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Home My WebLink About2011Annual Report.pdfI tt'\lP-T ,JygigzL, :Jps1gJ Alm NAME STEVE CHILD MID VALE TELEPHONE EXCH P0 BOX 7 MIDVALE ID 83645-0007 TO THE UTILITIES COMMISSION FOR THE YEAR ENDED 2011 RE CE I V El) 0U tfAPR26 AM 8:28 T OMM1StL1 ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING COMPANY INFORMATION Exact name of utility: MIDVALE TELEPHONE EXCHANGE, INC. Address of principal office: 2205 KEITHLEY CREEK ROAD, P0 BOX 7 MIDVALE, ID 83645 Telephone Number (Area Code_ 208 355-2211 Cities or towns served: MIDVALE, LAKEVIEW, STANLEY, WARREN, WARM LAKE, YELLOW PINE Name and title of officer having custody of the general corporate books of account: STEVE CHILE, CEO Address of office where corporate books are kept and phone number: 2205 KEITHLEY CREEK ROAD, MIDVALE, ID 83645 Organized under the laws of the State of: IDAHO Date of organization: 19-Mar-59 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: SYRINGA NETWORKS, 3795 DEVELOPMENT AVE., BOISE, ID 83705 DATA AND TELECOMMUNICATIONS NETWORK SERVICE PROVIDER OFFICERS Report below the title, name and office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title, and address of the previous officer and the date of change. Title Name Address CEO STEPHEN G CHILD 380 HILL RD,, WEISER, ID 83672 PRES LANE WILLIAMS P0 BOX 7, MIDVALE VICE PRES CONLEY WARD 5208 HOODOO LANE, KUNA ID 83634 SEC/TREAS LINDA KLIND P0 BOX 783, MCCALL ID 83638 DIRECTOR EMMA GROSS 1866 S LINCOLN ST, SALT LAKE CITY UT 84105 Rev 3/02 Page 1 DIRECTORS List the name of each person who was a member of the Board of Directors at any given time during the year: (Fees related to meetings only.) Term Expired or Current Term Name Will Expire and Address LANE WILLIAMS CONLEY WARD EMMA GROSS LINDA KLIND STEVE CHILD Meetings Attended Fees Paid This year During Year Name of Chairman of the Board: Name of Secretary (or Clerk) of Board: Number of Meetings of the Board during the year: MANAGERS List the name of each person who performed management duties for the Company during the year, and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts.) Name Title STEPHEN G CHILD CHIEF EXECUTIVE OFFICER JOHN STUART OPERATIONS MANAGER DENNIS FARRINGTON SW OPERATIONS MANAGER ANN E SHARP CONTROLLER JOE DELATORRE NW OPERATIONS MANAGER FRED BRUCE SWITCH MANAGER ROB VOWELL PLANT RECORDS MANAGER SAM MCCLARY IT MANAGER DIANA HOLMES HR MANAGER GARY COFFELT CONSTRUCTION MANAGER Wages and Bonuses Paid 142,098 90,494 82,256 77,443 53,307 75,120 54,000 68,775 51,057 62,749 Rev 3/02 Page 2 NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices, extensions or additions to the system; disposal of any substantial portion of the property of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingenóy losses or gains. MTE PURCHSED THE STOCK OF RURAL NETWORK SERVICES AND TOOK CONTROL OF THAT ENTITY AS OF 1/1/2011. WITH THE EXCEPTION OF THE GENERAL MANAGER AND ONE OFFICE EMPLOYEE, ALL OF THE RNS EMPLOYEES WERE RETAINED AND BUSSINESS CONTINUED AS PREVIOUSLY OPERATED. IN 2010. MTE RECEIVED AN AWARD OF 4.5 MILLION DOLLARS THROUGH THE ARRA (AMERICA RECOVERY AND REINVESTMENT ACT). CONSTRUCTION ON THESE PROJECTS COMMENCED IN THE FALL OF 2011. THE AWARD WAS 70% GRANT AND 30% LOAN. Rev 3/02 Page 3 BALANCE SHEET Assets and Other Debits Title of Account Current Assets 1120 Cash and Equivalents 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 1181 Accts. Rec. Allow. -Telecommunications 1190 Other Accounts Receivable 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 1280 Prepayments 1290 Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 1402 Investment in Nonaffiliated Companies 1406 Nonregulated Investments 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill Depreciation and Amortization Accounts 3100 Accumulated Depreciated 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 Balance Balance Increase Beginning at End or of Year of Year (Decrease) 262,374 238,204 -24,170 140,613 224,443 83,830 645,639 1,357,873 712,234 356,827 0 -356,827 388,994 413,001 24,007 178,337 85,265 -93,072 0 0 1,386,920 1,748,969 362,049 111,323 100,169 -11,154 107,164 0 -107,164 32,988,784 3,476,389 36,465,173 24,306 145,295 120,989 1,245,219 659,074 -586,145 1,117,154 880,875 -236,279 -15,939,585 -18,177,272 -2,237,687 -769,085 -611,669 157,416 22,244,984 1,284,416 23,529,400 Rev 3102 Page 4 BALANCE SHEET Liabilities & Stockholders' Equity Balance Balance Increase Beginning at End or Title of Account of Year of Year (Decrease) Current Liabilities 4010 Accounts Payable 389950 428273 -38323 4020 Notes Payable 4030 Advance Billings and Payments 68890 83976 -15086 4040 Customer Deposits 397 1010 -613 4050 Current Maturities - Long -Term Debt 1454036 1385414 68622 4060 Current Maturities - Capital leases 25201 25201 0 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 4100 Net Current Defer. Oper. Income Taxes 44291 -58792 14501 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 617768 650034 -32266 4130 Other Current Liabilities 500471 455000 45471 Long-Term Debt 4210 Funded Debt 11776546 12132336 -355790 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 35496 10421 25075 4260 Advances from Affiliated Companies 4270 Other Long-Term Debt Other Liabilities & Deferred Credits 4310 Other Long-Term Liabilities 4320 Unamort. Oper. Invest Tax Credits - Net 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 2326380 2326380 0 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 25000 25000 0 4520 Additional Paid-In Capital 7910 7910 0 4530 Treasury Stock -64000 74000 0 4540 Other Capital 4550 Retained Earnings 5125231 6121237 -996006 TOTAL LIAB. & OTHER CREDITS 22244985 23529400 -1284415 Rev 3/02 Page 5 Analysis of Telecommunications Plant in Service 2111 Land 144,455 10,000 2112 Motor Vehicles 208,239 2113 Aircraft 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 2116 Test Equipment 2116 2121 Buildings 2122 Furniture 2123 Office Equipment 2124 General Purpose Computers 2211 Analog Electronic Switching 2212 Digital Electronic Switching 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 2232 Circuit Equipment 2232 ONT Equipment 2311 Station Apparatus 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 2362 Other Terminal Equipment 2411 Poles 2421 Aerial Cable 2422 Underground Cable 2423 Buried Cable 2424 Submarine Cable 2426 Intrabuilding Network Cable 2431 Aerial Wire 2441 Conduit Systems 2681 Capital Leases 2682 Leasehold Improvements 2690 Intangibles TOTAL PLANT ACCOUNTS 32,988,784 2,408,471 732,539 28,271 0 14,231 74,351 211,528 928 180 ANALYSIS OF TELECOMMUNICATIONS PLANT IN SERVICE TOTAL Company Basis Balance Plant Transfers Balance Beginning Additions Retired and End of Year During year or Sold Adjustments of Year 154,455 208,239 0 -76,764 684,046 76,764 90,995 74,351 0 3,493,125 0 -270,510 7,049,565 534,861 746,389 27,232 -298,625 21,375,717 0 0 -34,454 35,362,801 Rev 3/02 Page 6 87,360 178,498 0 0 0 -72,582 524,790 102,071 108,892 930,704 0 60,141 229,074 0 1,699,788 0 -72,505 187,665 -180 -147,547 0 3,249,403 189,706 27,232 0 0 928 0 0 0 0 7,832,559 0 0 0 0 0 0 0 0 -3,078 15,119,075 ANALYSIS OF TELECOMMUNICATIONS PLANT ACCOUNTS IDAHO Operations Only Balance Plant Transfers Balance Beginning Additions Retired and End of Year During Year or Sold Adjustments of Year Analysis of Telecommunications Plant in Service 2111 Land 77,360 10,000 2112 Motor Vehicles 178,498 2113 Aircraft 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 569,243 28,129 2116 Test Equipment 6,821 2121 Buildings 828,621 102,083 2122 Furniture 2123 Office Equipment 60,141 2124 General Purpose Computers 161,625 2211 Analog Electronic Switching 2212 Digital Electronic Switching 1,646,460 53,328 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 2232 Circuit Equipment 3,286,540 35,368 2232 ONT Equipment 2,041 2311 Station Apparatus 27,232 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 928 2362 Other Terminal Equipment 180 2411 Poles 2421 Aerial Cable 2422 Underground Cable 2423 Buried Cable 7,928,542 51,564 2424 Submarine Cable 2426 Intrabuilding Network Cable 2431 Aerial Wire 2441 Conduit Systems 2681 Capital Leases 2682 Leasehold Improvements 2690 Intangibles TOTAL PLANT ACCOUNTS 14,765,370 356,783 Rev 3/02 Page 7 ANALYSIS OF ENTRIES IN ACCUMULATED DEPRECIATION Account 3100 TOTAL Company Basis Balance Credits Beginning Depreciation During of Year Rate* Year Analysis of Entries in Accumulated Depreciation 2112 Motor Vehicles 219,238 25.00% 0 2113 Aircraft 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 713,230 20.00% 30,379 2116 Test Equipment 20.00% 92,813 2116 Lease Hold Equipment 815 2121 Buildings 462,912 3.00% 32,414 2122 Furniture 2123 Office Equipment 65,713 14.30% 2,689 2124 General Purpose Computers 164,989 20.00% 52,183 2211 Analog Electronic Switching 2212 Digital Electronic Switching 1,082,103 12.00% 314,869 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 2232 Circuit Equipment 4,410,098 10.00% 700,633 2311 Station Apparatus 22,243 10.00% 2,723 2300 ONT Equipment ____ 20.00% 68,321 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipmen 747 23.00% 93 2362 Other Terminal Equipment 2411 Poles 2421 Aerial Cable 2422 Underground Cable 2423 Buried Cable 8.790.202 6.50% 965.953 2424 Submarine Cable 2426 lntrabuilding Network Cable 2431 Aerial Wire 2441 Conduit Systems Retirements Balance and End Adjustments of Year 0 219,238 0 0 0 -70.862 672.747 92,813 04 0 68,402 217,172 0 1,396,972 A 0 -31,281 5,079,450 24,966 68,321 0 0 840 0 0 0 0 -6,539 9,749,616 A 0 0 0 A TOTAL 15,931,475 2,263,885 -108,682 18,086,678 *please list individual depreciation rate for each account. Rev 3/02 Page 8 ANALYSIS OF ENTRIES IN ACCUMULATED DEPRECIATION Account 3100 IDAHO Operations Only Balance Credits Retirements Balance Beginning Depreciation During and End of Year Rate* Year Adjustments of Year 189,499 25.00% 0 0 189,499 567,265 20.00% 26,811 -70,235 523,841 20.00% 21,324 70,235 91,559 439,101 3.00% 23,777 0 462,878 58,127 14.30% 2,014 0 60,141 133,825 20.00% 44,879 0 178,704 754,685 12.00% 160,312 0 914,997 21330,640 10.00% 261,236 -23,810 2,568,066 22,243 10.00% 2,723 0 24,966 747 23.00% 93 0 840 6.50% 242,870 -1,844 5,400,882 