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HomeMy WebLinkAbout2001Annual Report.pdfIdaho Policy and Law ,- , , 999 Main Street, 11th Floor . c" L i VEl)oise, 10 83702 ~- ,.'" ..." April 12, 2002 re? ! 2 t; 2: 23 Qwest. , - j ii.i Ii;:; (. Jean Jewell Secretary Idaho Public Utilities Commission O. Box 83720-0074 ISSIDIl RE: QWEST YEAR 2001 ANNUAL REPORT FORM M FILINGS FOR NORTH AND SOUTH IDAHO OPERATIONS PER 61-405 Dear Jean Enclosed please find three copies of Qwest Corporation s Form M's for its northern and southern Idaho operations. The various schedules included in the reports are outlined in the table of contents. The 2001 report is organized in a new format, yet contains the information provided to you in previous year s reports. Qwest expects to file its 2001 Annual Line Report Addendum with the Commission on or about April 15, 2002. If! can be of any further assistance to the Commission in its review of these schedules, please feel free to contact me on 208-385-8666. AU. .. '1ql/ USA Q%)"",em,,, Proud Sponoor ..' '- ';.. lrn , "- " -' " C LJ -'" ' ; ,-o , '- ; i if i'c'O 0~;S!CJ;i QWEST CORPORATION DENVER, COLORADO TO THE PUBLIC UTILITY COMMISSION OF IDAHO (NO. FOR THE YEAR ENDING DECEMBER 31 , 2001 Office or other person to whom correspondence should be addressed concerning this report: Name: James M. Schmit Title: Vice President Address: 999 Main St, 11th Floor City: Boise State: Idaho Zip: 83702 ANNUAL REPORT FORM M PUBliC UTIUTY COMMISSION OF IDAHO (NO) TABLE OF CONTENTS REPORT DESCRIPTION MR 2, IP Balance Sheet Accounts MR 2A, IP Changes in Telephone Plant Accounts MR 3, IP Income Statement MR 3A, IP Details of Certain Accounts Included on Report No. MR 4, IP Summary of Operating Revenues MR 5, IP Operating Expenses ARMIS 43-02, IP 5, Analysis of Entries in Accumulated Depreciation ARMIS 43-, IP 7, Bases of Charges for Depreciation MR2, TOTAL COMPANY Balance Sheet Accounts MR2A, TOTAL COMPANY Changes in Telephone Plant Accounts MR3, TOTAL COMPANY Income Statement MR3A, TOTAL COMPANY Details of Certain Accounts Included on Report No. MR4, TOTAL COMPANY Summary of Operating Revenues MR 5, TOTAL COMPANY Operating Expenses MR2 IDAHO-PACIFIC Qwest Corporation Balance Sheet Assets Cu"ent 1 Cash and Short Term Investments (1130,40,60) Receivable Trade (1180 1181 1190.8720. Other (1200,1190.29,1210,8720. Total Receivable Inventories (1220) Prepd Exp & Oth Curr Asset (1290,1300 10,20,50) 7 Total Current Assets Property, Plant and Equipment Telecommunications Plant in Service (2001) .. 9 Telecommunications Plant Under Const (2003 2004) 10 Prop Held for Future Use & Plant Adj (2002 2005) 11 Non-Operating Plant (2006)12 Gross Property, Plant and Equipment 13 Less-Ace Depree. & Amort (31-3300 3410 20,35-3600)14 Total Telephone Plant Less Reserves Investments and Other Assets 15 Investments in Affiliated Companies (1401)16 Investments in Non-Affiliated Companies (1402)17 Nonregulated Investments (1406) 18 Unamortized Debt Issuance Expense (1407)19 Sinking Funds (1408) 20 Other Noncurrent Assets (1410)21 Deferred Charges (1437,1438 1439,8730)22 Goodwill. Net (2007)23 Other Jurisdictional Assets - Net (1500)24 Total Investments and Other Assets 25 Total Assets Monthly Report NO. Sheet 1 Period: December 2001 At End Increase Over Of Month Dec. 31 Last 2,402,685 137 984 880 360 177 880 360 29,177 769 28,965 305 916 392 118 229 042 289,441 162 261 85,171 . 25 543 374 612 187 804 47,471 267 921 730- 26,903 346 109 534 656 516 23,468 673 156 168,271- 2,437,367 137 210 10,767 039 007 594- 062 503 330.982 MR2 IDAHO-PACIFIC Qwest Corporation Balance Sheet Liabilities Current Short Term Borrowings (4020) Accounts Payable and Accrued Liabilities Accounts Payable - Trade (4010.1,.21,.23) Accounts Payable - Other (4010.29) Employee Compensation (4010.24,4120. Advance Billing and Payments (4030) Dividend Payable (4010.32,4120. 7 Customers' Deposits (4040) Other (401 33,4130,4080,4120,excpt 4120. Total Acct Payable & Accured Liabilities10 Income Taxes Payable (4070,4100,4110)11 Current Portion long Term Borrowing/Lease (4050,4060) 12 Total Current Liabilities Other 13 Long Term Borrowings (4210,20,30,40 60,70) 14 Accum Deferred Income Taxes (Non-Current) (4340,41 50)15 Unamortized Investment Tax Credit (4320,4330)16 Other (4310,4360,4361) 17 Oth Juris Liabilities & Deferred Credits - Net (4370)18 Total Other Liabilities 19 Total Liabilities Shareholders' Equity20 Capital Stock - Common (4510.21 Capital Stock - Preferred (4510.22 Capital Stock - Restricted (4510. 23 Additional Paid-In Capital (4520) 24 Treasury Stock (4530)25 Other Capital (4540)26 Retained earnings - Appropriated (4550.27 Retained earnings - Unappropriated (4550.28 Total Capital Stock and Retained Earnings 29 Total Liabilities and Capital Monthly Report NO. Sheet 2 Period: December 2001 At End Increase Over Of Month Dec. 31 Last 203,824 121 675- 185 323 992- 673-214- 678,318 23,241- 097 026- 328,172 154,796 1,430,061 38,352- 381 014 194,066- 845 621 849,919 225,797- 37,486 564- 262.690 395,138 881 841 66,991- 219,314 281 081 906,440 211 511- 307,772 345,154 10,157,691 880,643- 668 904 813 205,957 32,904 813 211 625 43,062,503 330 982 MR2A IDAHO-PACIFIC Qwest Corporation Changes In Telephone Plant Accounts 1 2111 - Land 22112 - Motor Vehicles 3 2113 - Aircraft 4 2114 - Special Purpose Vehicles 5 2115 - Garage Work Equipment 6 2116 - Other Work Equipment 7 Total Vehicles & Work Equipment 8 2121 - Buildings 9 2122 - Furniture 10 2123 - Office Equipment 11 2123 - Company Communication Equipment 12 Total Furniture & Office Equipment 13 2124 - General Purpose Computers 14 2211 - Analog Switching 15 2212 - Digital Switching 16 720C GAAP AFUDC 17 2215 - Step-by-Step Switching 182215 - Crossbar Switching 19 2220 - Operator Systems 20 2231 - Radio Systems 21 2232 - Circuit DDS 22 2232 - Circuit Digital 23 2232 - Circuit Analog 24 Total Central Office Equipment 25 2311 - Station Apparatus 26 2321 - Customer Premises Wiring 27 2341 - Large PBX 28 2351 - Public Telephone Tenninal Equipment 29 2362 - Other Terminal Equipment 30 Total Other Terminal Equipment 31 2411 - Poles 32 2421 - Aerial Cable - Metallic 33 2421 - Aerial Cable - Non-Metallic 34 2422 - Underground Cable - Metallic 35 2422 - Underground Cable - Non-Metallic 36 2423 - Buried Cable - Metallic 37 730C - GAAP AFUDC 38 2423 - Buried Cable. Non-Metallic 39 2424 - Submarine Cable - Metallic 40 2424 - Submarine Cable - Non-Metallic 41 2426 - Intrabuilding Cable - Metallic 42 2426 - Intra building Cable - Non-Metallic 43 2431 - Aerial Cable 44 2441 - Conduit 45 Total Outside Plant 46 Total Owned Property, Plant, & Equipment Monthly Report NO. 2A Sheet 1 Period: December 2001 This Year To Date --- Total At Plant Added Plant Retired Net Increase End of Period 70,861 160 200 384 384-384 14,327 384 384-174 911 719-719-120 346 568 578 146 106 106-936 111 246 135-132 350 304,689 344 283,345 995,038 811 811-606,234 754-691 11,444-184 585 502 083 014 497 069 137 098 15,135 947 188 587,412 813,264 052 776,212 642 715 299,694 383 96-55,479 471 651 55,383 96-55.479 771 345 14,625 625 766,948 68,005 748 65,256 551 295 51,560 366 46,194 3.407 647 261-261-335 997 222,434 583 220 852 023,479 13,205 13,205 088 858 163.411 717 22,717 295,067 139 139 13,224 135 151 320-320-583,397 392,169 696 382,473 364,474 257.096 59,142 197 954 171 734 MR2A IDAHO-PACIFIC Qwest Corporation Changes In Telephone Plant Accounts 47 2681 - Capital Leases. Buildings 48 2681 - Capital Leases - Vehicles 49 2681 - Capital Leases - Computers 50 2681 - Capital Leases - Software 51 2681 . Capital Leases - Other 52 Total Capital Leases 53 2682 - Leaseholds - Buildings 54 2682 - Leaseholds - Computers 55 2682 - Leaseholds - Towers 56 2682 - Leaseholds - Radio 57 2682 - Leaseholds - Others 58 Total Leasehold Improvements 59 2690 - Intangibles - Organization Fees 60 2690 - Intangibles - Franchises 61 2690 - Intangibles - Patents 62 2690 - Intangibles - Trademar1l.s 63 2690 - Intangibles - Software 64 2690 - Intangibles - Spectrum Rights 65 2690 . Intangibles - Other 66 Total Intangibles 67 Total Leases, Leaseholds, & Intangibles 68 Total Expenditures 69 2002 - Held for Future Use 70 2003 - Under Construction - Short Temn 71 2004 - Under Construction - Long Term 72 2005 - Telephone Plant Adjustments 73 Telecommunication Plant 74 2006 - Non-Operating Plant 75 2007 - Goodwill 76 Total Telecommunication Plant Monthly Report NO. 2A Sheet 2 Period: December 2001 This Year To Date Total At Plant Added Plant Retired Net Increase End of Period 417-35,276 693-117 707 417-276 35,693-117 707 417-276 35,693-117 707 256 679 94,419 162 261 289,441 379 379 80,016 45,836-45,836-155 282,223 94,419 187,804 374 612 1 ,282 223 94,419 187 804 374 612 MR3 Monthly Report NO. Sheet 1 IDAHO-PACIFIC Period: December 2001 Owest Corporation Income Statement This Year Inc Over Same To Date Pd Last Year REVENUE Local Service (5001-5069)846,079 976,173- Access Service Interstate (5081-5083)483 546 692,582- Intrastate (5084)577 510 109,105 Long Distance Service (5100-5160)571 236 300,654- Miscellaneous (5230-5280, Excl 5280.4 , . 891,621 19,386 Total Revenue 18,369,992 840,918- EXPENSE Cost of Service and Products Maintenance (6110-6441 6531 6533)681 686 355,727- Engineering (6535)107 086 46,012- Network Operations (6534)173 394 223 647~ Network Administration (6532)285 188 290 062 Access Interstate (6540.013 842- Intrastate (6540.367 19,219- Intrastate Wireless Wholesale (6540.534 799 Interstate Competitive Local Exch Carriers (6540.4) Intrastate Competnive Local Exch Carriers (6540. Inter Competive Local Exch (6540.61) Intra competive Local Exch (6540.62) AC CLEC ILEC (6540.63) Universal Service Fund Contribution (6540.244 561 102,158 Other (6511 6512,5280.4)23,036-22,501- Total Cost Of Services and Products 506,795 280,929- Selling, General and Administrative Customer Operations (6610-6620)2,470,623 259,222- Corporate Operations Executive, Planning & Legal (6711-12,6725)132,289 206,326- Accounting and Finance (6721)98,795 20,985- External Relations (6722)181 559 470- Human Resources (6723)81,354 462- Information Management (6724)540,950 159 320- Other (6726-6790 8747)236,312 272,500- Total Corporate Operations 271 259 743 063- Property Taxes (7240.672,045 86,057 Other Operating Taxes (7240.2 - .373 681- Uncollectibles (5300 & 5280.134,071 904 Total Selling, General & Administrative 569,371 888 005- Other Operating (Income) & Expense (7100) Depreciation & Amortization (6560)020,693 198,776 Total Operating Expense 096,859 29,842 Income From Operations Before Taxes 273 133 870 761- Interest Expense (7500)643,184 133,582- Non Operating (Income) & Expense (7300 &7440)518 094 417- Income Before Income Taxes 111,855 696,761- Income Taxes Federal (7210.7220 7250.1&.7410,7420 7450.109 914 648 048- State & Local (7210.3&4 7230.7250.2,.5,. 