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Home My WebLink About2002Annual Report.pdfQwest& Spirit of Service ""- (;,tCE/tl /' - " January 30, 2004 'lPn/ OM,! JAN 3D ~"-" PH 4: i'- ,..' ' U I t L f T ;,-:.- ) , i ,, :';; L Ie'f:~ CO~;i; lISSiON Jean Jewell Secretary Public Utility Commission of Idaho PO Box 83720 Boise, ID 83720-0074 RE:Qwest 2002 Idaho-South and Idaho-North Annual Reports Enclosed are the Idaho-South and Idaho-North Annual Report Form Ms of Qwest Corporation (Qwest) for the year ended December 31 , 2002. On Tuesday, January 13, 2004 Qwest Corporation filed with the Securities and Exchange Commission restated financial statements for 2000 and 2001 and issued 2002 financial statements. As a result, Qwest is now able to file the 2002 Idaho-South and Idaho-North Annual reports with the Public Utility Commission ofldaho. The regulatory financial statements included in this filing were prepared using the same restated accounting entries as used with the 2002 ARMIS reports filed with the FCc. As noted in the transmittal letter accompanying the 2002 ARMIS report filing, if any further material adjustments to the regulatory operating results are identified, we will notify the Idaho Commission staff. Because of its restatement of2000 and 2001 financial statements, Qwest's parent company will file amended income tax returns for 2000 2001 and 2002. Qwest will record any changes to its current tax liability or deferred tax liability that result from filing amended returns in the then current period and not to the period in which the changes were realized. Once the amended returns have been filed and the effect of the filing on Qwest's tax liability has been determined, Qwest will also review and, as necessary, true-up the allocation of current and deferred income taxes among the various state jurisdictions in which it does business. This true-up will also be recorded in the then current period. cor 'ally, John Souba Director Regulatory Affairs Enclosures ANNUAL REPORT FORM M QWEsT CORPORATION DENVER, COLORADO - ,... - . i , PUBLIC UTILITY COMMISSION 01= IDAHO (SO. FOR THE YEAR ENDING DECEMBER 31 2002 Office or other person to whom correspondence should be addressed concerning this report: Name: James M. Schmit Title: Vice President Address: 999 Main St, 11 th Floor City: Boise State: Idaho Zip: 83702 ANNUAL REPORT FORM M PUBLIC UTILITY 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-, ID 7, Bases of Charges for Depreciation MR 2, TOTAL COMPANY Balance Sheet Accounts MR2A, TOTAL COMPANY Changes in TeI~phone Plant Accounts MR 3, TOTAL COMPANY Income Statement MR3A, TOTAL COMPANY Details of Cert~i~ 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 (1130,40,50,60) Receivable Trade (1180 1181 1190.8720. Other (1200 1190.1210 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) 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 35-3600)14 Total Telephone Plant Less Reserves Investments and Other Assets15 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 2002 At End Increase Over Of Month Dec. 31 Last 743 618-534 965- 532 054 613 677- 532 054 613 677- 694 150 728 938- 248,443 466 036- 731 029 343,616- 173,637 724 436 141 916 931 084 903- 748-901 180 533 906 34,422 139 679,117 ,873 330 651 501,416,034 908 512- 666 547 127 227 344 180,929 195 565 093 789-351 201- 320 753 687 971 590 864 900 749 719,463 MR2 IDAHO Qwest Corporation Balance Sheet Liabilities Current Short Term Borrowings (4020) Accounts Payable and Accrued Liabilities Accounts Payable - Trade (4010.23) Accounts Payable - Other (4010.29) Employee Compensation (4010.24,4120. Advance Billing and Payments (4030) Dividend Payable (4010.4120. 7 Customers' Deposits (4040) Other (4010.31 ,.