2011Annual Report.pdf

POT-T
ANNUAL RE4POk1;:T
NAME
MIKE GASSER & DAVID JONES
POTLATCH TELEPHONE CO
%TDS TELECOM
ACCOUNTING DEPT
204 N INDIANA ST -
ROACHDALE, IN 46172
! ['I
UTILITIES COMMISSION
FOR THE
YEAR ENDED 2011
ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO
THE IDAHO PUBLIC UTILITIES COMMISSION
FOR YEAR ENDED DECEMBER 31, 2011
COMPANY INFORMATION
Exact name of utility: Potlatch Telephone Company
Address of principal office: 702 E Main Street, Kendrick, ID 83537
Telephone Number: [phone] Randal Brunes - Manager Field Services
Cities or towns served: Kendrick Julietta Troy
Name and title of officer having custody of the general corporate books of account:
John Erpenbach, Assistant Treasurer [phone]
Address of office where corporate books are kept and phone number:
525 JUNCTION ROAD, SUITE 7000, MADISON, WI 53717
Organized under the laws of the State of: Idaho
Date of organization: May 6, 1988
Form of organization (proprietorship, association, corporation): Corporation
If a Subchapter S Corporation, please specify:
Name and address of controlling company, if any: TDS Telecommunications Corporation
525 JUNCTION ROAD, SUITE 7000, MADISON, WI 53717
Names of affiliated companies. Give address and description of business: See attached Page 1 a - Page lb
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 Address
President: David A. Wittwer 525 JUNCTION ROAD, MADISON, WI 53717
Vice President: James W. Butman 525 JUNCTION ROAD, MADISON, WI 53717
Vice President: Michael Gasser 525 JUNCTION ROAD, MADISON, WI 53717
Vice President: William J. Megan 525 JUNCTION ROAD, MADISON, WI 53717
Secretary: David P. Jones 525 JUNCTION ROAD, MADISON, WI 53717
Assistant Treasurer: John R. Erpenbach 525 JUNCTION ROAD, MADISON, WI 53717
Assistant Secretary: Irmgard F. Metz 525 JUNCTION ROAD, MADISON, WI 53717
Rev 3/02 Page 1
AFFILIATE COMPANIES
Company City State Zin Code Descrintion of Business
Telephone & Data Systems, Inc. Chicago IL 60602 Holding Company
TDS Telecommunications Corporation Madison WI 53705-0158 Holding Company
Amelia Telephone Corporation Amelia VA 23002-0076 Regulated Telecommunications Utility
Arcadia Telephone Company Arcadia OH 44804-0157 Regulated Telecommunications Utility
Arizona Telephone Company Phoenix AZ 85029-4814 Regulated Telecommunications Utility
Arvig Telephone Company Peguot Lakes MN 56472-0395 Regulated Telecommunications Utility
Asotin Telephone Company Asotin WA 99402-0399 Regulated Telecommunications Utility
Badger Telecom, LLC Neillsville WI 54456-1924 Regulated Telecommunications Utility
amardsville Telephone Company Barnardsville NC 28709-0006 Regulated Telecommunications Utility
Black Earth Telephone Company, LLC Black Earth WI 53515-0346 Regulated Telecommunications Utility
Blue Ridge Telephone Company Blue Ridge GA 30513-0607 Regulated Telecommunications Utility
c'nduel Telephone Company, LLC Bonduel WI 54107-0276 Regulated Telecommunications Utility
Bridge Water Telephone Company Monticello MN 55362-0298 Regulated Telecommunications Utility
Burlington, Brighton & Wheatland Telephone Company, LLC New Munster WI 53152-0801 Regulated Telecommunications Utility
Butler Telephone Company, Inc. Butler AL 36904-0398 Regulated Telecommunications Utility
Calhoun City Telephone Company, Inc. Calhoun City MS 38916-0578 Regulated Telecommunications Utility
Camden Telephone and Telegraph Company, Inc. Saint Marys GA 31558-6300 Regulated Telecommunications Utility
Camden Telephone Company, Inc. Camden IN 46917-0066 Regulated Telecommunications Utility
Central State Telephone Company, LLC Vesper WI 54489-0125 Regulated Telecommunications Utility
Chatham Telephone Company Chatham MI 49816-0197 Regulated Telecommunications Utility
Cleveland County Telephone Company, Inc. Rison AR 71665-0366 Regulated Telecommunications Utility
Cobbosseecontee Telephone Company North Anson ME 04958-0129 Regulated Telecommunications Utility
Communication Corporation of Michigan Augusta Ml 49012-0246 Regulated Telecommunications Utility
Communications Corporation of Indiana Roachdale IN 46172-0248 Regulated Telecommunications Utility
Communications Corporation of Southern Indiana Poseyville IN 47633-0309 Regulated Telecommunications Utility
Concord Telephone Exchange, Inc. Knoxville TN 37922-0610 Regulated Telecommunications Utility
Continental Telephone Company Continental OH 45831-0367 Regulated Telecommunications Utility
