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HomeMy WebLinkAbout2006Annual Report.pdfP.O. Box 4065 Monroe, LA 71211-4065 Tef 31B 388 9000 R F C t~~; ; CEN~TEL"\"1 il~)r. i r: !\iil q: lIt:lU. n '" n. UTIL\tU;)d~) l;1\!~Sk;. April 13 2007 Mr. Randy Lobb Administrator Utilities Division Idaho Public Utilities Commission 472 West Washington Street Boise, ill 83702 C~S- Dear Mr. Lobb: Re: CentnryTel ofIdaho, Inc. CentnryTel of the Gem State, Inc. Enclosed for filing with the Commission is an original and a disk copy of the 2006 Annual Report for the above referenced companies, along with attachments for page 20. Also enclosed for filing is an original of the Form I based on December 31, 2005 data filed with NECA for both companies and a copy of our most recent separations study filed with NECA. All correspondence regarding the report should be addressed to: Mr. Ted Hankins Director of Economic Analysis O. Box 4065 ~onroe, LA 71211-4065 (318) 388-9416 Sincerely, !~D fJO1I ~anager - General Accounting L~/ph Enclosures xc: Carol Squyres - without reports Ted Hankins - without reports Ken Buchan - with reports Bill May - electronic copy General Accounting File - with reports , "', .,, , f~FCC!\! 2007 APR 16 Rr-l 9: 44 ANNU AL RE R7!d'o~?~:~SIV 05 - CenturyTel of the Gem State, Inc. NAME. 100 CenturyTel Drive, Monroe LA 71211-4065 ADDRESS TO THE IDAHO PUBLIC UTiliTIES COMMISSION FOR THE YEAR ENDED December 31, 2006 ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31 , 2006 COMPANY INFORMATION Exact name of utility: CenturyTel of the Gem State, Inc. Address of principal office: 100 CenturyTel Drive, P.O. Box 4065, Monroe, LA 71211-4065 Telephone Number (Area Code) (318)388-9000 Cities or towns served: Grandview, Bruneau, Richfield, Grasmere-Riddle, Idaho; Mt. City and Owyhee, Nevada Name and title of officer having custody of the general corporate books of account: Neil A. Sweasy, Vice President and Controller Address of office where corporate books are kept and phone number: 100 CenturyTel Drive, P.O. Box 4065, Monroe, LA 71211-4065 (318) 388-9000 Organized under the laws of the State of: Idaho Date of organization: December 16,1952 Form of organization (proprietorship, association, corporation): If a Subchapter S Corporation, please specify: N/A Name and address of controlling company, if any: CenturyTel of Northwest, Inc., P. a.Box 4065, Monroe,LA 71211-4065 Names of affiliated companies. Give address and description of business: 1) CenturyTel, Inc, P. O. Box 4065, Monroe, LA 71211-4065, Management Services 2) CenturyTel Supply Group, P. O. Box 4065, Monroe, LA 71211-4065, Delivering, Purchasing and Warehousing 3) CenturyTel of Jacksonville, P. O. Box 4065, Monroe, LA 71211-4065, Allocations for Services 4) CenturyTel Hldgs MO, Inc, P. O. Box 4065, Monroe, LA 71211-4065, Allocations for Services 5) CenturyTel Service Group, Inc, P. O. Box 4065, Monroe, LA 71211-4065, Financial, Accounting, Billing, Data Processing, Personnel Relations and Engineering 6) CenturyTel of Montana, Inc. , P. O. Box 4065, Monroe, LA 71211-4065. Allocations for Services 7) CenturyTel Fiber II, LLC, P. O. Box 4065, Monroe. LA 71211-4065, Allocations for Services 8) CenturyTel of Idaho, Inc., P. O. Box 4065, Monroe, LA 71211-4065, Allocations for Services 9) CenturyTel of Ohio. Inc., P. O. Box 4065, Monroe, LA 71211-4065. Allocations for Services 10) CenturyTel of Washington, Inc., P. O. Box 4065. Monroe, LA 71211-4065, Allocations for Services 11) CenturyTel Acquisition, LLC, P. O. Box 4065, Monroe, LA 71211-4065, Allocations for Services 12) CenturyTel Long Distance, P. O. Box 4065. Monroe, LA 71211-4065, Allocations for Services 13) CenturyTel Broadband Services, P. O. Box 4065, Monroe, LA 71211-4065, Allocations for Services Corporation OFFICERS Report below the title, name and office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title, and address of the previous officer and the date of change. Title Chief Executive Officer President & COO Executive Vice President Senior Vice President Senior Vice President Senior Vice President, General Counsel Asst. Secretary Vice President Controller Vice President Treasurer Vice President Vice President Vice President Vice President Secretary Name Glen F. Post, /1/ Karen A. Puckett R. Stewart Ewin , Jr. David D. Cole Michael E. Maslowski Address O. Box 4065, Monroe, LA 71211-4065 Stace W. Goff Neil Swea G. Cla Baile Duane Ring Tim Walden Ivan Hu hes Jeffe S. Glover C. Buchart Previous Officers:Date of Change: Revised 3/02 Page 1 DIRECTORS List the name of each person who was a member of the Board of Directors at any given time during the year: (Fees related to meetings only. Name and Address Glen F. Post, III Stacey W. Goff R. Stewart Ewing, Jr. Term Expired or Current Term Will Expire Meetings Attended This year Fees Paid During Year 6/12/2007 6/12/2007 6/12/2007 None None None Address for Board of Directors: P. O. Box 4065, 100 CenturyTel Drive, Monroe, LA 71211-4065 Name of Chairman of the Board: Glen F. Post, III Name of Secretary (or Clerk) of Board: Buchart Number of Meetings of the Board during the year: MANAGERS List the name of each person who performed management duties for the Company during the year, and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts. Name Jeremy Ferkin Title General Manager Wages and Bonuses Paid Available upon request. Last update 3/02 Page 2 NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices, extensions or additions to the system; disposal of any substantial portion of the property of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. None Last Update 8/99 Page 3 BALANCE SHEET Assets and Other Debits Total Company Total Company Balance Balance Increase Beginning at End Title of Account of Year of Year (Decrease) Current Assets 1120 Cash and Equivalents 933,819 20,388 173 454 354 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 143 989 139,117 872) 1181 Accts. Rec. Allow. -Telecommunications 229)933)296 1190 Other Accounts Receivable 214 691 109 339 (105,352) 1191 Accounts Receivable Allow. - Other 628 (658)286) 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 017 988 (29) 1280 Prepayments 1290 Prepaid Rents 1300 Prepaid Taxes 867 867) 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 026 001 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 1402 Investment in Nonaffiliated Companies 000 000) 1406 Nonregulated Investments 413 798 385 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 1438 Deferred Maintenance & Retirements 1439 Deferred Charges (7) 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 776,644 271 562 (505 082) 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 584 6,402 818 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill Depreciation and Amortization Accounts 3100 Accumulated Depreciated 307 023 299 027 996) 3200 Accum. Depre. - Held for Future Use 3300 Accumulated Depreciation - Nonoperating 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. - Leasehold