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 30,70) 14 Accum Deferred Income Taxes (Non-Current) (4340 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' 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 Earnings29 Total Liabilities and Capital Monthly Report NO. Sheet 2 Period: December 2002 At End Increase Over Of Month Dee; 31 Last 976 147 078 823 989 337 019- 362 212-110 367- 715 256 918- 935 572 189 969- 259,597 103 807- 513 698 566 742 118 784 793 189- 118 933- 632,481 345 380- 960 973 317- 271 704 276 722- 668 597 803- 72,416 750 385,866 378,406-093 226- 142 939 617 003 797 193 572 099 341 583- 671 328 650 061 046 671 328 650 061 046 864 900 749 719,463 MR2A Monthly Report NO. 2A Sheet 1 IDAHO Owest Corporation Changes In Telephone Plant Accounts Period: December 2002 ____m______---- This Year To Date -------__----00 Total At Plant Added Plant Retired Net Increase End of Period 12111-Land 1,407 310 22112-MotorVehicles 333 227 991 534 658 307-814 01032113-Aircraft 4 2114 - Special Purpose Vehicles 744 49,744-881 5 2115 - Garage Work Equipment 997 997-303 218 6 2116 - Other Work Equipment 246 110 284 771 662-120,866 7 Total Vehicles & Work Equipment 579 336 370 047 790 710-318 975 8 2121 - Buildings 803 866 343 096 1,460 770 286 267 9 2122 - Furniture 13,632 632-181 10 2123 - Office Equipment 384 384-606,232 11 2123 - Company Communication Equipment 050 265,416 254 366-276 219 12 Total Furniture & Office Equipment 050 312,432 301 382-907 631 132124 - General Purpose Computers 226-409 533 451 759-035 663 14 2211 - Analog Switching 152212 - Digital Switching 18,483 905 374 853 109 052 202,408 803 16 720C GAAP AFUDC 172215 - Step-by-Step Switching 18 2215 - Crossbar Switching 19 2220 - Operator Systems 384 20 2231 - Radio Systems 903 174 204 124 302-221 808 21 2232 - Circuit DDS 765-097-331 125 610 22 2232 - Circuit Digital 018,431 685 385 333,046 258 072,487 23 2232 - Circuit Analog 920 490 418 468,498-032,452 24 Total Central Office Equipment 35,529 394 675 764 853 630 479 868 544 25 2311 - Station Apparatus 253 26 2321 - Customer Premises Wiring 27 2341 - Large PBX 28 2351 - Public Telephone Terminal Equipment 787 902 116-065 599 29 2362 - Other Terminal Equipment 477 323 591 442 732 912 585 30 Total Other Terminal Equipment 480 110 131,493 348 616 978,437 31 2411 - Poles 655 30,688 967 878 146 32 2421 - Aerial Cable - Metallic 114,468 206 902 907 566 777 580 33 2421 - Aerial Cable - Non-Metallic 142 699 142 699 711 313 34 2422 - Underground Cable - Metallic 511 125 207 1,475 918 57,424 115 35 2422 - Underground Cable - Non-Metallic 645 258 128 342 516 915 538 309 36 2423 - Buried Cable - Metallic 901 922 399 642 502 279 331 955 586 37 730C - GAAP AFUDC 38 2423 - Buried Cable - Non-Metallic 843 289 122 838 167 745 249 39 2424 - Submarine Cable - Metallic 620 40 2424 - Submarine Cable - Non-Metallic 41 2426 - Intrabuilding Cable - Metallic 235 547 377 227 170 319,933 42 2426 - Intrabuilding Cable - Non-Metallic 808 359 53,449 345,891 43 2431 - Aerial Cable 953 979 974 579 504 44 2441 - Conduit 413 596 897 412 699 45,485 789 45 Total Outside Plant 005 319 817 516 187 803 537 772 035 46 Total Owned Property, Plant, & Equipment 366 849 059 881 306 968 099 574 861 MR2A Monthly Report NO. 2A Sheet 2 IDAHO Qwest Corporation Changes In Telephone Plant Accounts Period: December 2002 "__--m______-- This Year To Date -----------...