5,641,908 786,039 -25,654 9,897,014 10,657,399 Analysis of Entries in Accumulated Depreciation 2112 Motor Vehicles 2113 Aircraft 2114 Special Purpose Vehicles 2115 Garage Work Equipment 2116 Other Work Equipment 2116 Test Equipment 2121 Buildings 2122 Furniture 2123 Office Equipment 2124 General Purpose Computers 2211 Analog Electronic Switching 2212 Digital Electronic Switching 2215 Electro-Mechanical Switching 2220 Operator Systems 2231 Radio Systems 2232 Circuit Equipment 2311 Station Apparatus 2230 ONT Equipment 2321 Customer Premises Wiring 2341 Large Private Branch Exchanges 2351 Public Telephone Terminal Equipment 2362 Other Terminal Equipment 2411 Poles 2421 Aerial Cable 2422 Underground Cable 2423 Buried Cable 2424 Submarine Cable 2426 Intrabuilding Network Cable 2431 Aerial Wire 2441 Conduit Systems I iI.Ii Cl I *please list individual depreciation rate for each account. Rev 3/02 Page 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. Book Cost of Book Cost of Investments Investments Disposed of Held at Description Date Acquired This year End of Year RTFC 13588 19169 NECA SERVICES 3000 SYRINGA NETWORKS 1748969 RNS 329297 0 NET NON REGULATED 510639 DEF REC LIFE INS 107167 0 Totals RECEIVABLES Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Amount at End of Year Name of Company SUBSCRIBERS IDAHO USF NECA CARRIERS USAC MISC NON REG EMPLOYEE LOANS Notes Accounts Receivable Receivable 224,443 29,232 1,219,386 62,651 2,009 44,352 143 Totals 1,582,216 Rev 3/02 Page 10 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Interest Name of Creditor Date of Note Rate Due Date Face Amount WELLS FARGO 8/1/2011 PRIME+2.25 7/31/2012 455,000 Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100.00 Name of Creditor Amount See attached list 559,248 Totals Rev 3102 Page 11 MTE COMMUNICATIONS ACCOUNTS PAYABLE > $100 VENDOR DECEMbER 51, LUll AMOUNT SRP 498.29 ALECA 2500.00 Jeanne Alexander 209.79 Aviat Networks 2352.64 Avista Utilities 495.23 AZ Dept of Revenue 2043.24 AZ Public Service Co 591.66 Bankcard Center-Zions 40655.13 Nate Basey 600.00 Bennett Oil 1538.55 Bo's Barn 121.71 Fred Bruce 100.00 Buckaroo's Potties & Septic 135.00 Calix Networks, Inc. 1228.50 Cambridge Litho 1033.50 John Whitener 348.39 Cascabel Community Center 300.00 Centurylink 584.78 City of Weiser 206.74 Clear Creek Disposal 127.88 Computer Technology, Inc. 5022.35 Commercial Tire, Inc. 2780.97 Cultural & Environment 1008.25 Ditch Witch of AZ 2295.30 EC Power Systems of Idaho 198.78 Electrical District No 4 134.13 ESPN 3 112.71 Farmer Brothers Company 214.33 Farmer's Supply Cooperative 4463.82 Gentry Auto Group 762.98 Kathryn E Gilbert 708.00 Brian Graham 550.00 Graybar Electric Co, Inc. 566.56 Diane Higgins 550.00 Diana Holmes 500.00 Gary H Horton 1726.11 Bridget Hostetler 2240.64 Idaho Optic Transport Assn 34908.17 Idaho Power 1833.25 Idaho State Tax Commission 6035.00 Intermountain Gas Company 268.79 Jerrys Auto Parts 237.15 Jerry's Country Store 377.55 Jupiter Communications LL 2147.93 Kennedy Fuel & Feed Supply 208.79 KGP Logistics 373.24 MTE COMMUNICATIONS ACCOUNTS PAYABLE > $100 Lube Express L)LMbK 31, 1011 111.10 Geraldine Maloney 165.00 Mapcom LLC 337.50 Sam McClary 5611.01 Cynthia A Melillo PLLC 1994.65 Jeff Mills 100.00 Millennium Technology Part 94470.25 Monte R. Lee & Company 25845.26 Stacy Morris 500.00 Moss Adams LLP 9054.75 MW Networks 211.33 National Cable TV Coop 524.02 NECA 500.52 Neustar, Inc. 620.86 Norco 601.04 Birtg /ciybtrt /creatuibs 270.00 IPUC/OUSF 639.33 Payette Printing Company 200.03 CRA Payment Center 171.34 Pleasant Valley Propane 488.65 Power and Telephone Supply 1341.44 Centurylink 4506.92 Centurylink 1552.43 Quill Corporation 116.53 Centurylink 115.21 Centurylink 1241.49 Shannons Auto Parts 138.03 Shirts N Stuff Embroidery 1177.59 Sulphur Springs Valley 1188.55 Sunstate Equipment Co 107.00 Syringa Networks, LLC 77406.94 Vernon or Joyce Talley 850.00 Cheryl Terry 1568.21 Con Thrall 2400.00 Toshiba Financial Service 225.61 Tom Williams Machine, Inc. 3954.36 Transaction Network Service 1098.63 Universal Service Administration 4281.93 UNS Gas, Inc. 177.45 USDA-RUS 165955.82 Verizon Wireless 2630.55 Visa 1132.57 Weiser Auto Parts 183.12 Weiser Signal American 809.60 Western Telecommunication 3623.00 Ken Weyers 1535.00 Whitman Truss & Lumber 259.06 MTE COMMUNICATIONS ACCOUNTS PAYABLE > $100 'Lane R. Williams ULMEK LUll 133.001 I Zions Bank 998.83 I ANPI/ZONE 10226.751 Total 559248.091 LONG - TERM DEBT Accounts 4210, 4240, 4250, 4260,4270 and 4310 List the required data for each obligation included in these accounts, grouping them by account number and showing totals for each account. If any obligations mature serially or otherwise at various dates, give particulars in a note. Date Date Fact Premium! Discount Class & Series of of Amount Outstanding Year Interest for year of Obligation Issue Maturity Authorized Year-End Total Amortized Rate Amount RTFC SWITCH LOAN 7/17/2009 7/17/2013 57,974 5.35 7,464 RTFCACQUITISION 7/17/2009 7/17/2011 0 5.35 INCLABV RUS 8/17/1980 8/17/2005 162,807 2.00 658,468 RUS 12/19/1985 12/19/2020 73,506 