Improvements 3500 Accumulated Amortization - Intangible 3600 Accumulated Amortization - Other TOTAL ASSETS 780,432 616 787 836 355 Last Update 8/99 Page 4 BALANCE SHEET Liabilities & Stockholders' Equity Total Company Total CompanyBalance BalanceBeginning at Endof Year of YearTitle of Account Current Liabilities 4010 Accounts Payable 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 4050 Current Maturities - Long -Term Debt 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 4100 Net Current Defer. Oper. Income Taxes 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 4130 Other Current Liabilities Long-Term Debt 4210 Funded Debt 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated Companies 4270 Other Long-Term Debt Other Liabilities & Deferred Credits 4310 Other Long-Term Liabilities 4320 Unamort. Oper. Invest. Tax Credits - Net 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 4350 Net Noncur. Defer. Nonoper. Income Taxes 4360 Other Deferred Credits 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 4520 Additional Paid-In Capital 4530 Treasury Stock 4540 Other Capital 4550 Retained Earnings TOTAL LlAB. & OTHER CREDITS Last Update 3/02 Increase (Decrease) 783,957 769 009 36,395 36,213 955 10,681 218,422 224,363 937 46,403 22,072 18,175 14,447 618 710,429 1,467,448 (14 948) (182) 726 941 (3,937) (24 331 ) (3,728) (242 981 ) 1,405,650 316,802 (88 848) 99,894 383 (98 511 ) 650 650 52,635 635 (200)(200) 347,130 22,648,666 301 536 25,780,432 26,616 787 832 737 Page 5 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Be g i n n i n g of Y e 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 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 21 2 2 Fu r n i t u r e 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 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 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 s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S La s t U p d a t e 3 / 0 2 65 , 69 4 89 9 33 0 87 6 25 1 96 , 77 9 92 6 39 4 83 4 38 4 38 6 13 , 77 6 , 64 4 11 8 , 36 9 62 3 , 25 0 Pa g e 6 39 6 08 1 13 3 81 1 48 5 , 18 7 69 3 12 4 72 3 22 0 99 4 68 6 58 7 Ad d i t i o n s Du r i n g y e a r 59 0 Pl a n t Re t i r e d or S o l d 15 8 , 50 2 21 9 01 0 24 4 81 2 Tr a n s f e r s an d Ad j u s t m e n t s f2 0 0 ) (2 0 1 1 Ba l a n c e En d of Y e a r 39 6 55 , 88 1 (1 ) 13 3 , 81 1 48 5 , 18 6 15 , 69 3 96 6 , 22 1 98 4 1, 4 6 3 , 36 5 65 , 69 4 89 9 33 0 97 2 10 4 23 , 39 4 83 4 38 4 38 6 13 , 27 1 , 56 2 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Y e a r Du r i n g Y e a r or S o l d Ad j u s t m e n t s of Y e 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 06 5 06 5 21 1 2 Mo t o r V e h i c l e s 08 1 (2 0 0 ) 55 , 88 1 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 13 3 , 81 1 13 3 , 81 1 21 2 1 Bu i l d i n g s 34 4 30 0 34 4 30 0 21 2 2 Fu r n i t u r e 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 15 , 69 3 15 , 69 3 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 85 5 , 4 4 7 15 2 77 7 (1 ) 70 2 66 9 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 10 8 17 9 10 8 17 9 22 3 2 Ci r c u i t E q u i p m e n t 32 1 , 84 5 21 , 59 0 14 2 60 4 20 0 83 2 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 s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 52 , 61 9 (1 ) 61 8 24 2 1 Ae r i a l C a b l e 16 , 24 0 (1 ) 23 9 24 2 2 Un d e r g r o u n d C a b l e 33 0 33 1 24 2 3 Bu r i e d C a b l e 59 2 68 3 98 7 92 6 68 0 74 4 24 2 4 Su b m a r i n e C a b l e 23 , 39 4 23 , 39 4 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 83 4 83 4 24 3 1 Ae r i a l W i r e 50 3 50 3 24 4 1 Co n d u i t S y s t e m s 38 6 38 6 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S 52 8 , 41 0 11 0 , 57 7 40 4 48 6 (2 0 1 ) 23 4 , 30 0 La s t U p d a t e 3 / 0 2 Pa g e 7 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e 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 47 , 21 5 33 % 65 5 51 , 87 0 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 79 , 38 5 87 % 85 5 87 , 24 0 21 2 1 Bu i l d i n g s 33 6 , 81 5 99 % 14 , 50 6 35 1 , 32 1 21 2 2 Fu r n i t u r e 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 79 5 25 . 00 % 89 8 15 , 69 3 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 74 2 , 4 0 4 11 % 10 8 , 23 5 15 8 , 50 2 69 2 , 13 7 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 0 , 99 4 67 % 21 9 , 01 1 98 3 22 3 2 Ci r c u i t E q u i p m e n t 61 5 , 93 5 10 . 4 0 % 13 5 , 4 8 9 24 4 81 3 50 6 , 61 1 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 s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 11 1 96 8 32 . 36 % 11 1 , 96 8 24 2 1 Ae r i a l C a b l e 22 , 54 8 11 % 95 5 25 , 50 2 24 2 2 Un d e r g r o u n d C a b l e 22 4 4. 4 5 % 10 4 32 8 24 2 3 Bu r i e d C a b l e 09 5 , 20 8 78 % 33 7 , 4 4 6 92 6 4, 4 3 1 , 72 8 24 2 4 Su b m a r i n e C a b l e 16 , 18 1 3. 4 4 % 80 5 16 , 98 6 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 79 1 52 % 82 9 24 3 1 Ae r i a l W i r e 27 1 55 % 22 7 2, 4 9 8 24 4 1 Co n d u i t S y s t e m s 28 9 76 % 33 1 26 9 0 In t a n g i b l e s TO T A L 30 7 , 02 3 61 5 , 25 5 62 3 , 25 3 29 9 , 02 5 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . La s t U p d a t e 3 / 0 2 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 Ac c o u n t 3 1 0 0 ID A H O O p e r a t i o n s O n l y Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 M o t o r V e h i c l e s 46 , 02 7 33 % 65 5 50 , 68 2 21 1 3 A i r c r a f t 21 1 4 S p e c i a l P u r p o s e V e h i c l e s 21 1 5 G a r a g e W o r k E q u i p m e n t 21 1 6 O t h e r W o r k E q u i p m e n t 79 , 38 5 87 % 85 5 87 , 24 0 21 2 1 B u i l d i n g s 22 7 15 8 99 % 10 , 29 5 23 7 , 4 5 3 21 2 2 F u r n i t u r e 21 2 3 O f f i c e E q u i p m e n t 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 79 5 25 . 00 % 89 8 15 , 69 3 22 1 1 A n a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 D i g i t a l E l e c t r o n i c S w i t c h i n g 71 0 , 05 3 11 % 94 , 4 8 8 15 2 , 77 7 65 1 , 76 4 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 O p e r a t o r S y s t e m s 22 3 1 R a d i o S y s t e m s 10 8 , 17 9 67 % 10 8 , 17 9 22 3 2 C i r c u i t E q u i p m e n t 24 2 , 82 3 10 . 4 0 % 13 0 , 81 4 14 2 60 5 23 1 , 03 2 23 1 1 S t a t i o n A p p a r a t u s 23 2 1 C u s t o m e r P r e m i s e s W i r i n g 23 4 1 L a r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 P u b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 O t h e r T e r m i n a l E q u i p m e n t 24 1 1 P o l e s 22 4 32 . 36 % 92 , 22 4 24 2 1 A e r i a l C a b l e 94 7 11 % 66 7 61 4 24 2 2 U n d e r g r o u n d C a b l e 22 4 4. 4 5 % 10 4 32 8 24 2 3 B u r i e d C a b l e 39 6 , 60 4 78 % 28 8 , 86 5 92 5 68 4 , 54 4 24 2 4 S u b m a r i n e C a b l e 16 , 18 1 3. 