREN, YELLOW PINE OREGON-HARPER, JUNTURE, ARIZONA-CASCABEL, YOUNG, MILLSITE, GRANITE MTN. SILVERBELL Name and title of officer having custody of the general corporate books of account: LANE R. WILLIAMS, PRESIDENT Address of office where corporate books are kept and phone number: 2205 KEITHLEY CREEK RD, MIDVALE, ID 83645208355-2211 Organized under the laws of the State of: Idaho Date of organization: 9-Jan-08 Form of organization (proprietorship, association, corporation): Corporation If a Subchapter S Corporation, please specify: Name and address of controlling company, if any: Names of affiliated companies. Give address and description of business: M&L ENTERPRISES, 2205 KEITHLEY CREEK ROAD, MIDVALE, ID 83645 RNS 123 MAIN, WEISER, ID 83672 OFFICERS Report below the title, name and office address of each general offcer of the utility at the end of the year. If there were any changes during the year, show the name, title, and address of the previous officer and the date of change. Title Name Address CEO STEPHEN G. CHILD PO BOX 49, WEISER, ID 83672 PRESIDENT LANE R. WILLIAMS PO BOX 7, MIDVALE, ID 83645 VICE PRESIDENT CONLEY WARD 5208 HOODOO LANE, KUNA, ID 83634 SECITREAS EMMA GROS 1866 S. LINCOLN ST. SALT LAKE CITY, UT 84105 DIRECTOR LINDA KLIND PO BOX 783 MCCALL, ID 83638 JULIANNE JOHNSON WAS REPLACED BY LINDA KLIND 1/1/2009 SHIRLEY ARCHER WAS REPLACED BY EMMA GROSS 5/1/2008 Rev 3102 Page 1 DIRECTORS List the name of each person who was a member of the Board of Directors at any given time during the year: (Fees related to meetings only.) Name and Address LANE R. WILLIAMS CONLEY WARD EMMA GROSS LINDA KLIND STEPHEN CHILD Term Expired or Current Term Wil Expire Meetings Attended This year Fees Paid During Year 1/1/2011 1/1/2012 1/1/2012 1/1/2011 NIA 3 3 3 3 3 50,270 24,270 24,270 24,270 NIA Name of Chairman of the Board: LANE R. WILLIAMS Name of Secretary (or Clerk) of Board: EMMA GROSS Number of Meetings of the Board during the year: 3 MANAGERS List the name of each person who performed management duties for the Company during the year, and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts.) Name STEPHEN G. CHILD ANN E. SHARP JOHN STUART ROB VOWELL DENNIS FARRINGTON JOE DELATORRE SAM MCCLARY FRED BRUCE DIANA HOLMES JACKIE EDWARDS Rev 3102 Title CHIEF EXECUTIVE OFFICER CONTROLLER OPERATIONS MANAGER PLANT RECORDS MANAGER SW OPERATIONS MANAGER NW OPERATIONS MANAGER IT MANAGER SWITCH MANAGER HRMANAGER CUSTOMER SERVICE MANAGER Wages and Bonuses Paid 124,854 73,070 84,164 51,138 93,612 41,870 63,228 76,712 42,280 41,555 Page 2 NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accunting or depreciation practices, extensions or additions to the system; disposal of any substantial portion of the propert of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. THE COMPANY (MTE) SOLD THE WHOLLY OWNED SUBSIDIARY M&L ENTERPRISES. THE SALE WAS EFFECTIVE DECEMBER 31, 2009. MTE ALSO ENTERED INTO AN AGREEMENT FOR THE SALE OF THE ASSETS OF ITS OREGON EXCHANGES. PENDING RELEASE OF THE STUDY AREA. THIS SALE TO BE EFFECTIVE IN JANUARY OF 2010. Rev 3/02 Page 3 BALANCE SHEET Assets and Other Debits Balance Balance Increase Beginning at End or Title of Account of Year of Year (DeCreaSe) Current Assets 1120 Cash and Equivalents 322,292 302,181 -20,111 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 84,266 55,385 -28,881 1181 Accts. Rec. Allow. -Telecommunications 1190 Other Accounts Receivable 872,329 1,447,902 575,573 1191 Accounts Receivable Allow. - Other 0 1200 Notes Receivable 640,716 644,683 3,967 1201 Notes Receivable Allowance -258,906 -258,906 1210 Interest & Dividends Receivable 1220 Material and Supplies 118,035 222,489 104,454 1280 Prepayments 37,999 111,487 73,488 1290 Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets 857,580 286,268 -571,312 Noncurrent Assets 1401 Investment in Affiliated Companies 1,123,770 1,214,974 91,204 1402 Investment in Nonaffiliated Companies 169,306 120,817 -48,489 1406 Nonregulated Investments 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 63,002 53,046 -9,956 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Propert, Plant and Equipment 2001 Telecommunications Plants in Service 29,141,515 29,518,930 377,415 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 669,678 2,816,686 2,147,008 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 968,801 1,044,546 75,745 2007 Goodwill Depreciation and Amortization Accounts 3100 Accumulated Depreciated -14,875,165 -15,750,672 -875,507 3200 Accum. Depre. - Held for Future Use 3300 Accumulated Depreciation - Nonoperating 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. - Leasehold Improvements 3500 Accumulated Amortization - Intangible 3600 Accumulated Amortization - Other TOTAL ASSETS 19,935,218 21,829,816 1,894,598 Rev 3102 Page 4 BALANCE SHEET Liabilties & Stockholders' Equity Balance Balance Increase Beginning at End or Title of Account of Year of Year (Decrease) Current Liabilties 4010 Accounts Payable 745,493 1,136,367 390,874 4020 Notes Payable 4030 Advance Billings and Payments 0 4040 Customer Deposits 0 4050 Current Maturities - Long -Term Debt 1,234,209 1,313,973 79,764 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 0 4080 Other Taxes - Accrued 0 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 454,484 450,293 4130 Other Current Liabilities 238,136 9,744 -228,392 Long-Term Debt 4210 Funded Debt 11,549,285 12,785,101 1,235,816 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affilated Companies 4270 Other Long-Term Debt Other Liabilties & Deferred Credits 4310 Other Long-Term Liabilties 4320 Unamort. Oper. Invest. Tax Credits - Net 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 1,376,036 1,669,815 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 0 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 25,000 25,000 0 4520 Additional Paid-In Capital 7,910 7,910 4530 Treasury Stock -64,000 -64,000 4540 Other Capital 4,368,665 4,495,613 4550 Retained Earnings 0 TOTAL LIAB. & OTHER CREDITS 19,935,218 21,829,816 1,894,598 Rev 3/02 Page 5 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Ye a r Du r i n g y e a r or So l d Ad j u s t m e n t s of Ye a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 14 8 , 6 9 2 14 8 , 6 9 2 21 1 2 Mo t o r V e h i c l e s 28 5 , 3 2 4 77 , 0 8 5 20 8 , 2 3 9 21 1 3 Ai r c r a f t 0 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 68 1 , 6 8 0 50 , 8 3 2 73 2 , 5 1 2 21 2 1 Bu i l d i n g s 95 4 , 9 0 9 95 4 , 9 0 9 21 2 2 Fu r n i t u r e 0 21 2 3 Of f c e E q u i p m e n t 72 , 3 3 7 72 , 3 3 7 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 , 3 6 7 , 1 2 3 61 , 4 7 5 -3 , 7 4 3 22 , 3 0 1 , 9 0 5 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 0 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 4, 1 4 8 , 5 5 4 88 4 , 8 9 0 47 6 , 7 6 7 4, 5 5 6 , 6 7 7 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 0 22 3 2 Ci r c u i t E q u i p m e n t 6, 4 5 6 , 1 9 2 20 1 , 2 8 2 24 8 , 5 2 9 6, 4 0 8 , 9 4 5 23 1 1 St a t i o n A p p a r a t u s 27 , 2 3 2 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 92 8 92 8 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 22 , 8 0 3 22 , 8 0 3 45 , 6 0 6 24 1 1 Po l e s 0 24 2 1 Ae r i a l C a b l e 0 24 2 2 Un d e r g r o u n d C a b l e 0 24 2 3 Bu r i e d C a b l e 17 , 7 3 5 , 5 8 4 35 6 , 3 4 2 26 , 8 1 1 18 , 0 6 5 , 1 1 5 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 0 24 3 1 Ae r i a l W i r e 0 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S 52 , 9 0 1 , 3 5 8 1, 4 9 3 , 3 4 6 89 0 , 6 6 7 19 , 0 6 0 53 , 4 9 5 , 8 6 5 Re v 3 / 0 2 Pa g e 6 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Ye a r Du r i n g Y e a r or So l d Ad j u s t m e n t s of Ye a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 77 , 3 6 0 77 , 3 6 0 21 1 2 Mo t o r V e h i c l e s 24 5 , 3 9 7 66 , 8 9 9 17 8 , 4 9 8 21 1 3 Ai r c r a f t 0 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 50 9 , 0 7 9 47 , 6 3 8 55 6 , 7 1 7 21 2 1 Bu i l d i n g s 82 8 , 6 2 1 82 8 , 6 2 1 21 2 2 Fu r n i t u r e 0 21 2 3 Of f c e E q u i p m e n t 58 , 1 2 7 58 , 1 2 7 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 20 1 , 8 4 7 61 , 4 7 5 -2 0 , 5 8 4 11 9 , 7 8 8 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 0 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 1, 4 9 6 , 3 7 9 61 1 , 2 5 3 47 6 , 7 6 7 1, 6 3 0 , 8 6 5 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 0 22 3 2 Ci r c u i t E q u i p m e n t 2, 8 2 8 , 5 5 1 50 , 8 0 8 24 8 , 5 2 9 2, 6 3 0 , 8 3 0 23 1 1 St a t i o n A p p a r a t u s 27 , 2 3 2 27 , 2 3 2 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 0 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 0 24 1 1 Po l e s 0 24 2 1 Ae r i a l C a b l e 0 24 2 2 Un d e r g r o u n d C a b l e 0 24 2 3 Bu r i e d C a b l e 7, 1 0 6 , 0 1 4 83 , 4 1 3 25 , 4 1 0 7, 2 1 4 , 8 3 7 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 0 24 3 1 Ae r i a l Wir e 0 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S 13 , 3 7 8 , 6 0 7 79 3 , 1 1 2 85 3 , 6 7 0 4, 8 2 6 13 , 3 2 2 , 8 7 5 Re v 3 1 0 2 Pa g e 7 zo ~Õw D:c.woow !;..0:: 0 :E ..:: C"0-o Cc( 5 z u_ u en c(wiiI-ZW LLo en (ñ ~c(zc( 00 0 0 0 ..0 0)N 0 N 0 0 0 00 0 0 0 v 0 0 0 0 ('0 0 0 0 0 (W(W 0)(W 0 0 co (W N io ('00N(W 0)0 0)N io io co io 0) CI ..r-ci ió cö cD ri ri cñ cö riu " ca ....""io (W N io ..co 0)e C CI N co ""..0)(W ei co.! 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CICI i. .i Q) (. .i CI I- Q) i. cD .E . 200~ .9 c: Q) iLNCI Ul'(3 E ~ 0c. -= ~ ~ - CI~ :; :2 lß .~ .~ i..5 c: '-~ .Q.Q) '(3 NUl Q) 0 m Q. ~- Q) ;:~ 0 æ AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 ID A H O O p e r a t i o n s O n l y Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Ye a r Ra t e * Ye a r Ad j u s t m e n t s of Ye a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 M o t o r V e h i c l e s 25 2 , 8 9 8 25 . 0 0 % 1, 5 0 0 66 , 8 9 9 18 7 , 4 9 9 21 1 3 A i r c r a f t 21 1 4 S p e c i a l P u r p o s e V e h i c l e s 21 1 5 G a r a g e W o r k E q u i p m e n t 21 1 6 O t h e r W o r k E q u i p m e n t 50 4 , 7 5 8 20 . 0 0 % 20 , 2 5 6 52 5 , 0 1 4 21 2 1 B u i l d i n g s 38 9 , 3 8 3 3. 0 0 % 24 , 8 5 9 41 4 , 2 4 2 21 2 2 F u r n i t u r e 21 2 3 O f f i c e E q u i p m e n t 42 , 7 8 5 14 . 3 0 % 8, 3 1 2 51 , 0 9 7 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 13 7 , 7 7 1 20 . 0 0 % 37 , 1 4 8 61 , 4 7 5 11 3 , 4 4 4 22 1 1 A n a l o g E l e c t r o n i c S w i t c h i n g 0 22 1 2 D i g i t a l E l e c t r o n i c S w i t c h i n g 97 8 , 4 2 0 12 . 0 0 % 98 , 7 7 1 47 6 , 7 6 7 60 0 , 4 2 4 22 1 5 E l e c t r o - M e c h a n i c a l S w i t c h i n g 0 22 2 0 O p e r a t o r S y s t e m s 0 22 3 1 R a d i o S y s t e m s 0 22 3 2 C i r c u i t E q u i p m e n t 2, 2 9 8 , 2 0 4 10 . 0 0 % 15 8 , 8 6 0 24 8 , 5 2 9 2, 2 0 8 , 5 3 5 23 1 1 S t a t i o n A p p a r a t u s 16 , 7 9 7 10 . 0 0 % 2, 7 2 3 19 , 5 2 0 23 2 1 C u s t o m e r P r e m i s e s W i r i n g 0 23 4 1 L a r g e P r i v a t e B r a n c h E x c h a n g e s 0 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 56 1 23 . 0 0 % 93 65 4 23 6 2 O t h e r T e r m i n a l E q u i p m e n t 0 24 1 1 P o l e s 0 24 2 1 A e r i a l C a b l e 0 24 2 2 U n d e r g r o u n d C a b l e 0 24 2 3 B u r i e d C a b l e 4, 9 4 8 , 7 1 3 6. 5 0 % 26 0 , 8 1 2 26 , 8 1 1 5, 1 8 2 , 7 1 4 24 2 4 S u b m a r i n e C a b l e 0 24 2 6 I n t r a b u i l d i n g N e t w o r k C a b l e 0 24 3 1 A e r i a l W i r e 0 24 4 1 C o n d u i t S y s t e m s 0 0 TO T A L 9, 5 7 0 , 2 9 0 61 3 , 3 3 4 88 0 , 4 8 1 9, 3 0 3 , 1 4 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 c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 1 0 2 Pa g e 9 INVESTMENTS Report below the investments in Accounts 1401, 1402 and 1406. Identify each investment as to the account in which included. Minor amounts in Account 1406 may be grouped by classes. Description Date Acquired Book Cost of Investments Disposed of This year Book Cost of Investments Held at End of Year RTFC NECA SERVICES SYRINGA NETWORKS RNS M & L ENTERPRISES NET NON REGULATED 117,817 3,000 1,214,974 358,257 602,405 338,565 Totals 602,405 2,032,613 RECEIVABLES Itemize amounts show in Accunts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Name of Company SUBSCRIBERS NECA IDAHOUSF CARRIERS RNS M&L QWEST EMPLOYEE LOANS NON-REG CUSTOMERS OREGON TELEPHONE LIFELINE INVENTORY Amount at End of YearNotes Accounts Receivable Receivable 54,626 1,138,057 31,638 5,146 21,640 17,616 8,609 5008 20,277 21,103 687 174,617 Totals 5008 1,494,016 Rev 3/02 Page 10 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor WELLS FARGO Totals Date of Note 6/30/2009 Interest Rate VARIABLE ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100.00 Name of Creditor SEE ATTACHED SHEET Totals Rev 3/02 Page 11 Due Date 6/30/2010 Face Amount 9272 Amount o ACCOUNTS PAYABLE OVER $100 FOR IPUC ANNUAL REPORT FOR YEAR ENDED DECEMBER 31, 2009 NAME OF CREDITOR ALL AROUND SPORTS ARIZONA DEPT OF REVENUE CANYON TRUCK UPFITTERS CASCABEL COMMUNITY CLEAR CREEK DISPOSAL CODALE ELECTRIC COYOTE LEASING EL KORAH SHRINE CIRCUS FALCON COMMUNICATIONS FEDEX FLEET SERVICES OF ARIZONA FLETCHERS TIRE AND AUTO ANN FREI-WASHINGTON COUNTY STEVE GILBERT GRAYBAR HASLER, INC. HIGHWAY TECHNOLOGIES STEVE'S HOMETOWN TOYOTA IDAHO STATE TAX COMMISSION INTERMOUNTAIN DRILLING JERRY'S AUTO PARTS KENWORTH SALES LINDA KLIND JOANNE MALLORY MAPCOM SYSTEMS MONTE R. LEE & CO. MOSS ADAMS MTV NETWORKS PHILADELPHIA INSURANCE CRA PAYMENT CENTER QWEST QWEST QUILL REGENCE BLUE SHIELD RSC EQUIPMENT RENTAL RUIZ AIR CONDITIONING SHERMAN REILL Y,INC. SS SOLUTIONS TERRITORIAL SUPPLIES USDA-RUS ROB VOWELL ZIONS BANK RNS IOTA VARIOUS TAXESIFEES TOTAL AMOUNT 180 840 209 300 128 11,816 23,209 200 891 136 691 724 9,879 708 2,184 394 1,463 678 2,240 1,101 772 1,391 1,400 680 9,916 27,656 10,791 278 5,469 1,074 4,618 2,329 213 34,700 719 1,405 270 4,182 793 118,328 884 999 -75,200 33,045 8,013 252,696 42 6 ( ) , 4 2 7 0 a n d 4 3 1 0 th e r e q u i r é d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . ob l i g â t i o n s h i a t u r e s e r i a l l y o r o t h e r w i s e â t v a r i o u s d a t e S , g i v e p a r t i c u l a r s i n a n o t e . Da t e Da t e Fa c t Pr e m i u m l D i s c o u n t & S è r i è š of of Am o u n t Ou t s t a n d i n g Yé a r In t e r e s t f o r y e a r of O b l i a a t i o n Is s u e Ma t u r i t y Au t h o r i z e d Ye a r - E n d To t a l Am o r t i z e d Ra t e Am o u n t RT F C - S W I T C H 7/ 1 7 / 2 0 0 9 7/ 1 7 / 1 1 12 6 , 8 6 8 5. 3 5 % 37 , 0 7 2 RT F C - A C Q U I S I T I O N 7/ 1 7 / 0 9 7/ 1 7 / 1 1 33 7 , 3 8 8 5. 3 5 % WI T H AB O V E RU S 8/ 1 7 / 8 0 8/ 1 7 / 1 5 24 4 , 9 9 3 2. 0 0 % 91 , 6 9 9 RU S 12 / 1 9 / 8 5 12 / 1 9 / 2 0 66 7 , 5 1 7 5. 0 0 % WIT H AB O V E RU S 6/ 1 / 9 2 6/ 1 / 1 6 10 3 , 1 8 7 5. 0 0 % WI T H AB O V E RU S 9/ 2 9 / 9 4 9/ 2 9 / 1 4 1, 1 5 6 , 9 6 1 5. 0 0 % WIT H AB O V E RU S 2/ 1 / 0 2 2/ 1 / 1 6 3, 3 5 3 , 9 3 7 5. 0 0 % WIT H AB O V E RU S 4/ 3 0 / 0 9 4/ 3 0 / 2 1 7, 8 7 1 , 5 0 8 5. 0 0 % WI T H AB O V E ZI O N S B A N K 3/ 7 / 0 7 3/ 7 / 1 2 24 , 8 3 2 VA R 1, 2 4 0 Re v 3 / 0 2 Pa g e 1 2 CAPITAL STOCK Report below the particulars called for concerning common and preferred stock at end of year, designating separate series of any general class. Show totals separately for common and preferred. For each class of preferred stock, show the dividend rate and whether dividends are cumulative or noncumulative. Show details in a footnote of capital stock sold during the year. Include number of shares, consideration received, premium or discount, and expenses incurred. Class & Series of Stock Common Rev 3102 Number of Shares Authorized 252 Par Value per Share 100 Page 13 Outstanding per Balance Sheet Shares Amount 250 25000 INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 15) Total Operating Expenses (from page 17) 7100 Other Operating Income and Expense 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 7230 Operating State and Local Income Taxes 7240 Operating Other Taxes 7250 Provision for Deferred Operating Income Taxes-Net 7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 GainslLosses from the Disposition of Certain Propert 7360 Other Nonoperating Income 7370 Special Charges 7300 Nonoperating Income and Expense 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net 7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions 7500 Interest and Related Items 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net 7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 3102 8,771,616 7,906,731 255,974 347,445 199,004 546,449 23,997 37,046 -8,729 20,293 72,607 694,019 694,019 173,950 126,948 Page 14 3,720,250 3,368,015 25,621 23,997 4,334 19,686 148,459 700 352,935 OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Other Local Exchange Revenue 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue - All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Biling Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billng & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: Rev 3/02 803,532 336,967 15,937 13,290 208,534 85,596 6,567,014 2,689,734 291,065 111,531 810,705 480,621 136 13 8,470 2,498 69,179 -2,956 8,771,616 3,720,250 Page 15 OPERATING EXPENSE Item Total Company Idaho Only Plant Specific Operations Expense 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artorks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Offce Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information OriginationlTermination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilties Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense 23,147 21,514 87,432 45,327 65,053 1,097,919 38,118 551,701 1,231,298 477,907 1,289,910 784,130 TOTAL PLANT SPECIFIC OPERATIONS EXPENSE 3,794,759 1,918,697 Rev 3102 Item Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Propert/PlanUEquipment Expenses 6511 Propert Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6721 Accounting and Finance 6725 Legal 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense PLANT SPECIFIC OPERATING EXPENSES TOTAL OPERATING EXPENSES Rev 3102 Page 17 483,931 55,213 1,841,077 83,636 17,676 553,191 900 4,540 600 9,196 355,686 600 7,229 156,922 341,310 434,299 4,545 585,215 143,244 186,035 296,245 3,794,759 o 7,906,731 1,918,697 o 3,368,015 CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , 2 0 0 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Pr e f i x ( e s ) : 22 2 , 3 5 5 , 6 3 2 , 6 3 3 , 6 3 6 , 0 0 0 Ce n t r a l O f f i c e S w i t c h - M I D V A L E - T A Q U A T - 7 0 0 0 , L A K E V I E W - T A Q U A - T - 7 0 0 0 , W A R M L A K E - T A Q U A - T 7 0 0 0 , S T A N L E Y - T A Q U A T - 7 0 0 0 , W A R R E N A N D Y E L L O W P I N ST A N L E Y = T A Q U A T - 7 0 0 0 , W A R R E N A N D Y E L L O W P I N E - R E D C O M M D X Ch e c k a l l t h a t a p p l y : C h e c k o n e : C h e c k o n e : St a n d A l o n X D i g i t a l - X E l e c t r o n i c _ X _ An a l o g _ E l e c t r o - M e c h a n i c a l _ Ot h e r : Ac c e s s L i n e C a p a c i t y 22 2 - 1 0 , 0 0 0 , 3 5 5 - 1 0 , 0 0 0 , 6 3 2 - 1 0 . 