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HomeMy WebLinkAbout2008Annual Report.pdf.. R "Ii!'Q~ìlv I" i'ilJU.. nll IJ til'"'1 8: 17 ANNUAL REPOWTxti¡!)Z OF RuR--t RURAL TELEPHONE COMPAN NAME 892 W. MADISON AVE. GLENNS FERRY, ID 83623 ADDRESS TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEARENQED DECEMBER 31, 2008 .. '"ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING 2008 COMPANY INFORMATION Exact name of utilty: Rural Telephone Company Address of principal offce: 892 W. Madison Ave. Glenns Ferry, ID 83623 Telephone Number Area Code (208 )366--2614 E-mail address: beverly . arríngton(grttra1tél.org Cities or towns served: Shoup:;Boise Riyer. Típanuk.Three Creek, At) ant a . Pra; rj e Name and title of offcer having custody of the general corporate books of account: James R. Martell,. President Address of office where corporate books are kept and phone number: same. as above Organized under the laws of the State of: Idaho Date of organization: 07/27/1979 Form of organization (proprietorship, association, corporation): Corppiiatdon' If a Subchapter S Corporation, please specify: S Corp Name and address of controllng company, if any: Martell Enterprises, Inc. 892 W.Madíson Ave. Glenns Ferry, ID 83623 Names of affliated companies. Give address and description of business: Pend. Oreille Telephone Company same as above Nehalem Telecommunícations Inc.same as above 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 offcer and the date of change. Title Name Address President .James R. Martell same as ab'oJTe saRle as all eve same as abbve Vj ce-Pres; dent M; cbaQl J Ma~tQll Carmela M. MartellSee. /TFeaSl:FeF Rev 3l02 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 James R. Martell Carmela M. Martell Michael J. Martell Angel a Carpenter Andrea Roberts MarkR Martell Matthew Martell Term Expired or Current Term Wil Expire Meetings Attended This year Fees Paid During Year non--term. non-term non-term 12 12 12 12 12 12 12 i 8"¡000 12,000 16,800 12,000 18,000 12,000 12,000 n.On.-tQ~1I non-term non.-terii non-term Name of Chairman of the Board: Name of Secretary (or Clerk) of Board: Number of Meetings ofthe Board during the year: James R. Martell Carmela M. Martell 12 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 James R. Martell Carmela M. Martell M; chapl T MarteJl Mark R. Martell Rev 3/02 Title President Sec . ¡Treasurer v; ce-PrQii¡;i.dQllt Administrative Manager Wages and Bonuses.Paid 109410.00 60044.00 96718.00 '83404,08 Page 2 .. ,.NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices, extensions or additions to the system; disposal of any substantial portion of the propert of the 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. Rev 3/02 Page 3 Rural Telephone Company Page 4 Balce Sheet Assets and Oter Debits Year: 2008 Balance Balance Increase Beginnig at End or of Year of Year (Decrease) Curnt Assets 1120 Cah and Equivalents 430,915 467,036 36,121 1130 Cah and Equivalents 1140 Specal Cash Deposits 1150 Workig Cah Deposits 1160 Temporar Investments 1180 Telecommuncations Accounts Receivabli:121,979 112,313 (9,666) 1181 Accts Rec Alow - Telecommuncations 1190 Other Accounts Receivables 432,624 522,310 89,686 1191 Accts Rec Alow - Other 1200 Notes Receivable 1201 Notes Receivable Alowance 1210 Inteest and Dividends Receivable 1220 Materi and Supplies 45,554 470,271 15,717 1280 Prepayments 10,461 585 (9,876) 1290 Prepaid Rents 1300 Prepaid Taxes 1310 Prepaid Inurance 1320 Prepaid Diectory Expens 1330 Other Prepayments 1350 Other Curent Assets 467,44 339,834 (127,606) 1,917,973 1,912,349 (5,624)Noncurent Assets 1401 Investment in Afted Companes 4,219,894 4,332,805 112,911 1402 Investment in Nonaated Companes 1406 Nonreguated Investments 34,798 682,950 34,152 1407 Unaortized Debt Issuace Expens 1408 Sing Funds 1410 Other Noncuent Assets 494,424 524,198 29,774 1438 Deferred Maitence and Retiements 1439 Deferred Chges 1500 Other Jurstiction Assets - Net 5,055,116 5,539,953 484,837 Propert, Plant and Equipment 2001 Telecommuncations Plat in Service 20,704,516 21,216,240 511,724 2002 Prop. Held for Futue Telecom Use 4,00 4,000 2003 Telecom. Plat under Const. - Short Term 233,048 210,811 (22,237)200 Telecom. Plant under Const. - Long-Term 2005 Telecom Plat Adjustment 200 Nonoperatig Plat 2007 Goodwi 20,941,564 21,431,051 489,487 Depreciation and Amortzation Accounts 3100 Accumulted Deprecated (11,560,648)(11,959,491)(398,843) 3200 Accum Depr. - Held for Futue Use 3300 Accuulated Deprecation - Nonoperati 3400 Accum Amort. - Tangible 3410 Accum Amort. - Capitaed Leases 3420 Accum Amort. - Leashold Improvement 3500 Accum. Amort. - Intagible 3600 Accum. Amort. - Other (11,560,648)(11,959,491)(398,843) TOTAL ASSETS 16,35,005 16,923,862 569,857 Rural Telephone Company Page 5 Balance Sheet Liabilties & Stockolders' Equity Year: 2008 Balance Balance Increase Beginning at End or of Year of Year (Decrease) Current Liabilties 4010 Accounts Payable 747,538 381,036 (366,502) 4020 Notes Payable 4030 Advance Billings and Payments 38,014 42,557 4,543 4040 Customer Deposits 14,558 10,201 (4,357) 4050 Current Maturities - Long Term Debt 479,200 526,900 47,700 4060 Current Maturities - Capital Leases 4070 Income Taxes - Accred 4080 Other Taxes - Accred 38,124 42,547 4,423 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxi: 4120 Other Accred Liabilties 158,683 137,567 (21,116) 4130 Other Current Liabilties 938,575 643,346 (295,229) 2,414,692 1,784,154 (630,538) Long-Term Debt 4210 Funded Debt 6,087,447 6,787,123 699,676 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reaquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated Companies 4270 Oter Long-Term Debt 6,087,447 6,787,123 699,676 Other Liabilties & Deferred Credits 4310 Oter Long-Term Liabilties 4320 Unamort. Oper. Invest. Tax Credits - Net 4330 Unamort. Nonoper. Invest. Tax Credits - l 4340 Net Noncurent Defer. Oper. Income Taxi: 4350 Net Noncur. Defer. Nonoper. Income Taxi 4360 Otere Deferred Credits 4370 Oter Juris. Liab & Def. Credits - net Stockholders' Equity 4510 Capital Stock 56,900 56,900 4520 Additional Paid-In- Capital 10,197 10,197 4530 Treasury Stock 4540 Other Capital 4550 Retained Earngs 7,784,769 8,285,488 500,719 7,851,866 8,352,585 500,719 TOTAL LIAB. & TOTAL CREDITS 16,354,005 16,923,862 569,857 Ru r a l T e l e p h o n e C o m p a n y Pa g e 6 An a l y s i s o f T e l e c o m m u 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 Ye a r : 2 0 0 8 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 o f Ad d i t i o n s Re t i r e d an d En d of Ye a r Du n n g Y e a r or S o l d Ad j u s b n e n t s 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 19 7 , 0 5 2 19 7 , 0 5 2 21 1 2 Mo t o r V e h i c l e s 26 9 , 0 7 9 (3 0 , 1 7 7 ) 23 8 , 9 0 2 21 1 3 Ai c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o 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 46 9 , 8 4 9 8, 5 5 6 (2 , 2 0 9 ) - 47 6 , 1 9 6 21 2 1 Bu i d i n g s 94 6 , 8 0 4 - - 94 6 , 8 0 4 21 2 2 Fu r n i t u r e 13 7 , 6 3 9 2, 8 1 4 14 0 , 4 5 3 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 43 3 , 1 5 9 5, 0 6 5 - - 43 8 , 2 2 4 22 1 1 An a l o g E l e c t r o n i c S w i t c h g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h g 2, 8 8 5 , 3 2 1 67 7 , 9 4 9 (7 5 8 , 3 1 7 ) - 2, 8 0 4 , 9 5 3 22 1 5 El e c t r o - M e c h a n c a l S w i t c h 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 9, 6 3 2 9, 6 3 2 22 3 2 Ci r c u i t E q i u p m e n t 4, 2 7 6 , 6 1 8 58 9 , 5 7 7 (7 0 , 3 8 2 ) - 4, 7 9 5 , 8 1 3 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e 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 a l E q u i p m e n t 23 6 2 Ot h e r T e r m a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 10 , 2 6 5 66 5 - - 10 , 9 3 1 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 9, 8 8 0 , 6 4 9 47 , 0 2 9 - (1 4 , 5 8 4 ) 9, 9 1 3 , 0 9 4 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 1, 0 4 , 3 2 5 41 , 1 5 0 14 , 5 8 4 1, 1 6 0 , 0 5 9 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 84 , 1 2 3 - - 84 , 1 2 3 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 20 , 7 0 4 , 5 1 5 1, 3 7 2 , 8 0 5 (8 6 1 , 0 8 5 ) 21 , 2 1 6 , 2 3 6 Ru r a l T e l e p h o n e C o m p a n y Pa g e 7 An a l y s i s o f T e l e c o m m u n c a t i o n s P l a n t i n S e r v i c e Id a h o O p e r a t i o n s O n l y Ye a r : 2 0 0 8 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 o f Ad d i t i o n s Re t i r e d an d En d o f Ye a r Du n n g Y e a r or S o l d Ad j u s t m e n t s 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 15 1 , 5 0 5 - 15 1 , 5 0 5 21 1 2 Mo t o r V e l u c l e s 26 9 , 0 7 9 - (3 0 , 1 7 7 ) 23 8 , 9 0 2 21 1 3 Ai c r a f t 21 1 4 Sp e c i a l P u r p o s e V e l u c l e s 21 1 5 Ga r a g e W o 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 49 0 , 0 5 2 9, 0 5 5 (2 , 7 0 9 ) (2 0 , 2 0 2 ) 47 6 , 1 9 6 21 2 1 Bu i l d i n g s 52 2 , 6 5 3 - 52 2 , 6 5 3 21 2 2 Fu r n t u r e 13 7 , 6 3 9 2, 8 1 4 - 14 0 , 4 5 3 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r o s e C o m p u t e r s 43 3 , 1 5 9 5, 0 6 5 - - 43 8 , 2 2 4 22 1 1 An a l o g E l e c t r o n i c S w i t c h g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c r n g 1, 2 1 0 , 6 0 7 67 7 , 9 4 9 (7 5 4 , 4 9 2 ) - 1, 3 4 , 0 6 4 22 1 5 El e c t r o - M e c h a n c a l S w i t c h 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 9, 6 3 2 - 9, 6 3 2 22 3 2 Ci r c u i t E q i u p m e n t 2, 6 9 1 , 1 0 7 58 6 , 5 4 5 (7 0 , 3 8 2 ) 3, 2 0 7 , 2 7 0 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e W i r 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 a l E q u i p m e n t 23 6 2 Ot h e r T e r m a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 10 , 2 6 5 66 5 - 10 , 9 3 0 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r e d C a b l e 5, 6 4 1 , 5 5 5 34 , 1 4 6 (1 4 , 5 8 4 ) 5, 6 6 1 , 1 1 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 d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 81 3 , 5 1 5 41 , 1 5 0 - 14 , 5 8 4 86 9 , 2 4 9 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 84 , 1 2 3 - - 84 , 1 2 3 26 9 0 In t a n g i b l e s TO T A L P L A N A C C O U N T S 12 , 4 6 4 , 8 9 1 1, 3 5 7 , 3 8 9 (8 5 7 , 7 6 0 ) (2 0 , 2 0 2 ) 12 , 9 4 4 , 3 1 8 Ru r a l T e l e p h o n e C o m p a n y Pa g e 8 An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n To t a l C o m p a n y B a s i s Ye a r : 2 0 0 8 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 o f 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 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 Mo t o r V e h i c l e s 26 9 , 0 7 9 33 . 3 3 % 7, 5 0 0 (3 7 , 6 7 7 ) 23 8 , 9 0 2 21 1 3 Ai r c r a f t - 0. 0 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 - 0. 0 0 % 21 1 5 Ga r a g e W o k E q u i p m e n t - 0. 0 0 % 21 1 6 Ot h e r W o r k E q u i p m e n t 46 9 , 7 3 6 14 . 3 0 % 8, 6 7 0 (2 , 2 0 9 ) 47 6 , 1 9 7 21 2 1 Bu i l d i n g s 25 7 , 9 3 7 I D - 3 . 0 % N Y - 2 . 8 % 35 , 0 5 5 - 29 2 , 9 9 2 21 2 2 Fu r n i t u r e 13 6 , 1 5 2 12 . 5 0 % 4, 3 0 1 - 14 0 , 4 5 3 21 2 3 Of f i c e E q u i p m e n t - 0. 0 0 % 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 43 3 , 1 5 9 20 . 0 0 % - - 43 3 , 1 5 9 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g - 0. 0 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 2, 1 9 2 , 7 2 5 I D - 1 2 % N Y - 5 . 2 6 % 14 4 , 3 4 0 (6 5 2 , 0 3 5 ) 1, 6 8 5 , 0 3 0 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g - 0. 0 0 % 22 2 0 Op e r a t o r S y s t e m s - 0. 0 0 % 22 3 1 Ra d i o S y s t e m s 9, 6 3 2 20 . 0 0 % - - 9, 6 3 2 22 3 2 Ci r c u i t E q i u p m e n t 2, 1 0 1 , 9 7 6 I D - 1 0 % N V - 5 . 2 6 % 35 9 , 0 8 0 (7 6 , 9 3 6 ) 2, 3 8 4 , 1 2 0 23 1 1 St a t i o n A p p a r a t u s - 0. 0 0 % 23 2 1 Cu s t o m e r P r e m i s e W i r i n g - 0. 0 0 % 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s - 0. 0 0 % 23 5 1 Pu b l i c T e l e p h o n e T e r m i a l E q u i p m e n t - 0. 0 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. 0 0 % 24 1 1 Po l e s - 0. 0 0 % 24 2 1 Ae r i a l C a b l e 2, 2 8 8 5. 0 0 % 52 3 2, 8 1 1 24 2 2 Un d e r g r o u n d C a b l e - 0. 0 0 % 24 2 3 Bu r i e d C a b l e 5, 1 2 9 , 5 8 5 I D - 6 . 5 % a n d 5 % N Y - 4 % 48 0 , 4 1 1 24 5, 6 1 0 , 0 2 0 24 2 4 Su b m a r i n e C a b l e - 0. 0 0 % 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 0. 0 0 % 24 3 1 Ae r i a l W i r e - 0. 0 0 % 24 4 1 Co n d u i t S y s t e m s 17 1 , 2 2 2 I D - 7 % N Y - 4 % 69 , 7 3 7 24 0 , 9 5 9 26 8 2 Le a s e h o l d I m p r o v e m e n t s 40 , 0 4 3 3. 0 0 % 2, 5 2 2 - 42 , 5 6 5 TO T A L P L A N T A C C O U N T S 11 , 2 1 3 , 5 3 4 1 1, 1 1 2 , 1 3 9 (7 6 8 , 8 3 3 ) 11 , 5 5 6 , 8 4 0 Ru r a l T e l e p h o n e C o m p a n y Pa g e 9 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 Id a h o O p e r a t i o n s O n l y Ye a r : 2 0 0 8 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 o f 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 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 Mo t o r V e h i c l e s 26 9 , 0 7 9 33 . 3 3 % 7, 5 0 0 (3 7 , 6 7 7 ) 23 8 , 9 0 2 21 1 3 Ai r c r a f t - 0. 0 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 - 0. 0 0 % 21 1 5 Ga r a g e W o k E q u i p m e n t - 0. 0 0 % 21 1 6 Ot h e r W o r k E q u i p m e n t 46 8 , 1 0 2 14 . 3 0 % 8, 6 7 0 (5 7 5 ) 47 6 , 1 9 7 21 2 1 Bu i l d i n g s 11 8 , 5 8 6 3. 0 0 % 23 , 1 7 9 - 14 1 , 7 6 5 21 2 2 Fu r n i t u r e 13 6 , 1 5 2 12 . 5 0 % 4, 3 0 1 - 14 0 , 4 5 3 21 2 3 Of f i c e E q u i p m e n t - 0. 0 0 % 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 43 3 , 1 5 9 20 . 0 0 % - 43 3 , 1 5 9 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g - 0. 0 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, 1 5 3 , 5 6 5 12 . 0 0 % 20 , 4 9 5 (6 5 1 , 3 8 6 ) 52 2 , 6 7 4 22 1 5 El e c t r o - M e c h a n i c a l S w i t c h i n g - 0. 0 0 % 22 2 0 Op e r a t o r S y s t e m s - 0. 0 0 % 22 3 1 Ra d i o S y s t e m s 9, 6 3 2 20 . 0 0 % - - 9, 6 3 2 22 3 2 Ci r c u i t E q i u p m e n t 1, 6 2 2 , 3 8 5 10 . 0 0 % 27 5 , 5 5 6 (1 8 2 , 4 9 9 ) 1, 7 1 5 , 4 4 2 23 1 1 St a t i o n A p p a r a t u s - 0. 0 0 % 23 2 1 Cu s t o m e r P r e m i s e W i r i n g - 0. 0 0 % 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s - 0. 0 0 % 23 5 1 Pu b l i c T e l e p h o n e T e r m i a l E q u i p m e n t - 0. 0 0 % 23 6 2 Ot h e r T e r m i a l E q u i p m e n t - 0. 0 0 % 24 1 1 Po l e s - 0. 0 0 % 24 2 1 Ae r i a l C a b l e 2, 2 8 8 5. 0 0 % 52 3 - 2, 8 1 1 24 2 2 Un d e r g r o u n d C a b l e - 0. 0 0 % 24 2 3 Bu r i e d C a b l e 2, 7 2 6 , 9 8 9 6. 5 % an d 5% 31 0 , 4 9 7 24 3, 0 3 7 , 5 1 0 24 2 4 Su b m a r i n e C a b l e - 0. 0 0 % 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e - 0. 0 0 % 24 3 1 Ae r i a l W i r e - 0. 0 0 % 24 4 1 Co n d u i t S y s t e m s 12 1 , 1 6 1 7. 0 0 % 58 , 1 0 4 - 17 9 , 2 6 5 26 8 2 Le a s e h o l d I m p r o v e m e n t s 40 , 0 4 3 3. 0 0 % 2, 5 2 2 - 42 , 5 6 5 TO T A L P L A N A C C O U N T S 7, 1 0 1 , 1 4 1 1 71 1 , 3 4 7 (8 7 2 , 1 1 3 ) 6, 9 4 0 , 3 7 5 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 Syringa Partnership Solix Date Acquired 2001 Book Cost of Investments Disposed of This year Telispire ICSSyringa Video Fairfield Internet Pend'Oreille Telephone Nehalem Telecornunicaitons 2006 2007 2006 1997 2004 2005NRTe Totals RECEIVABLES Book Cost of Investments Held at End of Year 661,451 10,000 22500 6.000 3,000 2,6Q3,793 1,729.012 44,369 5,060,125 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 afEnd of YearNotes Accounts.. Receivable Receivable 112,313 311,593 76,918 26.344 38.560 10,903 301 ,271 96.555 974,457 Name of Company Customer Receivables NECA CABS Idahö USF Employee Advances CATV customers Related Parties Misc. Totals 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 Totals Date of Note Interest Rate ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100.00 Name of Creditor Elmore County Taxes Fiber Optic Supply Syringa Video Sun Micro Systems Mid-States Consulting Moss Adams . Due Date NRTC NeoNova Pánnaway Totals Telispire Other Alp. Related Pâ.rty Rev 3/02 Page 11 FaceAmount Amount 45ô47 16l500 1,000 5,066 18.781 6,179 37,521 24,696 7,402 ß,Jß7 209,957 643,346 1,024,382 LO N G . T E R M D E B T Ac c o u n t s 4 2 1 0 , 4 2 4 0 , 4 2 5 0 , 4 2 6 0 , 4 2 7 0 a n d 4 3 1 0 Li s t th e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e . Cl a s s & S e r i e s of O b l i a a t i o n RU S RU S LE S S C U R R E N T Re v 3 / 0 2 Da t e of Is s u e 19 8 2 19 8 4 - 2 0 0 8 Da t e of Ma t u r i t v Fa c t Am o u n t Au t h o r i z e d Ou t s t a n d i n g Ye a r - E n d , 26 1 7 1 , 0 3 1 , 0 6 0 3 4 8 . 5 1 8 20 1 0 - 2 0 2 4 1 0 , 1 8 1 , 9 4 6 6 , 9 6 5 , 5 0 5 ( 5 2 , 6 , 9 0 0 ) 6, 7 8 7 , 1 2 3 Pr e m i u m / D i s c o u n t Ye a r To t a l A m o r t i z e d Pa g e 1 2 In t e r e s t f o r y e a r Ra t e A m o u n t 2%5% 74 2 6 33 5 , 0 3 1 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 Stock Rev 3/02 Number of Shares Authorized 2500 Par Value per Share 100 Page 13 Outstanding per Balance Sheet Shares Amount 569 56900 Rural Telephone Company Income & Retained Earngs Statement Year: 2008 Page 14 Total Idaho Company Only Total Operating Income 4,883,150 2,852,064 Total Operating Expense 3,920,152 2,34,436 7100 Other Operatig Income and Expense 9,657 9,657 7210 Operatig Investment Tax Credits - Net 7220 Operatig Federal Income Taxes 7230 Operatig State and Local Income Taxes 7240 Operatig Other Taxes (154,520)(108,200) 7250 Provision for Deferred Operatig Income Taxes - Net 7200 Operatig Taxes (Total)(154,520)(108,200) 7310 Dividend Income 42,722 17,089 * 7320 Interest Income 14,495 5,798 * 7330 Income from Sing and Other Funds 7340 Allowance for Funds Used Dug Constrction 10,852 4,341 * 7350 Gains/Losses from the Disposition of Certai Property 7360 Other Nonoperatig Income 157,64 157,64 7370 Special Charges (38,872)(15,549) * 7300 Nonoperatig Income and Expense 186,84 169,323 7410 Nonoperatig Investment Tax Credits - Net 7420 Nonoperatig Federal Income Taxes 7430 Nonoperatig State and Local Income Taxes 7440 Nonoperatig Other Taxes 7450 Provision for Deferred Nonoperatig Income Taxes - Net 7400 Nonoperatig Taxes 7510 Interest on Funded Debt (342,457)(136,983) * 7520 Interest Expense - Capital Leases 7530 Amortization of Debt Issuance Expene 7540 Other Interest Deductions (27,994)(11,198) * 7500 Interest and Related Items (370,452)(148,181) 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinar Items - Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items - Net 7600 Extraordinry Items 7910 Income Effect of Juristictional Ratemakg Differences - Net 7990 Nonregulated Net Income 9,566 (127,862) AMOUNT TRANSFERRED TO RETAINED EARNING~64,089 302,366 * - Allocated based on Company access lies. Rural Telephone Company Operatig Revenues PagelS Year: 2008 Total Idaho Company Only Local Network Services Revenue 5001 Basic Area Revenue 425,780 22,021 5002 Optiona Extended Area Revenue 500 Cellula Mobile Revenue 500 Other Mobile Servces Revenue 5010 Public Telephone Revenue 500 Loc Prvate Line Revenue 5050 Customer Premies Revenue 5060 Other Loal Exchge Revenue 1,80 53 5069 Other Local Exchge Settements 426,960 22,074 Network Access Service Revenues 5081 End User Revenue (SLC, FUSC)148,712 55,911 5082 Switched Access Revenue (Iterstate)3,314,666 1,987,971 5083 Speci Access Revenue 85,425 21,370 5084 State Access Revenue (Intrastate)64,397 357,115 Long Distace Network Seces Revenues 5100 Long Distace Message Revenue - Al 307 4,193,507 2,42,367 Internet Services 5280.1 DSL Modem Revenue Idaho 4,861 4,861 5280.2 DSL Modem Revenue Nevada 8,645 13,506 4,861 Other Nonreguated Revenues 5280.3 Fiber Lease - Idaho 57,170 57,170 5280.31 DWN Circuit Equipment Lease 139,089 139,089 196,259 196,259 Miscellaneous Revenues 5230.1 Directory Revenue Idaho 705 705 5230.2 Directory Revenue Nevada 683 5210.1 IfS B&C Idaho 497 497 5210.2 lIS B&C Nevada 677 5220.1 Intrastate B&C Idaho 556 556 5220.2 Intrastate B&C Nevada 48,66 5260.1 Mic Revenue Idaho 3,910 3,910 5260.2 Mic Revenue Nevada 753 56,445 5,667 Uncollectble Revenues 5301 Uncollectible Revenue - Telecommuncation (3,527)(164) 5302 Uncollectible Revenue - Other (3,527)(164) TOTAL OPERATING REVNUE 4,883,150 2,852,064 Pleas identi the followig revenues: NECAUSF 1,551,615 5081.21 and 5081.22 STATEUSF 316,128 508.21 Rural Telephone Company Operating Expenses Year: 2008 Page 16 Total Idaho Company Only Plant Specific Operations Expense 6110 Network Support Expenses 17,747 7,099 * 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expenses 6116 Other Work Equipment Expense 6120 General Support Expense 64,201 25,680 * 6121 Land and Building Expense 206,047 191,500 6122 Furnture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expense 178,506 150,432 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro - Mechanical Expense 6220 Operations System Expense 6230 Central Office Transmission Expense 477,664 318,310 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Inormation Origination/Termation Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Termal Equipment Expense 6362 Other Termial Equipment Expense 6410 Cable and Wire Facilties Expenses 430,234 252,212 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE 1,374,399 945,233 * Allocated based on Company access lies. Rural Telephone Company Operatig Expenses Year: 2008 Plant Nonspecific Operations Expense 6510 Other property /plant/ equipment expenses 6511 Property Held for Future Telecomm Use Expense 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Adminstration Expense 6535 Engineerig Expense 6540 Access Expense 6560 Depreciation and Amortization Expense 6561 Depreciation Expense - Telecom. Plant in Servce 6562 Depreciation Expense - Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expense Customer Operations Expense Marketing Product Management Sales Product Advertising Services Call Completion Services Number Services Customer Servces Total Customer Operations Expense 6610 6611 6612 6613 6620 6621 6622 6623 6710 6711 6712 6720 6721 6722 6723 6724 6725 6726 6727 6728 6790 Corporate Operations Expense Executive and Planing Executive Planng General and Administrative Accounting and Finance External Relations Human Resources Information Management Legal Procurement Research and Development Other General and Administrative Provision for Uncollectibe Notes Receivable Total Corporate Operations Expense Total plant nonspecific, customer and corporate Total Plant Specific Expense TOTAL OPERATING EXPENSE * - Allocated based on company access lines. Page 17 Total Company Idaho Only (5,026)(2,010) * 48,931 21,904 89,049 47,003 53,981 29,654 30,377 12,151 * 1,088,200 723,703 1,305,512 832,405 105,958 42,383 * 115,233 64,449 221,191 106,833 268,251 107,300 * 613,567 245,427 * 132,751 104,377 4,481 2,860 1,019,050 459,965 2,545,753 1,399,203 1,374,399 945,233 3,920,152 2,344,436 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 8 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f c e : B o i s e R i v e r Pr e f i x ( e s ) : 2 0 8 - 6 5 3 Ce n t r a l O f f c e S w i t c h Ty p e : M e t a S w i t c h Ch e c k a l l t h a t ~ p p l y : St a n d A l o n e ~ Ho s t Re m o t e X Ch e c k on e : Di g i t a l . 2 An a l o g _ Ac c e s s L i n e C a p a c i t y De s i g n : 2 0 4 8 In s t a l l e d / E q u i p p e d : J u n e 1 6 , 2 0 0 8 Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Ye a r Re s i d e n c e Si n g l e L i n e Mu l t i - 1- P a r t y P a r t 28 7 0 -- L- - - L- . - - 27 8 0 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 . : 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 : To t a l n u m b e r o H e a t u r e s s u b s c r i b e d t o : _ Re v 3 / 0 2 Ch e c k o n e : El e c t r o n i c 2 El e c t r o - M e c h a n i c a l Ot h e r : Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : 3 1 6 (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 ~ Co m p a n y O f f c i a l L i n e s ~ Co m p a n y T e s t L i n e s ~ Su b t o t a l Re s i d e n c e 28 7 o Ce n t r e x N. A . R . o Q o o Mu l t i - Li n e 1- P a r t y 19 o 3 16 9 27 8 Bu s i n e s s Si n g l e L i n e Mu l t i - Pa r t o 1- P a r t y 19 3 o 22 o o 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 : ~ Pa g e 1 8 Su b t o t a l Bu s i n e s s 38 3 3 38 c . To t a l Re s i d e n c e & B u s i n e s s 32 5 3 12 31 6 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 8 ( u n l e s s ot h e r w i s e i n d i c a t e d ) Na m e o f Ce n t r a l O f f c e : A t l a n t a Pr e f i x ( e s ) : Ce n t r a l O f f c e S w i t c h Ty p e : M e t a S w i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e _ Ho s t Re m o t e X Ch e c k on e : Di g i t a l . . An a l o g _ Ac c e s s L i n e C a p a c i t y De s i g n : 2 0 4 8 In s t a l l e d / E q u i p p e d : J u n e 1 6 , 2 0 0 8 Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Ye a r Re s i d e n c e Si n g l e L i n e Mu l t i - 1- P a r t P a r t 31 0 o 0 -- 2 0 -- 29 0 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 . : 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 : 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 : _ Re v 3 / 0 2 Ch e c k o n e : Ei e c t r o n i c - . El e c t r o - M e c h a n i c a l _ Ot h e r : Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : - - (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 ~ Co m p a n y O f f i c i a l L i n e s ~ Co m p a n y T e s t U n e s ~ Ce n t r e x NA R . o o o o Mu l t i - Li n e 1- P a r t y 3 , 0 _0 3 Bu s i n e s s Si n g l e L i n e Mu l t i - Pa r t y o o 1- P a r t y 2 1 Q 3 Q 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 : _ Pa g e 1 8 Su b t o t a l Bu s i n e s s 5 1 Q 6 To t a l Re s i d e n c e & B u s i n e s s 36 1 .i 15 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 8 (u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f c e : P r a i r i e Pr e f i x ( e s ) : 2 0 8 - 8 6 8 Ce n t r a l O f f c e S w i t c h Ty p e : Me t a Sw i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e _ Ho s t _ Re m o t e - i Ch e c k o n e : Di g i t a l . . An a 1 0 9 _ Ch e c k on e : Ei e c t r o n i c - x El e c t r o - M e c h a n i c a l _ Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : 2 0 4 8 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 : - - (I n c l u d e C e n t r e x , P A L , S e m i - P u b . ) In s t a l l e d / E q u i p p e d : J u n e 1 6 , 2 0 0 8 Pu b l i c T e l e p h o n e L i n e s - - Co m p a n y O f f i c i a l L i n e s ~ Co m p a n y T e s t L i n e s ~ 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 1- P a r t Pa r t y Re s i d e n c e NA R . 