-Total At Plant Added Plant Retired Net Increase End of Period 47 2681 - Capital Leases - Buildings 5,449 185 48 2681 - Capital Leases - Vehicles 49 2681 - Capital Leases - Computers 50 2681 - Capital Leases - Software 023 075 023 075-901 071 51 2681 - Capital Leases - Other 52 Total Capital Leases 023 075 023 075-350,256 53 2682 - Leaseholds - Buildings 111 098 111 098 6,471 287 54 2682 - Leaseholds - Computers 267 258 267 258- 55 2682 - Leaseholds - Towers 56 2682 - Leaseholds - Radio 57 2682 - Leaseholds - Others 58 Total Leasehold Improvements 111 098 267 258 156,160-6,471 287 59 2690 - Intangibles - Organization Fees 60 2690 - Intangibles - Franchises 61 2690 - Intangibles - Patents 62 2690 - Intangibles - Trademarks 63 2690 - Intangibles - Software 307 707 15,307 707 232 229 64 2690 - Intangibles - Spectrum Rights 700 700 090 65 2690 - Intangibles. Other 66 Total Intangibles 308,407 308,407 241 319 67 Total Leases, Leaseholds, & Intangibles 15,419 505 290,333 129,172 062 862 68 Total Expenditures 70,786 354 350 213 52,436 141 173 637 724 69 2002 - Held for Future Use 70 2003. Under Construction - Short Term 891 825-891 825-854,448 71 2004 - Under Construction - Long Term 193,078-193 078-62,483 72 2005 - Telephone Plant Adjustments 73 Telecommunication Plant 701,451 350 213 351 238 180 554 655 74 2006 - Non-Operating Plant 901 901 20,748- 75 2007 . Goodwill 76 Total Telecommunication Plant 772 352 350 213 34,422 139 180 533 906 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, Excl 5280.4 , . 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 (6540.4) 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&.7410,7420 7450. State & Local (7210.3&4,7230.7250.2,. 7410.7430 7450.5&. 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 2002 This Year Inc Over Same To Date Pd Last Year 181 713 640 977,086- 115 219 601 300 281 628 305 148 910- 039,670 861 842- 641 915 910 784 343 243 130 223,227 884 276 4,492,502 2,438 625 162 094 272,230 308 385 478 104 267 898 433 384 546,418- 213 731 1i37 976- 379,453-313 646- 940 149 877- 322 689 137 594 335 163-442,598- 268 571 817 959 100,443 072,623 979 121 614,483 428,750 232 002 084,877 819 101- 081 055 220,672- 846 805 671 688 075 061 383,862- 495 669 905 463- 937 239 946,495- 786 972 104.182 681,929 001 269 002,252 326 115 317- 247,129 772 541 245,517 952 913 298 725,177 690 070- 810 887 383,155 719 753 17,286,094 194 538 37,359 319- 972.128 104 241- 884 565 24,337 845 337 748 22,000 098 221 122 476 200- 507 159 983 358- MR3A Supplement A to Monthly Report NO. Sheet 1 IDAHO Period: December 2002 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)530 990 2,444 573 Interest Expense - Captial Lease (7520)760,499 256 219- Amortization of Debt Issuance Expense (7530)375,122 942 Other - Advances - Affiliates (7540.11)778 16,510 - Other Affiliates (7540.19)909 680- - Institutions (7540.21)76,327 870 839- - Banks (7540.22)116 935 116,685 Reseller (7540.23) - Miscellaneous (7540.29)673-137 818- Total Other (7540)144 276 878 142- Total Interest Expense 810,887 383 155 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- Total Other Operating (Income) and Expense 317- Nonoperating Income and Expense Accounts Dividend Income (7310)372 843 949 587 Interest Income (7320)998 146-409 849- Income from sinking and Other Funds (7330) Allow. for Funds Used During Construction (7340)617 778-680 810 Gains/Losses from Dispositions of Property (7350) Other (7360)373,627-041 006- Special Charges (7370)336 066 106,428 Other Taxes (7440)395 124 Total Nonoperating Income and Expense 719 753 286 094 Income Taxes - Federal Operating FIT (7220)240 031 862 303 Prov for Deferred Oper FIT-Originating (7250.057 126-848 360- Income Tax Allocation Adjustment (7250.71) Operating Investment Tax Credit-Net (7210.607 776-650 Total Normalized Operating FIT 575 129 960,407- Nonoperating FIT (7420)400,463 3,443 Prov for Def Nonoper. FIT-Originating (7450.3,464-147 277- Nonoperating Investment Tax Credit-Net (7410) Total Normalized Nonoperating FIT 396 999 143 834- Total Federal Income Tax 972 128 104 241- MR3A IDAHO Supplement A to Monthly Report NO. Sheet 2 Qwest Corporation Details of