0 0 0 , 6 3 3 - 1 0 0 0 , 6 3 6 - 1 0 0 0 77 4 - 1 0 , 0 0 0 In s t a l l e d / E q u i p p e d : _ 5 i s a m e 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 : _ 9 0 7 . (I n c l u d e C e n t r e x , P A L , S e m i - P u b . ) Pu b l i c T e l e p h o n e L i n e s _ 1 5 _ Co m p a n y O f f i c i a l L i n e s _ 6 9 _ Co m p a n y T e s t L i n e s _ 8 3 _ Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Re s i d e n c e Bu s i n e s s Mu l t i - Si n g l e L i n e Mu l t i - Si n g l e L i n e To t a l Li n e Mu l t i - Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e 1- P a r t y 1- P a r t Pa r t Re s i d e n c e N. A R . 1- P a r t y 1- P a r t Pa r t y Bu s i n e s s & B u s i n e s s Be g i n n i n g o f Y e a r 74 3 74 3 19 3 19 3 93 6 Ne w C o n n e c t s 76 76 0 76 Di s c o n n e c t s 51 51 4 4 55 En d o f Ye a r 71 8 71 8 18 9 18 9 95 7 Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . O . : _ Di a l T o n e f r o m a n o t h e r C . O . : Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : _ 9 0 _ Cu s t o m C a l l n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : _ 4 9 8 To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d t o : _ 8 _ Re v 3 1 0 2 Pa g e 1 8 Lo c a l E x c h a n g e 1 AL L 2 3,4,5,6,7,8,9_10 11 12 13 , 14 15 16 , 17 . 18 Re v 3 / 0 2 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G 2 0 0 6 . Av e r a g e # of Cu s t o m e r Li n e s i n U s e 93 1 Lo c a l C a l l s Nu m b e r A v g . l (1 0 0 0 s ) L i n e NO T M E A S U Pa g e 1 9 To l l C a l l s O r i g i n a t e d ( T o t a l o f a l l C a r r i e r s ) Av g . l In t r a s t a t e I n t e r s t a t e T o t a l L i n e 24 9 1 6 3 58 1 3 9 4 83 0 5 5 7 89 2 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2006. CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA 31.41.01.105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes_X_No_ Included in directory Yes_X_No_ Date of notification _2-1-09 Alternate method of notification Rule IDAPA 31.41.01.403.02 Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bil DeniallTermination Quality or Availability of Service Carrier SelectionlAssignment Miscellaneous Rev 3/02 Page 20 CERTIFICATE State of Idaho ) ) ss )County of Washington WE, the undersigned Stephen G. Child and Ann E. Sharp, of Midvale Telephone Exchanbe, Inc. located at 2205 Keithley Creek Rd. Midvale, Idaho 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. ~ (Chief Officer)/) ~//A./, . (Ofcer~ tIL Ad''':/Subscribed and Sworn to Before Me this $0 --day of ~,~~Notary Public (Year) ~O J l) . GLENNIS K, BONNER Notary Public State of Idaho My Commission expire ~ f~- , (Year) ¿l) /6 . Rev 3/02 gdklexcelljnelson/anulrptsltelannualrpt Page 21 MIDVALE TELEPHONE EXCHANGE, INC. Servng Rural Customers in Idaho, Arizona, Oregon & Washington .2205 KEITllEY CREEK ROAD .P.O. BOX 7 .MIDVALE, IDAHO 83645 (208) 355-2211 1-800-462-4523 FAX (208) 355-2222 Anual Notices 2009 General Midvale Telephone Exchange (MTE) is a regulated local exchange carrier that provides telecommunication servces in Idao, Oregon, Arizona and Washington. You may reach us at the telephone numbes listed above or at: www.midvaletelephone.com info(ã?midvaletelephone.com MTE "Do Not Call" Policy Midvale Telephone does not call customers for sales or marketing puroses and thus does not maintain an interal "Do Not Call" listing. Ifwe have new or additional serces available, we will send you that information in the form of a bil stuffer and/or post the information on our website, www.midvaletelephone,com. If you receive a call from someone claiming to be from Midvale Telephone and they are asking you to buy or subscribe to something, you should be immediately suspicious. We may stil contact you, however, for non-solicitation puroses. This would include things like sureys, biling and other service-related matters. For nearly a centu, customers have counted on Midvale Telephone to respect and protect the privacy of information we obtain in the normal course of providing servce. While we are working hard to serve you in new and exciting ways, our commitment to protecting your privacy remains as strong as ever. Limitations of Servce: MTE provides dial-tone servces to the customer premises, usually marked by a network interface device. Customers are responsible for all inside wirig and any telecommunication devices they choose to connect to our network. MTE is not responsible for any damage to same while connected to the network. If customer-owned wire or equipment is suspected of jeopardizing the integrty of the overall network, MTE will act to protect the network. All servce orders and trouble reports wil be responded to promptly, in the order they are received, and in accord with all state applicable rules and regulations. MTE canot be responsible for any loss of business due to a serice outage and canot guaantee servce at any specific time. Please see our taiff on file with your state utility commission for full disclosures and limitations. Arizona Corporation Commission Idao Public Utility Commission 1200 W Washington 472 W Washington 83702Phoenix AZ 85007 PO Box 83720WWW.cc.state.az.us Boise ID 83720-0074 www.puc.state.id.us Oregon Public Utility Commission 550 Capitol StNE #215 PO Box 2148 Salem, OR 97308-2148 www.puc.state.or.us Washington UTC 1300 S Evergree Park Dr SW PO Box 47250 Olympia W A 98504-7250 ww.wutc.wa.gov State Discount Programs Each state, in which Midvale offers servce, has a telephone assistance program that is often paired with the Federal Lifeline program. Please contact your customer servce representative at Midvale, or visit your state's website to see if you qualify. Idaho Oregon Washington Arizona http://ww.puc.state.id.us/consumer/itsap .pdf https:llapps.puc.state.or.us/rspflotapapp.asp http://www.wutc.wa.gov Website not available. Contact Midvale Telephone for more information. (continued on back) ww.midvaletelephone.com Family Owned Since 1943 Page 1 Privacy Notice With the exception of directory inormation, Midvale Telephone does not sell or release any persona inormtion about our customers to anyone. We hold all customer inormation in strctest confdence. Deposit Although rues var by state, in most cases, a deposit is not requid if a new customer can provide a copy of their recently paid, non-delinquent phone bil. Otherwse, a $50 deposit is requested at tie of intalation. The deposit is credited back to the customer's account aftr six month. Deliquent Paymënt Policy All büls are due and payable by the 2f1 of the month they are issued. We do our best to noti customers (both by mai and by phone) when their servce is injeopardy. Regardless, it is the customer's responsibilty to ensur payment in fu and on tie. Please contact your customer serce representative for any help with maging your account. National Do Not Call List Registrtion of your telephone number on the National Do Not Cal Regitr is free-of-chare. Telephone numbers placed on the registr will rema on it perently due to the Do-Not-Call Improvement Act of 2007, which became law in Febru 2008. You may remove your number from the list at any tie. The Do Not Cal Registr does not prevent al unwanted cal, such as the followig: . Cals from organtions with which you have establihed a business relationship: . Cal for which you have given prior wrtten persion: . Cal which ar not commeria or do not include unolicited adverements; or . Cal by political organtions, chaties or telephone sueyors Subscrbers may registe their residential telephone numer, including wireless numbers, on the nationa Do Not Cal registr by calg (888) 382-1222 (T cal (866) 290-4236) or on the website: ww.donotcall.gov. Subscribers must call frm the number they wish to register. Telemaketer an sellers ar requid to search the regitr at leat once every month and drop from their cal-lit the phone numers of subscriber who have regitered. How to File a Complait: A complat ca be fied by completig the form provided on the website (ww.donotcall.gov) or by calg (888) 225-5322 (T cal (888) 835-5322). Your complait should include: . Name, addess, and phone number where you can be reached durg the business day; . Phone number involved with the complait; and . As much specific inormtion as possible, includg the telemakete or company contactig you, the date on which you placed your numbe on the Do-Not-Cal registr or ma a company- specific do-not-call request, and the date of any subsequent telemaetig cal from tht telemaketer or company Please do not hesitate to call if there is anytg we can do or with questions you need anwered. 20 0 8 F O R M I I N P U T M A S T E R CO M P A N Y N A M E : M i d v a l e T e l e p h o n e E x c h a n g e - I d a h o Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 2 0 0 8 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l Id a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t To Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l SU M M A R Y Op e r a t i n g R e v e n u e s 50 X X L o c a l - B i l e d (1 ) 1. 35 4 , 2 6 9 - - 0 - - - 35 4 2 6 9 35 4 , 2 6 9 -E A S B i l e d (1 ) 2. 0 - - 0 - - - - 0 -E A S S e t t l e m e n t (1 ) 3. 0 - - 0 - - - - 0 50 8 X A c c s s - S L C ( E n d U s e r ) (2 ) 4. 47 8 , 6 7 6 99 0 1 6 0 99 , 0 1 6 0 0 - 37 9 6 6 0 37 9 , 6 6 0 -S w i t c h e d ( T S + N T S ) (2 ) 5. 2, 3 2 3 , 3 8 3 16 5 2 5 7 2 1, 6 5 2 , 5 7 2 68 7 4 0 11 9 5 5 59 0 , 1 1 6 67 0 , 8 1 1 -S p e c i a l (2 ) 6. 25 , 8 9 5 - 25 8 9 5 25 , 8 9 5 - 0 - - 0 51 X X T o l l - M e s s a g e (3 a ) 7. 0 0 - 0 - - - - 0 -P r i v a t e L i n e (3 b ) 8. 0 - - 0 - - - - 0 -S e t t l e m e n t (3 c ) 9. 0 - - 0 - - - - 0 52 X X M i s c . - B i l i n g & C o l l e c t i o n (4 ) 10 . 0 - - 0 0 - - 0 0 -D i r e c t o r y A d v e r t s i n g 11 . 2, 5 9 1 - - 0 - - - 25 9 1 2,5 9 1 -O p e r a t i n g R e n t s 12 . 0 - - 0 - - - 0 0 -O t e r M i s c . 13 . 55 4 - - 0 - - - 55 4 55 4 53 0 X L e s s : U n c o l l e c t i b l e R e v . ( - ) 14 . -2 5 5 , 9 7 7 0 -2 5 5 9 7 7 -2 5 5 , 9 7 7 To t a l R e v e n u e s 15 . 2,9 2 9 , 3 9 1 1, 7 5 1 , 5 8 8 25 , 8 9 5 1, 7 7 7 , 4 8 3 68 , 7 4 0 11 , 9 5 5 0 1, 0 7 1 , 2 1 3 1, 1 5 1 , 9 0 8 Op e r a t i n g E x p e n s e s 61 X X - 6 4 X X P l a n t S p e c i f i c O p e r . (5 a ) 16 . 1, 3 4 4 , 6 4 3 63 7 , 4 7 4 10 4 , 2 6 4 74 1 , 7 3 8 29 3 , 3 2 0 25 , 2 0 4 12 , 8 0 1 27 1 , 5 8 0 60 2 , 9 0 5 65 X X P l a n t N o n s p e c i f c O p e r a t i o n s (5 a ) 17 . 63 , 4 9 8 33 , 0 6 9 3, 0 0 0 36 , 0 6 9 13 , 4 6 6 75 4 67 5 12 , 5 3 4 27 , 4 2 9 65 6 X D e p r e c i a t i o n & A m o r t i z a t i o n (5 a ) 18 . 43 0 , 5 0 4 19 1 , 4 9 3 28 , 1 0 1 21 9 , 5 9 4 12 1 , 8 0 2 5, 5 9 5 8, 4 5 4 75 , 0 5 9 21 0 , 9 1 0 66 X X C u s t o m e r O p e r a t i o n s (5 a ) 19 . 27 7 , 7 9 7 10 0 , 6 2 2 - 10 0 , 6 2 2 88 , 5 3 3 0 0 88 , 6 4 2 17 7 , 1 7 5 67 X X C o r p o r a t e O p e r a t i o n s (5 a ) 20 . 51 4 , 6 9 7 25 0 , 8 2 4 34 , 5 8 3 28 5 , 4 0 7 11 2 , 1 7 8 8, 3 5 8 4, 2 2 3 10 4 , 5 3 1 22 9 , 2 9 0 -- - - O t h e r O p e r a t i n g (5 a ) 21 . 0 0 0 0 0 0 0 0 0 To t a l E x p e n s e s (5 a ) 22 . 2, 6 3 1 , 1 3 9 1,2 1 3 , 4 8 2 16 9 , 9 4 8 1, 3 8 3 , 4 3 0 62 9 , 2 9 9 39 , 9 1 1 26 , 1 5 3 55 2 , 3 4 6 1, 2 4 7 , 7 0 9 Op e r a t i n g T a x e s : (6 ) 72 4 0 G e n e r a l T a x e s 23 . 0 0 0 72 3 0 S t a t e / L o c a l l n c . T a x ( C u r r e n t ) 24 . -1 1 , 8 6 0 -5 5 1 6 -7 9 5 -6 , 3 1 1 -2 8 5 4 -1 8 5 -1 3 1 -2 3 7 9 -5 , 5 4 9 72 2 0 F e d e r a l In c o m e T a x ( C u r r e n t ) 25 . -5 0 , 4 5 9 -2 3 4 6 8 -3 3 8 2 -2 6 , 8 5 0 -1 2 1 4 3 -7 8 8 -5 5 9 -1 0 1 1 9 -2 3 , 6 0 9 72 5 0 N e t D e f e r r e d I n c o m e T a x e s 26 . 28 7 , 3 3 3 11 6 0 0 6 16 8 9 0 13 2 8 9 6 75 8 1 7 42 4 4 38 0 3 70 5 7 3 15 4 4 3 7 72 1 0 N e t I n v e s t m e n t T a x C r e d i t s 27 . 0 0 0 To t a l T a x e s 28 . 22 5 , 0 1 4 87 , 0 2 2 12 , 7 1 3 99 , 7 3 5 60 , 8 2 0 3, 2 7 1 3, 1 1 3 58 , 0 7 5 12 5 , 2 7 9 Ne t O p e r a t i n g I n c o m e 29 . 73 , 2 3 8 45 1 , 0 8 4 -1 5 6 , 7 6 6 29 4 , 3 1 8 -6 2 1 , 3 7 9 -3 1 , 2 2 7 -2 9 , 2 6 6 46 0 , 7 9 2 -2 2 1 , 0 8 0 Pa g e 1 o f 7 SU M M A R Y ( c o n t i n u e d ) Av e r a g e R a t e B a s e 20 0 1 T e l e c o m . P l a n t i n S e r v i c e (5 b ) 1. 14 , 9 5 8 , 4 0 7 6, 0 3 9 , 2 0 8 90 0 , 3 2 8 6,9 3 9 , 5 3 6 3, 9 2 5 , 9 5 3 22 0 , 9 5 2 19 7 , 9 9 5 3, 6 7 3 , 9 7 1 8,0 1 8 , 8 7 1 20 0 5 P l a n t A c q u i s i t i o n A d j u s t m e n t 2. 0 - - - - - - 0 31 0 0 L e s s : A c c u m u l a t e d D e p r . ( - ) (5 c ) 3. -9 , 7 2 6 , 8 1 1 -3 , 6 7 1 , 0 9 6 -6 0 0 , 1 1 4 -4 , 2 7 1 , 2 1 0 -2 , 3 1 7 , 8 0 5 -1 6 4 , 8 1 8 -9 9 , 9 4 6 -2 , 8 7 3 , 0 3 2 -5 , 4 5 5 , 6 0 1 34 x x - 3 6 x x A c c u m u l a t e d A m o r t . ( - ) (5 ) 4. 0 - - - - - - 0 41 0 0 - 4 3 4 0 A c c u m . D e f e r r d T a x ( - ) 5. 28 7 , 3 3 3 11 6 0 0 6 16 8 9 0 13 2 , 8 9 6 75 8 1 7 42 4 4 38 0 3 70 5 7 3 15 4 , 4 3 7 12 2 0 M a t e r i a l s a n d S u p p l i e s 6. 20 3 8 0 68 0 4 81 8 7, 6 2 2 63 0 3 22 1 34 5 58 8 9 12 , 7 5 8 -- - - E q u a l A c c s s E q u i p m e n t (7 ) 7. 0 - - 0 - - - 0 -- - - O t h e r R a t e B a s e 8. 15 3 , 0 6 2 71 7 6 5 10 3 0 8 82 , 0 7 3 35 5 8 8 24 6 9 14 4 2 31 4 9 0 70 , 9 8 9 To t a l A v e r a g e R a t e B a s e 9. 5, 6 9 2 , 3 7 1 2, 5 6 2 , 6 8 7 32 8 , 2 3 0 2, 8 9 0 , 9 1 7 1, 7 2 5 , 8 5 6 63 , 0 6 8 10 3 , 6 3 9 90 8 , 8 9 1 2, 8 0 1 , 4 5 4 Pa g e 2 o f 7 PL A N T I N S E R V I C E D E T A I L 21 X X G e n e r a l S u p p o r t F a c i l t i e s 1. 1, 9 2 8 , 2 1 8 77 8 , 4 8 6 11 3 , 3 4 6 89 1 , 8 3 2 50 8 , 7 8 7 28 , 4 8 2 25 , 5 2 3 47 3 , 5 9 4 1,0 3 6 , 3 8 6 22 X X C e n t r a l O f i c e E q u i p m e n t : CA T 1 - 0 p e r a t o r S y s t e m s 2. 0 0 0 CA T 2 - T a n d e m S w i t c h i n g ( A l i c e . ) 3. 0 0 0 CA T 2 - T a n d e m S w i t c h i n g ( A s s i g n . ) 4. 0 0 0 CA T 3 - L o c a l S w i t c h i n g 5. 1, 6 6 0 , 1 4 0 14 1 1 1 1 9 1, 4 1 1 , 1 1 9 24 9 0 2 1 24 9 , 0 2 1 CA T 4 . 1 2 - E x c h . T r u n k ( J o i n t U s e ) 6. 25 , 7 8 5 0 25 7 8 5 25 , 7 8 5 CA T 4 . 1 2 - E x c h . T r u n k ( D e d . U s e ) 7. 46 3 , 6 3 6 39 4 3 6 9 39 4 , 3 6 9 69 2 6 7 69 , 2 6 7 CA T 4 . 1 3 - S u b s c r . L i n e ( J o i n t U s e ) 8. 90 3 , 4 2 1 22 3 7 3 7 25 2 6 6 24 9 , 0 0 3 20 2 7 0 7 42 3 5 44 7 4 7 6 65 4 , 4 1 8 CA T 4 . 1 3 - S u b s c r . L i n e ( D e d . U s e ) 9. 0 0 0 CA T 4 . 2 3 - I X T r u n k ( J o i n t U s e ) 10 . 1, 2 6 7 , 5 4 6 73 3 0 4 7 0 73 3 , 0 4 7 53 4 9 9 0 53 4 , 4 9 9 CA T 4 . 2 3 - I X T r u n k C k t . ( D e d . U s e ) 11 . 24 , 9 6 7 0 96 0 3 9, 6 0 3 0 15 3 6 4 15 , 3 6 4 CA T 4 . 3 - H o s t / R e m o t e T r u n k C k t . 12 . 0 0 0 0 0 0 Ot h e r C O E 13 . 19 , 6 4 6 0 98 3 7 9, 8 3 7 0 98 0 9 0 0 9, 8 0 9 To t a l C O E 14 . 4, 3 6 5 , 1 4 1 2, 3 6 7 , 9 0 3 43 9 , 0 7 5 2, 8 0 6 , 9 7 8 73 7 , 2 0 6 98 , 6 7 5 25 , 7 8 5 69 6 , 4 9 7 1, 5 5 8 , 1 6 3 23 X X I n f o r m a t i o n O r i g . r r e r m . E q u i p m e n t : CA T 1 - R e g u l a t e d C P E 15 . 0 0 0 Oth e r l O T 16 . 0 0 0 To t a l lO T 17 . 0 0 0 0 0 0 0 0 0 24 X X C a b l e & W i r e F a c i l t i e s : CA T 1 . 3 - S u b s c r i b e r L i n e ( C o m m o n ) 18 . 5,0 0 7 , 7 6 0 12 5 1 9 4 0 0 1, 2 5 1 , 9 4 0 12 5 1 9 4 0 0 25 0 3 8 8 0 3, 7 5 5 , 8 2 0 CA T 1 . 1 , 2 - S u b s r i b e r L i n e ( D e d . ) 19 . 47 , 4 0 0 23 7 0 0 23 , 7 0 0 23 7 0 0 23 , 7 0 0 CA T 2 - E x c h . T r u n k ( J o i n t U s e ) 20 . 14 6 , 6 8 7 0 14 6 6 8 7 14 6 , 6 8 7 CA T 2 - E x c h . T r u n k ( D e d . U s e ) 21 . 52 , 9 7 8 18 9 7 2 18 , 9 7 2 34 0 0 6 34 , 0 0 6 CA T 3 - I X T r u n k ( J o i n t U s e ) 22 . 3,3 7 0 , 0 6 9 16 4 0 8 7 9 29 0 1 6 4 1, 9 3 1 , 0 4 3 14 2 8 0 2 0 11 0 0 6 1, 4 3 9 , 0 2 6 CA T 3 - I X T r u n k ( D e d . U s e ) 23 . 40 , 1 5 4 15 0 7 1 15 , 0 7 1 25 0 8 3 25 , 0 8 3 CA T 4 - H o s t / R e m o t e T r u n k 24 . 0 0 0 0 0 0 Ot h e r C & W F 25 . 0 0 0 To t I C & W F 26 . 8,6 6 5 , 0 4 8 2, 8 9 2 , 8 1 9 34 7 , 9 0 7 3, 2 4 , 7 2 6 2, 6 7 9 , 9 6 0 93 , 7 9 5 14 6 , 6 8 7 2,5 0 3 , 8 8 0 5, 4 2 4 , 3 2 2 26 X X O t h e r A s e t s : Ca p i t l L e a s e s 27 . 0 0 0 Le a s e h o l d I m p r o v e m e n t s 28 . 0 0 0 In t a n g i b l e s 29 . 0 0 0 To t l ~ h e r A s s e t s 30 . 0 0 0 0 0 0 0 0 0 To t a l T e l e c o m . P l a n t i n S e r v i c e (5 b ) 31 . 14 , 9 5 8 , 4 0 7 6, 0 3 9 , 2 0 8 90 0 , 3 2 8 6, 9 3 9 , 5 3 6 3, 9 2 5 , 9 5 3 22 0 , 9 5 2 19 7 , 9 9 5 3, 6 7 3 , 9 7 1 8, 0 1 8 , 8 7 1 De p r e c i a t i o n & A m o r t i z a t i o n Ac c u m u l a t e d D e p r e c i a t i o n D e t a i l 31 1 X G e n e r a l S u p p o r t F a c i l t i e s 1. -1 , 3 2 6 , 5 9 0 -5 3 5 5 8 9 -7 7 9 8 1 -6 1 3 , 5 7 0 -3 5 0 0 3 9 -1 9 5 9 5 -1 7 5 5 9 -3 2 5 8 2 7 -7 1 3 , 0 2 0 31 2 X C e n t r a l O f f c e S w i t c h i n g 2. -1 , 1 1 3 , 1 7 1 -9 4 6 1 9 5 0 -9 4 6 , 1 9 5 0 0 0 -1 6 6 9 7 6 -1 6 6 , 9 7 6 31 2 X O p e r a t o r S y s t e m s 3. 0 0 0 31 2 X C e n t r a l O f f c e T r a n s m i s s i o n 4. -2 , 3 6 6 , 6 6 1 -8 9 5 3 -3 6 1 2 2 7 -1 , 2 0 6 , 1 8 0 -6 6 8 5 3 0 -8 2 4 0 5 -2 2 3 5 5 -3 8 7 1 9 1 -1 , 1 6 0 , 4 8 1 31 3 X I n f o r m a t i o n O r i g . r r e r m . E q u i p . 5. 0 0 0 31 4 X C a b l e & W i r e F a c i l i t i e s 6. -4 , 9 2 0 , 3 8 9 -1 3 4 4 5 9 -1 6 0 9 0 6 -1 , 5 0 5 , 2 6 5 -1 2 9 9 2 3 6 -6 2 8 1 8 -6 0 0 3 2 -1 9 9 3 0 3 8 -3 , 4 1 5 , 1 2 4 To t a l A c c u m u l a t e d D e p r e c i a t i o n (5 c ) 7. -9 , 7 2 6 , 8 1 1 -3 , 6 7 1 , 0 9 6 -6 0 0 , 1 1 4 -4 , 2 7 1 , 2 1 0 -2 , 3 1 7 , 8 0 5 -1 6 4 , 8 1 8 -9 9 , 9 4 6 -2 , 8 7 3 , 0 3 2 -5 , 4 5 5 , 6 0 1 Ac c u m u l a t e d A m o r t i z a t i o n D e t a i l 34 1 0 C a p i t a l L e a s e s 8. 0 0 0 34 2 0 L e a s e h o l d I m p r o v e m e n t s 9. 0 0 0 35 0 0 I n t a n g i b l e s 10 . 0 0 0 36 0 0 A c q u i s i t i o n A d j u s t m e n t 11 . 0 0 0 To t a l A c c u m u l a t e d A m o r t i z a t i o n (5 c ) 12 . 0 0 0 0 0 0 0 0 0 Pa g e 3 0 f 7 ,. It 0 CO 0 l. ."~ ~ ~ 81~~ '! g~T" T" N (Ø .. "I.. .. ~ ~.. ..~ '" N ~ ~N ..~N CI CI.. '"Ø) ~~'" .. ..0..~ fJ.. 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(I Q. .