1- P a r t y 1- P a r t y Pa r t 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 0 49 0 49 0 0 4 0 4 53- Ne w C o n n e c t s 0 3 0 3 0 1 0 0 1 4 Di s c o n n e c t s 0 0 0 ': 0 0 0 0 0 0 0- En d o f Ye a r 0 52 0 52 0 1 4 0 5 57 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 wi 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 : ~ 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 : 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 : _ Re v 3 / 0 2 Pa g e 1 8 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 8 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f Ce n t r a l O f f c e : T i p a n u k Pr e f i x ( e s ) : 2 0 8 - 7 9 6 Ce n t r a l O f f c e S w i t c h Ty p e : M e t a S w i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e _ Ho s t _ Re m o t e - X Ch e c k o n e : Di g i t a l - - An a l o g _ Ch e c k o n e : El e c t r c m i c 2 El e c t r o - M e c h a n i c a l _ Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : 2 0 4 8 In s t a l l e d / E q u i p p e d : J u n e 1 6 l 2 0 0 8 Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : 1 1 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 - - Co m p a n y O f f c i a l L i n e s - - Co m p a n y T e s t L i n e s - - 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 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 y 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 0 11 8 0 11 8 0 5 4 0 9 12 7 Ne w C o n n e c t s 0 0 0 0 0 1 0 0 1 1 Di s c o n n e c t s 0 11 0 11 0 0 0 0 0 11 - En d o f Ye a r 0 10 7 0 10 7 0 6 4 0 10 11 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 : ~ 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 : 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 : _ _ Re v 3 / 0 2 Pa g e 1 8 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 8 ( u r i l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f Ce n t r a l O f f c e : S h o u p Pr e f i x ( e s ) : 2 0 8 = 3 9 4 Ce n t r a l O f f c e S w i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e ~ Ho s t _ Re m o t e _ Ac c e s s L i n e C a p a c i t y De s i g n : 1 2 0 0 In s t a l l e d / E q u i p p e d : Ty p e : R e d c o m M D X Ch e c k o n e : Di g i t a l - l An a l o g _ Cl a s s i f i c a t i o n o f . C u s t o m e r A c c e s s Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Ye a r Mu l t i - Li n e 1- P a r t Q o o o 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 . : Re s i d e n c e Si n g l e L i n e Mu l t i - Pa r t .Q o o o 1- P a r t 34 o 7 27 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 : 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 : _ Re v 3 / 0 2 Ch e c k o n e : El e c t r o n i c ~ El e c t r o - M e c h a n i c a l _ Ot h e r : Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : - - (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 ~ Co m p a n y O f f i c i a l L i n e s ~ Co m p a n y T e s t L i n e s ~ Su b t o t a l Re s i d e n c e .1 o 7 27 Ce n t r e x N. A R . Q o o o Mu l t i - Li n e 1- P a r t y 1 1 o 8 Bu s i n e s s Si n g l e L i n e Mu l t i - 1- P a r t P a r t 5 - - 2 0 o 0 7 0 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 wi t h N o n p u b l i s h e d o r N o n l i s t e d : _ Pa g e 1 8 Su b t o t a l Bu s i n e s s 12 3 o 15 To t a l Re s i d e n c e & B u s i n e s s A.3 7 42 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 8 ( u n l e s s ot h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f c e : T h r e e C r e e k Pr e f i x ( e s ) : 2 0 8 - 8 5 7 Ce n t r a l O f f c e S w i t c h Ty p 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 : St a n d A l o n e - X Ho s t Re m o t e _ Ch e c k o n e : Di g i t a l . . An a 1 0 9 _ Ch e c k o n e : El e c t r o n i c - x El e c t r o - M e c h a n i c a l _ Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : 1 2 0 0 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 : 4 6 (I n c l u d e C e n t r e x , P A L , S e m i - P u b . ) In s t a l l e d / E q u i p p e d : Pu b l i c T e l e p h o n e L i n e s - L Co m p a n y O f f c i a l L i n e s - - Co m p a n y T e s t L i n e s 7 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 1- P a r t y Pa r t Re s i d e n c e NA R . 1- P a r t y 1- P a r t y Pa r t 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 0 36 0 36 0 8 4 0 12 48 Ne w C o n n e c t s 0 0 0 0 0 1 0 0 1 1~ Di s c o n n e c t s 0 3 0 3 0 0 0 0 0 3~ En d o f Ye a r 0 33 0 33 0 9 4 0 13 46 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 : _ 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 : To t a l n u m b e r o f f e a t u r e s su b s c r i b e d t o : _ Re v 3 / 0 2 Pa g e 1 8 Lo c a l E x c h a n g e 1 B o i s e R i v e r 2 S h o u p 3 T i p a n u k 4 T h r e e C r e e k 5 At l a n t a 6 Pr a i r i e 7 8.9_10 11 12 13 14 15 16 17 18 Re v 3 / 0 2 NU I V B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G ( Y e a r ) 20 0 8 Av e r a g e # Lo c a l C a l l s To l l C a l l s O r i g i n a t e d ( T o t a l o f a l l C a r r i e r s ) of Cu s t o m e r Nu m b e r Av g . l Av g . l Li n e s i n U s e (1 0 0 0 s ) Li n e In t r a s t a t e In t e r s t a t e To t a l Li n e 31 6 NI A 24 8 1 2 37 2 9 8 62 1 1 0 19 6 , 5 S _ 42 NI A .8 8 7 6 34 3 4 9 43 2 2 5 10 2 9 . 1 7 - 11 7 N! A 24 4 5 16 1 5 6 19 1 0 1 .1 6 3 . 2 6 46 N/ A 19 6 5 4 13 9 9 4 33 6 4 8 73 1 . 4 8 - - 35 N/ A 18 0 7 7 65 0 9 24 5 8 6 70 2 , 4 6 57 N/ A 38 9 6 11 2 6 3 15 1 5 9 26 5 , 9 5 Pa g e 1 9 .ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2008 . CUSTOMER RELATIONS RULES COMPLIANCE Rule mAPA 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~No_ Included in directory Yesi- No_ Date of notification June and Octuber Alternate method of notification Newspapers Rule IDAPA 31.41.01.403.02 Record of Complaints: Number received by Company 2 Category of complaints (if known): Deposit Disputes Charges on Bil DeniallT ermination Quality or Availability of Service Carrier Selection/Assignment 2 Miscellaneous Rev 3/02 Page 20 Idaho Statesman P.O. Box 40, Boise, Idaho 83707-0040 LEGAL ADVERTISING PROOF OF PUBLICATION Accunt # DTI#Identification Amount: LEGAL NOTICE . 112511 394607 EQUAL OPPORTUNITY EMPLOYER $35.72 Attention:P.O. # Run Dates KELLEY RODGERS OCTOBER 1, 2008 RURAL TELEPHONE COMPANY Number of Lines 892 W. MADISON 32 GLENNS FERRY, ID 83623 Affdavit Legal # 1 I / JANICE HILDRETH, being duly sworn, deposes and says: That she is the Principal Clerk of The Idaho Statesman, a daily newspaper printed and published at Boise, Ada County, State of Idaho, and having a general circulation therein, and which said newspaper has been continuously and uninterruptedly published in said County during a period of twelve consecutive months prior to the first publication of the notice, a copy of which is attached hereto: that said notice was published in The Idaho Statesman, in conformity with Section 60-108, Idaho Code, as amended, for: ONE Iconsecutive weekly Iconsecutive dailyinsertion( s) x I single I odd skip beginning issue of: OCTOBER 1 , 2008 ending issue of: OCTOBER 1 , 2008 Cp/J.~ ) STATE OF IDAHO ) .ss COUNTY OF ADA ) On this 8 day of OCTOBER n the year of 2008 before m"ë Notary Public, personally appeared before me Janice Hildreth known or identified to me to be the person whose name subscribed to the within instrument, and being by me first duly sworn, dec~¡¡III!UfP statements therein~~ ru...'"are true, and cknowl~~~~Hn~~li~t,.çxecuted the same....... ..... L'1~'"$ ... -:..oNotary for aho: i :. ...~ 8..:: Residi~g ~t: ~OiS~ i~a~ ~~ ~ ~ltr j' My Commission e~i~ ,~ 5'"" I. .: I ': .o .. ..... ~.;....(1' ........ ~v...... ....", i: 0 F \'0 ¡. ~~...... """..i.."'~.. Idaho Statesman P.O. Box 40, Boise, Idaho 83707-0040 LEGAL ADVERTISING PROOF OF PUBLICATION Account # DTI#Identification Amount: LEGAL NOTICE . 112511 394598 SERVICE RATES $81.50 Attention:P.O. # Run Dates KELLEY RODGERS OCTOBER 1, 2008 RURAL TELEPHONE COMPANY . Number of Lines 892 W. MADISON 2X34 GLENNS FERRY, ID 83623 Affdavit Legal # 1 l /' JANICE HILDRETH, being duly sworn, deposes and says: That she is the Principal Clerk of The Idaho Statesman, a daily newspaper printed and published at Boise, Ada County, State of Idaho, and having a general circulation therein, and which said newspaper has been continuously and uninterruptedly published in said County during a period of twelve consecutive months prior to the first publication of the notice, a copy of which is attached hereto: that said notice was published in The Idaho Statesman, in conformity with Section 60-108, Idaho Code, as amended, for: ONE Iconsecutive weekly lconsecutive dailyinsertion(s) I single I odd skip x beginning issue of: OCTOBER 1 , 2008 ending issue of: OCTOBER 1 , 2008 ep¿ff1W¿ STATE OF IDAHO ) .ss COUNTY OF ADA ) On this 8 day of OCTOBER n the year of 2008 before me, a Notary Public, personally appeared before me Janice Hildreth known or identified to me to be the person.b d ..="~....b db.whose name subscn e to~t.. :ni yi~~ent, an eing by me first duly sworn, ~~ ~~ ~;~nts therein .... .. -. 'C~ #:are true, and acknowJl ~me that s~~~GJed the same.d:~~Notary Public for Id~o ~ P Ù \ c: :)1 Residi~g at: Boise, 1~11.; ... ~B L .. ¡ My Commission expiréi~ ~_ · "......'; F 1 ..#'" ,,~~ ""11..11.', ..' Idaho Statesman P.O. Box 40, Boise, Idaho 83707-0040 LEGAL ADVERTISING PROOF OF PUBLICATION Account # DTI#Identifcation Amount: LEGAL NOTICE 112511 394605 LOW-INCOME INDIVIDUALS $28.04 Attention:P.O. # Run Dates KELLEY RODGERS " OCTOBER 1, 2008 RURAL TELEPHONE COMPANY Number of Lines 892 W. MADISON 24 GLENNS FERRY, ID 83623 Affdavit legal # 1 I / JANICE HILDRETH, being duly sworn, deposes and says: That she is the Principal Clerk of The Idaho Statesman, a daily newspaper printed and published at Boise, Ada County, State of Idaho, and having a general circulation therein, and which said newspaper has been continuously and uninterruptedly published in said County during a period of twelve consecutive months prior to the first publication of the notice, a copy of which is attached hereto: that said notice was published in The Idaho Statesman, in conformity with Section 60-108, Idaho Code, as amended, for: ONE I consecutive weekly Iconsecutive dailyinsertion(s) x I single I odd skip beginning issue of: OCTOBER 1 , 2008 ending issue of: OCTOBER 1 , 2008~J1J),¡j¿ STATE~) .ss COUNTY OF ADA ) On this 1 day of OCTOBER n the year of 2008 before m"ã Notary Public, personally appeared before me Janice Hildreth known or identified to me to be the person whose name subscribed to the within instrument, and being by me first duly sworn, declared that the statements therein are true, and ac owledgeq to me that she executed the same.Ld Notary Public for Idaho Resid~øt.!M.J.daho I IM~PiiilU~1fl 2: 0 -: 2 Cl i L(~ ~''';'~JV~' ...!~.. \ ¡~r. ~..y ~ "'Eo ~ .:; ~ ~o .' CJ i 0 : . .., '..,:. - :.\oe v ....',~.. p~\~ .. ~ ~. v . "" .... .. '- .:.......... ~ ~..'" ". Sr A Tt: \) ,',.... ..."..,..i.,..~' "............~1l" Cy S -.... ~p. . ..è ~## /~ .........!'~.,..\· ~Ol'3J~ ~\ : ... .¡i A .. Ól~\. V".."8L11C J ".. ~~.h '- ,~.,##..~ OJ: 'D '" "~",,,..........,' AFFIDAVIT OF PUBLICATION County of ElmoreState of Idaho lss. I, Coleen W, Swenson, do solemnly swear that I am the Publisher of the: Mountain Home News A weekly newspaper of general circulation, published once a week, in Mountain Home, Idaho, that the notice attached hereto which is a part of publication thereof; was published in said newspaper for -l consecutive weeks, the first publication having been made on the .. h31 ..... day of Ge.t ,2008, and the last publication having :;n made on the - \~1" day of 0 , 2008; eveiy ~ay issue of the paper during the period and time of publication and that the notice was published in the paper proper and not in a supplement thereof. And I further swear that the said Mountain Home News has been continuously and uniterrptedly published in said Elmore County durig the period of 78 consecutive weeks prior to the first publication of the attached notice.~w.~ Subscribed and swom to me this -l day of Oct , p08. \ r,~,..¡ / fì -'~ ~ Residig in Mountai Home, Elmore County, Idaho. My commission expires 11-17-2011. Affidavit of Publication' STATE OF IDAHO ) COUNTY OF TWIN FALLS) 55. I, Ruby Aufderheide, being first duly sworn upon" oath, depose and say that I am Legal Clerk of the " TIMES- NEWS, published daily at, Twins Falls, Idaho, and do solemnly swear that a copy of the notice of advertisement, as per clipping attached, was published in the regular and entire issue of said newspaper, and not in any supplement thereo~, for one ~R8eetti; e l~ ' commencing with the issue dated 2nd day of October, 2008 and ending with the issue dated 2nd day of October, 2008I /' And I do furter certify that said newspaper is a consolidation. effective February 16. 1942. of the Idaho Evening Times. published theretofore daily except Sunday, and the Twin Falls News. published theretofore daily except Monday, both of which newspapers prior to consolidation had ben published under said naes in said city and county contiuously and uninterrptely during a period of more than twelve consecutive months. and said TIMES-NEWS. since such consolidation. has ben published as a daily newspaper except Saturday. until July 31. 1978. at which tie said newspaper began daily publication under said name in said city and county continuously and uniterrpted. that pursuant to Section 60-108 Idaho Code. Thursday of each week has ben designate as the day y law or by order of any court of competent jurisdiction within the state of Idaho to be issued thereof as the day on which said legal wil be published. , ctober. 2008. before me, nally appeared Ruby Aufdeheide. 8t/pC- ff~~ed t- me to be the person whose name subscribed to the(within instrment, and being by me fist duly e statements therein are tre. and acknowledged to me that he executed the same. b~~Notary Public for Idaho / Residing at Twin Falls. Idaho. My commision expires:5l~(t-¡Zt _ a a LINDA CAPPS-McGUIRE NOTARY PUBLIC STATE OF IDAHO Affidavit of Publication STATE OF IDAHO ) COUNTY OF TWIN FAllS) SS. I, Ruby Aufderheide, being first duly sworn upon òath, depose and say that I am Legal Clerk of ther TIMES-NEWS,published daily at, Twins Falls, Idaho, and do solemny swear that a copy of the notice of advertisement, as per clipping attached, was published in the regular and entire issue of said newspaper, and not in any supplement thereoi for oneJØseeti~'CMUt:i ' commencing with the I issue dated 2nd day of October, 2008 and ending with the issue dated 2nd day of October, 2008 /"And I do furter certfy that said newspaper is a consolidation, effective February 16, 1942, of the Idao Evening Times, published theretofore daily except Sunday, and the Twin Falls News, published theretofore daily except Monday, both of which newspapers prior to consolidation had been published under said names in said city and county contiuously and uninterrptedly during a period of more than twelve consecutive months, and said TIMES-NEWS, since such consolidation, has been published as a daily newspaper except Saturday, until July 31, 1978, at which time said newspaper began daily publication under said name in said city and county contiuously and uninterrpted. And I furter certfy tht pursuant to Section 60-108 Idaho Code, Thursday of each week has been designated as the day on which legal notice by law or by order of any court of competent jursdiction within the state of Idaho to be issued thereof Thursday is announced as the day on which said legal wil be published. STATE OF IDAHO COUNTY OF TWIN FALLS b On this 2nd day of October, 2008, before me, a Notary Public, persnally appeared Ruby AUfdeheide,R l/ I? ¡;¡ ~erh) cd e known or identified to me to be the person whose name sgc~~ to tie withi: fn~ment, and being by me first duly sworn, declare that tht statements therein are tre, and acknowledged to me that he executed the same. b~~¿t~Nota ic for Idaho Residing at Twin Falls, Idaho. My commision expires: , 6--/ c¡ ~C! 9 ~ LINDA CAPPS-McGUIRE NOTARY PUBLIC STATE OF IDAHO .. ......,..".".'V.,;~~~c,ii¿c~.s'íf;~¡;;;;.,...,.......:. ... ~'l c.t\~..........",d. ~~ ~ ~.... .. 0 ~ i.. . L llOT~1l .. ~ \... ~.I · -.- l \;~AlJ. BLIC lL. i ")0 .. doO" ~.", ~ OF in" V ,....'l... " ti""..........,',.. AFFIDAVIT OF PUBLICATION County of Elmore State of Idaho Iss. I, Cole en W. Swenson, do solemnly swear that I am the Publisher of the: Mountain Home News A weekly newspaper of general circulation, published once a week, in Mountai Home, Idaho, that the notice attached hereto which is a part of publication L;eof; was published in said newspaper for consecutive weeks, the first publication having been made on the .Lf . ... day of~MR .. ~~008, and the last publicã1ion liaVìiig beeñ made on the ..25ib dayof:WAl 0 ,2008; every Wednesday issue of the paper during the period and time of publication and that the notice was published in the paper proper and not in a supplement thereof. And I further swear that the said Mountain Home News has been continuously and uninterrptedly published in said Elmore County during the period of 78 consecutive weeks prior to the first publication of the attached notice. lQJJ~g~b her ~ day esiding in Mountain Home, Elmore County, daho. 'My commission expires 11-17-2011. Affidavit of Publication STATE OF IDAHO ) COUNTY OF TWIN FAllS) SSt I, Ruby Aufderheide, being first duly sworn upon bath, depose and say that I am Legal Clerk of the ,. TIMES-NEWS,published daily at, Twin Falls, Idaho, and do solemny swea that a copy of the notice of advertisement, as per clipping attahed, was published in the regul and entire issue of said newspaper, and not in any supplement thereof, for one 68R81111tlti, e , commencing with the i issue dated 12th day of June, 2008 and ending with the issue dated 12th day of June, 2008/ An I do furter certfy that said newspaper is a consolidation, effective Februar 16, 1942, of the Idaho Evening Times, published theretofore daily except Sunday, and the Twin Falls News, published theretofore daily except Monday, both of which newspapers pnor to consolidation had ben published under said names in said city an county contiuously and uniterrptey during a penod of more than twelve consutive month, and said TIMES-NEWS, since such consolidation, has ben published as a daily newspaper except Sanirday, until July 31, 1978, at which ti said newspaper began daily publication under said name in said city and county continuously and uniterrpte. And I furter certfy that pursuant to Section 60-108 Idaho Code, Thursday of each week has ben designate as the day on which legal notice by law or by order of any court of competent junsdiction within the state of Idao to be issued thereof Thursdy is announce as the day on which said legal wil be published. STATE OF IDAHO COUNTY OF TWIN FALLS On this 12th day of June, 2008, before me, a Notary Public, personally appered B()Ji .!fJf'rhei J ~ , known or identified to ~e to be the person whose me subscribe to the within instrment, and being by me firt duly sworn, declare that the statements therein are tre, and acknowledged to me that he executed the same. ~Nota~ho Residing at Twin Falls, Idaho. '/ffg~~ My commision expires:.£L~~?'9' -r.....2".-.~~ ~ LiNDA CAPPSMMcGUIRE L. NOTARY PUBLIC STATE OF IDAHO,~~,~ Affidavit of Publication STATE OF IDAHO ) COUNTY OF TWIN FALLS) SS. I, Ruby Aufderheide, being first duly sworn uporloath, depose and say that I am Legal Clerk of the TIMES-NEWS,published daily.at, Twins Falls, Idaho, and do solemny swear that a copy of the notice of advertisement, as per clipping attached, was published in the regul and entire issue of said newspaper, and not in any supplement thereof, for one i;onslCllÌt& , commencing with the i issue dated 12th day of June, 2008 and ending with the issue dated 12th day of June, 2008 ,/ And I do furter certfy that said newspaper is a consolidation, effective Februar 16, 1942, of the Idao Evening Times, published theretofore daily except Sunday, and the Twin FaIls News, published theretofore daily except Monday, both of which newspapers pnor to consolidation had been published under said names in said city and county continuously and uniterrptely during a period of more th twelve consecutive months, and said TIMES-NEWS, since such consolidation, has been published as a daily newspaper except Saturday, until July 31, 1978, at which time said newspaper began daily publication under said name in said city and county contiuously and uniterrpte. at pursuant to Section 60- 108 Idaho Code, Thursday of each week has been designate as the day w or by order of any court of competent junsdiction within the state of Idaho to be issued thereof the day on which said legal wil be published. FALLS ,2008, before me, ~ ,"" tf /f ¡;Ae¡ Jee to be the persn whose na ; subscribe to the within intrment, and being by me first duly statements therein are tre, and acknowledged to me that he execute the same. N~~~~ Residing at Twin FaIls, Idaho. My cornision expires:~/9'¿7f 'r.~"'~ i.~d LINDA CAPPS-M. cGUIRE NOTARY PUBLIC STATE OF IPAHO~.P?""~~W'~~ Idaho Statesman P.o. Box 40, Boise, Idaho 83707-0040 LEGAL ADVERTISING PROOF OF PUBLICATION Account # DTI#Identification Amount: LEGAL NOTICE 112511 354451 SERVICE RATES $75.29Attention:P.O. # Run Dates KELLEY RODGERS JUNE 2, 2008 RURAL TELEPHONE COMPANY Number of Lines 892 W. MADISON 2X33GLENNS FERRY, ID 83623 Affdavit Legal # 1 I / JANICE HILDRETH, being duly sworn, deposes and says: That she is the Principal Clerk of The Idaho Statesman, a daily newspaper printed and published at Boise, Ada County, State of Idaho, and having a general circulation therein, and which said newspaper has been continuously and uninterruptedly published in said County during a period of twelve consecutive months prior to the first publication of the notice, a copy of which is attched hereto: that said notice was published in The Idaho Statesman, in conformity with Section 60-108, Idaho Code, as amended, for: ONE I consecutive weekly Iconsecutive daily insertion( 5) I single I odd skip x beginning issue of: JUNE 2, 2008 ending issue of:. JUNE 2, 2008 (1UI)jlJ.;tikJ1R: STATEOFC) .55 COUNTY OF ADA ) On this 2 day of JUNE n the year of 2008 before më: Notary Public, personally appeared before me Janice Hildreth known or identified to me to be the person whose name subscribed to the w~~llt, and being by me first duly sworn, deciar~\v~~ therein are true, and acknowledg \1~~he same. ll._",IP ~OT .'.' . , Notary Public for i Residing at: Boise, Idah My Commission expires: \D\ Ot ", ,.CERTIFICATE State of Idaho ss County of Elmore WE, the undersigned Michael J. Martell and Mark R . Martell of the Rural Telephone Company utility, on our oath do severally say that the foregoing return has been prepared under our direction, from the originàl books, papers, and records of said utilty; 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. / cribed and Sworn to Before Me this 12 day of May , (Year)2009 My Commission expires March 28 ,(Year) 2012 ~",,'''Il'''11111. ~"~\.'( . fl. AR!?u!'I,,~. \.(('........ ":ve.~#/~ o' 'o/à~,.~.o . o. ~~~ ~ "-: ~OTARY ',-PO ~::: - ~ ::æ*: ... :*.== : : .: ~ ~ PUB. LtC : ~~. _. -~~- ~ ~ ~~ -.. ..- ~~ ~'.o..~.tc ~¡fiil. "~(f~:~,,\'~/""'ll"I\"" Rev 3/02 gdklexcelljnelson/anulrpts/telannualrpt Page 21 AN N U A L R E P O R T OF . ID A H O S E P A R A T E D R E S U L T S O F O P E R A T I O N S (T e l e c o m m u n i c a t i o n s U t i l t i e s F o r m I ) r / 3 l 7 OF Ru r a l T e l e p h o n e C o m p a n y Na m e o f R e s p o n d e n t TO TH E ID A H O P U B L I C U T I L I T I E S C O M M I S S I O N PO B O X 3 8 7 2 0 BO I S E , 10 8 3 7 2 0 - 0 0 7 4 J0 7 F O R M i IN P U T M A S T E R I I i I I I I I OM P A N Y N A M E : R u r a l T e l e p h o n e C o m p a n y 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 7 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 I I I 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 & WA 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 UM M A R Y pe r a t i n g R e v e n u e s )X X L o c a l - B i l l e d (1 ) 1. 22 4 , 1 2 9 22 4 , 1 2 9 22 4 , 1 2 9 -E A S B i l l e d (1 ) 2. 