Certain Accounts Included on Monthly Report No. Period: December 2002 This Year Inc Over Same To Date Pd Last Year Income Taxes - State and Local Operating SIT (7230)346,429 669 752 SIT Provisioning Deferred (7250.844 941 1,451 817- Prov for Deferred Oper SIT-Reversing (7250.4 Income Tax Allocation Adjustment (7250.72) State Invest Tax Cr (7210.598 973 678 081 Operating InvestmentTax Credit-Net (7210.3 &. Total Normalized Operating SIT 790,343 896,016 Nonoperating SIT Credit (7410. Nonoperating SIT (7430)955 121,406- Prov for Def Nonoper. SIT-Income (7450.266 446 512 Prov for Def Nonoper. SIT-Originating (7450. Prov for Def Nonoper. SIT-Reversing (7450.4 Total normalized Nonoperating SIT 221 325,106 Total State and Local Income Taxes 884 565 221 122 Jurisdictional Differences and Nonregulated Income Accounts Income Effect of Juris Ratemarking Diff-Net (7910)337,748 507 159 Nonregulated Net Income (7990) Total (7900)337 748 507 159 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 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 Excl A.. 10 Total Miscellaneous 11 Total Operating Revenues Monthly Report NO. Sheet 1 Period: December 2002 This Year Incr Over Same To Date Pd Last Year 134 995 262 187,455- 2,493-715- 134 992 769 188,170- 77- 18,090 575- 702 691 212,735 181 713 640 977 086- 266 281 249,476 19,291 570 263 162- 661 749 313 968 628 305 148 910- 131 847 905 151 371 115 219 601 300 281 628 305 148 910- 131 847 905 151 371 824 513 803,653- 106 153 43- 108 211 728- 214 363 771- 663 133- 131 265- 794 397- 21- 039 670 861 842- 255,867 182 052- 783,803 679,789- 039 670 861 842- 115,475,467 118,229 203 125,748 805 786- 318,601 215 687 557- 601 870 114- 260 627-262 157 984 018 486 087 139 116 094 028 338,459 508 056 450 114- 919 279 613 348- 283 859 724- 507 294 060 734- 641 915 910 784 343 243 130 223 227 MR5 Monthly Report NO. IDAHO Sheet 1 Qwest Corporation Period: December 200;! Operating Expenses Maintenance This Year Incr Over Same Plant Specific Operations Expense To Date Pd Last Year Network Support Expense Motor Vehicle Expense (6112)346 066 155 882 Aircraft Expense (6113)875 875 Special Purpose Vehicle Expense (6114)230 392 Garage Work Equipment Expense (6115)753 166- Other Work Equipment Expense (6116)838 217- Total Network Support Expenses (6110)378 762 139 767 General Support Expense Land and Building Expenses (6121)920 369 155 691- Furniture and Artworks Expense (6122)54,406 19,168- Office Equipment Expense (6123)325 313 971- General Purpose Computers Expense (6124)6,453 823 151 527- Total General Support Expense (6120)753 911 363,357- Central Office Switching Expense Analog Electronic Expense (6211)521 774- Digital Electronic Expense (6212)208,840 663,439 Electro-Mechanical Expense (6215)860- Total Central Off Switching Expense (6210)208 840 140 806 Operator Systems Expense (6220)263 Central Office Transmission Expense Radio Systems Expense (6231)010 917 Circuit Equipment Expense (6232)107 918 223,029- Total Central Office Trans Expense (6230)152 929 212 112- Info OriginationlTermination Expense Station apparatus Expense (6311)131 796 663 Large Private Branch Exchange Expense (6341)344 600 378 Public Tele Terminal Equipment Expense (6351)288 178 224 688- Other Terminal Equipment Expense (6362)005 750 212 759- Total Info OriglTermination Expense (6310)770 323 404,406- Cable and Wire Facilities Expenses Poles Expense (6411)814 554 736,299 Aerial Cable Expense (6421)154,457 209,779- Underground Cable Expense (6522)771 618 95,942- Buried Cable Expense (6423)078 158 870- Submarine Cable Expense (6424) Intrabuilding Network Cable Expense (6426)279 128 857- Total Cable and Wire Fac Expense (6410)097 915 360 851 Aerial Wire Expense (6431)96,424 800 Conduit System Expense (6441)351 510- Total