Decatur Telephone Company, Inc. Decatur AR 72722-0098 Regulated Telecommunications Utility
Delta County Tele-Comm, Inc. Paonia CO 81428-0730 Regulated Telecommunications Utility
Deposit Telephone Company, Inc. Deposit NY 13754-0087 Regulated Telecommunications Utility
flickeyville Telephone, LLC Dickeyville WI 53808 Regulated Telecommunications Utility
astCoast Telecom, LLC Cleveland WI 53015-0248 Regulated Telecommunications Utility
Edwards Telephone Company, Inc. Edwards NY 13635-0036 Regulated Telecommunications Utility
rantland Telecom, LLC Fennimore WI 53809-0020 Regulated Telecommunications Utility
Hampden Telephone Company Hampden ME 04444-0250 Regulated Telecommunications Utility
Happy Valley Telephone Company Anderson CA 96007-8262 Regulated Telecommunications U*dSI____________
Hartland and St. Albans Telephone Company Hartland ME 04943-0405 Regulated Telecommunications Ut,Iitv___________
Hollis _Telephone _Company, _Inc. Wilton NH 03086 Regulated Telecommunications Utility____________
Home Telephone Company Condon OR 97823-0486 Regulated Telecommunications Utility____________
Home Telephone Company, Inc. Waldron IN 46182-0068 Regulated Telecommunications Utility
omitos Telephone Company Anderson CA 96007-8262 Regulated Telecommunications Utility____________
Humphreys County Telephone Company Bruceton TN 38317-0155 Regulated Telecommunications Utility___________
Island _Telephone _Company Beaver_Island Ml 49782 Regulated Telecommunications Utility ____________
Kearsarge Telephone Company New London NH 03257-4551 Regulated Telecommunications Ufilit y
Leslie County Telephone Company Hyden KY 41749-0969 Regulated Telecommunications Utility
Lewis River Telephone Company, Inc. La Center WA 98629-0218 Regulated Telecommunications Utility
Lewisport Telephone Company Lewisport KY 42351-0439 Regulated Telecommunications Utility
Little Miami Communications Corporation Fayetteville OH 45118-0300 Regulated Telecommunications Utility
Ludlow Telephone Company Ludlow VT 05149 Regulated Telecommunications Utility
Mahanoy & Mahantango Telephone Company Herndon PA 17830-0336 Regulated Telecommunications Utility
McClellanville Telephone Company, Inc. McClellanvplle SC 29458-9723 Regulated Telecommunications Utility
McDaniel Telephone Company Salkum WA 98582-0030 Regulated Telecommunications Utility
Merrimack County Telephone Company Contoocook NH 03229-0337 Regulated Telecommunications Utility
Mid-America Telephone, Inc. Stonewall OK 74871 Regulated Telecommunications Utility
Mid-Plains Telephone, LLC Middleton WI 53562 Regulated Telecommunications Utility
Mid-State Telephone Company New London MN 56273-0609 Regulated Telecommunications Utility
Midway Telephone Company, LLC Medford WI 54451-0240 Regulated Telecommunications Utility
Mosinee Telephone Company, LLC Mosinee WI 54455-1199 Regulated Telecommunications Utility
Mt. Vernon Telephone Company, LLC Verona WI 53593-0095 Regulated Telecommunications Utility
Myrtle Telephone Company, Inc. Myrtle MS 38650 Regulated Telecommunications Utility
Nelson-Ball Ground Telephone Company Nelson GA 30151-0129 Regulated Telecommunications Utility
New Castle Telephone Company New Castle VA 24127-0728 Regulated Telecommunications Utility
New London Telephone Company New London MO 63459-0369 Regulated Telecommunications Utility
Northfield Telephone Company Northfield VT 05663-0030 Regulated Telecommunications Utility
Norway Telephone Company, Inc. North SC 29112-0160 Regulated Telecommunications Utility
akman Telephone Company, Inc. Oakman AL 35579-0305 Regulated Telecommunications Utility
Oakwood Telephone Company Oakwood OH 45873-0278 Regulated Telecommunications Utility
Oklahoma Communication Systems, Inc. Choctaw OK 73020-0220 Regulated Telecommunications Utility
neNeck IT Services Corporation Scottsdale AZ 85250 Data Center Services & Managed Hosting Provider
Orchard Farm Telephone Company Saint Charles MO 63301-6431 Regulated Telecommunications Utility
Oriskany Falls Telephone Corporation Vernon NY 13476-0900 Regulated Telecommunications Utility
Peoples Telephone Company, Inc. Centre AL 35960 Regulated Telecommunications Utility
Perkinsville Telephone Company, Inc. Ludlow VT 05149 Regulated Telecommunications Utility
Page 1a
AFFILIATE COMPANIES
Company City State ZID Code Description of Business
Port Byron Telephone Company Port Byron NY 13140 Regulated Telecommunications Utility
Quincy Telephone Company Quincy FL 32351-0189 Regulated Telecommunications Utility