4 4 % 80 5 16 , 98 6 24 2 6 I n t r a b u i l d i n g N e t w o r k C a b l e 79 2 52 % 82 9 24 3 1 A e r i a l W i r e 30 8 55 % 32 5 24 4 1 C o n d u i t S y s t e m s 28 9 76 % 33 1 26 9 0 In t a n g i b l e s 00 % TO T A L 93 6 , 98 9 54 1 , 54 2 40 4 , 4 8 6 07 4 , 04 5 Re m o v a l C o s t N o t C o m p l e t e 93 6 98 9 54 1 54 2 40 4 , 4 8 6 07 4 , 04 5 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . La s t U p d a t e 3 / 0 2 Pa g e 9 INVESTMENTS Report below the investments in Accounts 1401, 1402 and 1406. Identify each investment as to the account in which included. Minor amounts in Account 1406 may be grouped by classes. Description Account 1402 Date Acquired Book Cost of Investments Disposed of This year Book Cost of Investments Held at End of Year Miscellaneous Investment (C Stock Rural Bank) Account 1406 Non-Regulated Inventory Non-Regulated Investment 000 355 443 Totals 000 798 RECEIVABLES Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Name of Company ccount 1180 Receivables-Customers Amount at End of YearNotes AccountsReceivable Receivable 139 117 Account 1190 Receivables-Connecting Companies Receivables-Othe Total 1190 7,492 847 109 339 Totals 248,456 Last Update 3/02 Page 10 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor None Totals Date of Note Interest Rate ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100. Name of Creditor Account 4010 Due Date AlP - Trade AlP - Other AlP - Connecting Companies AlP - Payroll Deductions AlP - County 911 Tax AlP - HIPITDD Tax AlP - City 911 Tax AlP - USF High Cost Tax Totals Last Update 3/02 Page 11 Face Amount Amount 549 154 758,366 611 330 254 536 209 769,009 LO N G - T E R M D E B T Ac c o u n t s 4 2 1 0 , 4 2 4 0 , 4 2 5 0 , 4 2 6 0 , 4 2 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e . Cl a s s & S e r i e s of O b l i a a t i RU S L o a n s RU S L o a n s Cu r r e n t M a t u r i t i e s To t a l 4 2 1 0 La s t U p d a t e 3 / 0 2 Da t e Da t e Fa c e Pr e m i u m l D i s c o u n t Am o u n t Ou t s t a n d i n g Ye a r Is s u e Ma t u r i t y Au t h o r i z e d Ye a r - En d To t a l Am o r t i z e d 19 6 4 - 19 8 3 19 9 9 - 20 1 8 74 2 01 5 64 0 , 96 5 19 9 1 20 0 8 61 1 , 84 1 50 , 84 6 35 3 , 85 6 ?2 4 , 36 3 ) 1, 4 6 7 , 4 4 8 Pa g e 1 2 In t e r e s t f o r y e a r Ra t e Am o u n t 35 , 14 1 00 2 39 , 14 3 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 (A) Preferred Stock (B) TOTAL Number of Shares uthorized 000 200 Par Value per Share Outstanding per Balance Sheet Shares Amount $10 $50 890 215 $38,900 $10,750 $49,650 Last Update 3/02 Page 13 INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 15) Total Operating Expenses (from page 17) 7100 Other Operating Income and Expense 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 7230 Operating State and Local Income Taxes 7240 Operating Other Taxes 7250 Provision for Deferred Operating Income Taxes-Net7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Property 7360 Other Nonoperating Income 7370 Special Charges7300 Nonoperating Income and Expense 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions7500 Interest and Related Items 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Last Update 3/02 Page 14 070,806 733,020 633,795 1,491,414 778,117 684 153 159,883 159 883 242 42,247 87,788 (63,652) 900,454 822,631 907 021 (894,670) (51)(51) 896 2,414 904 177 (892,307) 39,143 143 324 39,467 263 39,406 506 225) 301 536 176,876 OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Other Local Exchange Revenue 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue - All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: NECA USF $ State USF $ 676 916 NIA To what account were they booked? To what account were they booked? 50801000 NIA Last Update 3/02 596 060 541 ,500 870 870 148 034 95,238 180,688 130,004 790,391 1 ,627 865 135,670 122,492 176,444 715 (9) 292 796 140 925 1,401 1 ,400 775 305 952 284 2,432 (3,427) 515)178 070,806 633,795 Page 15 OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information OriginationlTermination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable 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 Last Update 3/02 842 341 26,499 23,959 42,338 36,201 124 568 107 941 103 99,462 103 89,347 063 094 063 4,497 232,021 207,411 551 990 486 863 Page 16 Item OPERATING REVENUES Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/PlanUEquipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Last Update 3/02 (62)(54) 664 007 31,881 44,539 114 21,220 615,255 9,426 786 175 37,685 17,727 196 541,543 762,618 662,484 913 8,450 183 669 524 4,421 741 741 785 506 122 902 389 175 048 135,176 36,206 308 44,156 793 20,440 16,472 810 16,220 93,501 759 15,011 13,664 050 910 190 11,765 243,364 206,891 733,020 1,491,414 Page 17 CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , 2 0 0 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Gr a n d v i e w ( 3 3 0 1 ) Pr e f i x ( e s ) : 2 0 8 - 83 4 Ce n t r a l O f f i c e S w i t c h Ty p e : No r t e l D M S 1 0 H S O 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 Ch e c k o n e : Di g i t a l X An a l o g - Ch e c k o n e : El e c t r o n i c X El e c t r o - Me 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 : 70 6 (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . Ac c e s s L i n e C a D a c i t De s ~ n : 13 1 2 In s t a l i e d / E q u i p p e d : 13 1 2 / 1 0 8 6 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 Mu l t i - Si n g l e L i n e Li n e Mu l t i - Su b t o t a l Pa r t y Pa r t y Pa r t y Re s i d e n c e Be g i n n i n g o f Y e a r 51 4 55 0 Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r 53 4 56 5 Ce n t r e x NA R . In c l u d e d i n O f f i c i a l L i n e s Mu l t i - Li n e pa r t y Bu s i n e s s Si n g l e L i n e Mu l t i - pa r t y Pa r t y 10 4 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 : 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 . Di a l T o n e f r o m a n o t h e r C . Cu s t o m C a l l i 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 : 60 7 83 6 Re v i s e d 3/ 0 2 Pa g e 1 8 ( a ) Su b t o t a l Bu s i n e s s 14 3 14 1 To t a l Re s i d e n c e & B u s i n e s s 69 3 70 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 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e: Br u n e a u ( 3 3 0 2 ) Pr e f i x ( e s ) : 2 0 8 - 84 5 Ce n t r a l O f f i c e S w i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t Re m o t e - X Ac c e s s l i n e C a p a c i t y De s i g n : 64 0 Ty p e : No r t e l R L C M Ch e c k o n e : Di g i t a l X An a l o g - In s t a l i e d / E q u i p p e d : 64 0 / 3 7 9 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 Y e a r Mu l t i - Li n e Pa r t y 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 . Di a l T o n e f r o m a n o t h e r C . Re s i d e n c e Si n g l e L i n e Mu l t i - Pa r t y Pa r t y 22 0 22 0 Cu s t o m C a l l i 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 i s e d 3/ 0 2 Ch e c k o n e : El e c t r o n i c X El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s l i n e s i n Us e Cu s t o m e r L i n e s : 28 2 (I n c l u d e C e n t r e x , P A L , S