Plant Specific Oper Expense 560 719 343 162- Plant Non-Specific Oper Expense Power Expense (6531)511 701 330 398 Testing Expense (6533)811 857 505,266 Total Maintenance 884 276 4,492 502 MR5 Monthly Report NO. IDAHO Sheet 2 Qwest Corporation Period: December 2002 Operating Expenses This Year Incr Over Same To Date Pd Last Year Engineering (6535)2,438,625 162 094 Network Operations (6534)272 230 308 385 Network Administration (6532)478 104 267 898 Access Interstate (6540. Intrastate (6540.433,384 546,418- Intrastate Wireless Wholesale (6540.213,731 167 97f,)- Interstate Competitive Local Exch Carriers (6540.4) Intrastate Competitive Local Exch Carriers (6540.379 453-313 646- Inter Competive Local Exch (6540.61) Intra Competive Local Exch (6540.62)940 149 79,877- AC EX CLEC ILEC (6540.63) Universal Service Fund Contribution (6540.322 689 137 594 Total Access Expense (6540)530 500 970,322- Other Prop Held for Future Telecomm Use Exp (6511) Provisioning Exp & Nonregulated (6512 5280.4)335 163-442 598- Total Plant Non-specific Oper Expense 707 852 161 121 Total Cost of Services and Products 66,268 571 817 959 Selling, General & Administrative Customer Operations Marketing Product Management Expense (6611)879,460 361 006 Sales Expense (6612)9,448 251 3,705 888 Product Advertising Expense (6613)825 367 607 664- Total Marketing Expense (6610)18,153 079 4,459 230 Sevices Call Completion Services Expense (6621)435 862 150,693- Number Services Expense (6622)823,085 331 026- Customer Services Expense (6623)23,688,417 111 Total Services Expense (6620)947 364 386 608- Total Customer Operations 100,443 072 623 Corporate Operations Executive Expense (6711)476 292 286 Planning Expense (6712)231 240- Legal Expense (6725)2,450 598 578,437 Total Executive, Planning & Legal 979 121 614,483 Accounting and Finance Expense (6721)2,428 750 232 002 External Relations Expense (6722)084 877 819 101- Human ResourcesExpense (6723)081 055 220 672- Information Management Expense (6724)13,846 805 671 688 Other Other Procurement Expense (6726)389 553 92,589- Research and Development Expense (6727)693 061- Other General and Admin Exp (6728 8747)682 814 282 212- Provision for Uncoil Notes Rec (6790) Total Other 075 061 383,862- Total Corporate Operations Expense 26,495 669 905,463- Property Taxes (7240.937 239 946,495- Other Operating Taxes (7240.786 972 104 182 Total Property & Other Operating Taxes (7240)724 211 842 314- MR5 Monthly Report NO. IDAHO Sheet 3 Qwest Corporation Period: December 2002 Operating Expenses This Year Incr Over Same Selling, General & Administrative (Cont'd)To Date Pd Last Year Uncollectible Rev - Telecommunications Interstate - End User (5301.618,474 3,492 Intrastate - End User (5301.048 341 899 187 Equal Access/Net Rev (5301. Interstate - Carrier Access (5301.4)340 839 769,342 Intrastate - Carrier Access (5301.802 43,175- Video Dialtone Service (5301. Carrier Access Services (5301.137 347- Non-Regulated (5301.646 036 367 329 Tot Uncoil Revenue - Telecomm (5301)666 627 991 828 Uncollectible Revenue - Other (5302)302 9,441 Nonregulated Uncollectible (5280. Total Uncollectible Revenue 681 929 001 269 Total Selling, General & Administrative 002 252 326 115 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)317- Total Oth Oper Income and Expenses (7100)317- Depreciation & Amortization Expense Depr Exp - Telecomm Plant in Service (6561)79,658 905 996,384 Depr Exp - Prop Held for Future Use (6562) Amortization Exp - Tangible (6563)390,644 660,450- Amortization Exp - Intangible (6564)030 661 4,436 607 Amortization Exp - Other (6565)166,920 Total Depr & Amortization Expense (6560)94,247 129 772 541 Total Operating Expenses 245 517 952 913 298 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 PE R I O D : J A