~oaoa8:~¡'2l0flmE ~c C "IE en IE c:; g¡~ '" C ~,geno ~o.Q::-'õ...Q..1å1U-.8-êioe-..:e==uu:Dj' ~j' E.!~ m ~.~! ! ~ ~ ~5i.g.. g-CUjg ga.it'('o(..=8(..3.=o:i!c -~~q;u;u;u;u;u;~~~~~." il ll il il ll il l. il It to(Ø co co co co co co co co co co OP E R A T I N G E X P E N S E ( c o n t i n u e d ) 66 X X C u s t o m e r O p e r a t i o n s 66 1 X Ma r k e t i n g 1. 0 0 0 0 0 0 0 0 66 2 X Op e r a t o r S e r v i c e s 2. 2,8 5 2 0 28 5 2 0 2, 8 5 2 66 2 X Dir e c t o r y P u b l i s h i n g - A l p h a . 3. 0 0 0 0 0 0 66 2 X Di r e c t o r y P u b l i s h i n g - C l a s s i f i e d 4. 0 0 0 66 2 X Di r e c t o r y P u b l i s h i n g - F o r e i g n 5. 0 0 0 66 2 3 Se r v i c e O r d e r P r o c . - E n d U s e r 6. 34 , 8 3 2 15 7 6 1 15 , 7 6 1 60 0 9 13 0 6 2 19 , 0 7 1 66 2 3 Pa y m e n t & C o l l e c i o n - E n d U s e r 7. 26 , 1 2 4 81 3 5 8,1 3 5 89 0 1 90 8 8 17 , 9 8 9 66 2 3 Bi l l n g I n q u i r y - E n d U s e r 8. 26 , 1 2 4 65 3 1 6, 5 3 1 91 4 3 10 4 5 0 19 , 5 9 3 66 2 3 Se r v i c e O r d e r P r o c . - C X R 9. 0 0 0 66 2 3 Pa y m e n t & C o l l e c t i o n - C X R 10 . 0 0 0 66 2 3 Bi l l n g I n q u i r y - C X R 11 . 0 0 0 66 2 3 Co i n A d m i n i s t r a t i o n 12 . 0 0 0 66 2 3 Re v . A c c t g . - T o l l T i c k e t P r o c . 13 . 0 0 0 66 2 3 Re v . A c c t g . - L o c a l M e s s . P r o c . 14 . 2, 4 9 3 70 8 70 8 17 8 5 1, 7 8 5 66 2 3 Re v . A c c t g . - O t h e r B i l & C o l i . 15 . 33 , 4 0 5 99 6 3 9, 9 6 3 11 7 2 1 11 7 2 1 23 , 4 4 2 66 2 3 Re v . A c c g . - S L C B i l i n g 16 . 1, 7 5 8 17 5 8 1,7 5 8 0 66 2 3 Re v . A c c g . - C X R B & C (9 ) 17 . 0 74 5 5 7, 4 5 5 52 8 2 5, 2 8 2 66 2 3 B & C A m t s P a i d t o L E C s (9 ) 18 . 0 0 0 66 2 3 Ot h e r C u s t o m e r S e r v i c e 19 . 13 7 , 4 7 2 50 3 1 1 50 , 3 1 1 42 8 4 0 44 3 2 1 87 , 1 6 1 To t a l C u s t o m e r O p e r a t i o n s (5 a ) 20 . 26 5 , 0 6 0 10 0 , 6 2 2 0 10 0 , 6 2 2 88 , 5 3 3 0 0 88 , 6 4 2 17 7 , 1 7 5 67 X X C o r p o r a t e O p e r a t i o n s : 67 1 X Ex e c u t i v e & P l a n n i n g 21 . 18 5 , 3 7 0 85 9 4 1 13 0 3 1 98 , 9 7 2 42 2 7 0 31 4 9 15 9 1 39 3 8 8 86 , 3 9 8 67 2 X Ge n e r a l & A d m i n i s t r a t i v e 22 . 32 9 , 3 2 7 16 4 8 8 3 21 5 5 2 18 6 , 4 3 5 69 9 0 8 52 0 9 26 3 2 65 1 4 3 14 2 , 8 9 2 67 2 8 EA S S e t t l e m e n t E x p e n s e 23 . 0 0 0 To t l C o r p o r a t e O p e r a t i o n s (5 a ) 24 . 51 4 , 6 9 7 25 0 , 8 2 4 34 , 5 8 3 28 5 , 4 0 7 11 2 , 1 7 8 8, 3 5 8 4, 2 2 3 10 4 , 5 3 1 22 9 , 2 9 0 -- - O t h e r O p e r a t i n g E x p e n s e s : -- - Eq u a l A c c s s P r o v i s i o n (1 0 ) 25 . 0 0 0 -- - Un i v e r s a l S e r v i c e F u n d (1 1 ) 26 . 0 0 0 -- - - Lif e l i n e C o n n e c t i o n A s s i s t a n c e (1 2 ) 27 . 0 0 0 To t a l Oth e r (5 a ) 28 . 01 0 0 0 0 0 0 0 0 To t a l O p e r a t i n g E x p e n s e s (5 a ) 29 . 2, 6 1 8 , 4 0 2 1 1,2 1 3 , 4 8 2 16 9 , 9 4 8 1, 3 8 3 , 4 3 0 62 9 , 2 9 9 39 , 9 1 1 26 , 1 5 3 55 2 , 3 4 6 1, 2 4 7 , 7 0 9 Pa g e 5 o f 7 OP E R A T I N G T A X E S D E T A I L 72 4 0 G e n e r a l T a x e s 72 4 0 Pr o p e r t 1. 29 . 0 0 0 11 7 0 8 17 0 5 13 , 4 1 3 76 5 2 42 8 38 4 71 2 3 15 , 5 8 7 72 4 0 Gr o s s R e c e i p t s 2. 0 0 0 72 4 0 PU C F e e 3. 0 0 0 72 4 0 Fr a n c h i s e F e e s 4. 0 0 0 72 4 0 Ot h e r 5. 76 8 76 8 76 8 0 To t a l G e n e r a l T a x e s 6. 29 , 7 6 8 12 , 4 7 6 1, 7 0 5 14 , 1 8 1 7, 6 5 2 42 8 38 4 7, 1 2 3 15 , 5 8 7 72 X X In c o m e T a x e s ( C a l c u l a t e d ) Ne t I n c o m e B e f o r e S I T & F I T (1 3 ) 7. 28 1 , 2 2 1 52 5 , 6 3 0 -1 4 5 . 7 5 8 37 9 , 8 7 2 -5 6 8 , 2 1 1 -2 8 , 3 8 4 -2 6 . 5 3 7 51 1 , 7 4 4 -1 1 1 , 3 8 8 Le s s F i x e d C h a r g e s ( - ) 8. 18 1 , 4 4 5 82 3 6 5 96 3 8 92 , 0 0 3 56 8 1 3 19 2 1 34 3 5 27 2 7 3 89 , 4 4 2 Su b t o t l ( l i n e s 7 - 8 ) (1 4 ) 9. 99 , 7 7 6 44 3 . 2 6 5 -1 5 5 , 3 9 6 28 7 . 8 6 9 -6 2 5 , 0 2 4 -3 0 , 3 0 5 -2 9 , 9 7 2 48 4 , 4 7 1 -2 0 0 , 8 3 0 Ot h e r S I T B a s e A d d / O e d . ( + - ) (1 5 ) 10 . 0 0 0 SIT T a x a b l e I n c . ( l i n e s 9 + - 1 0 ) 11 . 99 , 7 7 6 44 , 2 6 5 -1 5 5 , 3 9 6 28 7 , 8 6 9 -6 2 5 , 0 2 4 -3 0 , 3 0 5 48 4 , 4 7 1 -2 0 0 , 8 3 0 72 3 0 S I T - C u r r e n t ( a t 8 % ) (1 6 ) 12 . 9, 3 6 1 35 , 4 6 1 -1 2 , 4 3 2 23 . 0 3 0 -5 0 , 0 0 2 -2 , 4 2 4 0 38 , 7 5 8 -1 3 . 6 6 9 Ot h e r F I T B a s e A d d / O e d . ( + - ) (1 7 ) 13 . 0 0 0 FI T T a x a b l e I n c . ( l i n e s 9 - 1 2 + - 1 3 ) 14 . 90 , 4 1 5 40 7 , 8 0 4 -1 4 2 , 9 6 4 26 4 , 8 3 9 -5 7 5 , 0 2 2 -2 7 , 8 8 1 44 5 , 7 1 3 -1 5 7 , 1 8 9 Gr o s s F I T 15 . 36 , 6 0 1 13 8 , 6 5 3 -4 8 , 6 0 8 90 , 0 4 5 -1 9 5 , 5 0 8 -9 , 4 7 9 0 15 1 , 5 4 3 -5 3 , 4 4 4 72 1 0 P C l a i m e d I T C ( - ) 16 . 0 0 0 Su r t a x E l i m i n a t i o n ( - ) 17 . 0 0 0 72 2 0 F I T - C u r r e n t ( l i n e s 1 5 - 1 6 - 1 7 ) (1 8 ) 18 . 36 , 6 0 1 13 8 , 6 5 3 -4 , 6 0 8 90 , 0 4 5 -1 9 5 , 5 0 8 -9 , 4 7 9 0 15 1 , 5 4 3 -5 3 , 4 4 Pa g e 6 o f 7 20 0 8 F O R M I I N P U T M A S T E R ' Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 2 0 0 8 CO M P A N Y N A M E : M i d v a l e T e l e p h o n e E x c h a n g e . I d a h o S e p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l Id a h o In t r a s t a t e Op e r a t i o n Op e r a t i o n s De s c r i p t i o n No t e Li n e Su b j e c t To In t e r s t a t e In t r a s t a t e No . No . Se p a r a t i o n s To l l To l l EA S Lo c a l ( O t h e r ) Se p a r a t i o n P a r a m e t e r s (1 9 ) Pl a n t SL U M i n u t e s o f U s e ( M O U ) 1. 0 - - - - SL U F a c t o r 2. 1. 0 0 0 0 0 0 0. 3 0 6 2 9 0. 2 3 9 6 7 - 0. 4 5 4 0 4 Ba s e S P F - J a n u a r y 1 3. 1. 0 0 0 0 0 0 0. 2 5 0.2 5 - 0.5 Ba s e S P F - D e c e m b e r 3 1 4. 1. 0 0 0 0 0 0 0. 2 5 0.2 5 - 0.5 Cu r r e n t C o m p o s i t e S P F (2 0 ) 5. 1. 0 0 0 0 0 0 0. 2 5 0.2 5 - 0.5 19 9 6 W e i g h t e d D E M 6. 1. 0 0 0 0 0 0 0. 8 5 - - 0. 1 5 19 9 6 U n w e i g h t e d D E M 7. 0. 3 1 9 5 5 2 0. 3 1 9 5 5 2 0 0 0 Cu r r e n t C A T 3 D i a l E q u i p m e n t M i n u t e s (2 1 ) 8. 0 - - - - Cu r r e n t C o m p o s i t e D E M F a c t o r 9. 1. 0 0 0 0 0 0 0. 8 5 - - 0. 1 5 Ex c h a n g e T r u n k - J o i n t U s e M O U (2 2 ) 10 . 0 - - - - Ho s t / R e m o t e M O U K i l o m e t e r s (2 3 ) 11 . 0 - - - - Eq u a l A c c s s M O U (2 4 ) 12 . 0 - - - - Op e r a t o r S t a n d a r d W o r k S e c o n d s (2 5 ) 13 . 0 - - - - Ta n d e m S w i t c h i n g M O U (2 6 ) 14 . 0 - - - - IX C o n v e r s a t i o n M O U 15 . 0 - - - - IX C o n v e r s a t i o n M i n u t e K i l o m e t e r s 16 . 0 - - - - Ot h e r P a r a m e t e r s Ac c e s s L i n e s 17 . 10 3 4 Un s e p a r a t e d L o o p C o s t ( Q 1 1 . 1 R O R (2 7 ) 18 . 11 0 7 1 0 7 Gr o s s B i l e d R e v e n u e s -M a r k e t i n g A l l o c t i o n B a s i s (2 8 a ) 19 . 0 - - - - -P a y m e n t & C o l l e c t i o n - E n d U s e r (2 8 b ) 20 . 0 0 0 - 0 -P a y m e n t & C o l l e c t i o n - C X R (2 8 c ) 21 . 38 0 , 5 6 2 19 4 5 2 3 18 6 0 3 9 - - Se r v i c e O r d e r C o n t a c t -S e r v i c e O r d e r P r o . - E n d U s e r (2 9 a ) 22 . 6, 1 3 4 0 0 - 61 3 4 -S e r v i c e O r d e r P r o c . - C X R (2 9 b ) 23 . 15 8 7 - - Bi l l n g I n q u i r y C o n t a c t -B i l l n g I n q u i r y - E n d U s e r (3 0 a ) 24 . 12 12 0 - 0 -B i l l i n g I n q u i r y - C X R (3 0 b ) 25 . 48 13 35 SP + R C T o l l M e s s a g e s (3 1 ) 26 . 36 7 , 6 0 9 10 4 4 1 2 26 3 1 9 7 EA S / L o c a l M e s s a g e s ( M s g . P r o c . ) 27 . 0 - - 'B I G 3 ' E x p e n s e F a c t o r - M e s s a g e (3 2 ) 28 . 0. 9 1 0. 4 6 3 6 1 4 0. 2 2 8 0 2 8 0.0 0 8 5 8 5 0. 2 1 2 4 8 4 -P L S & S p e c i a l A c c s s 29 . 0. 0 9 0. 0 7 0 2 9 9 0. 0 1 6 9 8 9 Op e r a t o r S e r v i c e s E x p e n s e - - F a c t o r 30 . 0 - - - - Ac c e s s M i n u t e s o f U s e ( E n d O f f c e ) 31 . 5,8 3 3 , 5 5 0 4, 4 3 8 , 6 9 0 1,3 9 4 , 8 6 0 Pa g e 7 o f 7 20 0 8 F O R M I IN P U T M A S T E R CO M P A N Y N A M E : M i d v a l e T e l e p h o n e E x c h a n g e - I d a h o Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 2 0 0 8 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l Id a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & WA T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t To Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l SU M M A R Y Op e r a t i n g R e v e n u e s 50 X X l o c a l - B i l e d (1 ) 1. 35 4 , 2 6 9 - - 0 - - - 35 4 2 6 9 35 4 , 2 6 9 -E A S B i l e d (1 ) 2. 0 - - 0 - - - - 0 -E A S S e t t l e m e n t (1 ) 3. 0 - - 0 - - - - 0 50 8 X A c c s s - S l C ( E n d U s e r ) (2 ) 4. 47 8 , 6 7 6 99 0 1 6 ° 99 , 0 1 6 ° 0 - 37 9 6 6 0 37 9 , 6 6 0 -S w i t c h e d ( T S + N T S ) (2 ) 5. 2, 3 2 3 , 3 8 3 16 5 2 5 7 2 1,6 5 2 , 5 7 2 68 7 4 0 11 9 5 5 59 0 , 1 1 6 67 0 , 8 1 1 -S p e c i a l (2 ) 6. 25 , 8 9 5 - 25 8 9 5 25 , 8 9 5 - ° - - 0 51 X X T o l l - M e s s a g e (3 a ) 7. 0 ° - 0 - - - - 0 -P n v a t e L i n e (3 b ) 8. 0 - - 0 - - - - 0 -S e t t l e m e n t (3 c ) 9. 0 - - 0 - - - - 0 52 X X M i s c . - B i l i n g & C o l l e c i o n (4 ) 10 . 0 - - 0 0 - - 0 0 -D i r e c t o r y A d v e r t i s i n g 11 . 2,5 9 1 - - 0 - - - 25 9 1 2,5 9 1 -O p e r a t i n g R e n t s 12 . 0 - - 0 - - - ° 0 -O t h e r M i s c . 13 . 55 4 - - 0 - - - 55 4 55 4 53 0 X l e s s : U n c o l l e c t i b l e R e v . ( - ) 14 . -2 5 5 , 9 7 7 0 -2 5 5 9 7 7 -2 5 5 , 9 7 7 To t a l R e v e n u e s 15 . 2, 9 2 9 , 3 9 1 1, 7 5 1 , 5 8 8 25 , 8 9 5 1, 7 7 7 , 4 8 3 68 , 7 4 0 11 , 9 5 5 0 1, 0 7 1 , 2 1 3 1,1 5 1 , 9 0 8 Op e r a t i n g E x p e n s e s 61 X X - 6 4 X X P l a n t S p e c i f i c O p e r . (5 a ) 16 . 1,3 4 4 , 6 4 3 63 7 , 4 7 4 10 4 , 2 6 4 74 1 , 7 3 8 29 3 , 3 2 0 25 , 2 0 4 12 , 8 0 1 27 1 , 5 8 0 60 2 , 9 0 5 65 X X P l a n t N o n s p e c i f c O p e r a t i o n s (5 a ) 17 . 63 , 4 9 8 33 , 0 6 9 3, 0 0 0 36 , 0 6 9 13 , 4 6 6 75 4 67 5 12 , 5 3 4 27 , 4 2 9 65 6 X D e p r e c i a t i o n & A m o r t i z a t i o n (5 a ) 18 . 43 0 , 5 0 4 19 1 , 4 9 3 28 , 1 0 1 21 9 , 5 9 4 12 1 , 8 0 2 5, 5 9 5 8, 4 5 4 75 , 0 5 9 21 0 , 9 1 0 66 X X C u s t o m e r O p e r a t i o n s (5 a ) 19 . 27 7 , 7 9 7 10 0 , 6 2 2 - 10 0 , 6 2 2 88 , 5 3 3 0 0 88 , 6 4 2 17 7 , 1 7 5 67 X X C o r p o r a t e O p e r a t i o n s (5 a ) 20 . 51 4 , 6 9 7 25 0 , 8 2 4 34 , 5 8 3 28 5 , 4 0 7 11 2 , 1 7 8 8, 3 5 8 4, 2 2 3 10 4 , 5 3 1 22 9 , 2 9 0 -- O t h e r O p e r a t i n g (5 a ) 21 . 0 0 0 0 0 0 0 0 0 To t a l E x p e n s e s (5 a ) 22 . 2,6 3 1 , 1 3 9 1, 2 1 3 , 4 8 2 16 9 , 9 4 8 1, 3 8 3 , 4 3 0 62 9 , 2 9 9 39 , 9 1 1 26 , 1 5 3 55 2 , 3 4 6 1, 2 4 7 , 7 0 9 Op e r a t i n g T a x e s : (6 ) 72 4 0 G e n e r a l T a x e s 23 . 0 0 0 72 3 0 S t a t e / l o c a l l n c . T a x ( C u r r e n t ) 24 . -1 1 , 8 6 0 -5 5 1 6 -7 9 5 -6 , 3 1 1 -2 8 5 4 -1 8 5 -1 3 1 -2 3 7 9 -5 , 5 4 9 72 2 0 F e d e r a l In c o m e T a x ( C u r r e n t ) 25 . -5 0 , 4 5 9 -2 3 4 6 8 -3 3 8 2 -2 6 , 8 5 0 -1 2 1 4 3 -7 8 8 -5 5 9 -1 0 1 1 9 -2 3 , 6 0 9 72 5 0 N e t D e f e r r e d I n c o m e T a x e s 26 . 28 7 , 3 3 3 11 6 0 0 6 16 8 9 0 13 2 8 9 6 75 8 1 7 42 4 4 38 0 3 70 5 7 3 15 4 4 3 7 72 1 0 N e t I n v e s t m e n t T a x C r e d i t s 27 . 0 0 0 To t a l Ta x e s 28 . 22 5 , 0 1 4 87 , 0 2 2 12 , 7 1 3 99 , 7 3 5 60 , 8 2 0 3, 2 7 1 3, 1 1 3 58 , 0 7 5 12 5 , 2 7 9 Ne t O p e r a t i n g I n c o m e 29 . 73 , 2 3 8 45 1 , 0 8 4 -1 5 6 , 7 6 6 29 4 , 3 1 8 -6 2 1 , 3 7 9 -3 1 , 2 2 7 -2 9 , 2 6 6 46 0 , 7 9 2 -2 2 1 , 0 8 0 Pa g e 1 o f 7 SU M M A R Y ( c o n t i n u e d ) Av e r a g e R a t e B a s e 20 0 1 T e l e c o m . P l a n t i n S e r v c e (5 b ) 1. 14 , 9 5 8 , 4 0 7 6,0 3 9 , 2 0 8 90 0 , 3 2 8 6, 9 3 9 , 5 3 6 3, 9 2 5 , 9 5 3 22 0 , 9 5 2 19 7 , 9 9 5 3, 6 7 3 , 9 7 1 8,0 1 8 , 8 7 1 20 0 5 P l a n t A c q u i s i t i o n A d j u s t m e n t 2. 0 - - - - 0 - - 31 0 0 L e s s : A c c u m u l a t e d D e p r . ( - ) (5 c ) 3. -9 , 7 2 6 , 8 1 1 -3 , 6 7 1 , 0 9 6 -6 0 0 , 1 1 4 -4 , 2 7 1 , 2 1 0 -2 , 3 1 7 , 8 0 5 -1 6 4 , 8 1 8 -9 9 , 9 4 6 -2 , 8 7 3 , 0 3 2 -5 , 4 5 5 , 6 0 1 34 x x - 3 6 x x A c c u m u l a t e d A m o r t . ( - ) (5 ) 4. 0 - - - - 0 - - 41 0 0 - 4 3 4 0 A c c u m . D e f e r r e d T a x ( - ) 5. 28 7 , 3 3 3 11 6 0 0 6 16 8 9 0 13 2 , 8 9 6 75 8 1 7 42 4 4 38 0 3 70 5 7 3 15 4 , 4 3 7 12 2 0 M a t e r i a l s a n d S u p p l i e s 6. 20 3 8 0 68 0 4 81 8 7,6 2 2 63 0 3 22 1 34 5 58 8 9 12 , 7 5 8 -- E q u a l A c c e s s E q u i p m e n t (7 ) 7. 0 - 0 - 0 - -- - O t h e r R a t e B a s e 8. 15 3 , 0 6 2 71 7 6 5 10 3 0 8 82 , 0 7 3 35 5 8 8 24 6 9 14 4 2 31 4 9 0 70 , 9 8 9 To t a l A v e r a g e R a t e B a s e 9. 5,6 9 2 , 3 7 1 2, 5 6 2 , 6 8 7 32 8 , 2 3 0 2,8 9 0 , 9 1 7 1, 7 2 5 , 8 5 6 63 , 0 6 8 10 3 , 6 3 9 90 8 , 8 9 1 2, 8 0 1 , 4 5 4 Pa g e 2 o f 7 PL A N T I N S E R V I C E D E T A I L 21 X X G e n e r a l S u p p o r t F a c i l t i e s 1. 1, 9 2 8 , 2 1 8 77 8 , 4 8 6 11 3 , 3 4 6 89 1 , 8 3 2 50 8 , 7 8 7 28 , 4 8 2 25 , 5 2 3 47 3 , 5 9 4 1, 0 3 6 , 3 8 6 22 X X C e n t r a l O f f c e E q u i p m e n t : CA T 1 - 0 p e r a t o r S y s t e m s 2. 0 0 0 CA T 2 - T a n d e m S w i t c h i n g ( A l l o c . ) 3. 0 0 0 CA T 2 - T a n d e m S w i t c h i n g ( A s s i g n . ) 4. 0 0 0 CA T 3 - L o c a l S w i t c h i n g 5. 1, 6 6 0 , 1 4 0 14 1 1 1 1 9 1, 4 1 1 , 1 1 9 24 9 0 2 1 24 9 , 0 2 1 CA T 4 . 1 2 - E x c h . T r u n k ( J o i n t U s e ) 6. 25 , 7 8 5 0 25 7 8 5 25 , 7 8 5 CA T 4 . 1 2 - E x c h . T r u n k ( O e d . U s e ) 7. 46 3 , 6 3 6 39 4 3 6 9 39 4 , 3 6 9 69 2 6 7 69 , 2 6 7 CA T 4 . 1 3 - S u b s c r . L i n e ( J o i n t U s e ) 8. 90 3 , 4 2 1 22 3 7 3 7 25 2 6 6 24 9 , 0 0 3 20 2 7 0 7 42 3 5 44 7 4 7 6 65 4 , 4 1 8 CA T 4 . 1 3 - S u b s c r . L i n e ( O e d . U s e ) 9. 0 0 0 CA T 4 . 2 3 - I X T r u n k ( J o i n t U s e ) 10 . 1, 2 6 7 , 5 4 6 73 3 0 4 7 0 73 3 , 0 4 7 53 4 4 9 9 0 53 4 , 4 9 9 CA T 4 . 2 3 - I X T r u n k C k t . ( O e d . U s e ) 11 . 24 , 9 6 7 0 96 0 3 9,6 0 3 0 15 3 6 4 15 , 3 6 4 CA T 4 . 3 - H o s t / R e m o t e T r u n k C k t . 12 . 0 0 0 0 0 0 Ot h e r C O E 13 . 19 , 6 4 6 0 98 3 7 9, 8 3 7 0 98 0 9 0 0 9,8 0 9 To t a l C O E 14 . 4, 3 6 5 , 1 4 1 2, 3 6 7 , 9 0 3 43 9 , 0 7 5 2,8 0 6 , 9 7 8 73 7 , 2 0 6 98 , 6 7 5 25 , 7 8 5 69 6 , 4 9 7 1, 5 5 8 , 1 6 3 23 X X I n f o r m a t i o n O r l g . l T e r m . E q u i p m e n t : CA T 1 - R e g u l a t e d C P E 15 . 0 0 0 Oth e r lO T 16 . 0 0 0 To t a l lO T 17 . 0 0 0 0 0 0 0 0 0 24 X X C a b l e & W i r e F a c i l t i e s : CA T 1 . 3 - S u b s c r l b e r L i n e ( C o m m o n ) 18 . 5, 0 0 7 , 7 6 0 12 5 1 9 4 0 0 1,2 5 1 , 9 4 0 12 5 1 9 4 0 0 25 0 3 8 8 0 3, 7 5 5 , 8 2 0 CA T 1 . 1 , 2 - S u b s c r l b e r L i n e ( O e d . ) 19 . 47 , 4 0 0 23 7 0 0 23 , 7 0 0 23 7 0 0 23 , 7 0 0 CA T 2 - E x c h . T r u n k ( J o i n t U s e ) 20 . 14 6 , 6 8 7 0 14 6 6 8 7 14 6 , 6 8 7 CA T 2 - E x c h . T r u n k ( O e d . U s e ) 21 . 52 , 9 7 8 18 9 7 2 18 , 9 7 2 34 0 6 34 , 0 0 6 CA T 3 - I X T r u n k ( J o i n t U s e ) 22 . 3, 3 7 0 , 0 6 9 16 4 0 8 7 9 29 0 1 6 4 1,9 3 1 , 0 4 3 14 2 8 0 2 0 11 0 0 6 1, 4 3 9 , 0 2 6 CA T 3 - I X T r u n k ( O e d . U s e ) 23 . 40 , 1 5 4 15 0 7 1 15 , 0 7 1 25 0 8 3 25 , 0 8 3 CA T 4 - H o s t / R e m o t e T r u n k 24 . 0 0 0 0 0 0 Ot h e r C & W F 25 . 0 0 0 To t a I C & W F 26 . 8, 6 6 5 , 0 4 8 2, 8 9 2 , 8 1 9 34 7 , 9 0 7 3, 2 4 0 , 7 2 6 2, 6 7 9 , 9 6 0 93 , 7 9 5 14 6 , 6 8 7 2, 5 0 3 , 8 8 0 5, 4 2 4 , 3 2 2 26 X X O t h e r A s s e t s : Ca p i t a l L e a s e s 27 . 0 0 0 Le a s e h o l d I m p r o v e m e n t s 28 . 0 0 0 In t a n g i b l e s 29 . 0 0 0 To t a l O t h e r A s s e t s 30 . 0 0 0 0 0 0 0 0 0 To t a l T e l e c o m . P l a n t i n S e r v i c e (5 b ) 31 . 14 , 9 5 8 , 4 0 7 6, 0 3 9 , 2 0 8 90 0 , 3 2 8 6, 9 3 9 , 5 3 6 3, 9 2 5 , 9 5 3 22 0 , 9 5 2 19 7 , 9 9 5 3,6 7 3 , 9 7 1 8, 0 1 8 , 8 7 1 De p r e c i a t i o n & A m o r t i z a t i o n Ac c u m u l a t e d D e p r e c i a t i o n D e t a i l 31 1 X G e n e r a l S u p p o r t F a c i l t i e s 1. -1 , 3 2 6 , 5 9 0 -5 3 5 5 8 9 -7 7 9 8 1 -6 1 3 , 5 7 0 .3 5 0 0 3 9 -1 9 5 9 5 .1 7 5 5 9 -3 2 5 8 2 7 -7 1 3 , 0 2 0 31 2 X C e n t r a l O f f c e S w i t c h i n g 2. -1 , 1 1 3 , 1 7 1 .9 4 6 1 9 5 0 -9 4 6 , 1 9 5 0 0 0 -1 6 6 9 7 6 -1 6 6 , 9 7 6 31 2 X O p e r a t o r S y s t e m s 3. 0 0 0 31 2 X C e n t r a l O f f c e T r a n s m i s s i o n 4. -2 , 3 6 6 , 6 6 1 -8 4 4 9 5 3 -3 6 1 2 2 7 -1 , 2 0 6 , 1 8 0 -6 6 8 5 3 0 -8 2 4 0 5 .2 2 3 5 5 -3 8 7 1 9 1 -1 , 1 6 0 , 4 8 1 31 3 X I n f o r m a t i o n O r l g . l T e r m . E q u i p . 5. 0 0 0 31 4 X C a b l e & W i r e F a c i l t i e s 6. -4 , 9 2 0 , 3 8 9 -1 3 4 4 3 5 9 -1 6 0 9 0 6 -1 , 5 0 5 , 2 6 5 -1 2 9 9 2 3 6 -6 2 8 1 8 .6 0 0 3 2 -1 9 9 3 0 3 8 -3 , 4 1 5 , 1 2 4 To t a l A c c u m u l a t e d D e p r e c i a t i o n (5 c ) 7. -9 , 7 2 6 , 8 1 1 -3 , 6 7 1 , 0 9 6 .6 0 0 , 1 1 4 -4 , 2 7 1 , 2 1 0 -2 , 3 1 7 , 8 0 5 -1 6 4 , 8 1 8 -9 9 , 9 4 6 -2 , 8 7 3 , 0 3 2 -5 , 4 5 5 , 6 0 1 Ac c u m u l a t e d A m o r t i z a t i o n D e t a i l 34 1 0 C a p i t a l L e a s e s 8. 0 0 0 34 2 0 L e a s e h o l d I m p r o v e m e n t s 9. 0 0 0 35 0 0 I n t a n g i b l e s 10 . 0 0 0 36 0 0 A c q u i s i t i o n A d j u s t m e n t 11 . 0 0 0 To t a l A c c u m u l a t e d A m o r t i z a t i o n (5 c ) 12 . 0 0 0 0 0 0 0 0 0 Pa g e 3 0 f 7 OP E R A T I N G E X P E N S E D E T A I L 61 X X - 6 4 X X P l a n t S p e c i f i c O p e r a t i o n s 61 1 0 - 2 0 G e n e r a l S u p p o r t F a c i l t i e s 1. 62 , 1 7 4 25 1 0 2 36 5 5 28 , 7 5 7 16 4 0 5 91 8 82 3 15 2 7 1 33 , 4 1 7 62 1 X Ce n t r a l O f f c e S w i t c h i n g 2. 47 7 , 6 5 8 25 9 1 0 8 45 7 4 5 30 4 , 8 5 3 82 9 7 1 10 7 9 8 28 2 2 76 2 1 4 17 2 , 8 0 5 62 2 0 Op e r a t o r S y s e m s 3. 0 0 0 62 3 X Ce n t r a l O f f c e T r a n s m i s s i o n 4. 40 5 , 4 4 2 21 9 9 3 5 38 8 2 9 25 8 , 7 6 4 70 4 2 6 91 6 5 23 9 5 64 6 9 2 14 6 , 6 7 8 63 X X In f o r m a t i o n O r i g . f T e r m . E q u i p . 5. 0 0 0 64 X X Ca b l e & W i r e F a c i l t i e s 6. 39 9 , 3 6 9 13 3 3 2 9 16 0 3 5 14 9 , 3 6 4 12 3 5 1 8 43 2 3 67 6 1 11 5 4 0 3 25 0 , 0 0 5 To t a l P l a n t S p e c i f i c (5 a ) 7. 1, 3 4 4 , 6 4 3 63 7 , 4 7 4 10 4 , 2 6 4 74 1 , 7 3 8 29 3 , 3 2 0 25 , 2 0 4 12 , 8 0 1 27 1 , 5 8 0 60 2 , 9 0 5 65 X X P l a n t N o n s p e c i f i c O p e r a t i o n s (8 ) 65 1 2 Pr o v i s i o n i n g 8. 0 0 0 65 3 X Ne t w o r k O p e r a t i o n s 9. 51 , 0 3 3 20 6 0 4 30 0 0 23 , 6 0 4 13 4 6 6 75 4 67 5 12 5 3 4 27 , 4 2 9 65 4 0 Ac c s s P a i d t o L E C s (9 ) 10 . 12 , 4 6 5 12 4 6 5 12 , 4 6 5 0 To t l P l a n t N o n s p e c i f i c (5 a ) 11 . 63 , 4 9 8 33 , 0 6 9 3, 0 0 0 36 , 0 6 9 13 , 4 6 6 75 4 67 5 12 , 5 3 4 27 , 4 2 9 65 6 X D e p r e c i a t i o n & A m o r t i z a t i o n (8 ) 65 6 1 Ge n e r a l S u p p o r t F a c i l t i e s 12 . 