Riverside Telecom, LLC Johnson Creek WI 53038-0280 Regulated Telecommunications Utility
& W Telephone Company, Inc. Sandborn IN 47578-0038 Regulated Telecommunications Utility
Salem Telephone Company Salem KY 42078-0025 Regulated Telecommunications Utility
Saluda Mountain Telephone Company Barnardsville NC 28709-0006 Regulated Telecommunications Utility___________
Scandinavia Telephone Company, LLC Iola WI 54945-0317 Regulated Telecommunications Utility ____________
Service Telephone Company Fair Bluff NC 28439-0307 Regulated Telecommunications Utility ___________
Shiawassee Telephone Company Perry MI 48872-0167 Regulated Telecommunications Utility ___________
Somerset Telephone Company Leakesville MS 39451-0429 Regulated Telecommunications Utility ___________
Southeast Mississippi Telephone Company, Inc. Leakesville MS 39451-0429 Regulated Telecommunications Utility____________
Southeast Telephone Company of Wisconsin, LLC Waterford WI 53185 Regulated Telecommunications Utility
Southwestern Telephone Company Quartzsite AZ 85359 Regulated Telecommunications Utility
Stephen Telephone Company Saint Stephen SC 29479-0128 Regulated Telecommunications Utility
Stockb(idge & Sherwood Telephone Company, LLC Sherwood WI 54169-0159 Regulated Telecommunications Utility
Strasburg Telephone Company Strasburg CO 80136-0535 Regulated Telecommunications Utility
Sugar Valley Telephone Company Loganton PA 17747-0037 Regulated Telecommunications Utility
TDS Hosted & Managed Services LLC Madison WI 53717 Holding Company
TDS Long Distance Corporation Madison WI 53717 Competitive Toll Provider
TDS Telecom Service Corporation Madison WI 53717 Telecommunications Management Services
TEAM Technologies, LLC Cedar Falls IA 50613 Data Center Services & Managed Hosting Provider
Tellico Telephone Company, Inc. Tellico Plains TN 37385-0009 Regulated Telecommunications Utility
Tennessee Telephone Company Knoxville TN 37938-0387 Regulated Telecommunications Utility
Tenney Telephone Company, LLC Alma WI 54610-0519 Regulated Telecommunications Utility
The Farmers Telephone Company, LLC Lancaster WI 53813 Regulated Telecommunications Utility
The Home Telephone Company of Pittsboro, Inc. Pittsboro IN 46167-0189 Regulated Telecommunications Utility
The Island Telephone Company Warren ME 04864-4263 Regulated Telecommunications Utility
The Merchants & Farmers Telephone Company Hillsboro IN 47949-0155 Regulated Telecommunications Utility
The State Long Distance Telephone Company, LLC Elkhorn WI 53121-0230 Regulated Telecommunications Utility
The Stoutland Telephone Company Stoutland MO 65567-0097 Regulated Telecommunications Utility
The Vanlue Telephone Company Vanlue OH 45890-0247 Regulated Telecommunications Utility
The West Penobscot Telephone & Telegraph Company Connna ME 04928-0468 Regulated Telecommunications Utility
'ton Telephone Company, Inc. Tipton IN 46072-1750 Regulated Telecommunications Utility
Township Telephone Company, Inc. Chaumont NY 13622 Regulated Telecommunications Utility
i-County Telephone Company, Inc. New Richmond IN 47967 Regulated Telecommunications Utility
Union Telephone Company Farmington NH 03835 Regulated Telecommunications Utility
UTELCO, LLC Monroe WI 53566 Regulated Telecommunications Utility
Vemon Telephone Company, Inc. Vernon NY 13476-0900 Regulated Telecommunications Utility
Virginia Telephone Company Hot Springs VA 24445-0799 Regulated Telecommunications Utility
SI, Incorporated St Paul MN 55101 Data Center Services & Managed Hosting Provider
Warren Telephone Company Warren ME 04864-4263 Regulated Telecommunications Utility
Waunakee Telephone Company, LLC Waunakee WI 53597-1423 Regulated Telecommunications Utility
West Point Telephone Company, Incorporated Roachdale IN 46172 Regulated Telecommunications Utility
Williston Telephone Company North SC 29112-0160 Regulated Telecommunications Utility
Wilton Telephone Company, Inc. Wilton NH 03086 Regulated Telecommunications Utility
Winsted Telephone Company Winsted MN 55395-0758 Regulated Telecommunications Utility
Winterhaven Telephone Company Winterhaven CA 92283 Regulated Telecommunications Utility
Wolverine Telephone Company Millington MI 48746-0292 Regulated Telecommunications Utility
Wyandotte Telephone Company Inola OK 74036-0849 Regulated Telecommunications Utility
Page 1b
DIRECTORS
List the name of each person who was a member of the Board of Directors at any given time during the