72,.73,.79,7410.7430 7450.2,.3,.5&.144 740 113 813- Income Before Juris Diff & Extraord Items 857 201 934 900- Jurisd. Diff & Nonreg Net Income (7910,7990)348 720-697,425- Extraordinary Items (7600) Net Income 205,921 237.475- - Denotes Negative Amount MR3A IDAHO-PACIFIC awest Corporation Details of Certain Accounts Included on Monthly Report No. Interest and Related Items Interest on Funded Debt (7510) Interest Expense - Captial Lease (7520) Amortization of Debt Issuance Expense (7530) Other - Advances - Affiliates (7540.11) - Other Affiliates (7540.19)6 -Institutions (7540.21) - Banks (7540.22)8 -Reseller (7540.23)- 9 - Miscellaneous (7540.29)10 Total Other (7540)11 Total.lnterest Expense Other Operating (Income) and Expense Accounts12 Income from Custom Work (7110)13 Return from Nonregulated Use of Nonreg Fac (7130)14 (Gains) and Losses from Foreign Exchange (7140)15 (Gains) and Losses from Disp Land & Artwrk (7150)16 Other (7160)17 Total Other Operating (Income) and Expense Nonoperating Income and Expense Accounts18 Dividend Income (7310)19 Interest Income (7320)20 Income from sinking and Other Funds (7330)21 Allow. for Funds Used During Construction (7340)22 Gains/Losses from Dispositions of Property (7350)23 Other (7360)24 Special Charges (7370)25 Other Taxes (7440)26 Total Nonoperating Income and Expense Income Taxes - Federal27 Operating FIT (7220)28 Prov for Deferred Oper FIT-Originating (7250.29 Income Tax Allocation Adjustment (7250.71)30 Operating Investment Tax Credit-Net (7210.31 Total Normalized Operating FIT32 Nonoperating FIT (7420)33 Prov for Def Nonoper. FIT-Originating (7450.34 Nonoperating Investment Tax Credit-Net (7410)35 Total Normalized Nonoperating FIT36 Total Federal Income Tax Supplement A to Monthly Report NO. Sheet 1 Period: December 2001 This Year To Date Inc Over Same Pd Last Year 562 885 578 551 558- 257 575 881 170 643,184 553,440 38,416- 387- 613- 069 518 094 948,589 211,634 829- 092,394 768 752 520 109 914 133 217- 536 2,432- 558- 257 649- 5,485 2,470- 133,582- 13,547 33,470- 042 11 ,548- 891- 96- 417- 027 113- 335,482 339- 691,970- 37,187 735 43,922 648,048- MR3A IDAHO-PACIFIC Qwest Corporation Details of Certain Accounts Included on Monthly Report No. Supplement A to Monthly Report NO. Sheet 2 Period: December 2001 This Year Inc Over Same To Date Pd Last Year 763 600- 690 967 838 39,465- 160 291 098- 13,311 16,283- 862-30,432- 551-715- 144 740 113,813- Income Taxes - State and Local Operating SIT (7230) SIT Provisioning Deferred (7250. Prov for Deferred Oper SIT-Reversing (7250.4 Income Tax Allocation Adjustment (7250.72) State Invest Tax Cr (7210. Operating Investment Tax Credit-Net (7210.3 &.4)- 7 Total Normalized Operating SIT Nonoperating SIT Credit (7410. Nonoperating SIT (7430)10 Prov for Def Nonoper. SIT-Income (7450.11 Prov for Def Nonoper. SIT-Originating (7450.3,.12 Prov for Def Nonoper. SIT-Reversing (7450.413 Total normalized Nonoperating SIT14 Total State and Local Income Taxes Jurisdictional Differences and Nonregulated Income Accounts15 Income Effect of Juris Ratemarking Diff-Net (7910)16 Nonregulated Net Income (7990)17 Total (7900) Extraordinary Items Extraordinary Income Credits (7610) Extraordinary Income Charge (7620) Current Inc Tax Effect of Extraordinary Items - Net (7630) Prov for Def Inc Tax Effect of Extraordinary Items - Net (7640) Total Extraordinary Items (7600) 348 720- 348 720- 697,425- 697,425- MR4 IDAHo-pACIFIC Owest Corporation Summary Of Operating Revenues Local Network Services Basic Local Services Basic Area (5001) Optional Extended Area (5002) Other Mobile Local Service (5004) Total Basic Local Service (5000) Public Telephone (5010) Local Private Line (5040) Customer Premises (5050) Other Local Exchange (5060) Other Local Exchange Settlements (5069) 10 Total Local Network Services Network Access Service End User (5081) Switched Access (5082) Special Access (5083) State Access (5084) 15 Total Network Access Service Summary16 Interstate17 Intrastate 18 Total Network Access Services Long Distance Network Services19 Long Distance Message (5100) Unidirectional Long Distance20 Inward Only (5111)21 Outward Only (5112)22 Total Unidirectional Long Distance 23 Long Distance Private Network24 Voice Grade (5122)25 Audio Program Grade (5123)26 Video Program Grade (5124)27 Digital Transmission (5125)28 Other Revenue Settlements (5129)29 Total Long Distance Private Network (5120)30 Other Long Distance (5160) 31 Total Long Distance Network Services 33 Intrastate34 Total Long Distance Network Services Revenue Summary35 Interstate36 Intrastate 37 Total Revenue Excluding Miscellaneous Miscellaneous Directory (5230) Rent (5240) Corporate Operations (5250) Special Billing Arrangements (5261) Customer Operations (5262) Plant Operations (5263) Other Incidental Regulated (5264) Carrier Billing/Collecting (5270) Nonregulated (5280 Exd .4,. 10 Total Miscellaneous 11 Total Operating Revenues Monthly Report NO. Sheet 1 Period: December 2001 This Year Incr Over Same To Date Pd Last Year 200 255 961,060- 200,255 961 060- 86-212- 645 902 901- 846 079 976 173- 657,801 146 772 756,642 272,926- 069 104 433 572 577,510 109 105 061 056 583,477- 483 546 692,582- 577 510 109,105 061 056 583,477- 551,335 292,639- 100 601 12,377 593- 19,478 992- 412 423 23- 571,236 300 654- 299,198 148,485- 272,038 152 169- 571,236 300,654- 782,745 841 067- 10,695,626 019 237- 478 371 860,305- 159 227 078 212,330-19,986 991 16,356 186 305 345 50,006- 40,769 11,193 55,124 533- 252,169 143- 493,140 149 891 621 386 369 992 840 918- MR5 Monthly Report NO. Sheet 1 IDAHO.PACIFIC Qwest Corporation Period: December 2001 Operating Expenses Maintenance This Year Incr Over Same Plant Specific Operations Expense To Date Pd Last Year Network Support Expense Motor Vehicle Expense (6112)219 084 Aircraft Expense (6113) Special Purpose Vehicle Expense (6114) Garage Work Equipment Expense (6115) Other Work Equipment Expense (6116)386 127 Total Network Support Expenses (6110)605 211 General Support Expense Land and Building Expenses (6121)55,291 56,877- Furniture and Artworks Expense (6122)327 631- Office Equipment Expense (6123)3,494 613- General Purpose Computers Expense (6124)435,277 505- Total General Support Expense (6120)496,389 131 626- Central Office Switching Expense Analog Electronic Expense (6211)300 124 390- Digital Electronic Expense (6212)142 254 183 Electro-Mechanical Expense (6215) Total Central Off Switching Expense (6210)177 554 207- Operator Systems Expense (6220) Central Office Transmission Expense Radio Systems Expense (6231)353- Circuit Equipment Expense (6232)122 135 928 Total Central Office Trans Expense (6230)122 192 575 Info OriginationfTennination Expense Station apparatus Expense (6311)145 138- Large Private Branch Exchange Expense (6341)378 403- Public Tele Terminal Equipment Expense (6351)704 987- Other Terminal Equipment Expense (6362)637 975- Total Info OrlglTennination Expense (6310)863 504- Cable and Wire Facilities Expenses Poles Expense (6411)50,745 10,572- Aerial Cable Expense (6421)82,516 819- Underground Cable Expense (6522)55,419 700 Buried Cable Expense (6423)287 698 63,083- Submarine Cable Expense (6424) Intra building Network Cable Expense (6426)336 244 Total Cable and Wire Fac Expense (6410)482 714 53,530- Aerial Wire Expense (6431) Conduit System Expense (6441)011 10- Total Plant Specific Oper Expense 339 328 305 091- Plant Non-Specific Oper Expense Power Expense (6531)587 19,340- Testing Expense (6533)274 772 296- Total Maintenance 681 686 355,727- MR5 Monthly Report NO. Sheet 2 IDAHO-PACIFIC Qwest Corporation Period: December 2001 Operating Expenses This Year Incr Over Same To Date Pd Last Year Engineering (6535)107 086 46,012- NetworX Operations (6534)173 394 223 647- NetworX Administration (6532)285 188 290,062 Access Interstate (6540.013 842- Intrastate (6540.26,367 19,219- Intrastate Wireless Wholesale (6540.534 799 Interstate Competitive Local Exch Carriers (6540.4) Intrastate Competitive Local Exch Carriers (6540. Inter Competive Local Exch (6540.61) Intra Competive Local Exch (6540.62) AC EX CLEC ILEC (6540.63) Universal Service Fund Contribution (6540.244 561 102,158 Total Access Expense (6540)282.476 896 Other Prop Held for Future Telecomm Use Exp (6511) Provisioning Exp & Nonregulated (6512,5280.4)036-22,501- Total Plant Non-specific Oper Expense 167,467 162 Total Cost of Services and Products 506,795 280,929- Selling, General & Administrative Customer Operations Marketing Product Management Expense (6611)298.497 84,225- Sales Expense (6612)245 224 129,394- Product Advertising Expense (6613)85,307 725- Total Marketing Expense (6610)629 027 226,344- Sevices Call Completion Services Expense (6621)531 951 Number Services Expense (6622)351 200 Customer Services Expense (6623)738,714 40,029- Total Services Expense (6620)841 596 878- Total Customer Operations 2,470,6~3 259 222- Corporate Operations Executive Expense (6711)30.954 178.723- Planning Expense (6712)636 542- Legal Expense (6725)698 061- Total Executive, Planning & Legal 132,289 206 326- Accounting and Finance Expense (6721)795 20,985- External Relations Expense (6722)181 559 24,470- Human ResourcesExpense (6723)354 59.462- Information Management Expense (6724)540,950 159,320- Other Other Procurement Expense (6726)30.996 598- Research and Development Expense (6727)752 627 Other General and Admin Exp (6728,8747)204,565 264 528- Provision for Uncoil Notes Rac (6790) Total Other 236,312 272 500- Total Corporate Operations Expense 271.259 743 063- Property Taxes (7240.672.045 86,057 Other Operating Taxes (7240.373 681- Total Property & Other Operating Taxes (7240)693,418 69,376 MR5 Monthly Report NO. Sheet 3 IDAHO-PACIFIC Qwest Corporation Period: December 2001 Operating Expenses This Year Incr Over Same Selling, General & Administrative (Cont'To Date Pd Last Year Uncollectible Rev. Telecommunications Interstate. End User (5301.45.429 34,166 Intrastate. End User (5301.202 616- Equal Access/Net Rev (5301. Interstate - Carrier Access (5301.4)932 144 Intrastate - Carrier Access (5301.295 748 Video Dialtone Service (5301. Carrier Access Services (5301. Non-Regulated (5301.5.417 5.417 Tot Uncoil Revenue - Telecomm (5301)134 276 49,858 Uncollectible Revenue. Other (5302)205-409- Nonregulated Uncollectible (5280.545- Total Uncollectible Revenue 134,071 904 Total Selling, General & Administrative 569,371 888,005- Other Operating Income and Expense Income from Custom Work (7110) Ret From Nonreg Use of Reg Facilities (7130) Gains & Losses From Foreign Exchange (7140) Gains & Losses From Disp of Land & Art (7150) Other Operating Gains and Losses (7160) Total Oth Oper Income and Expenses (7100) Depreciation & Amortization Expense Depr Exp - Telecomm Plant in Service (6561)970,274 188,995 Depr Exp - Prop Held for Future Use (6562) Amortization Exp . Tangible (6563)48,454 12.448 Amortization Exp - Intangible (6564)729 667- Amortization Exp - Other (6565)236 Total Depr & Amortization Expense (6560)020,693 198,776 Total Operating Expenses 096,859 842 CO M P A N Y : O w e s t C o r p o r a t i o n ST U D Y A R E A : I D A H O - NO R T H E R N PE R I O D : F r o m J A N 2 0 0 1 t o D E C 2 0 0 1 5 A n 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 (D o l l a r s I n T h o u s a n d s ) Be g i n n i n g I O t h e r C r e d i t s Re t i r e m e n t s Re t i r e m e n t s wl o Co s t o f Ac t u a l E n d i n g Ro w Ac c t De s c r i p t i o n Ba l a n c e Ac c r u a l s Sa l v a g e Tr a f f i c Tr a f f i c Re m o v a l Ot h e r C h a r g e s Ba l a n c e 01 0 0 21 1 2 M o t o r Ve h i c l e s 19 3 11 4 01 1 0 21 1 3 A i r c r a f t 01 2 0 2 1 1 4 - 6 T o o l s a n d O t h e r W o r k E q u i p m e n t 17 4 18 8 01 5 0 21 2 1 B u i l d i n g s 15 2 54 6 66 7 01 6 0 21 2 2 F u r n i t u r e 01 8 0 2 1 2 3 . 1 O f f i c e E q u i p m e n t 01 9 0 2 1 2 3 . 2 C o m p a n y C o m m u n i c a t i o n s E q u i p m 02 0 0 21 2 4 G e n e r a l P u r p o s e Co m p u t e r s 02 1 0 La n d a n d S u p p o r t A s s e t s 59 2 85 8 80 6 02 2 0 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 23 1 37 9 61 5 99 3 02 3 0 22 1 2 D i g i t a l El e c t r o n i c S w i t c h i n g 83 9 44 3 79 8 2, 4 6 3 02 6 0 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 02 7 0 Ce n t r a l O f f i c e - S w i t c h i n g 12 , 07 0 82 2 41 3 11 , 4 5 6 02 8 0 22 2 0 Op e r a t o r S y s t e m s 03 0 0 22 3 1 R a d i o Fa c i l i t i e s 11 2 24 0 40 2 03 1 0 22 3 2 C i r c u i t Eq u i p m e n t 11 , 4 4 2 1, 4 2 0 3, 4 4 0 9, 4 0 5 03 2 0 Ce n t r a l O f f i c e - T r a n s m i s s i o n 55 4 1, 4 7 1 24 0 3, 4 4 0 80 7 03 3 0 23 1 1 S t a t i o n Ap p a r a t u s 03 4 0 23 2 1 C u s t o m e r P r e m i s e s Wi r i n g 03 5 0 23 4 1 L a r g e Pu b l i c B r a n c h E x c h a n g e 03 6 0 23 5 1 P u b l i c Te l e p h o n e T e r m i n a l E q u i p m 31 3 31 3 03 7 0 23 6 2 O t h e r Te r m i n a l E q u i p m e n t 24 6 25 5 03 8 0 In f o r m a t i o n O r i g i n a t i o n f T e r m i n a t 55 9 56 8 03 9 0 24 1 1 P o l e s 18 7 19 3 08 3 04 0 0 24 2 1 A e r i a l C a b l e 55 2 16 9 15 8 54 8 04 1 0 24 2 2 U n d e r g r o u n d Ca b l e . 