63 , 0 8 6 25 4 7 0 37 0 8 29 , 1 7 8 16 6 4 6 93 2 83 5 15 4 9 5 33 , 9 0 8 65 6 1 Ce n t r a l O f f c e S w i t c h i n g 13 . 53 , 3 2 2 45 3 2 4 45 , 3 2 4 79 9 8 7, 9 9 8 65 6 1 Op e r a t o r S y s t e m s 14 . 0 0 0 65 6 1 Ce n t r a l O f c e T r a n s m i s s i o n 15 . 56 , 4 5 9 25 2 9 7 48 5 5 30 , 1 5 2 1 19 0 9 7 21 2 9 26 8 48 1 3 26 , 3 0 7 65 6 1 In f o r m a t i o n O r i g . f T e r m . E q u i p . 16 . 0 0 0 65 6 1 Ca b l e & W i r e F a c i l t i e s 17 . 25 7 , 6 3 7 95 4 0 2 19 5 3 8 11 4 , 9 4 0 1 86 0 5 9 25 3 4 73 5 1 46 7 5 3 14 2 , 6 9 7 65 6 3 Ca p i t a l L e a s e s 18 . 0 0 0 65 6 3 Le a s e h o l d I m p r o v e m e n t s 19 . 0 0 0 65 6 4 In t a n g i b l e s 20 . 0 0 0 65 6 5 Ac q u i s i t i o n A d j u s t m e n t 21 . 0 0 0 To t a l D e p r e c i a t i o n & A m o r t i z a t i o n (5 a ) 22 . 43 0 , 5 0 4 19 1 , 4 9 3 28 , 1 0 1 21 9 , 5 9 4 1 12 1 , 8 0 2 5, 5 9 5 8, 4 5 4 75 , 0 5 9 21 0 , 9 1 0 Pa g e 4 o f ? OP E R A T I N G E X P E N S E ( c o n t i n u e d ) 66 X X C u s t o m e r O p e r a t i o n s 66 1 X Ma r k e t i n g 1. 0 0 0 0 0 0 0 0 66 2 X Op e r a t o r S e r v i c e s 2. 2, 8 5 2 0 28 5 2 0 2, 8 5 2 66 2 X Di r e c t o r y P u b l i s h i n g - A l p h a . 3. 0 0 0 0 0 0 66 2 X Dir e c t o r y P u b l i s h i n g - C l a s s i f i e d 4. 0 0 0 66 2 X Dir e c t o r y P u b l i s h i n g - F o r e i g n 5. 0 0 0 66 2 3 Se r v i c e O r d e r P r o c . - E n d U s e r 6. 34 , 8 3 2 15 7 6 1 15 , 7 6 1 60 0 9 13 0 6 2 19 , 0 7 1 66 2 3 Pa y m e n t & C o l l e c t i o n - E n d U s e r 7. 26 , 1 2 4 81 3 5 8, 1 3 5 89 0 1 90 8 8 17 , 9 8 9 66 2 3 Bi l i n g I n q u i r y - E n d U s e r 8. 26 , 1 2 4 65 3 1 6, 5 3 1 91 4 3 10 4 5 0 19 , 5 9 3 66 2 3 Se r v i c e O r d e r P r o c . - C X R 9. 0 0 0 66 2 3 Pa y m e n t & C o l l e c t i o n - C X R 10 . 0 0 0 66 2 3 Bi l i n g I n q u i r y - C X R 11 . 0 0 0 66 2 3 Co i n A d m i n i s t r a t i o n 12 . 0 0 0 66 2 3 Re v . A c c t g . - T o l l T i c k e t P r o c . 13 . 0 0 0 66 2 3 Re v . A c c t g . - L o c a l M e s s . P r o c . 14 . 2, 4 9 3 70 8 70 8 17 8 5 1, 7 8 5 66 2 3 Re v . A c c t g . - O t h e r B i l & C o l i . 15 . 33 , 4 0 5 99 6 3 9, 9 6 3 11 7 2 1 11 7 2 1 23 , 4 4 2 66 2 3 Re v . A c c g . - S L C B i l l n g 16 . 1, 7 5 8 17 5 8 1, 7 5 8 0 66 2 3 Re v . A c c t g . - C X R B & C (9 ) 17 . 0 74 5 5 7, 4 5 5 52 8 2 5,2 8 2 66 2 3 B & C A m t s P a i d t o L E C s (9 ) 18 . 0 0 0 66 2 3 Ot h e r C u s t o m e r S e r v i c e 19 . 13 7 , 4 7 2 50 3 1 1 50 , 3 1 1 42 8 4 0 44 3 2 1 87 , 1 6 1 To t a l C u s t o m e r O p e r a t i o n s (5 a ) 20 . 26 5 , 0 6 0 10 0 , 6 2 2 0 10 0 , 6 2 2 88 , 5 3 3 0 0 88 , 6 4 2 17 7 , 1 7 5 67 X X C o r p o r a t e O p e r a t i o n s : 67 1 X Ex e c u t i v e & P l a n n i n g 21 . 18 5 , 3 7 0 85 9 4 1 13 0 3 1 98 , 9 7 2 42 2 7 0 31 4 9 15 9 1 39 3 8 8 86 , 3 9 8 67 2 X Ge n e r a l & A d m i n i s t r a t i v e 22 . 32 9 , 3 2 7 16 4 8 8 3 21 5 5 2 18 6 , 4 3 5 69 9 0 8 52 0 9 26 3 2 65 1 4 3 14 2 , 8 9 2 67 2 8 EA S S e t t l e m e n t E x p e n s e 23 . 0 0 0 To t a l C o r p o r a t e O p e r a t i o n s (5 a ) 24 . 51 4 , 6 9 7 25 0 , 8 2 4 34 , 5 8 3 28 5 , 4 0 7 11 2 , 1 7 8 8, 3 5 8 4, 2 2 3 10 4 , 5 3 1 22 9 , 2 9 0 -- - O t h e r O p e r a t i n g E x p e n s e s : -- - - Eq u a l A c c s s P r o v i s i o n (1 0 ) 25 . 0 0 0 -- - Un i v e r s a l S e r v i c e F u n d (1 1 ) 26 . 0 0 0 -- - Li f e l i n e C o n n e c t i o n A s s i s t a n c e (1 2 ) 27 . 0 0 0 To t a l Oth e r (5 a ) 28 . 01 0 0 0 0 0 0 0 0 To t a l O p e r a t i n g E x p e n s e s (5 a ) 29 . 2, 6 1 8 , 4 0 2 1 1,2 1 3 , 4 8 2 16 9 , 9 4 8 1, 3 8 3 , 4 3 0 62 9 , 2 9 9 39 , 9 1 1 26 , 1 5 3 55 2 , 3 4 6 1, 2 4 7 , 7 0 9 Pa g e 5 o f 7 OP E R A T I N G T A X E S D E T A I L 72 4 0 G e n e r a l T a x e s 72 4 0 Pr o p e r t 1. 29 , 0 0 0 11 7 0 8 17 0 5 13 , 4 1 3 76 5 2 42 8 38 4 71 2 3 15 , 5 8 7 72 4 0 Gr o s s R e c e i p t s 2. 0 0 0 72 4 0 PU C F e e 3. 0 0 0 72 4 0 Fr a n c h i s e F e e s 4. 0 0 0 72 4 0 Ot h e r 5. 76 8 76 8 76 8 0 To t a l G e n e r a l T a x e s 6. 29 , 7 6 8 12 , 4 7 6 1, 7 0 5 14 , 1 8 1 7,6 5 2 42 8 38 4 7,1 2 3 15 , 5 8 7 72 X X In c o m e T a x e s ( C a l c u l a t e d ) Ne t I n c o m e B e f o r e S I T & F I T (1 3 ) 7. 28 1 , 2 2 1 52 5 , 6 3 0 -1 4 5 , 7 5 8 37 9 , 8 7 2 -5 6 8 , 2 1 1 -2 8 , 3 8 4 -2 6 , 5 3 7 51 1 , 7 4 4 -1 1 1 , 3 8 8 Le s s F i x e d C h a r g e s ( - ) 8. 18 1 , 4 4 5 82 3 6 5 96 3 8 92 , 0 0 3 56 8 1 3 19 2 1 34 3 5 27 2 7 3 89 , 4 4 2 Su b t o t a l ( l i n e s 7 - 8 ) (1 4 ) 9. 99 , 7 7 6 44 3 , 2 6 5 -1 5 5 , 3 9 6 28 7 , 8 6 9 -6 2 5 , 0 2 4 -3 0 , 3 0 5 -2 9 , 9 7 2 48 4 , 4 7 1 -2 0 0 , 8 3 0 Ot h e r S I T B a s e A d d / O e d . ( + - ) (1 5 ) 10 . 0 0 0 SI T T a x a b l e I n c . ( l i n e s 9 + - 1 0 ) 11 . 99 , 7 7 6 44 , 2 6 5 -1 5 5 , 3 9 6 28 7 , 8 6 9 -6 2 5 , 0 2 4 -3 0 , 3 0 5 48 4 , 4 7 1 -2 0 0 , 8 3 0 72 3 0 S I T - C u r r e n t ( a t 8 % ) (1 6 ) 12 . 9, 3 6 1 35 , 4 6 1 -1 2 , 4 3 2 23 , 0 3 0 -5 0 , 0 0 2 -2 , 4 2 4 0 38 , 7 5 8 -1 3 , 6 6 9 Ot h e r F I T B a s e A d d / O e d . ( + - ) (1 7 ) 13 . 0 0 0 FI T T a x a b l e I n c . ( l i n e s 9 - 1 2 + - 1 3 ) 14 . 90 , 4 1 5 40 7 , 8 0 4 -1 4 2 , 9 6 4 26 4 , 8 3 9 -5 7 5 , 0 2 2 -2 7 , 8 8 1 44 5 , 7 1 3 -1 5 7 , 1 8 9 Gr o s s F I T 15 . 36 , 6 0 1 13 8 , 6 5 3 -4 8 , 6 0 8 90 , 0 4 5 -1 9 5 , 5 0 8 -9 , 4 7 9 0 15 1 , 5 4 3 -5 3 , 4 4 72 1 0 P C l a i m e d I T C ( - ) 16 . 0 0 0 Su r t a x E l i m i n a t i o n ( - ) 17 . 0 0 0 72 2 0 F I T - C u r r e n t ( l i n e s 1 5 - 1 6 - 1 7 ) (1 8 ) 18 . 36 , 6 0 1 13 8 , 6 5 3 -4 , 6 0 8 90 , 0 4 5 -1 9 5 , 5 0 8 -9 , 4 7 9 0 15 1 , 5 4 3 -5 3 , 4 4 Pa g e 6 o f 7 20 0 8 F O R M I IN P U T M A S T E R ' Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 2 0 0 8 CO M P A N Y N A M E : M i d v a l e T e l e p h o n e E x c h a n g e - I d a h o S e p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l Id a h o In t r a s t a t e Op e r a t i o n Op e r a t i o n s De s c r i p t i o n No t e Li n e Su b j e c t To In t e r s t a t e In t r a s t a t e No . No . Se p a r a t i o n s To l l To l l EA S Lo c a l ( O t h e r ) Se p a r a t i o n P a r a m e t e r s (1 9 ) Pl a n t SL U M i n u t e s o f U s e ( M O U ) 1. 0 - - - - SL U F a c t o r 2. 1. 0 0 0 0 0 0 0.3 0 6 2 9 0. 2 3 9 6 7 - 0.4 5 4 0 4 Ba s e S P F - J a n u a r y 1 3. 1. 0 0 0 0 0 0 0. 2 5 0. 2 5 - 0. 5 Ba s e S P F - D e c e m b e r 3 1 4. 1. 0 0 0 0 0 0 0. 2 5 0. 2 5 - 0. 5 Cu r r e n t C o m p o s i t e S P F (2 0 ) 5. 1. 0 0 0 0 0 0 0. 2 5 0. 2 5 - 0. 5 19 9 6 W e i g h t e d D E M 6. 1. 0 0 0 0 0 0 0. 8 5 - - 0. 1 5 19 9 6 U n w e i g h t e d D E M 7. 0.3 1 9 5 5 2 0. 3 1 9 5 5 2 0 0 0 Cu r r e n t C A T 3 D i a l E q u i p m e n t M i n u t e s (2 1 ) 8. 0 - - - - Cu r r e n t C o m p o s i t e D E M F a c t o r 9. 1.0 0 0 0 0 0 0. 8 5 - - 0. 1 5 Ex c h a n g e T r u n k - J o i n t U s e M O U (2 2 ) 10 . 0 - - - - Ho s t / R e m o t e M O U K i l o m e t e r s (2 3 ) 11 . 0 - - - - Eq u a l A c c s s M O U (2 4 ) 12 . 0 - - - - Op e r a t o r S t a n d a r d W o r k S e c o n d s (2 5 ) 13 . 0 - - - - Ta n d e m S w i t c h i n g M O U (2 6 ) 14 . 0 - - - - iX C o n v e r s a t i o n M O U 15 . 0 - - - - iX C o n v e r s a t i o n M i n u t e K i l o m e t e r s 16 . 0 - - - - Ot h e r P a r a m e t e r s Ac c s s L i n e s 17 . 10 3 4 Un s e p a r a t e d L o o p C o s t ( ! 1 1 . 1 R O R (2 7 ) 18 . 11 0 7 1 0 7 Gr o s s B i l e d R e v e n u e s -M a r k e t i n g A l l o c a t i o n B a s i s (2 8 a ) 19 . 0 - - - - -P a y m e n t & C o l l e c t i o n - E n d U s e r (2 8 b ) 20 . 0 0 0 - 0 -P a y m e n t & C o l l e c t i o n - C X R (2 8 c ) 21 . 38 0 , 5 6 2 19 4 5 2 3 18 6 0 3 9 - - Se r v i c e O r d e r C o n t a c t s -S e r v i c e O r d e r P r o c . - E n d U s e r (2 9 a ) 22 . 6,1 3 4 0 0 - 61 3 4 -S e r v i c e O r d e r P r o c . - C X R (2 9 b ) 23 . 15 8 7 - - Bi l i n g I n q u i r y C o n t a c t -B i l i n g I n q u i r y - E n d U s e r (3 0 a ) 24 . 12 12 0 - 0 -B i l l n g I n q u i r y - C X R (3 0 b ) 25 . 48 13 35 SP + R C T o l l M e s s a g e s (3 1 ) 26 . 36 7 , 6 0 9 10 4 4 1 2 26 3 1 9 7 EA S / L o c l M e s s a g e s ( M s g . P r o c . ) 27 . 0 - - 'B I G 3 ' E x p e n s e F a c t o r - M e s s a g e (3 2 ) 28 . 0. 9 1 0. 4 6 3 6 1 4 0. 2 2 8 0 2 8 0. 0 8 5 8 5 0. 2 1 2 4 8 4 -P L S & S p e c i a l A c c s s 29 . 0. 0 9 0. 0 7 0 2 9 9 0. 0 1 6 9 8 9 Op e r a t o r S e r v i c e s E x p e n s e - - F a c t o r 30 . 0 - - - - Ac c e s s M i n u t e s o f U s e ( E n d O f f c e ) 31 . 5, 8 3 3 , 5 5 0 4, 4 3 8 , 6 9 0 1, 3 9 4 , 8 6 0 Pa g e 7 o f 7 41 2 9 1 2 0 1 0 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 stu 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 8-1 stu d y Y e a r . 2 0 0 8 -T õ ; = ; : L CO M P A N Y 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 10 1 Ib l le i (d J ie I i~ (0 1 1 N e t T e l e c o m P l a n t Ln 4 6 5, 2 2 1 , 7 5 3 2,2 6 3 , 5 0 4 27 9 , 5 3 5 10 9 , 1 8 1 15 6 , 3 5 0 1,4 6 . 3 5 6 56 . 1 1 6 97 . 4 1 0 79 3 , 3 0 2 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 B A S E Ln 1 . 2 5, 2 2 1 , 7 5 3 2,2 6 3 , 5 0 4 27 9 , 5 3 5 10 9 , 1 8 1 15 6 , 3 5 0 1,4 6 6 , 3 6 6 56 , 1 1 6 97 , 4 1 0 79 3 . 3 0 2 4 R a t e o f R e t u r n Re c r d s 8, 6 1 7 4 % 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 44 9 , 9 7 7 25 4 . 6 4 4 31 , 4 4 8 12 , 2 8 3 9,2 2 5 86 , 5 1 5 3,3 1 1 5,7 4 7 46 , 8 0 5 6 R e t u r n A d j u s t m n t # 1 Re c o r d s 7 N E T RE T U R N Ln 5 - 44 9 , 9 7 7 25 4 , 6 4 4 31 , 4 4 8 12 , 2 8 3 9, 2 2 5 86 , 5 1 5 3, 3 1 1 5.7 4 7 1 :1 46 , 8 0 5 8 F i x e d C h a r g e s Ln 2 4 18 1 . 4 4 5 78 . 5 4 3 9, 6 3 8 3,8 2 2 5A 5 5 51 , 3 5 8 1,9 2 1 3,4 3 5 27 . 2 7 3 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 Ln 4 7 10 C a p i t a l i z e d P a y r l l T a x e s Ln 5 0 11 D e p r e c i a t i o n A d j u s t m e n t Ln 5 3 12 S c h e d u l e M I n c o m e T a x A d j u s t m e n t s 8-1 4 , L n 2 2 13 F I T A l I o w n c e s J i s a l l o w a n c e s Ln 2 2 14 In c A d j A 1 l o c o n 2 0 0 1 Ln 5 9 + 6 0 15 In c A d j A l l o c o n B i g 3 E x p Ln 6 1 +6 2 16 T o t a l M i s e I n c A d j u s t m e n t ln 6 3 17 A F T E R T A X I N C O M E No t e 1 26 8 , 5 3 2 17 6 , 1 0 1 21 , 8 1 0 8. 6 1 3.7 7 0 35 , 1 5 7 1, 3 9 0 2, 3 1 2 19 , 5 3 1 18 S t a t e I n c o m e T a x ln 5 3 o r 8 - 1 4 , L n 2 0 36 , 4 6 23 , 9 1 3 2.9 6 2 1,1 4 9 51 2 4,7 7 4 18 9 31 4 2.6 5 2 19 S t a t e I T C A m o r t a t i o n Ln 4 5 20 N e t F e d e r a l In c o m e T a x Ln 4 13 8 , 3 3 5 90 , 7 1 9 11 , 2 3 5 4, 3 5 9 1, 9 4 2 18 , 1 1 1 71 6 1,1 9 1 10 , 0 6 2 21 F e d e r a l I T C A m o r t i z a t i o n Ln 4 4 22 O p e r a n g E x p e n s e s & T a x e s ln 1 7 2, 5 2 3 , 4 3 4 1,1 3 5 , 4 6 3 17 1 , 6 5 3 40 , 1 8 4 65 , 1 0 2 52 9 , 0 0 8 40 , 3 3 9 26 , 5 3 7 51 5 , 1 4 9 23 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 24 U n c o U e c t i b l e s Ln 5 7 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 8 . . 2 4 3, 1 4 8 , 2 1 0 1,5 0 4 , 7 3 8 21 7 , 2 9 7 57 , 9 7 4 76 , 7 8 1 63 8 . 4 6 8 44 , 5 5 5 33 . 7 8 9 57 4 , 6 6 7 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 I w F d s U s e d O u r C o n s t r ln 1 5 8,7 3 9 3, 3 8 7 51 4 14 1 21 9 2,0 8 7 12 9 11 6 2.1 4 6 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 3, 1 3 9 , 4 7 1 1,5 0 1 , 3 5 1 21 6 , 7 8 4 57 . 8 3 4 76 , 5 6 2 63 6 , 3 2 1 44 , 4 2 6 33 , 6 7 3 57 2 , 5 2 1 29 D i s t r i b u t o n o f l i n e 3 ( ln 2 8 / 2 8 a 10 0 . 0 0 0 0 % 47 . 8 2 1 8 % 6.9 0 5 1 % 1.8 4 2 1 % 2.4 3 8 7 % 20 , 2 6 8 4 % 1. 4 1 5 1 % 1.0 7 2 6 % 18 . 2 3 2 % I IN C O M E T A X E S 1 30 N e t R e t r n Ln 7 44 9 , 9 7 7 25 4 , 8 4 4 31 . 4 4 8 1 12 , 2 8 3 :1 9,2 2 5 :1 86 , 5 1 5 3.3 1 1 1 5.7 4 7 1 :1 46 . 8 0 5 31 F i x e d C h a r g e s Ln 8 18 1 , 4 4 5 78 , 5 4 3 9,6 3 8 3, 8 2 2 5,4 5 5 51 . 3 5 8 1,9 2 1 3,4 3 5 27 . 2 7 3 32 A m o r t i z 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 U 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 S c h e d u l e M I n c o m e T a x A d j u s t m n t Ln 1 2 36 F I T A l l o w n c e s J i s a l l o w a n c e s ln 1 3 37 In c A d j A l l o c o n 2 0 0 1 Ln 1 4 38 In c A d j A 1 l o c o n B i g 3 E x p Ln 1 5 39 F e d e r a l T C A m o r t i z a t o n Ln 4 4 40 To t l I n c o m e A d j u s t m e n t Ln 3 1 + 3 6 . . 3 8 18 1 , 4 4 5 78 , 5 4 3 9,6 3 8 3. 8 2 2 5,4 5 5 51 , 3 5 8 1.9 2 1 3,4 3 5 27 , 2 7 3 41 F e d e r a l Ta x a b l e I n c o m e ln 3 Q . G r o s s U p 40 6 , 8 6 7 26 , 8 2 0 33 , 0 4 5 12 , 8 2 0 5.7 1 2 53 . 2 6 8 2.1 0 7 3.0 3 29 , 5 9 3 42 F e d e r a l I n c o m e T a x 34 , 0 0 0 0 % 13 8 , 3 3 5 90 , 7 1 9 11 , 2 3 5 4, 3 5 9 1,9 4 2 18 , 1 1 1 71 6 1, 1 9 1 10 , 0 6 2 43 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 o r d s 44 N e t F e d e r a l I n c o m e T a x Ln 4 2 4 3 - 9 13 8 . 3 3 5 90 , 7 1 9 11 , 2 3 5 4, 3 5 9 1,9 4 2 18 , 1 1 1 71 6 1,1 9 1 10 , 0 6 2 45 N e t R e t u r n Ln 3 0 44 9 , 9 7 7 25 4 , 6 4 4 31 , 4 4 8 12 , 2 8 3 9,2 2 5 86 . 1 5 3. 1 1 5, 7 4 7 46 , 8 0 5 46 F i x e d C h a r g e s Ln 3 1 18 1 , 4 4 5 78 . 4 3 9,6 3 8 3,8 2 2 5,4 5 5 51 , 3 5 8 1,9 2 1 3,3 5 27 , 2 7 3 47 O t h e r S I T A d j u s t m e n t s Re c r d s 48 F e d e r a l I n c o m e T a x Ln 4 2 13 8 , 3 3 5 90 , 7 1 9 11 . 2 3 5 4, 3 5 9 1, 9 4 2 18 , 1 1 1 71 6 1,1 9 1 10 , 0 6 2 49 S t a e T a x a b l e I n c o m e Ln 4 5 - 4 8 G r o s s U p 44 3 , 3 3 1 29 0 , 7 3 2 36 , 0 0 7 13 , 9 6 9 6,2 2 4 58 , 0 4 2 2,2 9 5 3, 8 1 7 32 , 2 4 5 50 S t a I n c o m e T a x 8. 2 2 5 0 % 36 , 4 6 4 23 , 9 1 3 2,9 6 2 1,1 4 9 51 2 4,7 7 4 18 9 31 4 2,6 5 2 51 S t a e S u r . T a x A l I o c a t i o n Re c o r d s 52 s t a t e I T C A m o r t i z a t i o n ln 4 5 53 N e t S t a t e I n c o m e T a x ln 5 0 - 1 - 5 2 1 36 . 4 6 4 1 23 , 9 1 3 2.9 6 2 1 1,1 4 9 .1 51 2 .1 4.7 7 4 18 9 1 31 4 1 .1 2.6 5 2 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , l L P 1 of 27 41 2 9 1 2 0 1 0 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 stu 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 Tõ CO M P A N Y MS G PL MS G PL Mf ~ G ~~ MS G PL LI N E DE S C R I P T I O N SO U R C E a b c d fa (h i Ii i 12 1 1 0 L a n d & Su p p o r t As s e t 8-4 , l n 1 3 1, 9 2 8 , 2 1 8 74 7 . 4 0 7 11 3 . 3 4 6 31 , 0 7 9 48 , 3 9 4 46 0 , 3 9 3 28 , 4 8 2 25 , 5 2 3 47 3 . 9 4 22 2 1 0 C O E - 8 V i t c h i n g S- , l n 3 6 1, 6 6 0 , 1 4 0 1,3 6 1 , 8 1 3 49 , 3 0 6 24 9 , 0 2 1 3 2 2 2 0 C O E . . p e r a r S- 5 , L n 2 42 2 3 0 C O E - T r a n s m i s s i o n S.. , l n 7 7 2,7 0 5 , 0 0 3 92 6 , 5 8 1 41 8 , 0 4 4 30 , 2 0 4 71 , 2 1 4 68 7 , 0 2 3 98 , 6 7 6 25 , 7 8 5 44 7 , 4 7 6 5 2 3 1 0 I n f o O r i g l T e r m E q u i p 8- 6 , l n 1 1 62 4 1 0 C & W F 8- 7 , l n 4 3 8,6 6 5 , 0 4 7 2.7 6 2 . 3 0 8 34 7 , 9 0 7 13 0 , 5 1 0 25 5 , 8 1 3 2, 4 2 4 , 1 4 6 93 , 7 9 4 14 6 , 6 8 7 2, 5 0 3 . 8 0 7 To t l C O E , l O T , C & W F Ln 2 . . 6 13 , 0 3 0 , 1 9 0 5, 0 5 0 , 7 0 3 76 5 , 9 5 1 21 0 , 0 2 0 32 7 , 0 2 7 3, 1 1 1 , 1 7 0 19 2 , 4 7 0 17 2 , 4 7 2 3,2 0 0 , 3 7 7 8 D i s t r i b u t i o n o f L i n e 7 Ln 7 1 7 a 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 9 E q u a l A c c e s s - I n v e s t e n t $- , l n 2 2 10 2 6 8 0 T a n g i b l A s s e t s 8- 8 , l n 3 1 11 T E L E C O M P L T I N 8 V C - X C L 2 6 9 0 Ln 1 + 7 + 9 + 1 0 14 , 9 5 8 , 4 0 7 5,7 9 8 , 1 1 0 87 9 , 2 9 7 24 1 , 0 9 9 37 5 , 4 2 1 3,5 7 1 , 5 6 22 0 , 9 5 2 19 7 , 9 9 5 3,6 7 3 , 9 7 1 12 D i s t r b u o n of Lin e 1 1 Ln 1 1 f 1 1 a 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2. 5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 13 2 6 9 0 I n t n g i b l e A s s e t s 8- , l n 3 5 14 2 0 0 1 T E L E C O M P L A N T I N s v e Ln 1 1 + 1 3 14 , 9 5 8 , 4 0 7 5,7 9 8 , 1 1 0 87 9 . 2 9 7 24 1 , 0 9 9 37 5 . 2 1 3,5 7 1 , 5 6 3 22 0 , 9 5 2 19 7 , 9 9 5 3,6 7 3 , 9 7 1 15 D i s t b u t i o n o f L i n e 1 4 Ln 1 4 f 1 4 a 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2. 5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 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 J a n d Ln 1 4 - 1 6 14 , 9 5 8 , 4 0 7 5,7 9 8 , 1 1 0 87 9 , 2 9 7 24 1 , 0 9 9 37 5 , 4 2 1 3. 5 7 . 5 6 3 22 0 , 9 5 2 19 7 , 9 9 5 3,6 7 3 , 9 7 1 18 D i s t r i b u t o n o f Li n e 1 7 Ln 1 7 f 1 7 a 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 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 8- , 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 i o n 8- , l n 1 0 10 4 , 8 5 1 40 , 6 4 2 6,1 6 3 1,6 9 0 2,6 3 1 25 , 0 3 5 1,5 4 9 1, 3 8 8 25 , 7 5 3 21 2 0 0 5 T e l e c o m P l a n t A d j u s t n t So 9 , l n 1 4 22 T O T A L T E L E C O M P L T Ln 1 4 + 1 9 . . 2 1 15 , 0 6 3 , 2 5 8 5,8 3 8 , 7 5 1 88 5 , 4 6 0 24 2 , 7 8 9 37 8 , 0 5 2 3,5 9 6 , 5 9 8 22 2 , 5 0 1 19 9 , 3 8 2 3, 6 9 9 , 7 2 4 23 1 2 2 0 M a t e r i a l s a n d S u p p l i e s 8- 9 , l n 2 O 20 , 3 7 9 6,4 9 7 81 8 30 7 60 2 5,7 0 1 22 1 34 5 5,8 8 9 24 1 5 0 0 O t h e r J u r i s A s s e t e t 8-1 5 , l n 1 4 25 3 1 0 0 A c m u l a e d D e p r e c i a t i o n 8~ 1 5 , I n 9 9 9,7 2 6 , 8 1 3 3,5 3 9 , 4 1 3 60 0 , 1 1 3 13 1 , 6 8 3 21 9 , 0 3 7 2,0 9 8 , 7 7 0 16 4 , 8 1 8 99 , 9 4 6 2,8 7 3 , 0 3 2 26 E q u a l A c s . A c c u m D e p r e c i a t o n $- , l n 2 4 27 3 2 0 0 A c D e p - l d f o r F u t U s e So 1 5 , l n 1 0 1 28 3 4 0 0 A c c u m A m o r t . T a n g i b l e $.1 5 , l n 1 0 2 . . 1 0 3 29 3 5 0 0 A c c u m A m r t - I n t n g i b l e 8-1 5 , l n 1 0 4 30 3 6 0 0 A c c u m A m o r t - O e r $.1 5 , l n 1 0 5 31 4 1 0 0 N e t Cu r De f O p In c Ta x e s s- 1 5 , l n 1 1 7 I 28 7 . 3 4 1 32 4 3 4 0 N o n c r D e f O p e r I n c T a x 8-1 5 , l n 1 3 7 11 1 , 3 7 5 16 , 8 9 0 I 4, 6 3 1 .1 7, 2 1 1 -I 68 . 6 0 4.2 4 4 1 3,8 0 3 70 , 5 7 3 33 E q u a l A c e s s - D e f e r r d O p e r I n c T a x e s 8-9 , l n 2 5 34 4 3 6 O t h e r D e f e r r d C r e d i t e t 8-1 5 , l n 1 3 8 35 4 3 7 0 O t h e r J u r L i a b & D e f C r e d i t s . e t 8-1 5 , l n 1 4 0 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 5. 0 6 9 . 4 9 1 I 2,1 9 4 , 4 6 0 ~'2 7 5 1 10 6 , 7 8 2 ;1 15 2 , 4 0 6 :1 1,4 3 4 , 9 2 3 53 , 6 5 9 1 95 , 9 7 8 76 2 . 0 0 8 31 D i s t r b u t o n o f L i n e 3 6 Ln 3 6 1 3 6 a 10 0 . 0 0 0 0 ~ 43 . 2 8 7 6 % 5.3 1 1 7 ~ 21 0 6 % 3. 0 0 6 % 28 . 3 0 5 1 % 1. 0 5 8 5 % 1.8 9 3 2 % 15 . 