year: (Fees related to meetings only.)
Term Expired
or Current Term Meetings Attended
Name Will Expire This year
and Address
James W. Butman Open I
Kevin G. Hess Open 1
William J. Megan Open I
David A. Wittwer Open 1
Michael A. Pandow Open 1
Fees Paid
During Year
$0.00
$0.00
$0.00
$0.00
$0.00
Name of Chairman of the Board:
Name of Secretary (or Clerk) of Board: Secretary: David P. Jones
Number of Meetings of the Board during the year: 1
MANAGERS
List the name of each person who performed management duties for the Company during the year, and
the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts.)
Name Title Wages and Bonuses Paid
Randal Brunes Manager- Field Services
Rev 3/02
Page 2
NOTES TO THE FINANCIAL STATEMENTS
Please provide important information such as changes in accounting or depreciation practices,
extensions or additions to the system; disposal of any substantial portion of the property of the utility;
reorganization, mergers, or consolidations with other companies; leases executed; other contracts
or agreements entered into; changes made in articles of incorporation or amendments; the
occurrence of contingency losses or gains.
none
Rev 3/02
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
BALANCE SHEET
Assets and Other Debits
Balance Balance Increase
Beginning at End or
Title of Account of Year of Year (Decrease)
Current Assets
1120 Cash and Equivalents - - -
1130 Cash (4,827) 536,376 541,203
1140 Special Cash Deposits - - -
1150 Working Cash Advances
1160 Temporary Investments
1180 Telecommunications Accts. Receivable
1181 Accts. Rec. Allow. -Telecommunications
1190 Other Accounts Receivable
1191 Accounts Receivable Allow. - Other
1200 Notes Receivable
1201 Notes Receivable Allowance
1210 Interest & Dividends Receivable
1220 Material and Supplies
1280 Prepayments
1290 Prepaid Rents
1300 Prepaid Taxes
1310 Prepaid Insurance
1320 Prepaid Directory Expenses
1330 Other Prepayments
1350 Other Current Assets
Noncurrent Assets
1401 Investment in Affiliated Companies
1402 Investment in Nonaffiliated Companies
1406 Nonregulated Investments
4-26 Unamortized Debt Issuance Expense
1408 Sinking Funds
1410 Other Noncurrent Assets
1438 Deferred Maintenance & Retirements
1439 Deferred Charges
1500 Other Jurisdiction Assets - Net
Property, Plant and Equipment
2001 Telecommunications Plants in Service
2002 Prop. Held for Future Telecom. Use
2003 Telecom. Plant under Constr. - Short Term
2004 Telecom. Plant under Constr. - Long Term
2005 Telecom. Plant Adjustment
2006 Nonoperating Plant
2007 Goodwill
Depreciation and Amortization Accounts
3100 Accumulated Depreciated
3200 Accum. Depre. - Held for Future Use
3300 Accumulated Depreciation - Nonoperating
3400 Accumulated Amortization - Tangible
3410 Accum. Amort. - Capitalized Leases
3420 Accum. Amort. - Leasehold Improvements
3500 Accumulated Amortization - Intangible
3600 Accumulated Amortization - Other
TOTAL ASSETS
3,188,717 2,995,777 (192,940)
168,897 163,035 5,862)
(1,449) (4,473) 3,024)
199,272 280,677 81,405
T1 74) (3,269) (3,095)
2,772 1,832 (940)
9,790 8,705 (1,085)
3,400 3,400
180 (180)
8,073,457 8,108,595 35,138
16,362 35,673 19,311
(6,608,093) (6,823,853) (215,760)
5,048,304 5,302,475 254,171
Rev 3/02 Page 4
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
BALANCE SHEET
Liabilities & Stockholders' Equity
Balance Balance Increase
Beginning at End or
Title of Account of Year of Year (Decrease)
Current Liabilities
4010 Accounts Payable 242,099 243,654 1,555
4020 Notes Payable 0 0 0
4030 Advance Billings and Payments 88,999 89,528 529
4040 Customer Deposits 0 0 0
4050 Current Maturities - Long -Term Debt 0 0 0
4060 Current Maturities - Capital leases 0 0 0
4070 Income Taxes - Accrued 29,265 65,303 36,038
4080 Other Taxes - Accrued 27,663 3,338 (24,325)
4100 Net Current Defer. Oper. Income Taxes (154) (2,057) (1,903)
4110 Net Current Defer. Nonoper. Income Taxes (530) (1,144) (614)
4120 Other Accrued Liabilities 14,086 14,017 (69)
4130 Other Current Liabilities 2,773 3,052 279
Long-Term Debt
4210 Funded Debt 0 0 0
4220 Premium on Long-Term Debt 0 0 0
4230 Discount on Long-Term Debt 0 0 0
4240 Reacquired Debt 0 0 0
4250 Obligations Under Capital Leases 0 0 0
4260 Advances from Affiliated Companies 0 0 0
4270 Other Long-Term Debt 0 0 0
Other Liabilities & Deferred Credits
4310 Other Long-Term Liabilities (90,443) (83,080) 7,363
4320 Unamort. Oper. Invest. Tax Credits - Net 0 0 0