5.00 INCL ABV RUS 6/1/1992 6/1/2016 74,289 5.00 INCLABV RUS 9/29/1994 9/29/2014 588,888 5.00 INCLABV RUS 2/1/2002 2/1/2016 2,375,259 5.00 INCL ABV RUS 4/30/2009 4/30/2021 10,131,399 5.00 INCLABV STIMULUS AWARD LOAN 9/15/2011 2036 19,976 COST OF $$ 46 ZIONS BANK 3/7/2007 3/7/2012 1,021 VAR 363 DEFERRD FED TAX 2,126,245 DEFERRED ID TAX 208,681 Rev 3/02 Page 12 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 nuni ber of shares, consideration received, premium or discount, and expenses incurred. Number Outstanding per of Shares Par Value Balance Sheet Class & Series of Stock Authorized per Share Shares Amount Common Stock 252 100 250 25000 Note- In 2011, 35 shares of Stock was purchased from Lane Williams by Midvale Telephone Exchange. Employee Stock Ownership Plan Truset at $22,857.14 per share. Rev 3/02 Page 13 INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 16) -12,985,652 -4,268,473 Total Operating Expenses (from page 18) 11,728,878 2,520,762 7100 Other Operating Income and Expense 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 7230 Operating State and Local Income Taxes 7240 Operating Other Taxes 7250 Provision for Deferred Operating Income Taxes-Net 7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Property 7360 Other Nonoperating Income 7370 Special Charges 7300 Nonoperating Income and Expense 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net 7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions 7500 Interest and Related Items 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net 7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 3/02 Page 14 464,626 203,766 -59,637 10,167 110 217,757 28,631 -195 -195 -37,477 -37,477 -271,936 -271,936 688,142 13,232 -20,578 -39,424 954,047 1,162,862 OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Other Local Exchange Revenue 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue -All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES 791,252 371,208 167,784 78,761 10,199,924 2,998,253 455,206 170,436 714,793 465,384 170,960 64,150 7,240 2,072 223,003 220,193 255,490 258,016 12,985,652 4,628,473 Please identify the following revenues: NECA USF $_______ 2,860,234 5082.81-5082.83 State USF $______ 350,785 5084.11 Rev 3/02 Page 15 OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information Origination/Termination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6427 Syringa Sonnett 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE 103,832 51,553 28,049 27,118 121,976 66,574 1,254,572 643,556 5,006,504 792,716 1,091,202 542,705 396,540 396,540 8,002,675 2,520,762 Rev 3/02 Page 16 550 550 4,687 3,528 254,102 119,240 263,352 125,621 282,027 136,366 OPERATING REVENUES Item Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 33,815 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 74,093 32,204 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 24,788 4,512 6540 Access Expense 52,502 28,428 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 2,152,402 792,321 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses 2,337,600 857,465 Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense 4,013 2,303 454,852 226,403 26,461 13,491 361,911 176,947 1,125,251 55,207 Plant Specific Expenses 8,002,675 2,520,762 Total Operating Expenses 11,728,878 3,503,758 Residence Multi- Single Line Line Multi- Subtotal 1-Party 1-Party Party Residence Beginning of Year 712 712 New Connects 59 59 Disconnects -92 -92 End of Year 679 679 Business Multi- Single Line Centrex Line Multi- Subtotal N.A.R. 1-Party 1-Party Party Business 77 91 168 16 16 -1 -1 77 106 183 Total Residence & Business 880 75 -93 862 CENTRAL OFFICE DATA as of December 31, 2011 (unless otherwise indicated) Name of Central Office:_ MIDVALE, LAKEVIEW, STANLEY, WARM LAKE, WARREN, YELLOW PINE Prefix (es):______ 355, 222, 774, 632, 633, 636 Central Office Switch Type:_ MIDVALE - TAQUA-T7000, LAKEVIEW-TAQUA- T7000 WARM LAKE TAQUA-1 -7000. WARREN AND YELLOW PINE -REDCOM MDX Check all that apply: Check one: Check one: Stand Alone_ X Digital_X Electronic_ X Host Analog_ Electro-Mechanical_ Remote Other:_________________________ Access Line Capacity Access Lines in Use DESIGN-222, 355,632,774- 10,000 Customer Lines: 633, 636-1,000 (Include Centrex, PAL, Semi-Pub.) Installed/Equipped:SAME Public Telephone Lines Company Official Lines Company Test Lines Classification of Customer Access Foreign Exchange: Directory Listings: Dial Tone from this C.O.: Number of Customers with Nonpublished or Nonlisted: 54 Dial Tone from another C.O.:_______ Custom Calling: Number of customers with at least one feature: Total number of features subscribed to: Rev 3/02 Page 18 NUMBER OF CALLS COMPLETED BY CUSTOMERS DURING (Year)_201 I_____ Average # Local Calls Toll Calls Originated (Total of all Carriers) of Customer Number Avg./ Avg./ Local Exchange Lines in Use (bOOs) Line Intrastate Interstate Total Line I 212-ARIZONA 101 NA 20158 5964 26122 259 2 222-IDAHO 31 NA 1280 997 2227 72 3 253-IDAHO NA 20 76 96 16 4-256-IDAHO NA 161 433 594 119 5-257-IDAHO NA 80 187 264 132 6_262 - OREGON NA 6 98 104 35 7-277-OREGON