0 3 1 2 % 38 1 4 0 2 R u r a l T e l B a n k S t k B 8- , l n 1 6 39 C a s h W o i 1 n g C a p i t a l C 8-9 , l n 2 1 15 2 , 6 6 2 69 , 1 9 9 10 , 2 8 4 2, 4 0 5 3,9 5 4 .1 31 , 5 2 8 2.4 6 3 1 1,4 3 7 31 , 3 9 2 40 E q u a l A c c s s - U n a m o r t e d E x p e n s e s D 8-9 , l n 2 6 41 I n v s t m e n t A 1 l o f D i s a l l w E 8-9 , l n 3 1 42 A c c u m D e p r f A m o r t A 1 l o w f O i s a l l o w F 8-1 5 , l n 1 4 3 1 40 0 1 43 4 0 4 0 C u s t m e r D e p o s i t G 8-1 5 , l n 1 0 8 15 5 24 1 6 -I 10 -I 96 61 5 98 44 4 3 1 0 O t h e r L o n g - T e r m L i a b . H 8-1 5 , l n 1 2 8 45 O t h e r T e l e c o m P I A d j u s t I Re c o r c s 46 N E T T E L E C O M P L T & O T H R A T E B A S E I T E M S A+ B . . F + i . G + H ) I 5, 2 2 1 , 7 5 3 1 2,2 6 3 , 5 0 4 27 9 , 5 3 5 1 10 9 , 1 8 1 :1 15 6 , 3 5 0 :1 1, 4 6 . 3 5 6 56 , 1 1 6 1 97 , 4 1 0 79 3 . 3 0 2 47 D i s t r i b u t i o n o f U n e 4 6 Ln 4 6 4 6 10 0 . 0 0 0 0 % 43 . 3 4 7 6 % 5. 3 5 3 3 % 2.0 9 0 9 % 2.9 9 4 2 % 28 . 0 8 1 7 % 1.0 7 4 7 % 1.8 6 5 5 % 15 . 1 9 2 2 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 20 f 2 7 41 2 9 1 2 0 1 0 Mi d a l e T e l e p h o n e E x c h a n g e - 1 0 Stu d y A r e a : 4 7 2 2 2 6 SE P A R A T E D E X P E N S E S U M M A R Y s- St u d y Y e a r . 2 0 0 8 .. . ; Û . . . . Ú . . . . I . . i i . . . i . . . . X X .'. ; / . . . i . / ; ; ; . . . . . . TO T A L 'n t e r L T A CO M P A N Y MS G PL MS G PL MS G PL MS G PL LIN E DE S C R I P T I O N SO U R C E la b (e ) (d ) (e ) (f 1. 1 Ih 1 P i t S p e c E x p A c c t s 6 2 1 0 , 6 2 2 0 2 6 2 3 0 , 6 3 1 0 , 6 4 1 0 8- 1 1 , l n 3 0 1,2 8 2 , 4 6 7 59 0 . 2 7 1 10 0 , 6 0 8 22 , 1 0 1 26 , 1 9 7 25 0 , 7 1 8 24 . 2 8 6 11 , 9 7 7 25 6 . 3 0 9 3 P I N o n s p e c A c c o u n t 6 5 3 0 8- 1 2 , l n 1 9 51 , 0 3 3 19 , 7 8 1 3,0 0 0 82 3 1,2 8 1 12 , 1 8 5 75 4 67 5 12 , 5 3 4 4 C u s t O p e r A c c t s 6 6 1 0 , 6 6 2 0 8- 1 3 , l n 5 7 14 0 , 3 2 5 50 , 3 1 1 10 , 8 9 1 34 , 8 0 1 44 , 3 2 1 5 T O T A L B I G T H R E E E X P E N S E S Ln 2 . . 4 1,4 7 3 , 8 2 5 86 0 , 3 6 10 3 , 6 0 8 22 , 9 2 3 38 , 3 7 0 29 7 , 7 0 4 25 , 0 4 0 12 . 6 5 3 31 3 , 1 6 5 6 D i s t r i b u t i o n o f L i n e 5 Ln S / 5 a 10 0 . 0 0 0 0 % 44 . 8 0 6 1 % 7. 0 2 9 9 % 1.5 5 5 3 % 2.6 0 3 4 % 20 . 1 9 9 4 % 1.6 9 8 9 % 0.8 5 8 5 % 21 . 2 4 8 4 % 7 P l a n t S p e c i f i c E x p e n s e s 8-1 1 , l n 3 1 1,3 4 4 , 6 4 1 61 4 , 3 7 1 10 4 . 2 6 3 23 . 1 0 3 27 . 7 5 8 26 5 , 5 6 3 25 , 2 0 4 12 , 8 0 0 27 . 5 8 0 8 P l a n t N o n s p e c i f c E x p e n s e s 8-1 2 , l n 9 1 49 4 , 0 0 2 21 5 , 5 9 9 31 , 1 0 2 8,9 6 2 12 , 9 1 8 12 2 , 3 4 9 6,3 4 9 9,1 3 0 87 , 5 9 4 9 C u s t m e r O p e r a n s E x p n s e s 8- 1 3 , l n 5 7 14 0 , 3 2 5 50 , 3 1 1 10 , 8 9 1 34 , 8 0 1 44 , 3 2 1 10 C o r p o r a e O p e r a i o n s E x p e n s e s s. 1 4 , l n 1 6 51 4 , 6 9 8 24 3 . 1 7 3 34 , 5 8 3 7,8 5 2 12 , 8 0 7 99 , 3 7 1 8,3 5 8 4, 2 2 3 10 4 , 5 3 1 11 7 3 0 0 C o n t r b u t i o n s s. 1 0 , l n 1 6 12 T O T A L O P E R A T I N G E X P E N S E S Ln 7 . . 1 1 2.4 9 3 , 6 6 1,1 2 3 . 5 4 16 9 , 9 4 8 39 , 7 1 7 84 . 3 7 4 52 2 . 0 8 4 39 , 9 1 1 26 , 1 5 3 50 8 , 0 2 13 O p e r a n g T a x e s $.1 4 , l n 2 6 29 , 7 6 12 , 0 0 9 1,7 0 5 48 7 72 8 6, 9 2 4 42 8 38 4 7,1 2 3 14 E q u a l A c e s s E x p e n s e s S~ 1 4 , I n 3 5 15 E x p e n s e A l l o w n c a s / i & a l l o w a n c e s 8-1 4 , l n 4 0 16 5 2 4 0 R e n t R e v n u e s 8-1 0 , l n 4 3 17 T O T A L O P E R A T I N G E X P & T A X E S Ln 1 2 + 1 3 . . 1 5 - 1 6 2,5 2 3 , 4 3 4 1,1 3 5 , 4 6 3 17 1 , 6 5 3 40 . 1 8 4 65 , 1 0 2 52 9 , 0 0 8 40 , 3 3 9 26 , 5 3 7 51 5 , 1 4 9 18 D i s t i b u t i o n o f L i n e 1 7 Ln 1 7 / 1 7 a 10 0 . 0 0 0 0 % 44 . 9 9 6 7 % 6.8 0 3 % 1.5 9 2 4 % 2.5 7 9 9 % 20 . 9 6 3 8 % 1.5 9 8 6 % 1.0 5 1 6 % 20 . 4 1 4 6 % 19 T o t a l D e p r & A m o r S~ 1 2 , 1 n 9 0 43 0 . 5 0 4 18 3 , 3 5 3 28 , 1 0 2 8,1 4 0 11 , 6 3 7 11 0 , 1 6 5 5, 5 9 5 8,4 5 4 75 , 0 5 9 20 F i x e C h a r g e s 8- 1 0 , l n 2 4 18 1 , 4 4 5 78 , 5 4 9,6 3 8 3,8 2 2 5,4 5 5 51 , 3 5 8 1,9 2 1 3,4 3 5 27 , 2 7 3 21 T o t l O p e r a t i g R e v e n u e 8- 1 4 , l n 3 3 22 T o t a l O p e r a t i n g E x p n s e & T a x e s Ln 1 7 2,5 2 3 , 4 3 4 1,1 3 5 , 4 6 3 17 1 , 6 5 3 40 , 1 8 4 65 , 1 0 2 52 9 , 0 0 8 40 , 3 3 9 26 , 5 3 7 51 5 . 1 4 9 23 U n c o l e c t b l e s $. 1 0 , l n 5 7 24 F i x e d C h a r g e s Ln 2 0 18 1 , 4 4 5 78 . 5 4 9,8 3 8 3, 8 2 2 5.5 5 51 , 3 5 8 1, 9 2 1 3.3 5 27 , 2 7 3 25 I n c o m e A d j u s t m e n t s 8- 1 0 , l n 6 3 26 N e t I n c o m e Ln 2 1 . . 2 5 (2 . 7 0 4 . 8 7 9 ) (1 . 2 1 4 , 0 0 ) (1 8 1 , 2 9 0 ) (4 4 . 0 0 ) (7 0 . 5 5 7 ) (5 8 0 , 3 6 ) (4 2 . 2 5 9 ) (2 9 . 7 2 ) (5 4 2 , 4 2 2 ) 1 27 D i s t r b u t i o n o f L i n e 2 6 Ln 2 6 a 10 0 . 0 0 0 0 % 44 . 8 8 2 1 % 6.7 0 2 3 % 1. 6 2 6 9 % 2. 6 0 8 5 % 21 . 4 5 8 3 % 1.5 6 2 3 % 1. 1 0 8 1 % 20 . 0 5 3 5 % 28 T O T A L C A S H O P E R E X P E N S E S Ln 1 7 + 1 & 1 9 + 2 0 2,2 7 4 , 3 7 5 1.0 3 0 . 8 5 3 15 3 , 1 8 8 35 , 8 6 6 58 . 9 2 0 47 0 , 2 0 2 36 , 6 6 5 21 , 5 1 8 46 7 , 3 6 3 29 D i s t i b u t i o n o f U n e 2 8 Ln 2 8 1 2 8 a 10 0 , 0 0 0 0 % 45 . 3 1 5 9 % 8.7 3 5 4 % 1. 5 7 7 0 % 2. 5 9 % 20 . 6 7 3 9 % 1.6 1 2 1 % 0.9 4 6 1 % 20 . 5 4 9 1 % 1 IN C O M E T A X C A L C U L A T I O N 1 30 o t e r O p e r a t i n g I n c o m e 8- 1 4 , l n 3 2 31 A F U D C S~ 1 0 , I n 1 5 1 8.7 3 9 1 3,3 8 7 51 4 1 14 1 .1 21 9 -I 2.0 8 7 12 9 1 11 6 2.1 4 6 32 O p e r a t i n g R e v e n u e S~ 1 4 , I n 3 J . n 3 0 33 U n c o l e c t b l e R e v e n u e S~ 1 0 , I n 5 7 34 I n c o m e E f f c t J u r i s d i c t i o n a l D i f r e n c e S~ 1 0 , I n 8 0 35 I R S I n c o m e A d j u s t m n t S~ 1 0 , I n 6 2 38 T O T A L R E V E N U E & O T H E R I N C O M E Ln 3 0 . . 3 5 8,7 3 9 3,3 8 7 51 4 14 1 21 9 2,0 8 7 12 9 1 11 6 2.1 4 6 37 C o n t r b u t i o n s 8- 1 0 , l n 1 6 38 O p e r a t i n g E x e n s e s Ln 1 2 - L n 1 1 2.4 9 3 , 6 6 1,1 2 3 , 4 5 4 18 9 , 9 4 8 39 , 7 1 7 64 , 3 7 4 52 2 , 0 8 4 39 , 9 1 1 26 , 1 5 3 50 8 , 0 2 6 39 O p e r a t i n g T a x e s $- 1 4 , l n 2 6 29 , 7 6 8 12 , 0 0 9 1,7 0 5 46 7 72 8 6,9 2 4 42 8 38 4 7,1 2 3 40 F i x e d C h a r g e s 8- 1 0 , l n 2 4 18 1 , 4 4 5 78 , 5 4 3 9,6 3 8 3, 8 2 2 5,4 5 5 51 , 3 5 8 1, 9 2 1 3,4 3 5 27 , 2 7 3 41 T O T A L OP E R A T I N G EX P E N S E S Ln 3 7 . . 4 0 2,7 0 4 , 8 7 9 1,2 1 4 , 0 0 6 18 1 , 2 9 0 44 . 0 0 6 70 , 5 5 7 58 0 . 3 6 6 42 , 2 5 9 29 , 9 7 2 54 2 . 4 2 2 42 S t a t e T a x a b l e I n c o m e Ln 3 6 ~ L n 4 1 (2 , 6 9 6 , 1 4 0 ) (1 . 2 1 0 , 8 1 8 ) (1 8 0 . 7 7 7 ) (4 3 , 8 6 5 ) (7 0 . 3 3 8 ) (5 7 8 , 2 8 0 ) (4 2 , 1 3 0 ) (2 9 , 8 5 6 ) 15 4 0 . 2 7 6 ) 43 S t t e I n c o m e T a x 8.2 2 5 0 % (2 2 1 . 7 5 8 ) (9 9 , 5 7 3 ) (1 4 . 8 6 9 ) (3 . 6 0 8 ) 15 . 7 8 5 ) (4 7 . 5 6 3 ) (3 . 4 6 5 ) (2 . 4 5 6 ) (4 4 . 4 3 8 ) 44 F e d e r a l T a x a b l e I n c o m e Ln 3 6 - L 4 1 (2 , 8 9 6 . 1 4 0 ) (1 , 2 1 0 , 6 1 8 ) (1 8 0 . 7 7 7 ) (4 3 , 8 6 5 ) (7 0 . 3 3 8 ) (5 7 8 , 2 8 0 ) (4 2 . 1 3 0 ) (2 9 , 8 5 6 ) (5 4 0 , 2 7 6 ) 45 S t I n c o m e T a x Ln 4 3 (2 2 1 , 7 5 8 ) (9 9 , 5 7 3 ) (1 4 . 8 6 9 ) (3 , 6 0 8 ) (5 , 7 8 5 ) (4 7 , 5 6 3 ) (3 . 4 6 5 ) (2 . 4 5 6 ) (4 4 , 4 3 8 ) 46 N e t F e d e r a l T a x a b l e I n c o m e Ln 4 4 - L 4 5 (2 , 4 7 4 . 3 8 2 ) (1 , 1 1 1 , 0 4 5 ) (1 6 5 . 9 0 8 ) (4 0 , 2 5 7 ) (6 4 , 5 5 3 ) (5 3 0 , 7 1 6 ) (3 8 , 8 6 5 ) (2 7 , 4 0 1 ) (4 9 5 , 8 3 8 ) 47 F e d e r a l In c o m e T a x 34 . 0 0 0 0 % (8 4 1 . 2 9 0 ) (3 7 7 . 7 5 5 ) (5 6 . 4 0 9 ) (1 3 . 6 8 7 ) (2 1 , 9 4 8 ) (1 8 0 , 4 4 3 ) (1 3 . 1 4 6 ) (9 , 3 1 6 ) (1 6 8 , 5 8 5 ) 48 A m o r t i Z a t o n o f I n v e s t m e n t T a x C r e d i t Sø 1 0 , L n 4 4 49 F e d e r a l In c o m e T a x Ln 4 7 - L n 4 8 l8 4 1 . 2 9 0 ) (3 7 7 . 7 5 5 1 (5 6 . 4 0 9 1 t1 3 . 6 8 7 l /2 1 . 9 4 8 ) (1 8 0 . 4 4 3 \ (1 3 . 1 4 6 ) 19 . 3 1 6 ) (1 6 8 , 5 8 5 Pr o p r i e 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 3 of 27 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 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 ~ 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 a l C O E , l O T , C & \ n D i s t r LA N D & S U P P O R T A S S E T S S E P A R A T I O N 42 1 1 0 L a n d & S u p p o r t A s s e t s 5 S u p p o r t A s s e t s - o i n t x l G F - B & C 6 G e n e r a l S u p p o r t F a c i l i t e s . B & C 7 D i r e c t A s s i g n m e n t 8 T o t a l S u p p o r t A s s e t s 9 D i s t r b u t o n o f L i n e 8 10 l a n d 11 D i r e c t A s s i g n m e n t 12 T o t 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 e 1 I f C a r n 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 l a s s i f i c a o n = B , t h e n Pr o p r i e t a r y I n f o r m a t o n 41 2 9 1 2 0 1 0 GE N E R A L S U P P O R T F A C I L I T I E S S- TO T A L CO M P A N Y PL PL MS G PL 1 MS G PL I De f i n e d SO U R C E (0 1 (h I ti en (k Re c o r d s B 8-3 , l n 6 10 0 . 0 0 0 0 % 44 . 8 0 6 1 % 7.0 2 9 9 % 1.5 5 5 3 % 2.6 0 3 4 % 20 . 1 9 9 4 % 1.6 9 8 9 % 0.8 5 8 5 % 21 . 2 4 8 4 % 8- 2 , l n 8 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % No t e 1 1,9 2 8 , 2 1 8 74 7 , 4 0 7 11 3 , 3 4 6 31 , 0 7 9 48 , 3 9 4 46 0 , 3 9 3 28 , 4 8 2 25 . 5 2 3 47 3 , 5 9 4 No t e 1 Di r e c t Ln 5 . . 7 I ,. 9 2 8 . 2 1 8 1 74 7 , 4 0 7 11 3 . 3 4 6 1 31 , 0 7 9 :1 48 , 3 9 4 :1 46 0 , 3 9 3 28 , 4 8 2 1 25 . 2 3 47 3 , 5 9 4 Ln 8 1 8 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2. 5 0 9 8 % 23 . 8 7 6 6 % 1. 4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % No t e 1 Dir e c t Ln 1 0 . . 1 1 Ln 8 + 1 2 74 7 , 4 0 7 11 3 , 3 4 31 , 0 7 9 48 , 3 9 4 46 , 3 9 3 28 , 4 8 2 1 25 , 5 2 3 47 3 , 5 9 4 Ln 1 3 J 1 3 a 38 . 7 6 1 5 % 5. 8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 % 1,4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % Ln 5 a " 2 , L n 6 a " 2 , L n 1 0 a * 2 ln 5 a * 3 , l n 6 a " 3 , l n 1 O a * 3 Mo s s A d a m s , L L P 40 f 2 7 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 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 S W S P e t . . w i t c h b o a r d s 2 W S W S P e 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 O P e t 5 W S W S P e 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 c e s o r T i m e P e t - R T A 7 R e a l P r o c e 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 . - S E P A R A T I O N 10 2 2 2 0 O p e r a r S y s t e m s 11 C a t 1 . . e r a t o r S y s t e m s 12 L o c , T o J l , D S A , D S B , l i n d 13 T r a f f c S w i t c h b o a r d s 14 A u x - O i r e A s s i s t 15 A u x . i n t e r c p t 16 J t E x c h & T o l l S O B 17 T S P S - p e r P o s i t i o n 18 T S P s - 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 l C a t 1 22 D i s t r i b u t i o n o f L i e 2 1 23 T O T A L C O E - o P E R A T O R 24 D i s b u t i o n o f L i n e 2 3 25 2 2 1 0 C e n t l o m e S w i c h n g 26 C a t 2 - T a n d e m S Y . i n g 27 D i r e e t A s s i g n m e n t 28 T o t a l C a 2 29 D i s t r i b u t o n o f U n e 2 8 3031 C a t 3 - o c l S i M h i n g _ T S 32 C a t 3 - o c a l S w i h i n g - N T S 33 D i r e c t A s s i g n m e n t 34 T o t l C a t 3 35 D i s t r i b u t i o n o f L i n e 3 4 36 T O T A L C O E - s C H I N G 37 D i s t r i b u t o n o f U n e 3 6 Pr o p r i e t a r y I n f o r m a t i o n Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 1 3 a * 1 Ln 1 4 a * 2 Ln 1 5 a * 3 Ln 1 6 a * 4 Ln 1 7 a * 5 Ln 1 8 a * 6 Ln 1 9 a * 7 Dir e c t Ln 1 3 . . 2 0 Ln 2 1 1 2 1 a Ln 2 1 Ln 2 3 1 2 3 a Ln 2 6 a * 8 Dir e c t Ln 2 6 . . 2 7 Ln 2 8 1 2 8 a Ln 3 1 a * 9 Ln 3 2 a * 9 Dir e e t Ln 3 1 . . 3 3 Ln 3 4 1 3 4 a Ln 2 8 + 3 4 Ln 3 6 CE N T R A L O F F I C E E Q U I P M E N T 41 2 9 1 2 0 1 0 SO U R C E 1,6 6 0 , 1 4 0 49 , 3 0 2.9 7 0 0 % 49 , 3 0 2.9 7 0 0 % 1,3 6 1 , 8 1 3 49 , 3 0 6 1,6 6 0 , 1 4 0 10 0 . 0 0 0 0 % 1,6 6 0 , 1 4 0 10 0 . 0 0 0 0 % 1,3 6 1 , 8 1 3 82 . 0 3 0 0 % 1,3 6 1 , 8 1 3 82 . 0 3 0 0 % Mo s s A d a m s , L L P 24 9 , 0 2 1 24 9 , 0 2 1 15 , 0 0 0 0 % 24 9 , 0 2 1 15 . 0 0 0 D % 5 of 27 Mid v a l e T e l e p h o n e E x c h a n g e - I D 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 SE P A R A T I O N S F A C T O R S 38 w e L i n e 39 E x Tm 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 l l 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 r n t o O t h e r s P e t 43 I n t e r e x c h a n g e T r k W B Ca 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 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 - l i n e 47 D i r e 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 m x l l - B a s i c 50 E x T r k x N 1 - B a s i c D A 51 E x T r k W B 52 E x e n T r k w e - 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 l W 54 J o i n t M S G 55 P L & L o c a l 56 D i r e A s s i g n m e n t - B a s i c l p e c i m 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 e r s 59 4 . 2 2 W d e b a n d 60 I n t e r e x c h a n g e P L 61 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 a E C A T 4 . 1 3 62 C O E C a t 4 . 1 3 W o r k i n g L o o p s 63 C O E C a t 4 . 1 3 A s s i j 1 n e d I n v e s t No t e 1: Co s t p e r l o o p = Pr o p r i e t a r y I n f o r m t i o n Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 4 6 a " 3 8 Di r e c t Di r e c t Ln 4 9 a " 4 0 Di r e Ln 5 1 a " 3 9 Dir e c t Ln 6 3 b " 4 1 Ln 6 3 c . , i Dir e c t Ln 5 8 a * 4 2 Ln 6 a * 4 3 Di r e Re c o r d s No t 1 4f 2 9 / 2 0 1 0 CE N T R A L O F F I C E E Q U I P M E N T 89 4 , 9 5 2 8,4 7 1 4,2 3 5 21 , 0 3 1 20 2 , 7 0 7 44 7 , 4 7 6 21 6 , 7 3 0 7,0 0 7- 4,2 3 5 19 . 6 4 8 9,8 3 7 9,8 0 9 SO U R C E 1,0 6 . 5 90 , 4 2 3 5. . 4, 2 3 5 5. . 4.2 3 5 1,0 5 6 . 5 89 4 , 9 5 2 84 7 . 0 9 1 2 Mo s s A d a m s , L L P 60 1 2 7 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 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 "S B ' A R A T I O N S F A C T O R S 64 - C o n v e r s a t l o n M i n u t e s P c t 65 H o s t e m o t e M O U M i l e s P c t CO E C A T E G O R Y 4 S E P A R A T I O N ( C o n t 66 4 . 2 3 A l l O t h e r 67 J o i n t M S G 68 I n t e r e x c h a n g e M S G J P L - O A 69 P L , T W & L o c a l 70 P L - D A 71 D S L N o n a c c e s s 72 C a t 4 . 3 - o s t e m o e M S G 73 J o i n t ( x I W A T S ) 74 W A T S 75 D i r e c t A s s i g n m e n t 76 T o t l C a t 4 77 T O T A L C a E - T R A N S M I S S I O N 78 D i s t i b u t i o n o f L i n e 7 7 79 T O T A L C E N T R A L O F F I C E E Q U I P 80 D i s t r b u t i o n o f L i n e 7 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 O E C A T 4 . 2 3 81 C O E C a t 4 . 2 3 T e r m s - .J o i n t M e s s a g e T o t a l T e r m i n a t i n s 82 C O E C a t 4 . 2 3 - T e r m s 83 - J o i n t M e s s a g e T o t a l A l l o c a t d I n v e s t m e n t No t e 1: Co s t p e r t e n n i n a t o n = Pro p r i e t a r y I n f o r m t i o n Re c o r d s Re c o r d s Ln 8 3 * 6 4 Dir e c t Ln 8 3 c . . i Dir e c t Dir e c t Ln 7 3 a " 6 5 Di r e t Dir e c t Ln 4 6 . . 6 1 + 6 6 . . 7 5 Ln 7 6 Ln 7 7 n 7 a Ln 2 3 + 3 6 + 7 7 Ln 7 9 1 9 a SO U R C E Re c o r d s No t e 1 No t e 1 41 2 9 1 2 0 1 0 TO T A L CO M P A N Y . CE N T R A L O F F I C E E Q U I P M E N T 10 0 . 0 0 0 0 % 1. 2 6 7 . 5 4 6 70 9 , 6 5 1 50 , 1 8 2 48 4 , 3 1 7 23 , 1 9 6 24 , 9 6 7 9,6 0 3 15 , 3 6 4 2.0 s . 0 3 92 , 5 8 1 41 8 , 0 4 4 30 , 2 0 4 2, 7 0 5 , 0 0 3 92 6 , 5 8 1 41 8 , 0 4 4 30 . 2 0 4 10 0 . 0 0 0 0 % 34 . 2 5 4 4 % 15 . 4 5 4 5 % 1.1 1 6 6 % 4, 3 6 5 , 1 4 3 2, 2 8 8 , 3 9 5 41 8 , 0 4 4 79 , 5 1 0 10 0 . 0 0 0 0 % 52 . 4 2 4 3 % 9.5 7 6 9 % 1.8 2 1 5 % 71 , 2 1 4 68 7 , 0 2 3 98 , 6 7 6 25 , 7 8 5 44 7 , 4 7 6 71 , 2 1 4 68 7 , 0 2 3 98 . 7 6 25 , 7 8 5 44 7 , 4 7 6 2. 6 3 2 7 % 25 . 3 9 8 2 % 3.6 4 7 9 % 0. 9 5 3 2 % 16 . 5 4 2 5 % 71 , 2 1 4 68 7 , 0 2 3 98 , 6 7 6 25 , 7 8 5 69 6 , 4 9 7 1.6 3 1 4 % 15 . 7 3 8 8 % 2.2 6 0 5 % 0.5 9 0 7 % 15 . 9 5 5 9 % TO T A L I CO M P A N Y (.~ 33 6 . 5 0 33 0 1, 2 9 2 , 5 1 3 1, 2 6 7 . 5 4 6 3,8 4 1 . 0 5 De f i n e d m ( k l MS G P L bl ( e ,': ' , ' c c N f r ' , : : ~ : , : : ' . ' ' , ~ : : : : : : ~ In t e r L A T A MS G (ij iñ MS G P L (h I ( i ) In t L A T A MS G d) I I PL Ce l PL (9 ) (I ) 2.5 0 4.0 0 9, 6 0 3 15 , 3 6 4 Mo s s A d a m s , L L P 70 f 2 7 4/2 9 1 2 0 1 0 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 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 IN F O R M A T I O N O R I G I N f T E R M E Q U I P M E N T s. 32 3 1 0 I n f o 4 C a t 1 - o h 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 r y 1 B D i s t i b u t i o n o f L i n e 7 Re c o r d s Re c o r d s 10 0 . 0 0 0 0 % MS G b TO T A L CO M P A N Y .1 LI N E SO U R C E 24 . 2 1 7 0 % Ln 4 a * 1 Ln 5 a " 2 Dir e c t Ln 4 . . 6 Ln 7 n a 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 o n o f L i n e 9 Dir e c t Ln _ 11 T O T A L I N F O O R I G / R M E Q U I P 12 D i s t r i b u t i o n o f L i n e 1 1 Ln 7 + 9 Ln 1 1 f 1 1 a 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 Bo f 2 7 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 Stu d y A r e a : 4 7 2 2 2 6 Stu d y Y e a r : 2 0 0 8 SE P A R A T I O N S - l Ä " t - . i ( 5 j ~ f S " 1 G r o s s A l l o c a t 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 W B L i n e 4 M O U P c t - E x T r k V v C& V \ C A T 1 - 2 S E P A R A T I O N 52 4 1 0 C a b l e & W i r e F a c i l i t i e s 6 C a t 1 - E x c h L i n e x M 1 7 1 . 1 I n t r a P L & W A T S 8 1 . 2 In t e r PL & WA T S 9 1 . 3 J o i n t l y U s e d 10 D i r e c t A s s i g n m e n t 11 T o t a l C a t e g o r y 1 Re ç o r d s Re c 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 12 C a t 2 . . & E x c h T r u n k 13 E x Tr k - j o i n t me s s a g e 14 E x T r k . E A S 15 E x L i n e V v 16 W B U n e 17 W B T r u n k 18 W B T r u n k D A 19 T o t l C a t e g o r y 2 Ln 1 3 a * 2 Dir e c t Ln 1 5 a * 3 Dir e c t Ln 1 7 a * 4 Di r e 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 & \ M C A T 1 20 C & W F C a t 1 W o r k i n g L o o p s 21 D i s t r i b u t i o n o f l i n e 2 1 22 C a t 1 - E x l i n e x / l Re c o r d s Ln 2 O O a Ln 2 2 a * 2 1 No t e 1: Co s t p e r l o o p = Pr o p r i e t a r y I n f o r m a t i o n SO U R C E SO U R C E 4,7 3 9 . 9 5 2 6 Jo i n t MS G (b ) 1,0 5 7 99 . 0 6 2 4 % 5,0 0 7 , 7 6 0 41 2 9 1 2 0 1 0 CA B L E A N D W I R E F A C I L I T I E S 2, 5 0 3 , 8 8 0 14 6 , 6 8 7 14 6 , 6 8 7 EA ot h e r Us e r De f i n e d (h ) (i ) (g ) 5 0.4 6 8 8 % 23 , . 7 0 0 5 0. 4 6 8 8 % 23 , 7 0 0 Mo s s A d a m s , L L P 9 of 27 Mid v a l e T e l e p h o n e E x c h a n g e . 1 0 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 SE P A R A T I O N S F A C T O R S 23 I n t e r e x c h a n g e T r k w e 24 C M M P c . . X x f 25 C & W F T W C o n n e c t M i n M i l e s P c t - I T 26 C & W F T W C o n n e c t M i n M i l e s P c t - R m t 27 H o s t e m o t e M O U M i l e s P c t C& W F C A T 3 0 0 S E P A R A T I O N 28 C a t 3 - 1 n t e r e x c h a n g e C & W F 29 V V P L . D i r e c t A s s i g n m e n t 3D V V . 