0 0 -E A S S e t t l e m e n t (1 ) 3. 0 - 0 )8 X A c c e s s - S L C ( E n d U s e r ) (2 ) 4. 54 , 1 6 7 54 , 1 6 7 54 , 1 6 7 0 -S w i t c h e d ( T S + N T S ) (2 ) 5. 2, 1 9 2 , 8 5 7 1, 8 4 9 , 0 8 5 1, 8 4 9 , 0 8 5 34 3 , 7 7 2 34 3 , 7 7 2 -S p e c i a l (2 ) 6. 31 , 7 3 3 25 , 0 2 6 25 , 0 2 6 6, 7 0 7 6, 7 0 7 LX X T o l l - M e s s a g e (3 a ) 7. 0 - 0 -P r i v a t e L i n e (3 b ) 8. 0 - 0 -S e t t e m e n t (3 c ) 9. 0 0 2X X M i s c . - B i l i n g & C o l l e c t i o n (4 ) 10 . 59 6 29 4 29 4 30 2 30 2 -D i r e c t o r y A d v e r t i s i n g 11 . 1, 3 9 4 - 1, 3 9 4 1, 3 9 4 -O p e r a t i n g R e n t s 12 . 0 - 0 -O t h e r M i s c . 13 . 20 2 , 3 8 0 - 20 2 , 3 8 0 20 2 , 3 8 0 30 X L e s s : U n c o l l e c t i b l e R e v . ( - ) 14 . -1 1 4 - (1 1 4 ) -1 1 4 et a l R e v e n u e s 15 . 2, 7 0 7 , 1 4 2 1, 9 0 3 , 5 4 6 25 , 0 2 6 1, 9 2 8 , 5 7 2 34 4 , 0 7 4 6, 7 0 7 ° 42 7 , 7 8 9 77 8 , 5 7 0 pe r a t i n g E x p e n s e s 1 X X - 6 4 X X P l a n t S p e c i f i c O p e r . 5a 16 . 86 6 , 1 9 6 33 9 , 0 8 5 60 , 2 8 4 39 9 , 3 6 9 17 8 , 4 5 0 1, 4 7 5 43 , 4 5 8 24 3 , 4 4 4 46 6 , 8 2 7 3X 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 5a 17 . 11 4 , 8 6 6 39 , 4 0 5 5, 3 1 1 44 , 7 1 6 25 , 7 3 3 21 9 5, 4 5 2 38 , 7 4 6 70 , 1 5 0 36 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 5a 18 . 56 6 , 8 8 6 16 8 , 1 7 5 37 , 3 7 7 20 5 , 5 5 2 13 9 , 6 8 6 1, 1 7 4 31 , 6 5 2 18 8 , 8 2 2 36 1 , 3 3 4 3X X C u s t o m e r O p e r a t i o n s 5a 19 . 93 , 6 0 2 30 , 2 2 9 0 30 , 2 2 9 37 , 5 6 7 0 0 25 , 8 0 6 63 , 3 7 3 7X X C o r p o r a t e O p e r a t i o n s 5a 20 . 40 5 , 0 5 4 17 4 , 0 8 0 24 , 4 9 2 19 8 , 5 7 2 85 , 2 0 9 56 5 17 , 0 3 8 10 3 , 6 7 0 20 6 , 4 8 2 -- 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, 0 4 6 , 6 0 4 75 0 , 9 7 4 12 7 , 4 6 4 87 8 , 4 3 8 46 6 , 6 4 5 3, 4 3 3 97 , 6 0 0 60 0 , 4 8 8 1, 1 6 8 , 1 6 6 pe r a t i n g T a x e s : (6 ) 24 0 G e n e r a i T a x e s 23 . 0 0 23 0 S t a t e / L o c a l I n c . T a x ( C u r r e n t ) 24 . 0 0 0 22 0 F e d e r a l I n c o m e T a x ( C u r r e n t ) 25 . 95 , 7 3 4 42 , 3 2 1 5, 4 8 8 47 , 8 0 9 17 , 4 7 7 10 7 3,3 5 3 26 , 9 8 8 47 , 9 2 5 25 0 N e t D e f e r r e d I n c o m e T a x e s 26 . -3 9 , 3 4 8 (1 7 , 3 9 5 ) (2 , 2 5 6 ) -1 9 , 6 5 0 (7 , 1 8 3 ) (4 4 ) (1 , 3 7 8 ) (1 1 , 0 9 2 ) -1 9 , 6 9 8 21 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 . 56 , 3 8 6 24 , 9 2 6 3, 2 3 2 28 , 1 5 9 10 , 2 9 4 63 1, 9 7 5 15 , 8 9 6 28 , 2 2 7 Ne t O p e r a t i n g I n c o m e 29 . 60 4 , 1 5 2 1, 1 2 7 , 6 4 6 -1 0 5 , 6 7 0 1, 0 2 1 , 9 7 5 -1 3 2 , 8 6 5 3,2 1 1 -9 9 , 5 7 5 -1 8 8 , 5 9 5 .4 1 7 , 8 2 3 Pa g e 1 o f 8 UM M A R Y ( c o n t i n u e d ) ve r a g e R a t e B a s e )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. 10 , 2 9 7 , 6 7 9 3, 5 3 2 , 7 0 8 47 6 , 1 1 9 4, 0 0 8 , 8 2 7 2,3 0 6 , 9 3 6 19 , 6 4 3 48 8 , 7 0 9 3, 4 7 3 , 5 6 4 6, 2 8 8 , 8 5 2 )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 10 0 L e s s : A c c u m u l a t e d D e o r . ( - ) (5 c ) 3. -5 , 6 1 8 , 3 9 1 -2 , 2 0 4 , 0 5 3 -2 9 0 , 1 0 9 -2 , 4 9 4 , 1 6 2 -1 , 1 2 7 , 1 7 0 -1 2 , 3 9 6 -2 5 9 , 3 0 3 -1 , 7 2 5 , 3 6 0 -3 , 1 2 4 , 2 2 9 4x x - 3 6 x x A c c u m u l a t e d A m o r t . ( - ) (5 ) 4. -1 4 , 0 0 6 -4 , 8 0 4 -6 4 8 -5 , 4 5 2 -3 1 3 8 -2 7 -6 6 5 -4 7 2 4 -8 , 5 5 4 10 0 - 4 3 4 0 A c c u m . D e f e r r e d T a x ( - ) 5. -3 8 0 , 5 2 6 (1 3 0 , 5 4 3 ) (1 7 , 5 9 4 ) (1 4 8 , 1 3 7 ) (8 5 , 2 4 7 ) (7 2 6 ) (1 8 , 0 5 9 ) (1 2 8 , 3 5 7 ) -2 3 2 , 3 8 9 22 0 M a t e r i a l s a n d S u p p l i e s 6 21 8 , 8 7 4 57 , 7 6 8 1, 7 6 2 59 , 5 3 0 55 , 4 7 7 49 1 9, 4 1 7 93 , 9 5 9 15 9 , 3 4 4 )4 0 C u s t o m e r D e p o s i t s 7 (4 , 9 5 5 ) (1 , 7 0 0 ) (2 2 9 ) (1 , 9 2 9 ) (1 , 1 1 0 ) (9 ) (2 3 5 ) (1 , 6 7 2 ) -3 , 0 2 6 31 0 O t h e r L o n g T e r m L i a b i l i t i e s 8 0 0 0 0 0 0 0 0 0 -- E q u a l A c c e s s E q u i p m e n t (7 ) 9 0 0 0 Pa g e 2 0 1 8 -- O t h e r R a t e B a s e 10 24 3 , 6 4 3 10 2 , 8 9 3 7, 4 8 3 11 0 , 3 7 6 33 , 6 2 6 24 4 6,5 5 3 92 , 8 4 4 13 3 , 2 6 7 To t a l A v e r a g e R a t e B a s e 11 4, 7 4 2 , 3 1 8 1, 3 5 2 , 2 6 9 17 6 , 7 8 4 1, 5 2 9 , 0 5 3 1, 1 7 9 , 3 7 4 7, 2 2 0 22 6 , 4 1 7 1, 8 0 0 , 2 5 4 3, 2 1 3 , 2 6 5 LA N T I N S E R V I C E D E T A I L IX 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, 1 6 1 , 7 9 0 39 8 , 5 6 2 53 , 7 1 6 45 2 , 2 7 8 26 0 , 2 7 0 2, 2 1 6 55 , 1 3 6 39 1 , 8 9 0 70 9 , 5 1 2 2X X C e n t r a l O f 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 o c . ) 3. 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 - CA T 3 - L o c a l S w i t c h i n g 5. 1, 0 7 4 , 6 5 8 91 3 , 4 5 9 91 3 , 4 5 9 16 1 , 1 9 9 16 1 , 1 9 9 CA T 4 . 1 2 - E x c h . T r u n k ( J o i n t U s e ) 6. 18 0 , 5 6 6 - 18 0 , 5 6 6 18 0 , 5 6 6 CA T 4 . 1 2 - E x c h . T r u n k (O e d . U s e ) 7. 36 9 , 0 9 8 36 7 , 0 0 6 36 7 , 0 0 6 2, 0 9 2 2, 0 9 2 CA T 4 . 1 3 - S u b s c r . L i n e ( J o i n t U s e ) 8. 80 0 , 2 7 2 20 0 , 0 6 8 - 20 0 , 0 6 8 20 0 , 0 6 8 - 40 0 , 1 3 6 60 0 , 2 0 4 CA T 4 . 1 3 - S u b s c r . L i n e ( O e d . U s e ) 9. 0 CA T 4 . 2 3 - I X T r u n k ( J o i n t U s e ) 10 . 82 4 , 7 0 2 46 6 , 9 4 6 . 46 6 , 9 4 6 35 7 , 7 5 6 . - 35 7 , 7 5 6 CA T 4 . 2 3 - I X T r u n k C k l . ( O e d . U s e ) 11 . 9, 0 9 0 6, 9 2 6 6, 9 2 6 2, 1 6 4 2, 1 6 4 CA T 4 . 3 - H o s V R e m o t e T r u n k C k l . 12 . 0 . . . Ot h e r Ca E 13 . 0 - To t a l C O E 14 . 3, 2 5 8 , 3 8 6 1, 5 8 0 , 4 7 3 37 3 , 9 3 2 1, 9 5 4 , 4 0 5 55 7 , 8 2 4 4, 2 5 6 18 0 , 5 6 6 56 1 , 3 3 5 1, 3 0 3 , 9 8 1 3X X I n f o r m a t i o n O r i g J 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 Ot h 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 4X 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 2 0 , 1 8 6 1, 2 5 5 , 0 4 6 1, 2 5 5 , 0 4 6 1, 2 5 5 , 0 4 7 2, 5 1 0 , 0 9 3 3, 7 6 5 , 1 4 0 CA T 1 . 1 , 2 - S u b s c r i b e r L i n e ( O e d . ) 19 . 0 . - - 0 CA T 2 - E x c h . T r u n k ( J o i n t U s e ) 20 . 25 1 , 5 6 5 - 25 1 , 5 6 5 25 1 , 5 6 5 CA T 2 - E x c h . T r u n k ( O e d . U s e ) 21 . 53 , 0 4 8 39 , 9 3 5 39 , 9 3 5 13 , 1 1 3 13 , 1 1 3 CA T 3 . I X T r u n k ( J o i n t U s e ) 22 . 51 5 , 1 9 6 28 8 , 2 0 6 - 28 8 , 2 0 6 22 6 , 9 9 0 . 22 6 , 9 9 0 CA T 3 - I X T r u n k ( O e d . U s e ) 23 . 7, 1 3 2 7, 1 3 2 7, 1 3 2 . 0 CA T 4 - H o s V R e m o t e T r u n k 24 . 0 - . . 0 Ot h e r C & W F 25 . 0 0 To t a l C & W F 26 . 5, 8 4 7 , 1 2 7 1, 5 4 3 , 2 5 2 47 , 0 6 7 1, 5 9 0 , 3 1 9 1, 4 8 2 , 0 3 7 13 , 1 1 3 25 1 , 5 6 5 2, 5 1 0 , 0 9 3 4, 2 5 6 , 8 0 8 5X 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 . 30 , 3 7 6 10 , 4 2 1 1, 4 0 4 11 , 8 2 5 6, 8 0 5 58 1,4 4 2 10 , 2 4 6 18 , 5 5 1 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 . 30 , 3 7 6 10 , 4 2 1 1, 4 0 4 11 , 8 2 5 6, 8 0 5 58 1, 4 4 2 10 , 2 4 6 18 , 5 5 1 Pa g e 3 0 1 8 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 . 10 , 2 9 7 , 6 7 9 3, 5 3 2 , 7 0 8 47 6 , 1 1 9 4, 0 0 8 , 8 2 7 2, 3 0 6 , 9 3 6 19 , 6 4 3 48 8 , 7 0 9 3, 4 7 3 , 5 6 4 6, 2 8 8 , 8 5 2 ie p r e c i a t i o n & A m o r t i z a t i o n cc 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 L1 X G e n e r a l S u p p o r t F a c i l i t i e s 1. -6 0 3 . 6 2 2 (2 0 7 , 0 7 8 ) (2 7 , 9 0 9 ) (2 3 4 . 9 8 7 ) (1 3 5 , 2 2 6 ) (1 , 1 5 1 ) (2 8 , 6 4 7 ) (2 0 3 , 6 1 1 ) -3 6 8 , 6 3 5 12 X C e n t r a l O l l i c e S w i t c h i n g 2. -1 , 0 7 4 . 6 5 9 (9 1 3 , 4 6 0 ) (9 1 3 , 4 6 0 ) (1 6 1 , 1 9 9 ) -1 6 1 , 1 9 9 12 X O p e r a t o r S y s t e m s 3. 0 0 12 X C e n t r a l O l l i c e T r a n s m i s s i o n 4. -1 , 3 5 6 . 2 5 2 (4 0 3 , 6 7 6 ) (2 3 8 , 8 0 5 ) (6 4 2 , 4 8 1 ) (3 3 9 , 0 7 2 ) (2 , 5 7 4 ) (1 1 7 , 3 2 7 ) (2 5 4 , 7 9 8 ) -7 1 3 , 7 7 1 13 X I n l o r m a t i o n O r i g . / T e r m . E q u i p . 5. 0 0 14 X C a b l e & W i r e F a c i l i t i e s 6. -2 . 5 8 3 , 8 5 8 (6 7 9 , 8 3 9 ) (2 3 , 3 9 5 ) (7 0 3 , 2 3 4 ) (6 5 2 , 8 7 2 ) (8 , 6 7 1 ) (1 1 3 , 3 2 9 ) (1 , 1 0 5 , 7 5 2 ) -1 . 8 8 0 , 6 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. 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"".. ~ Oloc¡, .!CD .52CO c "' (/c:oc:~ 8.:!! ~lC ~ cw £.~ ~Cl",è:Ol...5CfQ)§CD1aQl(Jo.c¡8eÕüÕc.c(f!Q)- ~ ~.~ ~ i-~CD C"c~.c W :J --Õ: : : : 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, 0 4 6 , 6 0 4 75 0 , 9 7 4 12 7 , 4 6 4 87 8 , 4 3 8 46 6 , 6 4 5 3, 4 3 3 97 , 6 0 0 60 0 , 4 8 8 1, 1 6 8 , 1 6 6 IP E R A T I N G T A X E S D E T A I L 24 0 G e n e r a l T a x e s 24 0 Pr o p e r t 1. 99 , 5 0 5 34 , 1 3 6 4,6 0 1 38 , 7 3 7 22 , 2 9 1 19 0 4, 7 2 2 33 , 5 6 5 60 , 7 6 8 24 0 Gr o s s R e c e i p t s 2. 0 0 0 24 0 PU C F e e 3. 0 0 0 24 0 Fr a n c h i s e F e e s 4. 0 0 0 24 0 Ot h e r 5. 0 0 0 To t a l G e n e r a l T a x e s 6. 99 , 5 0 5 34 , 1 3 6 4, 6 0 1 38 , 7 3 7 22 , 2 9 1 19 0 4, 7 2 2 33 , 5 6 5 60 , 7 6 8 2X 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 l o r e S I T & F I T (1 3 ) 7. 56 1 , 0 3 3 1, 1 1 8 , 4 3 6 -1 0 7 , 0 3 9 1, 0 1 1 , 3 9 7 -1 4 4 , 8 6 2 3, 0 8 4 -1 0 2 , 3 2 2 -2 0 6 , 2 6 4 -4 5 0 , 3 6 4 Le s s F i x e d C h a r g e s ( - ) 8. 99 , 5 6 0 27 , 7 6 7 3, 7 6 2 31 , 5 2 9 25 , 3 0 2 15 5 4, 8 6 3 37 , 7 1 1 68 , 0 3 1 Su b t o t a l ( l i n e s 7 - 8 ) (1 4 ) 9. 46 1 , 4 7 3 1, 0 9 0 , 6 6 9 -1 1 0 , 8 0 1 97 9 , 8 6 8 -1 7 0 , 1 6 4 2, 9 2 9 -1 0 7 , 1 8 5 -2 4 3 , 9 7 5 -5 1 8 , 3 9 5 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 . 46 1 , 4 7 3 1, 0 9 0 , 6 6 9 -1 1 0 , 8 0 1 97 9 , 8 6 8 -1 7 0 , 1 6 4 2, 9 2 9 .2 4 3 , 9 7 5 .5 1 8 , 3 9 5 72 3 0 S I T - C u r r e n t ( a t 4 % ) (1 6 ) 12 . 31 , 9 8 0 43 , 6 2 7 -7 , 6 7 9 67 , 9 0 5 -1 1 , 7 9 2 20 3 0 -1 6 , 9 0 7 -3 5 , 9 2 5 Oth e r F I T B a s e A d d / O e d . ( + - ) (1 7 ) 13 . 0 0 0 FI T Ta x a b l e I n c . ( l i n e s 9 - 1 2 + - 1 3 ) 14 . 42 9 , 4 9 3 1, 0 4 7 , 0 4 2 '1 0 3 , 1 2 2 91 1 , 9 6 3 -1 5 8 , 3 7 2 2, 7 2 6 -2 2 7 , 0 6 8 -3 8 2 , 7 1 3 Gr o s s F I T a t 2 5 . 6 2 % 15 . 13 5 , 5 9 4 26 8 , 2 5 2 -2 6 , 4 2 0 23 3 , 6 4 5 -4 0 , 5 7 5 69 8 0 -5 8 , 1 7 5 -9 8 , 0 5 1 72 1 0 P C l a i m e d I T C ( - ) 16 . 0 0 0 Pa g e 7 0 f 8 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 . 13 5 , 5 9 4 26 8 , 2 5 2 .2 6 , 4 2 0 23 3 , 6 4 5 .4 0 , 5 7 5 69 8 0 -5 8 , 1 7 5 -9 8 , 0 5 1 )0 7 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 7 OM P A N Y N A M E : R u r a l T e l e p h o n e C o m p a n y 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 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 ) ep a ra t i o n P a r a m e t e r s (1 9 ) la n t ( 2 0 0 0 F r o z e n F a c t o r s ) SL U M i n u t e s 0 1 U s e ( M O U ) 1. 5, 5 8 6 , 6 8 6 1, 8 5 1 , 4 0 7 1, 2 4 1 , 4 5 7 1, 4 8 3 , 7 1 2 1, 0 1 0 , 1 1 0 SL U F a c t o r 2. 1. 2 2 6 0 6 0 0. 4 5 8 6 5 0. 3 4 9 8 5 0. 2 2 6 0 6 0.1 9 1 5 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. 1. 0 0 0 0 0 0 0. 3 3 1 3 9 6 0. 2 2 2 2 1 7 0. 2 6 5 5 8 0. 1 8 0 8 0 7 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. 5, 5 8 6 , 6 8 6 1,8 5 1 , 4 0 7 12 4 1 4 5 7 14 8 3 7 1 2 10 1 0 1 1 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 V 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 e 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 ) .1 4 . 0 iX C o n v e r s a t i o n M O U 15 . 2, 7 1 6 , 4 2 6 1,6 2 6 , 0 7 0 1, 0 9 0 , 3 5 6 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 0 0 th e r P a r a m e t e r s Ac c e s s L i n e s 17 . 74 5 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 . 58 2 , 5 0 7 ro 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 . 34 6 , 3 9 3 87 , 9 1 3 34 , 3 5 1 22 4 , 1 2 9 -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 . 32 7 , 6 7 9 10 1 , 0 6 8 11 2 , 9 1 1 11 3 , 7 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 . 30 0 10 0 20 0 er 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 . 8, 1 9 9 1, 7 1 4 35 1 6, 1 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 . 0 - - iI i n g I n q u i r y C o n t a c t s -B i l l i n g I n q u i r y - E n d U s e r (3 0 a ) 24 . 32 7 , 6 7 9 10 1 , 0 6 8 11 2 , 9 1 1 11 3 , 7 0 0 -B i l l i n g I n q u i r y - C X R (3 0 b ) 25 . 30 0 10 0 20 0 SP + R C T o l l M e s s a g e s (3 1 ) 26 . 16 6 , 5 5 2 29 , 9 4 7 13 6 , 6 0 5 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 3 0. 3 8 9 6 0 2 0. 2 2 5 1 8 4 0.0 4 5 0 2 7 0. 2 7 3 9 7 1 -P L S & S p e c i a l A c c e s s 29 . 0. Q 0. 0 6 4 7 2 3 0. 0 0 1 4 9 4 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 i c e ) 31 . 2, 0 4 5 , 5 6 1 1, 2 5 7 , 0 0 3 78 8 , 5 5 8 Pa g e 8 0 1 8 51 6 / 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r a : 4 7 2 2 3 3 RE V E N U E R E Q U I R E M E N T S U M M A R Y A- 1 Stu d y Y e a r : 2 0 0 7 IN T E R S T A T E JU R I S So e c i a l A c c s s TO T A L Ch a n T e r m CM - T e r m CM - F a c l l LI N E DE S C R I P T I O N SO U R C E (a l Ib l le I d 1 N e t T e l e c o m P l a n t A- 2 , L n 4 4 1,5 2 9 , 0 5 4 19 0 , 7 1 7 3,1 2 7 4, 4 6 8 62 , 7 5 0 39 1 , 3 8 0 87 6 , 6 1 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 1,5 2 9 , 0 5 4 19 0 , 7 1 7 3,1 2 7 4, 4 6 8 62 , 7 5 0 39 1 , 3 8 0 87 6 , 6 1 2 4 R a t e o f R e t u r n Re c r d s 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % I 11 . 2 5 0 0 % 11 . 2 5 0 0 % I 11 . 2 5 0 0 % 5 R E T U R N O N R A T E B A S E Ln 3 " 4 17 2 , 0 1 9 21 , 4 5 6 35 2 50 3 7, 0 5 9 44 , 0 3 0 98 , 6 1 9 6 R e t u r n A d j u s t m e n t # 1 Re c o r d s 7 N E T R E T U R N Ln 5 - 6 17 2 , 0 1 9 21 , 4 5 6 35 2 50 3 7, 0 5 9 44 , 0 3 0 98 , 6 1 9 8 F i x e d C h a r g e s A-1 0 , L n 2 5 31 , 5 3 0 3,6 2 0 62 63 8,1 2 5 6, 7 1 7 12 , 9 4 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 A~ 1 0 , L n 4 7 10 C a p i t a l i z e d P a y r o l l T a x s A-1 0 , L n 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 A-1 0 , L n 5 3 12 F I T A l l o w a n c e s f O i s a l l o w a n c e s A-1 4 , L n 1 8 13 I n c A d j A l l o c o n 2 0 0 1 A- 1 0 , L n 5 9 14 I n c A d j A l l o c o n B i g 3 E x p A~ 1 0 , L n 6 0 15 T o t a l M i s e I n c A d j u s t m e n t A- 1 0 , L n 6 1 31 , 5 3 0 3,6 2 0 62 63 8,1 2 5 6,7 1 7 12 , 9 4 3 16 A F T E R T A X I N C O M E No t e 1 14 0 , 4 8 9 17 , 8 3 6 29 0 43 9 (1 , 0 6 6 ) 37 , 3 1 3 85 , 6 7 6 17 S t a t e I n c o m e T a x Ln 5 9 l e s s I T C 7,7 0 3 97 8 16 24 (5 8 ) 2,0 4 6 4,6 9 7 18 s t t e I T C A m o r t i z a t i o n A- 1 0 , L n 4 5 19 N e t F e d e r a l I n c o m e T a x Ln 5 0 47 , 8 0 9 6, 0 7 0 99 14 9 (3 6 3 ) 12 , 6 9 8 29 , 1 5 6 20 F e d e r a l I T C A m o r t i z a t i o n A- 1 0 , L n 4 4 21 O p e r a t i n g Ex p e n s e s & T a x e s A- 3 , L n 2 4 92 1 , 3 5 1 16 8 , 9 1 7 3,0 1 0 1,3 2 1 15 7 , 3 3 8 59 25 7 , 8 1 8 32 0 , 4 2 9 I 12 , 4 0 9 2, 0 5 1 22 U n c o U e c t i b l e s A- 1 0 , L n 5 7 23 O t h e r A d j u s t m e n t s ( N e t R R ) Re c o r d s 24 N E T R E E N U E R E Q U I R E M E N T ln 7 + 1 9 . . 2 3 - 2 4 1,1 4 8 , 8 8 ~ I 19 5 , 4 2 1 3,4 7 7 "9 9 ; I 18 3 , 9 7 ~ I 5~ I :1 31 6 , 5 9 2 :1 45 2 , 9 0 0 I 12 , 4 0 9 2,0 5 1 25 G r o s s R e c e i p t s T a x No t e 2 26 7 3 4 0 A t w F d s U s e d O u r C o n s t r A- 1 0 , L n 1 5 1,6 0 5 18 4 3 41 4 34 2 85 9 27 S U B T O T A L R E V E N U E R E Q U I R E M E N T Ln 2 4 + 2 5 - 2 6 1,1 4 7 , 2 7 5 19 5 , 2 3 6 3,4 7 4 1,9 9 3 16 3 , 5 6 3 59 31 6 , 2 4 9 28 L o c a l S w i t c h i n g S u p p o r t LS S A l g o r i t h m 14 2 , 8 6 1 29 6 5 4 0 A c c e s s E x p e n s e ~ F e d e r a l S u p p o r t A- 1 2 , L n 2 2 30 A d j u s t e d R e v e n u e R e q u i r e m e n t X L L S S & 6 5 4 0 Ln 2 7 - 2 8 - 2 9 1,0 0 4 , 4 1 4 19 5 , 2 3 6 3,4 7 4 31 6 , 2 4 9 31 T r a n s f e r 3 0 % o f L o c a l S w R e v R e q t o C L Ln 3 0 e " 3 0 % 32 I n t e r s t a t e T I C R e v e n u e s Re c o r d s (2 2 , 5 9 5 ) (2 2 . 5 9 5 ) 33 R e v i s e d R e v R e q p r i o r t o T I C R e a l l o c a t i o n Ln 3 0 + 3 1 + 3 2 98 7 . 3 5 9 19 5 . 2 3 6 3,4 7 4 1,9 9 3 59 29 3 , 6 5 4 34 D i s t r i b u t i o n Ln 3 3 1 3 3 a 10 0 . 0 0 0 0 % 20 . 1 8 2 4 % 0.3 5 9 1 % 0.2 0 6 1 % 0.0 0 6 1 % 30 . 3 5 6 3 % 35 I n t e r s t a t e T I C R e a l l o c a t i o n Ln 3 2 a " 3 4 22 , 5 9 5 4,5 6 0 81 47 33 8 1 6,8 5 9 36 T O T A L R E V E N U E R E Q U I R E M E N T Ln 2 7 + 3 1 - 3 2 + 3 5 1,1 4 7 , 2 7 5 19 9 . 7 9 6 35 5 5 20 4 0 15 7 , 6 9 1 60 30 0 , 5 1 4 46 9 , 1 6 0 12 , 4 0 9 2.0 5 1 I IN C O M E T A X E S I 37 N e t R e t u r n Ln 7 17 2 , 0 1 9 21 , 4 5 6 35 2 50 3 7,0 5 9 44 , 0 3 0 98 , 6 1 9 38 F i x e d C h a r g e s Ln 8 31 , 5 3 0 3,6 2 0 62 63 8, 1 2 5 6,7 1 7 12 , 9 4 3 39 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 40 C a p i t a l i z e d P a y r o l l T a x e s Ln 1 0 41 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 42 F I T A l l o w a n c e D i s a l l o w a n c e s Ln 1 2 43 In c A d j A l l o c o n 2 0 0 1 Ln 1 3 44 In c A d j A l l o c o n B i g 3 E x p Ln 1 4 45 F e d e r a l I T C A m o r t i z a t i o n A- 1 0 , L n 4 46 To t a l In c o m e A d j u s t m e n t s ln 3 8 + 4 2 . . 4 4 31 , 5 3 0 3,6 2 0 62 63 8, 1 2 5 6,7 1 7 12 , 9 4 3 47 F e d e r a l T a x a b l e I n c o m e Ln 3 7 4 6 G r o s s U p 18 8 , 2 9 8 23 , 9 0 6 38 9 58 9 (1 . 4 2 8 ) 50 , 0 1 1 11 4 . 8 3 2 48 F e d e r a l I n c o m e T a x 25 . 3 9 0 0 % 47 , 8 0 9 6,0 7 0 99 14 9 (3 8 3 ) 12 , 6 9 8 29 , 1 5 6 49 F e d e r a l S u r - T a x A l l o c t i o n Re c o r d s 50 N e t F e d e r a l In c o m e T a x Ln 4 8 4 9 47 , 8 0 9 6,0 0 99 14 9 (3 8 3 ) 12 , 6 9 8 29 , 1 5 6 51 N e t R e t u r n Ln 3 7 17 2 , 0 1 9 21 , 4 5 6 35 2 50 3 7.0 5 9 44 , 0 3 0 98 , 6 1 9 52 F i x e d C h a r g e s Ln 3 8 31 , 5 3 0 3,6 2 0 82 63 8, 1 2 5 6, 7 1 7 12 , 9 4 3 53 O t h e r S I T A d j u s t m e n t s 54 F e d e r a l I n c o m e T a x Ln 4 8 47 , 8 0 9 6,0 7 0 99 14 9 (3 6 3 ) 12 , 6 9 8 29 , 1 5 6 55 S t a t e T a x b l e I n c o m e Ln 5 1 - 5 4 G r o s s U p 18 8 , 2 9 8 24 , 8 8 4 40 5 81 3 (1 . 4 8 7 ) 52 . 0 5 7 11 9 , 5 2 9 56 S t a t e I n c o m e T a x 3. 9 3 0 0 % 7, 7 0 3 97 8 16 24 (5 8 ) 2. 0 4 8 4,6 9 7 57 S t a t e S u r - T a x A l l o c a t i o n Re c o r d s 58 S t a t e l T C A m o r t i z a t i o n A- 1 0 , L n 4 5 59 N e t S t a t e I n c o m e T a x Ln 5 6 - 5 7 I 7, 7 0 3 1 97 8 16 24 I (5 8 ) 1 -I -I 2. 0 4 8 -I 4,6 9 7 No t e 1 : L n 7 + 1 2 . . 1 6 - 8 . . 1 1 No t e 2 : B a s e d o n t h e s e S t a t u t o i y R a t e s : Mo s s A d a m s , L L P Pro p r i e t a r y I n f o r m a t i o n 1 of 26 5/ 6 1 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 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 A- 2 Pa g e 1 o f 2 IN T E R S T A T E JU R I S S e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s n r t Ca r r i e r C o m m o n L i n e B& C In t e r - T~ ; t L Ch a ~ b ~ e r m CM ; ~ r m CM ; : , ' C i i SW ¡ : ~ i n g Dlr A s s t su r ~ : ~ r g e A~ ~ S S Tr a n S ~ i S S i o n Ta n d ~ ~ S w p~ ~ B~ P R~ ~ r d pr ~ ~ ~ s s ex c ~ ~ n g e LI N E DE S C R I P T I O N SO U R C E 1f 1 2 1 1 0 L a n d & S u p p o r t A s s e t s A- 4 , L n 1 2 45 2 , 2 7 8 51 , 9 2 2 88 4 91 0 11 6 , 5 5 0 96 , 3 5 1 18 5 , 6 6 1 22 2 1 0 C O E - S w i t c h l n g A- 5 , L n 2 8 91 3 , 4 5 9 91 3 , 4 5 9 3 2 2 2 0 C O E ~ O p e r a t o r A~ 5 , L n 1 5 4 2 2 3 0 C O E - T r a n s m i s s i o n A- S , L n ? 1 1,0 4 0 , 9 4 6 36 7 , 0 0 6 6,9 2 6 46 6 , 9 4 6 20 0 , 0 6 8 5 2 3 1 0 I n f o O r i g l T e r m E q u i p A- 6 , L n 1 4 62 4 1 0 C & W F A.7 , L n 3 9 1,5 9 0 , 3 1 9 39 , 9 3 5 7,1 3 2 28 8 , 2 0 6 1,2 5 5 , 0 4 6 7 To t a l C a E , l O T . C & W F Ln 2 . . 6 3, 5 4 4 , 7 2 4 40 6 , 9 4 1 6,9 2 6 7,1 3 2 91 3 , 4 5 9 75 5 , 1 5 3 1,4 5 5 , 1 1 4 8 Dls t r l b u t l o n o f L i n e 7 Ln 7 n a 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0. 1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 9 E q u a l A c c s s - I n v e s t m e n t A- 9 , L n 2 0 t 10 2 6 8 0 T a n g i b l e A s s e t s A- 8 , L n 3 0 11 , 8 2 5 1, 3 5 8 23 24 3,0 4 7 2,5 1 9 4,8 5 4 11 T E L E C O M P L T I N S V C - E X C L 2 6 9 0 Ln 1 + 7 + 9 + 1 0 4,0 0 8 , 8 2 8 46 0 , 2 2 1 7,8 3 2 8,0 6 5 1,0 3 3 , 0 5 7 85 4 , 0 2 3 1, 6 4 5 , 6 3 0 12 D i s t r b u t i o n o f L i n e 1 1 Ln 1 1 1 1 1 a 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 13 2 6 9 0 I n t a n g i b l e A s s e t s A- 8 , L n 3 4 14 2 0 0 1 T E L E C O M P L A N T I N S V C Ln 1 1 + 1 3 4,0 0 8 , 8 2 8 46 0 , 2 2 1 7,8 3 2 8, 0 6 5 1,0 3 3 , 0 5 7 85 4 , 0 2 3 1,6 4 5 , 6 3 0 15 D i s t r i b u t i o n o f L i n e 1 4 Ln 1 4 1 1 4 a 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 16 2 0 0 2 P r o p H i d F u t T e l e c o m U s e A-9 , L n 5 77 9 89 2 2 20 1 16 6 32 0 17 2 0 0 3 P l a n t U n d e r C a n s t A-9 , L n 9 29 , 3 9 2 3,3 7 4 57 59 7,5 7 4 6, 2 6 1 12 , 0 6 5 18 2 0 0 5 T e l e c o m P l a n t Ad j u s t m e n t A-9 , L n 1 3 19 T O T A L T E L E C O M P L A N T Ln 1 4 + 1 6 . . 1 8 4,0 3 8 , 9 9 8 46 3 , 6 8 4 7, 8 9 1 8,1 2 6 1,0 4 0 , 8 3 1 86 0 , 4 5 1 1,6 5 8 , 0 1 5 20 1 2 2 0 M a t e r i a l s a n d S u p p l i e s A-9 , L n 1 8 59 , 5 2 9 6,8 3 4 11 6 12 0 15 , 3 4 0 12 , 6 8 2 24 , 4 3 7 21 1 5 0 0 O t h e r J u r i s A s t s - N e t A- 1 5 , L n 1 1 22 3 1 0 0 A c c u m u l a t e d D e p r e c i a t i o n A- 1 5 , L n 1 8 2,4 9 4 , 1 6 2 27 1 , 1 5 5 4,7 3 4 3,6 2 6 97 4 , 0 1 4 46 5 , 7 0 6 77 4 , 9 2 4 23 E q u a l A c c e s s - A c c u m D e p r e c i a t i o n A- 9 , L n 2 2 24 3 2 0 0 A c c D e p - H l d f o r F u t U s e A- 1 5 , L n 2 0 25 3 4 0 0 A c c u m A m o r t . T a n g i b l e A- 1 5 , L n 2 4 5,4 5 2 62 6 11 11 1,4 0 5 1, 1 6 1 2, 2 3 8 26 3 5 0 0 A c c u m A m o r t - I n t a n g I b l e A- 1 5 , L n 2 5 27 3 6 0 0 A c c u m A m o r t - D t h e r A- 1 5 , L n 2 6 28 4 1 0 0 N e t Cu r De f O p In c Ta x e s A- 1 5 , L n 4 7 29 4 3 4 0 N o n c u r D e f O p e r I n c T a x A- 1 5 , L n 5 8 14 8 , 1 3 6 17 , 0 0 6 26 9 29 8 38 , 1 7 4 31 , 5 5 8 60 , 8 1 0 30 E q u a l A c c e s s - D e f e r r e d O p e r I n c T a x e s A- 9 , L n 2 3 31 4 3 6 0 O t h e r D e f e r r e d C r e d i t s N e t A- 1 5 , L n 5 9 32 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 - N e t A- 1 5 , L n 6 1 33 N E T T E L E C O M P L A N T Ln 1 9 + 2 0 - 2 1 . . 3 2 1,4 5 0 , 7 7 8 18 1 , 7 3 1 2,9 7 4 4,3 1 0 42 , 5 7 9 37 4 , 7 0 5 84 , 4 7 9 34 D i s t r i b u t i o n o f L i n e 3 3 Ln 3 3 1 3 3 a 10 0 . 0 0 0 0 % 12 . 5 2 6 4 % 0. 2 0 5 0 % 0.2 9 7 1 % 2.9 3 4 9 % 25 . 8 2 7 9 % 58 . 2 0 8 7 % 35 1 4 0 2 R u r a l T e l B a n k S t o c k A- 9 , l n 1 5 36 C a s h W o r k i n g C a p i t a l A.9 , L n 1 9 80 , 2 0 5 9, 2 0 8 15 7 16 1 20 , 6 6 9 17 , 0 8 7 32 , 9 2 4 37 E q u a l A c c s s - U n a m o r t i z e d E x p e n s e s A- 9 , L n 2 4 38 I n v e s t A l I o w l D i s a f l o w a n c e s A- 9 , L n 2 9 39 A c u m D e p r / A m o r t A l l o w l D i s a J l o w A- 1 5 , L n 6 4 40 4 0 4 0 C u s t o m e r D e p o s i t s A- 1 5 , L n 2 9 1,9 2 9 22 1 4 4 49 7 41 1 79 2 41 4 3 1 0 o t h e r L o n g - T e r m l i a b i l i t i e s A- 1 5 , L 1 l 9 42 O t h e r T e l e c o m P I A d j u s t Re c o r d s 43 N E T T E L E C O M P L A N T A N D Ln 3 3 + 3 5 . . 3 9 + 4 2 44 OT H E R R A T E B A S E I T E M S -4 0 . . 4 1 1,5 2 9 , 0 5 4 19 0 , 7 1 7 3,1 2 7 4, 4 6 8 62 , 7 5 0 39 1 , 3 8 0 87 6 , 6 1 2 45 Di s t r i b u t i o n o f L i n e 4 4 ln 4 4 / 4 4 a 10 0 . 0 0 0 0 % 12 . 4 7 2 9 % 0. 2 0 4 5 % 0.2 9 2 2 % 4.1 0 3 9 % 25 . 5 9 6 2 % 57 . 3 3 0 3 % 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 2 of 26 Ru r a l T e l e p h o n e C o m p a n y ~ I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 LI N E DE S C R I P T I O N 46 2 0 0 1 T E L E C O M P L A N T I N S V C 47 E q u a l A c s s A d j u s t m e n t 48 2 0 0 1 T E L E C O M P L A N T I N S V C ( E A L S ) 49 D i s t r i b u t i o n o f U n e 4 8 50 G S F , C O E , I O T , C & W F , G r o s s E q A c 51 E q u a l A c c e s s A d j u s t m e n t 52 G S F , C O E , I O T , C & W F , E q A c ( L S ) 53 D i s t r i b u t i o n o f U n e 5 2 54 G S F , C O E , I O T , C & W F , G r o s s E q A c s 55 D i s t r i b u t i o n o f U n e 5 4 56 C O E , I O T , C & W F , G r o s s E q A c s 57 E q u a l A c c s s I n v e s t m e n t 58 C O E , I O T , C & W F , E q A c s 59 D i s t r i b u t i o n o f U n e 5 8 60 G S F , C O E , I O T , C & W F , E q A c ( L S ) 61 ( T r a n s , S w i t c h , C C L o n l y ) 62 D i s t r i b u t i o n o f U n e 6 1 63 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 64 ( S p e c i a l A c c e s s o n l y ) 65 D i s t r i b u t i o n o f U n e 6 4 66 C O E , I O T , C & W F 67 x l C C L , B & C , I X 68 D i s t r i b u t i o n o f U n e 6 7 69 C O E S w i t c h i n g I n v e s t m e n t 70 E q u a l A c c e s s I n v e s t m e n t 71 C O E S w i t c h i n g , E q u a l A c c s s I n v e s t m e n t 72 D i s t r i b u t i o n o f L i n e 7 1 73 C & W F C a t 1 . 3 74 D i r e c t A s s i g n - M S G ( 1 . 3 ) 75 C O E , I O T , C & W F x f C a t 1 . 3 76 D i s t r i b u t i o n o f U o e 7 5 5/ 6 1 0 0 9 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 A-2 Pa g e 2 o f 2 ~ Lo 1 4 4,0 0 8 , 8 2 8 No t e 1 Lo 4 6 + 4 7 4,0 0 8 , 8 2 8 Ln 4 8 / 4 8 a 10 0 . 0 0 0 0 % Ln 1 + 7 + A - 9 L n 2 9 3, 9 9 7 , 0 0 3 No t e 1 Lo 5 0 + 5 1 3,9 9 7 , 0 0 3 Lo 5 2 / 5 2 a 10 0 . 0 0 0 0 % Lo 1 + 7 + A - 9 L o 2 9 3,9 9 7 , 0 0 3 Ln 5 4 / 5 4 a 10 0 . 0 0 0 0 % A-2 , L n 7 3,5 4 4 , 7 2 4 A-2 , L n 9 Ln 5 6 + 5 7 3,5 4 4 , 7 2 4 Ln 5 8 / 5 8 a 10 0 . 0 0 0 0 % Ln 5 2 3,5 2 2 , 2 8 9 Ln 6 1 / 6 1 a 10 0 . 