2 , 97 6 20 8 71 4 46 5 04 2 0 24 2 3 B u r i e d C a b l e 17 , 71 6 00 7 06 2 18 , 65 9 04 3 0 24 2 4 S u b m a r i n e C a b l e 11 6 12 1 04 4 0 24 2 5 D e e p S e a C a b l e 04 5 0 24 2 6 I n t r a bu i l d i n g N e t w o r k C a b l e 15 4 21 6 04 6 0 24 3 1 A e r i a l W i r e 26 3 20 4 04 7 0 24 4 1 C o n d u i t S y s t e m s 73 1 27 0 49 1 04 8 0 Ca b l e a n d W i r e F a c i l i t i e s 24 , 58 7 55 4 15 5 2, 4 8 5 24 , 78 7 04 9 0 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 50 , 36 2 97 7 39 6 23 4 42 4 FC C R e p o r t 4 3 - AR M I S U S O A R e p o r t Ap p r o v e d b y O M B 30 6 0 - 03 9 5 Ex p i r e s 02 1 2 8 / 0 2 Un r e s t r i c t e d V e r s i o n Su b m i s s i o n 1 TA B L E B - CO M P A N Y : Q W E S T C O R P O R A T I O N ST U D Y A R E A : I D A H O - NO R T H E R N PE R I O D : F r o m J a n 2 0 0 1 T o D e e 2 0 0 1 CO S A : W I D BA S E S O F C H A R G E S F O R D E P R E C I A T I O N (D o l l a r s i n T h o u s a n d s ) Wh o l e o r Ne t De p r e c i a t i o n Pr e s c r i b e d Ac c o u n t s 6 5 6 1 - 6 5 6 5 Co m p o s i t e Li n e Ac c o u n t N u m b e r a n d Re m a i n i n g Lif e Sa l v a g e Re s e r v e Ra t e Ex p e n s e Am o r t i z a t i o n Av e r a g e Ra t e No . Tit l e o f R e l a t e d P l a n t A c c o u n t s Lif e (Y e a r s ) (P e r c e n t ) (P e r c e n t ) (P e r c e n t ) Am o u n t Am o u n t Pl a n t B a l a n c e (P e r c e n t ) (a ) (b ) (e ) (d ) (e ) (f ) (g ) (h ) (i ) (j ) 21 1 2 M O T O R V E H I C L E S 11 . 64 . 16 0 12 % 2 2 1 1 4 S P E C PU R P O S E V E H I C L E S 12 . 28 . 00 % 3 2 1 1 5 GA R A G E W O R K E Q U I P 13 . 10 . 4 % 80 0 . 00 % 4 2 1 1 6 O T H E R WO R K E Q U I P 11 . 7 36 . 14 % 5 2 1 2 1 B U I L D I N G S 24 . 32 . 12 0 88 % 6 2 1 2 2 F U R N I T U R E -Q . 15 . 00 % 7 2 1 2 3 . 1 O F F I C E E Q U I P M E N T 39 . 12 . 00 % 8 2 1 2 3 . 2 C O M P A N Y C O M M E Q U I P 61 . 00 % 9 2 1 2 4 G E N PU R P O S E C M P T R 48 . 15 . 80 . 00 % 22 1 1 A N A L O G S W E Q U I P 71 . 15 . 37 9 13 4 15 . 10 % 22 1 2 D I G I T A L S W E Q U I P 32 . 44 3 83 2 60 % 22 2 0 O P E R A T O R S Y S T E M S 10 0 . 00 % 22 3 1 R A D I O S Y S T E M S 44 . 8.4 % 60 7 8.4 0 % 22 3 2 C I R C U I T D D S 1. 0 % 34 . 14 . 19 8 14 . 14 " 22 3 2 C I R C U I T D I G I T A L 38 . 10 . 29 8 90 9 10 . 90 % 22 3 2 C I R C U I T A N A L O G -4 . 66 . 12 . 58 1 95 % 23 5 1 P U B T E L T E R M E Q U I P 86 . 30 0 00 % 23 6 2 O T H E R T E R M E Q U I P 50 . 10 . 45 4 10 . 35 % 24 1 1 P O L E L I N E S 10 . 10 9 . 64 . 12 . 76 1 11 . 96 % 24 2 1 A E R i A l C A B L E M E T 25 . 58 . 16 9 51 9 71 % 24 2 1 A E R I A L C A B L E N O N M E T 14 . 25 . 00 % 24 2 2 U N D G R D C A B L E M E T 12 . 20 . 49 . 18 9 37 5 60 % 24 2 2 U N D G R D C A B L E N O N M E T 17 . 4 20 . 18 . 33 6 65 % 24 2 3 B U R I E D C A B L E M E T 10 . -4 . 40 . 6.4 % 85 3 95 4 6. 4 0 % 24 2 3 B U R I E D C A B L E N O N M E T 16 . -4 . 20 . 15 4 07 9 00 % 24 2 4 S U B C A B L E M E T 14 . 60 . 16 3 45 % 24 2 4 S U B C A B L E N O N M E T 20 . 00 % 24 2 6 I N T R A B L D G C A M E T 8. 4 55 . 26 6 59 % 24 2 6 I N T R A B L D G C A B L E N O N M E T 16 . 27 . 69 % 24 3 1 A E R I A L W I R E 12 3 . 11 7 . 21 . 13 5 21 . 4 8 % 24 4 1 C O N D U I T S Y S T E M S 43 . -4 . 23 . 58 3 90 % To t a l ( l i n e s 1 . . 3 2 ) 96 9 53 1 12 " ' " MR2 Monthly Report NO. Sheet 1 Period: December 2001TOTAL COMPANY Qwest Corporation Balance Sheet At End Of Month Increase OVer Dec. 31 Last Assets Current 1 Cash and Short Term Investments (1130,40,60) Receivable Trade (1180 1181 1190.8720. Other (1200,1190.1210,8720. Total Receivable .. 5 Inventories (1220) Prepd Exp & Oth Curr Asset (1290,1300 10,50) 7 Total Current Assets 169 631 863 945,467,797 317,220 954 262 688,751 181 391 047 653,106 671 364 767 Property, Plant and Equipment Telecommunications Plant in Service (2001) Telecommunications Plant Under Canst (2003 2004) 10 Prop Held for Future Use & Plant Adj (2002 2005) 11 Non-Operating Plant (2006)12 Gross Property, Plant and Equipment 13 Less-Ace Deprec. & Amort (31-3300,3410 20,35-3600)14 Total Telephone Plant Less Reserves 907 139,341 703 382 083 745 906 887 827 660 155 157 512 187,091 147 968 066 Investments and Other Assets 15 Investments in Affiliated Companies (1401) 16 Investments in Non-Affiliated Companies (1402)17 Nonregulated Investments (1406) 18 Unamortized Debt Issuance Expense (1407) 19 Sinking Funds (1408)20 Other Noncurrent Assets (1410) 21 Deferred Charges (1437 1438,1439,8730)22 Goodwill - Net (2007) 23 Other Jurisdictional Assets - Net (1500) 24 Total Investments and Other Assets25 Total Assets 458 072 353- 28,028,068 121 382,437 137 369 019 936 147 372 36,016 798- 728,837,745 548 170,578 930,350- 141 601 748 319 306 041 460 907 789 976,451 59,305,933- 383,647,956 297 746,762 308,116 824- 168 655- 983,461 283 841 345 053 142 116 230 320 292 791- 19,479 858 973,708- 220,192,447- 93,974,453 242,145,835- 680 150,471- 845,613,715 MR2 TOTAL COMPANY Owest Corporation Balance Sheet Liabilities Current Short Term Borrowings (4020) Accounts Payable and Accrued Liabilities Accounts Payable - Trade (4010.21,.23) Accounts Payable - Other (4010.25,.29) Employee Compensation (4010.24,4120.4- 5 Advance Billing and Payments (4030) Dividend Payable (4010.32,4120. 7 Customers' Deposits (4040) Other (4010.31 ,.33,4130,4080,4120 excpt 4120. Total Acct Payable & Accured Liabilities 10 Income Taxes Payable (4070,4100,4110) 11 Current Portion long Term Borrowing/Lease (4050,4060) 12 Total Current Liabilities Other 13 Long Term Borrowings (4210 30,40 50,60,70) 14 Accum Deferred Income Taxes (Non-Current) (4340,41 50)15 Unamortized Investment Tax Credit (4320,4330) 16 Other (4310,4360,4361) 17 Oth Juris Liabilities & Deferred Credits - Net (4370)18 Total Other Liabilities 19 Total Liabilities Shareholders ' Equity 20 Capital Stock - Common (4510.21 Capital Stock - Preferred (4510.22 Capital Stock - Restricted (4510.23 Additional Paid-In Capital (4520) 24 Treasury Stock (4530)25 Other Capital (4540)26 Retained earnings - Appropriated (4550.27 Retained earnings - Unappropriated (4550.28 Total Capital Stock and Retained Earnings 29 Total Liabilities and Capital Monthly Report NO. Sheet 2 Period: December 2001 At End Of Month Increase Over Dec. 31 Last 912 703 889 326 206 165 040 070 557 575 109,504- 116 314 907 008,713- 931 396 130,474 005- 333 709,568 275 395- 40,417 085 269 335- 653 313,003 315,984 505- 236 756 516 048 121,458- 337,436-195,208,241- 480 346,534 123 828,395 605,469 503 793 295,139- 768 703 115 446,672,291- 070 885,607 489 664 559 209 254 837 25,363,718- 981 958 519 122 906,957 78,131 857-122 383,341- 952 670 221 152,166 558 139 724 775 142 974- 328,432 910 138 776- 666,736 720 990 030 854 548 170 578 286,611 836 370,074 331,774 779 620 756,689 845 613,715 MR2A TOTAL COMPANY Qwest Corporation Changes In Telephone Plant Accounts 1 2111 - land 2 2112 - Motor Vehicles 32113-Aircraft 4 2114 - Special Purpose Vehicles 5 2115 - Garage Work Equipment 6 2116 - Other Work Equipment 7 Total Vehicles & Work Equipment 8 2121 - Buildings 9 2122 - Furniture 10 2123 - Office Equipment 11 2123 - Company Communication Equipment 12 Total Furniture & Office Equipment 13 2124 - General Purpose Computers 14 2211 - Analog Switching 15 2212 - Digital Switching 16 720C GAAP AFUDC 17 2215 - Step-by-Step Switching 18 2215 - Crossbar Switching 19 2220 - Operator Systems 20 2231 - Radio Systems 21 2232 - Circuit DDS 22 2232 - Circuit Digital 23 2232 - Circuit Analog 24 Total Central Office Equipment 25 2311 - Station Apparatus 26 2321 - Customer Premises Wiring 27 2341 - large PBX 28 2351 - Public Telephone Terminal Equipment 29 2362 - Other Terminal Equipment 30 Total Other Terminal Equipment 31 2411 - Poles 32 2421 - Aerial Cable - Metallic 33 2421 - Aerial Cable - Non-Metallic 34 2422 - Underground Cable - Metallic 35 2422 - Underground Cable - Non-Metallic 36 2423 - Buried Cable - Metallic 37 730C - GAAP AFUDC 38 2423 - Buried Cable - Non-Metallic 39 2424 - Submarine Cable - Metallic 40 2424 - Submarine Cable - Non-Metallic 41 2426 -Intrabuilding Cable - Metallic 42 2426 - Intrabuilding Cable - Non-Metallic 43 2431 - Aerial Cable 44 2441 - Conduit 45 Total Outside Plant 46 Total Owned Property, Plant, & Equipment Monthly Report NO. 2A Sheet 1 Period: December 2001 This Year To Date --- Total At Plant Added Plant Retired Net Increase End of Period 533,687 409 920 123,766 101 258,770 895,835 702,687 193,148 433,260 861 875,494 099 891 721 114,161 21,440-727,452 833,232 13,719,145 114 086 253 836,297 76,821 788 535,993 33,285 795 700 799 996 180,146 070 48,291 182 131 854,888 653,291,428 242-710 912 802 154-940,560 717,911 759 717 041 807-54,556,544 350 548 20,927 935 577 387-939,823 977 217 398,565 24,421 348-98,436,927 361 080 63,278 205 917 125-648 549,415 818 838-269,851 845 296,670,683-132,769 049,452 923 314 117 626 735 335 297 364 248 354 453,359 330 384 877 025-28,565,491 070 616 30,234 333 26,163,718-262 677 067 920,369 754,462 834 093-767 160 1,481 982,219 170 341 807 311,640,412 9,402,769 309 020,656 18,287 008 266 352-459,622,682 516 081 304 810,917,466 705,163 838 17 ,586, 782,832 172 053 145 333 720 35,849,120 25,128 606 891 303,797 696 905-127 094 357 128,558 291.093-45,419,650 371 317,101 49,907 502 158 037 43,749,465 534 285,706 6,492 224 692,694 799,530 247 687 115 512,873 656,827 856,046 214,424,661 741 149 146,470 594 679 30,717,469 111 187 275 871 190 102,316 086 2,451,985 556 118,162,265 848 990 115,313,275 739,721,118 610,405,705 447 187 533 958,518 113,211 359 983,218 399,030 584,188 646,599,457 188,353 820,988 820,976 792 987 11,499,922 659 201 840,720 344 366,835 551 574 546 467,028 17,641,339 942 514 770,268 172 246 39,404,064 164 935,487 516,619 160,418,868 051 969,695 136,235,193 118,093 033 018,142,160 16,909,710,008 997 063,840 119,082,401 877 981,439 40,233,115,082 MR2A TOTAL COMPANY Qwest Corporation Changes In Telephone Plant Accounts 47 2681 - Capital Leases - Buildings 48 2681 - Capital Leases - Vehicles 49 2681 - Capital Leases - Computers 50 2681 - Capital Leases - Software 51 2681 - Capital Leases - Other 52 Total Capital Leases 53 2682 - Leaseholds - Buildings 54 2682 - Leaseholds - Computers 55 2682 - Leaseholds - Towers 56 2682 - Leaseholds - Radio .. 57 2682 - Leaseholds - Others 58 Total Leasehold Improvements 59 2690 - Intangibles. Organization Fees 60 2690 - Intangibles - Franchises 61 2690 - Intangibles - Patents 62 2690 - Intangibles - Trademarks 63 2690 - Intangibles - Software 64 2690 - Intangibles - Spectrum Rights 65 2690 - Intangibles - Other 66 Total Intangibles 67 Total Leases, Leaseholds, & Intangibles 68 Total Expenditures 69 2002 - Held for Future Use 70 2003 - Under Construction - Short Term 71 2004 - Under Construction - Long Term 72 2005 - Telephone Plant Adjustments 73 Telecommunication Plant 74 2006 - Non-Operating Plant 75 2007 - Goodwill 76 Total Telecommunication Plant Monthly Report NO. 2A Sheet 2 Period: December 2001 This Year To Date Total At Plant Added Plant Retired Net Increase End of Period 122,594 122,594-757 506 237 938 299 299 620 568 12,128 139 507 571-54,429,068 38,817,986 102,047 523 63,229,537-310,819,049 524,896 524 895 758,846 55,989,687 115,324,193 334 506-393,764 768 321 018 000 16,318 018 166,856 594 717 848 321 018 000 318,018 171 574 442 462,771,451 462,771,451 108,488 445 10,360 360 196 605 462 781 811 462 781 811 108 685,050 535,092,516 115 327 193 419,765 323 674 024 259 532 156 356 234 409 594 297 746,762 907 139,341 247 046 900-247 046,903-575 310,900 072 508-587-069,921-128 071 184 745,906 224 036 948 234 407 010 989 629,938 42,613 267 330 168,655-168 655-887 827 217,868,293 234,407 010 983,461 283 42,660,155,157 MR3 Monthly Report NO. Sheet 1 TOTAL COMPANY Period: December 2001 Owest Corporation Income Statement This Year Inc Over Same To Date Pd Last Year REVENUE Local Service (5001-5069)856,462,937 69,461 699 Access Service Interstate (5081-5083)583,515,433 254,302.743 Intrastate (5084)713 946,794 942.310- Long Distance Service (5100-5160)263,819,712 109,866,617- Miscellaneous (5230-5280. Exct 5280.4, .653,406,623 242 960,977 Total Revenue 12,071 151 500 424 916,490 EXPENSE Cost of Service and Products Maintenance (6110-6441.6531 6533)945,778,724 175 108,500- Engineenng (6535)50,494 448 306,849- Network Operations (6534)309 394 603 156,634- Network Administration (6532)140 075 311 129,390,631 Access Interstate (6540.339,504 359,585- Intrastate (6540.370,115 20,307,838- Intrastate Wireless Wholesale (6540.14,930,222 128,882 Interstate Competitive Local Exch Carriers (6540.880 382 Intrastate Competitive Local Exch Carriers (6540.13,879 265-209,870- Inter Competive Local Exch (6540.61) Intra competive Local Exch (6540.62)82,426 205 553 649- AC CLEC ILEC (6540.63)358 597 358,597 Universal Service Fund Contribution (6540.143 221 374 978 132 Other (6511, 6512. 