e m i - Pu 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 In c l u d e d i n 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 23 5 Ce n t r e x Mu l t i - Li n e Pa r t y 23 0 Bu s i n e s s Si n g l e L i n e Mu l t i - , pa r t y Pa r t y 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 : 27 5 39 1 Pa g e 1 8 ( b ) Su b t o t a l Bu s i n e s s To t a l Re s i d e n c e & B u s i n e s s 28 7 28 2 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 , 20 0 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e Ri c h f i e l d ( 3 3 0 3 ) Pr e f i x ( e s ) : 2 0 8 - 48 7 Ce n t r a l O f f i c e S w i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e 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 : 13 1 2 In s t a l i e d / E q u i p p e d : 13 1 2 / 8 2 2 Ty p e : No r t e l D M S 1 0 S S O Ch e c k o n e : Di g i t a l X 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 Y e a r Mu l t i - Li n e Pa r t y 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 . Di a l T o n e f r o m a n o t h e r C . Re s i d e n c e Si n g l e L i n e Mu l t i - Pa r t y Pa r t y 37 6 35 7 Cu s t o m C a l l i 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 i s e d 3/ 0 2 Ch e c k o n e : El e c t r o n i c X El e c t r o - Me 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 : 41 8 (I n c l u d e C e n t r e x , P A L , S e m i - Pu 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 39 2 Ce n t r e x 36 8 In c l u d e d i n O f f i c i a l L i n e s Mu l t i - Li n e pa r t y Bu s i n e s s Si n g l e L i n e Mu l t i - Pa r t y Pa r t y 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 : 37 6 38 4 Pa g e 1 8 ( c ) Su b t o t a l Bu s i n e s s To t a l Re s i d e n c e & B u s i n e s s 44 4 41 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 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e Gr a s m e r e - R i d d l e ( 3 3 0 4 ) i n c l u d e d w i t h O w y h e e C e n t r a l O f f i c e D a t Pr e f i x ( e s ) : 2 0 8 - 75 9 Ce n t r a l O f f i c e S w i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t Re m o t e - X Ac c e s s L i n e C a p a c i t y De s i g n : 45 0 In s t a l i e d / E q u i p p e d : 45 0 / 4 5 0 Ty p e : AF C U M C 1 0 0 0 Ch e c k o n e : Di g i t a l X 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 Y e a r Mu l t i - Li n e Pa r t y 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 . Di a l T o n e f r o m a n o t h e r C . Re s i d e n c e Si n g l e L i n e Mu l t i - Pa r t y Pa r t y Cu s t o m C a l l i 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 i s e d 3 / 0 2 Ch e c k o n e : El e c t r o n i c X El e c t r o - Me 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 : 13 1 (I n c l u d e C e n t r e x , P A L , S e m i - Pu 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 In c l u d e d i n 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 Ce n t r e x NA R . Mu l t i - Li n e Pa r t y Bu s i n e s s Si n g l e L i n e Mu l t i - Pa r t y Pa r t y 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 : 12 9 Pa g e 1 8 ( d ) Su b t o t a l Bu s i n e s s To t a l Re s i d e n c e & B u s i n e s s 13 5 13 1 Lo c a l E x c h a n g e 1 4 8 7 - R i c h f i e l d 83 4 - G r a n d v i e w 3 8 4 5 - B r u n e a u 5 T O T A L La s t U p d a t e 3 / 0 2 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G (Y e a r ) 2 0 0 6 . Av e r a g e # Lo c a l C a l l s of C u s t o m e r Nu m b e r Av g . l Li n e s i n U s e (1 O 0 0 s ) Li n e 43 1 NI A NI A 83 3 N/ A NI A 28 5 N/ A NI A 54 9 Pa g e 1 9 To l l C a l l s O r i q i n a t e d ( T o t a l o f a l l C a r r i e r s ) Av g . l In t r a s t a t e In t e r s t a t e To t a l Li n e 73 , 39 1 34 , 97 6 10 8 , 36 7 25 1 51 , 73 7 10 3 , 31 4 15 5 , 05 1 18 6 32 , 54 3 49 , 07 0 81 , 61 3 28 6 15 7 , 67 1 18 7 36 0 34 5 , 03 1 22 3 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31, 2006 CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA 31.41.01.105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes- No Included in directory Yes - No Date of notification Grandview Directory - March 2006 Alternate method of notification Rule IDAPA 31.41.01.403. Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bill DeniallTermination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Last Update 3/02 Page 20 CERTIFICATE State of Louisiana ) ss Parish of Ouachita WE, the undersigned Karen A. Puckett and Neil A. Sweasy of the CenturyTel of the Gem State, Inc.utility, on our oath do severally say that the foregoing return has been prepared under our direction , from the original books, papers, and records of said utility; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utility for the period covered by the return in respect to each and every matter and thing therein set forth, to the best of our knowledge, information and belief. rJ.J.. A (Officer in C rge of Accounts) Subscribed and Sworn to Before Me this 1'Jf.L dayof t2p~, (Year) .:JOt)"" y~ (!. Notary Public 1=1 cjlc,(,~ My Commission Expires (YearL- gd kI ex ce IIi nelson/a nul rpts/tel an n u a I rpt Page 21 AN N U A L ~E P O R T 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 i t i e s F o r m Ce n t u r yT e l o f t h e G e m S t a t e , I n Na m e o f R e s p o n d e n t TO T H 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 , 1 0 8 3 7 2 0 - 00 7 4 (i p u c ~ p u c . st a t e . id . us ) ':' : ' -' Ci ~ " ;' \. . 0 Co '" ) (' . - .- - J 'C . O o , " . " i. j -;- No t e s t o S e p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s 1 L o c a l s e r v i c e r e v e n u e i s s e p a r a t e d b e t w e e n b i l l e d ( a c c r u e d ) a n d E A S n e t s e t t l e m e n t s . T h e E A S b i l l e d a m o u n t r e p r e s e n t s EA S s u r c h a r g e s a n d m e a s u r e d E A S s e r v i c e s . T h e E A S n e t s e t t l e m e n t s a m o u n t e q u a l s t h e c o n t r a c t e d a m o u n t o f EA S s e t t l e m e n t p a y m e n t s t o t h e i n d e p e n d e n t s . N o t e : E A S s e t t l e m e n t e x p e n s e i s re c o r d e d i n e x p e n s e a c c o u n t 6 7 2 8 . So m e p o r t i o n o f l o c a l b i l l i n g i s a s s i g n e d t o t h e i n t e r s t a t e j u r i s d i c t i o n . S e e F C C P a r t 3 6 . 21 2 . 2 A c c o u n t 5 0 8 X i s f o r a c c e s s c h a r g e s . S p l i t t h e a c c o u n t be t w e e n c u s t o m e r a c c e s s l i n e c h a r g e s ( C A L C ) , s w i t c h e d q n d sp e c i a l . 3 A c c o u n t 5 1 XX a p p l i e s t o i n t e r s t a t e a n d i n t r a s t a t e b i l l e d t o l l . a. T h e i n t r a L A T A g r o s s b i l l e d t o l l s h o u l d e q u a l t h e b i l l e d t o l l c o m b i n e d . b. T h e p r i v a t e l i n e a m o u n t s h o u l d e q u a l t h e l T C ' s p r i v a t e l i n e t o l l . c. T h e s e t t l e m e n t a m o u n t i s t h e o p e r a t o r s u r c h a r g e r e v e n u e s b i l l e d a n d r e t a i n e d b y t h e I T C s a n d r e c o r d e d a s a d e b i t t o 51 0 0 M T S T o l l R e v e n u e a c c o u n t s . 