0 0 0 0 % Ln 5 2 47 4 , 7 1 4 Ln 6 4 / 6 4 a 10 0 . 0 0 0 % Ln 7 2,0 8 9 , 6 1 0 Ln 6 7 / 6 7 a 10 0 . 0 0 0 0 % A- 5 , L n 2 8 91 3 , 4 5 9 A- 9 , L n 2 1 Ln 6 9 + 7 0 91 3 , 4 5 9 Ln 7 1 1 7 1 a 10 0 . 0 0 0 0 % A- 7 , L n 6 1,2 5 5 , 0 4 6 A~ 7 , L n 7 Ln 7 - 7 3 . . 7 4 2, 2 8 9 , 6 7 8 Ln 7 5 1 7 5 a 10 0 . 0 0 0 0 % B& C Re c o m 46 0 , 2 2 1 7,8 3 2 8,0 6 5 1,0 3 3 , 0 5 7 85 4 , 0 2 3 46 0 , 2 2 1 7,8 3 2 8,0 6 5 1,0 3 3 , 0 5 7 85 4 , 0 2 3 11 . 4 8 0 2 % 0. 1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 45 8 , 8 6 3 7,8 0 9 8,0 4 1 1,0 3 0 , 0 0 9 85 1 , 5 0 4 45 8 , 8 6 3 7,8 0 9 8,0 4 1 1,0 3 0 , 0 0 9 85 1 , 5 0 4 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 45 8 , 8 6 3 7,8 0 9 8,0 4 1 1,0 3 0 , 0 0 9 85 1 , 5 0 4 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 40 6 , 9 4 1 6,9 2 6 7,1 3 2 91 3 , 4 5 9 75 5 , 1 5 3 .. . . - . . " , . ~ 40 6 , 9 4 1 6,9 2 6 7, 1 3 2 91 3 , 4 5 9 75 5 , 1 5 3 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 1,6 4 5 , 6 3 0 1,6 4 5 , 6 3 0 41 . 0 5 0 1 % 1, 6 4 0 , 7 7 5 1, 6 4 0 , 7 7 5 41 . 0 5 0 1 % 1, 6 4 0 , 7 7 5 41 . 0 5 0 1 % 1,4 5 5 , 1 1 4 1,4 5 5 , 1 1 4 41 . 0 5 0 1 % 45 8 , 8 6 3 7,8 0 9 96 . 6 6 1 0 % 1.6 4 5 0 % 1- 40 6 , 9 4 1 6, 9 2 6 7, 1 3 2 9 1 3 , 4 5 9 19 . 4 7 4 5 % 0.3 3 1 4 % 0. 3 4 1 3 % 4 3 . 7 1 4 3 % 91 3 , 4 5 9 No t e 1: Eq u a l A c c e s s t r a n s f r r e d t o L o c a l S w i t c h i n g f o r d i s t r i b u t i o n 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 3 of 26 51 6 / 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 SE P A R A T E D E X P E N S E S U M M A R Y A-3 IN T E R S T A T E JU R I S So e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tra n s o o r t Ca r r i e r C o m m o n U n e B& C In t e r - TO T A L Ch a n T e r m eM - T e r m eM - F a c l l Sw i t c h I n g Di r A s s t su r ~ ~ ~ r g e Ac c e s s Tr a n s m i s s i o n Ta n d e m S w Pa y BF P Re c o d Pr o c e s s ex c h a n g e LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (e ) (d ) (e ) (0 (h ) (I) (j (k ) (I ) (m ) (0 ) (0 ) . 1 P i t Sp e c Ex p A c c t s 6 1 1 0 , 6 1 2 0 2 62 1 0 , 6 2 2 0 , 6 2 3 0 , 6 3 1 0 , 6 4 1 0 A- 1 1 , L n 3 2 39 9 , 3 6 9 81 , 5 1 4 1, 4 9 1 44 7 75 , 5 6 1 11 8 , 5 9 6 12 1 , 7 6 0 3 P I N o n s p e c A c c o u n t 6 5 1 0 , 6 5 3 0 , 6 5 4 0 A- 1 2 , L n 2 4 44 , 7 1 7 5,1 3 4 87 90 11 , 5 2 3 9,5 2 6 18 , 3 5 6 4 C u s t O p e r A c c t s 6 6 1 0 , 6 6 2 0 A- 1 3 , L n 5 5 30 , 2 2 8 1, 9 4 2 33 34 5,6 2 9 41 4, 6 5 4 7,7 0 2 8, 7 4 7 1.4 4 6 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 47 4 , 3 1 4 88 , 5 9 0 1,6 1 1 57 1 92 , 7 1 4 41 13 2 , 7 7 5 14 7 , 8 1 8 8, 7 4 7 1,4 4 6 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 % 18 . 6 7 7 5 % 0. 3 3 9 7 % 0.1 2 0 4 % 19 . 5 4 6 9 % 0.0 0 8 7 % 27 . 9 9 3 2 % 31 . 1 6 4 6 % 1. 8 4 2 % 0.3 0 4 8 % 7 P i t Sp e c Ex p A c c s x l 6 1 1 0 , 61 2 0 A- 1 1 , L n 3 1 31 6 , 5 3 4 72 , 0 0 4 1,3 2 9 28 0 54 , 2 1 5 10 0 , 9 4 9 87 , 7 5 6 8 P I N o n s p e c A c c o u n t 6 5 1 0 , 6 5 3 0 , 6 5 4 0 A- 1 2 , L n 2 4 44 , 7 1 7 5,1 3 4 87 90 11 , 5 2 3 9,5 2 6 18 , 3 5 6 9 C u s t O p e r A c s 6 6 1 0 , 6 6 2 0 x l a m o u n t s 10 all o c a t e d o n G S F A- 1 3 , L n 5 4 16 , 9 2 1 94 8 16 17 2, 1 2 8 40 1,7 5 9 2,1 6 7 8,4 5 1 1, 3 9 7 11 T O T A L M O D I F I E D B i G T H R E E E X P E N S E S Ln 7 . 1 0 37 8 , 1 7 2 78 , 0 8 6 1,4 3 3 38 7 67 , 8 6 6 40 11 2 , 2 3 4 10 8 , 2 7 9 8,4 5 1 1, 3 9 7 12 D i s t r i b u t i o n o f l i n e 1 1 Ln 1 1 1 1 1 a 10 0 . 0 0 0 0 % 20 . 6 4 8 2 % 0.3 7 8 8 % 0.1 0 2 3 % 17 . 9 4 5 7 % 0.0 1 0 6 % 29 . 6 7 8 0 % 28 . 6 3 2 3 % 2. 2 3 4 7 % 0. 3 6 9 3 % 13 P l a n t S p e c i f i c E x p e n s e s A- 1 1 , L n 3 2 39 9 , 3 6 9 81 , 5 1 4 1,4 9 1 44 7 75 , 5 6 1 11 8 , 5 9 6 12 1 , 7 6 0 14 P l a n t N o n s p e c i f i c E x p e n s e s A- 1 2 , L n 3 8 25 0 , 2 6 9 41 , 4 4 6 72 8 51 4 26 , 2 7 5 69 , 8 4 0 11 1 , 4 6 6 15 C u s t o m e r O p e r t i o n s E x p e n s e s A- 1 3 , L n 5 5 30 , 2 2 8 1,9 4 2 33 34 5, 6 2 9 41 4,6 5 4 7,7 0 2 8,7 4 7 1, 4 4 6 16 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 s A- 1 4 , L n 1 2 19 8 , 5 7 1 37 , 0 8 8 67 5 23 9 38 , 8 1 4 17 55 , 5 8 6 61 , 8 8 4 3,6 6 2 60 5 17 7 1 0 0 O t h O p e r I n c & E x p e n s e s A- 1 0 , L n 1 7 + 1 8 18 7 3 0 0 C o n t r i b u t i o n s A- 1 0 , L n 1 6 4,1 7 7 48 0 8 8 1, 0 7 6 89 0 1,7 1 5 19 T O T A L O P E R A T I N G E X P E N S E S Ln 1 3 . . 1 8 88 2 , 6 1 4 16 2 , 4 7 0 2,9 3 5 1,2 4 3 14 7 , 3 5 6 59 24 9 , 5 6 5 30 4 , 5 2 6 12 , 4 0 9 2,0 5 1 20 O p e r a t i n g T a x e s A- 1 4 , L n 2 2 38 , 7 3 7 4,4 4 7 76 78 9,9 8 2 8, 2 5 2 15 , 9 0 1 21 E q u a l A c c e s s E x p e n s e s A.; 1 4 , L n 3 0 22 E x p e n s e A l l o w / D i s a l l o w a n c e s A- 1 4 , L n 3 5 23 5 2 4 0 R e n t R e v e n u e s A-1 0 , L n 4 3 24 T O T A L O P E R A T I N G E X P & T A X E S Ln 1 9 + 2 0 . . 2 2 - 2 3 92 1 , 3 5 1 16 6 , 9 1 7 3,0 1 0 1,3 2 1 15 7 , 3 3 8 59 25 7 , 8 1 8 32 0 , 4 2 8 12 , 4 0 9 2,0 5 1 25 D i s t r i b u t i o n o f U n e 2 4 ln 2 4 1 2 4 a 10 0 . 0 0 0 0 % 18 . 1 1 6 6 % 0.3 2 6 7 % 0.1 4 3 3 % 17 . 0 7 6 9 % 0. 0 0 6 4 % 27 . 9 8 2 6 % 34 . 7 7 8 0 % 1. 3 4 6 9 % 0.2 2 2 6 % I IN C O M E T A X C A L C U L A T I O N I 26 O t h e r O p e r t i n g I n c o m e A-1 4 , L n 2 8 27 A F U D C A-1 0 , L n 1 5 1,6 0 5 18 4 3 3 41 4 34 2 65 9 28 O p e r a t i n g R e v e n u e A-1 4 , L n 2 9 - L n 2 6 1,2 3 6 , 4 6 7 19 0 0 36 1 , 5 4 0 29 8 , 8 8 7 57 5 , 9 1 7 85 14 29 U n c o l l e c t i b l e R e v e n u e A-1 0 , L n 5 7 30 I n c o m e E f f e c t J u r i s d i c t i o n a l D i f f e r e n c e A-1 0 , L n 5 9 31 I R S I n c o m e A d j u s t m e n t A-1 0 , L n 6 0 32 T O T A L R E V E N U E & O T H E R I N C O M E Ln 2 6 . . 3 1 1,2 3 8 , 0 7 2 20 3 3 4 36 1 , 9 5 8 0 29 9 , 2 2 9 57 6 , 5 7 6 85 14 33 C o n t r i b u t i o n s A-1 0 , L n 1 6 4,1 7 7 48 0 8 8 1,0 7 6 89 0 1,7 1 5 34 O p e r a t i n g E x p e n s e s Ln 1 9 - L n 3 3 87 8 , 4 3 7 16 1 , 9 9 1 2, 9 2 6 1,2 3 4 14 6 , 2 8 0 59 24 8 , 6 7 5 30 2 , 8 1 1 12 , 4 0 9 2,0 5 1 35 O p e r a t i n g T a x e s A-1 4 , L n 2 2 38 , 7 3 7 4, 4 4 7 76 78 9,9 8 2 8,2 5 2 15 , 9 0 1 36 F i x e d C h a r g e s A-1 0 , L n 2 5 31 , 5 3 0 3,6 2 0 62 63 8,1 2 5 6,7 1 7 12 , 9 4 3 37 T O T A L O P E R A T I N G E X P E N S E S Ln 3 3 . . 3 6 95 2 , 8 8 0 17 0 , 5 3 7 3,0 7 2 1,3 8 4 16 5 , 4 6 3 59 26 4 , 5 3 4 33 3 , 3 7 1 12 , 4 0 9 2,0 5 1 38 S t a t e T a x b l e I n c o m e Ln 3 2 - L n 3 7 28 5 , 1 9 2 (1 7 0 , 3 3 4 ) (3 , 0 6 8 ) (1 , 3 8 0 ) 19 6 , 4 9 4 (5 8 ) 34 , 6 9 4 24 3 , 2 0 5 (1 2 , 3 2 4 ) (2 , 0 3 7 ) 39 S t a t e I n c o m e T a x 3. 9 3 0 0 % 11 , 2 0 8 (6 , 6 9 4 ) (1 2 1 ) (5 4 ) 7,7 2 2 (2 ) 1, 3 6 3 9,5 5 8 (4 8 4 ) (8 0 ) 40 F e d e r a l T a x b l e I n c o m e Ln 3 2 - L n 3 7 28 5 , 1 9 2 (1 7 0 , 3 3 4 ) (3 , Q 8 ) (1 , 3 8 0 ) 19 6 , 4 9 4 (5 8 ) 34 , 6 9 4 24 3 , 2 0 5 (1 2 , 3 2 4 ) (2 , 0 3 7 ) 41 S t a t e I n c o e T a x Ln 3 9 11 , 2 0 8 (6 , 6 9 4 ) (1 2 1 ) (5 4 ) 7,7 2 2 (2 ) 1, 3 6 3 9,5 5 8 (4 8 4 ) (8 0 ) 42 N e t F e d e r a l T a x b l e I n c o m e Ln 4 0 - L n 4 1 27 3 , 9 8 4 (1 6 3 , 6 4 0 ) (2 , 9 4 8 ) (1 , 3 2 6 ) 18 8 , 7 7 2 (5 6 ) 33 , 3 3 1 23 3 , 6 4 7 (1 1 , 8 4 0 ) (1 , 9 5 7 ) 43 F e d e r a l In c o m e T a x 25 . 3 9 0 0 % 69 , 5 8 5 (4 1 , 5 4 8 ) (7 4 8 ) (3 3 7 ) 47 , 9 2 9 (1 4 ) 8,4 6 3 59 , 3 2 3 (3 , 0 0 6 ) (4 9 7 ) 44 A m o r t i z a t i o n o f I n v e s t m e n t T a x C r e i t A- 1 0 , L n 4 4 17 4 ~ ) (3 0 0 ~ ) (4 9 ; 45 F e d e r a In c o m e T a x Ln 4 3 - L n 4 4 69 . 5 6 5 41 5 4 8 (3 3 7 47 , 9 2 9 /1 4 84 6 3 59 3 2 3 Mo s s A d a m s , L L P Pro p r i e t a r y I n f o r m a t i o n 40 1 2 6 Ru r a l T e l e p h o n e C o m p a n y ~ I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 LI N E Dis t r PO R T I O N M E N T 32 1 1 0 4 S u p p o r t A s e t s - J o i n t x l G S F - B & C 5 G e n e r a l S u p p o r t F a c i l t i e s - B & C 6 D i r e c t A s s i g n m e n t 7 T c t a l S u p p o r t A s s e t s 8 D i s t r i b u t i o n o f L i n e 7 9 L a n d A s s e t s - J o i n t 10 D i r e c t A s s I g n m e n t 11 T o t a l L a n d A s s e t s 12 T O T A L L A N D & S U P P O R T A S S E T S 13 D i s t r i b u t i o n o f L i n e 1 2 Pro p r i e t a r y I n f o r m a t l o n SO U R C E A- 2 , L n 8 A- 3 , L n 1 2 Ln 4 a * 1 Dir e c t Ln 6 a * 1 Ln 4 . . 6 Ln 7 / 7 a Ln 9 a * 1 Ln 1 0 a * 1 Ln 9 . . 1 0 Ln 7 + 1 1 Ln 1 2 1 1 2 a IN T E R S T A T E~TO T A L (a l 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 10 0 . 0 0 0 0 % 20 . 6 4 8 2 % 0.3 7 8 8 % 0. 1 0 2 3 % 17 . 9 4 5 7 % 45 2 , 2 7 8 51 , 9 2 2 88 4 91 0 11 6 , 5 5 0 45 2 , 2 7 8 51 , 9 2 2 88 4 91 0 11 6 , 5 5 0 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 45 2 , 2 7 8 51 , 9 2 2 88 4 91 0 11 6 , 5 5 0 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0. 1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % GE N E R A L S U P P O R T F A C I L I T I E S 5/ 6 1 2 0 0 9 A- 4 Mo s s A d a m s , L L P 0. 0 1 0 6 % 21 . 3 0 3 6 % 29 . 6 7 8 0 % 41 . 0 5 0 1 % 28 . 6 3 2 3 % 96 , 3 5 1 18 5 , 6 6 1 96 , 3 5 1 21 . 3 0 3 6 % 18 5 , 6 6 1 41 . 0 5 0 1 % 96 , 3 5 1 21 . 3 0 3 6 % 18 5 , 6 6 1 41 . 0 5 0 1 % 2.2 3 4 7 % 0.3 6 9 3 % 5o f 2 6 Ru r a l T e l e p h o n e C o m p a n y ~ I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 C O E ~ C a t . 1 M a n u a l S w i t c h b o a r d P c t 2 C O E - C a t . 1 T S P S C o m p l e x CO E A P P O R T I O N M E N T 3 2 2 2 0 O p e r a t o r S y s t e m s 4 C a t 1 - 0 p e r a t o r S y s t e m s 5 M a n u a l S w l t c h l b o a r d s 6 A u x i l i a r y S w i t c h b o a r d s 7 I n t e r c e p t 8 D i r e c t o r y A s s i s t a n c e 9 S v c O b s B o a r d s 10 T S P S 11 O p e r a t o r 12 R T A 13 O t h 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 C a t 1 16 D i s t r i b u t i o n o f L i n e 1 5 17 2 2 1 0 C e n t r a l O f f c e S w i t c h i n g 18 C a t 2 - T a n d e m S w i t c h i n g 19 T a n d e m S w l l c l l n g 20 D i r e c t A s s i g n - M S G 21 - P L 22 T o t a C a t 2 23 C a t 3 - L o c a l S w i t c h i n g - T S 24 C a t 3 - L o c a l S w i t c h i n g - N T S 25 D i r e c t A s s i g n - M S G 26 - P L 27 T o t a l C a t 3 28 T O T A L C O E - S W l T C H I N G 29 D i s t r i b u t i o n o f U n e 2 8 30 C O E C a t 1 , 2 & 3 x l S O B ( x l b . . d , h , k ) 31 D i s t r i b u t i o n o f U n e 3 0 Pro p r i e t a r y I n f o r m a t i o n SO U R C E A-1 6 , L n 3 A-1 6 , L n 5 Ln 5 a * 1 Dir e c t Dir e c t Ln 9 a * 3 1 Ln 1 1 a * 2 Ln 1 2 a * 3 1 Ln 1 3 a * 3 1 Ln 1 4 a * 3 1 Ln 7 . . 1 4 Ln 1 5 / 1 5 a Dir e c t Di r e c t Di r e c t Ln 1 9 . . 2 1 Di r e c t Di r e c t Di r e c t Di r e c t Ln 2 3 . . 2 6 Ln 2 2 + 2 7 Ln 2 8 / 2 8 a Ln 7 . . 8 + 2 8 Ln 3 0 / 3 0 a 5/ 6 / 2 0 0 9 CE N T R A L O F F I C E E Q U I P M E N T A- 5 Pa g e 1 o f 3 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 91 3 , 4 5 9 91 3 , 4 5 9 91 3 , 4 5 9 10 0 . 0 0 0 0 % 91 3 , 4 5 9 10 0 . 0 0 0 0 % Mo s s A d a m s , L L P 6 of 26 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 LIN E DE S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 5/6 1 2 0 0 9 CE N T R A L O F F I C E E Q U I P M E N T A- 5 Pa g e 2 o f 3 SO U R C E Pr o c e s s n In t e r - ex c h a n g e '0 CO E A P P O R T I O N M E N T 32 2 2 3 0 C e n t r a l O f c e - T r a n s m i s s i o n 33 C a t 4 . 1 - E x c h a n g e C i r c u i t 34 4 . 1 1 W l d e b a n d L i n e 35 D i r e c t A s s I g n - M S G 36 - P L 37 4 . 1 2 Ex T r k x I B - B a s i c 38 D i r e c t A s i g n - M S G 39 - P L 40 E x T r k W B 41 D i r e c t A s s i g n - M S G 42 - P L 43 4 . 1 3 E x L i n e x l B 44 J o i n t M S G 45 P L & L o c a l 46 D i r e c t A s s I g n ~ M S G 47 - P L 48 C a t 4 . 2 - l n t e r e x c h a n g e 49 4 . 2 1 F u r n t o O t h e r - M S G 50 - P L 51 4 . 2 2 W l d e b a n d 52 J t M S G - A c s s 53 - N o n a c c e s s 54 P L T W X - A c c e s s 55 - N o n a c c e s s 56 D i r e c t A s s l g n - M S G 57 - P L Pro p r i e t a r y I n f o r m a t i o n Dir e c t Di r e Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t DI r e c t Dir e c t Dir e c t Dir e c t Dir e c t DIr e c t Dir e c t Dir e c t Dir e c t DIr e c t Di r e Di r e c t Di r e c t Dir e c B& C 36 7 , 0 0 6 20 0 , 0 6 8 6,9 2 6 Mo s s A d a m s , L L P 7 of 26 51 6 1 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 CE N T R A L O F F l C E E Q U I P M E N T A- 5 Pa g e 3 o f 3 LI N E DE S C R I P T I O N AP P O R T I O N M E N T F A C T O R S SO U R C E Lo c a l Sw i t c h i n g e Tr a n s p o r t Tr a n s m i s s i o n T a n d e m S w I Ca r r i e r C o m m o n L i n e ~- - k) ( I B& C Re c r d P r o c e s s ml ( n In t e r . ex c h a n g e o 58 59 60 61 62 63 ca E A P P O R T I O N M E N T 4. 2 3 A l l O t h e r Jt M S G ~ A c c e s s PL T W X - A c c e s s Jt M s g T W X - I T Dir e c t A s s i g n - M S G N o n a c c s s -P L N o n a c c e s s Di r e c t Di r e Di r e c Di r e c t Dir e c t 46 6 , 9 4 6 64 C a t 4 . 3 - H o s t i R e m o t e 65 J o i n t 66 W A T S - M S G 67 - P L 68 D i r e c t A s s i g n - M S G 69 - P L Dir e c t Di r e t Dir e c t Dir e c t Dir e c t 70 T o t a l C a t 4 Ln 3 4 . . 5 7 + 5 9 . . 6 9 1,0 4 0 , 9 4 6 36 7 , 0 0 6 6,9 2 6 46 6 , 9 4 6 20 0 , 0 6 8 1,0 4 0 , 9 4 6 36 7 , 0 0 6 6,9 2 6 46 6 , 9 4 6 20 0 , 0 6 8 10 0 . 0 0 0 0 % 35 . 2 5 7 0 % 0.6 6 5 3 % 44 . 8 5 7 9 % 19 . 2 1 9 8 % 1,9 5 4 , 4 0 6 36 7 , 0 0 6 6,9 2 6 91 3 . 4 5 9 46 6 , 9 4 6 20 0 , 0 6 8 10 0 . 0 0 0 0 % 18 . 7 7 8 4 % 0. 3 5 4 4 % 46 . 7 3 8 5 % 23 . 8 9 2 0 % 10 . 2 3 6 8 % 71 T O T A L C O E - T R A N S M I S S I O N 72 D i s t r i b u t i o n o f U n e 7 1 Ln 7 0 Ln 7 1 n 1 a 73 T O T A L C E N T R A L O F F I C E E Q U I P 74 D i s t r i b u t i o n o f L i n e 7 3 Ln 1 5 + 2 2 + 2 7 + 7 0 Ln 7 3 1 7 3 a 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 8 of 26 5/ 6 1 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 IN F O R M T I O N O R I G I N A T I O N I T E R M I N A T I O N E Q U I P M E N T A- 6 LIN E DE S C R I P T I O N Ap P O R T I O N M E N T F A C T O R S IP P O R T I O N M I = SO U R C E IN T E R S T A T E~TO T A L a Sp e c I a l A c c s s Ch a n T e r m C M - T e r m C M - F a c i l b) ( c ) ( d Lo c a Sw i t c h i n g . lO T E Q U I P M E N T ¡ . . . _ . . . . . . _ . . 1 2 3 1 0 I n f o O r i g l T e r m E q u i p 2 C a t 1 - 0 t h e r l O T 3 P u b l i c T e l e p h o n e D i r e c t 4 A l l O t h e r l O T - M S G D i r e t 5 - P L D I r e c t 6 D i r e c t A s s i g n - M S G D i r e c t 7 - P L D i r e c t B T o t a l C a t 1 - O t h e r l O T L n 3 . . 7 9 D i s t r i b u t i o n o f L I n e 8 L n 8 / B a 10 C a t 2 C P E - M S G 11 - P L 12 T o t a l C a t 2 - C P E 13 D i s t r i b u t i o n o f L i n e 1 2 Dir e c t Dir e c t Ln 1 0 . . 1 1 Ln 1 2 1 1 2 a 14 T O T A L l O T E Q U I P M E N T 15 D i s t r i b u t i o n o f L I n e 1 4 Ln 8 + 1 2 Ln 1 4 / 1 4 a Mo s s A d a m s , L L P Pro p r i e t a r y I n f o r m a t i o n 9 of 26 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 20 0 7 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 C a t 1 . 3 E q u i v I n t e r L o o p s P c t .. C l v v r . . ' " i 1 - 2 A P P O R T I O N M E N T 2 ' 2 4 1 0 C a b l e & W i r e F a c i l t i e s 3 C a t 1 . E x c h L i n e x l B 4 1 . 1 I n t r a P L & W A T S 5 1 . 2 In t e PL & WA T S 6 1 . 3 J o i n t l y U s e d 7 D I r e c t A s s l g n . M S G 8 - P L 9 T o t a l C a t e g o r y 1 10 C a t 2 - W B & E x c h T r u n k 11 E x T r k x l B - j o i n t m e s s a g e 12 E x l i n e W B - P L 13 w e L i n e . M S G -P L 14 w e T r u n k . P l 15 w e T r k D i r e c t A s s l g n - M S G 16 . P L 17 T o t a l C a t e g o r y 2 Pro 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 Dir e c t Dir e c t Dir e c t Dir e c t Dir e c t Ln 4 . . 8 DIr e c t Dir e c t Dir e c t Dir e t Di r e c Di r e c t Di r e c t ln 1 1 . . 1 6 5/ 6 1 2 0 0 9 CA B L E A N D W I R E F A C I L I T I E S A-7 Pa g e 1 o f 2 SO U R C E Mo s s A d a m s , L L P 10 o f 26 51 6 1 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 CA B L E A N D W I R E F A C I L I T I E S A. 7 Pa g e 2 o f 2 LI N E DE S C R I P T I O N AP P O R T I O N M E N T F A C T O R S SO U R C E Lo c a l SW i t c h i n g . In f o r m a t i o n Oi r A s s t S u r c h a r g e Eq u a l Ac c e s s h Tra n s p o r t Tr a n s m i s s i o n T a n d e m S w i Ca r r i e r C o m m o n L i n e ~- - k) t i B& C ~ P r o c e s s m) ( n In t e r - ex c h a n g e o C& W F C A T J . A P P O R T I O N M E N T 18 C a t 3 - l n t e r e x c h a n g e C & W F 19 W i d e b a n d : 20 J t M S G - A c c e s s 21 P U T X - A c c e s s 22 D i r e c t A s s i g n - M S G 23 . P L Dir e c t Di r e c t Di r e c t Dir e t 7,1 3 2 24 A l l o t h e r : 25 J t M S G - A c c s s 26 P U T W X - A c e s s 27 J o i n t T W X - I T 28 J o i n t T W X - R e m o t e 29 D i r e c t A s s i g n - M S G N o n a c c s s 30 - P L N o n a c c e s s 31 T o t a l C a t e g o r y 3 Di r e c t Di r e c t Di r e c t Di r e c t Di r e c t Di r e c t Ln 2 0 . . 3 0 28 8 , 2 0 6 29 5 , 3 3 8 32 C a t 4 - H o s t f e m o t e 33 J o i n t ( x l A T S ) 34 W A T S - M S G 35 . P L 36 D i r e c t A s s i g n - M S G 37 . P L 38 T o t a l C a t e g o r y 4 Di r e c Di r e c t Di r e c t Di r e c t Di r e c t Ln 3 3 . . 3 7 39 T O T A L C A B L E & W I R E F A C I L I T I E S 40 D i s t r i b u t i o n o f L i n e 3 9 Ln 9 + 1 7 + 3 1 + 3 8 ln 3 9 / 3 9 a 1,5 9 0 , 3 1 9 10 0 . 0 0 0 0 % Mo s s A d a m s , l L P Pro p r i e t a r y I n f o r m a t i o n 11 of 26 5/6 1 0 0 9 Ru r a l Te l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 AM O R T I Z A B L E A S S E T S A- 8 IN T E R S T A T E JU R I S S e e i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tra n s a r t Ca r r i e r C o m m o n L i n e B& C In t e r - T~ : t L Ch a ~ b ~ e r m cM i ; ~ r m CM ; : l C i l Sw j : ~ ~ i n g Dir ( ~ t su r ~ : ~ e Ac ; ~ S S Tr a n S ~ i S S i o n Ta n d ~ ~ S w p~ ~ ) Bi , t R~ ~ ; d pr o ~ s s ex c h a n g e LIN E DE S C R I P T I O N SO U R C E (0 ) AP P O R T I O N M E N T 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 O i s t r A-4 , L n 1 3 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 22 2 1 0 C O E - S w l t c h D l s t r A-5 , L n 2 9 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 3 2 2 2 0 C O E - O p e r a t o r D i s ! r A-5 , L n 1 6 42 2 3 0 C O E - T r a n s m i s s i o n D i s t r A-S , L o 7 2 10 0 . 0 0 0 0 % 35 . 2 5 7 0 % 0.6 6 5 3 % 44 . 8 5 7 9 % 19 . 2 1 9 8 % 52 3 1 0 l O T D i s t r A-6 , L n 1 5 ~ ~ ~ ~ , g ~ ~ ~ ~ ~ ~ ~ W F , E O A c s L S ) A-7 , L n 4 0 10 0 . 0 0 0 0 % 2.5 1 1 1 % 0.4 4 8 4 % 18 . 1 2 2 6 % 78 . 9 1 7 9 % A-2 , L n 5 3 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % TA N G I B L E A S S E T S A P P O R T I O N M E N T 8 2 6 8 0 T a n g i b l e A s s e t s a p L e a s e s 9 21 1 0 L a n d & S u p t A s e t s Ln 9 a * 7 10 22 1 0 C O E - S w l t c h i n g Ln 1 0 a * 2 11 22 2 0 C O E - C p e r a t o r Ln 1 1 a * 3 12 22 3 0 C O E - T r a n s m i s s i o n Ln 1 2 a * 4 13 23 1 0 l O T Ln 1 3 a * 5 14 24 1 0 C & W F ln 1 4 a * 6 15 No t C l a s s i f e d b y A c c o u n t Ln 1 5 a * 7 11 , 8 2 5 1,3 5 8 23 24 3,0 4 7 2,5 1 9 4,8 5 4 16 Di r e c t A s s i g n m e n t - C a p L e a s e s ln 1 6 a * 7 17 T O T A L C A P I T A L L E A S E S ln 9 . . 1 6 11 , 8 2 5 1,3 5 8 23 24 3,0 4 7 2,5 1 9 4,8 5 4 18 D i s t r i b u t i o n o f L i n e 1 7 Ln 1 7 1 1 7 a 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0. 1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % TA N G I B L E A S S E T S A P P O R T I O N M E N T 19 2 6 8 0 T a n g i b l e A s t s - L e a s e I m p r o v e 20 21 1 0 L a n d & S u p t A s s e t s ln 2 0 a * 7 21 22 1 0 C O E - S w i t c h i n g Ln 2 1 a * 2 22 22 2 0 C O E - C p e r a t o r Ln 2 2 a * 3 23 22 3 0 C O E - T r a n s m i s s i o n ln 2 3 a * 4 24 23 1 0 l O T ln 2 4 a * 5 25 24 1 0 C & W F Ln 2 5 a * 6 26 No t C l a s s i f e d b y A c c o u n t ln 2 6 a * 7 27 Dir e c t A s s i g n m e n t - l e a s e I m p r o v e m e n t s Ln 2 7 a * 7 28 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 ln 2 0 . . 2 7 29 D i s t r i b u t i o n o f L i n e 2 8 Ln 2 8 1 2 8 a 30 T O T A L T A N G I B L E A S S E T S Ln 1 7 + 2 8 11 , 8 2 5 1,3 5 8 23 24 3, 0 4 7 2, 5 1 9 4,8 5 4 31 D i s t r i b u t i o n o f U n e 3 0 Ln 3 0 1 3 0 a 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % IN T A N G I B L E A S S E T S A P P O R T I O N M E N T 32 2 6 9 0 I n t a n g i b l e A s s e t s Ln 3 2 a * 7 33 Dir e c t A s s i g n m e n t Ln 3 3 a * 7 34 T O T A L I N T A N G I B L E A S S E T S Ln 3 2 . . 3 3 35 D i s t r i b u t i o n o f U n e 3 4 ln 3 4 1 3 4 a Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o r m a t i o n 12 of 26 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , G r o s s E q A c s 2 G S F , C O E , I O T , C & W F , E g A c ( L S ) OT H E R A C C O U N T S A P P O R T I O N M E N T 3 2 0 0 2 P r o p H I d F u t T e l e c o m U s e 4 D i r e c t A s s i g n m e n t 5 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 6 D i s t r i b u t i o n o f L i n e 5 7 2 0 0 3 P i t U n d e r C o n s t r 8 D i r e c t A s s i g n m e n t 9 T O T A L P L T U N D E R C O N S T R 10 D i s t r i b u t i o n o f L i n e 9 11 2 0 0 5 T e l e c o m P l a n t A d j u s t 12 D i r e c t A s s i g n m e n t 13 T O T A L T E L E C O M P L A N T A D J U S T 14 D i s t r i b u t i o n o f L i n e 1 3 MI S C A C C O U N T S A P P O R T I O N M E N T 15 1 4 0 2 C l a s s B R T B S t o c k 15 1 4 3 8 D e f e r r e d C h a r g e s 16 1 2 2 0 M a t e r i a l & S u p l x l C P E 17 D i r e c t A s s i g n m e n t 18 T O T A L M A T E R I A L S A N D S U P P L l E S 19 C a s h W o r k l n g C a p i t a l EQ U A L A C C E S S I N V E S T A P P O R T I O N M E N T 20 E q u a l A c c e s s G r o s I n v e s t m e n t 21 E q u a l A c c s s G r o s s I n v e s t m e n t - D i r e c t A s i g n m e n t 22 A c c u m D e p r e c i a t i o n 23 D e f e r r O p e r I n c T a x s 24 U n a m o r t i z e d E x p e n s e s 25 T O T A L E Q U A L AC C E S S I N V E S T M E N T 26 D i s t r i b u t i o n o f L i n e 2 6 LO W A P P O R T I O N M E N T iis a l l o w a n c e s 28 D i r e c t A s s i g n m e n t 29 T O T A L I N V E S T A L L O W / D I S A L L O W A N C E S SO U R C E A- 2 , L n 5 5 A- 2 , L n 5 3 Ln 3 a " 1 Ln 4 a * 1 Ln 3 . . 4 Ln 5 / 5 a Ln 7 a " 1 Ln B a * 1 Ln 7 . . 8 Ln 9 / 9 a Ln 1 1 a * 2 Ln 1 2 a * 2 Ln 1 1 . 1 2 Ln 1 3 / 1 3 a Ln 1 5 a " 2 Ln 1 5 a " 2 Ln 1 6 a * 2 Ln 1 7 a " 2 Ln 1 6 . . 1 7 Ln 1 9 a " 2 Dir e c t Di r e t Dir e c t Dir e c t Dir e c t Ln 2 0 - 2 2 - 2 3 + 2 4 Ln 2 5 / 2 5 a 5/ 6 1 2 0 0 9 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 IN T E R S T A T E~ -- a n T e r m TO T A L - -- 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0. 1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0. 1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 77 9 89 2 2 20 1 16 6 32 0 77 9 89 2 2 20 1 16 6 32 0 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0. 1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 29 , 3 9 2 3,3 7 4 57 59 7,5 7 4 6,2 6 1 12 , 0 6 5 29 , 3 9 2 3,3 7 4 57 59 7, 5 7 4 6,2 6 1 12 , 0 6 5 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % A-9 59 , 5 2 9 6,8 3 4 11 6 12 0 15 , 3 4 0 12 , 6 8 2 24 , 4 3 7 59 , 5 2 9 6,8 3 4 11 6 12 0 15 , 3 4 0 12 , 6 8 2 24 , 4 3 7 80 , 2 0 5 Pr o p r i e t a r y I n f o r m a t i o n Ln 2 7 a * 2 Ln 2 8 a " 2 Ln 2 7 . . 2 8 Mo s s A d a m s , L L P 13 0 f 2 6 51 6 1 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 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 A-1 0 Stu d y Y e a r : 2 0 0 7 S e c i a l A c c e s s In f o r m a t i o n Eq u a l Tra n s r t Ca r r i e r C o m m o n L i n e a& C Ch a n T e r m CM - T e r m CM - F a c i l Oir A s s t Su r c h a r g e Ac c e s s Tr a n s m i s s i o n Ta n d e m S w Pa y aF P Re c o r d LI N E DE S C R I P T I O N SO U R C E AP P O R T I O N M E N T F A C T O R S I 1 G S F , C O E , I O T , C & W F , E q A c s ( L S ) A-2 , L n 5 3 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % I ~ I ~ I 21 . 3 0 3 6 % ~ I 41 . 0 5 0 1 % 2 G S F , C O E , I O T , C & W F , E q A c s D i s t r A-2 , L n 4 9 10 0 . 0 0 0 0 % 11 . 4 6 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 3 C O E , C W & F , I O T x f C C L , L t d P a y , B & C , I X A-2 , L n 6 8 10 0 . 0 0 0 0 % 19 . 4 7 4 5 % 0.3 3 1 4 % 0.3 4 1 3 % 43 . 7 1 4 3 % 36 . 1 3 8 4 % 4 2 1 1 0 S u p p o r t A s s e t s D i s t r A-4 , L n 8 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 52 2 1 0 C O E S w i t c h i n g D i s t r A-5 , L n 2 9 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 6 2 2 2 0 C O E O p e r a t o r D i s l r A.5 , L n 1 6 7 2 2 3 0 C O E T r a n s m i s s i o n D i s l r A-5 , L n 7 2 10 0 . 0 0 0 0 % 35 . 2 5 7 0 % 0.6 6 5 3 % 44 . 8 5 7 9 % 19 . 2 1 9 8 % 8 2 3 1 0 l O T D l s t r A-6 , L n 1 5 92 4 1 0 C & W F D i s t r A-7 , L n 4 0 10 0 . 0 0 0 0 % 2.5 1 1 1 % 0.4 4 8 4 % 18 . 1 2 2 6 % 78 . 9 1 7 9 % 10 2 0 0 1 T e l P i t i n S v c D i s t r A-2 , L n 1 5 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 11 N e t T e l e c o m P l a n t D i s t r A-2 , L n 3 4 10 0 . 0 0 0 0 % 12 . 5 2 6 4 % 0.2 0 5 0 % 0.2 9 7 1 % 2. 9 3 4 9 % 25 . 8 2 7 9 % 58 . 2 0 8 7 % 12 4 1 0 0 N e t C u r D e f O p I n c T a x e s A- 1 5 , L n 4 8 13 B i g T h r e e E x p e n s e s D i s t r A- 3 , L n 6 10 0 . 