4330 Unamort. Nonoper. Invest. Tax Credits - Net 0 0 0
4340 Net Noncurrent Defer. Oper. Income Taxes 246,097 226,398 (19,699)
4350 Net Noncur. Defer. Nonoper. Income Taxes 0 0 0
4360 Other Deferred Credits 7,992 8,006 14
4370 Other Juris. Liab. & Def. Credits - Net 0 0 0
Stockholders' Equity 0
4510 Capital Stock 1,000 1,000 0
4520 Additional Paid-In Capital 2,523,519 2,523,519 0
4530 Treasury Stock 0 0 0
4540 Other Capital 57,163 51,957 (5,206)
4550 Retained Earnings 1,610,138 1,898,775 288,637
5000000 - 7999999 Net Income (Loss) 288,637 260,209 (28,428)
TOTAL LIAB. & OTHER CREDITS 5,048,304 5,302,475 254,171
Rev 3/02 Page 5
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
ANALYSIS OF TELECOMMUNICATIONS PLANT IN SERVICE
TOTAL Company Basis
Balance
Beginning
of Year
Analysis of Telecommunications Plant in Service
2111 Land 16,811
2112 Motor Vehicles 71,501
2113 Aircraft 0
2114 Special Purpose Vehicles 0
2115 Garage Work Equipment 0
2116 Other Work Equipment 74,008
2121 Buildings 376,233
2122 Furniture 22,929
2123 Office Equipment 3,180
2124 General Purpose Computers 28,253
2211 Analog Electronic Switching 0
2212 Digital Electronic Switching 1,336,315
2215 Electro-Mechanical Switching 0
2220 Operator Systems 0
2231 Radio Systems 0
2232 Circuit Equipment 1,424,657
2311 Station Apparatus 0
2321 Customer Premises Wiring 0
2341 Large Private Branch Exchanges 0
2351 Public Telephone Terminal Equipm€ 0
2362 Other Terminal Equipment 0
2411 Poles 49,199
2421 Aerial Cable 240,155
2422 Underground Cable 17,661
2423 Buried Cable 4,292,075
2424 Submarine Cable 0
2426 Intrabuilding Network Cable 0
2431 Aerial Wire 0
2441 Conduit Systems 82,675
TOTAL TEL PLT IN SERVICE 8,035,652
2003 Plant Under Construction 16,362
2681 Capital Leases 0
2682 Leasehold Improvements 0
2690 Intangibles 37,805
Plant
Retired
or Sold
0
0
0
0
0
(7,228)
(20,935)
(8,653)
0
(1,584)
0
(13,477)
0
0
0
(21,470)
0
0
0
0
0
(1,817)
(1,473)
0
(4,601)
0
0
0
0
(81,238)
0
0
0
(20,090)
Balance
End
of Year
16,811
104,542
0
0
0
69,928
359,679
14,276
3,180
28,327
0
1,322,838
0
0
0
1,450,878
0
0
0
0
0
52,854
251,965
18,402
4,303,211
0
0
0
82,745
8,079,636
35,673
0
0
28,959
Additions
During year
0
33,041
0
0
0
3,148
4,381
0
0
1,658
0
0
0
0
0
47,691
0
0
0
0
0
5,472
13,283
741
15,737
0
0
0
70
125,222
19,311
0
0
11,244
Transfers
and
Adjustments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
TOTAL REG 8,089,819 155,777 (101,328) 0 8,144,268
Rev 3/02 Page 6
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
ANALYSIS OF TELECOMMUNICATIONS PLANT ACCOUNTS
IDAHO Operations Only
Balance
Beginning Additions
of Year During Year
Analysis of Telecommunications Plant in Service
2111 Land 16,811 0
2112 Motor Vehicles 71,501 33,041
2113 Aircraft 0 0
2114 Special Purpose Vehicles 0 0
2115 Garage Work Equipment 0 0
2116 Other Work Equipment 74,008 3,148
2121 Buildings 376,233 4,381
2122 Furniture 22,929 0
2123 Office Equipment 3,180 0
2124 General Purpose Computers 28,253 1,658
2211 Analog Electronic Switching 0 0
2212 Digital Electronic Switching 1,336,315 0
2215 Electro-Mechanical Switching 0 0
2220 Operator Systems 0 0
2231 Radio Systems 0 0
2232 Circuit Equipment 1,424,657 47,691
2311 Station Apparatus 0 0
2321 Customer Premises Wiring 0 0
2341 Large Private Branch Exchanges 0 0
2351 Public Telephone Terminal Equipme 0 0
2362 Other Terminal Equipment 0 0
2411 Poles 49,199 5,472
2421 Aerial Cable 240,155 13,283
2422 Underground Cable 17,661 741
2423 Buried Cable 4,292,075 15,737
2424 Submarine Cable 0 0
2426 Intrabuilding Network Cable 0 0
2431 Aerial Wire 0 0
2441 Conduit Systems 82,675 70
TOTAL TEL PLT IN SERVICE 8,035,652 125,222
2003 Plant Under Construction 16,362 19,311
2681 Capital Leases 0 0
2682 Leasehold Improvements 0 0
2690 Intangibles 37,805 11,244
Plant
Retired
or Sold
X
0
0
0
0
(7,228)
(20,935)
(8,653)
0
(1,584)
0
(13,477)
0
0
0
(21,470)
0
0
0
0
0
(1,817)
(1,473)
0
(4,601)
0
0
0
0
(81,238)
0
0
0
(20,090)
Transfers
and
Adjustments
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Balance
End
of Year
16,811
104,542
0
0
0
69,928
359,679
14,276
3,180
28,327
0
1,322,838
0
0
0
1,450,878
0
0
0
0
0
52,854
251,965
18,402
4,303,211
0
0
0
82,745
8,079,636
35,673
0
0
28,959
TOTAL REG 8,089,819 155,777 (101,328) 0 8,144,268
Rev 3/02 PAGE 7
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
ANALYSIS OF ENTRIES IN ACCUMULATED DEPRECIATION
Account 3100
TOTAL Company Basis