NA 4873 1648 6521 296 8-278-IDAHO NA 69 182 251 84 9_283 WASHINGTON NA 2 32 34 34 10-336-IDAHO NA 30 130 160 160 11-339-OREGON NA 929 2203 3132 1044 12-345-IDAHO NA 1 1 2 2 13-355-IDAHO NA 18529 21939 40468 165 14-358-OREGON NA 15005 15680 30685 451 15-364-ARIZONA I NA 11 78 89 89 16-365-IDAHO NA 0 10 10 10 17-368-OREGON NA 2708 1407 4115 823 18-372-OREGON NA 104 263 367 367 19 378- ARIZONA I NA 5 2 7 7 20 384-IDAHO I NA 0 159 159 159 22446-OREGON 17 NA 1137 1668 2805 165 23 452-IDAHO 5 NA 27 257 284 57 24 462-ARIZONA 208 NA 27753 4610 32364 156 22466-IDAHO I NA 2 5 7 7 23467-OREGON 34 NA 1890 860 2750 81 24473-OREGON 2 NA 29 25 54 27 25495 - IDAHO I NA 67 67 67 26 522-IDAHO I NA 1 2 3 3 27556-WASHINGTON 72 NA 18172 4319 22481 312 28583-IDAHO 2 NA 1072 591 1663 832 29 584-IDAHO 2 NA 9 9 5 30 586-ARIZONA 12 NA 832 438 1270 106 31 586-OREGON 4 NA 389 1130 1519 380 32 622-IDAHO I NA 3 3 6 6 33632-IDAHO 41 NA 5752 73 5825 142 34633-IDAHO 69 NA 12975 4493 17468 253 35 634-Idaho I NA 33 0 33 33 36 636-IDAHO 73 NA 7480 2017 9494 130 37642-IDAHO II NA 569 735 1304 119 38 683-ARIZONA 128 NA 1392 7929 7321 57 39 720-ARIZONA 2 NA 460 36 496 248 40 724-OREGON 6 NA 762 612 1374 229 41 734-IDAHO I NA 4 3 7 7 42737-IDAHO I NA 12 102 114 114 43 755-OREGON I NA 201 26 227 227 44 774-IDAHO 282 NA 39575 12326 51901 184 45820-OREGON 33 NA 3177 1172 4349 132 46 824-ARIZONA 2 NA 1206 123 1329 665 47 881-OREGON I NA 138 209 347 347 48889-OREGON 7 NA 232 1947 2179 311 49 893-OREGON 8 NA 1322 733 2055 257 50 898-ARIZONA 36 NA 2403 998 3401 94 51 922-IDAHO I NA 0 3 3 3 52 932-OREGON 54 NA 7626 2230 9856 183 53 987-OREGON 12 NA 1470 755 2225 185 54-999-ARIZONA 114 NA 4639 2794 7433 65 Rev 3/02 Page 19 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 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 2/1/2011 Alternate method of notification Rule IDAPA 31.41.01.403.02 Record of Complaints: Number received by Company I Category of complaints (if known): Deposit Disputes Charges on Bill Denial/Termination Quality or Availability of Service Carrier Selection/Assignment x Miscellaneous Rev 3/02 Page 20 CERTIFICATE State of Idaho ) ) ss County of ge Z4 ,) WE, the undersigned STEPHEN G CHILD and ANN E. BRAUN of the TELEPHONE EXCHANGE, INC. 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. 4effficar (Officer in Charge of Accounts) Subscribed and Sworn to Before Me this .24 day of (Year) Notary Public GLENNIS K. BONNER Notary Public State of Idaho My Commission expires , (Year) Rev 3/02 gdk/excei/jneison/anuirpts/teiannuairpt Page 21 O FORM I INPUT MASTER MPANY NAME Midvale Telephone Company Inc For The Year Ended December 31, 2010 Separated Results of Idaho Operations Total Idaho Interstate Operation IntrastateOperation Operations MTS & WATS TOLL PLS MTS & WATS TOLL PLS FCC Account and Note Line Subject To Switched Special Switched Special Local Description No. No. Separations Access Access Total Access Access EAS (other) Total MARY orating Revenues X Local -Billed (1) 1. 358,896 358,896 358,896 -EAS Billed (1) 2. - - - -EAS Settlement (1) 3. - - - ;X Access-SLC (End User) (2) 4. 456,248 107,869 107,869 348,379 348,379 -Switched (TS+NTS) (2) 5. 2,716,789 2,132,348 2,132,348 82,942 501,499 584,441 -Special (2) 6. 181,428 156,336 156,336 25,092 25,092 X Toll -Message (3a) 7. - - - -Private Line (3b) 8. - - - -Settlement (3c) 9 - - - X Misc. -Billing & Collection (4) 10. - - - -Directory Advertising 11. 2,352 2,352 2,352 -Operating Rents 12. - - - -Other Misc. 13. 27.356 - ____________ ___________ _____________ 27,356 27,356 IX Less: Uncollectible Rev. (-) 14. 302 - 302 302 al Revenues 15. 3,743,371 2,240,217 156,336 2,396,553 82,942 25,092 - 1,238,784 1,346,818 rating Expenses X-64XX Plant Specific Oper. 16. 1,721,564 756,425 234,116 990,541 321,566 47,371 14,664 347,422 731,023 X Plant Nonspecific Operations 17. 108,853 53,301 1 9,459 62,760 20,809 1,644 1,103 22,537 46,093 IX Depreciation &Amortization f 18. 678,289 314,132 72,272 386,404 143,094 9,147 8,750 130,894 291,885 X Customer Operations 19. 1 158,577 56,046 - 56,046 49,781 - - 52,750 102,531 X Corporate Operations 20. 575,314 261,628 69,105 330,733 108,928 14,015 4,268 117,370 244,581 Other Operating (5a) 21. - - - - - - - - - Total Expenses (5a) 22. 3,242,597 1,441,532 384,952 1,826,484 644,178 72,177 28,785 670,973 1,416,113 rating Taxes: (6) .0 General Taxes 23. 28,878 11,367 2,982 14,349 6,559 518 348 7,104 14,529 0 State/Local Inc. Tax (Current) 24. 19 9 2 11 4 - 4 8 :0 Federal Income Tax (Current) 1 25. 1 293,986 130,219 35,022 165,241 58,923 6,453 2,673 60,696 128,745 0 Net Deferred Income Taxes 26. - - - - - - - - - 0 Net Investment Tax Credits 27. - - - Total Taxes 28. 322,883 141,595 38,006 179,601 65,486 6,971 3,021 67,804 143,282 Net Operating Income 29. 177,891 657,090 (266,622) 390,468 (626,722) (54,056) (31,806) 500,007 (212,577) MMARY (continued) ,rage Rate Base 1 Telecom. Plant in Service 1. 