5280.533 312 653,490 Total Cost Of Services and Products 747 048,030 158,490,811- Selling, General and Administrative Customer Operations (661~620)369,762,235 47,474 335- Corporate Operations Executive, Planning & Legal (6711-12,6725)91,516,776 95,280 618- Accounting and FInance (6721 )64,692,950 855,707- Extemal Relations (6722)119 918,650 529,144- Human Resources (6723)662,702 29,873.270- Infonnation Management (6724)512 404 302 004,235- Other (6726-6790,8747)215 240 808 340 042,144- Total Corporate Operations 054,436,188 506 585,119- Property Taxes (7240.240 781 284 41,049,148- Other Operating Taxes (7240.2 - .101,654,305 17,758 108- Uncollectibles (5300 & 5280.180,603,566 993 598 Total Selling, General & Administrative 947,237 578 562,873,112- Other Operating (Income) & Expense (7100)142,112 194,920 Depreciation & Amortization (6560)170 960 320 365,587,841 Total Operating Expense 865 388 041 355,581,162- Income From Operations Before Taxes 205 763 459 780,497,652 Interest Expense (7500)517 205,072 641,705- Non Operating (Income) & Expense (7300 &7440)230,988 600 61.853 390- Income Before Income Taxes 457,569,787 889,992,746 Income Taxes Federal (7210.7220,7250.1&.71,7410 7420 7450.889,798,487 273,456,130 State & Local (7210.3&4.7230.7250.2..3,. 72,.73,.7410.2,7430 7450.2,.5&.116 201,414 26,635,081 Income Before Juris Diff & Extraord Items 1,451 569,886 589,901,535 Jurisd. Diff & Nonreg Net Income (7910 7990)119,762,494 105,692- Extraordinary Items (7600) Net Income 331,807 391 644,007.227 MR3A TOTAL COMPANY Qwest Corporation Details of Certain Accounts Included on Monthly Report No. Interest and Related Items Interest on Funded Debt (7510) Interest Expense - Captial Lease (7520) Amortization of Debt Issuance Expense (7530) Other - Advances - Affiliates (7540.11) - Other Affiliates (7540.19)6 -Institutions (7540.21) - Banks (7540.22)8 -Reseller (7540.23) - Miscellaneous (7540.29)10 Total Other (7540)- 11 Total Interest Expense Other Operating (Income) and Expense Accounts12 Income from Custom Work (7110)13 Return from Nonregulated Use of Nonreg Fac (7130)14 (Gains) and Losses from Foreign Exchange (7140)15 (Gains) and Losses from Disp Land & Artwrk (7150)16 Other (7160)17 Total Other Operating (Income) and Expense Nonoperating Income and Expense Accounts Dividend Income (7310) Interest Income (7320) Income from sinking and Other Funds (7330) Allow. for Funds Used During Construction (7340) Gains/Losses from Dispositions of Property (7350) Other (7360) Special Charges (7370) Other Taxes (7440) Total Nonoperating Income and Expense Income Taxes - Federal27 Operating FIT (7220)28 Prov for Deferred Oper FIT-Originating (7250.29 Income Tax Allocation Adjustment (7250.71)30 Operating Investment Tax Credit-Net (7210.31 Total Normalized Operating FIT32 Nonoperating FIT (7420)33 Prov for Def Nonoper. FIT-Originating (7450.34 Nonoperating Investment Tax Credit-Net (7410)35 Total Normalized Nonoperating FIT36 Total Federal Income Tax Supplement A to Monthly Report NO. Sheet 1 Period: December 2001 This Year Inc Over Same To Date Pd Last Year 445 694,479 276 719 729,992 115,460- 272 033 657 307- 236 419 236,419 155,568 155 568 36,711 854 273 163- 661 749- 395,067 262,731- 508 568 145,657- 517 205,072 47,641 705- 10,050 304 132 063 137 617 142 112 194 920 335 418 319 920 780 436,135-18,153,492- 030 278-211 297 50,750 237-135,482- 153,781 680 712- 314 771 38,202,715- 318,378 186,934 230,988,600 853 390- 434 933,101 571 138- 451 519,842 321 436 747 013,834-166,350 865,439,109 254 031 959 043 376 45,971 836- 910,273-65,746 169 773,725-350,161- 24,359 378 19,424 172 889,798,487 273,456 130 MR3A TOTAL COMPANY Supplement A to Monthly Report NO. Sheet 2 Qwest Corporation Details of Certain Accounts Included on Monthly Report No. Period: De~ber 2001 This Year Inc Over Same To Date Pd Last Year Income Taxes. State and Local Operating SIT (7230)53,684,725 482 859- SIT Provisioning Deferred (7250.60,486,223 846 915 Prov for Deferred Oper SIT-Reversing (7250.4,. Income Tax Allocation Adjustment (7250.72) State Invest Tax Cr (7210.576 159-168 701- Operating Investment Tax Credit-Net (7210.3 &. Total Normalized Operating SIT 110,594 789 195,356 Nonoperating SIT Credit (7410. Nonoperating SIT (7430)089,442 666 774- - 10 Prov for Def Nonoper. SIT-Income (7450.517 183 106 498 Prov for Def Nonoper. SIT-Originating (7450.3,. Prov for Def Nonoper. SIT-Reversing (7450.4 Total normalized Nonoperating SIT 606,625 439 725 Total State and Local Income Taxes 116,201,414 635 081 Jurisdictional Differences and Nonregulated Income Accounts Income Effect of Juris Ratemarking Diff-Net (7910)119,762,494 54,105,692- Nonregulated Net Income (7990) Total (7900)119 762,494 54,105,692- Extraordinary Items Extraordinary Income Credits (7610) Extraordinary Income Charge (7620) Current Inc Tax Effect of Extraordinary Items - Net (7630) Prov for Def Inc Tax Effect of Extraordinary Items - Net (7640) Total Extraordinary Items (7600) MR4 TOTAL COMPANY Qwest Corporation Summary Of Operating Revenues Local Network Services Basic Local Services Basic Area (5001) Optional Extended Area (5002) Other Mobile Local Service (5004) Total Basic Local Service (5000) Public Telephone (5010) Local Private Line (5040) Customer Premises (5050) Other Local Exchange (5060) Other Local Exchange Settlements (5069) 10 Total Local Network Services Network Access Service11 End User (5081) - 12 Switched Access (5082)13 Special Access (5083)14 State Access (5084) 15 Total Network Access Service Summary16 Interstate17 Intrastate 18 Total Network Access Services Long Distance Network Services19 Long Distance Message (5100) Unidirectional Long Distance20 Inward Only (5111)21 Outward Only (5112)22 Total Unidirectional Long Distance 23 Long Distance Private Network24 Voice Grade (5122)25 Audio Program Grade (5123)26 Video Program Grade (5124)27 Digital Transmission (5125)28 Other Revenue Settlements (5129)29 Total Long Distance Private Network (5120)30 Other Long Distance (5160) 31 Total Long Distance Network Services32 Interstate33 Intrastate34 Total Long Distance Network Services Revenue Summary35 Interstate36 Intrastate 37 Total Revenue Excluding Miscellaneous Miscellaneous Directory (5230) Rent (5240) Corporate Operations (5250) Special Billing Arrangements (5261) Customer Operations (5262) Plant Operations (5263) Other Incidental Regulated (5264) Carrier Billing/Collecting (5270) Nonregulated (5280 ExcJ .4,. 10 Total Miscellaneous 11 Total Operating Revenues Monthly Report NO. Sheet 1 Period: December 2001 This Year Incr Over Same To Date Pd Last Year 272,005,152 16,238,727- 61,037,138 45,090,060 22,712 354- 333,065,002 28,850 978 24,090 65,113- 579,977 314,538 522 793 526 40,361,296 341 856,462,937 69,461 699 350,119,886 75,761 585 704 202,300 141 195,140- 529 193 246 319,736,298 713,946,794 942,310- 297,462,227 222,360 432 583,515,433 254,302.743 713,946,794 942.310- 297,462,227 222,360,432 250,499 682 640,784- 837 887 069,776- 942,491 10,522,722- 12,780 378 11,592,498- 30,663 567,814- 787 2.047- 503,183 62,090- 539 633 631,951- 384- 263 819 712 109,866,617- 907 457 012.944- 250 912,255 102,853,670- 263,819,712 109,866,614- 596 422,890 247,289,798 821,321,986 65,334,282- 417,744,876 181,955,516 83,016,124 721 533- 435 588 508 197,500 292 959 297 372.217- 463,148-195,978- 31,069,408 18,548,833- 080,785 18,307 590 209,380,823 83,131,383 115 255 688 68,213,167- 644,519,137 40,073,440 653 406,623 242,960,977 12,071,151,500 424 916 493 MR5 Monthly Report NO. Sheet 1 TOTAL COMPANY Period: December 2001 Qwest Corporation Operating Expenses Maintenance This Year Incr Over Same Plant Specific Operations Expense To Date Pd Last Year Network Support Expense Motor Vehicle Expense (6112)372,455 332 228 Aircraft Expense (6113)923 557- Special Purpose Vehicle Expense (6114)51,999 799 Garage Work Equipment Expense (6115)505,313 155,471- Other Work Equipment Expense (6116)742,289 242 790- Total Network Support Expenses (6110)13,678,980 932 210 General Support Expense Land and Building Expenses (6121)250,776,512 12,461 513- Furniture and Artworks Expense (6122)12,488,757 865 287- Office Equipment Expense (6123)184 252 10,335 904- General Purpose Computers Expense (6124)255 734 641 216 020- Total General Support Expense (6120)545,184,162 60,878,724- Central Office Switching Expense Analog Electronic Expense (6211)12,298 280 532,684- Digital Electronic Expense (6212)137 511 933 15,009,087- Electro-Mechanical Expense (6215)149,029 253,799- Total Central Off Switching Expense (6210)149 959 243 25,795,570- Operator Systems Expense (6220)724 895 128,398 Central Office Transmission Expense Radio Systems Expense (6231)095 829 453 608- Circuit Equipment Expense (6232)146 134 752 12,852,334 Total Central Office Trans Expense (6230)149 230 580 398,726 Info OriginationfTermination Expense Station apparatus Expense (6311)10,632,142 978,640- Large Private Branch Exchange Expense (6341)18,350,809 174 757- Public Tele Terminal Equipment Expense (6351)174,951 103,520 Other Terminal Equipment Expense (6362)123,823,407 056,142- Total Info OriglTermlnation Expense (6310)173,981 309 106,018- Cable and Wire Facilities Expenses Poles Expense (6411)855,145 541 ,403- Aerial Cable Expense (6421)130,022,444 683,656- Underground Cable Expense (6522)57,547 797 553,770- Buried Cable Expense (6423)471,123,759 51,431 979- Submarine Cable Expense (6424)28,484 13,710 Intrabuilding Network Cable Expense (6426)20,075,144 784,809 Total Cable and Wire Fac Expense (6410)692 652 773 83,412,288- Aerial Wire Expense (6431)590,718 909,837 Conduit System Expense (6441)13,479,478 670,660- Total Plant Specific Oper Expense 740,482 138 170,494,089- Plant Non-Specific Oper Expense Power Expense (6531)080,448 977 506 Testing Expense (6533)147 216,138 591 917- Total Maintenance 945 778,724 175 108,500- MR5 Monthly Report NO. Sheet 2 TOTAL COMPANY Period: December 2001 Qwest Corporation Operating Expenses This Year Incr Over Same To Date Pd Last Year Engineering (6535)50,494,448 306,849- Network Operations (6534)309,394,603 156,634- Network Administration (6532)140,075.311 129,390,631 Access Interstate (6540.339,504 359,585- Intrastate (6540.66,370,115 20.307 838- Intrastate Wireless Wholesale (6540.930,222 128,882 Interstate Competitive Local Exch Carriers (6540.4)880 382 Intrastate Competitive Local Exch Carriers (6540.879 265-29,209 870- Inter Competive Local Exch (6540.61) Intra Competive Local Exch (6540.62)82,426,205 40,553,649- AC EX CLEC ILEC (6540.63)358,597 358,597 Universal Service Fund Contribution (6540.143 221 374 978 132 Total Access Expense (6540)294 771 633 18,962,950- Other Prop Held for Future Telecomm Use Exp (6511) Provisioning Exp & Nonregulated (6512 5280.4)533,312 653 490 Total Plant Non-specific Oper Expense 006,565,892 003 278 Total Cost of Services and Products 747 048 030 158,490,811- Selling, General & Administrative Customer Operations Marketing Product Management Expense (6611)196,421 123 229,158 Sales Expense (6612)189,362,645 933,096- Product Advertising Expense (6613)100,638 213 935,086- Total Marketing Expense (6610)486,421 982 639,024- Sevices Call Completion Services Expense (6621)062 179 981 243 Number Services Expense (6622)63,556,431 286,215- Customer Services Expense (6623)794 721 643 63,469,662 Total Services Expense (6620)883,340 253 45,164 689 Total Customer Operations 369 762 235 47,474,335- Corporate Operations Executive Expense (6711)234 213 102.925,781- Planning Expense (6712)3,415,957 992,724- Legal Expense (6725)866 606 637 886 Total Executive, Planning & Legal 91,516,776 95,280 618- Accounting and Finance Expense (6721)64.692 950 855 707- External Relations Expense (6722)119,918.650 529,144- Human ResourcesExpense (6723)50,662,702 873,270- Information Management Expense (6724)512,404 302 004 235- Other Other Procurement Expense (6726)813,382 543,347- Research and Development Expense (6727)455,604 383,512 Other General and Admin Exp (6728,8747)195 971 822 335,882,310- Provision for Uncoil Notes Rec (6790) Total Other 215 240,808 340,042,144- Total Corporate Operations Expense 054,436,188 506,585,119- Property Taxes (7240.240 781 284 049 148- Other Operating Taxes (7240.101 654 305 758 108- Total Property & Other Operating Taxes (7240)342,435 589 58,807 256- MR5 Monthly Report NO. Sheet 3 TOTAL COMPANY Period: December 2001 Qwest Corporation Operating Expenses This Year Incr Over Same Selling, General & Administrative (Cont'To Date Pd Last Year Uncollectible Rev. Telecommunications Interstate - End User (5301.670,008 257 276 Intrastate. End User (5301.149,856 256 207,083 Equal Access/Net Rev (5301.43,908- Interstate. Carrier Access (5301.4)702,483 535,725 Intrastate - Carrier Access (5301.991 749 670,898- Video Dialtone Service (5301. Carrier Access Services (5301.664,798 645 295 Non-Regulated (5301.10,660.346 10,660,346 Tot Uncoil Revenue. Telecomm (5301)178,545,639 58,590,918 Uncollectible Revenue. Other (5302)057,927 961 269 Nonregulated Uncollectible (5280.10,558,589- Total Uncollectible Revenue 180,603,566 49,993,598 Total Selling, General & Administrative 947,237 578 562 873,112- Other Operating Income and Expense Income from Custom Work (7110) Ret From Nonreg Use of Reg Facilities (7130) Gains & Losses From Foreign Exchange (7140) Gains & Losses From Disp of Land & Art (7150)10,050 304 Other Operating Gains and Losses (7160)132 063 137 617 Total Oth Oper Income and Expenses (7100)142 112 194 920 Depreciation & Amortization Expense Depr Exp - Telecomm Plant in Service (6561)812,193,244 232,421 234 Depr Exp - Prop Held for Future Use (6562) Amortization Exp - Tangible (6563)167 052 771 293 836 Amortization Exp . Intangible (6564)171 112.156 872.770 Amortization Exp - Other (6565)20,602,149 Total Depr & Amortization Expense (6560)170,960 320 365 587 841 Total Operating Expenses 865,388,041 355,581 162- .- qql/ Idaho Policy and Law . , 999 Main Street, 11 th Floor CQ3oise, 10 8370L ,.. Qwest.-2- April 12, 2002 ? 12 P:: 2: 23 .. " , 'c .. , , -'.. '.. '~ .. Jean Jewell ;iS:~'ln'~I. Secretary Idaho Public Utilities Commission O. Box 83720-0074 RE: QWEST YEAR 2001 ANNUAL REPORT FORM M FILINGS FOR NORTH AND SOUTH IDAHO OPERATIONS PER 61-405 Dear Jean Enclosed please find three copies of Qwest Corporation s Form M's for its northern and southern Idaho operations. The various schedules included in the reports are outlined in the table of contents. The 2001 report is organized in a new format, yet contains the information provided to you in previous year s reports. Qwest expects to file its 2001 Annual Line Report Addendum with the Commission on or about April 15 , 2002. If! can be of any further assistance to the Commission in its review ofthese schedules, please feel free to contact me on 208-385-8666. AU. USA Q%) ',oud 5'0"'01 QWEST CORPORATION DENVER, COLORADO TO THE PUBLIC UTILITY COMMISSION OF IDAHO (SO. FOR THE YEAR ENDING DECEMBER 31, 2001 Office or other person to whom correspondence should be addressed concerning this report: Name: James M. Schmit Title: Vice President Address: 999 Main St, 11th Floor City: Boise State: Idaho Zip: 83702 ANNUAL REPORT FORM M PUBliC UTIUTY COMMISSION OF IDAHO (SO) TABLE OF CONTENTS REPORT DESCRIPTION MR 2, ID Balance Sheet Accounts MR 2A, ID Changes in Telephone Plant Accounts MR 3, ID Income Statement MR 3A, ID Details of Certain Accounts Included on Report No. MR 4, ID Summary of Operating Revenues MR 5, ID Operating Expenses ARMIS 43-02, ID 5, Analysis of Entries in Accumulated Depreciation ARMIS 43-02, ID 7, Bases of Charges for Depreciation MR 2, TOTAL COMPANY Balance Sheet Accounts MR2A, TOTAL COMPANY Changes in Telephone Plant Accounts MR 3, TOTAL COMPANY Income Statement MR3A, TOTAL COMPANY Details of Certain Accounts Included on Report No. MR 4, TOTAL COMPANY Summary of Operating Revenues MR 5, TOTAL COMPANY Operating Expenses MR2 IDAHO Qwest Corporation Balance Sheet Assets Current 1 Cash and Short Term Investments (1130,40,60) Receivable Trade (1180,1181 1190.8720. Other (1200 01,1190.29,1210,8720. Total Receivable Inventories (1220) Prepd Exp & Oth Curr Asset (1290 1300 20,30,50) 7 Total Current Assets Property, Plant and Equipment - 8 Telecommunications Plant in Service (2001) Telecommunications Plant Under Const (2003,2004) 10 Prop Held for Future Use & Plant Adj (2002 2005) 11 Non-Operating Plant (2006)12 Gross Property, Plant and Equipment 13 Less-Ace Depree. & Amort (31-3300 3410,20,35-3600)14 Total Telephone Plant Less Reserves Investments and Other Assets 15 Investments in Affiliated Companies (1401)16 Investments in Non-Affiliated Companies (1402)17 Nonregulated Investments (1406)18 Unamortized Debt Issuance Expense (1407)19 Sinking Funds (1408) 20 Other Noncurrent Assets (1410)21 Deferred Charges (1437 1438 1439,8730)22 Goodwill - Net (2007)23 Other Jurisdictional Assets - Net (1500)24 Total Investments and Other Assets25 Total Assets Monthly Report NO. Sheet 1 Period: December 2001 At End Increase Over Of Month Dec. 31 Last 1 ,208,653-164 175- 52,700 808 952,262 18,050 700,808 970 312 1,423,088 297 684 819,015 156 256 734 259 260,077 127 049,834 104 062,787 25,440.731 515 067- 650-102,944- 152,398 915 101 444 776 608,164 133 090 900 544,234 783 353 876 22,034 238 366 947 302,027,798 256 039 742 345-374 557- 281 319,691 248,429 879 288.732 862,382 MR2 IDAHO Qwest Corporation Balance Sheet Liabilities Current Short Term Borrowings (4020) Accounts Payable and Accrued Liabilities Accounts Payable - Trade (4010.21,.23) Accounts Payable - Other (4010.25,.28,.29) Employee Compensation (4010.24,4120.4 Advance Billing and Payments (4030) Dividend Payable (4010.32,4120. 7 Customers' Deposits (4040) Other (4010.33,4130,4080,4120,excpt 4120. Total Acct Payable & Accured Liabilities 10 Income Taxes Payable (4070,4100,4110)11 Current Portion long Term Borrowing/Lease (4050,4060) 12 Total Current liabilities Other 13 Long Term Borrowings (4210,20,30,40 70) 14 Accum Deferred Income Taxes (Non-Current) (4340,41 50)15 Unamortized Investment Tax Credit (4320,4330)16 Other (4310,4360,4361) 17 Oth Juris Liabilities & Deferred Credits - Net (4370)18 Total Other Liabilities19 Total Liabilities Shareholders' Equity20 Capital Stock - Common (4510.21 Capital Stock - Preferred (4510.22 Capital Stock - Restricted (4510.23 Additional Paid-In Capital (4520) 24 Treasury Stock (4530)25 Other Capital (4540)26 Retained earnings - Appropriated (4550.27 Retained earnings - Unappropriated (4550.28 Total Capital Stock and Retained Earnings29 Total Liabilities and Capital Monthly Report NO. Sheet 2 Period: December 2001 At End Increase Over Of Month Dec. 31 Last 803,327 538 624 069,357 115,021 251 846-376 628- 10,411 175 854,408 125,542 267 924 900,054 514 918 057 608 914 267 23,859,804 588,913 118,933 778,533 65,036,345 281 712 964 290 991 080- 689,041 530 940 677 ,400 712 534- 306 769 094 602 679,324-678 138- 138 958,176 243,790 203,994 522 525 502 92,639 675 294 211 63,244,241 675 294 211 336,880 879 288,732 862,382 MR2A IDAHO Qwest Corporation Changes In Telephone Plant Accounts 1 2111 - land 2 2112. Motor Vehicles 3 2113 - Aircraft 4 2114 - Special Purpose Vehicles 5 2115 - Garage Work Equipment 6 2116 - Other Work Equipment 7 Total Vehicles & Work Equipment 8 2121 . Buildings 9 2122 - Furniture 10 2123 - Office Equipment 11 2123 - Company Communication Equipment 12 Total Furniture & Office Equipment 13 2124 - General Purpose Computers 14 2211 - Analog Switching 15 2212 - Digital Switching 16 720C GAAP AFUDC 17 2215 - Step-by-Step Switching 18 2215 - Crossbar Switching 19 2220 - Operator Systems 20 2231 - Radio Systems 21 2232 - Circuit DDS 22 2232 - Circuit Digital 23 2232 - Circuit Analog 24 Total Central Office Equipment 25 2311 - Station Apparatus 26 2321 - Customer Premises Wiring 27 2341 - large PBX 28 2351 - Public Telephone Terminal Equipment 29 2362 - Other Terminal Equipment 30 Total Other Terminal Equipment 31 2411 - Poles 32 2421 - Aerial Cable - Metallic 33 2421 - Aerial Cable - Non-Metallic 34 2422 - Underground Cable - Metallic 35 2422 - Underground Cable - Non-Metallic 36 2423 - Buried Cable - Metallic 37 730C - GAAP AFUDC 38 2423 - Buried Cable - Non-Metallic 39 2424 - Submarine Cable - Metallic 40 2424 - Submarine Cable - Non-Metallic 41 2426 - Intrabuilding Cable - Metalnc 42 2426. Intrabuilding Cable - Non-Metallic 43 2431 - Aerial Cable 44 2441 - Conduit 45 Total Outside Plant 46 Total Owned Property, Plant. & Equipment Monthly Report NO. 2A Sheet 1 Period: December 2001 This Year To Date ---- Total At Plant Added Plant Retired Net Increase End of Period 1,407 310 267 049 728,423 538 625 472 317 19,089 089 130,625 347,215 451,542 282,437 169 105 159,528 737,680 010,861 726 819 109,685 654,449 912,652 741 797 825,496 13,632 632-813 33,384 33,384-639 616 23,264 265,416 242 152-530 584 23,264 312,432 289 168-209 013 186,472 560,273 373,801-12,487,422 303 939-16,184,464 18,488,402- 751 835 6,408 936 38,342,899 191 349,296 384 111 236 848-143 084 346 110 39,369-225 594-121,279 35,176,662 049,652 127 010 246 555,046 104 988 189,398 84,410-500,949 801,414 23,812,828 53,988 586 457 880,064 199 199 253 174 144 700 113 527-159,715 800,572 517-806,089 6,469 853 831,944 139,183 692 761 629,821 120,294 910 111 384 850,179 246 830 95,273 151 557 22,870,014 192 024 192,024 568,614 233 339 140 199.199 948,197 983,721 983,721 021,393 246,102 601 555 19,644 547 324,436,408 838,477 974 774,503 907 083 620 248,647 978 245,668 092,763 59,888 59,888 292,442 73,378 698 66,680 496,530 1,411 535 12,443 399,093 45,073,090 29,654.236 825,972 28,828,264 525,567 333 112 889,460 574 201 315,259 065,116,144 MR2A IDAHO Qwest Corporation Changes In Telephone Plant Accounts 47 2681 - Capital Leases - Buildings 48 2681 - Capital Leases - Vehicles 49 2681 - Capital Leases - Computers 50 2681 - Capital Leases - Software 51 2681 - Capital Leases - Other 52 Total Capital Leases 53 2682 - Leaseholds - Buildings 54 2682 . Leaseholds. Computers 55 2682 - Leaseholds - Towers 56 2682 - Leaseholds - Radio . 57 2682 - Leaseholds - Others 58 Total Leasehold Improvements 59 2690 - Intangibles - Organization Fees 60 2690 - Intangibles - Franchises 61 2690 - Intangibles - Patents 62 2690 - Intangibles - Trademarks 63 2690 - Intangibles - Software 64 2690 - Intangibles - Spectrum Rights 65 2690 - Intangibles. Other 66 Total Intangibles 67 Total Leases, Leaseholds, & Intangibles 68 Total Expenditures 69 2002 - Held for Future Use 70 2003 - Under Construction - Short Term 71 2004 - Under Construction - Long Term 72 2005 - Telephone Plant Adjustments 73 Telecommunication Plant 74 2006 - Non-Operating Plant 75 2007 . Goodwill 76 Total Telecommunication Plant Monthly Report NO. 2A Sheet 2 Period: December 2001 This Year To Date Total At Plant Added Plant Retired Net Increase End of Period 5,449 185 140 772 140 772- 077 843 705,987 371 856 11,924 146 077,843 846,759 231 084 373,331 195,385 195,385 360,190 267 258 195,385 195 385 627,448 18,321 059 18,321 059 924 521 390 18,321 059 321 059 932,911 594 288 846,759 747 529 933,690 134,483 747 30,420 960 104 062,787 127 049 834 602 035-602 035-23,185,170 086,968 086 968 255,561 131 968,681 30,420,960 101 547 720 152,490,565 102 944-102 944-650- 131 865,737 30,420,960 101,444 776 152 398,915 MR3 IDAHO Qwest Corporation Income Statement REVENUE Local Service (5001-5069) Access Service Interstate (5081-5083) Intrastate (5084) Long Distance Service (5100-5160) Miscellaneous (5230-5280, Excl5280.4, . Total Revenue EXPENSE Cost of Service and Products Maintenance (6110-6441 6531,6533) Engineering (6535) Network Operations (6534) Network Administration (6532) Access Interstate (6540. Intrastate (6540. Intrastate Wireless Wholesale (6540. Interstate Competitive Local Exch Carriers (6540. Intrastate Competitive Local Exch Carriers (6540. Inter Competive Local Exch (6540.61) Intra competive Local Exch (6540,62) AC CLEC ILEC (6540.63) Universal Service Fund Contribution (6540. Other (6511, 6512, 5280.4) Total Cost Of Services and Products Selling, General and Administrative Customer Operations (6610-6620) Corporate Operations Executive, Planning & Legal (6711-6725) Accounting and Finance (6721) External Relations (6722) Human Resources (6723) Infonnatlon Management (6724) Other (6726-6790,8747) Total Corporate Operations Property Taxes (7240. Other Operating Taxes (7240.2 - . Uncollectlbles (5300 & 5280. Total Selling, General & Administrative Other Operating (Income) & Expense (7100) Depreciation & Amortization (6560) Total Operating Expense Income From Operations Before Taxes Interest Expense (7500) Non Operating (Income) & Expense (7300 &7440) Income Before Income Taxes Income Taxes Federal (7210.7220 7250.1&.7410,7420 7450. State & Local (7210.3&4 7230.7250.2,. 