Balance Credits

Beginning Depreciation During

of Year Rate* Year
Analysis of Entries in Accumulated Depreciation
Retirements
and
Adjustments
Balance
End
of Year
2112 Motor Vehicles 71,501
2113 Aircraft -
2114 Special Purpose Vehicles -
2115 Garage Work Equipment -
2116 Other Work Equipment 64,239
2121 Buildings 194,440
2122 Furniture 15,140
2123 Office Equipment 796
2124 General Purpose Computers 28,253
2211 Analog Electronic Switching -
2212 Digital Electronic Switching 1,122,004
2215 Electro-Mechanical Switching -
2220 Operator Systems -
2231 Radio Systems -
2232 Circuit Equipment 737,797
2311 Station Apparatus -
2321 Customer Premises Wiring -
2341 Large Private Branch Exchanges -
2351 Public Telephone Terminal Equipment -
2362 Other Terminal Equipment -
2411 Poles 49,199
2421 Aerial Cable 169,091
2422 Underground Cable 16,599
2423 Buried Cable 4,088,740
2424 Submarine Cable -
2426 Intrabuilding Network Cable -
2431 Aerial Wire -
2441 Conduit Systems 50,294

12.40% 0
- 0
- 1)
U

7.50% 5,406

3.00% 10,912

3.80% 597

3.80% 12fl
14.30%
(1
5.80% bb,bjb
0
0
0
6.75% 113,836
0
0
(1
U
0

5.18% 1,963

5.00% 12,200

5.50% 471

5.50% 116,928
0
0

5.00% 0

4.00% 3,308
0
0
0
0
(7,228)
(47,024)
(8,653)
0
(1,584)
0
(13,477)
0
0
0
(21,469)
0
0
0
0
0
(2,688)
(1,499)
0
(4,653)
0
0
0
0
71,501
0
0
0
62,417
158,328
7,084
916
28,327
0
1,165,163
0
0
0
830,164
0
0
0
0
0
48,474
179,792
17,070
4,201,015
0
0
0
53,602
TOTAL DEP RES TEL PLT 6,608,093 324,035 (108,275) 6,823,853
*Please list individual depreciation rate for each account.
Rev 3/02 Page 8
Credits Retirements Balance
During and End
Year Adjustments of Year
71,501
5,406 (7,228) 62,417
10,912 (47,024) 158,328
597 (8,653) 7,084
120 - 916
1,658 (1,584) 28,327
56,636 (13,477) 1,165,163
(21,469) 113,836 830,164
(2,688) 1,963 48,474
12,200 (1,499) 179,792
471 - 17,070
116,928 (4,653) 4,201,015
: 3,308 53,602
324,035 (108,275) 6,823,853
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
ANALYSIS OF ENTRIES IN ACCUMULATED DEPRECIATION
Account 3100
IDAHO Operations Only
Balance

Beginning Depreciation

of Year Rate*
Analysis of Entries in Accumulated Depreciation
2112 Motor Vehicles 71,501 12.40%
2113 Aircraft - -
2114 Special Purpose Vehicles - -
2115 Garage Work Equipment - -
2116 Other Work Equipment 64,239 7.50%
2121 Buildings 194,440 3.00%
2122 Furniture 15,140 3.80%
2123 Office Equipment 796 3.80%
2124 General Purpose Computers 28,253 14.30%
2211 Analog Electronic Switching - -
2212 Digital Electronic Switching 1,122,004 5.80%
2215 Electro-Mechanical Switching - -
2220 Operator Systems - -
2231 Radio Systems - -
2232 Circuit Equipment 737,797 6.75%
2311 Station Apparatus - -
2321 Customer Premises Wiring - -
2341 Large Private Branch Exchanges - -
2351 Public Telephone Terminal Equipment - -
2362 Other Terminal Equipment - -
2411 Poles 49,199 5.18%
2421 Aerial Cable 169,091 5.00%
2422 Underground Cable 16,599 5.50%
2423 Buried Cable 4,088,740 5.50%
2424 Submarine Cable - -
2426 Intrabuilding Network Cable - -
2431 Aerial Wire - 5.00%
2441 Conduit Systems 50,294 4.00%
TOTAL 6,608,093
*pl ease list individual depreciation rate for each account.
Rev 3/02 Page 9
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
INVESTMENTS
Report below the investments in Accounts 1401, 1402 and 1406. Identify each investment as to the
account in which included. Minor amounts in Account 1406 may be grouped by classes.
Book Cost of Book Cost of
Investments Investments
Disposed of Held at
Description Date Acquired This year End of Year
1401 Investment in Affiliated Co. -
1402 Investment in Nonaffiliated Co. -
1406 Nonregulated Investments 180 -
Totals 0
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 maybe combined.
Amount at End of Year
Notes Accounts
Accounts Name of Company Receivable Receivable
1180 Due from Customers 158,562
1190 Due from Affiliates 19,436
1190 Due from Connecting Companies 65,451
1190 Due from Federal & State Pools 63,213
1190 Other & Accruals 129,308
1190 Federal & State Taxes 0
1210 Interest 1,832
Totals 437,802
Rev 3/02 Page 10
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
NOTES PAYABLE
For Notes Payable, list each note separately and include the maturity date and interest rate.
Interest
Name of Creditor Date of Note Rate Due Date Face Amount
NONE
Totals
ACCOUNTS PAYABLE
Report below all Accounts Payable amounting to more than $100.00
Name of Creditor
Due to Affiliates
Due to Federal & State Pools
Due to Connecting Companies
Due to USAC
A/P - Trade
Other & Accruals
Amount
122,050
55,700
3,812
2,409
57,011
2,672
243,654
Rev 3/02 Page 11
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
LONG - TERM DEBT
Accounts 4210, 4240, 4250, 4260, 4270 and 4310
List the required data for each obligation included in these accounts, grouping them by account number and showing totals for each account.
If any obligations mature serially or otherwise at various dates, give particulars in a note.
Date Date Face Premium! Discount
of of Amount Outstanding Year Interest for year
Class & Series of Obligation Issue Maturity Authorized Year-End Total Amortized Rate Amount
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 -
4310 Other Long-Term Liabilities * (83,080)
*

Post _Retirement _Benefit-SFAS_158
Rev 3/02 Page 12
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
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.