15,646,875 5,764,218 1,682,811 7,447,029 3,701,952 292,401 196,180 4,009,313 8,199,846 5 Plant Acquisition Adjustment 2. - - 0 Less: Accumulated Depr. (-) (ç) 3. (9,662,373) (3,333,943) (850,472' (4,184,415) (2,199,635) (215,531' (104,172) (2,958,620) (5,477,958) x-36xx Accumulated Amort. (-) (5) 4. - - 0-4340 Accum. Deferred Tax(-) 5. (535,066) (197,115) (57,546) (254,661) (126,593) (9,999) (6,709) (137,104) (280,405) :0 Materials and Supplies 6. 94,622 28,603 7,670 36,273 26,778 990 1,541 29,042 58,349 Equal Access Equipment (7) 7. - - - Other Rate Base 8. 860,039 330,599 95,337 425,936 195,894 17,092 9,934 211,183 434,103 Total Average Rate Base 9. 6,404,097 2,592,362 877,800 3,470,1621 1,598,3941 84,953 96,774 11153,814 2,933,935 Page 1 of 6 NT IN SERVICE DETAIL X General Support Facilities 1 1,879,960 692,566 202,188 894,754 444,787 35,132 23,571 481,716 985,208 X Central Office Equipment: _ ______________ _______________ _____________ CAT 1-Operator Systems 2 - - - CAT 2-Tandem Switching (Alloc.) 3. - - - CAT 2-Tandem Switching (Assign.) 4 - - - CAT 3-Local Switching 5. 1,728,389 1,469,131 1,469,131 259,258 259,258 CAT 4.1 2 -Exch. Trunk (Joint Use) 6. 27,040 - 27,040 27,040 CAT 4.12 -Exch. Trunk (Ded. Use) 7. 860,713 725,011 725,011 135,702 135,702 CAT 4.13 -Subscr. Line (Joint Use) 8. 1,060,359 262,114 7,574 269,688 262,114 4,328 524,229 790,671 CAT 4.13 -Subscr. Line (Ded. Use) 9. - - - CAT 4.23 -IX Trunk (Joint Use) 10. 1,102,893 637,825 637,825 465,068 465,068 CAT 4.23 -IX Trunk Ckt. (Ded. Use) 11. 25,065 11,697 11,697 13,368 13,368 CAT 4.3 -Host/Remote Trunk Ckt. 12. - - - Other COE 13. 21,897 11,592 11,592 10,305 - 10,305 Total COE 14. 4,826,356 2,369,070 755,874 3,124,944 727,182 163,703 27,040 783,487 1,701,412 X information Orig./Term. Equipment: CAT 1-Regulated CPE 15. - - - Other lOT 16. - - - Total lOT 17 - - - - - - - - - X Cable & Wire Facilities: CAT 1.3-Subscriber Line (Common) 18. 5,488,220 1,372,055 - 1,372,055 1,372,055 - 2,744,110 4,116,165 CAT 1.1,2-Subscriber Line (Ded.) 19. 62,302 39,647 39,647 22,655 22,655 CAT 2-Exch. Trunk (Joint Use) 20. 145,569 - 145,569 145,569 CAT 2-Exch. Trunk (Dad. Use) 21. 96,771 51,424 51,424 45,347 45,347 CAT 3-IX Trunk (Joint Use) 22. 3,110,420 1,330,527 616,740 1947,267 1,157,928 5,225 1,163,153 CAT3-iX Trunk (Ded. Use) 23. 37,277 16,938 16,938 20,339 20,339 CAT 4-Host/Remote Trunk 24. - - - Other C&VVF 25. - - - Total C&WF 26. 8,940,559 2,702,582 724,749 3,427,331 2,529,983 93,566 145,569 2,744,110 5,513,228 X Other Assets: Capital Leases 27. - - - Leasehold improvements 28. - - - Intangibles 29. - - - - Total Other Assets 30 - - - - - - - - - Total Telecom. Plant in Service (5b) 317F 15,646,875 r 5,764,218 1,682,811 1 7,447,0291 3,701,952 292,401 196,180 4,009,313 8,199,846 Page 2 of 6 predation & Amortization umuIated Depreciation Detail X General Support Facilities 1. (1,358,361) (500,409) (146,090) (646,499) (321,377) (25,384) (17,031) (348,060) (711852) X Central Office Switching 2. (680379) (578,322) (578,322) (102,057) (102,057) ( Operator Systems 3 - - - X Central Office Transmission 4 (2,277,090) (880,345) (333,046) (1,213,391) (543,693) (120,063) (19,816) (380,127) (1,063,699) X Information Orig.ITerm. Equip. 5. - - - .X Cable & Wire Facilities 6. (5,346,553) (1,374,867) (371,336) (1,746,203) (1,334,565) (70,084) (2,128,376) (3,600,350) Total Accumulated Depreciation (Sc) 7. (9,662,373) (3,333,943) (850,472) (4,184,415) (2,199,635) (215,531) (2,968,620) (5,477,958) M(10:4 umuiated Amortization Detail 0 Capital Leases 8. - - - 0 Leasehold Improvements 9. - - - 0 Intangibles 10. - - - 0 Acquisition Adjustment 11. - - - Total Accumulated Amortization (5c) 12. OPERATING EXPENSE DETAIL X-64XX Plant Specific Operations 0-20 General Support Facilities 1. 122,499 45,128 13,175 58,303 28,982 2,289 1,536 31,389 64,196 X Central Office Switching 2. 608,643 298,759 95,322 394,081 91,704 20,644 3,410 98,804 214,562 0 Operator Systems 3. - - - X Central OfficeTransmission 4 600,022 294,527 93,972 388499 90,405 20,352 3,362 97,404 211,523 X Information Orig./Term. Equip. 5. - - - X Cable & Wire Facilities 6. 390,400 118,011 31,847 149,658 110,475 4,086 6,356 119,825 240,742 Total Plant Specific (5a) 7. 1,721,564 756,425 234,116 990,541 321,566 47,371 14,684 347,422 731,023 X Plant Nonspecific Operations (8) __ _____________ ______________ ____________ 2 Provisioning 8. - - - X Network Operations 9. 87,954 32,402 9,459 41,861 20,809 1,644 1,103 22,537 46,093 .0 Access Paid to LECs (9) 10. 20,899 20,899 20,899, - Total Plant Nonspecific (5a) 11. 108,853 53,301 9,459 82,780 20,809 1,644 1,103 22,537 46,093 ;X Depreciation & Amortization (8) it General Support Facilities 12. 92,961 34,246 9,998 44,244 21,994 1,737 1,166 23,820 48,717 it Central Office Switching 13. 164,874 140,143 140,143 24,731 24,731 Operator Systems 14. - - - 1 Central Office Transmission 15. 147,530 50,777 32,013 82,790 39,539 5,769 858 18,574 64,740 1 Information Orig./Term. Equip. 16. - - - 11 Cable & Wire Facilities 17. 272,924 88,966 30,261 119,227 81,561 1,641 6,726 63,769 153,697 3 Capital Leases 18. - - - .3 Leasehold Improvements 19. - - - 4 Intangibles 20. - - - .5 Acquisition Adjustment 21. Totai Depreciation &Amortization (Sa) 22. 