79,7410.7430 7450.2,.3,.5&. Income Before Juris Diff & Extraord Items Jurisd. Diff & Nonreg Net Income (7910 7990) Extraordinary Items (7600) Net Income - Denotes Negative Amount MonIt1Iy Report NO. Sheet 1 Period: December 2001 This Year Inc Over Same To Date Pd Last Year 189 452,976 455,081 110,973,451 095 350 806 668 2,421,007 901,512 027 734- 22,503,636 219 101 347.638,242 162,804 343.192 614 520 036,413 179 363- 404 026 523,376- 619,844 675,155 732,631 571 085- 381,707 140,760 65,807-540,417- 020 025 106 475 675,242 570 439 107,434 96,235 254,709 389 341 40,001,901 366 758 435,235 471,770- 554 869 268,910- 965,641 318,789- 281,283 823 624- 10,934,616 037,644 827 791 911 245- 23,999433 756 693- 883,734 083 742 682,791 100,824 324 332 713 760- 77,892,191 919,129- 317 317 85,777 148 735,473 220,927 366 209 002 126710 876 953 802 12,415,156 19,801 962.44 7 567 422- 107,333,272 501 423 877 871 124 857 515,287 940 114 696,419 63,243,694 925 671 450,895 977 749- 428 644 MR3A Supplement A to Monthly Report NO. Sheet 1 IDAHO Period: December 2001 Qwest Corporation Details of Certain Accounts Included on Monthly Report No. This Year Inc Over Same To Date Pd Last Year Interest and Related Items Interest on Funded Debt (7510)10,086,416 178 713- Interest Expense - Captial Lease (7520)016,718 219 392 Amortization of Debt Issuance Expense (7530)302 180 19,262- Other - Advances - Affiliates (7540.11)733-733- - Other Affiliates (7540.19)014 014 Institutions (7540.21)947 166 88,569- - Banks (7540.22)249 54- Reseller (7540.23) - Miscellaneous (7540.29)146 725 Total Other (7540)009,842 617- Total Interest Expense 12,415,156 19,801 Other Operating (Income) and Expense Accounts Income from Custom Work (7110) Return from Nonregulated Use of Nonreg Fac (7130) (Gains) and Losses from Foreign Exchange (7140) (Gains) and Losses from Disp Land & Artwrk (7150) Other (7160)317 317 Total Other Operating (Income) and Expense 317 317 Nonoperating Income and Expense Accounts Dividend Income (7310)653,793 459 191 Interest Income (7320)602 140-527 036- Income from sinking and Other Funds (7330) Allow. for Funds Used During Construction (7340)1 ,298 588-571 685- Gains/Losses from Dispositions of Property (7350) Other (7360)621-623,763 Special Charges (7370)228 733 551 754- Other Taxes (7440)271 Total Nonoperating Income and Expense 962,447 567,422- Income Taxes - Federal Operating FIT (7220)32,885,457 802,584- Prov for Deferred Oper FIT-Originating (7250.048,901 539 395 Income Tax Allocation Adjustment (7250.71) Operating Investment Tax Credit-Net (7210.633,426- Total Normalized Operating FIT 38,300,932 736,865 Nonoperating FIT (7420)433 126 383,800 Prov for Def Nonoper. FIT-Originating (7450.143 813 193 Nonoperating Investment Tax Credit-Net (7410) Total Normalized Nonoperating FIT 576 939 387 992 Total Federal Income Tax 877 871 124 857 MR3A IDAHO Supplement A to Monthly Report NO. Sheet 2 Owest Corporation Details of Certain Accounts Included on Monthly Report No. Period: December 2001 This Year Inc Over Same To Date Pd Last Year Income Taxes - State and Local Operating SIT (7230)106 997 183 512- SIT Provisioning Deferred (7250.708,298 010 605 Prov for Deferred Oper SIT-Reversing (7250.4 Income Tax Allocation Adjustment (7250.72) State Invest Tax Cr (7210.108-234 794- Operating InvestmentTax Credit-Net (7210.3 &.4) Total Normalized Operating SIT 736,187 592,299 Nonoperating SIT Credit (7410. Nonoperating SIT (7430)210 346 211 852- Prov for Def Nonoper. SIT-Income (7450.431 246-454 775- Prov for Def Nonoper. SIT-Originating (7450. Prov for Def Nonoper. SIT-Reversing (7450.4 Total normalized Nonoperating SIT 220,900-666,628- Total State and Local Income Taxes 515,287 925,671 Jurisdictional Differences and Nonregulated Income Accounts, Income Effect of Juris Ratemarking Diff-Net (7910)696,419 977 749- Nonregulated Net Income (7990) Total (7900)696,419 977 749- Extraordinary Items Extraordinary Income Credits (7610) Extraordinary Income Charge (7620) Current Inc Tax Effect of Extraordinary Items - Net (7630) Prov for Def Inc Tax Effect of Extraordinary Items - Net (7640) Total Extraordinary Items (7600) MR4 IDAHO Qwest Corporation Summary of Operating Revenues Local Network Services Basic Local Services Basic Area (5001) Optional Extended Area (5002) Other Mobile Local Service (5004) Total Basic Local Service (5000) Public Telephone (5010) Local Private Line (5040) Customer Premises (5050) Other Local Exchange (5060) Other Local Exchange Settlements (5069) 10 Total Local Network Services Network Access Service End User (5081) Switched Access (5082) Special Access (5083) State Access (5084) 15 Total Network Access Service Summary16 Interstate17 Intrastate 18 Total Network Access Services Long Distance Network Services19 Long Distance Message (5100) Unidirectional Long Distance20 Inward Only (5111)21 Outward Only (5112)22 Total Unidirectional Long Distance 23 Long Distance Private Network24 Voice Grade (5122)25 Audio Program Grade (5123)26 Video Program Grade (5124)27 Digital Transmission (5125)28 Other Revenue Settlements (5129)29 Total Long Distance Private Network (5120)30 Other Long Distance (5160) 31 Total Long Distance Network Services32 Interstate33 Intrastate34 Total Long Distance Network Services Revenue Summary35 Interstate36 Intrastate 37 Total Revenue Excluding Miscellaneous Miscellaneous38 Directory (5230)39 Rent (5240)40 Corporate Operations (5250)41 Special Billing Arrangements (5261)42 Customer Operations (5262)43 Plant Operations (5263)44 Other Incidental Regulated (5264)45 Carrier Billing/Collecting (5270)46 Nonregulated (5280 Excl .4,. 47 Total Miscellaneous 48 Total Operating Revenues Monthly Report NO. Sheet 1 Period: December 2001 This Year Incr Over Same To Date Pd Last Year 142 514 717 861 710- 778-778- 142,512 939 863 488- 166 445- 19,665 665 920,206 299,349 189,452,976 455,081 42,382 062 667 887 22,724 542 120,208- 45,866 847 547,670 806,668 421,007 127,780 118 16,516 357 110,973 451 095,350 16,806,668 421 007 127 780 118 516 357 628,166 818 217- 106,196 611- 165 938 170 193- 272,134 206,804- 795 396 622- 191 622- 91- 901 512 027,734- 437,919 125 937- 7,463 593 901 794- 901 512 027,731- 111,411,369 969 413 213,723,237 25,706- 325,134,606 13,943 706 643,984 194,312- 522,784-4,465,349 005 610 200,393 23,977-104 509- 755 569 557 227- 958,573 619 554 970 449,402 346 946 287 310- 15,784,743 218,695 22,503,636 219 101 347,638 242 19,162,807 MR5 Monthly Report NO. Sheet 1 IDAHO Qwest Corporation Operating Expenses Period: December 2001 Maintenance This Year Iocr Over Same Plant Specific Operations Expense To Date Pd Last Year Network Support Expense Motor Vehicle Expense (6112)184 598 150 Aircraft Expense (6113) Special Purpose Vehicle Expense (6114)838 689 Garage Work Equipment Expense (6115)10,919 322- Other Work Equipment Expense (6116)37,074 16,430- Total Network Support Expenses (6110)233,429 088 General Support Expense Land and Building Expenses (6121)076 060 483 830- Fumiture and Artworks Expense (6122)574 184 252- Office Equipment Expense (6123)362,284 262,612- General Purpose Computers Expense (6124)950 965 251,990- Total General Support Expense (6120)462,882 182,684- Central Office Switching Expense Analog Electronic Expense (6211)521,774 310 582- Digital Electronic Expense (6212)052,948 604,864 Electro-Mechanical Expense (6215)860 731 Total Central Off Switching Expense (6210)575 581 295,013 Operator Systems Expense (6220)264 41,887 Central Office Transmission Expense Radio Systems Expense (6231)34,093 212- Circuit Equipment Expense (6232)993,528 319,366 Total Central Office Trans Expense (6230)027 622 288 154 Info OrlglnationlTennination Expense Station apparatus Expense (6311)126,133 997 Large Private Branch Exchange Expense (6341)317 221 15,678 Public Tele Terminal Equipment Expense (6351)512,866 130,402 Other Terminal Equipment Expense (6362)218,509 227 280- Total Info OriglTerminatlon Expense (6310)174 729 202- Cable and Wire Facilities Expenses Poles Expense (6411)78,254 13,242- Aerial Cable Expense (6421)364 237 895 Underground Cable Expense (6522)867 560 235 112- Buried Cable Expense (6423)528,270 599,678- Submarine Cable Expense (6424) Intra building Network Cable Expense (6426)339,985 831 Total Cable and Wire Fac Expense (6410)13,178,306 710 306- Aerial Wire Expense (6431)48,624 36,350 Conduit System Expense (6441)103 861 678 Total Plant Specific Oper Expense 34,855,298 260,022- Plant Non-Specific Oper Expense Power Expense (6531)181,303 293,145 Testing Expense (6533)306 591 581,398 Total Maintenance 41,343 192 614,520 MR5 Monthly ..Report NO. Sheet 2 IDAHO Owest Corporation Operating Expenses Period: December 2001 This Year Incr Over Same To Date Pd Last Year Engineering (6535)036,413 179 363- Network Operations (6534)5,404,026 523,376- Network Administration (6532)619,844 675,155 Access Interstate (6540. Intrastate (6540.732,631 571 085- Intrastate Wireless Wholesale (6540.381 707 140 760 Interstate Competitive Local Exch Carriers (6540. Intrastate Competitive Local Exch Carriers (6540.807-540 417- Inter Competive Local Exch (6540.61) Intra Competive Local Exch (6540.62)020,025 106 475 AC EX CLEC ILEC (6540.63) Universal Service Fund Contribution (6540.675 242 570 439 Total Access Expense (6540)743 800 706 170 Other Prop Held for Future Telecomm Use Exp (6511) Provisioning Exp & Nonregulated (6512,5280.107 434 235 Total Plant Non-specific Oper Expense 22,399,412 649 363 Total Cost of Services and Products 254 709 389,341 Selling, General & Administrative Customer Operations Marketing Product Management Expense (6611)491 412 871 571 Sales Expense (6612)448 302 974 387- Product Advertising Expense (6613)512,607 374 838- Total Marketing Expense (6610)452,320 477,654- Sevices Call Completion Services Expense (6621)487 785 310 Number Services Expense (6622)766,684 896 Customer Services Expense (6623)23,295,112 809,206 Total Services Expense (6620)25,549 581 844 412 Total Customer Operations 40,001 901 366 758 Corporate Operations Executive Expense (6711)493 978 737,926- Planning Expense (6712)131 529- Legal Expense (6725)853 126 347 685 Total Executive, Planning & Legal 435,235 2,471,770- Accounting and Finance Expense (6721)554,869 268,910- Extemal Relations Expense (6722)965,641 318,789- Human ResourcesExpense (6723)281,283 823,624- Information Management Expense (6724)10,934,616 037 644 Other Other Procurement Expense (6726)484 661 116 368- Research and Development Expense (6727)11,755 858 Other General and Admin Exp (6728,8747)331,375 804,735- Provision for Uncoil Notes Rae (6790) Total Other 827 791 911 245- Total Corporate Operations Expense 999 433 756,693- Property Taxes (7240.883 734 083 742 Other Operating Taxes (7240.682,791 100 824 Total Property & Other Operating Taxes (7240)566,525 184,566 MR5 IDAHO Qwest Corporation Operating Expenses Selling, General & Administrative (Cont' Uncollectible Rev - Telecommunications Interstate - End User (5301. Intrastate - End User (5301. Equal AccesslNet Rev (5301. Interstate - Carrier Access (5301.4) Intrastate - Carrier Access (5301. Video Dialtone Service (5301. Carrier Access Services (5301. Non-Regulated (5301. Tot Uncoil Revenue. Telecomm (6301) Uncollectible Revenue - Other (5302) Nonregulated Uncollectible (5280. Total Uncollectible Revenue Total Selling, General & Administrative Other Operating Income and Expense Income from Custom Work (7110) Ret From Nonreg Use of Reg Facilities (7130) Gains & Losses From Foreign Exchange (7140) Gains & Losses From Disp of Land & Art (7150) Other Operating Gains and Losses (7160) TotalOth Oper Income and Expenses (7100) Depreciation & Amortization Expense Depr Exp - Telecomm Plant in Service (6561) Depr Exp - Prop Held for Future