N 2 0 0 2 t o D E e 2 0 0 2 5 A n a l y s i s of En 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 i t 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 R e t i r e m e n t s w I I R e t i r e m e n t s W l o l ( I A c t u a l E n d i n g JE C 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 Ot h e r C r e d i t s Tr a f f i c Tr a f f i c Co s t o f R e m o v a l O t h e r C h 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 06 9 86 7 99 2 96 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 e r W o r k E q u i p m e n t 28 8 19 0 37 9 10 7 01 5 0 21 2 1 Bu i l d i n g s 12 , 52 7 16 8 34 3 57 5 72 3 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 e n t 63 9 61 9 01 9 0 21 2 3 . Co 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 e n t 33 6 14 0 26 5 21 1 02 0 0 21 2 4 Ge n e r a i P u r p o s e C o m p u t e r s 74 2 02 9 41 0 10 1 11 , 26 0 02 1 0 La n d a n d S u p p o r t A s s e t s 62 5 4, 4 2 3 2, 4 3 6 70 4 91 5 02 2 0 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 02 3 0 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 3 27 8 13 4 37 5 88 5 37 8 85 , 99 7 02 6 0 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 02 7 0 Ce n t r a i O f f i c e - S w i t c h i n g 22 2 27 8 13 4 37 5 88 5 37 8 85 , 99 7 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 Ra d i o F a c i l i t i e s 87 4 61 3 17 4 31 9 03 1 0 22 3 2 Cir c u i t E q u i p m e n t 16 7 07 7 83 4 12 7 85 5 43 7 18 7 51 6 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 17 1 , 95 1 44 7 30 1 85 8 43 7 19 2 83 5 03 3 0 23 1 1 St a t i o n A p p a r a t u s 33 7 33 6 03 4 0 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 03 5 0 23 4 1 La r g e P u b l i c B r a n c h E x c h a n g e 03 6 0 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 03 6 11 0 10 7 03 7 0 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 14 0 61 1 74 1 03 8 0 In f o r m a t i o n O r i g l n a t i o n l T e r m i n a t i o n 83 9 72 1 13 2 51 2 03 9 0 24 1 1 Po l e s 85 0 58 4 35 7 04 0 0 24 2 1 Ae r i a l C a b l e 91 0 61 0 20 7 38 5 99 2 04 1 0 24 2 2 Un d e r g r o u n d C a b l e 75 7 23 2 16 4 79 1 04 2 0 24 2 3 Bu r l e d C a b l e 21 3 , 4 8 1 20 0 28 8 40 5 42 9 23 6 18 9 04 3 0 24 2 4 Su b m a r i n e C a b l e 04 4 0 24 2 5 De e p S e a C a b l e 04 5 0 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 4, 4 3 6 35 5 77 5 04 6 0 24 3 1 Ae r i a l W i r e 74 2 11 7 87 9 04 7 0 24 4 1 Co n d u i t S y s t e m s 97 4 85 9 83 5 04 8 0 Ca b l e a n d W i r e F a c i l i t i e s 29 9 15 8 95 7 40 2 81 9 94 0 32 8 82 6 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 n 58 8 , 80 2 79 , 82 6 36 7 44 2 06 3 75 4 52 8 64 9 , 09 2 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 PE R I O D : J a n 20 0 2 To D e c 20 0 2 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 - 65 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 . Ti t l e o f R e 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 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 . 4 % 86 7 96 1 91 % 22 1 1 4 S P E C P U R P O S E V E H I C L E S 12 . 28 . 19 % 3 2 1 1 5 GA R A G E W O R K E Q U I P 13 . 4 10 . 4 % 34 0 24 % 4 2 1 1 6 0 T H E R W O R K E Q U I P 11 . 36 . 5.4 % 26 6 11 0 07 4 07 % 5 2 1 2 1 B U I L D I N G S 24 . 32 . 16 8 40 , 26 0 90 % 6 2 1 2 2 F U R N I T U R E 15 . 45 . 4 5 % 7 2 1 2 3 . 1 O F F I C E E Q U I P M E N T 39 . 12 . 62 4 24 % 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 41 8 33 . 4 9 % 9 2 1 2 4 G E N PU R P O S E C M P T R 48 . 2 % 15 . 89 3 13 6 27 3 16 . 53 % 22 1 1 A N A L O G S W E Q U I P 1. 9 71 . 15 . 00 % 22 1 2 D I G I T A L S W E Q U I P 32 . 27 8 20 1 , 55 8 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 . 8. 4 % 61 3 29 8 8.4 0 % 22 3 2 C I R C U I T D D S 1.0 % 34 . 