4 A c c o u n t s 5 2 7 0 a n d 5 2 8 0 c o v e r b i l l i n g a n d c o l l e c t i o n a c c e s s r e v e n u e s f o r i n t e r s t a t e a n d i n t r a s t a t e r e s p e c t i v e l y . 5 S u m m a r y a n d D e t a i l a c c o u n t s : a. O p e r a t i n g E x p e n s e s - T h e s u m m a r y ( p a g e 1 ) s h o u l d a g r e e w i t h t h e d e t a i l s ( p a g e s 5 a n d 6 ) , b. T e l e c o m P l a n t i n S e r v i c e - T h e s u m m a r y ( p a g e 2 ) s h o u l d a g r e e w i t h t h e t o t a l s ( p a g e 3 ) . c. D e p r e c i a t i o n & A m o r t i z a t i o n R e s e r v e s - T h e s u m m a r i e s ( p a g e 2 ) s h o u l d a g r e e w i t h t h e t o t a l s ( p a g e 4 ) . 6 D e t a i l s o f g e n e r a l t a x e s a n d t h e c o m p u t a t i o n o f s t a t e a n d f e d e r a l i n c o m e t a x e s a r e f o u n d o n p a g e 7 . 7 T h e E q u a l A c c e s s E q u i p m e n t is d e t e r m i n e d a s d e f i n e d i n F C C P a r t 3 6 . 19 1 . 8 A c c o u n t 6 5 1 1 P r o p e r t y H e l d f o r F u t u r e U s e E x p e n s e s a n d A c c o u n t 6 5 6 2 A m o r t i z a t i o n E x p e n s e s A s s o c i a t e d w i t h P r o p e r t y He l d f o r F u t u r e U s e a r e n o t " ab o v e - th e - li n e " i t e m s i n I d a h o . No t e s t o S e p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s (C o n t i n u e d ) 9 A c c o u n t 6 5 4 0 i n c l u d e s a c c e s s c h a r g e s a n d B & C e x p e n s e s p a i d t o L E C s . S e e F C C P a r t 3 6 . 35 4 . C a r r i e r a c c e s s c h a r g e B & C e x p e n s e s i n a c c o u n t 6 6 2 3 a r e e x p e n s e s a s s o c i a t e d w i t h t h e b i l l i n g a n d c o l l e c t i n g o f a c c e s s c h a r g e s t o in t e r e x c h a n g e c a r r i e r s . S e e F C C P a r t 3 6 . 38 1 . 10 E q u a l A c c e s s P r o v i s i o n e x p e n s e s a r e d e t e r m i n e d a s d e f i n e d i n F C C P a r t 3 6 . 4 2 1 . 11 U n i v e r s a l S e r v i c e F u n d e x p e n s e s a d j u s t m e n t i s d e t e r m i n e d , a s de f i n e d i n F C C P a r t 3 6 . 63 1 . T h e e x p e n s e a d j u s t m e n t ad d e d t o i n t e r s t a t e e x p e n s e s a n d d e d u c t e d f r o m s t a t e e x p e n s e s . T h e e f f e c t i s z e r o o n t o t a l I d a h o op e r a t i o n s . 12 L i f e l i n e C o n n e c t i o n A s s i s t a n c e e x p e n s e a d j u s t m e n t i s d e t e r m i n e d a s d e f i n e d i n F C C P a r t 3 6 . 74 1 . T h e e x p e n s e ad j u s t m e n t i s a d d e d t o i n t e r s t a t e e x p e n s e s a n d d e d u c t e d f r o m s t a t e e x p e n s e s . T h e ef f e c t i s z e r o o n t o t a l I d a h o op e r a t i o n . 13 L i n e 7 = r e v e n u e s - e x p e n s e s - g e n e r a l t a x e s ( e x c l u d i n g S I T ) . 14 L i n e 9 i s t h e b a s i s f o r a l l i n c o m e t a x s e p a r a t i o n s . S e e F C C P a r t 3 6 . 4 1 2 . 15 L i n e 1 0 = S I T Bc ; 1 s e Mi s c e l l a n e o u s A d d s a n d D e d u c t s . T h i s m a y b e o b t a i n e d f r o m t a x w o r k p a p e r s o r if m u l t i - s t a t e o p e r a t i o n , b a c k e d i n t o b y d i v i d i n g t h e c u r r e n t S I T b y . 08 t h e n s u b t r a c t i n g l i n e 9 . If t h e " ba c k e d i n t o ap p r o a c h i s u s e d , m a k e s u r e p r i o r y e a r a d j u s t m e n t s a r e f i r s t r e m o v e d f r o m c u r r e n t S I T . 16 C u r r e n t S I T s h o u l d r e f l e c t t h e r e m o v a l o f a l l p r i o r p e r i o d a d j u s t m e n t s . 17 L i n e 1 3 = F I T B a s e M i s c e l l a n e o u s A d d s a n d D e d u c t s . T h i s m a y b e o b t a i n e d f r o m t a x w o r k p a p e r s o r b a c k e d i n t o b y ta k i n g t h e c u r r e n t F I T p l u s c l a i m e d l T C , d i v i d i n g t h e e f f e c t i v e F I T r a t e a n d t h e n s u b t r a c t i n g l i n e 1 2 a n d l i n e 9 . If t h e " ba c k e d i n t o " a p p r o a c h i s u s e d , m a k e s u r e p r i o r y e a r a d j u s t m e n t s a r e f i r s t r e m o v e d f r o m c u r r e n t F I T . 18 C u r r e n t F I T s h o u l d r e f l e c t t h e r e m o v a l o f a l l p r i o r p e r i o d a d j u s t m e n t s . No t e s t o S e p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s (C o n t i n u e d ) 19 S e p a r a t i o n P a r a m e n t e r s d r i v e t h e a l l o c a t i o n o f c e r t a i n p l a n t a n d e x p e n s e c o s t s t o o p e r a t i o n a n d s e r v i c e s . T h e pa r a m e t e r s a r e d e s i g n e d t o p e r f o r m v a l i d i t y t e s t s o n s e p a r a t i o n s t u d i e s a n d p r o v i d e a b a s i s t o f o r e c a s t fu t u r e t e s t y e a r s e p a r a t i o n s . A l l p a r a m e t e r s r e f l e c t s t u d y ar e a a n n u a l t o t a l s . 20 C u r r e n t C o m p o s i t e S P F - It re p r e s e n t s a c o m p o s i t e o f t h e p r e a n d p o s t - c o n v e r s i o n S P F f o r t h o s e c o m p a n i e s i n v o l v e d i n to l l r o u t e c o n v e r s i o n s t o E A S d u r i n g t h e y e a r . 21 C O E C a t 3 - S e e F C C P a r t 3 6 . 12 5 a n d P U C O r d e r 9 3 - 11 3 3 , A p p e n d i x A . 22 E x c h a n g e T r u n k M O U - S e e F C C P a r t 3 6 . 15 5 . 23 H o s t / R e m o t e M O U K i l o m e t e r s - S e e F C C P a r t 3 6 . 15 7 . 24 E q u a l A c c e s s M O U - S e e F C C P a r t 3 6 . 19 1 . 25 O p 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 - U s e d t o s e p a r a t e o p e r a t o r s e r v i c e s e x p e n s e s i f d i f f e r e n t f r o m t h o s e u s e d f o r Ca E C a t . 1 p l a n t . 26 T a n d e m S w i t c h i n g M O U - S e e F C C P a r t 3 6 . 12 4 . 27 U n s e p a r a t e d L o o p C o s t - S e e F C C P a r t 3 6 . 62 1 , 28 G r o s s B i l l e d R e v e n u e s a r e d e f i n e d d i f f e r e n t l y f o r t h e f o l l o w i n g e x p e n s e s : a. M a r k e t i n g - S e e F C C P a r t 3 6 . 37 2 b. P a y m e n t a n d C o l l e c t i o n , E n d U s e r - S e e F C C P a r t 3 6 . 37 7 ( a ) ( 2 ) . c. P a y m e n t a n d C o l l e c t i o n , C X R - S e e F C C P a r t 3 6 . 37 7 ( a ) ( 5 ) . 29 S e r v i c e O r d e r C o n t a c t s : a. S e r v i c e O r d e r P r o c e s s i n g , E n d U s e r - S e e F C C P a r t 3 6 . 37 7 ) a ) ( 1 ) . b, S e r v i c e O r d e r P r o c e s s i n g , C X R - S e e F C C P a r t 3 6 . 37 7 ( a ) ( 4 ) . No t e s t o S e p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s (C o n t i n u e d ) 30 B i l l i n g I n q u i r y C o n t a c t s : a. B i l l i n g I n q u i r y , E n d U s e r - S e e F C C P a r t 3 6 . 37 7 ( a ) ( 3 ) . b. B i l l i n g I n q u i r y , C X R - S e e F C C P a r t 3 6 . 37 7 ( a ) ( 6 ) . 31 S P a n d R C M e s s a g i n g - T h e s e m e s s a g e s a r e u s e d t o s e p a r a t e A c c o u n t 6 6 2 3 , R e v e n u e A c c o u n t i n g - T o l l T i c k e t Pr o c e s s i n g e x p e n s e s - S e e F C C P a r t 3 6 . 