678,2891 314,132 1 72,272 1 386,4041 143,094 9,147 8,750 130,894 291,885 Page 3 of 6 OPERATING _EXPENSE _(continued) DC Customer Operations X Marketing 1. 3,191 3,191 3,191 :X Operator Services 2. 550 - 550 550 X Directory Publishing-Alpha. 3. 5,881 1,853 1,853 1,347 2,861 4,008 X Directory Publishing-Classified 4 - - - X Directory Publishing-Foreign 5. - - - 3 Service Order Proc-End User 6. 33,066 14,962 14,962 5,704 12,400 18,104 3 Payment& Collection-End User 7. 24,798 7,722 7,722 8,449 8,627 17,076 3 Billing Inquiry-End User 8. 24,800 6,200 6,200 8,680 ___________ _____________ 9,920 18,600 3 Service Order Proc.-CXR 9 - - - 3 Payment & Collection-CXR 10. - - - 3 Billing Inquiry-CXR 3 Coin Administration 12. - - - 3 Rev. Acctg.-Toll Ticket Proc. 13 - - - 3 Rev. Acctg.-Local Mess. Proc. 14. 3,154 896 896 2,258 2,258 3 Rev. Acctg.-Other Bill &Coll. 15. 45,460 13,558 13,558 15,951 15,951 31,902 3 Rev. Acctg.-SLC Billing 16. 2,393 2,393 2,393 - 3 Rev. Acctg.-CXR B & C (9) 17. 13,684 6,842 6,842 6,842 6,842 3 B & C Amts Paid to LEC5 (9) 18. - - - 3 Other Customer Service 19. 1,620 1,620 1,620 - Total Customer Operations (5a) 20. 158,577 56,046 - 56,046 49,781 - - 52,750 102,531 DC Corporate Operations: X Executive & Planning 21. 155,891 67,552 19,461 87,013 30,676 3,947 1,202 33,053 68,878 X General & Administrative 22. 419,423 194,076 49,644 243,720 78,262 10,068 3,086 84,317 175,703 8 EAS Settlement Expense 23. - - - Total Corporate Operations 575,314 261,628 69,105 330,733 108,928 14,015 4,268 117,370 244,581 Other Operating Expenses: __ ______________ _______________ _____________ Equal Access Provision (10) 25 - - - Universal Service Fund (11) 26. - - - Lifeline Connection Assistance (12) 27. - - - Total Other (5a) Total Operating Expenses (5a) 1 29. 3,242,6971 1,441,532 1 384,952 1 1,826,4841 644,178 72,177 28,785 670,973 1,416,113 'ERATING TAXES DETAIL .0 General Taxes .0 Property 1. 27,724 10,213 2,982 13,195 6,559 518 348 7,104 14,529 .0 Gross Receipts 2 - - - .0 PUC Fee 3 - - - .0 Franchise Fees 4. - - - .0 Other 5. 1,154 1,154 1,154 - Total General Taxes 6. 28,878 11,367 2,982 14,349 6,559 518 348 7,104 14,529 X Income Taxes (Calculated) Net Income Before SIT & FIT jj 7. 471,896 787,318 (231,598) 555,720 (567,795) (47,603) (29,133) 560,707 (83,824) Less Fixed Charges (-) 8. 97,567 39,391 13,420 52,811 24,511 1,261 1,496 17,488 44,756 Subtotal (lines 7.8) (14) 9. 374,329 747,927 (245,018) 502,909 (592,306) (48,864) (30,629) 543,219 (128,580) Other SIT Base AddlDed. (+-) (15) 10. - - - SIT Taxable Inc. (lines 9+4) 11. 374,329 147,927 (245,018) 502,909 (592,306) (48,864) 543,219 (128,580) 7230 SIT-Current (at 8%) (1) 12. 32,397 59,834 (19,601) 40,233 (47,384) (3,909) 43,458 (7,836 Other FIT Base Add/Ded. (+-) (17) 13. - - - FIT Taxable Inc. (lines 9.12+-13) 14. 341,932 688,093 (225,417) 462,676 (544,922) (44,955) 499,761 (90,115) Gross FIT 15. 126,871 233,952 (76,642) 157,310 (185,273) (15,285) - 169,919 (30,639) 7210P Claimed ITC (-) 16. - - - Surtax Elimination (-) 17. - I I - I I I I I - 7220 FIT-Current (lines 15-16-17) (18) 18. 126,671 233,952 (76,642) 157,310 (185,273) (15,285) - 169,919 (30,639) Page 5 of 6 o FORM I INPUT MASTER' For The Year Ended: December 31,2010 MPANY NAME: Midvale Telephone Company, Inc. Separated Results of Idaho Operations Total Idaho Intrastate Operation Operations Description Note Line Subject To Interstate Intrastate No. No. Separations Toll Toll EAS Local (Other) paration Parameters (19) nt LU Minutes of Use (MOU) 1. LU Factor 2. 1.000000 0.30629 0.23967 0.45404 lose SPF -January 1 3. 1.000000 0.25 0.25 0.5 lase SPF -December 31 4. 1.000000 0.25 0.25 0.5 urrent Composite SPF (20) 5. 1.000000 0.26 0.26 0.6 996 Weighted OEM 6. 1.00000 0.85 0.15 996 Unweighted OEM 7. 0.319662 0.319552 0 0 0 uffent CAT 3 Dial Equipment Minutes (21) 8. urrent Composite OEM Factor 9. 1.00000 0.85 0.15 Exchange Trunk - Joint Use MOU (22) 10. lost/Remote MOU Kilometers (23) 11. Equal Access MOU (24) 12. )perator Standard Work Seconds (25) 13. andem Switching MOU (26) 14. )( Conversation MOU 15. K Conversation Minute Kilometers 16. er Parameters ccess Lines 17. 957 inseparated Loop Cost @ 11.1 ROR (27) 18. 1,555,298 ss Billed Revenues -Marketing Allocation Basis (28a) 19. 0 -Payment & Collection-End User (28b) 20. 0 -Payment & Collection-CXR (28c) 21. 380,562 194,523 186,039 vice Order Contacts -Service Order Proc-End User (29a) 22. 6,134 6,134 -Service Order Proc.-CXR (29b) 23. 15 8 7 ing Inquiry Contacts -Billing Inquiry-End User (30a) 24. 12 12 -Billing Inquiry-CXR (30b) 25. 48 13 35 P+RC Toll Messages (31) 26. 367,609 104,412 263,197 AS/Local Messages (Msg. Proc.) 27. 0 IG 3' Expense Factor-Message (32) 28. 0.91 0.4636141 0.228028 0.0085851 0.212484 -PLS & Special Access 29. 0.09 0.070299 0.016989 )perator Services Expense - Factor 30. 0 ccess Minutes of Use (End Office) - 31. 