14 . 15 7 11 5 14 . 08 % 22 3 2 C I R C U I T D I G I T A L 38 . 10 , 67 7 25 4 , 71 9 10 . 87 % 22 3 2 C I R C U I T A N A L O G 66 . 12 . 38 6 00 % 23 5 1 P U B T E L T E R M E Q U I P 86 . 11 0 10 6 54 % 23 6 2 O T H E R T E R M E Q U I P 50 . 10 . 61 1 68 8 14 % 24 1 1 P O L E L I N E S 10 . 10 9 . 84 . 12 . 58 4 86 5 12 . 00 % 24 2 1 A E R I A L C A B L E M E T 25 . 58 . 56 3 32 4 70 % 24 2 1 A E R I A L C A B L E N O N M E T 14 . 25 . 59 8 86 % 24 2 2 U N D G R D C A B L E M E T 12 . 20 . 49 . 4 % 16 8 57 1 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 . 06 4 33 8 80 % 24 2 3 B U R I E D C A B L E M E T 10 . 40 . 2 % 6. 4 % 84 3 32 9 , 35 6 33 % 24 2 3 B U R I E D C A B L E N O N M E T 16 . 20 . 35 7 14 4 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 8.4 1.0 % 55 . 34 1 19 4 51 % 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 . 31 6 4. 4 3 % 24 3 1 A E R I A L W I R E 12 3 . 11 7 . 21 . 11 7 54 4 21 . 51 % 24 4 1 C O N D U I T S Y S T E M S 43 . 23 . 1.9 % 85 9 23 6 1.9 0 % To t a l ( l i n e s 1 . . 32 ) 79 , 65 9 16 7 08 8 , 4 5 4 33 % MR2 TOTAL COMPANY Qwest Corporation Balance Sheet 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 Inventories (1220) Prepd Exp & Oth Curr Asset (1290,1300 20,50) 7 Total Current Assets 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-Ace Depree. & Amort (31-3300 3410 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 2002 At End Increase Over Of Month Dec. 31 Last 253 682 958 99,468 691 583 203 834 316,683,801- 493 690 163 944 358 076 893 997 224 739,443- 152 054 527 336 521- 206,642 018 765 996- 689 273 500 156 373 268- 43,130 777 030 1,427 147,458 258 333 644 429 537 173- 745 906- 057 320 830 506- 43,413,167 995 972 033 872 23,982 186,709 451 594 758 19,430,981 286 1,479 560 886- 1,485 586 865-948,479,427- 349 053 679 015- 145 832 674 450 236 78,241 533 357 548- 862 918 065 559,494- 589 067 -244 940- 444 834 607-055 870 188- 675,420 179 691 804 342- MR2 TOTAL COMPANY Qwest Corporation Balance Sheet Liabilities Current Short Term Borrowings (4020) Accounts Payable and Accrued Liabilities Accounts Payable - Trade (4010.23) Accounts Payable - Other (4010.29) Employee Compensation (4010.24,4120.4 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 (4210,20,30,40,50,70) 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 Earnings29 Total Liabilities and Capital Monthly Report NO. Sheet 2 Period: December 2002 At End Increase Over Of Month Dec. 31 Last 011 703 889- 983 007 571 149,954 932- 090 961 56,438 394- 167 884 291 337 227 326 010,462 999,105- 010,822 839 095,424 865- 370,965 046,120- 531 932 653 561 213- 119 119 743 1,412 087,402- 117 139,510-979 747- 162,428,464 682 081 930 164,408 697 771 689,108- 096,487 340 327 784 224 996 797 236 15,733,630 190 641 996 18,612 841- 386 179 035 241 396 225 854 509-708 745- 596 251 098 563,592,493 760 659 795 208,096 616- 347 719 095 818 730 138,776 894 315 13,497,475 3,440 853 025-518,162 707- 914 760,384 1,483 707 727- 675,420 179 691 804 342- MR2A Monthly Report NO. 2A Sheet 1 TOTAL COMPANY Qwest Corporation Changes In Telephone Plant Accounts Period: December 2002 ----------------- This Year To Date -m_mm_...Total At Plant Added Plant Retired Net Increase End of Period 12111-Land 610,354 610 354 101 869 124 22112 - Motor Vehicles 776,773 154 746 377 973-408 882 887 3 2113 - Aircraft 875,494 4 2114 - Special Purpose Vehicles 400 744 344-050 547 5 2115 - Garage Work Equipment 284 154 787 147 504-579 949 62116 - Other Work Equipment 15,963,752 107 709 143 956-251 692 341 7 Total Vehicles & Work Equipment 28,748 209 56,466 986 718,777-673 081 218 8 2121 - Buildings 543 848 372 873 170 974 685,462,403 9 2122 - Furniture 710 072 710 072-230,488 102123 Office