37 9 . 32 B i g T h r e e E x p e n s e F a c t o - S e e F C C P a r t 3 6 . 39 2 . FO R M I I N P U T M A S T E R CO M P A N Y N A M E : C e n t u r y T e l o f G e m S t a t e - I d a h o , I n c . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 20 0 5 Se p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e LI n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l SU M M A R Y Op e r a t i n g R e v e n u e s 50 X X L o c a l - Bi l l e d (1 ) 63 1 , 34 9 63 1 34 9 63 1 34 9 EA S B i l l e d (1 ) EA S S e t t l e m e n t (1 ) 50 8 X A c c e s s - SL C ( E n d U s e r ) (2 ) 12 9 , 00 2 12 9 , 00 2 12 9 , 00 2 Sw i t c h e d ( T S + N T S ) (2 ) 08 0 , 92 2 83 0 20 3 83 0 , 20 3 25 0 , 71 9 25 0 , 71 9 Sp e c i a l (2 ) 26 0 , 39 6 26 8 , 12 0 26 8 , 12 0 72 4 ) 72 4 ) 51 X X T o l l - Me s s a g e (3 a ) (1 5 4 ) (3 0 ) (3 0 ) (1 2 4 ) (1 2 4 ) Pr i v a t e L i n e (3 b ) Se t t l e m e n t (3 c ) 52 X X M i s c . - Bil l i n g & C o l l e c t i o n (4 ) 10 . 19 , 58 5 21 2 21 2 10 , 37 3 10 , 37 3 Di r e c t o r y A d v e r t i s i n g 11 . 31 9 31 9 31 9 Op e r a t i n g R e n t s 12 . Ot h e r M i s c . 13 . 01 3 84 5 13 5 98 0 02 2 (4 ) 03 2 53 0 X L e s s : Un c o l l e c t i b l e R e v . ( - ) 14 . (3 3 , 63 2 ) (3 1 52 9 ) 10 4 ) (3 3 , 63 2 ) To t a l R e v e n u e s 15 . 09 7 79 9 97 0 23 1 26 8 , 25 5 23 8 , 48 7 23 0 , 46 2 72 8 ) 63 6 , 57 9 85 9 31 2 Op e r a t i n g E x p e n s e s 61 X X - 64 X X P l a n t S p e c i f i c O p e r . (5 a ) 16 . 48 1 18 1 20 5 , 15 4 21 5 22 2 , 36 9 10 0 , 25 2 64 1 15 1 , 91 9 25 8 , 81 2 65 X X P l a n t N o n s p e c i f i c O p e r a t i o n s (5 a ) 17 . 13 5 , 04 4 59 , 90 4 62 8 53 2 29 , 25 4 73 4 39 , 52 4 70 , 51 2 65 6 X De p r e c i a t i o n & A m o r t i z a t i o n (5 a ) 18 . 57 5 , 35 8 22 4 , 86 2 22 , 31 8 24 7 , 18 0 13 0 , 02 4 66 4 18 9 , 49 0 32 8 , 17 8 66 X X C u s t o m e r O p e r a t i o n s (5 a ) 19 . 12 7 , 56 7 23 , 98 9 77 8 25 , 76 7 33 , 86 7 35 0 66 , 58 3 10 1 , 80 0 67 X X C o r p o r a t e O p e r a t i o n s (5 a ) 20 . 20 1 , 09 7 77 , 20 6 30 1 83 , 50 7 43 , 89 7 62 9 71 , 06 4 11 7 , 59 0 -- - - O t h e r O p e r a t i n g (5 a ) 21 . 33 2 53 0 , 32 6 53 0 , 33 7 15 3 0 , 08 2 ) (5 3 0 , 00 5 \ To t a l E x p e n s e s (5 a ) 22 . 52 0 , 57 9 12 1 44 1 25 1 17 3 , 69 2 33 7 36 7 02 2 (1 1 , 50 2 ) 34 6 , 88 7 Op e r a t i n g T a x e s : (6 ) 72 4 0 G e n e r a l Ta x e s 23 . 37 7 14 , 04 4 36 8 15 , 4 1 2 8, 4 2 5 51 2 13 , 02 8 96 5 72 3 0 S t a t e / L o c a l l n c . Ta x ( C u r r e n t ) 24 . 12 2 , 4 3 5 66 , 4 6 8 14 4 61 2 38 5 ) 35 1 ) 50 , 55 9 82 3 72 2 0 Fe d e r a l I n c o m e T a x ( C u r r e n t ) 25 . 52 4 50 5 26 7 53 5 69 , 00 4 33 6 53 9 (3 7 , 77 6 ) (9 , 4 6 1 ) 23 5 , 20 4 18 7 , 96 6 72 5 0 N e t De f e r r e d I n c o m e T a x e s 26 . 72 1 0 N e t In v e s t m e n t T a x C r e d i t s 27 . To t a l T a x e s 28 . 68 4 , 31 7 34 8 , 04 7 87 , 51 6 43 5 , 56 3 (3 8 , 73 7 ) (1 1 , 30 0 ) 29 8 , 79 2 24 8 , 75 4 Ne t O p e r a t i n g I n c o m e 29 . 89 2 , 90 3 50 0 , 74 3 12 8 , 48 8 62 9 , 23 2 (6 8 , 16 8 ) (1 7 45 0 ) 34 9 , 28 9 26 3 67 1 T1 4 8 i d a h o 2 0 0 6 F o r m l 1 . xl s Pa g e 1 FO R M I I N P U T M A S T E R CO M P A N Y N A M E : C e n t u r y T e l o f G e m S t a t e - I d a h o , I n c . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 20 0 5 Se p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l Lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l SU M M A R Y ( c o n t i n u e d ) Av e r a g e R a t e B a s e 20 0 1 Te l e c o m . P l a n t i n S e r v i c e (5 b ) 11 , 4 8 6 , 75 3 46 9 , 99 4 44 6 , 10 5 91 6 , 09 9 59 4 32 1 16 7 12 6 80 9 , 20 7 57 0 , 65 4 20 0 5 P l a n t Ac q u i s i t i o n A d j u s t m e n t 31 0 0 L e s s : Ac c u m u l a t e d D e p r . ( - ) (5 c ) (5 , 67 5 26 8 ) 07 9 07 1 ) (2 3 1 95 5 ) 31 1 , 02 6 ) 35 1 , 57 6 ) (9 0 , 39 4 ) 92 2 , 27 2 ) (3 , 36 4 , 24 2 ) 34 x x - 36 x x A c c u m u l a t e d Am o r t . ( - ) (5 ) (7 9 9 ) (3 1 1 ) (3 1 ) (3 4 2 ) (1 8 0 ) (1 2 ) (2 6 5 ) (4 5 7 ) 41 0 0 - 43 4 0 A c c u m . De f e r r e d T a x ( - ) (1 , 18 6 , 23 8 ) (4 6 1 , 61 7 ) (4 6 , 06 9 ) (5 0 7 , 68 6 ) (2 6 7 , 91 6 ) (1 7 , 25 9 ) (3 9 3 , 37 7 ) (6 7 8 , 55 2 ) 12 2 0 Ma t e r i a l s a n d S u p p l i e s 03 5 80 0 27 9 07 9 62 1 23 6 95 6 -- Eq u a l A c c e s s E q u i p m e n t (7 ) -- - O t h e r R a t e B a s e 54 , 4 1 9 47 , 10 3 18 6 53 , 28 9 44 6 65 6 13 0 To t a l A v e r a g e R a t e B a s e 68 4 90 2 97 7 , 89 8 17 4 , 51 5 15 2 41 3 97 6 , 71 6 59 , 58 8 49 6 , 18 5 53 2 48 9 T1 4 8 i d a h o 2 0 0 6 F o r m l 1 . xl s Pa g e 2 FO R M I I N P U T M A S T E R CO M P A N Y N A M E : C e n t u r y T e l o f G e m S t a t e . I d a h o , I n c . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 20 0 5 Se p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e LI n e Su b j e c t T o 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 PL A N T I N S E R V I C E D E T A I L 21 X X G e n e r a l S u p p o r t F a c i l i t i e s 55 7 , 17 6 21 6 , 82 1 21 , 63 9 23 8 , 46 0 12 5 , 84 0 10 7 18 4 76 9 31 8 . 7 1 6 22 X 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 - 0p e r a t o r S y s t e m s CA T 2 - Ta n d e m S w i t c h i n g ( A l l o c . CA T 2 - Ta n d e m S w i t c h i n g ( A s s i g n . CA T 3 - Lo c a l S w i t c h i n g 82 5 , 65 5 55 1 , 80 7 55 1 , 80 7 27 3 , 84 8 27 3 , 84 8 CA T 4 . 12 - Ex c h . T r u n k ( J o i n t U s e ) 64 9 64 9 64 9 CA T 4 . 12 - Ex c h . T r u n k ( O e d . U s e ) CA T 4 . 13 - Su b s c r . L i n e ( J o i n t U s e ) 08 4 , 54 8 27 1 , 13 7 27 1 , 13 7 31 4 , 34 5 49 9 , 06 6 81 3 , 4 1 1 CA T 4 . 13 - Su b s c r . L i n e ( O e d . U s e ) 48 , 21 7 27 , 74 1 74 1 15 , 19 2 28 4 20 , 47 6 CA T 4 . 23 - IX T r u n k ( J o i n t U s e ) 10 . 22 1 22 0 13 1 , 4 3 8 13 1 , 4 3 8 89 , 78 2 89 , 78 2 CA T 4 . 23 - IX T r u n k C k t . ( O e d . U s e ) 11 . 59 , 4 3 3 27 3 27 3 18 , 16 0 18 , 16 0 CA T 4 . 3 - Ho s t / R e m o t e T r u n k C k t . 12 . 12 , 56 6 10 7 10 7 89 1 56 8 3, 4 5 9 CA T 4 . 11 - O t h e r E x c h a n g e W i d e b a n d 13 . To t a l C O E 14 . 25 4 , 28 8 96 3 , 48 9 69 , 01 4 03 2 50 3 40 7 01 8 33 , 35 2 78 1 , 41 5 22 1 , 78 5 23 X X I n f o r m a t i o n O r i g . lT e r m . E q u I p m e n t : CA T 1 - Re g u l a t e d C P E 15 . Ot h e r l O T 16 . To t a l l O T 17 . 24 X X C a b l e & W i r e F a c i l i t i e s : CA T 1 . Su b s c r i b e r L i n e ( C o m m o n ) 18 . 98 0 36 9 49 5 , 09 2 1, 4 9 5 , 09 2 73 3 , 35 0 75 1 , 92 7 4, 4 8 5 , 27 7 CA T 1 . Su b s c r i b e r L i n e ( O e d . 19 . 26 5 , 87 5 15 2 96 9 15 2 , 96 9 83 , 76 9 29 , 13 7 11 2 , 90 6 CA T 2 - Ex c h . T r u n k ( J o i n t U s e ) 20 . 70 0 70 0 24 , 70 0 CA T 2 - Ex c h . T r u n k ( O e d . U s e ) 21 . CA T 3 - IX T r u n k ( J o i n t U s e ) 22 . 34 5 , 05 1 20 4 41 7 20 4 , 4 1 7 14 0 , 63 4 14 0 , 63 4 CA T 3 - IX T r u n k ( O e d . U s e ) 23 . 