0 0 0 0 % 18 . 6 7 7 5 % 0.3 3 9 7 % 0.1 2 0 4 % 19 . 5 4 6 9 % 0. 0 0 8 7 % 27 . 9 9 3 2 % 31 . 1 6 4 6 % I 1.8 4 2 % 0.3 0 4 8 % OT H E R I N C O M E A P P O R T I O N M E N T 14 7 1 0 0 O t h O p e r I n c & E x p e n s e s 15 Al w F d s U s e d O u r C o n s t r Ln 1 5 a " 1 I 1,6 0 5 1 18 4 3 ~ I 41 4 1 :1 :1 34 2 :1 65 9 16 Co n t r i b u t i o n s Ln 1 6 a " 1 4, 1 7 7 48 0 8 1,0 7 6 89 0 1,7 1 5 17 Ab a n d o n d e d C o n s t r u c t i o n Ln 1 7 a " 1 18 Dir e c t A s s i g n m e n t Ln 1 8 a " 1 19 T O T A L O T H E R O P E R I N C & E X P E N S E S Ln 1 5 . . 1 8 I 5,7 8 3 1 66 4 11 12 1 1,4 9 0 1 -I -I 1,2 3 2 -I 2,3 7 4 20 F i x e d C h a r g e s 21 In t e r e s t o n C a p i t a l L e a s e s Ln 2 1 a * 1 22 Fix e d C h a r g e s E x c C a p i t a l L e a s e s Ln 2 2 a " 1 1 31 , 5 3 0 1 3, 6 2 0 62 63 1 8,1 2 5 1 -I -I 6,7 1 7 -I 12 , 9 4 3 23 Am o r t i z a t i o n o f D e b t D i s c o u n t Ln 2 3 a * 1 24 Ot h e r I n t e r e s t Ln 2 4 a " 1 25 T O T A L F I X E D C H A R G E S Ln 2 1 . 2 4 I 31 , 5 3 0 I 3, 6 2 0 62 63 1 8,1 2 5 1 -I -I 6,7 1 7 -I 12 , 9 4 3 26 5 2 4 0 R e n t Re v e n u e s 27 Su p p o r t A s e t s Ln 2 7 a * 4 28 CO E - S w i t c h i n g Ln 2 8 a * 5 29 CO E - D p e r a t o r Ln 2 9 a * 6 30 CO E - T r a n s m i s s i o n Ln 3 0 a * 7 31 lO T Ln 3 1 a * 8 32 C& W F Ln 3 2 a * 9 33 No t C l a s s i f e d b y A c c o u n t Ln 3 3 a * 1 0 UN B U N D L E D N E T W O R K E L E M E N T S 34 C& W F - U n b u n d l e d L o o p Di r e c t 35 Op e r a t o r S y s t e m s 36 Ta n d e m S w i t h i n g Di r e c t 37 Lo c l S w i t c h i n g Di r e c t 38 Tr a n s p o r t T e r m i n a t i o n Di r e c t 39 Tr a n s p o r t F a c i l i t y Di r e c t 40 SS 7 Ln 4 0 a * 7 41 OS S Ln 4 1 a * 1 0 42 Dir e c t A s s i g n m e n t Ln 4 2 a * 1 0 43 T O T A L R E N T R E V E N U E S Ln 2 7 . . 4 2 IN C O M E T A X A D J U S T A P P O R T I O N M E N T 1 44 I T C A m o r t i z a t i o n ~ F e d e r a l Ln 4 a * 1 45 I T C A m o r t i z a t i o n - S t a t e Ln 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 Ln 4 . . 4 5 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 0 48 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 * 2 49 Di r e c t A s s i g n m e n t Ln 4 9 a * 2 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 . . 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 Ln 5 1 a * 2 52 Dir e c A s s i g n m e n t Ln 5 2 a * 2 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 . 5 2 54 U n c o l l e c t i b l e s - J o i n t M e s s a g e Ln 5 4 a * 2 55 U n c o l l e c t i b l e s - E n d U s e r C C L Di r e c t 56 U n c o l l e c t l b l e s - I n t e r e x c h a n g e C a r i e r ln 5 6 a * 3 57 T O T A L U N C O L L E C T I 8 L E S Ln 5 4 . . 5 6 58 M i s c I n c A d j u s t m e n t s 59 In c A d j A 1 l o c o n 2 0 0 1 Ln 5 9 a * 1 0 60 In c A d J A 1 l o c o n B i g 3 E x p Ln 6 0 a * 1 61 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 . . 6 0 62 T o t a l O t h e r I n c o m e a n d T a x a d j u s t m e n t s Ln 1 9 + 2 5 + 4 3 + 4 6 + 4 7 + 5 0 1 37 , 3 1 2 1 4,2 8 4 73 75 1 9, 6 1 5 1 :1 :1 7,9 4 9 :1 15 , 3 1 7 63 D i s t r i b u t i o n o f L i n e 6 2 Ln 6 2 J 6 2 a 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0,2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 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 14 of 26 5/ 6 1 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 PL A N T S P E C I F I C E X P E N S E S A- 1 1 Stu d y Y e a r : 2 0 0 7 I IN T E R S T A T E I -- - e r - (a ) (b ) (e ) (d ) (e ) I 1f (0 ) I (h ) I (i (i i (k ) (I I (m ) .1 n L I ex c h a n g e LI N E DE S C R I P T I O N SO U R C E (0 AP P O R T I O N M E N T F A C T O R S I :1 :1 :1 1 G S F , C O E , I O T , C & W F , E q A c s ( L S ) A- 2 , L n 5 3 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0. 1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 0 / : I 21 . 3 0 3 6 % 41 . 0 5 0 1 % 22 1 1 0 L a n d & S u p p o r t As s e t s D i s t r A- 4 , L n 1 3 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0. 1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 3 2 2 1 0 C O E S w i t c h i n g D i s t r A- 2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 4 2 2 2 0 C O E O p e r a t o i y S y s t e m s D i s ! r A- 5 , L n 1 6 5 2 2 3 0 C O E T r a n s m i s s i o n D l s t r A- S , L n 7 2 10 0 . 0 0 0 0 % 35 . 2 5 7 0 % 0. 6 6 5 3 % 44 . 8 5 7 9 % 19 . 2 1 9 8 % 6 6 4 1 0 C & W F D i s t r A.7 , L n 4 0 10 0 . 0 0 0 0 % 2. 5 1 1 1 % 0.4 4 8 4 % 18 . 1 2 2 6 % 78 . 9 1 7 9 % PL A N T S P E C I F I C E X ? A P P O R T I O N M E N T I 7 6 1 1 0 N e t w o r k S u p p o r t E x p e n s e s Ln l a * 1 9,1 6 4 1,0 5 2 18 18 2, 3 6 1 1,9 5 2 3,7 6 2 8 Dir e c t A s s i g n m e n t Ln 6 a * 1 9 T O T A L N E T W O R K S U P P O R T E X P E N S E S Ln 7 . . 8 9,1 6 4 1,0 5 2 18 18 2, 3 6 1 1,9 5 2 3,7 6 2 10 6 1 2 0 G e n e r a S u p p o r t E x p e n s e s Ln 1 0 a * 2 73 , 6 7 2 8,4 5 8 14 4 14 8 18 , 9 8 5 15 , 6 9 5 30 , 2 4 2 11 Dir e c t A s s i g n m e n t ln 1 1 a " ' 2 12 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 1 0 . . 1 1 73 , 6 7 2 8,4 5 8 14 4 14 8 18 , 9 8 5 15 , 6 9 5 30 , 2 4 2 13 6 2 1 0 C O E S w i t c h i n g E x p e n s e s ln 1 3 a " ' 3 54 , 2 1 5 54 , 2 1 5 14 Dir e c t A s s i g n m e n t ln 1 4 a " 3 15 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 3 . . 1 4 54 , 2 1 5 54 , 2 1 5 16 6 2 2 0 C O E O p e r a t o r S y s t e m s E x n s e s Ln 1 6 a " ' 4 17 Dir e c t A s s i g n m e n t Ln 1 7 a * 4 18 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 6 . . 1 7 19 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 9 a * 5 19 9 , 7 7 3 70 , 4 3 4 1,3 2 9 89 , 6 1 4 38 , 3 9 6 20 Di r e c t A s i g n m e n t Ln 2 0 a " ' 5 21 T O T A L C O E T R A N S M I S S I O N E X P E N S E S Ln 1 9 . . 2 0 19 9 , 7 7 3 70 , 4 3 4 1,3 2 9 89 , 6 1 4 38 , 3 9 6 22 T O T A L C O E E X P E N S E S Ln 1 5 + 1 8 + 2 1 25 3 , 9 8 7 70 , 4 3 4 1,3 2 9 54 , 2 1 5 89 , 6 1 4 38 , 3 9 6 23 6 3 1 0 l O T E q u i p E x p e n s e s 24 Ca t 1 - O t h e r l O T E q E x p e n s e s Dir e c t 25 Ca t 2 - C u s t P r e m E q u i p E x p Dir e c t 26 Di r e c t A s s i g n m e n t Dir e c t 27 T O T A L l O T E X P E N S E S Ln 2 4 . . 2 6 28 6 4 1 0 C & W F E x p e n s e s Ln 2 8 a " ' 6 62 , 5 4 6 1,5 7 1 28 0 11 , 3 3 5 49 , 3 6 0 29 Di r e c t A s s i g n m e n t Ln 2 9 a * 6 30 T O T A L C & W F E X P E N S E S Ln 2 8 . . 2 9 62 , 5 4 6 1,5 7 1 28 0 11 , 3 3 5 49 , 3 6 0 31 P i t Sp e c Ex p x J 6 1 1 0 , 6 1 2 0 Ln 2 2 + 2 7 + 3 0 31 6 , 5 3 4 72 , 0 0 4 1,3 2 9 28 0 54 , 2 1 5 10 0 , 9 4 9 87 , 7 5 6 32 T O T A L P L A N T S P E C O P E R E X P Ln 9 + 1 2 + 3 1 39 9 , 3 6 9 81 , 5 1 4 1,4 9 1 44 7 75 , 5 6 1 11 8 , 5 9 6 12 1 , 7 6 0 33 D i s t r i b u t i o n o f L i n e 3 2 Ln 3 2 f 3 2 a 10 0 . 0 0 0 0 % 20 . 4 1 0 7 % 0.3 7 3 3 % 0. 1 1 2 0 % 18 . 9 2 0 1 % 29 . 6 9 5 7 % 30 . 4 8 8 1 % Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o r m a t i o n 15 0 f 2 6 5/6 1 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 PL A N T N O N S P E C I F I C E X P E N S E S A-1 2 IN T E R S T A T E JU R I S Sp e c i a l A c c e s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s p o r t Ca r r i e r C o m m o n L i n e B& C In t e r - TO ; t L Ch a n T e m i CM - T e r m CM - F a c i l Sw i t c h i n g Dir A s s t Su r ~ ~ r g e Ac c e s s Tra n s m i s s i o n Ta n d e m S w Pa y BF P Re c o r d Pr o c e s ex c h a n g e LIN E DE S C R I P T I O N SO U R C E b c d e) If h Ii) Ii k 11 m in 0 AP P O R T I O N M E N T F A C T O R S 1 C O E , l O T , C & W F D i s t r A-2 , L n 8 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 2 2 1 1 0 S u p t A s t s D i s t r A-4 , L n 8 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 3 2 2 1 0 C O E - S w i t c h i n g D i s t r A-2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 4 2 2 2 0 C O E - C p e r a l o r D i s t r A-5 , L n 1 6 5 2 2 3 0 C O E . T r a n s m i s s i o n D i s t r A-5 , L n 7 2 10 0 . 0 0 0 0 % 35 . 2 5 7 0 % 0.6 6 5 3 % 44 . 8 5 7 9 % 19 . 2 1 9 8 % 62 3 1 0 l O T D i s t r A-6 , L n 1 5 72 4 1 0 C & W F D i s t r A-7 , L n 4 0 10 0 . 0 0 0 0 % 2.5 1 1 1 % 0. 4 4 8 4 % 18 . 1 2 2 6 % 78 . 9 1 7 9 % 8 2 0 0 1 T e t P i t i n S v c D i s t r A-2 , L n 1 5 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 9 2 0 0 2 P r o p H i d F l T e l U s e D i s t r A-9 , L n 6 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 10 2 6 8 0 C a p i t a l L e a s e s D i s l r A-8 , L n 1 8 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 11 2 6 8 0 L e a s e h o l d I m p r o v e D i s t r A-8 , L n 2 9 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s l r A-B , L n 3 5 ~.~ 13 2 0 0 5 T e l e c o m P i t Ac f u s t m e n t A-9 , L n 1 4 PL A N T N O N S P E C E X P A P P O R T I O N 14 6 5 1 0 O t h P r o p P l a n t & E q E x p Ln 1 4 a * 1 56 4 65 1 1 14 5 12 0 23 2 15 Di r e c t A s s i g n m e n t Ln 1 5 a * 1 16 T O T A L O T H P R O P P L A N T & E Q E X P Ln 1 4 . . 1 5 56 4 65 1 1 14 5 12 0 23 2 17 6 5 3 0 N e t w r k O p e r a t i o n s E x p Ln 1 7 a * 1 44 , 1 5 2 5, 0 6 9 88 89 11 , 3 7 8 9,4 0 6 18 , 1 2 5 18 Di r e A s s i g n m e n t Ln 1 8 a * 1 19 T O T A L N E T W O R K O P E R A T I O N S E X ? Ln 1 7 . . 1 8 44 , 1 5 2 5, 0 6 9 88 89 11 , 3 7 8 9,4 0 8 18 , 1 2 5 20 6 5 4 0 A c c e s s E x e n s e s 21 Ac c e s s E x p e n s e x l e d e r a l S u p p o r t Dir e c t 22 Fe d e r a S u p p o r t Dir e c t 23 T O T A L A C C E S S E X P E N S E S Ln 2 1 . . 2 2 24 T O T A L A C C O U N T S 6 5 1 0 , 6 5 3 0 , 6 5 4 0 Ln 1 6 + 1 9 + 2 3 44 , 7 1 7 5,1 3 4 87 90 11 , 5 2 3 9,5 2 6 18 , 3 5 6 25 6 5 6 0 D e p r a n d A m o r t E x p e n s e s 26 De p r - 5 u p p o r t A s e t s Ln 2 6 a * 2 10 , 3 5 7 1, 1 8 9 20 21 2, 6 6 9 2,2 0 8 4,2 5 2 27 De p r - C O E - S w i t c h i n g Ln 2 7 a * 3 11 , 9 9 1 11 , 9 9 1 28 De p r - C O E - C p e r a t o r Ln 2 8 a * 4 29 De p r - C O E - T r a n s m l s s i o n Ln 2 9 a * 5 93 , 1 1 5 32 , 8 3 0 62 0 41 , 7 7 0 17 , 8 9 7 30 De p r - I n f o O r i g l T e r m E q u i p Ln 3 0 a " 6 31 De p r - C a b l e & W i r e F a c i l Ln 3 1 a " 7 89 , 7 3 2 2,2 5 3 40 2 16 , 2 6 2 70 , 8 1 5 32 De p r - P r o p H i d F t T e l U s e Ln 3 2 a " 9 33 Am o r - C a p i t a l L e a s e s Ln 3 3 a " 1 0 35 6 41 1 1 92 76 14 6 34 Am o r - L e a s e h o d I m p r o v e m e n t s Ln 3 4 a " 1 1 35 Am o r t - I n t a n g i b l e A s s e t s Ln 3 5 a * 1 2 36 Am o r t - O t h e r Ln 3 6 a " 1 3 37 T O T A L D E P R & A M O R T E X P E N S E S Ln 2 6 . . 3 6 20 5 , 5 5 2 36 , 3 1 3 64 0 42 4 14 , 7 5 2 60 , 3 1 4 93 , 1 0 9 38 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 + 3 7 25 0 , 2 6 9 41 , 4 4 6 72 8 51 4 26 , 2 7 5 69 , 8 4 0 11 1 , 4 6 6 39 D i s t r i b u t i o n o f L i n e 3 9 Ln 3 8 / 3 8 a 10 0 . 0 0 0 0 % 16 . 5 6 0 8 % 0. 2 9 0 8 % 0.2 0 5 3 % 10 . 4 9 8 7 % 27 . 9 0 6 0 % 44 . 5 3 8 4 % Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o r m a t i o n 16 of 26 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r 2 0 0 7 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 1 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 2 W S W S - T e l O p e r S v c s P c t 3 O p e r a t o r S e r v i c e s U n d e r C o n t r a c t P c t . 4 G S F , C O E , I O T , C & W F , E q A c ( L S C C L + ) 5 E U S e r v i c e O r d e r C o n t a c t 6 E U P a y m e n t & C o l l e c t i o n 7 E U B i l l n g I n q u i r y C o n t a c t s 8 I X C a r r i e r S v c O r d e r C o n t a c t s 9 I X C a r r i e r P a y m e n t & C o l l e c t i o n 10 i X C a r r e r B i l l n g I n q u i r y C o n t a c t s 11 C o I n C o l l e c t i o n MA R K E T I N G E X P E N S E S A P P O R T I O N M E N T 12 6 6 1 0 M a r k e t i n g E x p e n s e s 13 D i r e t A s s i g n m e n t 14 T O T A L M A R K E T I N G E X P E N S E S SE R V t C E S E X P E N S E S A P P O R T I O N M E N T 15 6 6 2 0 S e r v i c e s E x p e n s e s 16 T e l e p h o n e O p e r a t o r S e r i c e : 17 T e l O p e r a t o r S v c 18 O p e r a t o r s e r i c e s u n d e r c o n t r a c t 19 T o t a l T e l O p e r S v c E x p 20 P u b l i s h e d D i r e c t L i s t i n g s 21 A I I O l h e r : 22 C a t . 1 - L B O E E U S v c O r d P r o c 23 P r e s u b s c r l p t i o n 24 O t h e r 25 C a t 1 - L B O E E U p a c 26 . C I I 27 - O t h e r 28 C a t 1 - L B O E E U B I 29 - C I I 30 - O t h e r 31 C a t 1 - L B O E I X C S O P 32 C a t 1 . L B O E I X C p a c 33 C a t 1 - L B O E I X C B I 34 C a t 1 . L B O E C o I n C o l - L m t d 35 T o t a l C a t 1 - L B O E Pro p r i e t a r y I n f o r m a t i o n A-2 , l n 5 5 A.1 6 , l n 7 A-1 6 , l n 1 4 A.2 , L n 6 2 A-1 6 , l n 1 9 A-1 6 , L n 2 4 A.1 6 , L n 2 9 A-1 6 , l n 3 3 A-1 6 , l n 3 7 A-1 6 , L r l 1 A-1 6 , l n 4 5 Ln 1 2 a * 1 Dir e c t Ln 1 2 . . 1 3 Ln 1 7 a * 2 Ln 1 8 a * 3 Ln 1 7 . . 1 8 Dir e c t Ln 2 3 a * 4 Ln 2 4 a * 5 Dir e c t Ln 2 5 a * 6 Dir e c t Ln 2 8 a * 7 Ln 3 1 a " 8 Ln 3 2 a * 9 Ln 3 3 a * 1 0 Ln 3 4 a * 1 1 Ln 2 3 . . 3 4 5/6 1 2 0 0 9 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 A-1 3 Pa g e 1 0 1 2 SO U R C E 8, 3 7 3 1, 7 8 4 3,4 3 7 96 1 16 17 2,1 5 8 8, 3 7 3 1, 7 8 4 3, 4 3 7 96 1 16 17 2,1 5 8 40 40 .¡ . ~ ~ £ " . . ,l t . . . 4,1 9 4 2,6 3 0 1.2 2 6 1,0 1 4 1, 9 5 4 3,8 8 1 97 0 3,8 8 1 97 0 3,8 9 4 14 , 5 8 6 Mo s s A d a m s , L L P 17 0 f 2 6 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N AP P O R T I O N M E N T F A C T O R S 36 C O E , C W & F , I O T x l C C l , L t d P a y , B & C , I X SE R V I C E S E X P E N S E S A P P O R T I O N M E N T 37 C a t 2 - C S E M s g P r o c 38 J o i n t M e s s a g e 39 D i r e c t A s s i g n m e n t 40 C a t 2 - C S E O t h e r B & C 41 D i r e c A s i g n m e n t 42 E n d U s e r C o m m o n U n e 43 C a t 2 - C S E C A B S 44 T o t a l C a t 2 - C S E 45 Ca t 2 S p e c A c s D i s l r 46 To t a l 66 2 0 x l C a t 3 47 Dis t r i b u t i o n o f l i n e 4 1 48 Ca t 3 - A l O t h e r C S E 49 Ca l 3 - D i r e t A s s i g n m e n t 50 To l a l A l l O t h e r C a t 3 51 To t a l A l l O l h e r - C a t 1 , 2 , 3 52 T O T A L S E R V I C E S E X P E N S E S 53 T O T A L 6 6 1 0 & 6 6 2 0 x l a m o u n t s 54 a l l o c a t e d o n G S F 55 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 56 D i s t r i b u t i o n o f l i n e 5 4 Pr o p r i e t a r y l n f o m i a t i o n SO U R C E A- 2 , l n 6 8 Dir e c t Dir e c t Dir e c t Dir e c t ln 4 3 a " 3 6 ln 3 7 . . 4 3 ln 4 / 4 4 a . . . . d Ln 1 9 + 2 0 + 3 5 + 4 4 Ln 4 6 / 4 6 a ln 4 8 a " 4 7 ln 4 9 a * 4 7 ln 4 8 . . 4 9 ln 3 5 + 4 4 + 5 0 ln 1 9 + 2 0 + 5 1 ln 1 2 + 1 8 + 1 9 + 2 2 . . 2 5 +2 9 + 3 9 + 4 4 ln 1 4 + 5 2 ln 5 5 / 5 5 a 10 0 . 0 0 0 0 % 96 . 6 6 1 0 % 21 , 1 1 5 94 8 10 0 . 0 0 0 0 % 4.4 8 8 8 % 74 0 33 74 0 33 21 , 8 1 6 98 1 21 , 8 5 5 98 1 16 , 9 2 1 94 8 30 . 2 2 8 1,9 4 2 10 0 . 0 0 0 0 % 6.4 2 5 3 % 5/ 6 1 2 0 0 9 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 A.1 3 Pa g e 2 o f 2 1.6 4 5 0 % 1.6 9 4 0 % 16 17 1 3,3 5 4 0.0 7 6 4 % 0.0 7 8 7 ~ 15 . 8 8 4 2 % 11 8 11 8 17 17 3,4 7 2 17 17 3,4 7 2 16 17 2, 1 2 8 33 34 5. 6 2 9 0.1 0 9 3 % 0.1 1 2 6 % 18 . 6 2 2 3 % 40 0.1 8 9 0 % .~ 2,7 7 3 4,1 2 0 8. 4 5 1 1.3 9 7 13 . 1 3 1 4 % 19 . 5 1 3 5 % 40 . 0 2 3 2 % 6.6 1 4 9 % 97 14 4 29 6 49 97 14 4 29 6 49 2,8 7 0 4,2 6 5 8,7 4 7 1,4 4 6 2,8 7 0 4,2 6 5 8.7 4 7 1,4 4 6 1.7 5 9 2,1 6 7 8,4 5 1 1,3 9 7 4. 6 5 4 7,7 0 2 8,7 4 7 1,4 4 6 15 . 3 9 5 0 % 25 . 4 7 8 9 % 28 . 9 3 7 3 % 4. 7 8 2 7 % 41 40 41 0.1 3 6 6 % Mo s s A d a m s , l L P 18 o f 2 6 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N AP P O R T I O N M E N T 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 G S F , C O E , I O T , C & W F , E q A c s ( L S ) 3 C u s t o m e r O p e r a t i o n s D i s t r CO R P O P E R A T I O N S E X P A P P O R T I O N M E N T 46 7 1 0 E x e c & P l a n n i n g E x p e n s e s 5 A l l Oth e r 6 D i r e c t A s i g n m e n t 7 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 8 6 7 2 0 G e n ' l a n d A d m i n E x p e n s e s 9 A l l Oth e r 10 D i r e c t A s s i g n m e n t 11 T O T A L G E N ' l & A D M I N E X P E N S E S 12 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 13 D i s t r i b u t i o n o f L I n e 1 2 SO U R C E 5/6 1 2 0 0 9 CO R P O R A T E O P E R A T I O N S , T A X S , & E Q U A L AC C E S S E X P E N S E S A- 1 4 Eq u a l Tr a n s D o r t Ca r r i e r C o m m o n l i n e B& C ,- Sw i t c h i n g Dir ( ~ s t su r ~ ~ ~ r g e Ac c e s Tr a n s m i s s i o n Ta n d e m S w Pa y BF P Re c o d Pr o c e s s (e ) (h ) m m (k ) (I) (m ) (n ) 10 0 . 0 0 0 0 % 18 . 6 7 7 5 % 0.3 3 9 7 % 0.1 2 0 4 % 19 . 5 4 6 9 % 0.0 0 8 7 % 27 . 9 9 3 2 % 31 . 1 6 4 6 % 1.8 4 4 2 % 0.3 0 4 8 % 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 10 0 . 0 0 0 0 % 6.4 2 5 3 % 0.1 0 9 3 % 0.1 1 2 6 % 18 . 6 2 2 3 % 0.1 3 6 6 % 15 . 3 9 5 0 % 25 . 4 7 8 9 % 28 . 9 3 7 3 % 4. 7 8 2 7 % 47 , 0 7 0 8,7 9 2 16 0 57 9, 2 0 1 4 13 , 1 7 6 14 , 6 6 9 86 8 14 3 47 , 0 7 0 8,7 9 2 16 0 57 9, 2 0 1 4 13 , 1 7 6 14 , 6 6 9 86 8 14 3 12 4 , 8 4 6 23 , 3 1 8 42 4 15 0 24 , 4 0 3 11 34 , 9 4 8 38 , 9 0 8 2,3 0 2 38 1 26 , 6 5 5 4,9 7 8 91 32 5, 2 1 0 2 7,4 6 1 8,3 0 7 49 2 81 15 1 , 5 0 0 28 , 2 9 6 51 5 18 2 29 , 6 1 4 13 42 , 4 1 0 47 , 2 1 5 2,7 9 4 46 2 19 8 , 5 7 1 37 , 0 8 8 67 5 23 9 38 , 8 1 4 17 55 , 5 8 6 61 , 8 8 4 3,6 6 2 60 5 10 0 . 0 0 0 0 % 18 . 6 7 7 5 % 0.3 3 9 7 % 0.1 2 0 4 % 19 . 5 4 6 9 % 0.0 0 8 7 % 27 . 9 9 3 2 % 31 . 1 6 4 6 % 1.8 4 2 % 0. 3 0 4 8 % 11 8 , 3 0 3 13 , 5 8 1 23 ' 23 8 30 , 4 8 6 25 , 2 0 3 48 , 5 6 3 11 8 , 3 0 3 13 , 5 8 1 23 1 23 8 30 , 4 8 6 25 , 2 0 3 48 , 5 6 3 38 , 7 3 7 4, 4 4 7 76 78 9,9 6 2 8, 2 5 2 15 , 9 0 1 38 , 7 3 7 4, 4 4 7 76 78 9,9 8 2 8,2 5 2 15 , 9 0 1 1,2 3 6 , 1 7 3 29 4 1,2 3 6 , 4 6 7 I '9 0 ~ i 36 1 , 5 4 ~ I ~ I :1 29 8 , 8 8 7 :1 57 5 , 9 1 7 1 85 14 A- 3 , l n 6 A- 2 , l n 5 3 A.1 3 , l n 5 6 ln 5 a " 1 ln 6 a " 1 ln 5 . . 6 ln 9 a " 1 ln 1 0 a " 1 ln 9 . . 1 0 ln 7 + 1 1 ln 1 2 / 1 2 a Ln 1 5 a " 2 Ln 1 6 a " 2 19 O p e r a t i n g T a x e s - P r o p e r t y l n 1 9 a " 2 20 O p e r a t i n g T a x e s - O t h e r l n 2 0 a " 2 21 O p e r a t i n g T a x e s - D i r e c t A s s i g n m e n t l n 2 1 a " 2 22 T O T A L O P E R T A X E S x l F I T , S I T l n 1 9 . . 2 1 I O P E R A T I N G R E V E N U E S E P A R A T I O N S I 23 5 0 0 0 B a i c l o c a l R e v e n u e D i r e t 24 5 0 8 0 I n t e r s t a t e A c c e s s / E n d U s e r R e v e n u e l n 2 4 a " 2 25 5 0 6 4 S t a t e A c e s s / E n d U s e r R e v e n u e D i r e t 26 5 1 0 0 l o n g D i s t a n c e M e s s a g e R e v e n u e D i r e c t 27 5 2 0 0 M i s c e l l a n e o u s O p e r a t i n g R e v e n u e l n 2 7 a " 3 28 7 1 0 0 O t h e r Op e r a t i n g I n c o m e l n 2 8 a " 3 29 T O T A L O P E R A T I N G R E V E N U E EQ U A L A C C E S S E X P A P P O R T I O N M E N T OP E R A T I N G T A X E S A P P O R T I O N M E N T 14 7 2 0 0 O p e r a t i n g T a x e s - - 15 F e d e r a l In c o m e T a x e s 16 S t a l e & L o c a l In c o m e T a x e s 17 O P F E D , S T A T E , L O C A L T A X E S 18 F I T A l l o w a n c e s / D i s a l l o w a n c e s Ln 1 8 a " 2 ;ò R f I O N 31 32 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 33 O t h e r I n t e r e s t 34 D i r e c t A s i g n m e n t 35 T O T A L E X P A L L O W / D I S A L L O W A N C E S No t e 1: All o c a t e d o n t h e A - 1 Pr o p r i e t a r y I n f o r m a t i o n Dir e c t Ln 3 2 a " 2 Ln 3 3 a " 2 Ln 3 4 a " 2 Ln 3 2 . . 3 4 Mo s s A d a m s , L L P 19 0 ( 2 6 5/6 1 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 RE S E R V E S A N D D E F E R R A L S A-1 5 Pa g e 1 o f 2 IN T E R S T A T E JU R I S So e c i a l A c c s s Lo c a l In f o r m a t i o n Eq u a l Tr a n s o o r t Ca r r i e r C o m m o n U n e B& C In t e r - TO T A L Ch a n T e r m eM - T e r m CM - F a c l l Sw i t c h i n g Dir A s s t su r ~ ~ f r g e Ac s Tra n s m i s s i o n Ta n d e m S w Pa y BF P Re c o r d Pr o s s ex c h a n g e LIN E DE S C R I P T I O N SO U R C E (a ) (b ) (e ) (d ) (e ) in (h ) (;) (j) (k ) (I ) (m ) (n ) (0 ) AP P O R T I O N M E N T FA 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 A-4 , L n 8 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 22 2 1 0 C O E S w i t c h i n g D i s t r A-2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 3 2 2 2 0 C O E O p e r a t o r D l s ! r A-5 , L n 1 6 4 2 2 3 0 C O E T r a n s m i s s i o n O i s t r A-S , L n 7 2 10 0 . 0 0 0 0 % 35 . 2 5 7 0 % 0.6 6 5 3 % 44 . 8 5 7 9 % 19 . 2 1 9 8 % 52 3 1 0 l O T D l s t r A-6 , L n 1 5 62 4 1 0 C & W F D l s t r A- 7 , L n 4 0 10 0 . 0 0 0 0 % 2.5 1 1 1 % 0.4 4 8 4 % 18 . 1 2 2 6 % 78 . 9 1 7 9 % 7 G S F , C O E , I O T , C & W F , E q A £ ( L S ) A- 2 , l n 5 3 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 8 2 6 8 0 C a p i t a l L e a s e s D i s t r A- 8 , l n 1 8 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0.2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 9 2 6 8 0 l e a s e h o l d I m p r o v e D l s t r A- 8 , l n 2 9 10 2 0 0 5 T e l e c o m P l t A d ¡ u s t m e n t A- 9 , l n 1 4 RE S E R V E S & D E F E R R A L S A P P O R T I O N M E N T 11 1 5 0 0 O t h e r J u r i s A s e t s - N e t ln 1 1 a * 7 12 3 1 0 0 A c c u m D e p r - - u p p o r t A s s e t s ln 1 2 a * 1 23 4 , 9 8 6 26 , 9 7 7 45 9 47 3 60 , 5 5 5 50 , 0 6 0 96 , 4 6 2 13 -C O E S w i t c h i n g ln 1 3 a * 2 91 3 , 4 5 9 91 3 , 4 5 9 14 -C O E O p e r a t o r ln 1 4 a * 3 15 -C O E T r a n s m i s s i o n ln 1 5 a * 4 64 2 , 4 8 1 22 6 , 5 2 0 4,2 7 5 28 8 , 2 0 3 12 3 , 4 8 4 16 -l O T ln 1 6 a * 5 17 .C & W F ln 1 7 a * 6 70 3 , 2 3 5 17 , 6 5 9 3,1 5 4 12 7 , 4 4 4 55 4 , 9 7 8 18 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 2 . . 1 7 2,4 9 4 , 1 6 2 27 1 , 1 5 5 4,7 3 4 3,6 2 6 97 4 , 0 1 4 46 5 , 7 0 8 77 4 , 9 2 4 19 3 2 0 0 A c c u m D e p r P r o p e r t y H e l d 20 Fo r F u t u r e T e l e c m U s e ln 2 0 a * 7 21 3 4 0 0 A c c u m A m o r t T a n g i b l e 22 Ca p i t a l le a s e s ln 2 2 a * 8 5,4 5 2 62 6 11 11 1,4 0 5 1,1 6 1 2,2 3 8 23 le a s e h o l d I m p r o v ln 2 3 a * 9 24 T O T A L AC C U M U L A T E D A M O R T . T A N G I B l E ln 2 2 . . 2 3 5,4 5 2 82 6 11 11 1, 4 0 5 1,1 6 1 2,2 3 8 25 3 5 0 0 A c c u m A m o r t - I n t a n g i b l e ln 2 5 a * 7 26 3 6 0 0 A c c u m A m o r t - O t h e r ln 2 6 a * 1 0 27 4 0 4 0 C u s t o m e r D e p o s i t s ln 2 7 a * 7 1, 9 2 9 22 1 4 4 49 7 41 1 79 2 28 Dir e c t A s i g n m e n t ln 2 8 a * 7 29 T O T A L C U S T O M E R D E P O S I T S ln 2 7 . . 2 8 1, 9 2 9 22 1 4 4 49 7 41 1 79 2 Mo s s A d a m s , l L P Pr o p r i e t a r y I n f o r m a t i o n 20 of 26 51 6 1 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 RE S E R V E S A N D D E F E R R A L S A-1 5 Pa g e 2 o f 2 IN T E R S T A T E JU R I S So a c l a l A c c e s s Lo c a l In f o a t i o n Eq u a l Tr a n s p o r t Ca r r i e r C o m m o n L i n e B& C In t e r - T~ ~ t L Ch a ~ b i e r m CM ; ~ ~ r m CM ¡ : i a c i l Sw ¡ l ~ ~ i n g Dlr , , ¡ s t su ~ ~ ~ r g e Ac c e s s Tra n s m i s s i o n Ta n d ~ ~ S w P~ ¡ ; B; , ; R~ ~ ; d Pr c ~ s s ex c ~ ~ n g e LlN E DE S C R I P T I O N SO U R C E h '" AP P O R T I O N M E N T F A C T O R S 30 2 1 1 0 S u p p o r t A s s e t s D i s t r A-4 , L n 8 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 31 2 2 1 0 c e E S w i t c h i n g D l s t r A-2 , L n 7 2 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 32 2 2 2 0 C O E O p e r a t o r O i s t r A-5 , L n 1 6 33 2 2 3 0 C O E T r a n s m i s s i o n D l s t r A-5 , L n 7 2 10 0 . 0 0 0 0 % 35 . 2 5 7 0 % 0.6 6 5 3 % 44 . 8 5 7 9 % 19 . 2 1 9 8 % 34 2 3 1 0 l O T D i s t r A~ 6 , L n 1 5 35 2 4 1 0 C & W F D i s t r A-7 , L n 4 0 10 0 . 0 0 0 0 % 2.5 1 1 1 % 0. 4 4 8 4 % 18 . 1 2 2 6 % 78 . 9 1 7 9 % 36 2 0 0 1 T e l P i t i n S v c D i s t r A-2 , l n 1 5 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % 37 B i 9 T h r e e E x p e n s e s D l s t r A-3 , l n 6 10 0 . 0 0 0 0 % 18 . 6 7 7 5 % 0.3 3 9 7 % 0. 1 2 0 4 % 19 . 5 4 6 9 % 0. 0 0 8 7 % 27 . 9 9 3 2 % 31 . 1 6 4 6 % 1.8 4 4 2 % 0.3 0 4 8 % 38 G S F , C O E , I O T , C & W F , E q A c s ( L S l A-2 , l n 5 3 10 0 . 0 0 0 0 % 11 . 4 8 0 2 % 0.1 9 5 4 % 0. 2 0 1 2 % 25 . 7 6 9 5 % 21 . 3 0 3 6 % 41 . 0 5 0 1 % RE S E R V E S & D E F E R R A L S A P P O R T I O N M E N T 39 4 1 0 0 N e t Cu r De f O p In c Ta x e s 40 Su p p o r t A s s e t s ln 4 0 a " 3 0 41 CO E - S w i t c h i n 9 ln 4 1 a " 3 1 42 CO E - O p e r a t o r ln 4 2 a " 3 2 43 CO E - T r a n s m i s s i o n ln 4 3 a " 3 3 44 lO T ln 4 4 a " 3 4 45 C& W F ln 4 5 a " 3 5 46 No t C l a s s i f e d b y A c c o u n t ln 4 6 a " 3 6 47 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 4 0 . . 4 6 48 D i s t r i b u t i o n o f l i n e 4 8 ln 4 7 / 4 7 a 49 4 3 1 0 O t h e r l o n g - T e r m l i a b i l t i e s ln 4 9 a " 3 8 50 4 3 4 0 N e t N o n c u r r e n t D e f T a x e s 51 Su p p o r t A s s e t s ln 5 1 a * 3 0 52 CO E - S w i t c h i n g ln 5 2 a * 3 1 53 CO E - O p e r a t o r ln 5 3 a * 3 2 54 CO E - T r a n s m i s s i o n ln 5 4 a * 3 3 55 In f o O r l g e r m E q u i p ln 5 5 a * 3 4 56 C& W F ln 5 6 a * 3 5 57 No t C l a s s i f i e d b y A c c ln 5 7 a * 3 6 14 8 , 1 3 6 17 , 0 0 6 28 9 29 8 38 , 1 7 4 31 , 5 5 8 60 , 8 1 0 58 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 5 1 . 