10,554,195 6,496,070 4,058,125 Page 6 of 6 A MTE 2205 KeithleyC-reek Road P.O. Midvale1D83645 COMMUNICATIONS 208.355.2211 Fax 208.355.2222 Annual Notices 2011 General MTE Communications (MTE) is a regulated local exchange carrier that provides telecommunication services in Idaho and Arizona. You may reach us at the telephone numbers listed above or at: Www.mtecom.net info@mtecom.net MTE "Do Not Call" Policy MTE does not call customers for sales or marketing purposes and thus does not maintain an internal "Do Not Call" listing. If we have new or additional services available, we will send you that information in the form of a bill stuffer and/or post the information on our website, www.mtecom.net . If you receive a call from someone claiming to be from MTE and they are asking you to buy or subscribe to something, you should be immediately suspicious. We may still contact you, however, for non-solicitatioñpurposes. This would include things like surveys, billing and other service-related matters. For over a century, customers have counted on MTE to respect and protect the privacy of information we obtain in the normal course of providing service. 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 Service MTE provides dial-tone services to the customer premises, usually marked by a network interface device. Customers are responsible for all inside wiring 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 ofjeopardizing the integrity of the overall network, MTE will act to protect the network. All service orders and trouble reports will be responded to promptly, in the order they are received, and in accord with all state applicable rules and regulations. MTE cannot be responsible for any loss of business due to a service outage and cannot guarantee service at any specific time. Please see our tariff on file with your state utility commission for full disclosures and limitations. Arizona Corporation Commission 1200 W Washington Phoenix AZ 85007 www.cc.state.az.us Idaho Public Utility Commission 472 W Washington 83702 P0 Box 83720 Boise ID 83720-0074 www.puc.state.id.us State Discount Programs Each state, in which MTE offers service, has a telephone assistance program that is often paired with the Federal Lifeline program. Please contact your customer service representative at MTE, or visit your state's website to see if you qualify. Idaho http://www.nuc.state.id.us/consumer/itsap.pdf Arizona Website not available. Contact MTE for more information. Privacy Notice With the exception of directory information, MTE does not sell or release any personal information about our customers to anyone. We hold all customer information in strictest confidence. Credit Policy Although rules vary by state, in most cases, new customers can establish credit simply by providing a copy of their last phone bill showing it was current. In lieu of that, customers may establish credit by paying a $50 deposit, which is then credited back to your account six months later, provided your account is in good standing. (Continued on back) www.mtecom.net Employee Owned, Community Focused, Customer Centered Delinquent Payment Policy All bills are due and payable by the 20th of the month they were issued. We do our best to notify customers (both by mail and by phone) when their service is in jeopardy; regardless, it is the customer's responsibility to ensure payment in full and on time. Please feel free to contact your customer service representative for help with managing your account. National Do Not Call List Registration of your telephone number on the National Do Not Call Registry is free-of-charge. Telephone numbers placed on the registry will remain on it permanently due to the Do-Not-Call Improvement Act of 2007, which became law in February 2008. You may remove your number from the list at any time. The Do Not Call Registry does not prevent all unwanted calls, such as the following: • Calls from organizations with which you have established a business relationship: • Calls for which you have given prior written permission: • Calls which are not commercial or do not include unsolicited advertisements; or • Calls by political organizations, charities or telephone surveyors Subscribers may register their residential telephone number, including wireless numbers, on the national Do Not Call registry by calling (888) 382-1222 (TTY call (866)290-4236) or on the website: www.donotcall.gov Subscribers must call from the number they wish to register. Telemarketers and sellers are required to search the registry at least once every month and drop from their call-list the phone numbers of subscribers who have registered. How to File a Complaint: A complaint can be filed by completing the form provided on the website (www.donotcall.gov ) or by calling (888) 225-5322 (TTY call (888) 835-5322). Your complaint should include: • Name, address, and phone number where you can be reached during the business day; • Phone number involved with the complaint; and • As much specific information as possible, including the telemarketer or company contacting you, the date on which you placed your number on the Do-Not-Call registry or made a company-specific do-not-call request, and the dates of any subsequent telemarketing calls from that telemarketer or company. Please do not hesitate to call if there is anything we can do or with questions you need answered.