Use (6562) Amortization Exp - Tangible (6563) Amortization Exp - Intangible (6564) Amortization Exp - Other (6565) Total Depr & Amortization Expense (6560) Total Operating Expenses Monthly .Report NO. Sheet 3 Period: December 2001 This Year Incr Over Same To Date Pd Last Year 614,981 949 725 149,154 765 822- 222,853 190,176 977 58,348- 484 7,484 278,707 278 707 326,155 398 079- 823-812- 311 869- 324 332 713,760- 77,892,191 919,129- 317 317 317 317 965 081 522 915 051 093 015 929 594 054 196 629 166 920 777,148 735 473 220 927,366 209 002 Co m p a n y : O w e s t C o r p o r a t i o n St u d y A r e a : I d a h o - S o u t h Pe r i o d : J a n - D e c 2 0 0 1 5 A n 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 (D o l l a r s I n T h o u s a n d s ) Ac t u a l Be g i n n i n g Ot h e r Re t i r e m e n t s Re t i r e m e n t s Co s t o f Ot h e r En d i n g Ro w Ac c t De s c r i p t i o n Ba l a n c e Ac c r u a l s Sa l v a g e Cr e d i t s wI Tr a f f i c wlo Tr a f f i c Re m o v a l Ch a r g e s Ba l a n c e 01 0 0 21 1 2 Mo t o r V e h i c l e s 7, 7 4 8 91 0 72 8 06 9 01 1 0 21 1 3 Ai r c r a f t 01 2 0 21 1 4 - To o l s a n d O t h 20 4 17 8 18 7 28 2 28 8 01 5 0 21 2 1 Bu i l d i n g s 97 3 12 5 54 6 91 3 20 4 52 7 01 6 0 21 2 2 Fu r n i t u r e 01 8 0 21 2 3 . Of f i c e E q u i p m 58 1 63 9 01 9 0 21 2 3 . Co m p a n y C o m 46 4 13 9 26 6 33 6 02 0 0 21 2 4 Ge n e r a l P u r p o 32 2 94 6 55 4 74 2 02 1 0 La n d a n d S 30 , 31 2 40 4 86 1 79 0 21 2 62 5 02 2 0 22 1 1 An a l o g E l e c t r o 52 0 86 6 16 , 18 4 43 5 76 8 02 3 0 22 1 2 Dig i t a l E l e c t r o n 68 , 15 8 18 6 19 2 05 0 6, 4 0 9 87 2 30 5 02 6 0 22 1 5 El e c t r o - Me c h a 02 7 0 Ce n t r a l O f f i 67 8 05 2 19 2 05 0 59 3 30 7 76 8 78 , 30 4 02 8 0 22 2 0 Op e r a t o r S y 03 0 0 22 3 1 Ra d i o F a c i l i t i e 4, 4 7 3 60 9 20 8 87 4 03 1 0 22 3 2 Ci r c u i t E q u i p m 14 1 01 1 71 1 13 1 25 1 47 0 16 7 15 6 03 2 0 Ce n t r a l O f f i 14 5 , 4 8 4 32 0 13 1 25 1 47 0 20 8 17 2 03 0 03 3 0 23 1 1 St a t i o n A p p a r a 33 7 33 7 03 4 0 23 2 1 Cu s t o m e r P r e 03 5 0 23 4 1 La r g e P u b l i c B 03 6 0 23 5 1 Pu b l i c T e l e p h o 24 1 14 5 03 6 03 7 0 23 6 2 Ot h e r T e r m i n a l 53 7 54 6 14 0 03 8 0 In f o r m a t i o n 44 1 56 5 14 5 83 9 03 9 0 24 1 1 Po l e s 11 7 57 5 19 3 85 0 04 0 0 24 2 1 Ae r i a l C a b l e 55 5 53 5 15 4 24 2 91 0 04 1 0 24 2 2 Un d e r g r o u n d C 14 5 06 1 71 1 14 0 45 , 75 7 04 2 0 24 2 3 Bu r i e d C a b l e 19 1 28 2 34 4 05 7 66 6 41 0 21 3 69 6 04 3 0 24 2 4 Su b m a r i n e C a 04 4 0 24 2 5 De e p S e a C a b 04 5 0 24 2 6 In t r a b u i l d i n g N 25 3 33 8 15 4 4, 4 3 6 04 6 0 24 3 1 Ae r i a l W i r e 58 1 74 2 04 7 0 24 4 1 Co n d u i t S y s t e 87 7 84 0 26 9 97 4 04 8 0 Ca b l e a n d 26 8 81 8 79 1 11 0 2, 4 7 3 82 6 83 9 15 4 29 9 , 37 3 04 9 0 To t a l A c c u 53 5 74 0 13 2 38 3 57 6 60 5 83 2 21 0 58 9 , 17 8 FC C R e p o r t 4 3 - AR M I S U S O A R e p o r t Ap p r o v e d b y O M B 30 6 0 - 03 9 5 Ex p i r e s 0 2 1 2 8 / 0 2 Un r e s t r i c t e d V e r s i o n Su b m i s s i o n 1 TA B L E B - CO M P A N Y : Q W E S T C O R P O R A T I O N ST U D Y A R E A : I D A H O - SO U T H E R N PE R I O D : F r o m J a n 2 0 0 1 T o D e c 2 0 0 1 CO S A : P N I D BA S E S O F C H A R G E S F O R D E P R E C I A T I O N (D o l l a r s i n T h o u s a n d s ) Wh o l e o r Ne t De p r e c i a t i o n Pr e s c r i b e d Ac c o u n t s 6 5 6 1 - 0 5 6 5 Co m p o s i t e Lin e Ac c o u n t N u m b e r a n d Re m a i n i n g Li f e Sa l v a g e Re s e r v e Ra t e Ex p e n s e Am o r t i z a t i o n Av e r a g e Ra t e No . Tit l e of Re l a t e d P l a n t A c c o u n t s Li f e (Y e a r s ) (P e r c e n t ) (P e r c e n t ) (P e r c e n t ) Am o u n t Am o u n t Pl a n t B a l a n c a (P e r c e n t ) (a ) (b ) (e ) (d ) (e ) (I ) (g ) (h ) (i ) (j ) 21 1 2 M O T O R V E H I C L E S 11 . 64 . 91 0 49 5 92 % 2 2 1 1 4 S P E C PU R P O S E V E H I C L E S 12 . 28 . 11 5 09 % 3 2 1 1 5 GA R A G E W O R K E Q U I P 13 . 4 10 . 34 7 07 % 4 2 1 1 6 O T H E R WO R K E Q U I P 11 . 36 . 5. 4 % 25 3 11 0 10 8 80 % 5 2 1 2 1 B U I L D I N G S 24 . 1. 0 % 32 . 12 5 80 3 90 % 6 2 1 2 2 F U R N I T U R E -0 . 15 . 32 . 61 % 7 2 1 2 3 . 1 O F F I C E E Q U I P M E N T 39 . 12 . 65 8 13 . 83 % 8 2 1 2 3 . 2 C O M P A N Y C O M M E Q U I P 4. 4 61 . 2 % 11 6 97 9 14 . 20 % 9 2 1 2 4 G E N PU R P O S E C M P T R 48 . 15 . 80 9 13 6 13 7 16 . 03 % 22 1 1 A N A L O G S W E Q U I P 71 . 15 . 86 6 74 5 15 . 07 % 22 1 2 D I G I T A L S W E Q U I P 32 . 18 6 17 3 93 5 58 % 22 2 0 O P E R A T O R S Y S T E M S 10 0 . 00 % 22 3 1 R A D I O S Y S T E M S 44 . 60 9 24 6 8.4 0 % 22 3 2 C I R C U I T D D S 1. 0 % 34 . 14 . 16 1 14 1 14 . 11 % 22 3 2 C I R C U I T D I G I T A L 38 . 10 . 09 0 23 0 22 4 10 . 90 % 22 3 2 C I R C U I T A N A L O G -4 . 66 . 12 . 46 1 58 7 98 % 23 5 1 P U B T E L T E R M E Q U I P 3.2 86 . 22 2 59 % 23 6 2 O T H E R T E R M E Q U I P 50 . 10 . 54 6 05 2 02 % 24 1 1 P O L E L I N E S 10 . 10 9 . 84 . 12 . 57 5 79 5 11 . 99 % 24 2 1 A E R I A L C A B L E M E T 25 . 58 . 49 8 36 5 70 % 24 2 1 A E R I A L C A B L E N O N M E T 14 . 25 , 45 8 86 " ' - 24 2 2 U N D G R D C A B L E M E T 12 . 20 . 49 . 4 % 07 2 54 , 85 9 60 % 24 2 2 U N D G R D C A B L E N O N M E T 17 . 20 . 18 . 3 % 98 9 17 , 04 6 80 ' 24 2 3 B U R I E D C A B L E M E T 10 . -4 . 40 . 05 7 31 3 38 9 40 % 24 2 3 B U R I E D C A B L E N O N M E T 16 . -4 . 20 . 28 7 74 0 00 % 24 2 4 S U B C A B L E M E T 14 . 60 . 00 % 24 2 4 S U B C A B L E N O N M E T 20 . 00 % 24 2 6 I N T R A B L D G C A M E T 55 . 5'A . 32 7 94 6 50 % 24 2 6 I N T R A B L D G C A B L E N O N M E T 16 . 27 . 25 5 31 % 24 3 1 A E R I A L W I R E 12 3 . 11 7 . 21 . 45 8 21 . 4 0 % 24 4 1 C O N D U I T S Y S T E M S 43 . -4 . 23 . 84 0 20 4 90 % To t a l ( I i n a s 1 . . 3 2 ) 96 4 16 7 01 8 37 3 38 % MR2 Monthly Report NO. Sheet 1 Period: December 2001TOTAL COMPANY Qwest Corporation Balance Sheet At End Of Month Increase Over Dec. 31 Last Assets Current 1 Cash and Short Term Investments (1130,40,60) Receivable Trade (1180 1181 1190.8720. Other (1200 1190.29,1210 8720. Total Receivable- 5 Inventories (1220) Prepd Exp & Oth Curr Asset (1290,1300,10,50) 7 Total Current Assets 169 631 863 945,467 797 317 220 954 262 688 751 181 391 047 653 106 671 364 767 Property, Plant and Equipment Telecommunications Plant in Service (2001) Telecommunications Plant Under Const (2003 2004)10 Prop Held for Future Use & Plant Adj (2002 2005) 11 Non-Operating Plant (2006)12 Gross Property, Plant and Equipment 13 Less-Acc Deprec. & Amort (31-3300 3410 35-3600)14 Total Telephone Plant Less Reserves 907 139 341 703,382 083 745 906 887 827 660,155 157 512 187 091 147 968 066 Investments and Other Assets 15 Investments in Affiliated Companies (1401) 16 Investments in Non-Affiliated Companies (1402) 17 Nonregulated Investments (1406) 18 Unamortized Debt Issuance Expense (1407)19 Sinking Funds (1408) 20 Other Noncurrent Assets (1410) 21 Deferred Charges (1437 1438 1439 8730)22 Goodwill - Net (2007) 23 Other Jurisdictional Assets - Net (1500) 24 Total Investments and Other Assets25 Total Assets 458 072 353- 028 068 121 382,437 137 369 019 936 147 372 016,798- 728 837 745 548 170 578 930,350- 141 601 748 319 306 041 460 907 789 976,451 305,933- 383,647 956 297 746,762 308 116 824- 168 655- 983,461 283 841 345 053 142 116 230 320 292,791- 19,479 858 10,973 708- 220,192,447- 974,453 242 145 835- 680 150,471- 845,613 715 MR2 TOTAL COMPANY awest Corporation Balance Sheet Liabilities Current Short Term Borrowings (4020) Accounts Payable and Accrued Liabilities Accounts Payable - Trade (4010.23) Accounts Payable - Other (4010.28,.29) Employee Compensation (4010.24,4120.4- 5 Advance Billing and Payments (4030) Dividend Payable (4010.32,4120. 7 Customers' Deposits (4040) Other (4010.33,4130,4080,4120 excpt 4120. Total Acct Payable & Accured Liabilities 10 Income Taxes Payable (4070,4100,4110) 11 Current Portion long Term Borrowing/Lease (4050,4060) 12 Total Current Liabilities Other 13 Long Term Borrowings (4210 30,40 70) 14 Accum Deferred Income Taxes (Non-Current) (4340,41 50) 15 Unamortized Investment Tax Credit (4320,4330) 16 Other (4310,4360,4361) 17 Oth Juris Liabilities & Deferred Credits - Net (4370)18 Total Other Liabilities 19 Total Liabilities Shareholders ' Equity 20 Capital Stock - Common (4510.21 Capital Stock - Preferred (4510.22 Capital Stock - Restricted (4510. 23 Additional Paid-In Capital (4520) 24 Treasury Stock (4530)25 Other Capital (4540)26 Retained earnings - Appropriated (4550.27 Retained earnings - Unappropriated (4550.28 Total Capital Stock and Retained Earnings 29 Total Liabilities and Capital Monthly Report NO. Sheet 2 Period: December 2001 At End Of Month Increase Over Dec. 31 Last 912 703,889 326,206,165 040,070,557 575 109,504- 116 314 907 18,008 713- 52,931 396 130,474 005- 333 709 568 275,395- 40,417 085 269,335- 653,313 003 315 984 505- 236 756,516 048,121,458- 337,436-195 208 241- 480 346 534 123 828,395 605,469 503 793,295,139- 768 703,115 446,672 291- 070,885 607 489 664 559 209,254 837 363 718- 981 958 519 122 906 957 78,131 857-122 383 341- 952 670,221 18,152,166 558,139 724 775,142 974- 328,432 910 138 776- 666 736 720 990 030,854 548,170 578 286 611,836 370,074 331 774 779 620,756 689 845,613 715 MR2A TOTAL COMPANY Qwes! Corporation Changes In Telephone Plant Accounts 1 2111 - Land 22112 - Motor Vehicles 3 2113 - Aircraft 4 2114 - Special Purpose Vehicles 5 2115. Garage Work Equipment 6 2116 - Other Work Equipment 7 Total Vehicles & Work Equipment 8 2121 - Buildings 9 2122 - Furniture 10 2123 - Office Equipment 11 2123 - Company Communication Equipment 12 Total Furniture & Office Equipment 13 2124 - General Purpose Computers 14 2211 - Analog Switching 15 2212 - Digital Switching 16 720C GAAP AFUDC 17 2215 - Step-by-Step Switching 18 2215. Crossbar Switching 19 2220 - Operator Systems 20 2231 - Radio Systems 21 2232 - Circuit DDS 22 2232 - Circuit Digital 23 2232 - Circuit Analog 24 Total Central Office Equipment 25 2311 - Station Apparatus 26 2321 - Customer Premises Wiring 27 2341 - Large PBX 28 2351 - Public Telephone Terminal Equipment 29 2362 - Other Temninal Equipment 30 Total Other Terminal Equipment 31 2411- Poles 32 2421 - Aerial Cable - Metallic 33 2421 - Aerial Cable - Non-Metallic 34 2422 - Underground Cable - Metallic 35 2422 . Underground Cable - Non-Metallic 36 2423. Buried Cable - Metallic 37 730C - GAAP AFUDC 38 2423 - Buried Cable - Non-Metallic 39 2424 - Submarine Cable - Metallic 40 2424 - Submarine Cable - Non-Metallic 41 2426 -Intrabuilding Cable - Metallic 42 2426 - Intrabuilding Cable - Non-Metallic 43 2431 - Aerial Cable 44 2441 - Conduit 45 Total Outside Plant 46 Total Owned Property, Plant, & Equipment Monthly Report NO. 2A Sheet 1 Period: December 2001 ----- This Year To Date Total At Plant Added Plant Retired Net Increase End of Period 533,687 409 920 123,766 101 258 770 895,835 29,702,687 193.148 433 260,861 875,494 099 891 721 114 161 440-727,452 833,232 13,719 145 114,086 253,836,297 76,821 788 43,535 993 285,795 700 799,996 180 146 070 48,291 182 131 854,888 653,291,428 242-710,912 802,154-940,560 717,911 759,717 041 807-556,544 350,548 20,927 935 577 387-939 823 977 217 28,398 565 24,421 348-98,436,927 361 080 63,278 205 917 125-648,549,415 818 838-269,851 845 296 670,683-132 769 049,452 923 314,117,626 735 335 297 364 248,354 453,359 330,384 877 025-28,565,491 070,616 30,234,333 26,163,718-262,677 067 920,369 754,462 834,093-59,767 160 1,481 982,219 170,341,807 311 640,412 9,402 769 309 020,656 18,287 008 266,352-459 622 682 516 081 304 810,917,466 705,163,838 586,782 832 172 053 145 333 26,720 35,849 120 128 606,891 303,797 696,905-127 094,357 45,128,558 291 093-45,419 650 371 317 101 907 502 158 037 43,749,465 534,285,706 6,492,224 692,694 799,530 247,687 115 512,873 656,827 856 046 214,424 661 741 149 146,470 594,679 30,717,469 111 187 275 871 190 102 316,086 2,451 985 556 118,162 265 848 990 115,313,275 739 721 118 610,405,705 447 187 533,958,518 113 211 359 983 218 399 030 584 188 646,599,457 188,353 820 988 820 976 792 987 11,499,922 659,201 840,720 344 366,835 551 574 546 2,467,028 