24 4 30 0 20 2 , 42 4 20 2 , 4 2 4 41 , 87 6 87 6 CA T 4 - Ho s t / R e m o t e T r u n k 24 . 81 3 , 4 7 7 58 9 , 58 5 58 9 , 58 5 18 7 , 13 6 36 , 75 6 22 3 , 89 2 Ot h e r C & W F 25 . To t a l C & W F 26 . 67 3 , 77 2 28 9 , 09 4 35 5 39 3 64 4 , 48 7 06 1 12 0 12 5 , 64 5 84 2 52 0 02 9 , 28 5 26 X X O t h e r A s s e t s : Ca p i t a l L e a s e s 27 . Le a s e h o l d I m p r o v e m e n t s 28 . In t a n g i b l e s 29 . 51 7 59 0 64 9 34 3 50 3 86 8 To t a l O t h e r A s s e t s 30 . 51 7 59 0 64 9 34 3 50 3 86 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 . 48 6 , 75 3 46 9 , 99 4 44 6 , 10 5 91 6 , 09 9 59 4 32 1 16 7 , 12 6 80 9 , 20 7 57 0 , 65 4 T1 4 8 i d a h o 2 0 0 6 F o r m l 1 . xl s Pa g e 3 FO R M I I N P U T M A S T E R CO M P A N Y N A M E : C e n t u r y T e l o f G e m S t a t e - Id a h o , I n c . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 20 0 5 Se p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO l l P l S MT S & W A T S TO l l P l S FC C A c c o u n t a n d No t e li n e Su b j e c t T o 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 De p r e c i a t i o n & A m o r t i z a t i o n Ac c u m u l a t e d D e p r e c i a t i o n D e t a i l 31 1 X G e n e r a l S u p p o r t Fa c i l i t i e s (3 6 0 , 65 6 ) (1 4 0 , 34 7 ) (1 4 00 7 ) (1 5 4 , 35 4 ) (8 1 , 45 5 ) (5 , 24 7 ) (1 1 9 , 60 0 ) (2 0 6 , 30 2 ) 31 2 X C e n t r a l Of f i c e S w i t c h i n g (6 6 4 , 24 3 ) (5 6 4 , 60 7 ) (5 6 4 60 7 ) (9 9 , 63 6 ) (9 9 , 63 6 ) 31 2 X O p e r a t o r S y s t e m s 31 2 X C e n t r a l Of f i c e T r a n s m i s s i o n 29 1 , 70 0 ) (3 7 2 , 22 3 ) (6 2 , 39 9 ) (4 3 4 , 62 2 ) (3 6 8 , 00 6 ) (3 0 , 15 5 ) (4 5 8 , 91 7 ) (8 5 7 07 8 ) 31 3 X In f o r m a t i o n O r i g . fT e r m . E q u i p . 31 4 X C a b l e & W i r e F a c i l i t i e s (3 , 35 8 , 66 9 ) (1 , 00 1 , 89 4 ) (1 5 5 , 54 9 ) (1 , 15 7 , 44 3 ) (9 0 2 11 5 ) (5 4 , 99 2 ) (1 , 24 4 11 9 ) (2 , 20 1 , 22 6 ) 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 ) (5 , 67 5 , 26 8 ) 07 9 , 07 1 ) (2 3 1 , 95 5 ) (2 , 31 1 , 02 6 ) (1 , 35 1 57 6 ) (9 0 , 39 4 ) (1 , 92 2 27 2 ) (3 , 36 4 , 24 2 ) Ac c u m u l a t e d A m o r t i z a t i o n D e t a i l 34 1 0 C a p i t a l l e a s e s 34 2 0 Le a s e h o l d I m p r o v e m e n t s 35 0 0 In t a n g i b l e s 10 . (7 9 9 ) (3 1 1 ) (3 1 ) (3 4 2 ) (1 8 0 ) (1 2 ) (2 6 5 ) (4 5 7 ) 36 0 0 Ac q u i s i t i o n A d j u s t m e n t 11 . To t a l A c c u m u l a t e d A m o r t i z a t i o n I ( 5 c ) 12 . (7 9 9 ) (3 1 1 ) (3 1 ) (3 4 2 ) (1 8 0 ) (1 2 ) (2 6 5 ) (4 5 7 ) T1 4 8 i d a h o 2 0 0 6 F o r m l 1 . xl s Pa g e 4 FO R M I I N P U T M A S T E R CO M P A N Y N A M E : C e n t u r y T e l o f G e m S t a t e . I d a h o , I n c . 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 5 Se p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO l l P l S MT S & W A T S TO l l P l S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o 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 OP E R A T I N G E X P E N S E D E T A i l 61 X X . 64 X X P l a n t S p e c i f i c O p e r a t i o n s 61 1 0 - 20 G e n e r a l S u p p o r t F a c i l i t i e s 77 , 90 4 30 , 31 6 02 6 33 , 34 2 17 , 59 5 13 3 25 , 83 4 44 , 56 2 62 1 X Ce n t r a l O f f i c e S w i t c h i n g 95 , 13 9 40 3 01 8 59 , 4 2 1 11 , 89 9 97 5 84 4 35 , 71 8 62 2 0 Op e r a t o r S y s t e m s 62 3 X Ce n t r a l O f f i c e T r a n s m i s s i o n 83 , 64 9 50 , 47 0 77 4 24 4 10 , 4 6 2 85 7 20 , 08 6 31 , 40 5 63 X X In f o r m a t i o n O r i g . /T e r m . E q u i p . 64 X X Ca b l e & W i r e F a c i l i t i e s 22 4 48 9 66 , 96 5 10 , 39 7 77 , 36 2 60 , 29 6 67 6 83 , 15 5 14 7 , 12 7 To t a l P l a n t S p e c i f i c (5 a ) 48 1 , 18 1 20 5 , 15 4 21 5 22 2 , 36 9 10 0 , 25 2 64 1 15 1 91 9 25 8 , 81 2 65 X X P l a n t N o n s p e c i f i c O p e r a t i o n s (8 ) 65 1 2 Pr o v i s i o n i n g 80 7 31 4 34 5 18 2 26 8 46 2 65 3 X Ne t w o r k O p e r a t i o n s 11 8 , 37 7 46 , 06 6 59 7 50 , 66 3 26 , 73 6 72 2 39 , 25 6 71 4 65 4 0 Ac c e s s P a i d t o l E C s (9 ) 10 . 15 , 86 0 13 , 52 4 13 , 52 4 33 6 33 6 To t a l P l a n t N o n s p e c i f i c (5 a ) 11 . 13 5 , 04 4 59 , 90 4 62 8 64 , 53 2 29 , 25 4 73 4 39 , 52 4 70 , 51 2 65 6 X D e p r e c i a t i o n & A m o r t i z a t i o n (8 ) 65 6 1 Ge n e r a l S u p p o r t F a c i l i t i e s 12 . 35 , 05 5 13 , 64 2 36 1 15 , 00 3 91 7 51 0 62 5 20 , 05 2 65 6 1 Ce n t r a l O f f i c e S w i t c h i n g 13 . 65 6 78 , 75 8 78 , 75 8 13 , 89 8 13 , 89 8 65 6 1 Op e r a t o r S y s t e m s 14 . 65 6 1 Ce n t r a l O f f i c e T r a n s m i s s i o n 15 . 11 8 , 60 2 34 , 17 7 72 9 39 , 90 6 33 , 79 0 76 9 13 7 78 , 69 6 65 6 1 In f o r m a t i o n O r i g . /T e r m . E q u i p . 16 . 65 6 1 Ca b l e & W i r e F a c i l i t i e s 17 . 32 7 60 8 72 6 15 , 17 2 11 2 89 8 99 3 36 4 12 1 35 3 21 4 , 71 0 65 6 3 Ca p i t a l L e a s e s 18 . 65 6 3 Le a s e h o l d I m p r o v e m e n t s 19 . 65 6 4 In t a n g i b l e s I ( 5 a ) 20 . 1,4 3 7 55 9 61 5 32 4 47 7 82 2 65 6 5 Ac q u i s i t i o n A d j u s t m e n t 21 . To t a l D e p r e c i a t i o n & A m o r t i z a t i o n 22 . 57 5 , 35 8 22 4 , 86 2 22 , 31 8 24 7 , 18 0 13 0 , 02 4 66 4 18 9 , 49 0 32 8 , 17 8 T1 4 8 i d a h o 2 0 0 6 F o r m l 1 . xl s Pa g e 5 FO R M I I N P U T M A S T E R CO M P A N Y N A M E : C e n t u r y T e l o f G e m S t a t e - I d a h o , I n c . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 20 0 5 Se p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e LI n e Su b j e c t T o 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 OP E R A T I N G E X P E N S E ( c o n t i n u e d ) 66 X X C u s t o m e r O p e r a t i o n s 66 1 X Ma r k e t i n g 35 , 49 6 55 9 26 2 13 , 82 1 15 , 10 8 63 8 92 9 21 , 67 5 66 2 X Op e r a t o r S e r v i c e s 76 9 84 2 90 4 74 6 66 2 X Di r e c t o r y P u b l i s h i n g - Al p h a . 66 2 X Di r e c t o r y P u b l i s h i n g - Cl a s s i f i e d 66 2 X Di r e c t o r y P u b l i s h i n g - Fo r e i g n 66 2 3 Se r v i c e O r d e r P r o c . En d U s e r 46 , 63 8 46 , 53 8 46 , 62 5 66 2 3 Pa y m e n t & C o l l e c t i o n - En d U s e r 08 2 54 4 54 4 82 2 71 2 53 8 66 2 3 Bi l l i n g I n q u i r y - En d U s e r 16 2 14 2 15 9 66 2 3 Se r v i c e O r d e r P r o c . CX R 75 3 75 8 19 0 94 8 57 8 22 7 80 5 66 2 3 Pa y m e n t & C o l l e c t i o n - CX R 10 . 66 2 3 Bi l l i n g I n q u i r y - CX R 11 . 71 1 15 4 28 8 44 2 92 3 34 6 26 9 66 2 3 Co i n A d m i n i s t r a t i o n 12 . 66 2 3 Re v . A c c t g . To l l T i c k e t P r o c . 13 . 84 9 22 0 22 0 62 9 62 9 66 2 3 Re v . A c c t g . Lo c a l M e s s . P r o c . 14 . 66 2 3 Re v . A c c t g . Ot h e r B i l l & C o i l . 15 . 10 , 90 8 25 3 25 3 82 8 82 7 65 5 66 2 3 Re v . A c c t g . SL C B i l l i n g 16 . 57 4 57 4 57 4 66 2 3 Re v . A c c t g . CX R B & C (9 ) 17 . 73 0 36 5 36 5 36 5 36 5 66 2 3 B & C A m t s P a i d t o L E C s (9 ) 18 . 