Number Outstanding per

of Shares Par Value Balance Sheet
Class & Series of Stock Authorized per Share Shares Amount
Common Stock 10,000 $1.00 1,000 $1,000
Rev 3/02 Page 13
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
INCOME & RETAINED EARNINGS STATEMENT
Item Total Company Idaho Only
Total Operating Income (from page 15) 1,444,078 1,444,078
Total Operating Expenses (from page 17) 1,189,465 1,189,465
7100 Other Operating Income and Expense (15,581) (15,581)
7210 Operating Investment Tax Credits-Net
7220 Operating Federal Income Taxes 91,538 91,538
7230 Operating State and Local Income Taxes 28,045 28,045
7240 Operating Other Taxes 14,826 14,826
7250 Provision for Deferred Operating Income Taxes-Net (17,169) (17,169)
7200 Operating Taxes (Total) 117,240 117,240
7310 Dividend Income - -
7320 Interest Income 15,176 15,176
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 15 15
7370 Special Charges (235) (235)
7300 Nonoperating (Income) and Expense 14,956 14,956
7410 Nonoperating Investment Tax Credits-Net - -
7420 Nonoperating Federal Income Taxes 58,253 58,253
7430 Nonoperating State and Local Income Taxes 13,690 13,690
7440 Nonoperating Other Taxes - -
7450 Provision for Deferred Nonoperating Income Taxes-Net (614) (614)
7400 Nonoperating Taxes 71,329 71,329
7510 Interest on Funded Debt - -
7520 Interest Expense-Capital Leases - -
7530 Amortization of Debt Issuance Expense - -
7540 Other Interested Deductions 7 7
7500 Interest and Related Items 7 7
7610 Extraordinary Income Credits - -
7620 Extraordinary Income Charges - -
7630 Current Income Tax Effect of Extraordinary Items-Net - -
7640 Provision for Deferred Income Tax Effect of - -
Extraordinary Items-Net - -
7600 Extraordinary Items - -
7910 Income Effect of Jurisdictional Ratemaking
Differences-Net - -
7990 Nonregulated Net Income (Exp) 163,635 163,635
AMOUNT TRANSFERRED TO RETAINED EARNINGS 260,209 260,209
Rev 3/02 Page 14
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
OPERATING REVENUES
Item Total Company Idaho Only
Local Network Services Revenues
5001 Basic Area Revenue 341,044 341,044
5002 Optional Extended Area Revenue 13 13
5003 Cellular Mobile Revenue 0 0
5004 Other Mobile Services Revenue 24,272 24,272
5010 Public Telephone Revenue 0 0
5040 Local Private Line Revenue 12,659 12,659
5050 Customer Premises Revenue 0 0
5060 Other Local Exchange Revenue 58,193 58,193
5069 Other Local Exchange Settlements 0 0
Network Access Services Revenues
5081 End User Revenue (SLC) 142,700 142,700
5082 Switched Access Revenue (Interstate) 289,671 289,671
5083 Special Access Revenue 142,449 142,449
5084 State Access Revenue (Intrastate) 342,151 342,151
Long Distance Network Services Revenues
5100 Long Distance Message Revenue -All 0 0
Miscellaneous Revenues
5230 Directory Revenue 9,778 9,778
5240 Rent Revenue 127 127
5250 Corporate Operations Revenue 0 0
5261 Special Billing Arrangements Revenue 0 0
5262 Customer Operations Revenue 0 0
5263 Plant Operations Revenue 0 0
5264 Other Incidental Regulated Revenue 5,653 5,653
5269 Other Revenue Settlements 0 0
5270 Carrier Billing & Collection Revenue 74,170 74,170
Uncollectible Revenues
5301 Uncollectible Revenue -Telecommunications 1,181 1,181
5302 Uncollectible Revenue - Other 17 17
TOTAL OPERATING REVENUES 1,444,078 1,444,078
Please identify the following revenues:
NECA USF 1,818 To what account were they booked? 5082 Switched Access Revenue (Interstate)
State USF 0 To what account were they booked? 5084 Switched Access Revenue (Intrastate)
Page 15
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
OPERATING EXPENSES
Item Total Company Idaho Only
Plant Specific Operations Expense
6110 Network Support Expenses - -
6112 Motor Vehicle Expense (2,175) (2,175)
6113 Aircraft Expense - -
6114 Special Purpose Vehicles Expense 2,966 2,966
6115 Garage Work Equipment Expense - -
6116 Other Work Equipment Expense - -
6120 General Support Expenses - -
6121 Land and Building Expenses 78,103 78,103
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 36,587 36,587
6215 Electro-Mechanical Expense - -
6220 Operators System Expense - -
6230 Central Office Transmission Expenses - -
6231 Radio Systems Expense - -
6232 Circuit Equipment Expense 47,850 47,850
6310 Information Origination/Termination Expense - -
6311 Station Apparatus Expense - -
6341 Large Private Branch Exchange Expense - -
6351 Public Telephone Terminal Equipment Expense - -
6362 Other Terminal Equipment Expense - -
6410 Cable and Wire Facilities Expenses - -
6411 Pole Expense 4,071 4,071
6421 Aerial Cable Expense 20,249 20,249
6422 Underground Cable Expense - -
6423 Buried Cable Expense 102,047 102,047
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 289,698 289,698
Rev 3/02 Page 16
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
PERATING EXPENSES
Item Total Company Idaho Only
0 0
0 0
0 0
0 0
22,040 22,040
63,600 63,600
24,525 24,525
9,943 9,943
13,103 13,103
24,665 24,665
0 0
302,106 302,106
0 0
0 0
16,914 16,914
1,084 1,084
477,980 477,980
0 0
7,172 7,172
63,237 63,237
18,088 18,088
0 0
147 147
5,674 5,674
78,004 78,004
172,322 172,322
0 0
42,016 42,016
3,564 3,564
0 0
61,175 61,175
45,823 45,823
22,865 22,865
54,475 54,475
6,052 6,052
2,980 2,980
0 0
10,515 10,515
0 0
249,465 249,465
1,189,465 1,189,465
Plant Nonspecific Operations Expense