641 339 942,514 770,268 172.246 39,404 064 164 935,487 516,619 160,418,868 051 969,695 136,235,193 118,093,033 018,142,160 909,710,008 997 063,840 119 082,401 877 981,439 40,233,115,082 MR2A TOTAL COMPANY Qwest Corporation Changes In Telephone Plant Accounts 47 2681 - Capital Leases - Buildings 48 2681 - Capital Leases - Vehicles 49 2681 - Capital Leases - Computers 50 2681 - Capital Leases. Software 51 2681 - Capital Leases. Other 52 Total Capital Leases 53 2682 - Leaseholds - Buildings 54 2682 - Leaseholds - Computers 55 2682 - Leaseholds - Towers 56 2682 - Leaseholds - Radio 57 2682 - Leaseholds. Others 58 Total Leasehold Improvements 59 2690 - Intangibles. Organization Fees 60 2690 - Intangibles - Franchises 61 2690 - Intangibles - Patents 62 2690 - Intangibles - Trademarks 63 2690 - Intangibles - Software 64 2690 - Intangibles - Spectrum Rights 65 2690 - Intangibles - Other 66 Total Intangibles 67 Total Leases, Leaseholds, & Intangibles 68 Total Expenditures 69 2002 - Held for Future Use 70 2003 - Under Construction - Short Term 71 2004 - Under Construction - Long Term 72 2005 - Telephone Plant Adjustments 73 Telecommunication Plant 74 2006 - Non-Operating Plant 75 2007 - Goodwill 76 Total Telecommunication Plant Monthly Report NO. 2A Sheet 2 Period: December 2001 This Year To Date Total At Plant Added Plant Retired Net Increase End of Period 122,594 122 594-757 506 237 25,938 299 299 620,568 12,128,139 507 571-54,429,068 38,817 986 102,047,523 229,537-310 819 049 524 896 524 895 758,846 55,989,687 115,324 193 334 506-393,764 768 321 018 000 318,018 166,856,594 717 848 321 018 000 318,018 171 574 442 462 771,451 462 771,451 108,488 445 360 0 .360 196,605 462 781 811 462,781 811 108 685,050 535,092 516 115 327 193 419 765 323 674 024 259 532,156,356 234,409,594 297,746 762 907 139,341 247 046,900-247 046 903-575,310,900 072 508-587-069 921-128,071 184 745,906 224,036 948 234,407 010 989,629 938 613,267 330 168 655-168 655-46,887 827 217,868,293 234,407,010 983,461 283 660 155,157 MR3 TOTAL COMPANY awes! Corporation Income Statement REVENUE Local Service (5001-5069) Access Service Interstate (5081-5083) Intrastate (5084) Long Distance Service (5100-5160) Miscellaneous (5230-5280, Excl 5280. , . Total Revenue EXPENSE Cost of Service and Products Maintenance (6110-8441 6531 6533) Engineering (6535) Network Operations (6534) Network Administration (6532) Access Interstate (6540. Intrastate (6540. Intrastate Wireless Wholesale (6540. Interstate Competitive Local Exch Carriers (6540.4) Intrastate Competitive Local Exch Carriers (6540. Inter Competive Local Exch (6540.61) Intra competive Local Exch (6540.62) AC CLEC ILEC (6540.63) Universal Service Fund Contribution (6540. Other (6511, 6512, 5280.4) Total Cost Of Services and Products Selling, General and Administrative Customer Operations (6610-6620) Corporate Operations Executive, Planning & Legal (6711-6725) Accounting and Finance (6721) External Relations (6722) Human Resources (6723) Information Management (6724) Other (6726-6790,8747) Total Corporate Operations Property Taxes (7240. Other Operating Taxes (7240.2 - . Uncollectibles (5300 & 5280. Total Selling, General & Administrative Other Operating (Income) & Expense (7100) Depreciation & Amortization (6560) Total Operating Expense Income From Operations Before Taxes Interest Expense (7500) Non Operating (Income) & Expense (7300 &7440) Income Before Income Taxes Income Taxes Federal (7210.7220,7250.1&.71,7410,7420 7450. State & Local (7210.3&4 7230.7250.3,. 7410.7430,7450.2,.3,.5&. Income Before Juris Diff & Extraord Items Jurisd. Diff& Nonreg Net Income (7910 7990) Extraordinary Items (7600) Net Income - Denotes Negative Amount Monthly Report NO. Sheet 1 Period: December 2001 This Year Inc Over Same To Date Pd Last Year 856,462,937 461 699 583,515,433 254 302 743 713,946 794 942,310- 263,819,712 109 866,617- 653,406,623 242,960,977 12,071 151,500 424 916 490 945 778 724 175 108,500- 494 448 306 849- 309 394 603 156,634- 140 075 311 129 390 631 339 504 359 585- 66,370 115 307,838- 14,930 222 128,882 880 382 13,879,265-29,209,870- 82,426,205 40,553,649- 358,597 358 597 143 221 374 978 132 533,312 653,490 747,048 030 158 490 811- 369,762,235 47,474,335- 91,516,776 280,618- 64,692,950 855,707- 119 918 650 529 144- 662,702 873,270- 512 404 302 004 235- 215,240 808 340,042 144- 054,436 188 506 585,119- 240 781 284 049 148- 101 654,305 758 108- 180 603 566 993 598 947 237,578 562,873,112- 142,112 194 920 170 960 320 365 587,841 865,388 041 355,581,162- 205,763,459 780 497 652 517 205 072 641,705- 230 988 600 853,390- 457 569 787 889 992 746 889 798,487 273 456 130 116 201 414 451 569,886 119 762,494 331 807 391 26,635 081 589,901,535 105 692- 644,007,227 MR3A TOTAL COMPANY awest Corporation Details of Certain Accounts Included on Monthly Report No. Interest and Related Items Interest on Funded Debt (7510) Interest Expense - Captial Lease (7520) Amortization of Debt Issuance Expense (7530) Other - Advances - Affiliates (7540.11) - Other Affiliates (7540.19)6 -Institutions (7540.21) - Banks (7540.22)8 -Reseller (7540.23) - Miscellaneous (7540.29)10 Total Other (7540)11 Total Interest Expense Other Operating (Income) and Expense Accounts12 Income from Custom Work (7110)13 Return from Nonregulated Use of Nonreg Fac (7130)14 (Gains) and Losses from Foreign Exchange (7140)15 (Gains) and Losses from Disp Land & Artwrk (7150)16 Other (7160)17 Total Other Operating (Income) and Expense Nonoperating Income and Expense Accounts Dividend Income (7310) Interest Income (7320) Income from sinking and Other Funds (7330) Allow. for Funds Used During Construction (7340) Gains/Losses from Dispositions of Property (7350) Other (7360) Special Charges (7370) Other Taxes (7440) Total Nonoperating Income and Ex~nse Income Taxes - Federal27 Operating FIT (7220)28 Prov for Deferred Oper FIT-Originating (7250.29 Income Tax Allocation Adjustment (7250.71)30 Operating Investment Tax Credit-Net (7210.31 Total Normalized Operating FIT32 Nonoperating FIT (7420)33 Prov for Def Nonoper. FIT-Originating (7450.34 Nonoperating Investment Tax Credit-Net (7410)35 Total Normalized Nonoperating FIT36 Total Federal Income Tax Supplement A to Monthly Report NO. Sheet 1 Period: December 2001 This Year To Date Inc Over Same Pd Last Year 445 694,479 729 992 272,033 236,419 155 568 711 854 661 276 719 115,460- 657 307- 236,419 155 568 273 163- 749- 50,262 731- 145 657- 641 705- 395 067 508 568 517 205 072 050 304 132 063 137 617 142 112 194,920 335,418 319 26,920,780 24,436 135-18,153,492- 030,278-211 297 50,750 237-135,482- 153 781 680 712- 314 771 202 715- 318 378 186 934 230 988 600 853 390- 434 933,101 571,138- 451 519 842 321,436,747 013,834-166,350 865,439 109 254 031 959 28,043 376 45,971,836- 910 273-746 169 773 725-350 161- 359 378 19,424 172 889 798,487 273,456,130 MR3A TOTAL COMPANY Supplement A to Monthly Report NO. Sheet 2 Owest Corporation Details of Certain Accounts Included on Monthly Report No. Period: December 2001 This Year Inc Over Same To Date Pd Last Year Income Taxes - State and Local Operating SIT (7230)684 725 4,482 859- SIT Provisioning Deferred (7250.60,486 223 33,846 915 Prov for Deferred Oper SIT-Reversing (7250.4 Income Tax Allocation Adjustment (7250.72) State Invest Tax Cr (7210.576 159-168,701- Operating Investment Tax Credit-Net (7210.3 &.4) Total Normalized Operating SIT 110 594 789 195,356 Nonoperating SIT Credit (7410. Nonoperating SIT (7430)089,442 666,774- Prov for Def Nonoper. SIT-Income (7450.517 183 106,498 Prov for Def Nonoper. SIT-Originating (7450. Prov for Def Nonoper. SIT-Reversing (7450.4 Total normalized Nonoperating SIT 606,625 5,439,725 Total State and Local Income Taxes 116,201,414 26,635,081 Jurisdictional Differences and Nonregulated Income Accounts Income Effect of Juris Ratemarking Diff-Net (7910)119,762,494 105,692- Nonregulated Net Income (7990) Total (7900)119 762,494 105 692- Extraordinary Items Extraordinary Income Credits (7610) Extraordinary Income Charge (7620) Current Inc Tax Effect of Extraordinary Items - Net (7630) Prov for Def Inc Tax Effect of Extraordinary Items - Net (7640) Total Extraordinary Items (7600) MR4 TOTAL COMPANY Owest Corporation Summary Of Operating Revenues Local Network Services Basic Local Services Basic Area (5001) Optional Extended Area (5002) Other Mobile Local Service (5004) Total Basic Local Service (5000) Public Telephone (5010) Local Private Line (5040) Customer Premises (5050) Other Local Exchange (5060) Other Local Exchange Settlements (5069) 10 Total Local Network ServIces Network Access Service End User (5081) Switched Access (5082) Special Access (5083) State Access (5084) 15 Total Network Access Service Summary16 Interstate17 Intrastate 18 Total Network Access Services Long Distance Network Services19 Long Distance Message (5100) Unidirectional Long Distance20 Inward Only (5111)21 Outward Only (5112)22 Total Unidirectional Long Distance 23 Long Distance Private Network24 Voice Grade (5122)25 Audio Program Grade (5123)26 Video Program Grade (5124)27 Digital Transmission (5125)28 Other Revenue Settlements (5129)29 Total Long Distance Private Network (5120)30 Other Long Distance (5160) 31 Total Long Distance Network Services32 Interstate33 Intrastate34 Total Long Distance Network Services Revenue Summary35 Interstate36 Intrastate 37 Total Revenue excluding Miscellaneous Miscellaneous Directory (5230) Rent (5240) Corporate Operations (5250) Special Billing Arrangements (5261) Customer Operations (5262) Plant Operations (5263) Other Incidental Regulated (5264) Carrier Billing/Collecting (5270) Nonregulated (5280 Exct . 10 Total Miscellaneous 11 Total Operating Revenues Monthly Report NO. Sheet 1 Period: December 2001 This Year Incr Over Same To Date Pd Last Year 272,005,152 16,238 727- 61,037 138 090,060 22,712 354- 333,065 002 850,978 090 65,113- 579 977 314 538 522,793,526 361,296 341 856.462,937 69,461 699 350 119,886 761,585 704,202 300 141,195 140- 529.193,246 319,736,298 713,946,794 31.942,310- 297 462,227 222,360,432 583,515,433 254,302,743 713,946,794 942,310- 297 462,227 222 360 432 250 499,682 640,784- 837 887 069 776- 942,491 10,522,722- 12,780,378 11,592,498- 30,663 567,814- 787 047- 503 183 62,090- 539,633 631 951- 384- 263 819,712 109 866,617- 12,907 457 012,944- . 250,912,255 102,853 670- 263,819,712 109 866,614- 596,422,890 247 289,798 821 321,986 334,282- 417,744,876 181,955 516 83,016,124 721 533- 435,588,508 197,500 292 959,297 372,217- 463,148-195,978- 069,408 18,548,833- 080,785 18,307,590 209,380,823 131 383 115,255,688 213,167- 644,519,137 073 440 653,406 623 242,960,977 071,151 500 424 916,493 MR5 Monthly Report NO. Sheet 3 TOTAL COMPANY Period: December 2001 Qwest Corporation Operating Expenses This Year Incr Over Same Selling, General & Administrative (Cont'To Date Pd Last Year Uncollectible Rev - Telecommunications Interstate - End User (5301.670 008 12,257 276 Intrastate - End User (5301.149 856 256 35,207 083 Equal Access/Net Rev (5301.43,908- Interstate. Carrier Access (5301.4)702,483 535,725 Intrastate. Carrier Access (5301.991 749 670,898- Video Dialtone Service (5301. Carrier Access Services (5301.664 798 645,295 Non-Regulated (5301.10,660,346 10,660,346 Tot Uncoil Revenue. Telecomm (5301)178,545,639 590,918 Uncollectible Revenue - Other (5302)057,927 961,269 Nonregulated Uncollectible (5280.558,589- Total Uncollectible Revenue 180,603,566 49,993,598 Total Selling, General & Administrative 947 237 578 562,873,112- Other Operating Income and Expense Income from Custom Work (7110) Ret From Nonreg Use of Reg Facilities (7130) Gains & Losses From Foreign Exchange (7140) Gains & Losses From Disp of Land & Art (7150)10,050 304 Other Operating Gains and Losses (7160)132,063 137 617 Total Oth Oper Income and Expenses (7100)142,112 194,920 Depreciation & Amortization Expense Depr Exp - Telecomm Plant in Service (6561)812 193 244 232,421 234 Depr Exp - Prop Held for Future Use (6562) Amortization Exp - Tangible (6563)167 052,771 293,836 Amortization Exp - Intangible (6564)171 112,156 872,770 Amortization Exp . Other (6565)20,602,149 Total Depr & Amortization Expense (6560)170 960,320 365,587,841 Total Operating Expenses 865,388,041 355,581 162-