5 7 14 8 , 1 3 6 17 , 0 0 6 28 9 29 8 38 , 1 7 4 31 , 5 5 8 60 , 8 1 0 59 4 3 6 0 O t h e r D e f e r r e d C r e d i t s - N e t ln 5 9 a * 3 8 60 4 3 7 0 O t h e r J u r i s l i a b i l i i e s 61 & D e f e r r e d C r e d i t s - N e t ln 6 1 a * 3 8 Al l O W / D I S A L L O W A N C E S A P P O R T I O N M E N T 62 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 6 2 a * 3 8 63 Di r e c t A s s i g n m e n t ln 6 3 a * 3 8 64 T O T A L A C C D E P R / A M O R T A L W l D l S A l l O W ln 6 2 . . 6 3 Mo s s A d a m s , L l P Pr o p r i e t a r y I n f o r m a t i o n 21 of 26 Ru r a l T e l e p h o n e C o m p a n y . I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 LIN E DE S C R I P T I O N SO U R C E In t e r - ex c h a n g e '0 1 6 6 2 0 T e l e p h o n e O p e r a t o r S e r v i c e s St d W o r k S e c o n d s - M a n u a l B o a r d s SW S - M a n u a l B o a r d s % Std W o r k S e c o n d s . T S P S SW S - T S P S % SL d W o r k S e c o n d s . O p e r a t o r s SW S . O p e r t o r % 8 O p e r a t o r S e r v i c e s U n d e r C o n t r a c t 9 T r a n s p o r 10 I n f o r m a t i o n 11 L o c a l S w i t c h i n g 12 A l l O t h e r 13 T o t a l 14 O p e r a t o r S e r v i c e s U n d e r C o n t r a c t % 15 6 6 2 0 L o c a l B u s i n e s s O f f i c e 16 E U S e r v i c e O r d e r P r o c e s s i n g 17 L E C ' s o w n T o l l S e r v i c e 18 C o n c e r n i n g I X C ' s T o l l s e r v i c e 19 E U S O P C o n t a c t % 20 E U P a y m e n t & C o l l e c t i o n 21 L E C ' s O w n T o l l B i l l n g 22 B i l i n g o n B e h a l f o f I X C 23 E n d U s e r C C L C h a r g e s 24 E U P & C % 25 E U B i l i n g I n q u i r y 26 L E C ' s O w n T o l l B I l l n g 27 B i l l n g o n B e h a l f o f I X C 28 E n d U s e r C C L C h a r g e s 29 E U B I % 30 I X C S e r v i c e O r d e r C o n t a c t s 31 M s g T o l l a n d A c c e s s S e r v i c e 32 B i l i n g a n d C o l l e c t i o n S e r v i c e 33 I X C S O C o n t a c t % 34 I X C B i l e d R e v e n u e 35 T o t a l E x c l u d i n g B & C 36 B i l i n g a n d C o l l e c t i o n s 37 l X C P & C % 38 I X C B i l i n g I n q u i r y C o n t a c t s 39 T o t a l E x c l u d i n g B & C 40 B i l l n g a n d C o l l e c t i o n s 41 I X C B I C o n t a c t % 42 P u b l i c T e l e p h o n e R e v e n u e 43 l i m i t e d P u b l i c T e l e p h o n e s 44 P u b l i c I n t e r e s t P a y s t a b o n s 45 I X C 8 1 C o n t a c t % Pro 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 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 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 5/ 6 1 2 0 0 9 DI S T R I B U T I O N F A C T O R S A-1 6 Ca r r i e r C o m m o n l i n e Pa y B F P k) I I B& C Re c o r d P r o c e s s m) ( n 1,7 1 4 10 0 . 0 0 0 0 % 75 , 7 9 7 25 , 2 7 1 10 0 . 0 0 0 0 % 75 , 7 9 7 25 , 2 7 1 10 0 . 0 0 0 0 % 10 0 10 0 . 0 0 0 0 % 10 0 10 0 . 0 0 0 0 % Mo s A d a m s , L L P 22 o f 26 5/6 1 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 To t a l S p e c i a l Li n e Y e a r S o u r c e T o t a l A c c e s s Ad j u s t e d R e v e n u e R e q u i r e m e n t L n 6 + L n 9 + l n 1 2 1 , 1 4 7 , 2 7 5 2 0 5 , 3 9 1 Av e r a g e N e l l n v e s t m e n t A - 1 , L n 3 1 , 5 2 9 , 0 5 4 Ex p e n s e & Ot h e r Ta x e s A - 1 , L n 2 1 9 2 1 , 3 5 1 St a t e I n c o m e T a x A - 1 , L n 1 7 7 , 7 0 3 Un c o l l e c t i b l e s A - 1 , L n 2 2 All o c a t e d L i n e P o r t R e v e n u e R e q u l r m e n t s A - 1 , L n 3 1 Al l o c a t e d T I C R e v e n u e s A - 1 , L n 3 5 To t a l E x p e n s e & O t h e r T a x e s I 9 2 9 , 0 5 3 In c o m e f r o m I n t e r e s t C h a r g e d t o C o n s t r u c t o n A - 1 , L n 2 6 1 , 6 0 5 10 I n c o m e A d j u s t m e n t f o r F I T A - 1 7 , L n 2 6 8 3 , 2 3 1 11 F I T T a x C r e d i t A - 1 , L n 4 5 + 5 8 SE P A R A T I O N I N P U T S A N D F E D R A L I N C O M E T A X A D J U S T M E N T A N A L Y S I S A-1 7 Re v e n u e R e u i r e m e n t s S c i a A c c s s Sw i t c h e d A c c e s s No n A c c e s Ch a n n e l Ch a n n e l M i l e a g e C h a n n e l M l l e a g Lo c l In f o r m a t i o n B& C Te r m i n a t i o n Te r m i n a t i o n Fa c i l l Sw l t c h l n A Su r c h a e Tra n s o r t IX 19 9 , 7 9 6 3, 5 5 5 2,0 4 0 15 7 , 6 9 1 60 30 0 , 5 1 4 14 , 4 6 0 ST E P A - D e t e r m i n e E f f c t i v e T a x R a t e 12 E f f e c t i v e F I T R a t e 13 G r o s - u p F a c t o r 14 R e t u r n o n I n v e s t m e n t 15 In c o m e Ad j u s t m e n t fo r FI T 16 F I T T a x C r e d i t s 17 F I T A m o u n t a t E C ' s E f f e c t i v e F I T R a t e A- 1 , L n 5 0 / 4 7 25 . 3 9 0 0 % 34 . 0 3 0 3 % 17 2 , 0 1 9 31 , 5 3 0 47 , 8 0 9 LN DE S C R I P T I O N SO U R C E TO T A L CO M P A N Y A- 1 , L n 5 A- 1 , L n 4 6 - 4 5 A- 1 , L n 4 5 ((L n 1 4 - 1 5 - 1 6 ) ' 1 3 ) - 1 6 ST E P B - D e t e r i n e E C ' s T a x All o w a n c e b a s e d u p o n N E C A S e t t l e m e n t S y s t e m C a l c u l a t i o n 17 M a x m u m T a x R a t e P e r N E C A R e c o r d s 1 3 5 . 0 0 0 0 % 18 G r o s - u p F a c t o r 5 3 . 8 4 6 2 % 19 F I T B a s e A m o u n t L n 1 4 - 1 5 - 1 6 1 4 0 , 4 8 9 20 F I T a t M a x i m u m T a x R a t e 7 5 , 6 4 8 ST E P C - G r o s s u p o f D i f f e r e n c e B e t w e e n E f f e c t i v e R a t e a n d M a x m u m R a t e 21 D i f f e r e n c e i n I n c o m e T a x A m o u n t s ln 1 7 - 2 0 I 27 ' 8 3 9 1 3, 5 3 4 57 87 1 (2 1 1 ) 22 G r o s s u p o f D i f f e r e n c e I n T a x A m o u n t s Ln 2 1 / 1 8 51 , 7 0 1 6,5 6 4 10 7 16 2 (3 9 2 ) 23 A m o u n t t o B e R e p o r t e d a s I n c o m e Ad j u s t m e n t f o r F I T Ln 1 5 + 2 2 83 , 2 3 1 10 , 1 8 3 16 8 22 5 7,7 3 3 ST E P D - V e r i f i c a t i o n o f L i n e 1 2 C o m p u t a t i o n 24 ( ( L n 3 - L n 1 2 - L n 5 ) x L n 7 ) - L n 5 I 47 , 8 0 9 I 6,0 7 0 99 14 9 1 (3 6 3 7,3 9 4 13 , 7 3 2 16 , 9 7 7 31 , 5 2 9 20 , 4 4 9 44 , 4 7 2 12 , 6 9 8 29 , 1 5 6 In c o m e A d j u s t m e n t f o r F I T : R e c a l c u l a t i o n 25 I n t e r s t a t e A f t e r T a x I n c o m e ( A 1 , I n . 2 0 ) 26 I n t e r s t a t e F I T ( A 1 , I n . 4 5 ) 14 0 , 4 8 9 47 , 8 0 9 18 8 , 2 9 8 Ad j u s t m e n t : (L n 1 + L n 2 ) * . 3 5 - L n 2 51 , 7 0 1 0.3 5 Co m m o n L i n e Tr a f f c S e n s i t i v e - S W Tr a f f c S e n s i t i v e - S P B& C Fix e d Mi s c . I n c o m e In c o m e A d j . FI T Ad j u s t m e n t Ch a r g e s Ad j u s t m e n t (c o l s 2 + 3 - ) (1 ) (2 ) (3 ) (4 ) (5 A1 1 n . 4 5 A1 I n . 1 1 A1 ( n . 1 9 29 , 1 5 6 31 , 5 2 9 12 , 9 4 3 44 , 4 7 2 12 , 3 3 5 13 , 3 3 9 14 , 8 4 2 28 , 1 8 1 6,3 1 8 6,8 3 2 3,7 4 5 10 , 5 7 7 47 , 8 0 9 51 , 7 0 1 31 , 5 3 0 83 , 2 3 : I OK 51 . 7 0 1 Ad j u s t m e n t b y P o o l : To t a l Ch e c k s m Mo s s A d a m s , L L P Pr o p r i e t a r y I n f o r m a t i o n 23 o f 26 5/6 / 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y . I d a h o Stu d y A r e a : 4 7 2 2 3 3 RE V E N U E R E Q U I R E M E N T S U M M A R Y S-1 Stu d y Y e a r : 2 0 0 7 TO T A L In t e r L A T A CO M P A N Y MS G PL LI N E DE S C R I P T I O N SO U R C E a b 1 N e t T e l e c o m P l a n t Ln 4 6 4,7 4 2 , 3 1 7 1,3 5 2 , 2 7 0 17 6 , 7 8 3 10 5 , 3 8 5 1,0 7 3 , 9 8 7 7,2 1 9 22 6 , 4 1 7 1, 8 0 0 , 2 5 5 2 R a t e B a s e A d j u s t m e n t # 1 Re c o r d s 3 R A T E BA S E Ln 1 - 2 4,7 4 2 , 3 1 7 1,3 5 2 , 2 7 0 17 6 , 7 8 3 10 5 , 3 8 5 1,0 7 3 , 9 8 7 7,2 1 9 22 6 , 4 1 7 1,8 0 0 , 2 5 5 4 R a t e o f R e t u r n Re c o r d s 8.0 3 1 5 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 11 . 2 5 0 0 % 6.5 0 0 0 % 6.5 0 0 0 % 6.5 0 0 0 % 6.5 0 0 0 % 6. 5 0 0 0 % 6. 5 0 0 0 % 6.5 0 0 0 % 5 R E T U R N O N R A T E B A S E Ln 3 . 4 38 0 , 8 8 1 15 2 , 1 3 0 19 , 8 8 8 6,8 5 0 69 , 8 0 9 46 9 14 , 7 1 7 11 7 , 0 1 7 6 R e t u r n A d j u s t m e n t # 1 Re c o r d s 7 N E T RE T U R N Ln 5 - B 38 0 , 8 8 1 15 2 , 1 3 0 19 , 8 8 8 I :1 6,8 5 0 :1 69 , 8 0 9 46 9 1 14 , 7 1 7 1 :1 11 7 , 0 1 7 8 F i x e d C h a r g e s Ln 2 4 99 , 5 6 1 27 , 7 6 7 3,7 6 2 2,2 6 5 23 , 0 3 7 15 5 4, 8 6 3 37 , 7 1 1 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 o l l T a x e s Ln S O 11 D e p r e c i a t i o n A d j u s t m e n t Ln S 3 12 F I T A l l o w a n c e s / D i s a l l o w a n c e s Ln 2 2 13 In c A d j A l i c e o n 2 0 0 1 Ln 5 9 + 6 0 14 In c A d j A l i c e o n B i g 3 E x p Ln 6 1 + 6 2 15 T o t a l M i s e In c Ad j u s t m e n t Ln 6 3 16 A F T E R T A X I N C O M E No t e 1 28 1 , 3 2 0 12 4 , 3 6 3 16 , 1 2 6 4,5 8 5 46 , 7 7 2 31 4 9, 8 5 4 79 , 3 0 5 17 S t a t e I n c o m e T a x Ln 5 2 o r $ - 1 4 , L n 2 0 15 , 4 2 4 6, 8 1 9 88 4 25 1 2,5 6 4 17 54 0 4,3 4 8 18 S t a t e i r e A m o r t i z a t i o n Ln 4 5 19 N e t F e d e r a l In c o m e T a x Ln 4 3 95 , 7 3 4 42 , 3 2 1 5,4 8 8 1,5 6 0 15 , 9 1 7 10 7 3, 3 5 3 26 , 9 8 8 20 F e d e r a l i r e A m o r t z a t i o n Ln 4 4 21 O p e r a t i n g E x p e n s e s & T a x e s Ln 1 7 2,1 5 4 , 6 2 5 78 8 , 7 7 1 13 2 , 5 7 9 42 , 5 2 7 44 8 , 2 0 0 3, 6 3 4 10 2 , 6 8 0 63 6 , 2 3 3 22 N o n o p e r a t i n g E x p e n s e s S-1 0 , L n 1 7 + 1 8 23 U n c o l l e c t i b l e s Ln 5 7 (1 1 4 ) (1 1 4 ) 24 O t h e r A d j u s t m e n t s ( N e t R R ) Re c o r d s 25 N E T R E V E N U E R E Q U I R E M E N T Ln 7 + 1 7 . . 2 3 - 2 4 2,6 4 6 , 5 5 0 99 0 , 0 4 2 15 8 , 8 3 9 51 , 1 8 9 53 6 , 4 9 1 4,2 2 7 12 1 , 2 9 1 78 4 , 4 7 2 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 l w F d s U s e d O u r C o n s t r Ln 1 5 4,1 2 4 1, 4 1 5 19 1 83 84 1 8 19 6 1,3 9 1 28 R E V E N U E R E Q U I R E M E N T Ln 2 5 + 2 6 . 2 7 2,6 4 2 , 4 2 6 98 8 , 6 2 7 15 8 , 6 4 9 51 , 1 0 6 53 5 , 6 4 9 4,2 1 9 12 1 , 0 9 5 78 3 , 0 8 1 29 D i s t r i b u t i o n o f L i n e 3 ( Ln 2 8 / 2 8 a 10 0 . 0 0 0 0 % 37 . 4 1 3 6 % 6.0 0 3 9 % 1.9 3 4 1 % 20 . 2 7 1 1 % 0. 1 5 9 7 % 4.5 8 2 7 % 29 . 6 3 4 9 % I IN C O M E T A X E S I 30 N e t R e t u r n Ln 7 I 38 0 , 8 8 1 I 15 2 , 1 3 0 19 ' 8 8 8 1 :1 8,8 5 0 :1 69 , 8 0 9 48 9 1 14 ' 7 1 7 1 :1 11 7 , 0 1 7 31 F i x e d C h a r g e s Ln 8 99 , 5 6 1 27 , 7 6 7 3,7 6 2 2,2 6 5 23 , 0 3 7 15 5 4,8 6 3 37 , 7 1 1 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 l l T a x e s Ln 1 0 34 D e p r e c i a t i o n A d j u s t m e n t Ln 1 1 35 F I T . A l l o w a n c e s / D i s a l l o w a n c e s Ln 1 2 36 In c A d j A l o c o n 2 0 0 1 Ln 1 3 37 In c A d j A 1 l o c o n B i g 3 E x p Ln 1 4 38 F e d e r a l I T C A m o r t z a t i o n Ln 4 4 39 To t a l I n c o m e A d j u s t m e n t s Ln 3 1 + 3 5 . . 3 7 99 , 5 6 1 27 , 7 6 7 3,7 6 2 2,2 6 5 23 , 0 3 7 15 5 4,8 6 3 37 , 7 1 1 40 F e d e r a l T a x b l e I n c o m e Ln 3 D - 3 9 G r o s s U p 37 7 , 0 5 4 16 6 , 6 8 4 21 , 6 1 4 6,1 4 5 62 , 6 8 9 42 1 13 , 2 0 7 10 6 , 2 9 3 41 F e d e r a l I n c o m e T a x 25 . 3 9 0 0 % 95 , 7 3 4 42 , 3 2 1 M8 8 1, 5 6 0 15 , 9 1 7 10 7 3, 3 5 3 26 , 9 8 8 42 F e d e r a l S u r - T a x A l l o c a t i o n Re c o r d s 43 N e t F e d e r a l In c o m e T a x Ln 4 1 - 4 2 - 3 8 95 , 7 3 4 42 , 3 2 1 5,4 8 8 1, 5 6 0 15 , 9 1 7 10 7 3, 3 5 3 26 , 9 8 8 44 N e t Re t u m Ln 3 0 38 0 , 8 8 1 15 2 , 1 3 0 19 , 8 8 8 6,8 5 0 69 , 8 0 9 46 9 14 , 7 1 7 11 7 , 0 1 7 45 F i x e d C h a r g e s Ln 3 1 99 , 5 6 1 27 , 7 6 7 3, 7 6 2 2,2 6 5 23 , 0 3 7 15 5 4, 8 6 3 37 , 7 1 1 46 O t h e r S I T Ad j u s t m e n t s Re c o r d s 47 F e d e r a l In c o m e T a x Ln 4 1 95 , 7 3 4 42 , 3 2 1 5, 4 8 8 1, 5 6 0 15 , 9 1 7 10 7 3, 3 5 3 26 , 9 8 8 48 S t a l e T a x b l e I n c o m e Ln 4 4 - 4 7 G r o s s U p 39 2 , 4 7 8 17 3 , 5 0 3 22 , 4 8 6,3 9 7 65 , 2 5 4 43 8 13 , 7 4 7 11 0 , 6 4 1 49 S t a t e I n c o m e T a x 3.9 3 0 0 % 15 , 4 2 4 6,8 1 9 88 4 25 1 2,5 6 4 17 54 0 4,3 4 8 50 S t a t e S u r - T a x A l l o c a t i o n Re c o r d s 51 S t a t e I T C A m o r t i z a t i o n Ln 4 5 52 N e t S t a t e I n c o m e T a x Ln 4 9 - 5 0 - 5 1 I 15 , 4 2 4 1 6,8 1 9 8B 4 1 -I 25 1 -I 2,5 6 4 17 1 54 0 I -I 4,3 4 8 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 10 1 2 3 5/6 / 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 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 S- 2 St u d y Y e a r : 2 0 0 7 Tõ CO M P A N Y MS G PL MS G PL MS G PL MS G PL LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (0 ) (d ) (e ) (0 (9 ) (h ) (i ) 12 1 1 0 L a n d & S u p p o r t As s e t s ,L n 1 3 1, 1 6 1 , 7 9 1 39 8 , 5 6 2 53 , 7 1 6 23 , 2 8 6 23 6 , 9 8 4 2,2 1 6 55 , 1 3 6 39 1 , 8 9 0 22 2 1 0 C o e - S w i t c h i n g ,L n 3 6 1, 0 7 4 , 6 5 8 91 3 , 4 5 9 16 1 , 1 9 9 3 2 2 2 0 C O E - O p e r a t o r ,L n 2 3 4 2 2 3 0 C O E - T r a n s m i s s i o n ,L n 7 6 2,1 8 3 , 7 2 8 66 7 , 0 1 4 37 3 , 9 3 2 49 , 6 0 7 50 8 , 2 1 7 4,2 5 6 18 0 , 5 6 6 40 0 , 1 3 6 52 3 1 0 I n f o O r i g l T e r m E q u i p ,L n 1 1 62 4 1 0 C & W F ,L n 4 2 5,8 4 7 , 1 2 6 1,5 4 3 , 2 5 3 47 , 0 6 6 13 2 , 8 9 7 1,3 4 9 , 1 4 0 13 , 1 1 3 25 1 , 5 6 5 2,5 1 0 , 0 9 3 7 To t a l C O E , l O T , C & W F Ln 2 . . 6 9,1 0 5 , 5 1 2 3,1 2 3 , 7 2 6 42 0 , 9 9 8 18 2 , 5 0 4 1,8 5 7 , 3 5 7 17 , 3 6 9 43 2 , 1 3 1 3,0 7 1 , 4 2 7 8 Dis 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 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2. 0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % 33 . 7 3 1 5 % 9 E q u a l A c c s s . I n v e s t m e n t ,L n 2 2 10 2 6 8 0 T a n g i b l e A s s e t s ,L n 3 1 30 , 3 7 6 10 , 4 2 1 1, 4 0 4 60 9 6,1 9 6 58 1,4 4 2 10 , 2 4 6 11 T E L E C O M P L T I N S V C - E X C L 2 6 9 0 Ln 1 + 7 + 9 + 1 0 10 , 2 9 7 , 6 7 8 3,5 3 2 , 7 1 0 47 6 , 1 1 8 20 6 , 3 9 9 2,1 0 0 , 5 3 7 19 , 8 4 3 48 8 , 7 0 9 3,4 7 3 , 5 6 3 12 D i s t r i b u t i o n o f L i n e 1 1 Ln 1 1 / 1 1 a 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % 33 . 7 3 1 5 % 13 2 6 9 0 I n t a n g i b l e A s s e t s ,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 C Ln 1 1 + 1 3 10 , 2 9 7 , 6 7 8 3,5 3 2 , 7 1 0 47 6 , 1 1 8 20 6 , 3 9 9 2,1 0 0 , 5 3 7 19 , 6 4 3 48 8 , 7 0 9 3,4 7 3 , 5 6 3 15 Dis t r i b u t i o n o f U n e 1 4 Ln 1 4 1 1 4 a 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % 33 . 7 3 1 5 % 16 2 1 1 0 L a n d A s s e t s ,L n 1 2 17 2 0 0 1 T P I S x l L a n d Ln 1 4 - 1 6 10 , 2 9 7 , 6 7 8 3,5 3 2 , 7 1 0 47 6 , 1 1 8 20 6 , 3 9 9 2, 1 0 0 , 5 3 7 19 , 6 4 3 48 8 , 7 0 9 3,4 7 3 , 5 6 3 18 Dis t r i b u t i o n o f L i n e 1 7 Ln 1 7 / 1 7 a 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % 33 . 7 3 1 5 % 19 2 0 0 2 P r o p H I d F u t T e l e c o m U s e ,L n 6 2,0 0 0 68 6 92 40 40 8 4 95 67 5 20 2 0 0 3 P l a n t U n d e r C o n s t r u c t i o n ,L n 1 0 75 , 5 0 0 25 , 9 0 1 3,4 9 1 1, 5 1 3 15 , 4 0 1 14 4 3, 5 8 3 25 , 4 6 7 21 2 0 0 5 T e l e c o m P l a n t A d j u s t m e n t ,L n 1 4 22 T O T A L T E L E C O M P L A N T Ln 1 4 + 1 9 . . 2 1 10 , 3 7 5 , 1 7 8 3, 5 5 9 , 2 9 7 47 9 , 7 0 2 20 7 , 9 5 2 2, 1 1 6 , 3 4 5 19 , 7 9 0 49 2 , 3 8 7 3,4 9 9 , 7 0 5 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 ,L n 2 0 21 8 , 8 7 2 57 , 7 6 8 1,7 6 2 4,9 7 5 50 , 5 0 2 49 1 9,4 1 7 93 , 9 5 9 24 1 5 0 0 O t h e r J u r i s A s s e t s - N e t ,L n 1 4 25 3 1 0 0 A c c u m u l a t e d D e p r e c i a t i o n ,L n 2 8 5,6 1 8 , 3 9 0 2,2 0 4 , 0 5 3 29 0 , 1 0 9 10 0 , 7 9 5 1,0 2 6 , 3 7 4 12 , 3 9 6 25 9 , 3 0 3 1,7 2 5 , 3 5 9 26 E q u a l A c c s s - A c c u r n D e p r e c i a t i o n ,L n 2 4 27 3 2 0 0 A c e D e p - H l d f o r F u t U s e ,L n 3 0 28 3 4 0 0 A c e u m A m o r t - T a n g i b l e ,L n 3 1 . . 3 2 I 14 , 0 0 5 1 4,8 0 4 64 8 I -I 28 1 -I 2,8 5 7 27 1 66 5 4,7 2 4 29 3 5 0 0 A c u m A m o r t - I n t a n g i b l e ,L n 3 3 30 3 6 0 0 A c u m A m o r t - O t h e r ,L n 3 4 31 4 1 0 0 N e t Cu r De f O p In c Ta x e s ,L n 4 6 32 4 3 4 0 N o n c u r D e f O p e r I n c T a x ,L n 6 6 1 38 0 , 5 2 6 1 13 0 , 5 4 3 17 , 5 9 4 1 -I 7,6 2 7 -I 77 , 6 2 0 72 6 1 18 , 0 5 9 12 8 , 3 5 7 33 E q u a l A c c s s - D e f e r r e d O p e r I n c T a x e s ,L n 2 5 34 4 3 6 0 O t h e r D e f e r r e d C r e d i t s - N e t ,L n 6 7 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 - N e t ,L n 6 9 36 N E T T E L E C O M P L A N T A Ln 2 2 + 2 3 - 2 4 . . 3 5 I 4,5 8 1 , 1 3 1 1 1, 2 7 7 , 6 6 5 17 3 , 1 1 3 1 :1 10 4 , 2 2 3 :1 1,0 5 9 , 9 9 6 7, 1 3 3 1 22 3 , 7 7 7 1,7 3 5 , 2 2 4 37 D i s t r i b u t i o n o f L i n e 3 6 Ln 3 6 / 3 6 a 10 0 . 0 0 0 0 % 27 . 8 8 9 7 % 3.7 7 8 8 % 2.2 7 5 0 % 23 . 1 3 8 3 % 0. 1 5 5 7 % 4.8 8 4 8 % 37 . 8 7 7 6 % 38 1 4 0 2 R u r a l T e l B a n k S t o c k B ,L n 1 6 39 C a s h W o r k i n g C a p i t a l C ,L n 2 1 16 8 , 1 4 2 1 76 , 3 0 6 3,9 0 0 1 -I 1, 2 6 2 -I 15 , 0 0 2 96 1 2, 8 7 5 66 , 7 0 2 40 E q u a l A c c e s s - U n a m o r t i z e d E x p e n s e s D ,L n 2 6 41 I n v e s t m e n t A l l o w / D i s a l l o w E ,L n 3 1 42 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 F ,L n 7 2 43 4 0 4 0 C u s t o m e r D e p o i t s G ,L n 3 7 1 4,9 5 6 1 1,7 0 0 22 9 1 -I 99 -I 1,0 1 1 91 23 5 1,6 7 2 44 4 3 1 0 O t h e r Lo n g - T e r m L i a b . H ,L n 5 7 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 d 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 ) 1 4,7 4 2 , 3 1 7 1 1,3 5 2 , 2 7 0 17 6 , 7 8 3 1 :1 10 5 , 3 8 5 :1 1,0 7 3 , 9 8 7 7,2 1 9 1 22 6 , 4 1 7 1,8 0 0 , 2 5 5 47 D i s t r i b u t i o n o f L i n e 4 6 Ln 4 6 / 4 6 a 10 0 . 0 0 0 0 % 26 . 5 1 5 0 % 3.7 2 7 8 % 2.2 2 2 2 % 22 . 6 4 6 9 % 0. 1 5 2 2 % 4. 7 7 4 4 % 37 . 9 6 1 5 % 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 2o f 2 3 5/ 6 / 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y . I d a h o Stu d y A r e a : 4 7 2 2 3 3 SE P A R A T E D E X P E N S E S U M M A R Y S- 3 St u d y Y e a r : 2 0 0 7 TO T A L In t e r L A T A CO M P A N Y MS G PL MS G PL LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (e ) 1 P i t S p e c E x p A c c t 6 2 1 0 , 6 2 2 0 2 62 3 0 , 6 3 1 0 , 6 4 1 0 Ln 3 0 65 3 , 4 1 2 26 6 , 0 6 6 50 , 4 6 11 , 6 7 4 11 9 , 1 0 7 1, 0 6 9 33 , 3 6 0 17 1 , 6 7 0 3 P I N o n s p e c A c c u n t 6 5 3 0 Ln 1 9 11 3 , 4 1 6 38 , 9 0 8 5, 2 4 4 2, 2 7 3 23 , 1 3 5 21 6 5,3 8 3 38 , 2 5 7 4 C u s t O p e r A c e s 6 6 1 0 , 6 6 2 0 Ln 5 7 93 , 5 9 9 30 , 2 2 8 2, 4 4 4 35 , 1 2 1 25 , 8 0 5 5 T O T A L B I G T H R E E E X P E N S E S Ln 2 . . 86 0 , 4 2 7 33 5 , 2 2 4 55 , 6 9 0 16 , 3 9 1 17 7 , 3 6 3 1,2 8 5 38 , 7 4 2 23 5 , 7 3 2 6 D i s t r i b u t i o n o f U n e 5 Ln 5 / 5 a 10 0 . 0 0 0 0 % 38 . 9 6 0 2 % 6. 4 7 2 3 % 1.9 0 5 0 % 20 . 6 1 3 4 % 0.1 4 9 4 % 4. 5 0 2 7 % 27 . 3 9 7 1 % 7 P l a n t S p e c i f i c E x p e n s e s Ln 3 1 86 6 , 1 9 5 33 9 , 0 8 5 60 , 2 8 4 15 , 9 3 8 16 2 , 5 1 1 1,4 7 5 43 , 4 5 8 24 3 , 4 4 4 8 P l a n t N o n s p e c i f i c E x p e n s e s Ln 4 4 68 1 . 7 5 2 20 7 , 5 8 1 42 , 6 8 8 14 , 7 9 0 15 0 , 6 2 9 1,3 9 2 37 , 1 0 4 22 7 , 5 6 8 9 C u s t o m e r O p e r a t i o n s E x p e n s e s Ln 5 7 93 , 5 9 9 30 , 2 2 8 2, 4 4 4 35 , 1 2 1 25 , 8 0 5 10 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 s Ln 1 6 40 5 , 0 5 3 17 4 , 0 8 0 24 , 4 9 1 7, 2 0 8 78 , 0 0 1 56 5 17 , 0 3 8 10 3 , 6 7 0 11 7 3 0 0 C o n t r i b u t i o n s Ln 1 6 8,5 2 1 3. 6 2 51 5 15 2 1,6 4 1 12 35 8 2,1 8 1 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 2,0 5 5 , 1 2 0 75 4 , 6 3 5 12 7 , 9 7 9 40 , 5 3 3 42 7 , 9 0 3 3,4 4 4 97 , 9 5 8 60 2 , 6 6 9 13 O p e r a t i n g T a x s Ln 2 6 99 , 5 0 5 34 , 1 3 6 4,6 0 1 1, 9 9 4 20 , 2 9 7 19 0 4, 7 2 2 33 , 5 6 5 14 E q u a l A c c s s E x p e n s e s Ln 3 5 15 E x p e n s e A l l o w a n c e s / D i s a l l o w a n c e s Ln 4 0 16 5 2 4 0 R e n t R e v e n u e s Ln 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 2,1 5 4 , 6 2 5 78 8 , 7 7 1 13 2 , 5 7 9 42 , 5 2 7 44 8 , 2 0 0 3,6 3 4 10 2 , 6 8 0 63 6 , 2 3 3 18 D i s t r i b u t i o n o f L i n e 1 7 Ln 1 7 / 1 7 a 10 0 . 0 0 0 0 % 36 . 6 0 8 3 % 6.1 5 3 2 % 1. 9 7 3 8 % 20 . 8 0 1 8 % 0.1 6 8 6 % 4. 7 6 5 6 % 29 . 5 2 8 7 % 19 T o t a l D e p r & A m o r t Ln 4 3 56 6 , 8 8 6 16 8 , 1 7 5 37 , 3 7 7 12 , 4 8 8 12 7 , 1 9 9 1,1 7 3 31 , 6 5 2 18 8 , 8 2 2 20 F i x e d C h a r g e s Ln 2 4 99 , 5 6 1 27 . 7 6 7 3.7 6 2 2,2 6 5 23 , 0 3 7 15 5 4,8 6 3 37 . 7 1 1 21 T o t a l O p e r a t i n g R e v e n u e Ln 3 3 2,5 0 7 , 7 3 6 1, 2 3 6 , 4 6 7 34 , 6 5 3 1,2 3 6 , 6 1 6 22 T o t a l O p e r a t i n g E x p e n s e & T a x e s Ln 1 7 2,1 5 4 , 6 2 5 78 8 , 7 7 1 13 2 , 5 7 9 42 , 5 2 7 44 8 , 2 0 0 3,6 3 4 10 2 , 6 8 0 63 6 , 2 3 3 23 U n c o l l e c t i b l e s Ln 5 7 (1 1 4 ) (1 1 4 ) 1 24 F i x e d C h a r g e s Ln 2 0 99 , 5 6 1 27 , 7 6 7 3,7 6 2 2,2 6 5 23 , 0 3 7 15 5 4,8 6 3 37 , 7 1 1 25 I n c o m e A d j u s t m e n t s Ln 6 3 26 N e t I n c o m e Ln 2 1 . . 2 5 25 3 , 6 6 4 41 9 , 9 2 8 (1 3 6 , 3 4 1 ) (4 4 , 7 9 2 ) (4 3 6 , 5 8 4 ) (3 , 7 8 9 ) (1 0 7 , 5 4 4 ) 56 2 , 7 8 6 27 D i s t r i b u t i o n o f L i n e 2 6 Ln 2 6 / 2 6 a 10 0 . 0 0 0 0 % 16 5 . 5 4 5 1 % (5 3 . 7 4 8 9 % ) (1 7 . 6 5 8 0 % ) (1 7 2 . 1 1 1 1 % ) (1 . 4 9 3 6 % ) (4 2 . 3 9 6 1 % ) 22 1 . 8 6 2 6 % 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 6 . 1 9 + 2 0 1,6 8 7 , 3 0 0 64 8 , 3 6 4 98 , 9 6 4 32 , 3 0 4 34 4 , 0 3 8 2, 6 1 6 75 , 8 9 1 48 5 , 1 2 2 29 D i s t r i b u t i o n o f L i n e 2 8 Ln 2 8 / 2 8 a 10 0 . 0 0 0 0 % 38 . 4 2 6 1 % 5.8 6 5 2 % 1.9 1 4 6 % 20 . 3 8 9 9 % 0. 1 5 5 0 % 4.4 9 7 8 % 28 . 7 5 1 4 % I IN C O M E T A X C A L C U L A T I O N I 31 O t h e r O p e r a t i n g I n c o m e Ln 3 2 32 A F U D C Ln 1 5 I 4'1 2 4 1 1,4 1 5 19 ~ 1 :1 83 :1 84 1 ~ 1 19 6 1,3 9 1 33 O p e r a t i n g R e v e n u e Ln 3 3 - L n 3 1 2,5 0 7 , 7 3 6 1, 2 3 6 , 4 6 7 34 , 6 5 3 1,2 3 6 ; 6 1 6 34 U n c o l l e c t i b l e R e v e n u e Ln 5 7 11 4 11 4 34 I n c o m e E f f e c t J u r i s d i c t i o n a l D i f f e r e n c e Ln 6 0 34 I R S I n c o m e A d j u s t m e n t Ln 6 2 35 T O T A L R E V E N U E & O T H E R I N C O M E Ln 3 1 . . 3 4 2,5 1 1 , 9 7 4 1, 2 3 7 , 8 8 2 19 1 83 35 , 4 9 4 8 19 6 1,2 3 8 , 1 2 1 36 C o n t r i b u t i o n s Ln 1 6 8,5 2 1 3, 6 6 2 51 5 15 2 1,6 4 1 12 35 8 2,1 8 1 37 O p e r a t i n g E x p e n s e s Ln 1 2 - L n 1 1 2,0 4 6 , 5 9 9 75 0 , 9 7 3 12 7 , 4 6 3 40 , 3 8 1 42 6 , 2 6 2 3,4 3 2 97 , 6 0 0 60 0 , 4 8 8 38 O p e r a t i n g T a x e s Ln 2 6 99 , 5 0 5 34 , 1 3 6 4,6 0 1 1,9 9 4 20 , 2 9 7 19 0 4,7 2 2 33 , 5 6 5 39 F i x e d C h a r g e s Ln 2 4 99 , 5 6 1 27 , 7 6 7 3.7 6 2 2,2 6 5 23 , 0 3 7 15 5 4,8 6 3 37 . 1 1 40 T O T A L O P E R A T I N G E X P E N S E S Ln 3 6 . . 3 9 2,2 5 4 , 1 8 6 81 6 , 5 3 9 13 6 , 3 4 1 44 , 7 9 2 47 1 , 2 3 7 3.7 8 9 10 7 , 5 4 4 67 3 , 9 4 4 41 Sta t e T a x b l e I n c o m e Ln 3 5 - L n 4 0 25 7 , 7 8 8 42 1 , 3 4 3 (1 3 6 , 1 5 1 ) (4 4 , 7 0 9 ) (4 3 5 , 7 4 3 ) (3 , 7 8 1 ) (1 0 7 , 3 4 8 ) 56 4 , 1 7 7 42 S t a t e I n c o m e T a x 3.9 3 0 0 % 10 , 1 3 1 16 , 5 5 9 (5 , 3 5 1 ) (1 , 7 5 7 ) (1 7 , 1 2 5 ) (1 4 9 ) (4 , 2 1 9 ) 22 , 1 7 2 43 F e d e r a l T a x b l e I n c o m e Ln 3 5 - L n 4 0 25 7 , 7 8 8 42 1 , 3 4 3 (1 3 6 , 1 5 1 ) (4 4 , 7 0 9 ) (4 3 5 , 7 4 3 ) (3 , 7 8 1 ) (1 0 7 , 3 4 8 ) 56 4 , 1 7 7 44 S t a t e I n c o m e T a x Ln 4 2 10 , 1 3 1 16 , 5 5 9 (5 , 3 5 1 ) (1 , 7 5 7 ) (1 7 , 1 2 5 ) (1 4 9 ) (4 , 2 1 9 ) 22 , 1 7 2 45 N e t F e d e r a l T a x b l e I n c o m e Ln 4 3 - L n 4 4 24 7 , 6 5 7 40 4 , 7 8 4 (1 3 0 , 8 0 0 ) (4 2 , 9 5 2 ) (4 1 8 , 6 1 8 ) (3 , 6 3 2 ) (1 0 3 , 1 2 9 ) 54 2 , 0 0 5 46 F e d e r a l In c o m e T a x 25 . 3 9 0 0 % 62 , 8 8 0 10 2 , 7 7 5 (3 3 , 2 1 0 ) (1 0 , 9 0 6 ) (1 0 6 , 2 8 7 ) (9 2 2 ) (2 6 , 1 8 5 ) 13 7 , 6 1 5 47 A m o r t i z a t i o n o f I n v e s t m e n t T a x C r e d i t Ln 4 4 48 F e d e r a l In c o m e T a x Ln 4 6 - L n 4 7 62 . 8 8 0 10 2 , 7 7 5 (3 3 , 2 1 0 ) (1 0 , 9 0 6 ) (1 0 8 , 2 8 7 ) (9 2 2 ) (2 6 , 1 8 5 ) 13 7 , 6 1 5 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 30 f 2 3 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 C a r r i 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 , I O T , C & W F 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 - J o i n t x l G S 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 i 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 i b u t i o n o f L i n e 8 10 L a n d 11 D i r e c t A s s i g n m e n t 12 T o t a l L a n d 13 T O T A L L A N D & S U P P O R T A S S E T S 14 D i s t r i b u t i o n o f L i n e 1 3 No t e 1: If C a r r i e r C l a s s i f i c a t o n = A , t h e n If C a r r i e r C l a s s i f i c a t o n = B , t h e n Pro p r i e t a r y I n f o r m a t i o n IN T E R S T A T E T O L L TO T A L In t e r L A T A CO M P A N Y MS G PL SO U R C E (a ) (b ) (e ) Re c o r d s B Ln 6 10 0 . 0 0 0 0 % 38 . 9 6 0 2 % 6. 4 7 2 3 % Ln 8 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4. 6 2 3 6 % No t e 1 1, 1 6 1 , 7 9 1 39 8 , 6 6 2 53 , 7 1 6 No t e 1 Di r e c t Ln 5 . . 7 I 1, 1 6 1 , 7 9 1 1 39 6 , 5 6 2 53 , 7 1 6 Ln 8 / 8 a 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % No t e 1 Di r e c t Ln 1 0 . . 1 1 Ln 8 + 1 2 39 6 , 5 6 2 53 , 7 1 6 Ln 1 3 / 1 3 a 34 . 3 0 5 9 % 4.6 2 3 6 % 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 0 a " ' 3 Mo s s A d a m s , L L P 5/ 6 / 2 0 0 9 GE N E R A L S U P P O R T F A C I L I T I E S IN i ; R A S T A T E T O L L 1.9 0 5 0 % 20 . 6 1 3 4 % 0.1 4 9 4 % 4.5 0 2 7 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4.7 4 5 8 % 23 , 2 8 6 23 6 , 9 8 4 2,2 1 6 55 , 1 3 6 23 , 2 8 6 23 6 , 9 8 4 2,2 1 6 55 , 1 3 6 2. 0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % 23 , 2 8 6 23 6 , 9 8 4 2,2 1 6 55 , 1 3 6 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % S- 4 27 . 3 9 7 1 % 33 . 7 3 1 5 % 39 1 , 8 9 0 39 1 , 8 9 0 33 . 7 3 1 5 % 39 1 , 8 9 0 33 . 