6510 Other Property/Plant/Equipment 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
(EXCLUDE OPERATING TAXES & Acct.
711,713,715,716.
Rev 3/02 Page 17
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
CENTRAL OFFICE DATA
as of December 31, 2011 (unless otherwise indicated)
Name of Central Office: Kendrick
Prefix (es): 289
Central Office Switch Type: EWSD
Check all that apply: Check one: Check one:
Stand Alone Digital X Electronic X
Host X Analog Electro-Mechanical
Remote Other:
Access Line Capacity Access Lines in Use
Design: 3,840 Customer Lines: 626
(Include Centrex, PAL, Semi-Pub.)
Installed/Equipped: 1,280 Wired/576 Equipped
Public Telephone Lines 0
Company Official Lines 13
Company Test Lines 16
Classification of Customer Access
Residence Business
Multi- Single Line Multi- Single Line Total
Line Multi- Subtotal Centrex Line Multi- Subtotal Residence
1-Party 1-Party Party Residence N.A.R. 1-Party 1-Party Party Business & Business
Beginning of Year 448 - 448 22 167 21 - 210 658
New Connects -
Disconnects (9) (9) (21) (2) (23) (32)
End of Year 439 - 439 22 146 19 - 187 626
Foreign Exchange: Directory Listings:
Dial Tone from this CO.: 0 Number of Customers with Nonpublished or Nonlisted: 31
Dial Tone from another CO.: 0
Custom Calling:
Number of customers with at least one feature:
Total number of features subscribed to:
Rev 3/02 Page 18
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
CENTRAL OFFICE DATA
as of December 31, 2011 (unless otherwise indicated)
Name of Central Office: Julietta
Prefix (es): 276
Central Office Switch Type: EWSD
Check all that apply: Check one: Check one:
Stand Alone Digital X Electronic X
Host Analog Electro-Mechanical
Remote X Other:
Access Line Capacity Access Lines in Use
Design: 3,840 Customer Lines: 444
(Include Centrex, PAL, Semi-Pub.)
Installed/Equipped: 1,280 Wired/448 Equipped
Public Telephone Lines
Company Official Lines 1
Company Test Lines
Classification of Customer Access
Residence
Multi- Single Line
Line Multi- Subtotal
1-Party 1-Party Party Residence
Beginning of Year 385 - 385
New Connects -
Disconnects (3) (3)
End of Year - 382 - 382
4
Business
Multi- Single Line Total
Centrex Line Multi- Subtotal Residence
N.A.R. 1-Party 1-Party Party Business & Business
11 36 16 63 448
0 0
(1) (1) (4)
11 35 16 62 444
Foreign Exchange:
Dial Tone from this C.O.: 0
Dial Tone from another C.O.: 0
Custom Calling:
Number of customers with at least one feature:
Total number of features subscribed to:
Directory Listings:
Number of Customers with Nonpublished or Nonlisted: 46
Rev 3/02 Page 18 b
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
CENTRAL OFFICE DATA
as of December 31, 2011 (unless otherwise indicated)
Name of Central Office: Troy
Prefix (es): 835
Central Office Switch Type: EWSD
Check all that apply: Check one:
Stand Alone Digital X
Host Analog -
Remote X
Access Line Capacity
Design: 3,800
Installed/Equipped: 1,876 Wired/955 Equipped
Check one:
Electronic X
Electro-Mechanical -
Other:
Access Lines in Use
Customer Lines: 702
(Include Centrex, PAL, Semi-Pub.)
Public Telephone Lines
Company Official Lines 11
Company Test Lines 4
Classification of Customer Access
Residence Business
Multi- Single Line Multi- Single Line Total
Line Multi- Subtotal Centrex Line Multi- Subtotal Residence
1-Party 1-Party Party Residence N.A.R. 1-Party 1-Party Party Business & Business
Beginning of Year 586 - 586 - 81 38 - 119 705
New Connects 0 2 2 2
Disconnects 0 (5) (5) (5)
End of Year - 586 - 586 - 83 33 - 116 702
Foreign Exchange: Directory Listings:
Dial Tone from this C.O.: 0 Number of Customers with Nonpublished or Nonlisted: 46
Dial Tone from another CO.: 0
Custom Calling:
Number of customers with at least one feature:
Total number of features subscribed to:
Page 18 c
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
NUMBER OF CALLS COMPLETED BY CUSTOMERS DURING 2011
Average # Local Calls Toll Calls Originated (Total of all Carriers)
of Customer Number Avg./ Avg.!
Local Exchange Lines in Use (bOOs) * Line Intrastate Interstate Total Line
1 Kendrick 642 NA NA 222,106 93,622 315,728 492
2Julietta 446 NA NA 105,324 47,086 152,410 342
3Troy 704 NA NA 132,260 99,391 231,651 329
Page 19
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
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 Teleohone Coroorations
Idaho Telephone Solicitation Act Notification
Method of Notification:
Mailed separately to customers Yes N0X
Included in directory Yes—X— No_
Date of notification November 1, 2011
Alternate method of notification
Rule IDAPA 31.41.01.403.02
Record of Complaints:
Number received by Company 3
Category of complaints (if known):
Deposit Disputes N/A
Charges on Bill 1
Denial/Termination N/A
Quality or Availability 1
of Service
Carrier Selection/Assignment
Miscellaneous 1
Page 20
POTLATCH ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES
FOR YEAR ENDED DECEMBER 31, 2011
CERTIFICATE
State of Idaho
) ss
County of Latah )
WE, the undersigned Mike A. Gasser and David P. Jones of the Potlatch Telephone Company
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.
(ChieYOfficer)
(Officer in ChØe of Accounts)
Subscribed and Sworn to Before Me this day of /li+ ic W , (Year) 2 C)JZ
tMEEM.Notary Public
My Commission expires 2 / , 1522 O/$ (Year)
gdklexcelljnelson/anulrpts/t&annualrpt
Rev 3/02 Page 21