66 2 3 Ot h e r C u s t o m e r S e r v i c e 19 . 89 5 53 9 56 1 77 2 53 1 33 4 To t a l C u s t o m e r O p e r a t i o n s (5 a ) 20 . 12 7 , 56 7 23 , 98 9 77 8 25 , 76 7 33 , 86 7 35 0 66 , 58 3 10 1 , 80 0 67 X X C o r p o r a t e O p e r a t i o n s : 67 1 X Ex e c u t i v e & P l a n n i n g 21 . 25 , 44 4 59 8 80 6 10 , 4 0 4 61 5 33 6 08 9 15 , 04 0 67 2 X Ge n e r a l & A d m i n i s t r a t i v e 22 . 17 5 , 65 3 60 8 5, 4 9 5 73 , 10 3 38 , 28 2 29 3 61 , 97 5 10 2 , 55 0 67 2 8 EA S S e t t l e m e n t 23 . To t a l C o r p o r a t e O p e r a t i o n s (5 a ) 24 . 20 1 09 7 77 , 20 6 30 1 83 , 50 7 43 , 89 7 62 9 06 4 11 7 , 59 0 -- - - O t h e r O p e r a t i n g E x p e n s e s : -- - C o n t r i b u t i o n s # 7 3 7 0 / A F U D C # 7 3 4 0 (1 0 ) 25 . 33 2 12 8 13 9 11 6 19 3 Un i v e r s a l S e r v i c e F u n d (1 1 ) 26 . 52 2 , 68 4 52 2 , 68 4 (5 2 2 , 68 4 ) (5 2 2 , 68 4 ) -- - L i f e l i n e C o n n e c t i o n A s s i s t a n c e (1 2 ) 27 . 51 4 51 4 (7 , 51 4 ) 51 4 ) To t a l O t h e r (5 a ) 28 . 33 2 53 0 , 32 6 53 0 , 33 7 (5 3 0 08 2 ) (5 3 0 , 00 5 ) To t a l O p e r a t i n g E x p e n s e s (5 a ) 29 . 52 0 , 57 9 12 1 , 44 1 52 , 25 1 17 3 , 69 2 33 7 , 36 7 21 , 02 2 (1 1 , 50 2 ) 34 6 , 88 7 T1 4 8 i d a h o 2 0 0 6 F o r m l 1 . xl s Pa g e 6 FO R M I I N P U T M A S T E R CO M P A N Y N A M E : C e n t u r y T e l o f G e m S t a t e - Id a h o , I n c . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 20 0 5 Se p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o 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 OP E R A T I N G T A X E S D E T A I L 72 4 0 G e n e r a l T a x e s 72 4 0 Pr o p e r t y 38 , 33 9 91 9 48 9 16 , 40 8 65 9 55 8 12 , 71 4 21 , 93 1 72 4 0 Gr o s s R e c e i p t s 82 4 47 3 35 1 82 4 72 4 0 PU C F e e 72 4 0 Fr a n c h i s e F e e s 72 4 0 Ot h e r 78 6 ) (8 7 5 ) (1 2 1 ) (9 9 6 ) (7 0 7 ) (4 6 ) 03 7 ) (1 , 79 0 ) To t a l G e n e r a l T a x e s 37 , 37 7 04 4 36 8 15 , 41 2 42 5 51 2 13 , 02 8 21 , 96 5 72 X X In c o m e T a x e s ( C a l c u l a t e d ) Ne t I n c o m e B e f o r e S I T & F I T (1 3 ) 53 9 , 84 3 83 4 , 74 6 21 4 63 6 04 9 , 38 3 (1 1 5 , 33 0 ) (2 9 , 26 2 ) 63 5 , 05 3 49 0 , 46 1 Le s s F i x e d C h a r g e s ( - ) 70 7 63 2 31 6 94 8 83 5 11 2 81 2 75 9 Su b t o t a l ( l i n e s 7 - (1 4 ) 53 1 , 13 6 83 1 , 11 4 21 4 32 0 04 5 , 43 5 (1 1 7 , 16 5 ) (2 9 , 37 4 ) 63 2 , 24 1 48 5 , 70 2 Ot h e r S I T B a s e Ad d f D e d . (+ - ) (1 5 ) 10 . (6 9 3 ) (2 6 1 ) (2 2 ) (2 8 3 ) (1 5 3 ) (9 ) (2 4 8 ) (4 1 0 ) SI T T a x a b l e I n c . ( l i n e s 9 + - 10 ) 11 . 53 0 , 44 3 83 0 , 85 3 21 4 , 29 8 04 5 , 15 2 (1 1 7 , 31 8 ) (2 9 , 38 3 ) 63 1 , 99 3 48 5 , 29 2 72 3 0 S I T - Cu r r e n t ( a t 8 % ) (1 6 ) 12 , 12 2 , 4 3 5 66 . 4 6 8 14 4 83 , 61 2 38 5 ) 35 1 ) 50 , 55 9 38 , 82 3 Ot h e r F I T B a s e Ad d f D e d . (+ - ) (1 7 ) 13 . 17 , 25 1 (2 6 1 ) (2 2 ) (2 8 3 ) (1 5 3 ) (9 ) 17 , 69 6 53 4 FI T T a x a b l e I n c . ( l i n e s 9 - 12 + - 13 ) 14 . 42 5 , 95 2 76 4 , 38 5 19 7 , 15 4 96 1 , 54 0 (1 0 7 , 93 3 ) (2 7 , 03 3 ) 59 9 , 37 7 46 4 , 4 1 2 Gr o s s F I T ( a t 3 5 % ) 15 . 52 4 50 5 26 7 53 5 00 4 33 6 , 53 9 (3 7 77 6 ) (9 , 46 1 ) 23 5 , 20 4 18 7 , 96 6 72 1 0 P C l a i m e d I T C ( - ) I ( 1 8 ) 16 . Su r t a x E l i m i n a t i o n ( - ) 17 . 72 2 0 F I T - Cu r r e n t ( l i n e s 1 5 - 16 - 17 ) 18 . 52 4 , 50 5 26 7 , 53 5 69 , 00 4 33 6 , 53 9 (3 7 , 77 6 ) (9 , 46 1 ) 23 5 , 20 4 18 7 , 96 6 T1 4 8 i d a h o 2 0 0 6 F o r m l 1 . xl s Pa g e 7 FO R M I I N P U T M A S T E R CO M P A N Y N A M E : C e n t u r y T e l o f G e m S t a t e - I d a h o , I n c . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 20 0 5 Se p a r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO L L P L S MT S & W A T S TO L L P L S FC C A c c o u n t a n d No t e Li n e Su b j e c t T o 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 19 9 8 F O R M I I N P U T M A S T E R Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 2 0 0 5 Se p a r a t e d R e s u l t s o f I d a h o O p e CO M P A N Y N A M E : C e n t u r y T e l o f I d a h o , I n c . To t a l I d 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 T o In t e r s t a t e No . No . Se p a r a t i o n s To l l To l l EA S Lo c a l ( O t h e r ) Se p a r a t i o n P a r a m e t e r s (1 9 ) Pl a n t SL U M i n u t e s o f U s e ( M O U ) 17 , 94 2 61 9 09 4 75 2 16 9 , 66 0 67 8 20 7 SL U F a c t o r 00 0 0 0 0 33 9 6 8 0 23 2 3 9 0 00 0 0 0 0 42 7 9 3 0 Ba s e S P F - J a n u a r y 1 00 0 0 0 0 25 0 0 0 0 28 9 8 4 0 46 0 1 6 0 Ba s e S P F - D e c e m b e r 3 1 00 0 0 0 0 25 0 0 0 0 28 9 8 4 0 46 0 1 6 0 Cu r r e n t C o m p o s i t e S P F (2 0 ) 00 0 0 0 0 25 0 0 0 0 28 9 8 4 0 46 0 1 6 0 19 9 6 W e i g h t e d D E M 00 0 0 0 0 85 0 0 0 0 00 0 0 0 0 15 0 0 0 0 19 9 6 U n w e i g h t e d D E M 00 0 0 0 0 29 7 6 7 0 25 2 7 9 44 9 5 4 0 Cu r r e n t C A T 3 D i a l E q u i p m e n t M i n u t e s (2 1 ) 17 , 94 2 , 61 9 09 4 , 75 2 16 9 , 66 0 67 8 , 20 7 Cu r r e n t C o m p o s i t e D E M F a c t o r 00 0 0 0 0 85 0 0 0 0 00 0 0 0 00 0 0 0 0 15 0 0 0 0 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 . Ho s U R e m o t e M O U K i l o m e t e r s (2 3 ) 11 . 15 , 00 3 , 39 2 10 , 87 4 , 02 4 45 1 , 45 2 67 7 , 91 6 Eq u a l A c c e s s M O U (2 4 ) 12 . 51 5 , 56 4 69 6 , 38 4 81 9 , 18 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 . Ta n d e m S w i t c h i n g M O U (2 6 ) 14 . IX C o n v e r s a t i o n M O U 15 . 53 5 , 25 8 66 5 , 36 9 86 9 , 88 9 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 . 51 5 , 53 1 53 , 62 3 , 69 4 36 , 89 1 83 7 Ot h e r P a r a m e t e r s Ac c e s s L i n e s 17 . 62 9 Un s e p a r a t e d L o o p C o s t l I D 1 1 . 1 R O R (2 7 ) 18 . 28 5 02 0 Gr o s s B i l l e d R e v e n u e s Ma 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 . 41 9 , 59 7 55 2 75 3 62 9 , 71 5 23 7 , 12 9 Pa y m e n t & C o l l e c t i o n - En d U s e r (2 8 b ) 20 . 00 9 , 42 0 30 6 , 67 2 36 2 , 62 6 34 0 , 12 2 Pa y m e n t & C o l l e c t i o n - CX R (2 8 c ) 21 . 18 2 46 8 55 2 , 75 3 62 9 , 71 5 Se r v i c e O r d e r C o n t a c t s Se r v i c e O r d e r P r o c . En d U s e r (2 9 a ) 22 . 36 , 35 9 36 2 8 1 Se r v i c e O r d e r P r o c . CX R (2 9 b ) 23 . Bil l i n g I n q u i r y C o n t a c t s Bil l i n g I n q u i r y - En d U s e r (3 0 a ) 24 . 99 3 79 5 6 Bi l l i n g I n q u i r y - CX R (3 0 b ) 25 . SP + R C T o l l M e s s a g e s (3 1 ) 26 . 54 4 , 98 3 64 , 84 2 48 0 , 14 1 EA S / L o c a l M e s s a g e s ( M s g . P r o c . 27 . BI G 3 ' E x p e n s e F a c t o r - Me s s a g e (3 2 ) 28 . 00 0 0 0 37 7 2 1 0 22 0 6 6 6 35 4 9 0 1 PL S & S p e c i a l A c c e s s 29 . 03 1 6 7 4 01 3 2 1 5 00 2 3 3 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 . 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 . 53 5 , 25 8 66 5 , 36 9 86 9 , 88 9 ra t i o n s T1 4 8 i d a h o 2 0 0 6 F o r m l 1 . xl s Pa g e 8