7 3 1 5 % 40 1 2 3 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 W S W S P e t - S w i t c h b o a r d s 2 W S W S P 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 H M O U P e t 5 W S W S P c t - T S P S O p e r P o s i t i o n 6 R e a l P r o c e s s o r T i m e P c t - R T A 7 R e a l P r o c e s s o r T i m e P c t - T S P S 8 R E L M O U ' s - T a n d e m S w i t c h i n g 9 T r a n s M e a s u r e d O E M P c t CO E C A T E G O R I E S 1 - 3 S E P A R T I O N 10 2 2 2 0 O p e r a t o r S y s t e m s 11 C a t 1 ~ O p e r a t o r S y s t e m s 12 L o c , T o l I , D S A , D S B , a n d 13 T r a f f i c S w i t c h b o a r d s 14 A u x - D i r e c t A s s i s t 15 A u x - I n t e r c e p t 16 J t E x c h & T o l l S O B 17 T S P S - o p e r P o s i t i o n 18 T S P S - R T A 19 T S P S - O t h e r 20 D i r e c t A s s i g n m e n t 21 T o t a l C a t 1 22 D i s t r i b u t i o n o f U n e 2 1 23 T O T A L C O E - O P E R A T O R 24 D i s t r i b u t i o n o f L i n e 2 3 25 2 2 1 0 C e n t r a l O f i c e S w i t c h i n g 26 C a t 2 - T a n d e m S w i t c h i n g 27 D i r e c t A s s i g n m e n t 28 T o t a l C a t 2 29 D i s t r i b u t i o n o f L i n e 2 8 30 31 C a t 3 - L o c a l S w i t c h i n g - T S 32 C a t 3 - L o c a l S w i t c h i n g - N T S 33 D i r e c t A s s i g n m e n t 34 T o t a l C a t 3 35 D i s t 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 W I T C H I N G 37 D i s t r i b u t i o n o f L i n e 3 6 Pro 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 Di r e c t Ln 1 3 . . 2 0 Ln 2 1 / 2 1 a Ln 2 1 Ln 2 3 / 2 3 a Ln 2 6 a " 8 Di r 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 Di r e c t Ln 3 1 . . 3 3 Ln 3 4 / 3 4 a Ln 2 8 + 3 4 Ln 3 6 / 3 6 a 51 6 1 2 0 0 9 CE N T R A O F F I C E E Q U I P M E N T SO U R C E -l j r i l 1,0 7 4 , 6 5 8 :- 16 1 , 1 9 9 91 3 , 4 5 9 16 1 , 1 9 9 15 , 0 0 0 0 % 16 1 , 1 9 9 16 . 0 0 0 0 % 1,0 7 4 , 6 5 8 10 0 . 0 0 0 0 % 1,0 7 4 . 6 5 8 10 0 . 0 0 0 0 % 91 3 , 4 5 9 85 . 0 0 0 0 % 91 3 , 4 5 9 85 . 0 0 0 0 % Mo s s A d a m s , L L P 50 f 2 3 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 SE P A R T I O N S F A C T O R S 38 W B L i n e 39 E x T r k W B 40 R E L M O U ' s - E x c h a n g e T r u n k 41 G r o s s A l l o c t o r ( T r a n s S P F ) 42 C a E C a t 4 . 2 1 - F u r n t o O t h e r s P c t 43 I n t e r e x c h a n g e T r k W B CO E C A T E G O R Y 4 S E P A R A T I O N 44 2 2 3 0 C e n t r a l O f f i 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 c t A s s i g n m e n t 48 4 . 1 2 E x c h T r u n k - E A S 49 E x T r k x l B . B a s i c 50 E x T r k x l B - B a s i c D A 51 E x Tr k W B 52 E x c h T r k W B - D i r e c t A s s i g n m e n t 53 4 . 1 3 E x L i n e x N B 54 J o i n t M S G 55 P L & L o c a l 56 D i r e c t A s s i g n m e n t . B a s i c / S p e d a l 57 C a t 4 . 2 . l n t e r e x c h a n g e 58 4 . 2 1 F u r n t o O t h e r s 59 4 . 2 2 W i d e b a n d 60 J o i n t M S G 61 P L 62 D i r e c t A s s i g n m e n t LI N E D E S C R I P T I O N AS S I G N M E N T O F C O E C A T 4 . 1 3 63 C a E C a t 4 . 1 3 W o r k i n g L o o p s 64 C O E C a t 4 . 1 3 A s s i a 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 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 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 c t Ln 5 1 a * 3 9 Di r e c t Ln 6 4 b * 4 1 Ln 6 4 c . . i Di r e c t Ln 5 8 a * 4 2 Ln 6 0 a * 4 3 Di r e c t Di r e c t Re c o r d s No t e 1 5/6 / 2 0 0 9 CE N T R A O F F I C E E Q U I P M E N T SO U R C E IN T E R S T A T E T O l ( IN T R A S T A T E T O L L 50 . 0 0 0 0 % 36 9 , 0 9 6 18 0 , 5 6 6 16 0 , 5 6 6 80 0 , 2 7 3 40 0 , 1 3 6 20 0 , 0 6 8 íI ¡ . ø 76 6 . 5 80 0 , 2 7 3 76 6 . 5 80 0 , 2 7 3 1,0 4 4 . 0 6 0 8 Mo s s A d a m s , L L P 60 1 2 3 Ru r a l T e l e p h o n e C o m p a n y . I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 SE ' P A R A T l ù ~ S ~ A C T ù l ' S 65 C o n v e r s a t i o n M i n u t e s P c t 66 H o s t / R 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 T I O N ( C o n I 67 4 . 2 3 A l l O t h e r 68 J o i n t M S G 69 P L , T V X & L o c l 70 D i r e c t A s s i g n m e n t - N o n a c c s s 71 C a t 4 . 3 - H o s t / R e m o t e M S G 72 J o i n t ( x f A T S ) 73 W A T S 74 D i r e c t A s s i g n m e n t 75 T o t a l C a t 4 76 T O T A L C O E . T R N S M I S S I O N 77 D i s t r i b u t i o n o f U n e 7 6 78 T O T A L C E N T R A O F F I C E E Q U I P 79 D i s t r b u t i o n o f L i n e 7 8 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 80 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 o n s 81 C O E C a t 4 . 2 3 - T e r m s 82 - J o i n t M e s s a g e T o t a l A l l o c a t e d I n v e s t m e n t No t e 1: Co s t p e r t e r m i n a t i o n = Pro 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 Ln 8 2 " S 4 Ln 8 2 c . . i Dir e c t Ln 7 2 a " S 6 Dir e c t Dir e c t Ln 4 6 . . 6 2 + 6 7 . . 7 4 Ln 7 5 Ln 7 6 / 7 6 a Ln 2 3 + 3 6 + 7 6 Ln 7 8 1 7 8 a Re c o r d s No t e 1 No t e 1 5/6 / 2 0 0 9 CE N T R A O F F I C E E Q U I P M E N T 2, 1 8 3 , 7 2 8 66 7 , 0 1 4 37 3 , 9 3 2 2, 1 8 3 , 7 2 8 66 7 , 0 1 4 37 3 , 9 3 2 10 0 . 0 0 0 0 % 30 . 5 4 6 % 17 . 1 2 3 6 % 3, 2 5 8 , 3 8 6 1, 5 8 0 , 4 7 4 37 3 , 9 3 2 10 0 . 0 0 0 0 % 46 . 5 0 4 6 % 11 . 4 7 6 0 % 49 , 6 0 7 50 8 , 2 1 7 4,2 5 6 18 0 , 5 6 6 40 0 , 1 3 6 49 , 6 0 7 50 8 , 2 1 7 4,2 5 6 18 0 , 5 6 6 40 0 , 1 3 6 2.2 7 1 7 % 23 . 2 7 2 9 % 0. 1 9 4 9 % 8.2 6 6 7 % 18 . 3 2 3 5 % 49 , 6 0 7 50 8 , 2 1 7 4,2 5 6 18 0 , 5 6 6 56 1 , 3 3 5 1.5 2 2 4 % 15 . 5 9 7 2 % 0.1 3 0 6 % 5.5 4 1 6 % 17 . 2 2 7 4 % SO U R C E TO T A L CO M P A N Y (a j 10 1 . 0 0 10 1 t ~ 1 J . . . . . l n . ' m I f ~ . . m Y _ I l 82 4 , 7 0 2 82 4 , 7 0 2 8, 1 6 5 . 3 7 Mo s s A d a m s , L L P 70 1 2 3 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R T I O N S F A C T O R S 1 G r o s s A l l o c a t o r ( T r a n s S P F ) 2 R E L M O U ' s . C o i n le s s P u b T e l lO T E Q U I P M E N T S E P A R A t i o N 3 2 3 1 0 I n f o O r i g I T e r m E q u i p 4 C a t 1 - 0 t 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 a l C a t e g o r y 1 8 D i s t r i b u t i o n o f L i n e 7 9 C a t 2 - C u s t P r e m E q u i p 10 D i s t r i b u t i o n o f L i n e 9 11 T O T A L I N F O O R I G I E 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 Pro 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 Ln 4 a " 1 Ln 5 a " 2 Di r e c t Ln 4 . . 6 Ln 7 1 7 a Di r e c t Ln 9 1 9 a Ln 7 + 9 Ln 1 1 1 1 1 a 5/6 / 2 0 0 9 IN F O R M A T I O N O R I G I N I E R M E Q U I P M E N T S-6 SO U R C E ¡¡ Mo s s A d a m s , L L P B 0 1 2 3 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 SO U R C E SE P A R A T I O N S F A C T O R S 1 G r o s s A l l o c a t o r P c t ( T r a n s S P F ) 2 R E L M O U ' s - E x c h a n g e T r u n k 3W B L i n e 4 M O U P e t - E x T r k W B C& W F C A T 1 - 2 S E P A R A T I O N 52 4 1 0 C a b l 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 l B 7 1 . 1 In t r a P L & W A T S 81 . 2 I n t e r P L & W A T S 9 1 . 3 J o i n t l y U s e d 10 D i r e c t A s s i g n m e n t 11 T o t a l C a t e g o r y 1 12 C a t 2 - W B & E x c h T r u n k 13 E x T r k - j o i n t m e s s a g e 14 E x T r k - E A S 15 E x L i n e W B 16 w e L i n e 17 w e T r u n k 18 w e T r u n k D A 19 T o t a l C a t e g o r y 2 LI N E D E S C R I P T I O N AS S I G N M E N T O F C & W F C A T 1 20 C & W F C a t 1 W o r k i n g L o o p s 21 D i s t r i b u t i o n o f L i n e 2 1 22 C a t 1 - & L i n e x J B No t e 1: Co s t p e r l o o p = Pro p r i e t a r y I n f o r m a t i o n Re c r d s Re c o r d s Re c r d s Re c o r d s Ln 2 2 e . . i Ln 2 2 c . . d Ln 2 2 b ' 1 Dir e c t Ln 7 . . 1 0 Ln 1 3 a * 2 Di r e Ln 1 5 a * 3 Dir e c t Ln 1 7 a * 4 Dir e c t Re c o r d s Ln 2 0 / 2 0 a Ln 2 2 a * 2 1 SO U R C E 6,5 4 9 . 4 9 1 2 Jo i n t MS G il 76 7 10 0 . 0 0 0 0 % 5,0 2 0 , 1 8 5 5/ 6 / 2 0 0 9 CA B L E A N D W I R E F A C I L I T I E S IN T R S T A T E T O L L 2,5 1 0 , 0 9 3 2,5 1 0 , 0 9 3 25 1 , 5 6 5 13 , 1 1 3 25 1 , 5 6 5 EA S Us e r De f i n e d (h ) Ot h e r (9 ) (I ) Mo s s A d a m s , L L P 90 f 2 3 Ru r a l T e l e p h o n e C o m p a n y . I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 SE P A R T I O N S F A C T O R S -i: f i n t e r e x c h a n g e T r k w e 24 C M M P e t - I X x l B 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 U R e m o t e M O V M i l e s P e t C& W F C A T 3 - 4 S E P A R A T I O N 28 C a t 3 - l n t e r e x c h a n g e C & W F 29 w e P L - D i r e c t A s s i g n m e n t 30 w e - J o i n t M e s s a g e 31 J o i n t M S G x f B 32 P L , T W X & L o c a l x l B 33 J o i n t T W X - I T 34 J o i n t T W X - R m t 35 D i r e c t A s s i g n m e n t - N o n a c c s s 36 T o t a l C a t e g o r y 3 37 C a t 4 - H o s t l R e m o t e C & W F 38 J o i n t ( x f A T S ) 39 W A T S 40 D i r e c t A s s i g n m e n t 41 T o t a l C a t e g o r y 4 42 T O T A L C A B L E & W I R E F A C I L I T I E S 43 D i s t r i b u t i o n o f L i n e 4 2 5/6 / 2 0 0 9 Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s CA B L E A N D W I R E F A C I L I T I E S 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % Di r e c t Ln 3 0 a " 2 3 Ln 4 8 b " 2 4 Ln 4 9 c . . i Ln 4 9 j " 2 5 Ln 4 9 k ' 2 6 Dir e c t Ln 2 8 . . 3 5 7,1 3 2 52 2 , 3 2 9 20 5 , 6 9 2 Ln 3 8 a " 2 7 Dir e c t Dir e c t Ln 3 8 . . 0 -~ ~ Ln 1 1 + 1 9 + 3 6 + 4 1 Ln 4 2 / 4 2 a 5,8 4 7 , 1 2 6 10 0 . 0 0 0 0 % 1,5 4 3 , 2 5 3 26 . 3 9 3 4 % 47 , 0 8 6 0. 8 0 4 9 % 13 2 , 8 9 7 2. 2 7 2 9 % 1,3 4 9 , 1 4 0 23 . 0 7 3 6 % 13 , 1 1 3 0.2 2 4 3 % 25 1 , 5 6 5 4. 3 0 2 4 % 2,5 1 0 , 0 9 3 42 . 9 2 8 7 % IN T E R S T A T E T O L L IN T R A T A T E T O L L TO T A L Jo i n t M S G In t e r In t r a In t e r In t r a EA S Us e r Ot h e r JtM S G T W X CO M P A N Ex c l T W LA T A LA T A LA T A LA T A De f i n e d In t e r t o U Re m o t e LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (e ) (d ) (e ) CO (0 ) (h ) ni ni (k l AS S I G N M E N T O F C & W F C A T 3 44 E q u i v I X C i r e M i l e s - M S G Re c o r d s 1, 2 8 5 1, 2 8 5 . 2 4 _ .~ r i l ! l M ! - n æ _ _ ~ _ 45 -P L , T W X & L o c a l Re c o r d s 46 D i s t r i b u t i o n o f L i n e 4 4 Ln 4 4 / 4 4 a 10 0 . 0 0 0 0 % 10 0 . 0 0 0 0 % ~ m r c v m m = = r u ~ t 47 D i s t r i b u t i o n o f L i n e 4 5 Ln 4 5 / 4 4 a 48 C a t 3 - A t i O t h e r x l B - M S G Ln 4 8 a " 4 6 51 5 , 1 9 7 51 5 , 1 9 7 ~ l l A \ ' l m r ~ ~ ~ ¥ ~ . 49 -P L , T W & L o c a l Ln 4 8 a " 4 7 No t e 1: Co s t p e r c i r c u i t m i t e = Pro p r i e t a r y I n f o r m a t i o n 40 0 . 8 6 Mo s s A d a m s , L L P 10 of 23 5/6 / 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 AM O R T I Z A B L E A S S E T S S- 6 Stu d y Y e a r : 2 0 0 7 TO T A L In t e r L A T A In t e r l T A CO M P A N Y MS G 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 (a b 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 l r ,L n 1 4 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4. 7 4 5 8 % 33 . 7 3 1 5 % 2 2 2 1 0 C O E - S w i t c h D i s l r ,L n 3 7 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % 3 2 2 2 0 C O E - O p e r a t o r S y s t e m s D i s l T ,L n 2 4 4 2 2 3 0 C O E - T r a n s m i s s i o n D i s l r ,L n 7 7 10 0 . 0 0 0 0 % 30 . 5 4 4 8 % 17 . 1 2 3 6 % 2.2 7 1 7 % 23 . 2 7 2 9 % 0. 1 9 4 9 % 8. 2 6 8 7 % 18 . 3 2 3 5 % 5 2 3 1 0 l O T D i s l r ,L n 1 2 62 4 1 0 C & W F D i g l r ,L n 4 3 10 0 . 0 0 0 0 % 26 . 3 9 3 4 % 0.8 0 4 9 % 2.2 7 2 9 % 23 . 0 7 3 6 % 0. 2 2 4 3 % 4.3 0 2 4 % 42 . 9 2 8 7 % 7 2 0 0 1 T P I S ,L n 8 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % B 2 0 0 1 T P I S i n c l 2 6 8 0 S- 2 . L n l l 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % TA N G I B L E A S S E T S - C A P I T A L L E A S E S S E P I 9 2 6 8 0 T a n g i b l e A s s e t s - C a p i t a l L e a s e s 10 21 1 0 L a n d & S u p t A s s e t s Ln 1 0 a * 1 11 22 1 0 C a E - S w i t c h i n g Ln 1 1 a * 2 12 22 2 0 C a E - O p e r a t o r Ln 1 2 a * 3 13 22 3 0 C O E - T r a n s m i s s i o n Ln 1 3 a * 4 14 23 1 0 l O T Ln 1 4 a * 5 15 24 1 0 C & W F Ln 1 5 a * 6 16 No t c l a s s i f i e d b y ac c u n t Ln 1 6 a * 7 I 30 ' 3 7 6 1 10 , 4 2 1 1,4 0 4 1 ~ I 60 9 ~ I 6. 1 9 6 58 1 1, 4 4 2 10 , 2 4 6 17 Dir e c t A s s i g n m e n t Dir e c t 18 T O T A L C A P I T A L L E A S E S Ln l 0 . . 1 7 30 . 3 7 6 10 , 4 2 1 1,4 0 4 60 9 8, 1 9 6 58 1,4 4 2 10 . 2 4 6 19 D i s t r i b u t i o n o f L i n e 1 8 Ln 1 8 / 1 8 a 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % TA N G I B L E A S S E T S - L E A S E H L D I M P R O V E S E P I 20 2 6 8 0 T a n g i b l e A s s e t s . L e a s e h l d I m p r o v e 21 21 1 0 L a n d & S u p t A s s e t s Ln 2 1 a * 1 22 22 1 0 C O E - S w i t c h i n g Ln 2 2 a * 2 23 22 2 0 C O E - O p e r a t o r Ln 2 3 a * 3 24 22 3 0 C O E - T r a n s m i s s i o n Ln 2 4 a * 4 25 23 1 0 l O T Ln 2 5 a * 5 26 24 1 0 C & W F Ln 2 6 a * 6 27 No t c l a s s i f i e d b y ac c o u n t Ln 2 7 a * 7 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 L E A S E H O L D I M P R O V E M E N T S Ln 2 1 . . 2 8 30 D i s t r i b u t i o n o f L i n e 2 9 Ln 2 9 1 2 9 a 31 T O T A L T A N G I B L E A S S E T S Ln 1 8 + 2 9 I 30 , 3 7 6 1 10 , 4 2 1 1,4 0 4 1 :1 60 9 :1 6.1 9 6 58 1 1,4 4 2 10 , 2 4 6 32 D i s t r i b u t i o n o f L i n e 3 1 Ln 3 1 1 3 1 a 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4. 6 2 3 6 % 2. 0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % I IN T A N G I B L E A S S E T S S E P A R A T I O N I 33 2 6 9 0 I n t a n g i b l e A s s e t s Ln 3 3 a * 8 34 Di r e c t A s s i g n m e n t Dir 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 Ln 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 Ln 3 5 1 3 5 a 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 11 of 23 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 IN T E R S T A T E T O L L -- - - - - - - - - - .'- : i TO T A L In t e r L A T A CO M P A N Y MS G PL MS G PL MI ~ G ~~ SO U R C E (a ) (b ) (e ) (d ) (a ) ,L n 1 5 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4. 6 2 3 6 % 2. 0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4.7 4 5 8 % ,L n 4 3 10 0 . 0 0 0 0 % 26 . 3 9 3 4 % 0. 8 0 4 9 % 2. 2 7 2 9 % 23 . 0 7 3 6 % 0.2 2 4 3 % 4. 3 0 2 4 % Re c r d s Ln 4 a * 1 2,0 0 0 68 6 92 40 40 8 4 95 Di r e c t Ln 4 . . 5 2,0 0 0 68 6 92 40 40 8 4 95 Ln 6 / 6 a 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % Ln 8 a " 1 75 , 5 0 0 25 , 9 0 1 3,4 9 1 1, 5 1 3 15 , 4 0 1 14 4 3,5 8 3 Di r e c t Ln B . . 9 75 , 5 0 0 25 , 9 0 1 3,4 9 1 1, 5 1 3 15 , 4 0 1 14 4 3,5 8 3 Ln 1 0 1 1 0 a 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 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 l r 22 4 1 0 C & W F D i s l r 3 E q u a l A c c e s s M O U P e 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 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 8 2 0 0 3 P i 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 r i b u t i o n o f U n e 1 0 12 2 0 0 5 T e l e c o m P l a n t A d j u s t L n 1 2 a " 1 13 D i r e c t A s s i g n m e n t D i r e c t 14 T O T A L T E L E C O M P L A T AD J U S T L n 1 2 . . 1 3 15 D i s t r i b u t i o n o f L i n e 1 4 L n 1 4 / 1 4 a I M I S C A C C O U N T S S E P A R T I O N I 16 1 4 0 2 C l a s s B R T B S t o c k L n 1 6 a " 1 17 1 4 3 8 D e f e r r e d C h a r g e s Ln 1 7 a " 1 1 8 1 2 2 0 M a t e r i a l & S u p l x l C P E 19 D i r e c t A s s i g n m e n t 20 T O T A L M A T E R I A L S A N D S U P P L I E S Ln 1 8 a " 2 Dir e c t Ln 1 8 . . 1 9 21 C a s h W o r k i n C a i t a l C W C EQ 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 s s G r o s s I n v e s t m e n t L n 2 2 a " 3 23 E q u a l A c s s G r o s I n v e s t m e n t - D A D i r e c t 24 A c c u m D e p r e c i a t i o n L n 2 4 a " 3 25 D e f e r r e d O p e r I n c T a x e s L n 2 5 a " 3 26 U n a m o r t i z e d E x p e n s e s L n 2 6 a " 3 27 T O T A L N E T E Q U A L A C C E S S I N V E S T M E N T L n 2 2 - 2 4 - 2 5 + 2 6 28 D i s t r i b u t i o n o f L i n e 2 7 L n 2 7 / 2 7 a I I N V E S T A L L O W / D I S A L L O W S E P A R A T I O N I 29 I n v e s t m e n t A l l o w / D i s a l l o w a n c e s L n 2 9 a " 1 30 D i r e c t A s s i g n m e n t D i r e c t 31 T O T A L I N V E S T A L L O W / D I S A L L O W A N C E S L n 2 9 . . 3 0 Pro p r i e t a r y I n f o r m a t i o n 21 8 , 6 7 2 21 6 , 6 7 2 16 6 , 1 4 2 51 6 / 2 0 0 9 S- 9 57 , 7 6 8 1,7 6 2 4,9 7 5 4,9 7 5 1,2 6 2 50 , 5 0 2 49 1 33 . 7 3 1 5 % 42 . 9 2 8 7 % 67 5 67 5 33 . 7 3 1 5 % 25 , 6 7 25 , 4 6 7 33 . 7 3 1 5 % 9,4 1 7 93 , 9 5 9 57 , 7 6 6 1,7 6 2 50 , 5 0 2 49 1 9,4 1 7 93 , 9 5 9 76 , 3 0 6 3,9 0 0 15 , 0 0 2 96 2,8 7 5 66 , 7 0 2 Mo s s A d a m s , L L P 12 0 f 2 3 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r 2 2 0 0 3 P U C - P e 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 a l L e a s e s D i s t r 5 N e t T e l e c o m P l a n t D i s t r e x c l 4 0 4 0 , 4 3 1 0 6 2 1 1 0 S u p p o r t A s s e t s D i s t r 7 2 2 1 0 C O E - S w i t c h i n g D i s t r 8 2 2 2 0 C a E - O p e r a t o r D i s t r 9 2 2 3 0 C O E - T r a n s m i s s i o n D i s t r 10 2 3 1 0 l O T D i s t r 11 2 4 1 0 C & W F D i s t r 12 C O E , l O T , C & W F 13 B i g T h r e e E x p e n s e s D i s t r OT H E R I N C O M E S E P A R A T I O N 14 7 3 0 0 N o n o p e r I n c & E x e n s e s 15 A l w F d s U s e d O u r C o n s t r 16 C o n t r i b u t i o n s 17 A b a n d o n e d C o n s t r u c t i 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 19 F i x e d C h a r g e s 20 I n t e r e s t o n C a p i t a l L e a s e s 21 F i x e d C h a r g s E x c l C a p i t a l L e a s e s 22 A m o r t i z a t i o n o f D e b t D i s c o u n t 23 O t h e r I n t e r e s t 24 T O T A L F I X E D C H A R G E S 25 5 2 4 0 R e n t R e v e n u e s 26 S u p p o r t A s s e t s 27 C a E - S w i t c h i n g 28 C O E - O p e r a t o r 29 C O E - T r a n s m i s s i o n 30 I n f o O r i g / e r m 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 33 U N B U N D L E D N E T W O R K E L E M E N T S 34 C & W F - U n b u n d l e d L o o p 35 O p e r a t o r S y s t e m s 36 T a n d e m S w i t c h i n g 37 L o c a l S w i t c h i n g 38 T r a n s p o r t T e r m i n a t i o n 39 T r a n s p o r t F a c l l t y 40 S S 7 41 O S S 42 D i r e c A s s i g n m e n t 43 T O T A L R E N T R E V E N U E S IN C O M E T A X A D J U S T M E N T S S E P A R A T I O N S 44 I T C A m o r t i z a t i o n - F e d e r a l 45 I T C A m o r t i z a t i o n - S t a t e 46 T O T A L I T C A M O R T I Z A T I O N 47 A m o r t i z a t i o n o f E x c e s s O e f T a x e s 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 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 54 U n c o l 1 e c t i 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 C C L 56 U n c o l 1 e c t i 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 58 M i s e I n c A d j u s t m e n t s 59 I n c A d j A l l o c o n 2 0 0 1 60 I n c A d j A l l 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 l l o c o n B i g 3 E x 62 I n c A d j A l l o c o n B i g 3 E x - 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 Pro p r i e t a r y I n f o r m a t i o n SO U R C E ,L n 1 5 ,L n 1 1 ,L n 1 7 ,L n 1 9 ,L n 3 7 ,L n 9 ,L n 3 7 ,L n 2 4 ,L n 7 7 ,L n 1 2 ,L n 4 3 ,L n 8 ,L n 6 Ln 1 5 a * 2 Ln 1 6 a * 3 Ln 1 7 a * 1 Dir e c t Ln 2 0 a * 4 Ln 2 1 a * 5 Ln 2 2 a * 5 Ln 2 3 a * 5 Ln 2 0 . . 2 1 Ln 2 6 a * 6 Ln 2 7 a * 7 Ln 2 8 a * 8 Ln 2 9 a * 9 Ln 3 0 a * 1 0 Ln 3 1 a * 1 1 Ln 3 2 a * 1 , D i r e c t ,L n 4 1 ' L n 3 4 ,L n 2 4 * L n 3 5 ,L n 2 9 * L n 3 6 ,L n 3 4 * L n 3 7 ,L n 6 5 * L n 3 8 ,L n 6 5 * L n 3 9 ,L n 7 5 * L n 4 0 Ln 4 1 a * 1 Dir e c t Ln 2 6 . A 2 Ln 4 4 a * 1 Ln 4 5 a * 1 Ln 4 4 . . 4 5 Ln 4 7 a * 1 Ln 4 8 a * 1 Di r e c Ln 4 8 . . 4 9 Ln 5 1 a * 1 Dir e c t Ln 5 1 . . 5 2 Dir e c t Dir e c t Dir e c t Ln 5 4 . . 5 6 Ln 5 9 a * 1 Dir e c t Ln 6 1 a * 1 3 Dir e c t Ln 5 9 . . 6 1 5/6 / 2 0 0 9 CE R T A I N I N C O M E A C C O U N T S A N D A D J U S T M E N T S S- 1 0 MS G PL PL PL b) (e ) (i) 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 10 0 . 0 0 0 0 % 42 . 9 7 7 0 % 6.0 4 6 4 % 1.7 7 9 6 % 19 . 2 5 6 9 % 0. 1 3 9 5 % 4.2 0 6 4 % 25 . 5 9 4 2 % 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 10 0 . 0 0 0 0 % 27 . 8 8 9 7 % 3.7 7 8 8 % 2.2 7 5 0 % 23 . 1 3 8 3 % 0. 1 5 5 7 % 4.8 8 4 8 % 37 . 8 7 7 6 % 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % 10 0 . 0 0 0 0 % 30 . 5 4 4 8 % 17 . 1 2 3 6 % 2.2 7 1 7 % 23 . 2 7 2 9 % 0. 1 9 4 9 % 8.2 6 8 7 % 18 . 3 2 3 5 % 10 0 . 0 0 0 0 % 26 . 3 9 3 4 % 0.8 0 4 9 % 2.2 7 2 9 % 23 . 0 7 3 6 % 0. 2 2 4 3 % 4.3 0 2 4 % 42 . 9 2 8 7 % 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4. 6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 10 0 . 0 0 0 0 % 38 . 9 6 0 2 % 6.4 7 2 3 % 1.9 0 5 0 % 20 . 6 1 3 4 % 0.1 4 9 4 % 4.5 0 2 7 % 27 . 3 9 7 1 % 4, 1 2 4 1,4 1 5 19 1 63 84 1 8 19 6 1,3 9 1 8, 5 2 1 3,6 6 2 51 5 15 2 1, 6 4 1 12 35 8 2,1 8 1 'i ~ n =' 7 " EF 99 , 5 6 ~ i 27 , 7 6 7 3,7 6 ~ I ~ I 2, 2 6 5 ~ I 23 , 0 3 7 15 5 4,8 6 3 37 , 7 1 1 99 , 5 6 1 27 , 7 6 7 3, 7 6 2 2, 2 6 5 23 , 0 3 7 15 5 4,8 6 3 37 , 7 1 1 (1 1 4 ) 1 (1 1 4 ) (1 1 4 ) 1 (1 1 4 ) Mo s s A d a m s , l L P 13 of 23 5/6 / 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 PL A N T S P E C I F I C E X P E N S E S S- l l St u d y Y e a r : 2 0 0 7 IN T E R S T A T E T O L L IN T R A S T A T E T O L L , TO T A L In t e r L A T A In t r a L A T A CO M P A N Y MS G PL MS G MS G LI N E DE S C R I P T I O N SO U R C E aj b cj d ül SE P A R A T I O N S F A C T O R S 1 2 1 1 0 L a n d & S u p t A s s t s D i s t t ,L n 1 4 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4. 6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 2 T o t a l C O E D i s l r + E A D i s l r ,L n 7 9 i n c f E A 10 0 . 0 0 0 0 % 48 . 5 0 4 8 % 11 . 4 7 6 0 % 1.5 2 2 4 % 15 . 5 9 7 2 % 0.1 3 0 6 % 5.5 4 1 6 % 17 . 2 2 7 4 % 32 3 1 0 l O T C a t 1 - 0 t h e r D i s l r ,L n 1 10 0 . 0 0 0 0 % 25 . 0 0 0 0 % 2. 2 2 3 0 % 22 . 7 7 7 0 % 50 . 0 0 0 0 % 4 2 3 1 0 l O T C a l 2 - C P E D i s l r ,L n 1 0 5 2 4 1 0 C & W F D i s t r ,L n 4 3 10 0 . 0 0 0 0 % 26 . 3 9 3 4 % 0. 8 0 4 9 % 2. 2 7 2 9 % 23 . 0 7 3 6 % 0.2 2 4 3 % 4. 3 0 2 4 % 42 . 9 2 8 7 % PL A T S P E C I F I C E X P E N S E S S E P A R T I O N 6 6 1 1 0 N e t w o r k S u p p o r t E x p e n s e s Ln B a * 1 23 , 5 3 9 6,0 7 5 1,0 8 8 47 2 4,8 0 2 45 1,1 1 7 7, 9 4 0 7 Di r 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 O R K S U P P O R T E X P E N S E S Ln B . . 7 23 , 5 3 9 8,0 7 5 1,0 8 8 47 2 4,8 0 2 45 1,1 1 7 7,9 4 0 9 6 1 2 0 G e n e r a l S u p p o r t E x e n s e s Ln 9 a * 1 18 9 , 2 4 4 64 , 9 2 2 8, 7 5 0 3, 7 9 3 38 , 6 0 2 36 1 8, 9 8 1 63 , 8 3 5 10 Di r e c t A s s i g n m e n t Di r e c t 11 T O T A L G E N E R A L S U P P O R T E X P E N S E S Ln S . . 1 0 18 9 , 2 4 4 64 , 9 2 2 8,7 5 0 3, 7 9 3 38 , 6 0 2 36 1 8, 9 8 1 63 , 8 3 5 12 6 2 1 0 C O E S w i t c h i n g E x p e n s e s Ln 1 2 a * 2 90 , 3 8 7 43 , 8 4 2 10 , 3 7 3 1, 3 7 6 14 , 0 9 8 11 8 5, 0 0 9 15 , 5 7 1 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 90 , 3 8 7 43 , 8 4 2 10 , 3 7 3 1, 3 7 6 14 , 0 9 8 11 8 5, 0 0 9 15 , 5 7 1 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 s Ln 1 5 a * 2 16 Dir e c t A s s i g n m e n t Dir e c 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 1 B 6 2 3 0 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 a * 2 33 3 , 0 6 1 16 1 , 5 5 1 38 , 2 2 2 5,0 7 1 51 , 9 4 8 43 5 18 , 4 5 7 57 , 3 7 8 19 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 S M I S S I O N E X P E N S E S Ln 1 8 . . 1 9 33 3 , 0 6 1 16 1 , 5 5 1 38 , 2 2 2 5,0 7 1 51 , 9 4 8 43 5 18 , 4 7 57 , 3 7 8 21 T O T A L C O E E X P E N S E S Ln 1 4 + 1 7 + 2 0 42 3 , 4 4 8 20 5 , 3 9 3 48 , 5 9 5 6,4 4 7 66 , 0 4 6 55 3 23 , 4 6 6 72 , 9 4 9 22 6 3 1 0 l O T E q u i p E x p e n s e s 23 Ca t i - O t h e r l O T E q E x e n s e s Ln 2 3 a * 3 24 Ca t 2 - C u s t P r a m E q u i p E x p Ln 2 4 a * 4 25 Dir e c t A s s i g n m e n t Di r 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 22 9 , 9 6 4 60 , 6 9 5 1,8 5 1 5,2 2 7 53 , 0 6 1 51 6 9,8 9 4 98 , 7 2 0 28 Dir e c t A s s i g n m e n t Dir e 29 T O T A L C & W F E X P E N S E S Ln 2 7 . . 2 8 22 9 , 9 6 4 60 , 6 9 5 1,8 5 1 5,2 2 7 53 , 0 6 1 51 6 9,8 9 4 98 , 7 2 0 30 P l t S p e c E x p x J 6 1 1 0 , 6 1 2 0 Ln 2 1 + 2 6 + 2 9 65 3 , 4 1 2 26 6 , 0 8 8 50 , 4 4 6 11 , 6 7 4 11 9 , 1 0 7 1, 0 6 9 33 , 3 6 0 17 1 , 6 7 0 31 T O T A L P L A T S P E C O P E R E X P Ln 8 + 1 1 + 3 0 86 6 , 1 9 5 33 9 , 0 8 5 60 , 2 8 4 15 , 9 3 8 16 2 , 5 1 1 1, 4 7 5 43 , 4 5 8 24 3 , 4 4 4 32 D i s t r i b u t i o n o f L i n e 3 1 Ln 3 1 / 3 1 a 10 0 . 0 0 0 0 % 39 . 1 4 6 5 % 6.9 5 9 6 % 1.8 4 0 0 % 18 . 7 6 1 4 % 0. 1 7 0 2 % 5.0 1 7 1 % 28 . 1 0 5 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 14 o f 2 3 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 15 0 f 2 3 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 DE S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 M a r k t i n g e x p e n s e f a c t o r 2 W S W S - T e l O p e r S v c s 3 S u b s c r i b e r L i n e M O U 4 E U S e r v i c e O r d e r C o n t a c t s 5 E U B i U e d R e v e n u e i n c l C C L 6 E U B i l l e d I n q u i r y C o n t a c t s 7 I X S v c O r d P r o c C o n t a c t s 8 I X B i l l e d R e v e n u e 9 I X B i l l I n q C o n t a c t 10 P u b l i c I n t e r e s t P a y s t a t i o n R e v e n u e _ _ _ _ . . . _ _ _ . _ _ _ 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 e n s e s L n 1 1 a " 1 12 D i r e c t As s i g n m e n t D i r 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 L n l 1 . 