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 W & L o c a l x I 33 J o i n t T W - I T 34 J o i n t 1 W - R m t 35 l n t e r e x c h a n g e . D A 36 D S L N o n a c c e s s 37 T o t l C a t e g o i y 3 38 C a t 4 - 1 o s t l e m o e C & W F 39 J o i n t ( x I W A T S ) 40 W A T S 41 D i r e c t A s s i g n m e n t 42 T o t a l C a t e g o i y 4 43 T O T A L C A B L E & W I R E F A C I L I T E S 44 D i s t r b u t i o n o f U n e 4 3 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 & V v C A T 3 45 E q u i v I X C i r e M i l e s - S G 46 - P L , l W & L o c l 47 O i s t r i b u t o n o f U n e 4 4 48 D i s t r i b u t o n o f U n e 4 5 49 C a t 3 - A I I O t h e r X l S G 50 - P L , 1 W & L o c a l No t e 1: Co s t p e r c i r c u i t m i l e = Pro p r i e t a r y I n f o r m i o n 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 Di r e c t Ln 3 0 a * 2 3 Ln 4 9 b " 2 4 Ln 5 0 c . . i Ln 5 0 j * 2 5 Ln 5 0 k * 2 6 Di r e c t Di r e c t Ln 2 8 . . 3 6 Ln 3 9 a * 2 7 Di r e c Di r e c t Ln 3 9 . . 4 1 Ln 1 1 + 1 9 + 3 7 + 4 2 Ln 4 3 / 4 3 a SO U R C E Re c o r d s Re c o r d s Ln 4 5 1 4 5 a Ln 4 6 / 4 5 a Ln 4 9 s * 4 7 Ln 4 9 a * 4 8 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 30 1 , 1 7 0 3,0 6 8 , 8 9 9 40 , 1 5 4 3, 4 1 0 , 2 2 2 8,6 6 5 , 0 4 7 10 0 . 0 0 0 0 % 41 2 1 2 0 1 0 CA B L E A N D W I R E F A C I L I T I E S 1,5 4 9 , 5 7 9 13 8 , 1 3 1 1,2 8 9 , 8 8 9 36 , 0 8 9 30 5 , 2 3 5 91 , 3 0 0 2, 7 6 2 , 3 0 8 31 . 8 7 8 7 % 25 5 , 8 1 3 :1 2, 4 2 4 , 1 4 6 93 , 7 9 4 1 14 6 , 6 8 7 2.9 5 2 2 % 27 . 9 7 6 1 % 1. 0 8 2 4 % 1.6 9 2 9 % IN T R A S T A T E T O L L In t e r In t EA Us e r Ole r Jt MS G TW LA T A LA T A De f i n e d In t e r t o l l h 2, 5 0 3 , 8 8 0 28 . 8 9 6 3 % 34 7 , 9 0 7 4.0 1 5 1 % 13 0 , 5 1 0 1.5 0 6 2 % io f A C - - - - J o i n t M S G CO M P A N Y E x c l T W b 21 0 . 7 8 14 , 7 5 0 1 4 , 5 5 9 . 6 1 10 0 . 0 0 0 0 % 9 8 . 7 0 8 5 % 3, 1 0 9 , 0 5 3 3 , 0 6 8 , 8 9 9 IN T E ~ S T A T E T O L L In t e r I n t r a LA T A L A T A d 11 9 . 0 0 71 . 5 0 0.4 8 4 7 % 0.8 0 6 8 % 15 . 0 7 1 25 . 0 8 3 Mo s s A d a m s , L L P 10 o f 2 ? Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 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 L a n d & S u p p o r t A s s e t s D i s t r 2 2 2 1 0 C O E - 8 w i c h D i s t r 3 2 2 2 0 C O E - D p e r a t o r S y s t e m s O i s t r 42 2 3 0 C O E . T r a n s m i s s i o n O i s t r 52 3 1 0 l O T O i s t r 62 4 1 0 C & W F O i s t r 72 0 0 1 T P I S 8 2 0 0 1 T P I S i n c t 2 6 8 TA N G I B L E A S S E T ~ A P I T A L L E A S E S S E P 9 2 6 8 0 T a n g i b l e A s e t - C a p i t a l L e a s e 10 2 1 1 0 La n d & Su p t A s s e t s 11 2 2 1 0 C O E - 8 w i t c h i n g 12 2 2 2 0 C O E - O p e r a t o r 13 2 2 3 0 C O E - T r a n s m i s s i o n 14 2 3 1 0 l O T 15 2 4 1 0 C & W F 16 N o t c l a s s i f e d b y ac c o u n t 17 D i r e c t A s s i g n m e n t 18 T O T A L C A P I T A L L E A S E S 19 AS S E T s - E A S E H L O I M P R O V E S E P , A s s e t s . L e a s e h l d I m p r o 21 1 0 L a n d & S u p t A s s e t 22 1 0 C O e - 8 w i c h i n g 22 2 0 C O E . . p e r a o r 22 3 0 C O E - T r a n s m i s s i o n 23 1 0 l O T 24 1 0 C & V v No t c l a s s i f i e d b y a c c o u n t 28 D i r e c t A s s i g n m e n t 29 T O T A L L E A S E H O l D I M P R O V E M E N T S 30 D i s t r u t i o n o f L i n e 2 9 SO U R C E 8- , l n 1 4 S- 5 , l n 3 7 8- 5 , l n 2 4 8- 5 , l n 7 8 ~,l n 1 2 8-7 , l n 4 4 So 2 , l n 8 8-2 , l n l 1 Ln l 0 a ~ 1 Ln l 1 a ~ 2 Ln 1 2 a ~ 3 Ln 1 3 8 ~ 4 ln 1 4 a ~ 5 Ln 1 5 a * 6 ln 1 6 a * 7 Di r e c t ln l 0 . . 1 7 ln 1 8 J 8 a ln 2 1 a ~ 1 Ln 2 2 a ' " 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 Lo 2 1 . . 2 8 Ln 2 9 1 9 a 31 T O T A L T A N G I B L E A S S E T S L n 1 8 + 2 9 32 D i s t r i b u t i o n o f Li 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 n g i b l e A s s e t s L n 3 3 a ~ 8 34 D i r e c t A s s i g n m e n t D i r e c t 35 T O T A L I N T A N G I B L E A S S E T S L n 3 3 . . 3 4 36 D i s t r i b u t i o n o f L i n e 3 5 L n 3 5 J 5 a Pr o p r i e t a r y I n f o r m t i o n AM O R T I Z A B L E A S S E T S 41 2 9 / 2 0 1 0 8-8 MS G P L TO T A L CO M P A N Y MS G PL MS G PL . (b (c d 10 0 . 0 0 0 0 % 38 . 7 8 1 5 % 5. 8 7 8 3 % 1.6 1 1 8 % 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % 2.9 7 0 0 % 10 0 . 0 0 0 0 % 34 . 2 5 4 4 % 15 . 4 5 4 5 % 1.1 1 6 6 % 10 0 . 0 0 0 % 31 . 8 7 8 7 % 4.0 1 5 1 % 1.5 0 6 2 % 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % PL 23 . 8 7 6 6 % 1.4 7 7 1 % 1. 3 2 3 6 % 25 . 3 9 8 2 % 3.6 4 7 9 % 0.9 5 3 2 % 27 . 9 7 6 1 % 1.0 8 2 4 % 1,6 9 2 9 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 2.6 3 2 7 % 2.9 5 2 2 % 2.5 0 9 8 % 2.5 0 9 8 % 24 . 5 6 1 2 % 15 . 0 0 0 0 % 16 . 5 4 2 5 % 28 . 8 9 6 3 % 24 . 5 6 1 2 % 24 . 5 6 1 2 % Mo s s A d a m s , L L P 11 o f 2 7 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 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 õ R S 1 2 0 0 1 T P I S D i s t r 22 4 1 0 C & W F D i s t r 3 E q u a l A c c e 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 2 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 r i b u t i o n o f U n e 6 SO U R C E 8M 2 , l n 1 5 8-7 , l n 4 4 Re c o 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 f t 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 l i b u t i o n o f U n e 1 0 Ln 8 a " ' 1 Di r e c t Ln 8 . . 9 Ln l 0 J 1 0 a 12 2 0 0 5 T e l e c o m P l a n t A d j u s l L n 1 2 a " ' 1 13 D i r e c t A s s i g n m e n t D i r e c t 14 T O T A L T E L E C O M P L A N T A D J U S T L n 1 2 . . 1 3 15 O 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 c k L n 1 6 a " ' 1 17 1 4 3 8 O e f e r r e 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 l x l 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 l 8 a " ' 2 Di r c t Ln 1 8 . . 1 9 21 C a s h W o r l n C a i t a l c w e Ea 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 22 E q u a l A c c e s s G r s I n v e s t m n t L n 2 2 s " ' 3 23 E q u a l A c c s G r s s I n v e s t m n t - D A D i r e c 24 A c c u m D e p r e c i a t i o n L n 2 4 s " ' 3 25 D e t e r r d O p e r I n c T a x e s L n 2 5 a " ' 3 26 U n a m o r t e d E x p e n s e s L n 2 6 a " ' 3 27 T O T A L N E T E Q U A L A C C E S S I N V E S T M E N T L n 2 2 - 2 4 - 2 5 + 2 6 28 D i s t r i b u t o n o f L i n e 2 7 L n 2 7 r i 7 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 T I O N I 29 I n v e m e n t A 1 I o / O i s a l l o w n c e s L n 2 9 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 / D I S A L L O W A N C E S L n 2 9 . . 3 0 Pr o p r i t a r y I n f o r m a t o n TE L E C O M M U N I C A T I O N S P L A N T - O T H E R A C C O U N T S lN T R A S T A T E T O L L 41 2 9 1 2 0 1 0 8-9 TO T A L In t e r L T A In t r ã C A f Ä - In t e r L T A In t r a CO M P A N Y ~~ G ~~ ~~ ~ i.L M,~ G PL MS G PL 0\ .) e) 'a ) h ti 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5. 8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 ~ I 1.3 2 3 6 % 24 . 5 6 1 2 % 10 0 . 0 0 0 0 % 31 . 8 7 8 7 % 4. 0 1 5 1 % 1.5 0 6 2 % 2.9 5 2 2 % 27 . 9 7 6 1 % 1. 0 8 2 4 % 1.6 9 2 9 % 28 . 8 9 6 3 % 10 4 , 8 5 1 10 0 . 0 0 0 0 % 10 4 , 8 5 1 40 , 6 4 2 6, 1 6 3 2,6 3 1 25 , 0 3 5 1,5 4 9 1,3 8 8 25 , 7 5 3 40 , 6 4 2 38 . 7 6 1 5 % 6. 1 6 3 5.8 7 8 3 % 1,6 9 0 1,8 9 0 1.6 1 1 8 % 2,8 3 1 2. 5 0 9 8 % 25 , 0 3 5 23 . 8 7 6 6 % 1,5 4 9 1.4 7 7 1 % 1,3 8 8 1.3 2 3 6 % 25 , 7 5 3 24 . 5 6 1 2 % 20 , 3 7 9 6,4 9 7 81 8 60 2 5,7 0 1 22 1 34 5 5,8 8 9 20 , 3 7 9 6,4 9 7 30 7 81 8 60 2 5,7 0 1 22 1 34 5 5. 8 8 9 15 2 , 6 6 2 69 , 1 9 9 30 7 10 , 2 8 4 3,9 5 4 31 , 5 2 8 2,4 6 3 1,4 3 7 31 , 3 9 2 2. 4 0 5 Mo s s A d a m s , L L P 12 o f 2 ? 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 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 . 1 2 0 0 1 T P I S D i s t r 2 2 0 0 3 P U C - P c t 3 C o r p O p e r E x p e n s e s 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 Te 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 62 1 1 0 S u p p o r t A s s e t s D i s t r 7 2 2 1 0 C O E - 8 w ü h i n g D i s t r 8 2 2 2 0 C O E - C p e r a o r D i s t r 92 2 3 0 C a 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 r 11 2 4 1 0 C & W F D i s t r 12 C a E , l O T , C & \ N 13 B i g T h r e e E x p e n s e s O i s 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 e n s e s 15 A I F d s U s e d O u r C o n s t 16 C o n t r i b u t i o n s 17 A b a n d o n e d C o n s t r c t o n 18 o t h e r N o n o p e r a t i n g E x p e n s e SO U R C E 8- 2 , l n 1 5 8-9 , l n 1 1 8- 1 4 , l n 1 7 8- 8 , l n 1 9 S- 2 , l n 3 7 $., l n 9 8- , l n 3 7 8- , l n 2 4 S- 5 , l n 7 8 8- , l n 1 2 S~ 7 , I n 4 4 S- 2 , l n 8 8-3 , l n 6 Ln 1 5 a * 2 Ln 1 6 a * 3 Ln 1 7 a * 1 Di r e c t 19 F i x e d C h a r g e s 20 I n t r e s t o n C a p i t 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 a s e s 22 A m o r t i z a t i o n o f D e b t D i s c u n t 23 o t h e r I n t e r e s t 24 T O T A L F I X E D C H A R G E S Ln 2 0 a * 4 Ln 2 1 a * 5 Ln 2 2 a * 5 Ln 2 i a * S Ln 2 0 . . 2 1 25 5 2 4 0 R e n t R e v n u e s 26 8 u p p o r t A s s e t s 27 C O E - 8 w i h i n g 28 C O E - C p e r a r 29 C a E - T r a n s m i s s i o n 30 I n f o O r i g l T e n n E q u i p 31 C & W F 32 N o t C l a s s i f i e d b y A c c t 33 U N B U N D L E D N E T \ R K E L E M E N T S 34 C & W F - U n b u n d l e d L o o p $ - , I n 4 1 * L n 3 4 35 O p e r a o r S y s e m s 8 - 5 , I n 2 4 * L n 3 5 36 T a n d e m S V i t c i n g $ - 5 , I n 2 9 * L n 3 6 37 L o c a l S w i h i n g 8 - , I 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 8 - , I n 6 4 * L n 3 8 39 T r a n s p o F a c i l i t 8 - , 1 0 6 * L n 3 9 40 S S 7 8 - , I n 7 6 * L n 4 0 41 ~ ~ 1 ~ 1 42 D i r e A s s i g n m e n t D i r e c t 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 C A m o r t i z a t o n . F e d e r a l L n 4 4 a * 1 45 I T C A m o r t i z i o n - S t a t e L n 4 5 a * 1 46 T O T A L I T C A M O R T I Z A T I O N L n 4 4 . . 4 5 Ln 2 6 a * 5 Ln 2 7 s * 7 Ln 2 8 a ' * 8 Ln 2 9 a * 9 Ln 3 0 a * 1 0 Ln 3 1 a * 1 1 Ln 3 2 a ' * 1 47 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 Ln 4 7 a * 1 48 C a p i t a l i z e d P a y r o l l T a x e s 49 D i r e c t A s s i g n m e n t 50 T O T A L C A P I T A L I Z E D P A Y R O L L T A X E S Ln 4 8 a * 1 Di r e Ln 4 8 . . 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 s 52 D i r e c t A s s i g n m e n t 53 T O T A L D E P R E C I A T I O N A D J U S T M E N T S Ln 5 1 a * 1 Di r e c t Ln 5 1 . . 5 2 54 U n c o U e c t b l e s - J o i n t M e s s a g e 55 U n c o l l e c t i b l e s . E n d U s e r e C i 56 U n c o l l e c t b l e s - I n t e r e x c h a n g e C a r r 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 Dir e c t Dir e c t Ln 5 4 . . 5 6 58 M i s c I n c A d j u s t m n t 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 l I o c o n 2 0 0 1 . D i r e c t A s s i g n m e n t 61 I n c A d j A 1 l o e o n B i g 3 E x p 62 I n c A d j A l l o e o n B i g 3 E x p - D i r e c t A s s i g n m e n t 63 T O T A L M I S C I N C A D J U S T M E N T S 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 a t i o n 4f 2 9 / 2 0 1 0 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 ¡, , , i ! . ! ~ TO T A L In t e " - A T A CO M P A N Y ~: ~ PL MS G ;.~ M,~ G PL MS G PL De f i ~ : ~ 10 1 c d (.1 (h i (j (j 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5. 8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 10 0 . 0 0 0 0 % 38 . 7 6 1 S % 5. 8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 10 0 . 0 0 0 0 % 47 . 2 4 5 7 % 6.7 1 9 1 % 1.4 8 6 6 % 2.4 8 8 3 % 19 . 3 0 6 % 1.6 2 3 9 % 0. 8 2 0 6 % 20 . 3 0 9 3 % 10 0 . 0 0 0 0 % 43 . 2 8 7 6 % 5.3 1 1 7 % 2. 1 0 6 % 3.0 0 6 3 % 28 . 3 0 5 1 % 1.0 5 8 5 % 1.8 9 3 2 % 15 . 0 3 1 2 % 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 6 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 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 . 2 5 4 4 % 15 . 4 5 4 5 % 1.1 1 6 6 % 2.6 3 2 7 % 25 . 3 9 8 2 % 3.6 4 7 9 % 0.9 5 3 2 % 16 . 5 4 2 5 % 10 0 . 0 0 0 0 % 31 . 8 7 8 7 % 4.0 1 5 1 % 1.5 0 6 2 % 2. 9 5 2 2 % 27 . 9 7 6 1 % 1.0 8 2 4 % 1.6 9 2 9 % 28 . 8 9 6 3 % 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1. 3 2 3 6 % 24 . 5 6 1 2 % 10 0 . 0 0 0 0 % 44 . 8 0 6 1 % 7.0 2 9 9 % 1.5 5 5 3 % 2. 6 0 3 4 % 20 . 1 9 9 % 1.6 9 8 9 % 0.8 5 8 5 % 21 . 2 4 8 4 % 8, 7 3 9 3,3 8 7 51 4 14 1 21 9 2,0 8 7 12 9 11 6 2,1 4 6 18 1 , 4 4 5 5.5 5 51 , 3 5 8 1, 9 2 1 3,4 3 5 27 , 2 7 3 78 , 5 4 3 9.6 3 8 3.8 2 2 18 1 , 4 4 5 5,4 5 5 51 , 3 5 8 1, 9 2 1 3,4 3 5 27 . 2 7 3 78 , 5 4 3 9,6 3 8 3,8 2 2 Mo s s A d a m s , L L P 13 0 f 2 7 41 2 9 1 2 0 1 0 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 Stu d y A r e a : 4 7 2 2 2 6 PL A N T S P E C I F I C E X P E N S E S $.1 1 stu d y Y e a r : 2 0 0 8 -- CO M P A N Y MS G PL MS G PL I MS G PL I MS G PL LIN E DE S C R I P T I O N SO U R C E a b c d S P A A I O N S F A C T O R S 1 2 1 1 0 L a n d & S u p t A s s t s D i s t r 8- , l n 1 4 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % ~ I 2.5 0 9 8 % ~ I 23 . 8 7 6 6 % 1.7 7 % 1 1.3 2 3 6 % 24 . 5 6 1 2 % 2 T o t a l C O E D i s t r + E A D i s t r S.s , I n 8 0 i n c l E A 10 0 . 0 0 0 0 % 52 . 4 2 4 3 % 9.5 7 6 9 % 1.8 2 1 5 % 1. 6 3 1 4 % 15 . 7 3 8 8 % 2.2 6 0 5 % 0.5 9 0 7 % 15 . 9 5 5 9 % 32 3 1 0 l O T C a t 1 - C e r D i s t r S- 6 , l n 1 10 0 . 0 0 0 % 24 . 2 1 7 0 % 0. 7 8 3 0 % 2.3 5 0 0 % 22 . 6 5 0 0 % 50 . 0 0 0 0 % 4 2 3 1 0 l O T C a t 2 . . P E D i s t r 8- 6 , l n 1 0 52 4 1 0 C & W F O i s t r 8- 7 , l n 4 4 10 0 . 0 0 0 0 % 31 . 8 7 8 7 % 4.0 1 5 1 % 1.5 0 6 2 % 2.9 5 2 2 % 27 . 9 7 6 1 % 1.0 6 2 4 % 1.6 9 2 9 % 28 . 8 9 6 3 % PL A N T S P E C I F I C E X P E N S E S S E P A R A T I O N I 66 1 1 0 N e t w r k S u p p o r t E x p e n s e s Ln 6 a * 1 7 Dir e c t A s s i g n m e n t Di r e c t 8 T O T A L N E T W R K S U P P O R T E X P E N S E S Ln 6 . . 7 9 6 1 2 0 G e n e r a l S u p p o r t E x p e n s e s Ln 9 a * 1 62 , 1 7 4 24 , 1 0 0 3, 6 5 5 1,0 0 2 1,5 6 0 14 . 8 5 91 8 82 3 15 , 2 7 1 10 Di r e A s s i g n m e n t Dir e 11 T O T A L G E N E R A L S U P P O R T E X P E N S E S Ln 9 . . 1 0 62 , 1 7 4 24 , 1 0 0 3,6 5 5 1,0 0 2 1,5 6 0 14 , 8 4 5 91 8 82 3 15 , 2 7 1 12 6 2 1 0 C O E S v . t c h i n g E x p e n s e s Ln 1 2 a * 2 47 7 , 6 5 6 25 0 , 4 0 8 45 . 7 4 5 8, 7 0 0 7,7 9 3 75 , 1 7 8 10 , 7 9 8 2,8 2 2 76 , 2 1 4 13 Dir e c t A s s i g n m e n t Di r e c t 14 T O T A L C O E S W I T C H I N G E X P E N S E S Ln 1 2 . . 1 3 4n , 6 5 6 25 0 , 4 0 8 45 . 7 4 5 8, 7 0 0 7, 7 9 3 75 , 1 7 8 10 . 7 9 8 2,8 2 2 76 , 2 1 4 15 6 2 2 0 C O E O p e r a t o r S y s t e m s E x p e n s e Ln 1 5 a * 2 16 Dir e c t A s s i g n m e n t Di r e c t 17 T O T A L C O E O P E R A T O R S Y S E X P E N S E S Ln 1 5 . . 1 6 18 6 2 3 0 C O E T r a n s m i s s i o n E x p e n s e s Ln 1 8 a * 2 40 5 , 4 4 1 21 2 , 5 5 0 38 , 8 2 9 7. 3 8 5 6.6 1 4 63 , 8 1 2 9, 1 6 5 2,3 9 5 64 , 6 9 2 1. Dir e c t A s s i g n m e n t Di r e c t 20 T O T A L C O E T R A N S M I S S I O N E X E N S E S Ln 1 8 . , 1 9 40 5 , 4 4 1 21 2 , 5 5 0 38 , 8 2 9 7, 3 8 5 6,6 1 4 63 , 8 1 2 9. 1 6 5 2,3 9 5 64 , 6 9 2 21 T O T A L C O E E X E N S E S Ln 1 4 + 1 7 + 2 0 88 3 , 0 9 7 46 2 , 9 5 7 84 , 5 7 3 16 , 0 8 5 14 , 4 0 7 13 8 , 9 8 9 19 , 9 6 3 5,2 1 6 14 0 , 9 0 6 22 6 3 1 0 l O T E q u i p E x p e n s e 23 Ca t 1 - o e r l O T E q E x p e n s e Ln 2 3 a * 3 24 Ca 2 - C u s t P r e m E q u i p E x p Ln 2 4 a * 4 25 Di r e c t A s s i g n m e n t Dir e c t 26 T O T A L l O T E X P E N S E S Ln 2 3 . . 2 5 27 6 4 1 0 C & W F E x p e n s e s Ln 2 7 a * 5 39 9 , 3 7 0 12 7 , 3 1 4 16 , 0 3 5 6,0 1 5 11 , 7 9 0 11 1 , 7 2 8 4, 3 2 3 6,7 6 1 11 5 , 4 0 3 28 Di r e c t A s s i g n m e n t Dir e c t 29 T O T A L C & W F E X P E N S E S Ln 2 7 . . 2 8 39 9 , 3 7 0 12 7 , 3 1 4 16 , 0 3 5 6,0 1 5 11 , 7 9 0 11 1 , 7 2 8 4, 3 2 3 6,7 6 1 11 5 , 4 0 3 30 P i t Sp e c Ex p x1 6 1 1 0 , 6 1 2 0 Ln 2 1 +2 5 + 2 9 1,2 8 2 , 4 6 7 59 0 . 2 7 1 10 0 , 6 0 8 22 , 1 0 1 26 , 1 9 7 25 0 , 7 1 8 24 , 2 8 6 11 , 9 7 7 25 6 , 3 0 9 31 T O T A L P L A N T S P E C O P E R E X P Ln 8 + 1 1 + 3 0 1,3 4 4 . 6 4 1 61 4 , 3 7 1 10 4 , 2 6 3 23 , 1 0 3 27 , 7 5 8 26 5 , 5 6 25 , 2 0 4 12 , 8 0 0 27 1 , 5 8 0 32 D i s t r i b u t o n o f L i n e 3 1 Ln 3 1 / 3 1 a 10 0 . 0 0 0 0 % 45 . 6 9 0 3 % 7. 7 5 4 0 % 1.7 1 8 1 % 2. 0 6 3 % 19 . 7 4 9 7 % 1.8 7 4 4 % 0. 9 5 1 Q I t 20 . 1 9 7 2 % Pr o p r i e t a r y I n f o r m a o n Mo s s A d a m s , L L P 14 of 27 Mid v a l e T e l e p h o n e E x c h a n g e - I D Stu d y A r e a : 4 7 2 2 2 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 2 0 0 1 T P I S D i s t r 2 T o t a l C O E , l O T , C & \ N D i s t r 3 2 1 1 0 S u p p o r t A s s e t s D i s t r 42 2 1 0 C O E - S w i t c h i n g D i s t r 5 2 2 2 0 C O E - o p e r a r D i s t r 62 2 3 0 C O E - T r a n s m i s s i o n D i s t r 7 2 3 1 0 l O T D i s t r 82 4 1 0 C & W F D i s t r 9 2 0 0 2 P r o p H i d F t T e l U s e D i s t r 10 2 6 0 C a p i t l L e a s e s D i s t r 11 2 6 8 0 L e a s e h o l d I m p r o m e n t s D i s t r 12 2 6 9 0 I n t n g i b l e A s s e t s D i s t r 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 PL A N T N O N S P E C I F I C E X ? 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 15 D i r e c t A s s i g n m e n t 16 T O T A L O T H P R O P P L N T & E Q E X P SO U R C E S- 2 , l n 1 5 8- 2 , l n 7 + 9 5- , l n 9 5-1 5 , l n 1 2 0 8- 5 , l n 2 4 8- 5 , l n 7 8 5- 6 , l n 1 2 5- 7 , l n 4 4 8- 9 , l n 7 S- 8 , l n 1 9 8- 8 , l n 3 0 8- , l n 3 6 8- 9 , l n 1 5 41 2 1 2 1 0 PL A N T N O N S P E C I F I C E X P E N S E S TO T A L CO M P A N Y PL PL MS G PL PL 10 0 . 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2. 5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2. 5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 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 . 2 5 4 4 % 15 . 4 5 4 5 % 1.1 1 6 6 % 2.6 3 2 7 % 25 . 3 9 8 2 % 3. 6 4 7 9 % 0.9 5 3 2 % 16 . 5 4 2 5 % 10 0 . 0 0 0 0 % 31 . 8 7 8 7 % 4. 0 1 5 1 % 1. 5 0 6 2 % 2.9 5 2 2 % 27 . 9 7 6 1 % 1.0 8 2 4 % 1.6 9 2 9 % 28 . 