2 I S E R V I C E S E X P E N S E S S E P A R T I O N I 14 6 6 2 0 S e r v i c e s E x p e n s e s 15 T e l e p h o n e O p e r a t o r S e r v i c e : 16 T e l O p e r a t o r S v c 17 D i r e c t A s s i g n m e n t 18 T o t a l T e l O p e r S v c E x p LIN E 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 Re c o r d s Ln 1 6 a " 2 Dir e c t Ln 1 6 . . 1 7 19 Pu b l i s h e d D i r e c t L i s t i n g s : 20 Cla s s i f i e d Dir e c t 21 TW X Dir e c t 22 Alp h a Ln 2 2 a " 3 23 Fo r e i g n Dir e c t 24 To t a l P u b l D i r e c t L i s t Ln 2 0 . . 2 3 25 Al l O t h e r : 26 Ca t 1 - L B O E E U S v c O r d P r o c 27 Pre s u b s c r i p t i o n Dir e c t 28 Ot h e r Ln 2 8 a " 4 29 Ca l 1 - L B O E E U P m ! & C o l 30 -C I I Dir e c t 31 . Ot h e r Ln 2 9 a " 5 32 Ca t 1 . L B O E E U B i I l n q 33 -C I I Dir e c t 34 -O t h e r Ln 3 2 a " 6 35 Ca t 1 - L B O E i X S v c O r d P r o Ln 3 5 a " ' 7 36 Ca t l - L B O E I X P m l & C o l Ln 3 6 a " 8 37 Ca t l - L B O E I X B i I l n q Ln 3 7 a " 9 38 Ca t 1 - L B O E C n C o l & A d m i n Ln 3 8 a " ' 1 D 39 To t a l C a t 1 - L B O E Ln 2 6 . . 3 8 Pro p r i e t a r y I n f o r m a t i o n SO U R C E 10 0 . 0 0 0 0 % 45 . 8 6 5 0 % 10 0 . 0 0 0 0 % 20 . 9 0 5 0 % 10 0 . 0 0 0 0 % 30 . 8 4 3 6 % 10 0 . 0 0 0 0 % 30 . 8 4 3 6 % 10 0 . 0 0 0 0 % 33 . 3 3 3 3 % 10 0 . 0 0 0 0 % 33 . 3 3 3 3 % 10 0 . 0 0 0 0 % 33 . 3 3 3 3 % 32 , 9 9 0 8,3 7 3 32 , 9 9 0 8,3 7 3 2, 9 4 0 2, 9 4 0 87 87 4, 1 9 4 4,1 9 4 12 , 5 8 2 2,6 3 0 12 , 5 8 2 3,8 8 1 12 , 5 8 2 3,8 8 1 41 , 9 4 0 14 , 5 8 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 IN T E R S T A T E T O L L .i\ ¡ , ~ - , ¡ ; r , - . 3.1 1 1 0 % 9. 9 2 0 0 % 31 . 8 7 5 0 ' ; _ 1 79 . 0 9 5 0 % 69 . 1 5 6 4 % 69 . 1 5 6 4 % 66 . 6 6 6 7 % 66 . 6 6 6 7 % 66 . 6 6 6 7 % 3, 2 7 3 3, 2 7 3 51 6 / 2 0 0 9 64 . 7 0 0 0 % 19 . 1 4 9 0 % 21 , 3 4 5 21 , 3 4 5 2, 9 4 0 2,9 4 0 17 17 9,9 5 2 8,7 0 1 8,7 0 1 27 , 3 5 4 ~ Mo s s A d a m s , L L P 16 0 1 2 3 Ru r a l T e l e p h o n e C o m p a n y ~ I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 TO T A L CO M P A N Y MS G LI N E DE S C R I P T I O N SO U R C E (a ) (b ) SE P A R A T I O N S F A C T O R S 40 R e l a t i v e T o l l & L o c a l M s g s P e t Re c o r d s 10 0 . 0 0 0 0 % 17 . 9 8 0 6 % 41 C A B S P c l Re c o r d s 10 0 . 0 0 0 0 % 50 . 0 0 0 0 % SE R V I C E S E X P S E P A R A T I O N C O N T D 42 Ca t 2 - C S E M s g P r o e 43 Jo i n t M e s s a g e Ln 4 2 a * 4 0 I 65 5 1 11 8 44 Dir e c t A s s i g n m e n t Dir e c t 45 Ca t 2 - C S E O t h e r B & C 46 Di r e c t A s s i g n m e n t Dir e c t 4, 2 8 7 1,2 7 9 47 En d U s e r C o m m o n L i n e Dir e c t 22 6 22 6 48 Ca t 2 - C S E C A B S Ln 4 B a * 4 1 9,7 3 4 4,8 6 7 49 To t a l C a t 2 - C S E Ln 4 2 . . 4 8 14 , 9 0 2 6,4 9 0 50 To t a l A l l O t h e r C a t 1 & 2 Ln 3 9 + 4 9 56 , 8 4 2 21 , 0 7 6 51 Dis t r i b u t i o n o f L i n e 5 0 Ln 5 0 / 5 0 a 10 0 . 0 0 0 0 % 37 . 0 7 7 4 % 52 Ca t 3 - A I I O t h e r C S E Ln 5 2 a * 5 1 53 Ca t 3 - D i r e c t A s s i g n m e n t Di r e c t 74 0 74 0 54 To t a l A l l O t h e r C a t 3 Ln 5 2 . . 5 3 74 0 74 0 55 To t a l A l l O t h e r - C a t 1 , 2 , 3 Ln 5 0 + 5 4 57 , 5 8 2 21 , 8 1 6 56 T O T A L S E R V I C E S E X P E N S E S Ln 1 8 + 2 4 + 5 5 60 , 6 0 9 21 , 8 5 5 57 T O T A L C U S T O M E R O P E R E X P E N S E S Ln 1 3 + 5 6 93 , 5 9 9 30 , 2 2 8 58 Dis t r i b u t i o n o f L i n e 5 7 Ln 5 7 / 5 7 a 10 0 . 0 0 0 0 % 32 . 2 9 5 5 % 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 2, 4 4 2 4. 2 9 5 3 % 31 , 8 2 1 55 . 9 8 1 4 % 5/ 6 / 2 0 0 9 1, 5 0 4 2.6 4 5 9 % 1, 5 0 4 4,4 6 1 25 , 8 0 5 27 . 5 6 9 9 % Pr o p r i e t a r y I n f o r m a t i o n 2, 4 4 2 31 , 8 2 1 2, 4 4 4 31 , 8 4 9 2,4 4 4 2. 6 1 1 4 % 35 , 1 2 1 37 . 5 2 3 2 % Mo s s A d a m s , L L P 17 of 23 Ru r a l T e l e p h o n e C o m p a n y ~ I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 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 c l 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 6 6 7 1 0 E x e c & P l a n n i n g E x p e n s e s 7 E A S 8 A l i O t h 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 SO U R C E ,L n 6 ,L n 1 5 ,L n 2 8 ,L n 3 7 S. 3 , L n 2 7 Dir e c t Ln 8 a * 1 Dir e c t Ln 7 . . 9 11 6 7 2 0 G e n ' l a n d A d m i n E x p e n s e s 12 E A S 13 A l l Oth e r 14 D i r e c t A s s i g n m e n t 15 T O T A L G E N ' L & A D M I N E X P E N S E S Dir e c t Ln 1 3 a * 1 Di r 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 i o n o f L i n e 1 6 L n 1 6 / 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 I n c o m e T a x e s L n 1 9 a * 5 20 S t a t e & L o c a l 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 C 22 F I T A l l o w a n c e s / D i s a l l o w a n c e s Ln 2 2 a * 2 23 O p e r a t i n g T a x e s . P r o p e r t L n 2 3 a * 2 24 O p e r a t i n g T a x e s . O t h e r L n 2 4 a * 2 25 O p e r a t i n g T a x e s . D i r e c t A s s i g n m e n t D i r e c t 26 T O T A L O P E R T A X E S x l F I T , S I T L n 2 3 . . 2 5 I O P E R A T I N G R E V E N U E S E P A R A T I O N S I 27 5 0 0 0 B a s i c L o c 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 s / E n d U s e r R e v e n u e D i r e c t 29 5 0 8 4 S t a t e A c s s E n d U s e r R e v e 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 s a g e R e v e n u e D i r e c t 31 5 2 0 0 M i s c e l l a n e o u s O p e r a t i 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 O p e r a t i n g I n c o m e D i r e c t 33 T O T A L O P E R A T I N G R E V E N U E L n 2 7 . . 3 2 I E Q U A L A C C E S S E X P E N S E S S E P A R A T I O N I 34 E q u a l A c c e s s E x p e n s e s 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 l o w a n c e s / D i s a l l 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 i o n 39 D i r e c t A s s l g n m e n t 40 T O T A L E X P E N S E A L L O W / D I S A L L O W A N C E S Ln 3 7 a * 4 Ln 3 7 a * 4 Di r e c t Ln 3 7 . . 3 8 No t e 1: FI T a n d S I T C a l c u l a t e d o n t h e S . 1 Pr o p r i e t a r y I n f o r m a t i o n 5/6 / 2 0 0 9 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 8- 1 4 IN T E R S T A T E T O L L IN T R A S T A T E T O L L TO T A L In t e r L A T A In t r a L A T A In t e r L A T A CO M P A N Y MS G PL MS G PL MS G PL a b c (d 10 0 . 0 0 0 0 % 38 . 9 6 0 2 % 6.4 7 2 3 % 1.9 0 5 0 % 20 . 6 1 3 4 % 0.1 4 9 4 % 4.5 0 2 7 % 27 . 3 9 7 1 % 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4. 6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 10 0 . 0 0 0 0 % 27 . 9 6 4 8 % 3.9 2 8 0 % 2.2 7 5 2 % 0.1 5 2 3 % 4.9 1 4 0 % 37 . 6 2 4 2 % 10 0 . 0 0 0 0 % 16 5 . 5 4 5 1 % 53 . 7 4 8 9 % 17 . 6 5 8 0 % 1.4 9 3 6 % (4 2 . 3 9 6 1 % ) 22 1 . 8 6 2 6 % .~ 10 3 , 6 0 5 40 , 3 6 5 6, 7 0 6 1,9 7 4 21 , 3 5 6 15 5 4,6 6 5 28 , 3 8 5 10 3 , 6 0 5 40 , 3 6 5 6, 7 0 6 1,9 7 4 21 , 3 5 6 15 5 4,6 6 5 28 , 3 8 5 'I I T r n - 27 4 , 7 9 3 10 7 , 0 6 0 17 , 7 8 6 5,2 3 5 56 , 6 4 4 12 , 3 7 3 75 , 2 8 5 26 , 6 5 5 26 , 6 5 5 30 1 , 4 4 8 13 3 , 7 1 5 17 , 7 8 6 5,2 3 5 56 , 6 4 41 0 12 , 3 7 3 75 , 2 8 5 40 5 , 0 5 3 17 4 , 0 8 0 24 , 4 9 1 7,2 0 8 78 , 0 0 1 56 5 17 , 0 3 8 10 3 , 6 7 0 10 0 . 0 0 0 0 % 42 . 9 7 7 0 % 6. 0 4 6 4 % 1.7 7 9 6 % 19 . 2 5 6 9 % 0.1 3 9 5 % 4. 2 0 6 4 % 25 . 5 9 4 2 % 10 5 , 8 2 0 17 5 , 1 8 0 (5 6 , 8 7 7 ) (1 8 , 6 8 6 ) (1 8 2 , 1 2 8 ) (1 , 5 8 1 ) (4 4 , 8 6 4 ) 23 4 , 7 7 5 10 5 , 8 2 0 17 5 , 1 8 0 (5 6 , 8 7 7 ) (1 8 , 6 8 6 ) (1 8 2 , 1 2 8 ) (1 , 5 8 1 ) (4 4 , 8 6 4 ) 23 4 , 7 7 5 99 , 5 0 5 34 , 1 3 6 4,6 0 1 1, 9 9 4 20 , 2 9 7 19 0 4, 7 2 2 33 , 5 6 5 99 , 5 0 5 34 , 1 3 6 4,6 0 1 1, 9 9 4 20 , 2 9 7 19 0 4, 7 2 2 33 , 5 6 5 22 4 , 1 2 9 22 4 , 1 2 9 1,9 2 8 , 2 7 8 1,2 3 6 , 1 7 3 69 2 , 1 0 5 35 0 , 4 7 9 34 , 3 5 1 31 6 , 1 2 8 4,8 5 0 29 4 30 2 4,2 5 4 2,5 0 7 , 7 3 6 1,2 3 6 , 4 6 7 34 , 6 5 3 1,2 3 6 , 6 1 6 Mo s s A d a m s , L L P 18 of 23 5/6 / 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 RE S E R V E S & D E F E R R A L S S-1 5 Stu d y Y e a r : 2 0 0 7 Sh e e t 1 o f 2 IN T E R S T A T E T O L L '~ TO T A L In t e r l T A CO M P A N Y MS G PL LI N E DE S C R I P T I O N SO U R C E (a (b (e ) 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 ,L n g 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % 33 . 7 3 1 5 % 22 2 1 0 C O E - S w i t c h i n g , i n c l . E A D i s t r S-5 , L n 3 7 + S - 9 , L n 2 6 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 15 . 0 0 0 0 % 3 2 2 2 0 C O E - o p e r a t o r D i s t r ,L n 2 4 4 2 2 3 0 C O E - T r a n s m i s s i o n D i s t r ,L n 7 7 10 0 . 0 0 0 0 % 30 . 5 4 4 8 % 17 . 1 2 3 6 % 2.2 7 1 7 % 23 . 2 7 2 9 % 0.1 9 4 9 % 8. 2 6 8 7 % 18 . 3 2 3 5 % 52 3 1 0 l O T D i s l r ,L n 1 2 62 4 1 0 C & W F D i s t r ,L n 4 3 10 0 . 0 0 0 0 % 26 . 3 9 3 4 % 0.8 0 4 9 % 2.2 7 2 9 % 23 . 0 7 3 6 % 0.2 2 4 3 % 4.3 0 2 4 % 42 . 9 2 8 7 % 7 2 0 0 1 T P I S x l L a n d ,L n 1 8 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % B G e n e r a l S u p p o r t , C O E , l O T , C & W F ,L n 1 + 8 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 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 ,L n 7 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 10 2 6 8 0 C a p t i a l L e a s e s D i s t r ,L n 1 9 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 11 2 6 8 0 L e a s e h o l d I m p r o v e m e n t s ,L n 3 0 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s t r ,L n 3 6 13 2 0 0 5 T e l e c o m P J t A d u s t m e n t ,L n 1 5 RE S E R V E S & D E F E R R A L S S E P A R A T I O N 14 1 5 0 0 o t h e r J u r i s A s s e t s - N e t Di r e c t 15 3 1 0 0 A c c u m D e p r - T e l P i t i n S v c 16 Su p p o r t A s s e t s Ln 1 6 a * 1 I 60 3 , 6 2 ~ 1 20 7 , 0 7 8 27 ' 9 0 ~ i ~ 1 12 , 0 9 9 :1 12 3 , 1 2 8 1,1 5 : I 28 , 6 4 7 20 3 , 6 1 1 17 Su p p o r t A s s e t s - D i r e c t A s s i g n m e n t Dir e c t 18 CO E - S w i t c h i n g Ln 1 8 a * 2 55 6 , 7 6 8 47 3 , 2 5 3 83 , 5 1 5 19 CO E - S w i t c h i n g - D i r e c t A s s i g n m e n t Dir e c t 51 7 , 8 9 0 44 0 , 2 0 7 77 , 6 8 4 20 CO E - O p e r a t o r Ln 2 0 a * 3 21 CO E . O p e r a t o r . D i r e c t A s s i g n m e n t Dir e c t 22 CO E - T r a n s m i s s i o n Ln 2 2 a * 4 I 68 4 , 2 3 3 1 20 8 , 9 9 7 11 7 , 1 6 5 1 :1 15 , 5 4 4 :1 15 9 , 2 4 1 1, 3 3 4 1 56 , 5 7 7 12 5 , 3 7 6 23 CO E - T r a n s m i s s i o n - D i r e c t A s s i g n m e n t Dir e c t 67 2 , 0 1 8 19 4 , 6 7 9 12 1 , 6 4 0 14 , 6 1 0 14 9 , 6 7 8 1,2 4 0 60 , 7 5 0 12 9 , 4 2 2 24 In f o O r i g l e r m E q u i p Ln 2 4 a * 5 25 In f o O r i g l e r m E q u i p - D i r e c t A s s i g n m e n t Di r e 26 C& W F Ln 2 6 a * 6 I 1'3 7 4 , 4 3 4 1 36 2 , 7 5 9 11 ' 0 6 3 1 :1 31 , 2 3 9 :1 31 7 , 1 3 1 3'0 8 2 1 59 , 1 3 3 59 0 , 0 2 6 27 C& W F - D i r e c t A s s i g n m e n t Dir e c t 1,2 0 9 , 4 2 5 31 7 , 0 8 0 12 , 3 3 2 27 , 3 0 6 27 7 , 1 9 7 5,5 8 9 54 , 1 9 6 51 5 , 7 2 6 28 T O T A L A C C U M U L A T E D D E P R E C I A T I O N Ln 1 6 . . 2 7 5, 6 1 8 , 3 9 0 2,2 0 4 , 0 5 3 29 0 , 1 0 9 10 0 , 7 9 6 1,0 2 6 , 3 7 4 12 , 3 9 6 25 9 , 3 0 3 1, 7 2 5 , 3 5 9 29 3 2 0 0 A c c u m D e p r P r o p e r t y H e l d 30 Fo r F u t u r e T e l e c m U s e Ln 3 0 a * 9 31 3 4 0 0 A c c u m A m o r t - C a p i t a l L e a s e s Ln 3 1 a * 1 0 1 14 , 0 0 5 1 4,8 0 4 64 8 1 -I 28 1 -I 2,8 5 7 27 1 66 5 4,7 2 4 32 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 v e m e n t s Ln 3 2 a * 1 1 33 3 5 0 0 A c c u m A m o r t - J n t a n g i b l e Ln 3 3 a * 1 2 34 3 6 0 0 A c c u m A m o r t - o t h e r Ln 3 4 a * 1 3 35 4 0 4 0 C u s t o m e r D e p o s i t s Ln 3 5 a * 7 1 4, 9 5 ~ 1 1, 7 0 0 22 : 1 :1 99 :1 1,0 1 1 ~ I 23 5 1, 6 7 2 36 Di r e c t A s s i g n m e n t Di r e c 37 T O T A L C U S T O M E R D E P O S I T S Ln 3 5 . . 3 6 4, 9 5 6 1, 7 0 0 22 9 99 1,0 1 1 23 5 1, 6 7 2 38 4 1 0 0 N e t Cu r O e f O p In c Ta x e s 39 Su p p o r t A s s e t s Ln 3 9 a * 1 40 CO E - S w i t c h i n g Ln 4 0 a * 2 41 CO E - O p e r a t o r Ln 4 1 a * 3 42 CO E - T r a n s m i s s i o n Ln 4 2 a * 4 43 In f o O n g / T e r m E q u i p Ln 4 3 a * 5 44 C& W F Ln 4 4 a * 6 45 No t C l a s s i f i e d b y A c c t Ln 4 5 a * 8 46 T O T A L N E T C U R D E F O P I N C T A X E S Ln 3 9 . . 4 5 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 19 of 23 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 Stu d y Y e a r : 2 0 0 7 LI N E D E S C R I P T I O N SE P A R A T I O N S F A C T O R S 47 B i g T h r e e E x p e n s e s D i s t r 48 2 1 1 0 S u p p o r t A s s e t s D i s t r 49 2 2 1 0 C O E ~ S w ¡ t c h ¡ n g D i s t r 50 . 2 2 2 0 C O E ~ O p e r a t o r D i s t r 51 2 2 3 0 C O E ~ T r a n s m i s s i o n D i s t r 52 2 3 1 0 l O T D i s t r 53 2 4 1 0 C & W F D i s ! r 54 2 0 0 1 T P I S x l L a n d 55 2 0 0 1 T P I S D i s t r 56 2 0 0 1 TP I S D i s t r RE S E R V E S & D E F E R R A L S S E P A R A T I O N 57 4 3 1 0 O t h e r L o n g ~ T e r m L i a b i l i t i e s 58 4 3 4 0 N e t N o n c u r r e n t D e f T a x e s 59 S u p p o r t A s s e t s 60 C O E - S w i t c h i n g 61 C O E - O p e r a t o r 62 C a E - T r a n s m i s s i o n 63 I n f o O r i g l T e r m E q u i p 64 C & W F 65 N o t C l a s s i f i e d b y A c e t 66 T O T A L N E T N O N C U R R E N T D E F T A X E S 67 4 3 6 0 O t h e r D e f e r r e d C r e d i t s ~ N e t 68 4 3 7 0 O t h e r J u r i s L i a b i l t i e s 69 & LO W / D I S A L L O W 70 A c c u m D e p r & A m o i 71 D i r e c t A s s i g n m e n t 72 T O T A L A C C D E P R I A M O R T A L W / D I S A L L O W Pr o p r i e t a r y I n f o r m a t i o n ,L n 6 ,L n 9 ,L n 2 ,L n 2 4 ,L n 7 7 ,L n 1 2 ,L n 4 3 ,L n 1 8 ,L n 1 5 ,L n 1 + 8 Ln 5 7 a * 4 7 Ln 5 9 a * 4 8 Ln 6 0 a * 4 9 Ln 6 1 a * 5 0 Ln 6 2 a * 5 1 Ln 6 3 a * 5 2 Ln 6 4 a * 5 3 Ln 6 5 a * 5 4 Ln 5 9 . . 6 5 Ln 6 7 a * 5 5 Dir e c t Ln 7 0 a * 5 4 Dir e c t Ln 7 0 . . 7 1 RE S E R V E S & D E F E R R A L S 5/6 / 2 0 0 9 S- 1 5 (i) 20 . 6 1 3 4 % 0.1 4 9 4 % 4. 5 0 2 7 % 27 . 3 9 7 1 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4. 7 4 5 8 % 33 . 7 3 1 5 % 15 . 0 0 0 0 % 23 . 2 7 2 9 % 0. 1 9 4 9 % 8. 2 6 8 7 % 18 . 3 2 3 5 % 23 . 0 7 3 6 % 0. 2 2 4 3 % 4.3 0 2 4 % 42 . 9 2 8 7 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % SO U R C E 10 0 . 0 0 0 0 % 38 . 9 6 0 2 % 6.4 7 2 3 % I :1 1. 9 0 5 0 % 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 10 0 . 0 0 0 0 % 85 . 0 0 0 0 % 10 0 . 0 0 0 0 % 30 . 5 4 4 8 % 17 . 1 2 3 6 % 2.2 7 1 7 % 10 0 . 0 0 0 0 % 26 . 3 9 3 4 % 0.8 0 4 9 % 2.2 7 2 9 % 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 38 0 , 5 2 6 38 0 , 5 2 6 13 0 , 5 4 3 13 0 , 5 4 3 17 , 5 9 4 17 , 5 9 4 7,6 2 7 7,6 2 7 77 , 6 2 0 77 , 6 2 0 72 6 72 6 18 , 0 5 9 18 , 0 5 9 12 8 , 3 5 7 12 8 , 3 5 7 Mo s s A d a m s , L L P 20 of 23 5/ 6 / 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y - I d a h o Stu d y A r e a : 4 7 2 2 3 3 CA S H W O R K I N G C A P I T A L S-1 6 Stu d y Y e a r : 2 0 0 7 IN T E R S T A T E T O l l !, ! ' , ' ' ' : l j ¡ ¡ r ~ ~ . ~ ~ . ~ _ . TO T A L In l e r L A T A CO M P A N Y 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 CA S H W O R K I N G C A P I T A L 1 P l a n t S p e c i f i c E x p e n s e s Ln 3 1 86 6 , 1 9 5 33 9 , 0 8 5 60 , 2 8 4 15 , 9 3 8 16 2 , 5 1 1 1,4 7 5 43 , 4 8 24 3 , 4 4 4 2 P l a n t N o n s p e c i f i c e x p e x e 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 8- 1 2 , L n 1 6 a * 2 3 11 4 , 8 6 6 39 , 4 0 6 5,3 1 1 2,3 0 2 23 , 4 3 1 21 9 5,4 5 1 38 , 7 4 6 3 C u s t o m e r O p e r a t i o n s E x p e n s e - M a r k e t i n g 8- 1 3 , L n 1 3 32 , 9 9 0 8, 3 7 3 3,2 7 3 21 , 3 4 5 4 C u s t o m e r O p e r a t i o n s E x p e n s e - S e r v i c e s 8- 1 3 , L n 5 6 60 , 6 0 9 21 , 8 5 5 2,4 4 4 31 , 8 4 9 4, 4 6 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 6 40 5 , 0 3 17 4 , 0 8 0 24 , 4 9 1 7,2 0 8 78 , 0 0 1 56 5 17 , 0 3 8 10 3 , 6 7 0 6 E q u a l A c c s s E x p e n s e S- 1 4 , l n 3 4 7 O t h e r N o n o p e r a t i n g E x p e n s e - C o n t r i b u t i o n s S-1 0 , l n 1 6 8,5 2 1 3, 6 6 2 51 5 15 2 1,6 4 1 12 35 8 2, 1 8 1 8 I n t e r e s t o n C a p i t a l L e a s e s S- 1 0 , l n 2 0 9 F i x e d C h a r g e s a x e l C a p i t a l L e a s e s S- 1 0 , l n 2 1 99 , 5 6 1 27 , 7 6 7 3,7 6 2 2,2 6 5 23 , 0 3 7 15 5 4,8 6 3 37 , 7 1 1 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 s S- 1 0 , l n 1 7 11 O t h e r O p e r a t i n g T a x - P r o p e r t S- 1 0 , l n 2 3 99 , 5 0 5 34 , 1 3 6 4, 6 0 1 1,9 9 4 20 , 2 9 7 19 0 4,7 2 2 33 , 5 6 5 12 O t h e r O p e r a t i n g T a x - O t h e r S-1 0 , l n 2 4 13 O t h e r O p e r a t i n g T a x - D i r e c t A s s i g n m e n t 8-1 0 , L n 2 5 14 F e d e r a l In c o m e T a x ( A c t u a l ) 8.1 0 , L n 1 9 10 5 , 8 2 0 17 5 , 1 8 0 (5 6 , 8 7 7 ) (1 8 , 6 8 6 ) (1 8 2 , 1 2 8 ) (1 , 5 8 1 ) (4 4 , 8 6 4 ) 23 4 , 7 7 5 15 S t a t e I n c o m e T a x ( A c t u a l ) 8-1 0 , L n 2 0 16 To t a l C a s h W o r k i n g C a p i t a l E x p e n s e s Ln 1 . . 1 5 1,7 9 3 , 1 2 0 82 3 , 5 4 4 42 , 0 8 7 13 , 6 1 9 16 1 , 9 1 0 1, 0 3 5 31 , 0 2 8 71 9 , 8 9 7 17 C a s h W o r k i n g C a p i t a l F a c t o r Re c o r d s 7. 4 3 2 9 % 7.4 3 2 9 % 7.4 3 2 9 % 7.4 3 2 9 % 7.4 3 2 9 % 7.4 3 2 9 % 7. 4 3 2 9 % 7.4 3 2 9 % 7.4 3 2 9 % 7.4 3 2 9 % 7.4 3 2 9 % 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 13 3 , 2 8 0 61 , 2 1 3 3,1 2 8 1,0 1 2 12 , 0 3 5 77 2,3 0 6 53 , 5 0 9 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 32 , 8 2 15 , 0 9 3 77 1 25 0 2, 9 6 7 19 56 9 13 , 1 9 3 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 a l C a s h W o r k i n g C a p i t a l 16 6 , 1 4 2 76 , 3 0 6 3,9 0 0 1,2 6 2 15 , 0 0 2 96 2,8 7 5 66 , 7 0 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 / 2 1 a 10 0 . 0 0 0 0 % 45 . 9 2 6 0 % 2.3 4 7 2 % 0.7 5 9 5 % 9. 0 2 9 5 % 0.0 5 7 7 % 1.7 3 0 4 % 40 . 1 4 7 8 % 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 21 of 23 Ru r a l T e l e p h o n e C o m p a n y - I d a h o St u d y A r e a : 4 7 2 2 3 3 St u d y Y e a r : 2 0 0 7 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 6 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 L E I N C O M E 9 F I T O N $ 0 t o $ 5 0 , 0 0 0 c æ 1 5 % 10 F I T O N $ 5 0 , 0 0 0 t o $ 7 5 , 0 0 0 ( § 2 5 % 11 F I T O N $ 7 5 , 0 0 0 t o $ 1 0 0 , 0 0 0 c æ 3 4 % 12 F I T O N $ 1 0 0 , 0 0 0 t o $ 3 3 5 , 0 0 0 ( § 3 9 % 13 F I T O N $ 3 3 5 , 0 0 0 t o $ 1 0 , 0 0 0 , 0 0 0 c æ 3 4 % 14 F I T O N $ 1 0 , 0 0 0 , 0 0 0 t o $ 1 5 , 0 0 0 , 0 0 0 c æ 3 5 % 15 F I T O N $ 1 5 , 0 0 0 , 0 0 0 t o $ 1 8 , 3 3 3 , 3 3 3 c æ 3 8 % 16 F I T O N O V E R $ 1 8 , 3 3 3 , 3 3 3 c æ 3 5 % 17 T O T A L T A X 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 ,L n 1 ,L n 4 Ln 1 a " ' 2 15 % 25 % 34 % 39 % 34 % 35 % 38 % 35 % LN s 9 . . 1 6 Pro p r i e t a r y I n f o r m a t i o n Ta x b l e TO T A L 4,7 4 2 , 3 1 7 8.0 3 1 5 % 38 0 , 8 8 1 99 , 5 6 1 28 1 , 3 2 0 95 , 7 3 4 37 7 , 0 5 4 50 , 0 0 0 25 , 0 0 0 25 , 0 0 0 23 5 , 0 0 0 42 , 0 5 4 37 7 , 0 5 4 TA X FO R M IN C O M E TA X TO T A L I S u r T a x 7, 5 0 0 6, 2 5 0 8, 0 0 91 , 6 5 0 14 , 2 9 8 12 8 , 1 9 8 34 . 0 0 0 0 % 5/ 6 / 2 0 0 9 S-1 7 5, 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 22 of 23 51 6 / 2 0 0 9 Ru r a l T e l e p h o n e C o m p a n y . I d a h o Stu d y A r e a : 4 7 2 2 3 3 DI S T R I B U T I O N R A T I O S F O R R A T E B A S E A N D E X P E N S E S S-1 8 Stu d y Y e a r : 2 0 0 7 AlC AL L O C A T I O N R A T I O S Ga t e 0 To t a l Ca p i t a l In v e s t m e n t 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 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4. 7 4 5 6 % 33 . 7 3 1 5 % CO E S w i t c h i n g E q u i p m e n t 22 1 0 10 0 . 0 0 0 0 % 85 . 0 0 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 % 30 . 5 4 4 8 % 17 . 1 2 3 6 % 2.2 7 1 7 % 23 . 2 7 2 9 % 0. 1 9 4 9 % 8. 2 6 8 7 % 18 . 3 2 3 5 % In f o r m a t i o n O r i g I 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 % 26 . 3 9 3 4 % 0.8 0 4 9 % 2.2 7 2 9 % 23 . 0 7 3 6 % 0. 2 2 4 3 % 4. 3 0 2 4 % 42 . 9 2 8 7 % Ta n g i b l e A s s e t s 26 8 0 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % In t a n g i b l e A s s e t s 26 9 0 To t a l P l a n t i n S e r v i c e A l e 2 0 0 1 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % Pro p e r t H e l d f o r F u t u r e U s e 20 0 2 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % Pl a n t U n d e r C o n s t r u c t i o n 20 0 3 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % Te l e p h o n e P l a n t A d j u s t m e n t 20 0 5 To t a l P r o p e r t y , P l a n t a n d E q u i p m e n t 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % Ac c u m u l a t e d D e p r e c i a t i o n . P l a n t i n S e r v i c e 31 0 0 10 0 . 0 0 0 0 % 39 . 2 2 9 3 % 5.1 6 3 6 % 1.7 9 4 0 % 18 . 2 6 8 1 % 0. 2 2 0 6 % 4.6 1 5 2 % 30 . 7 0 9 1 % Ac c u m u l a t e d D e p r e c i a t i o n . P r o p e r t y h e l d f o r F u t u r e U s e J 32 0 0 Ac c u m u l a t e d A m o r t i z a t i o n . T a n g i b l e P r o p e r t y 34 0 0 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % 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 y 35 0 0 Ac c u m u l a t e d A m o r t i z a t i o n - T e l e p h o n e P l a n t A d j u s t m e n t 36 0 0 De f e r r e d O p e r a t i n g T a x e s 43 4 0 1 10 0 . 0 0 0 0 % I 34 . 3 0 5 9 % 4.6 2 3 6 % I -I 2.0 0 4 3 % -I 20 . 3 9 8 2 % 0. 1 9 0 7 % I 4.7 4 5 8 % 33 . 7 3 1 5 % Ot h e r L o n g T e r m L i a b i l i t i e s 43 1 0 oth 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 i t s 1 10 0 . 0 0 0 0 % I 34 . 3 0 5 9 % 4.6 2 3 6 % I :1 2.0 0 4 3 % :1 20 . 3 9 8 2 % 0. 1 9 0 7 % 1 4.7 4 5 8 % 33 . 7 3 1 5 % Ne t T e l e p h o n e P l a n t 10 0 . 0 0 0 0 % 27 . 8 8 9 7 % 3.7 7 8 8 % 2.2 7 5 0 % 23 . 1 3 8 3 % 0.1 5 5 7 % 4.8 8 4 8 % 37 . 8 7 7 6 % In v e s t m e n t A l l o w / D i s a l l o w Ac c u m D e p r / A m o r t A l l o w / D i s a l l o w Ma t e r i a l s a n d S u p p l i e s 12 2 0 1 10 0 . 0 0 0 0 % 1 26 . 3 9 3 4 % 0.8 0 4 9 % 1 -I 2.2 7 2 9 % -I 23 . 0 7 3 6 % 0. 2 2 4 3 % i 4.3 0 2 4 % 42 . 9 2 8 7 % 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 a n i e s 14 0 2 Eq u a l A c c s s E q u i p m e n t 14 3 9 Oth e r J u r i s d i c t i o n a l A s s e t s 15 0 0 Ca s h W o r k i n g C a p i t a l xx \ 10 0 . 0 0 0 0 % I 45 . 9 2 8 0 % 2.3 4 7 2 % 1 :1 0.7 5 9 5 % :\ 9. 0 2 9 5 % 0. 0 5 7 7 % I 1.7 3 0 4 % 40 . 1 4 7 8 % Ne t T e l e p h o n e P l a n t , M & S a n d C W C 10 0 . 0 0 0 0 % 28 . 5 1 5 0 % 3.7 2 7 8 % 2.2 2 2 2 % 22 . 6 4 6 9 % 0.1 5 2 2 % 4.7 7 4 4 % 37 . 9 6 1 5 % Op e r a t i n g E x n s e s a n d T a x e s S u m m a " Ne t w o r k S u p p o r t 61 1 0 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % Ge n e r a l S u p p o r t 61 2 0 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0.1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % Ce n t r a l O f f c e 62 1 0 10 0 . 0 0 0 0 % 48 . 5 0 8 % 11 . 4 7 6 0 % 1.5 2 2 4 % 15 . 5 9 7 2 % 0.1 3 0 6 % 5.5 4 1 6 % 17 . 2 2 7 4 % In f o r m a t i o n O r i g l T e r m 63 1 0 Ca b l e 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 % 26 . 3 9 3 4 % 0.8 0 4 9 % 2.2 7 2 9 % 23 . 0 7 3 6 % 0.2 2 4 3 % 4.3 0 2 4 % 42 . 9 2 8 7 % Oth e r Pl a n t 65 1 0 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % Ne t w o r k O p e r a t i o n s 65 3 0 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % Ac c e s s C h a r g e 65 4 0 Fe d e r a l S u p p o r t 65 4 0 Ma r k e t i n g 66 1 0 10 0 . 0 0 0 0 % 25 . 3 8 0 0 % 9. 9 2 0 0 % 64 . 7 0 0 0 % Cu s t o m e r S e r v i c e 66 2 0 10 0 . 0 0 0 0 % 32 . 2 9 5 5 % 2.6 1 1 4 % 37 . 5 2 3 2 % 27 . 5 6 9 9 % Co r p o r a t e O p e r a t i o n s - E x 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 % 38 . 9 6 0 2 % 6.4 7 2 3 % 1.9 0 5 0 % 20 . 6 1 3 4 % 0. 1 4 9 4 % 4.5 0 2 7 % 27 . 3 9 7 1 % 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 a t i v e 67 2 0 10 0 . 0 0 0 0 % 44 . 3 5 7 5 % 5.9 0 0 0 % 1.7 3 6 5 % 18 . 7 9 0 7 % 0. 1 3 6 2 % 4.1 0 4 5 % 24 . 9 7 4 6 % Su b t o t a l O p e r a t i o n s E x p e n s e 10 0 . 0 0 0 0 % 36 . 7 1 9 8 % 6.2 2 7 3 % 1.9 7 2 3 % 20 . 8 2 1 3 % 0. 1 6 7 6 % 4.7 6 6 5 % 29 . 3 2 5 2 % De p r e c i a t i o n a n d A m o r t z a t i o n 65 6 0 10 0 . 0 0 0 0 % 29 . 6 6 6 4 % 6.5 9 3 4 % 2.2 0 2 9 % 22 : 4 3 8 2 % 0. 2 0 6 9 % 5.5 8 3 6 % 33 . 3 0 8 6 % Ot h e r O p e r a t i n g 72 4 0 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4.7 4 5 8 % 33 . 7 3 1 5 % Eq u a l A c c s s Fi x e d C h a r g e s 75 0 0 10 0 . 0 0 0 0 % 27 . 8 8 9 7 % 3.7 7 8 8 % 2.2 7 5 0 % 23 . 1 3 8 3 % 0. 1 5 5 7 % 4.8 8 4 8 % 37 . 8 7 7 6 % Re n t R e v e n u e 52 4 0 To t a l O p e r a t i n g E x p e n s e a n d T a x 10 0 . 0 0 0 0 % 36 . 6 0 8 3 % 6.1 5 3 2 % 1. 9 7 3 8 % 20 . 8 0 1 8 % 0. 1 6 8 6 % 4.7 6 5 6 % 29 . 5 2 8 7 % No n o p e r a t i n g E x p e n s e 73 7 0 Ab a n d o n e d C o n s t r u c t i o n Co n t r i b u t i o n s 7J 10 0 . 0 0 0 0 0 / : I 42 . 9 7 7 0 % 6. 0 4 6 4 % I ~ I 1. 7 7 9 6 % :1 19 . 2 5 6 9 % 0. 1 3 9 5 0 / : I 4.2 0 6 4 % 25 . 5 9 4 2 % Ot h e r N o n o p e r a t i n g All 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 10 0 . 0 0 0 0 % 34 . 3 0 5 9 % 4.6 2 3 6 % 2.0 0 4 3 % 20 . 3 9 8 2 % 0. 1 9 0 7 % 4. 7 4 5 8 % 33 . 7 3 1 5 % Oth e r I n c o m e A d j u s t m e n t s xx 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 o f 23