8 9 6 3 % 17 6 5 3 0 N e t w r k O p e r a i o n s E x 18 D i r e c t As s i g n m e n t 19 T O T A L N E T W K O P E R A T I O N S E X P 20 6 5 4 0 A c c e s s E x p e n s e s 21 A c c e s s E x p e n s e x l F e d e r a l S u p p o r t 22 F e d e r a l S u p p o r t 23 T O T A L A C C E S S E X P E N S E S 24 6 5 6 0 D e p r a n d A m o r t E x p e n s e s 25 D e p r - S u p p o r t A s s e t s 26 D e p r - S u p p o r t A s s e t s - D i r e c t A s s i g n m e n t 27 D e p r - C O E - S w i h i n g 28 C a t 2 - T a n d e m S w i t c h i n g 29 D i r e c t A s s i g n m e n t 30 C a t 3 - L o c a l S w h i n g - T S 31 C a t 3 - L o c a l S w i h i n g - N T S 32 O i r e c t A s s i g n m e n t 33 T O T A L C O E - S T C H I N G 28 D e p r - C O E - o p e r a r 29 C a t 1 - D p e r a o r S y s e m s 30 L o c , T o I l , D S A , D S B , a n d 31 T r a c S w i h b o a r d s 32 A u x - D i r e c t A s s i s t 33 A u x . l n t e r c e p t 34 J t E x e h & T o l l S O B 35 T S P S - p e r P o s i t i o n 36 T S P s - T A 37 T S P S - e r 38 D i r e c t A s s i g n m e n t 39 T o t a l C a t 1 40 T O T A L C O E - C P E R A T O R Pr o p r i e t a r y I n f o r m a t i o n Ln 1 4 a * 1 Dir e c t Ln 1 4 . . 1 5 Ln 1 7 a * 2 Di r e c t Ln 1 7 . . 1 8 CiT e Dir e Ln 2 1 . 2 2 Ln 2 5 a * 3 Di r e c t Ln 2 7 a * 4 8- , L n S Di r e c t 8-5 , L n 9 8-5 , L n g Di r e c t Ln 7 . . 3 2 Ln 2 8 a * S 8- , L n 1 8- , L n 2 S- 5 , L n 3 S~ 5 , L n 4 $- 5 , L n 5 S- 5 , L n 6 8- 5 , L n 7 Dir e d Ln 2 9 . . 3 8 Ln 2 8 . . 3 9 51 , 0 3 3 19 , 7 8 1 51 , 0 3 3 19 , 7 8 1 12 . 4 6 5 12 , 4 6 5 12 , 4 6 5 12 , 4 6 5 63 , 0 8 7 24 , 4 5 3 53 , 3 2 2 43 , 7 4 0 53 . 3 2 2 43 , 7 4 0 3.0 0 3.0 0 3,7 0 8 Mo s s A d a m s , L L P 82 3 82 3 1,0 1 7 1,5 8 4 1,5 8 4 1,2 8 1 1,2 8 1 1,5 8 3 12 , 1 8 5 75 4 12 , 1 8 5 75 4 15 , 0 6 3 93 2 67 5 12 , 5 3 4 67 5 12 , 5 3 4 83 5 15 , 4 9 5 7.9 9 8 7,9 9 8 15 o f 27 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 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 PL A N 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 29 D e p r - C O E - T r a n s m i s s i o n 30 C a t 4 . 1 - E x c h a n g e C i r c u i t 31 4 . 1 1 V V d e b a n d - l i n e 32 D i r e c t A s s i g n m e n t 33 4 . 1 2 E x c h T r u n k - E A S 34 E x T r K x M - B a s i c 35 E x T r K x M ~ B a s i c D A 36 E x T r k W B 37 E x c h T r k W 8 - D i r e c t A s s i g n m e n t 38 4 . 1 3 E x L i n e x l W 39 J o i n t M S G l L & L o c a l 40 D i r e c t A s s i g n m e n t - B a s i c J S p e c i a l 41 C a t 4 . 2 - l n t e r e x c h a n g e 42 4 . 2 1 F u m t o o t e r s 43 4 . 2 2 \ N d e b a n d 44 I n t e r e x c h a n g e P L 45 D i r e c t A s s i g n m e n t 46 4 . 2 3 A l l o t e r 47 J o i n t M S G l L 48 I n t e r e x c h a n g e M S G J L - D A 49 P L - D A 50 D S L N o n a c c s s 51 C a t 4 . 3 - H o s t I e m o e M S G 52 J o i n t ( x I W A T S ) 53 W A r S 54 D i r e c t A s s i g n m e n t 54 T o t a l Ca 4 55 T O T A L C O E ~ T R A N S M I S S I O N 56 D e p r - I n f o O r i g f T e n n E q u i p 57 C a t 1 - Q e r l O T 58 C o i n l s P u b T e f E q 59 D i r e c t A s s i g n m e n t 60 T o t a l C a t e g o r y 1 61 C a t 2 - C u s t P r e m E q u i p 62 T O T A L I N F O O R I G I E R M E Q U I P Pr o p r i e t a r y I n f o r m a t i o n Ln 2 9 a * 6 8- 5 , L n 3 8 Di r e c t Di r e c t 8- 5 , L n 4 1 Di r e c t 8- 5 , L n 3 9 Di r e c t S- 1 5 , L n 4 8 Di r e c t Ln 4 2 s * 3 9 8- , L n 4 3 Dir e c t S- 1 5 , L n 5 6 Dir e c t Di r e c Dir e c t 8- , L n 6 5 Di r e Dir e c t Ln 3 0 . . 5 4 Ln 2 9 + 5 4 Ln 5 6 s " 0 7 ~, L n 1 8- , L n 2 Dir e c t Ln 5 7 . . 5 9 Dir e c t Ln 6 0 + 6 1 41 2 9 1 2 0 1 0 PL A N T N O N S P E C I F I C E X P E N S E S S- 1 2 SO U R C E PL I M O O to f Á L CO M P A N Y I MO O PL ~5,8 4 6 26 8 9,7 1 7 ,T J 75 26 8 67 40 , 3 6 1 22 , 1 6 6 30 0 I 72 4 56 , 4 8 56 , 4 8 24 , 4 9 7 24 , 4 9 7 4,8 5 5 4,8 5 5 26 8 _ 22 2,1 8 0 46 4,8 1 3 20 1 1,5 6 7 15 , 1 2 4 48 80 0 80 0 Mo s s A d a m s , L L P 16 0 1 2 7 41 2 9 / 2 0 1 0 Mid v a e T e l e p h o n e E x c h a n g e - 1 0 st u 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 st u d y Y e a r : 2 0 0 8 I MS G PL I MS G PL I De f i n e d LI N E DE S C R I P T I O N SO U R C E In In ' Ih l ti Ii Ik PL A N T N O N S P E C I I C E X P S E P A R A T I O N 57 De p r . G a b l e & W i r e F a c i l t i e s Ln 5 7 a * 8 sa Ca t 1 - E x c h L i n e x M 59 1.1 , 1 . 2 - P L , 1 . 3 J o i n U U s e d &- 1 5 , L n 7 4 I 94 . 3 9 : I 22 . 6 4 4 44 ~ I 73 2 :1 2,1 9 7 :1 21 , 1 7 9 44 ~ I 46 , 7 5 3 60 Dir e c t A s s i g n m e n t Dir e c t 61 To t a l C a t e g o r y 1 Ln 5 9 + 6 0 94 , 3 9 1 22 , 6 4 4 44 3 73 2 2,1 9 7 21 , 1 7 9 44 3 46 , 7 5 3 62 Ca t 2 - W B & E x c h T r u n k 63 Ex T r k - j o i n t m e s s a g e 5- 7 , L n 2 64 Ex T r k - E A S Di r e t I 7.3 5 1 t m II I I!I I ¿¡ 7,3 5 1 65 Ex L i n e V v 8-7 , L n 3 66 WB L i n e Dir e c t 67 WB T r u n k 8-7 , L n 4 68 'i T r u n k D A Dir e c t 69 To t l C a t e g o r y 2 1 7.3 5 1 I .1 .1 .1 .1 7,3 5 1 69 Ca t 3 - l n t e r e x c h a n g e C & V \ 70 \M P L - D i r e c t A s s i g n m e n t Dir e c t 71 Vv - J o i n t M e s s a g e 8- 7 , L n 2 3 n Jo i n t M 8 G , P L , T W & L o c a l x N J 8- 1 5 , L n 8 7 73 Jo i n t T W . I T 8- 7 , L n 2 5 74 Jo i n t T W - R m t &-7 , L n 2 6 75 In t e r e x c h a n g e . D A Di r e 76 DS L N o n a c c e s s Di r e 77 To t C a t e g o r y 3 Ln 6 9 . . 7 6 1 15 5 . 8 9 3 1 68 , 0 1 7 19 . 0 9 6 1 4, 0 0 8 . r . . . . . . . . m . . í ì . 0 6 3 :1 56 , 6 8 2,0 9 1 78 Ca t 4 - o s t I e m o C & W F 79 Jo i n t ( x I W A T S ) 5- 7 , L n 2 7 80 WA T S Di r e c t 81 Di r e c t A s s i g n m e n t Dir e c t 82 To t a l C a t e g o r y 4 Ln 7 9 . . 8 1 83 T O T A L C A B L E & W I R E F A C I L I T E S Ln 5 7 + 6 1 + 6 9 + n + 8 2 1 25 7 . 6 3 5 1 90 . 6 6 2 19 . 5 3 8 1 4, 7 4 0 .1 8, 2 6 1 .1 77 , 7 9 8 2.5 3 4 1 7,3 5 1 46 , 7 5 3 84 De p r . . r o p H i d F t T e l U s e Ln 8 4 a - e 85 Am o r t ~ a p i t l L e a s e s Ln 8 5 a * 1 0 86 Am o r t - L e a s e h o l I m p r o e m e n t s Ln 8 6 a * 1 1 87 Am o r t - I n t a n g i b l e A s s Ln 8 7 a * 1 2 88 Am o r t - O e r Ln 8 8 a * 1 3 89 Am o r t - D i r e c t A s s i g n m e n t Di r e 1 90 T O T A L D E P R & A M O R T E X P E N S E S Ln 5 . 8 8 43 0 . 5 0 4 1 18 3 , 3 5 3 28 . , 0 2 1 8, 1 4 0 ;1 11 , 6 3 7 ;1 11 0 , 1 6 5 5.5 9 5 1 8,4 5 4 75 , 0 5 9 91 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 + 9 0 49 4 , 0 0 2 21 5 , 5 9 9 31 , 1 0 2 8, 9 6 2 12 , 9 1 8 12 2 , 3 4 9 6,3 4 9 9,1 3 0 87 , 5 9 4 92 D i s t r i b u t i o n o f L i n e 9 1 Ln 9 1 1 9 1 a 10 0 . 0 0 0 0 % 43 . 6 4 3 3 % 6.2 9 5 9 % 1.8 1 4 2 % 2.6 1 5 0 % 24 _ 7 6 7 0 % 1.2 8 5 1 % 1. 8 4 8 1 % 17 . 7 3 1 4 % Pro p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 17 o f 27 41 2 9 1 2 0 1 0 Mid v a l e T e l e p h o n e E i c c h a n g e - 1 0 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 LI N E DE S C R I P T I O N SO U R C E SE P A R A T I O N S F A C T O R S 1 M a r k e t i n g e i c 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 e Re c 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 % 30 . 6 2 9 0 % : 1 0.9 9 0 0 % 2. 1 6 0 0 % : 1 20 . 8 1 7 0 % : 1 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 o 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 e d R e v e n u e i n d C C L 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 6 7 % ' . - 34 . 7 8 9 7 % 6 E U B i l e d I n q u i r y C o n t a 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 - 40 . 0 0 0 0 % 7 I X S v e O r d P r o c C o n t a c t s Re c o 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 0 % 9 i x B i l l l n q C o n t a 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 e r e s t P a t a i o n R e v n u e Re c o r d s MA R K E T I N G E X P E N S E S S E P A R A T I O N 11 6 6 1 0 M a r k e t i n g E x p n s e s Ln 1 1 a . 1 12 Dir e c t 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 I 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 v i c e : 16 Te l O p e r a r S V Ln 1 6 a " 2 I 2.8 5 2 17 Dir e c t A s s i g n m e n t Dir e c t 18 To t l T e l O p e r S v e E x p Ln 1 6 . . 1 7 2.8 5 2 19 Pu b l i s h e d D i r e c t L i s t i n g s ' 20 Cl a s s i f i e d Di r e c t 21 TW Di r e c t 22 Alp h a Ln 2 2 a . 3 23 Fo r e g n Di r e c t 24 To t l P u b l D i r e c t L i s t Ln 2 0 . . 2 3 25 Al l ote r : 26 Ca t 1 - L B O E E U S v e O r d P r o 27 Pr e s u b s c r i p t o n Di r e c t I 8, 7 0 8 1 8,7 0 8 28 oth e r Ln 2 8 a " 4 26 , 1 2 4 7,0 5 3 -I ~- - - ~ : r ~ ~ ~ O 4 ~ - ~ " " - : r . . . . . . . . . . à . Ö Ö 4 :1 13 , 0 6 2 29 Ca t 1 - L B O E E U P m t & C o l 30 -C L L Di r e c t 31 -o t h e r Ln 2 9 a " 5 1 26 . 1 2 4 1 8, 1 3 5 - ~ - ~ ~ - ' - T - ' - - ' - 6 2 5 ' - - ~ " : T -'6 : 2 7 5 :1 9,0 8 8 32 Ca t 1 - L B O E E U B i I l n q 33 -C i i Di r e 34 -o t e r Ln 3 2 a " 6 1 26 . 1 2 4 1 6, 5 3 1 ~ ~ ' ~ - - : T ~ " ' - ~ - : - ' - " - - : r ~ ' " 4 : 2 ~ ' - ~ " : T '( 5 7 2 :1 10 , 4 5 0 35 Ca t 1 - L B O E i x S v e O r d P r o c Ln 3 5 a " 7 36 Ca t 1 - L B O E i x P m t & C o l Ln 3 6 a " 8 37 Ca t 1 - L B O E I X B i I l n q Ln 3 7 a ' * 38 Ca t 1 - l B O E C n C o l & A d m i n Ln 3 8 a " 1 0 39 To t a l C a t 1 - L O E Ln 2 6 . . 3 8 1 87 . 0 8 0 I 30 . 4 2 7 -I -I 8.2 0 1 -I 15 . 8 5 1 -I 32 . 6 0 0 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s . L L P 18 0 f 2 7 Mid v a e T e l e p h o n e E x c h a n g e - 1 0 St u d y A r e : 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 40 R e l a v e T o l l & L o c a l M s g s P c l 41 C A B S P c l SE R V I C E S E X P S E P A R A T I O N ( C C N T ' D 42 C a t 2 . . S E M s g P r o t 43 J o i n t M e s s a g e 44 D i r e c t A s s i g n m e n t 45 C a t 2 . . S E O t e r B & C 46 D i r e c t A s s i g n m e n t 47 E n d U s e r C o m m o n U n e 48 C a t 2 - C S E C A B S 49 T o t a l C a t 2 - C S E 50 T o t l A l l o t h e r C a t 1 & 2 51 D i s t l i b u t i o n o f L i n e 5 0 52 C a t 3 - 1 O t h e r C S E 53 C a t 3 - l r e c t A s s i g n m e n t 54 T o t a l A l l O t e r C a t 3 55 T o t l A l l O t e r . . 1 , 2 , 3 56 T O T A L S E R V I C E S E X P E N S E S 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 58 D i s t r i b u t i o n o f L i n e 5 7 Pr o p r i e t a r y I n f o r m i o n 4/2 9 / 2 0 1 0 CU S T O M E R O P E R A T I O N S E X P E N S E S MS G PL MS G SO U R C E Re c o r d s Re c o r d s i Ln 4 2 a " ' 4 0 2,4 9 3 70 8 49 1,7 3 6 Di r e c t Di r e c t 33 , 4 0 5 9,9 6 3 11 , 7 2 1 -I 11 , 7 2 1 Di r e c t 1. 7 5 8 1.7 5 8 Ln 4 8 s " ' 4 1 10 , 5 6 4 5,2 8 2 2,6 4 1 2,6 4 1 Ln 4 2 . . 4 8 48 , 2 2 0 17 , 7 1 1 2,6 9 0 16 , 0 9 8 ;/ 11 , 7 2 1 Ln 3 9 + 4 9 13 5 , 3 0 0 48 , 1 3 8 10 , 8 9 1 31 , 9 9 44 , 3 2 1 Ln 5 0 1 0 a 10 0 . 0 0 0 0 % 35 . 5 7 9 1 % 8. 0 4 9 8 % 23 . 6 1 3 5 % 32 . 7 5 7 6 % Ln 5 2 a " ' 5 1 Dir e c t 2,1 7 3 2, 1 7 3 Ln 5 2 . . 5 3 2,1 7 3 2, 1 7 3 Ln 5 0 + 5 4 13 7 . 4 7 3 50 , 3 1 1 10 , 8 9 1 31 . 9 4 9 44 , 3 2 1 Ln 1 8 + 2 4 + 5 5 14 0 , 3 2 5 SO , 3 1 1 10 , 8 9 1 34 . 8 0 1 44 , 3 2 1 Ln 1 3 + 5 6 14 0 , 3 2 5 50 , 3 1 1 10 , 8 9 1 34 , 8 0 1 44 , 3 2 1 Ln 5 7 / 5 7 a 10 0 . 0 0 0 0 % 35 . 8 5 3 5 % 7. 7 6 1 6 % 24 . 8 0 0 3 % 31 . 5 8 4 6 % Mo s s A d a m s , L L P 19 0 f 2 7 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 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 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 i 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 T e 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 r i b u t i 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 U o t e r 9 D i r e c t A s s i g n m e n t 10 T O T A L E X E C & P L A N N I N G E X P E N S E S 11 6 7 2 0 G e n ' l a n d A d m i n E x p n s e s 12 E A S 13 A l l 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 SO U R C E 5-3 , L n 6 5-2 , L n 1 5 5-9 , L n 2 8 S- 2 , L n 3 7 S- 3 , L n 2 7 Di r e c t Ln 8 a " 1 Di r e c t Ln 7 . . 9 Dir e c t Ln 1 3 a " 1 Dir e c t Ln 1 2 . . 1 4 16 T O T A L C O R P O R A T E O P E R E X P E N S E S L n 1 0 + 1 5 17 D i s t r i b u t o n o f U n e 1 6 L n 1 6 f 1 6 a I O P E R A T I N G T A X E S S E P A R A T I O N S I 18 7 2 0 0 O p e r a t i n g T a x e s ( A c t u a l ) 19 F e d e r a l In c o m e T a x e s L n 1 9 ø " 5 20 s t e & L o c In c o m e T a x e s L n 2 0 a " 5 21 O P F E D , S T A T E , L O C A L T A X E S - C W 22 S c h e d u l e M I n c o m e T a x A d j u s b n e n t Ln 2 2 a " 2 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 n g T a x e s - o t h e r L n 2 4 a * 2 25 O p e r a 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 f F I T , S I T L n 2 3 . . 2 5 1 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 1 27 5 0 0 0 B a s i c L o c a l R e v e n u e D i r e c t 28 5 0 8 0 I n t e r s t a t e A c c e s s J n d U s e r R e v n u e D i r e c 29 5 0 8 4 S t a e A c c s s f E n d U s e r R e v n u e D i r e c t 30 5 1 0 0 L o n g D i s t a n c e M e s a g e R e v n u e D i r e 31 5 2 0 0 M i s c e l l a n e o u s O p e r a n g R e v e n u e D i r e c t 32 7 1 0 0 o t h e r Op e r a t i n g I n c o m e D i r e 33 T O T A L OP E R A T I N G RE 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 s s E x p e n s e L n 3 4 a * 3 35 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 I w a n c e s f D i s a U o w a n c e s 37 I n t e r e s t o n C u s t o m e r D e p o s i t s 38 o t h e r I n t e r e s t D e d u c t 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 f O l S A L L O W A N C E S No t e 1 : F I T a n d S I T C a l c l a t 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 t o n Ln 3 7 a * 4 Ln 3 7 a " 4 Dir e c t Ln 3 7 . . 3 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 in t r ~ '" TO T A L I In t e r L T A CO M P A N Y ~~ G PL ~~ ; ' ;. ~ ~~ G ::~ c 10 0 . 0 0 0 0 % 44 . 8 0 6 1 % 7.0 2 9 9 % 1.5 5 5 3 % 2.6 0 3 4 % 20 . 1 9 9 4 % 1. 6 9 8 9 % 0.8 5 8 5 % 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5. 8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1. 3 2 3 6 % 10 0 . 0 0 0 0 % 43 . 3 3 3 6 % 5. 3 1 6 9 % 2. 1 0 8 8 % 3.0 0 6 % 28 . 3 0 6 % 1.0 5 8 % 1. 8 9 4 1 % 10 0 . 0 0 0 0 % 44 . 8 8 2 1 % 6.7 0 2 3 % 1.6 2 6 9 % 2. 6 0 8 5 % 21 . 4 5 6 3 % 1.5 6 2 3 % 1. 1 0 8 1 % 18 5 , 3 7 1 83 . 0 5 8 13 , 0 3 1 2,8 8 3 4,8 2 6 37 , 4 4 4 3,1 4 9 1,5 9 1 18 5 , 3 7 1 83 , 0 5 8 13 , 0 3 1 2,8 8 3 4,8 2 6 37 , 4 4 4 3,1 4 9 1,5 9 1 30 6 , 5 7 8 13 7 , 3 6 21 , 5 5 2 4,7 6 8 7,9 8 1 61 , 9 2 7 5,2 0 9 2, 6 3 2 22 , 7 4 9 22 . 7 4 9 . 32 9 , 3 2 7 16 0 , 1 1 5 21 , 5 5 2 4,7 6 8 7,9 8 1 61 , 9 2 7 5,2 0 9 2.6 3 2 51 4 , 6 9 8 24 3 , 1 7 3 34 , 5 8 3 7.6 5 2 12 , 8 0 7 99 , 3 7 1 8,3 5 8 4,2 2 3 10 0 . 0 0 0 0 % 47 . 2 4 5 7 % 6.7 1 9 1 % 1.4 8 6 % 2.4 8 8 3 % 19 . 3 0 6 6 % 1.6 2 3 9 % 0. 8 2 0 6 % (5 0 . 4 5 9 ) (2 2 . 6 7 ) (3 . 3 8 2 ) (8 2 1 ) (1 . 3 1 6 ) (1 0 . 8 2 7 ) (7 8 8 ) (5 5 9 ) (1 1 . 8 6 1 ) (5 . 3 2 3 ) (7 9 5 ) (1 9 3 ) (3 0 9 ) (2 . 5 4 5 ) (1 8 5 ) (1 3 1 ) (6 2 , 3 2 0 ) (2 7 , 9 7 1 ) (4 . 1 n ) (1 , 0 1 4 ) (1 , 6 2 6 ) (1 3 , 3 7 2 ) (9 7 4 ) (6 9 1 ) 29 , 0 0 11 , 2 4 1 1,7 0 5 46 7 72 8 6,9 2 4 42 8 38 4 76 8 76 8 29 , 7 6 8 12 , 0 0 9 1. 7 0 5 1 48 7 -I 72 8 -I 6,9 2 4 42 8 1 38 4 41 2 9 1 2 0 1 0 8-1 4 21 . 2 4 8 4 % 24 . 5 6 1 2 % 14 . 9 7 5 3 % 20 . 0 5 3 5 % 39 , 3 8 8 39 , 3 8 8 65 , 1 4 3 65 , 1 4 3 10 4 , 5 3 1 20 . 3 0 9 3 % (1 0 , 1 1 9 (2 , 3 7 9 ) 1 (1 2 . 4 9 7 7,1 2 3 7,1 2 3 Mo s s A d a m s , L L P 20 o f 2 7 Mi d v l e T e l e p h o n e E x c h a n g e - 1 0 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 2 1 1 0 S u p p o r t A s s e t s D i s t r 2 2 2 1 0 C O E - S w i h i n g , i n c l . E A D i s t r 3 2 2 2 0 C O E - 0 p e r a r D i s t r 4 2 2 3 0 C O E - T r a n s m i s s i o n D i s t r 5 2 3 1 0 l O T D i s t r 62 4 1 0 C & W F D i s t r 7 2 0 0 1 T P I S x l a n d 8 G e n e r a l S u p p o r t , C O E , l O T , C & ' i 9 2 0 0 2 P r o p H i d F t r T e l U s e D i s t r 10 2 6 8 0 C a p t i a l L e a s e s O i s r 11 2 6 8 0 L e a s e h o l d I m p r o m e n t s 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 13 2 0 0 5 8- , L n 9 8- 5 , L n 3 7 + 8 - , L n 2 6 8- , L n 2 4 8- , L n 7 8 S- 6 , L n 1 2 8- 7 . L n 4 4 8- 2 , l o 1 8 8- 2 , L n 1 + 8 8- 9 , L n 7 8- , L n 1 9 8- , L n 3 0 S-8 , L n 3 6 8-9 , L n 1 5 41 2 1 2 0 1 0 RE S E R V E S & D E F E R R A L S ... . . . . . . L LE . tL K . . K f K t TO T A L I In t _ I L I A In l t L A I A in l e l L l A In t r a L CO M P A N Y M8 G PL M8 G ;. ~ M( ~ G ;. ~ M8 G PL b c d 'h I m 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1. 6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1. 4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 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 . 2 5 4 4 % 15 . 4 5 4 5 % 1.1 1 6 6 % 2. 6 3 2 7 % 25 . 3 9 8 2 % 3.6 4 7 9 % 0.9 5 3 2 % 16 . 5 4 2 5 % 10 0 . 0 0 0 0 % 31 . 8 7 8 7 % 4.0 1 5 1 % 1.5 0 6 2 % 2. 9 5 2 2 % 27 . 9 7 6 1 % 1.0 8 2 4 % 1.6 9 2 9 % 28 . 8 9 6 3 % 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5. 8 7 8 3 % 1.6 1 1 8 % 2. 5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5. 8 7 8 3 % 1.6 1 1 8 % 2. 5 0 9 8 % 23 . 8 7 6 6 % 1. 4 7 7 % 1.3 2 3 6 % 24 . 5 6 1 2 % SO U R C E LS S E P A R A n O N 15 3 1 0 0 A c c u m D e p r . T e l P i t i n S v c 16 S u p p o r t A s s e t s 17 S u 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 18 C O E - S w i t c h i n g 19 C a t 2 . T a n d e m S V v c h i n g 20 D i r e c t A s s i g n m e n t 21 C a t 3 - L o c a l S w i t c h i n g - T 8 22 C a t 3 - L o c a l S w i t c h i n g - N T S 23 D i r e c t A s s i g n m e n t 24 T O T A L C O E - s T C H I N G 25 C a E - O p e r a r 26 C a t , . . p e r a o r S y s e m s 27 L o c , T o l l , D S A , D S B , a n d 28 T r a c S w i t c h b o a r d s 29 A u x - D i r e c t A s s i s t 30 A u x - I n t e r c p t 31 J t E x c l & T o R S O B 32 T S P ~ e r P o s i t i o n 33 T S P S - R T A 34 T S P 8 - h e r 35 D i r e c t A s s i g n m e n t 36 T o t a l C a t 1 37 T O T A L C O E - o E R A T O R Pro p r i e t a i y I n f r m a t i o n Dir e c t Ln 1 6 a * ' Di r e c t Ln 1 8 a * 2 8- , l o 8 Di r e c t 8-, L n 9 8- , L n 9 Di r e Ln 1 8 + 2 3 Ln 2 5 a * 3 8- 5 , L n 1 8- , L n 2 8- , L n 3 8- 5 , L n 4 8- , L n 5 8- 5 , L n B 8- 5 , L n 7 Dir e c t Ln 2 6 . . 3 5 Ln 3 6 1,3 2 6 , 5 9 2 51 4 , 2 0 7 77 , 9 8 1 21 , 3 8 2 1,1 1 3 , 1 7 1 33 , 0 6 1 91 3 , 1 3 4 33 , 0 6 1 1,1 1 3 , 1 7 1 91 3 , 1 3 4 Mo s s A d a m s , L L P 33 , 2 9 4 31 6 , 7 4 5 32 5 , 8 2 7 19 , 5 9 5 17 , 5 5 9 16 6 , 9 7 6 16 6 , 9 7 6 21 of 27 41 2 9 / 2 0 1 0 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 stu d y A r e a : 4 7 2 2 2 6 RE S E R V E S & D E F E R R A L S stu d y Y e a r . 2 0 0 8 MS G PL 1 M S G PL 1 MS G PL LIN E DE S C R I P T I O N SO U R C E b c -- d RE S E R V E S & D E F E R R A L S S E A R A 0 38 CO E - T r a n s m i s s i o n Ln 3 8 a * 4 39 Ca t 4 . 1 . - c h a n g e C i r c i t 40 4.1 1 \ N d e b a n d ~ U n e 5-, L n 3 8 41 Dir e c t A s s i g n m e n t Di r e c t I 39 7 , 3 7 0 42 4.1 2 E x c h T r u n k . E A S Di r e c t 22 , 3 5 5 43 Ex T r k x M I . B a s i c 8- 5 , L n 4 1 44 Ex T r k x M I - B a s i c O A Di r e 45 Ex Tr k VV 8- , L n 3 9 46 Ex c h T r k w e . O i r e c t A s s i g n m e n t Di r e 47 4.1 3 E x L i n e x A N 48 Jo i n t M S G / L & L o a l S.. , L n 5 4 b * 3 5 I 78 1 . 7 1 2 1 18 7 , 5 3 2 3, 6 6 1 6,0 6 3 -I 18 , 1 9 8 49 Dir e c t A s s i g n m e n t - B a s i e / S p e c i a l Di r e 50 Ca t 4 . 2 - 1 n t e r e h a n g e 51 4. 2 1 F u m t o O t h e r s Di r e c 52 4. 2 2 W i d e b a n d 53 ln t e r e x c h a n g e P L $- , L n 4 3 54 Dir e c t A s s i g n m e n t Dir e c t I 16 . 7 4 8 1 8,6 8 4 55 4.2 3 A l l o t e r 56 Jo i n t M S G / L 8- 5 , L o 6 7 1,1 4 8 , 4 7 8 63 0 , 7 4 6 8,5 3 3 1 20 , 6 1 1 -I 44 , 5 9 0 57 In t e r e x c h a n g e M S G l P L - D A Dir e c t 58 PL - D A Dir e c 59 DS L N o n a c c e s s Di r e 60 Ca t 4 . 3 - o s R e m o e M S G 61 Jo i n t ( x J A T S ) 8- , L n 6 5 62 WA T S Di r e t 63 Dir e c t A s s i g n m e n t Di r e c t 63 To t l Ca t 4 Ln 3 9 . . 6 3 I 2. 3 6 . 6 6 0 I 81 8 , 2 7 8 36 1 . 2 2 7 1 26 , 6 7 5 64 T O T A L C O E a T R A N S M I S S I O N Ln 3 8 + 6 3 2. 3 6 . 6 6 0 81 8 . 2 7 8 36 1 , 2 2 7 26 . 8 7 5 85 In f o O r i g l e r m E q u i p Ln 6 5 a * 5 66 Ca 1 - O t h e r l O T ~, L n 1 67 Co i n l s P u b T e l E q ~,L n 2 68 Di r e c t A s s i g n m e n t Di r e c t 69 To t l C a t e g o r y 1 Ln 6 6 . . 6 8 70 Ca t 2 . . u s t P r a m E q u i p Di r e c t 71 T O T A L I N F O O R I G I E R M E Q U I P Ln 6 9 + 7 0 22 . 3 5 5 _ 17 5 , 3 9 7 3,6 6 5 38 7 , 1 9 1 8. 6 5 43 0 , 3 4 5 1 3 , 6 5 2 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 22 o f 27 41 2 1 2 0 1 0 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 Stu d y A r e a : 4 7 2 2 2 6 RE S E R V E S & D E F E R R A L S stu d y Y e a r : 2 0 0 8 -- CO M P A N Y I MS G PL I MS G PL I MS G PL I MS G PL LI N E DE S C R I P T I O N SO U R C E I l a ' Ib ' Ie ' 10 ' Ie ' In I. ' Ih 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 I 72 C& W F Ln 7 2 a " 6 73 Ca t 1 - E x c h L i n e x M 74 1.1 , 1 . 2 - P L , 1 . 3 J o i n t l y U s e d S- 7 , L n 7 . L n 9 I 4. 0 2 3 . 8 0 8 1 96 5 , 3 0 8 18 . 8 6 5 1 31 , 2 1 1 :1 93 , 6 7 3 :1 90 2 , 8 4 6 18 , 8 6 ~ I 1,9 9 3 , 0 3 8 75 Dir e c t A s s i g n m e n t Di r e c t 76 To t l C a t e g o r y 1 Ln 7 4 + 7 5 4,0 2 3 , 8 0 6 96 , 3 0 8 18 , 8 6 5 31 , 2 1 1 93 , 6 7 3 90 2 , 8 4 6 18 , 8 6 5 1,9 9 3 , 0 3 8 77 Ca t 2 - \ 1 & E x c h T r u n k 78 Ex T r k - j o i n t m e s s a g e S- 7 , L n 2 79 Ex Tr k - E A S Di r e c t 1 60 , 0 3 2 r c % - 60 , 0 3 2 80 Ex Lin e WB 8- 7 , L n 3 81 \N L i n e Di r e 52 , 9 7 8 82 IN T r u n k S- 7 , L n 4 83 \/ T r u n k D A Di r e c t 84 To t a l c a e g o r y 2 I 11 . 0 1 0 1 18 , 9 7 2 1 -I -I 34 , 0 0 6 1 60 , 0 3 2 84 Ca t 3 - l n t e r e x c h a n g e C & V \ 85 \/ P L - D i r e c t A s s i g n m e n t Di r e c t 12 4 , 5 0 5 86 \N - J o i n t M e s s a g e $. 7 , L n 2 3 87 Jo i n t M S a , P L , T W & L o c l x N l 8- 7 , L n 3 1 . . L n 3 2 65 9 , 0 7 0 88 Jo i n t T W - I T $- 7 , L n 2 5 89 Jo i n t T W - R m t 8- 7 , L n 2 6 90 In t e r e x c h a n g e - D A Dir e c t 91 DS L N o n a c c e s s Dir e c t 92 To t l C a t e g o r y 3 Ln 8 4 . . 9 1 1 78 3 . 5 7 5 1 32 8 . 8 6 12 3 , 0 6 9 1 19 , 3 5 4 -I 29 , 2 8 2 -I 27 3 . 3 6 9,9 4 8 93 Ca t 4 - e m o t C & W F 94 Jo i n t ( x M A T S ) 8- 7 , L n 2 7 95 WA r S Dir e c t 96 Dir e c t A s s i g n m e n t Di r e 97 T o t f C a t e g o r y 4 Ln 9 4 . . 9 6 98 T O T A L C A B L E & W I R E F A C I L I T I E S Ln 7 2 + 7 6 + B 4 + 9 2 + 9 7 I 4.9 2 0 . 3 9 1 I 1, 2 9 3 , 7 9 4 16 0 . 9 0 6 1 50 , 5 6 5 :1 12 2 , 9 5 4 :1 1,1 7 6 , 2 8 2 62 ' 8 1 8 1 60 , 0 3 2 1,9 9 3 , 0 3 8 99 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 . . 7 2 9, 7 2 6 , 8 1 3 3,5 3 9 , 4 1 3 60 0 . 1 1 3 13 1 , 6 8 3 21 9 , 0 3 7 2,0 9 8 , 7 7 0 16 4 , 8 1 8 99 . 9 6 2,8 7 3 , 0 3 2 10 0 3 2 0 A c c u m D a p r P r o p e r t H e l d 10 1 Fo r F u t u r e T e l e c o m U s e Ln 1 0 1 a * 9 10 2 3 4 0 0 A c c u m A m t r t - C a p i t l L e a s e s Ln 1 0 2 a * 1 0 10 3 3 4 0 0 A c c u m A m o r t - L e a s e h o l d I m p r o m e n t Ln 1 0 3 a * 1 1 10 4 3 5 0 0 A c c u m A m o r t - I n t n g i b l e Ln 1 0 4 a * 1 2 10 5 3 6 0 0 A c c u m A m o . . e r Ln 1 0 S a * 1 3 10 6 4 0 4 0 C u s t o m e r D e p o s i t s Ln 1 0 6 a * 7 I ~~ i 15 5 2~ i 6 :1 '0 :1 96 ~ I 5 98 10 7 Dir e c t A s s i g n m e n t Dir e c t 10 8 T O T A L C U S T O M E R D E P O S I T S Ln 1 0 6 . . 1 0 7 ~O 15 5 24 6 '0 96 5 98 10 9 4 1 0 0 N e t Cu r De f O p I n c T a x e s 11 0 Su p p o r t A s s e t s Ln 1 1 0 a * 1 11 1 CO E - 8 w i t c h i n g Ln 1 1 1 a * 2 11 2 CO E - O r a r Ln 1 1 2 a * 3 11 3 CO E - T r a n s m i s s i o n Ln 1 1 3 a * 4 11 4 In f o O r i g l e n n E q u i p Ln 1 1 4 a ' " S 11 5 C& W F Ln 1 1 S a * 6 11 6 No t C l a s s i f i d b y A c e Ln 1 1 6 a * 8 11 7 T O T A L N E T C U R D E F O P I N C T A X E S Ln 1 1 0 . . 1 1 6 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 23 0 f 2 7 41 2 9 / 2 0 1 0 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 Stu d y A r e a : 4 7 2 2 2 6 RE S E R V E S & D E F E R R A L S 8- 1 5 ~n " ' ' ' 1 i ~ Q ' . . . v . . . . ~' A ,. . 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' " LU ~ A L TO T A L ,n t r a L A I A ,n t e r L A ' A In i r a L A I A cA t i us e r Ot h e r CO M P A N Y MS G PL MS G ~~ M( ~ G ;.~ MS G PL De f i n e d LIN E DE S C R I P T I O N SO U R C E ., b le I dl (h I ti ti tk l (I SE P A R A T I O N S F A C T O R S 11 8 B i g T h r e e E x p e n s e s D i s t r S.J , L n 6 10 0 . 0 0 0 0 % 44 . 8 0 6 1 % 7. 0 2 9 9 % 1.5 5 5 3 % 2.6 0 3 4 % 20 . 1 9 9 4 % 1. 6 9 8 9 % 0.8 5 8 5 % 21 . 2 4 8 4 % 11 9 2 1 1 0 S u p p o r t A s s e t s D i s t r S- 4 , L n g 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5. 8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 8 % 1.4 7 7 1 % 1. 3 2 3 6 % 24 . 5 6 1 2 % 12 0 2 2 1 0 C O E - 8 w i h i n g D i s t r 8- 1 5 , L n 2 10 0 . 0 0 0 0 % 82 . 0 3 0 0 % 2.9 7 0 0 % 15 . 0 0 0 0 % 12 1 2 2 2 0 C O E - o p e r a t o r O i s t r $. , L n 2 4 12 2 2 2 3 0 C O E - T r a n s m i s s i o n O i s t r S- 5 , L n 7 8 10 0 . 0 0 0 0 % 34 . 2 5 4 4 % 15 . 4 5 4 5 % 1.1 1 6 6 % 2.6 3 2 7 % 25 . 3 9 8 2 % 3.6 4 7 9 % 0.9 5 3 2 % 16 . 5 4 2 5 % 12 3 2 3 1 0 l O T O i s l r S- 6 , L n 1 2 12 4 2 4 1 0 C & W F O i s t S.7 , L n 4 4 10 0 . 0 0 0 0 % 31 . 8 7 8 7 % 4.0 1 5 1 % 1.5 0 6 2 % 2.9 5 2 2 % 27 . 9 7 6 1 % 1.0 8 2 4 % 1.6 9 2 9 % 28 . 8 9 6 3 % 12 5 2 0 0 1 T P I S x l L a n d 8- 2 , L n 1 8 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 12 6 2 0 0 1 T P I S O i s t r 8- 2 , L n 1 5 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 12 7 2 0 0 1 T P I S D i s t r 8-2 , L n 1 + 8 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % 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 12 8 4 3 1 0 o t h e r Lo n g - T e r m L i a b i l i t i e s Ln 1 2 8 a " 1 1 8 12 9 4 3 4 0 N e t N o n c u r r n t D e f T a x e s 13 0 Su p p o r t A s s e t s Ln 1 3 0 a " 1 1 9 13 1 CO E - S Y J t c h i n g Ln 1 3 1 a " 1 2 0 - - 13 2 CO E - o p e r a r Ln 1 3 2 a " 1 2 1 13 3 CO E - T r a n s m i s s i o n Ln 1 3 3 a " 1 2 2 - 13 4 In f o O r i g I e m i E q u i p Ln 1 3 4 a " 1 2 3 13 5 C& W F Ln 1 3 5 a " ' 2 4 - 13 6 No t C l a s s i f i e d b y A c c Ln 1 3 6 a " 1 2 5 28 7 , 3 3 4 11 1 , 3 7 5 16 , 8 9 0 4, 6 3 1 7,2 1 1 68 , 6 0 6 4,2 4 4 3.0 3 70 . 5 7 3 13 7 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 Ln 1 3 0 . . 1 3 6 28 7 , 3 3 4 11 1 , 3 7 5 16 , 8 9 0 4, 6 3 1 7,2 1 1 68 , 6 0 6 4,2 4 4 3,8 0 3 - 70 , 5 7 3 13 8 4 3 6 0 o t h e r D e f e r r e d C r e d i t s - e t Ln 1 3 8 a " 1 2 6 13 9 4 3 7 0 o t h e r J u r i s L i a b i l t i e s 14 0 & D e f e r r d C r e d i t - N e t Dir e c t - I AC C U M D E P R & A M O R T A L L O W I D I S A L L O W I 14 1 A c c u m D e p r & A m o r t A l l o w D i s a l l o w Ln 1 4 1 a " 1 2 5 - 14 2 Di r e c t A s s i g n m e n t Dir e c t 14 3 T O T A L A C e D E P R J A M O R T A L W I O I S A L L O W Ln 1 4 1 . . 1 4 2 Pr o p r i e t a i y I n f o r m t i o n Mo s s A d a m s , L L P 24 0 1 2 7 4/2 9 / 2 0 1 0 Mid v a l e T e l e p h o n e E x c h a n g e - 1 0 St u d y A r e a : 4 7 2 2 2 6 CA S H W O R K I N G C A P I T A L S- 1 6 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 LIN E DE S C R I P T I O N SO U R C E . CA S H V V R K I N G C A P I T A L 1 P l a n t S p e c i f i c E x p e n s e s 8. 1 1 , I n 3 1 1, 3 4 4 , 6 4 1 61 4 , 3 7 1 10 4 , 2 6 3 / 23 , 1 0 3 ~ I 27 , 7 5 8 ~ I 26 5 , 5 6 3 25 . 2 0 4 1 12 , 8 0 0 27 1 , 5 8 0 2 P l a n t N o n s p e c i f i c e x p e x c l d e p r e i a t i o n & a m o r t i z a t o n S- 1 2 , L n 1 6 a * 2 3 63 , 4 9 8 32 , 2 4 6 3,0 0 0 82 3 1, 2 8 1 12 , 1 8 5 75 4 67 5 12 , 5 3 4 3 C u s t o m e r O p e r a t i o n s E x p n s e . M a r k e t i n g 8- 1 3 , L n 1 3 4 C u s t o m e r O p e r a o n s E x p e n s e - S e r v c e s 8- 1 3 , L n 5 6 14 0 , 3 2 5 50 , 3 1 1 10 , 8 9 1 34 , 8 0 1 44 , 3 2 1 5 C o r p o r a t e O p e r a t i o n s E x p e n s e 8- 1 4 , L n 1 S 51 4 , 6 9 8 24 3 , 1 7 3 34 , 5 8 3 7,6 5 2 12 , 8 0 7 99 , 3 7 1 8, 3 5 8 4. 2 2 3 10 4 , 5 3 1 6 E q u a l A c c e s s E x p e n s e 8- 1 4 , L n 3 4 7 o t e r N o n o p e r a t i n g E x p e n s e - C o n t r b u t o n s 8- 1 0 , L n 1 6 8 I n t e r e s t o n C a p i t l L e a s e s 8- 1 0 , L n 2 0 9 F i x e d C h a r g e s e x c l C a p i t l L e a s e s 8- 1 0 , L n 2 1 18 1 , 4 4 5 78 , 5 4 3 9,6 3 ~ I 3,8 2 2 :1 5.4 5 5 :/ 51 , 3 5 8 1. 9 2 ~ I 3, 4 3 5 27 , 2 7 3 10 I n t e r e s t o n C u s t o m e r D e p o s i t 8- 1 0 , l o 1 7 11 o t h e r Op e r a t i n g T a x - P r o p e r t 8.1 0 , L n 2 3 29 , 0 0 0 11 , 2 4 1 1. 7 0 5 46 7 n8 6, 9 2 4 42 8 38 4 7,1 2 3 12 O t h e r Op e r a t i n g T a x - O t e r 8- 1 0 , L n 2 4 13 o t h e r O p e r a t i n 9 T a x - D i r e c t A s s i g n m e n t 8-1 0 , L n 2 5 76 8 76 8 14 F e d e r a l l n c o r n T a x ( A c t a l ) 8-1 0 , L n 1 9 (5 0 . 4 5 9 ) (2 2 . 6 4 7 ) (3 . 3 8 2 ) 1 (8 2 1 ) 60 0 1 4 ~ I (1 , 3 1 6 ) 60 0 1 4 ~ I (1 0 . 8 2 7 ) 17 8 8 l / (5 5 9 ) (1 0 , 1 1 9 ) 15 S t a t e I n c o m e T a x ( A c t a l ) 8-1 0 , L n 2 0 (1 1 . 8 6 1 ) (5 , 3 2 3 ) (7 9 5 ) (1 9 3 ) (3 0 9 ) (2 . 5 4 5 ) (1 8 5 ) (1 3 1 ) (2 , 3 7 9 ) , 16 To t a l C a s h W o r k i n g C a p i t l E x p e n s e s Ln 1 . . 1 5 2, 2 1 2 , 0 5 5 1,0 0 2 , 6 8 3 14 9 , 0 1 2 34 , 8 5 2 57 . 2 9 4 45 6 , 8 3 0 35 , 6 9 1 20 , 8 2 8 45 4 , 8 6 5 17 C a s h W o r k i n g C a p i t l F a c t o r Re c o r d s 6.9 0 1 4 % 6. 9 0 1 4 % 6.9 0 1 4 % 6.9 0 1 4 % 6.9 0 1 4 % 6.9 0 1 4 % 6.9 0 1 4 % 6.9 0 1 4 % 6. 9 0 1 4 % 18 C a s h W o r k i n g C a p i t a l Ln 1 5 . L n 1 7 15 2 , 6 6 2 69 , 1 9 9 10 . 2 8 4 2,4 0 5 3, 9 5 4 31 , 5 2 8 2,4 6 3 1,4 3 7 31 , 3 9 2 19 M i n i m u m B a n k B a l a n c e Re c o r d s 20 W o r k i n g C a s h A d v a n c e s Re c o r d s 21 To t l C a s h W o r k i n g C a p i t l I 15 2 , 6 6 2 1 69 , 1 9 9 10 , 2 8 4 1 2,4 0 5 :1 3, 9 5 4 :1 31 , 5 2 8 2, 4 6 3 1 1,4 3 7 31 , 3 9 2 22 D i s t r i b u t i o n o f L i n e 2 0 Ln 2 1 1 2 1 a 10 0 . 0 0 0 0 % 45 . 3 2 8 1 % 6.7 3 6 3 % 1.5 7 5 6 % 2. 5 9 0 1 % 20 . 6 5 1 8 % 1. 6 1 3 5 % 0.9 4 1 5 % 20 . 5 6 3 0 % Pro p r i e 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 25 0 f 2 7 Mi d v a l e T e l e p h o n e E x c h a n g e - I D stu d y A r e a : 4 7 2 2 2 6 Stu d y Y e a r : 2 0 0 8 LN DE S C R I P T I O N SO U R C E 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 8 A F T E R T A X I N C O M E B E F O R E T A X C R E D I T S 7 F I T B E F O R E T A X C R E D I T S ( M U S T E Q U A L L N 1 7 ) 8 T A X B L E I N C O M E 9 F I T ON $ 0 to $5 0 , 0 0 0 ( l 1 5 % 10 F I T O N $ 5 0 , 0 0 0 t o $ 7 5 , 0 0 0 € l 2 5 % 11 F I T O N $ 7 5 , 0 0 0 t o $ 1 0 0 , O O O ~ 3 4 % 12 F I T O N $ 1 0 0 , 0 0 0 t o $ 3 3 5 , 0 0 0 4 J 3 9 % 13 F I T O N $ 3 3 5 , 0 0 0 t o 5 1 0 , O O O , 0 0 0 ~ 3 4 % 14 F I T ON 5 1 0 , 0 0 0 , 0 0 0 to $ 1 5 , 0 0 0 , 0 0 0 ~ 3 5 % 15 F I T ON $ 1 5 , 0 0 0 , 0 0 0 t o $ 1 8 , 3 3 3 , 3 3 3 f l 3 8 % 18 F I T O N O V E R $ 1 8 , 3 3 3 , 3 3 3 C l 3 5 % 17 T O T A L T A X B L E I N C O M E I F 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 S-1 , l n 1 8- 1 , L n 4 ln 1 a " ' 15 % 25 % 34 % 39 % 34 % 35 % 38 % 35 % lN s 9 . . 1 6 Pr o p r i e t a r y I n f o r m a t o n Ta x a b l TO T A L 5. 2 2 1 . 7 5 3 8.6 1 7 4 % 44 9 , 9 7 7 18 1 , 4 4 5 26 8 , 5 3 2 13 8 , 3 3 5 40 6 . 8 6 7 50 , 0 0 0 25 , 0 0 25 , 0 0 23 5 , 0 0 0 71 , 8 6 7 40 6 , 8 6 7 TA X FO R M IN C O M E TA X TO T A L l S u r T a x 13 8 , 3 3 5 34 . 0 0 0 0 % 41 2 9 1 2 0 1 0 8-1 7 7,5 0 0 6,2 5 0 8,5 0 0 91 , 6 5 0 24 , 4 3 5 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 26 o f 2 7 41 2 9 / 2 0 1 0 Mid v l e T e l e p h o n e E x c h a n g e - 1 0 Stu d y A r e a : 4 7 2 2 2 6 Stu d y Y e a r : 2 0 0 8 DIS 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 i; , " ; ¡X y X'' ' ' ' ' ' X , y ; ; ; , ' , ; X , ; LO C A L ' : ; ' " ; , ; " " " , , ,? i X \X \ r ' , ",' ; x ' , r ' ; , MS G I n l e r L T A P L MS G I n t r a L A T A P L MS G I n l e r L T A P L MS G I n t r LA T A P L EA S Us e r ot e r I I Al De f i n e d AL L O C A T I O N R A T I O S ee t , " o r v To t a l 10 1 Ie ) 10 1 le i In 10 1 (h ) Ii) (j Ik ) (I Ca p l t l l n v e l l t m S u m m a I ' Ge n e r a l S u p p o r t F a c i l i t i e s 21 1 0 10 0 . 0 0 0 0 % 38 , 7 6 1 5 % 5.8 7 8 3 % 1. 6 1 1 8 % H0 9 6 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % CO E S w i c h 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 t o r S y s t e m s E q u i p m e n t 22 2 0 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 . 2 5 4 4 % 15 . 4 5 4 5 % 1.1 1 6 6 % 2.6 3 2 7 % 25 . 3 9 8 2 % 3.6 4 7 9 % 0.9 5 3 % 16 . 5 4 2 5 % In f o r m a t i o n O r i g r r 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 i t i e s 24 1 0 10 0 . 0 0 0 0 % 31 . 8 7 8 7 % 4. 0 1 5 1 % 1.5 0 6 2 % 2. 9 5 2 2 % 27 - 7 6 1 % 1, 0 8 2 4 % 1.6 9 2 9 % 28 . 8 9 6 3 % Ta n g i b l e A s s e s 26 8 0 . 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To t a 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 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % H0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1. 3 2 3 6 % 24 . 5 6 1 2 % Ac c u m u l a t e d D e p r e a t i o n - P l n t i n S e r v c e 31 0 0 10 0 , 0 0 0 0 % 36 , 3 8 8 2 % 6.1 6 9 7 % 1.3 5 3 8 % 2.2 5 1 9 % - 21 . 5 7 7 2 % 1.6 9 4 5 % 1. 0 2 7 5 % 29 . 5 3 7 2 % Ac c u m u l a t e d D e p r e a t 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 0 0 - Ac c u m u l e i t e d A m o r t i z a t o n - T a n g i b l P r o p e r t 34 0 0 Ac c u m u l a t e d A m o r t i z a t i o n . I n t a n g i b l e P r o p e r t 35 0 0 - Ac c u m u l a t d A m o r t 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 0 De f e r r d O p e r a i n g T a x e s 43 4 0 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5,8 7 8 3 % 1. 6 1 1 8 % H0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % Ot e r L o n g T e r m L i a b i l t i e s 43 1 0 Ot h e r D e f e r r e d C r e d i t s 43 7 0 Cu s t o m e r D e p o s i t 10 0 . 0 0 0 0 % 38 , 7 6 1 5 % 5,8 7 8 3 % 1. 6 1 1 8 % 2.5 0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % Ne t T e l e p h o n e P l a n t 10 0 . 0 0 0 % 43 . 2 8 7 6 % 5.3 1 1 7 % 2. 1 0 6 % 3.0 0 6 3 % 28 . 3 0 5 1 % 1.0 5 8 5 % 1.8 9 3 2 % 15 . 0 3 1 2 % In v e t m n t A l l o w l D i s a n o w Ac c u m D e p r J A m o r t A l l o l D i s a l l o w Ma t e r i a l s a n d 8 u p p f i e s 12 2 0 10 0 , 0 0 0 0 % 31 . 8 7 8 7 % 4. 0 1 5 1 % 1.5 0 6 2 % 2- 5 2 2 % - 27 . 9 7 6 1 % 1.0 8 2 4 % 1.6 9 2 9 % 28 , 8 9 6 3 % In v e s t m e n t i n N o n a f f l i a t e 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 o n a l A s t s 15 0 0 Ca s h W o r 1 d n g C a p i t l XX X 10 0 . 0 0 0 0 % 45 . 3 2 8 1 % 6. 7 3 6 3 % 1.5 7 5 6 % 2. 5 9 0 1 % . 20 . 6 5 1 8 % 1.6 1 3 5 % 0. 9 4 1 5 % 20 . 5 6 3 0 % Ne t T e l e p h o n e P l a n t , M & S a n d e w e 10 0 . 0 0 0 0 % 43 . 3 4 7 6 % 5.3 5 3 3 % 2,0 9 0 9 % 2. 9 9 4 2 % 28 - 8 1 7 % 1.0 7 4 7 % 1.8 6 5 5 % 15 . 1 9 2 2 % Op e r a t i n g E x p e n s n a n d T a x e s S u m m a I ' Ne t w k 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 , 7 6 1 5 % 5,8 7 8 3 % 1.6 1 1 8 % H0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % Ce n t r a l Of f c e 62 1 0 10 0 . 0 0 0 0 52 . 4 2 4 3 % 9. 5 7 6 9 % 1.8 2 1 5 % 1.6 3 1 4 % 15 . 7 3 8 8 % 2, 2 6 0 5 % 0. 5 9 0 7 % 15 . 9 5 5 9 % In f o n n i o n O i g I e r m 83 1 0 Ca b l a n d W i r e F a c i l i t i e s 64 1 0 10 0 . 0 0 0 0 % 31 . 8 7 8 7 % 4. 0 1 5 1 % 1.5 0 6 % 2. 9 5 2 2 % 27 - 7 6 1 % 1.0 8 2 4 % 1.6 9 2 9 % 28 . 8 9 6 % Ot h e r Pla n t 65 1 0 Ne t w O p e r a t i o n s 65 3 0 10 0 . 0 0 0 0 % 38 , 7 6 1 5 % 5,8 7 8 3 % 1,6 1 1 8 % H0 9 8 % 23 . 8 7 6 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % Ac c s s C h a r g e 65 0 Fe d e r a l S u p p o r t 65 0 10 0 . 0 0 0 0 10 0 . 0 0 0 0 % Ma r k i n g 66 1 0 Cu s t o m e r S e r v c e 66 2 0 10 0 . 0 0 0 0 % 35 . 8 5 3 5 % 7- 6 1 6 % 24 . 8 0 0 3 % 31 . 5 8 4 6 % Co r p o r a e O p e r a i o n s . E x e c u t i v e a n d P l a n n i n g 67 1 0 10 0 . 0 0 0 0 % 44 . 8 0 6 1 % 7.0 2 9 9 % 1.5 5 5 3 % 2. 6 0 3 4 % 20 , 1 9 9 4 % 1.6 9 8 9 % 0. 8 5 8 5 % 21 . 2 4 8 4 % Co r p o r a t e O p e r a t 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 , 6 1 8 8 % 6, 5 4 4 3 % 1.4 4 7 9 % 24 2 3 6 % 18 . 8 0 4 0 % 1.5 8 1 6 % 0,7 9 9 % 19 . 7 8 0 6 % Su b t l O p e r a t i o n s E x p e n s e 10 0 . 0 0 0 0 % 45 . 0 5 2 3 % 6- 1 5 2 % 1- 9 2 7 % H8 1 5 % 20 . 9 3 6 4 % 1.6 0 0 5 % 1- 4 8 8 % 20 . 3 7 2 6 % De p r e i a t i o n a n d A m o r t i z a t i o n 65 6 10 0 , 0 0 0 0 % 42 . 5 9 0 2 % 6. 5 2 7 7 % 1.8 9 0 8 % V0 3 1 % 25 . 5 8 9 7 % 1.2 9 9 % 1,9 6 3 8 % 17 . 4 3 5 2 % Oth e r O p e r a n g 72 4 0 10 0 . 0 0 0 0 % 40 . 3 4 1 5 % 5.7 2 6 6 % 1.5 7 0 2 % 2. 4 4 5 0 % 23 , 2 6 0 6 % 1.4 3 9 0 % 1.2 8 9 5 % 23 , 9 2 7 6 % Eq u a l A c c e s s Fi x e d C h a r g e s 75 0 0 10 0 , 0 0 0 0 % 43 . 2 8 7 6 % 5.3 1 1 7 % 2.1 0 6 4 % 3.0 0 6 3 % 28 . 3 0 5 1 % 1- 5 8 5 % 1.8 9 3 2 % 15 . 0 3 1 2 % Re n t R e v e n u e 52 4 0 To t a l Op e r a t i n g E x p e n s e a n d T a x 10 0 - 0 0 0 % 44 , 9 9 6 7 % 6- 0 2 3 % 1.5 9 2 4 % 2. 5 7 9 9 % 20 . 9 6 3 8 % 1.5 9 8 % 1,0 5 1 6 % 20 . 4 1 4 6 % No n o p e r a i n g E x p e n s e 73 7 0 Ab a n d o n e d C o n s t r u c t i o n Co n t r b u t o n s Ote r N o n o p e r a i n g AU o w a n c e f o r 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 10 0 . 0 0 0 0 % 38 . 7 6 1 5 % 5.8 7 8 3 % 1.6 1 1 8 % 2.5 0 9 8 % 23 - 7 6 % 1.4 7 7 1 % 1.3 2 3 6 % 24 . 5 6 1 2 % Ote r I n c o m e A d j u s t m e n t s XX X Pr o p r i e t a i y I n f o r m t i o n Mo s s A d a m s , L L P 27 of 27