Equipment 142,422 744 236 601 814-954 730 11 2123 - Company Communication Equipment 469 300 918 556 20,449 256-17,490 568 12 Total Furniture & Office Equipment 611 722 372 864 23,761 142-675 786 132124 - General Purpose Computers 324,495 849 552 525,057-550 006 160 14 2211 - Analog Switching 131 275 12,Q78-143 352 276 121 152212 - Digital Switching 362,425 614 136 678,493 225 747 121 551 217 060 16 720C GAAP AFUDC 172215 - Step-by-Step Switching 182215 - Crossbar Switching 19 2220 - Operator Systems 112 503-275 508 388 011-177,480 20 2231 - Radio Systems 306 879 598,574 291 696-246 385 371 21 2232 - Circuit DDS 841 694 385,232 543 538-223 622 22 2232 - Circuit Digital 546 711 514 196,148 341 350 563 173 727 585 086 23 2232 - Circuit Analog 890 796 652 550 18,761 755-440 860 928 24 Total Central Office Equipment 916 195 268 379,726 621 536,468 647 058 725 669 25 2311 - Station Apparatus 114 989 114 989 964 108 26 2321 - Customer Premises Wiring 27 2341 - Large PBX 128 28 2351 - Public Telephone Terminal Equipment 225 165 520,430 295 266-126,799,092 29 2362 - Other Terminal Equipment 371 171 698 223 672 948 382 990 048 30 Total Other Terminal Equipment 711 324 218 654 11,492 671 545 778 376 31 2411- Poles 287,458 969 097 318 360 253,005,475 32 2421 - Aerial Cable - Metallic 541 500 993 930 547 570 248 972 231 33 2421 - Aerial Cable - Non-Metallic 871 699 152,452 719 246 36,436 716 34 2422 - Underground Cable - Metallic 83,263,392 193 024 070,369 521 055 925 35 2422 - Underground Cable - Non-Metallic 552 389 825,305 727 084 787,448 202 36 2423 - Buried Cable - Metallic 368 144 882 1,409,572-369,554,454 353 800 054 37 730C - GAAP AFUDC 38 2423 - Buried Cable - Non-Metallic 570 539 618,472 23,952 067 670 551 524 39 2424 - Submarine Cable - Metallic 188 353 40 2424 - Submarine Cable - Non-Metallic 792 987 41 2426 - Intrabuilding Cable - Metallic 10,052 243 375 669 676 574 353 043,409 42 2426 - Intrabuilding Cable - Non-Metallic 980 293 362 942 931 584 270 43 2431 - Aerial Cable 555 395 312 986 242,409 646,473 44 2441 - Conduit 100 620 366 243 096 377 270 150 346 965 45 Total Outside Plant 703,440 156 311 822 667 128,334 17,447 872 583 46 Total Owned Property, Plant, & Equipment 730 185 377 622 319 373 107 866 004 137,471 318 MR2A TOTAL COMPANY 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 Qwest Corporation Changes In Telephone Plant Accounts Period: December 2002 __m___------_-- This Year To Date ---------------Total At Plant Added Plant Retired Net Increase End of Period 354 674 354 673-16,402 832 299 299- 981 194 300,441 319 247-109 821 147 399,378 147 399 378-163,419 670 647 992 647 992 13,406 838 629,186 173,054 792 157,425 606-236 339 162 879 551 879 551 172 736 145 717 848 717 848- 879 551 717 848 161 703 172 736 145 475 535 207 475 535,207 584 023,651 150 150 206 755 475 545 357 475 545 357 584 230,406 497 054 094 177 ,772 640 319 281,454 993 305 712 227 239,470 800 092 013 1,427 147,458 130 777 030 361 653,229-361 653 229-198 146,405 883 944-883 944-187 239 745 906-745 906- 794 956 391 800 092 013 994 864 378 43,389 110 675 830 506-830 506-057 320 772 125,885 800 092 013 972 033 872 43,413,167 995 MR3 Monthly Report NO. Sheet 1 TOTAL COMPANY Owest Corporation Income Statement Period: December 2002 This Year Inc Over Same To Date Pd Last Year 540 712 249 292 101 045- 551 513 721 70,892,093 639 709 909 72,429 107- 174 586 321 233 391- 504 636,498 139 327 252- 11,411 158 698 522 198 702- REVENUE Local Service (5001-5069) Access Service Interstate (5081-5083) Intrastate (5084) Long Distance Service (5100-5160) Miscellaneous (5230-5280, Exe! 5280.4, . 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 (6540.4) 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 796 897 720 267 169 558- 94,023,778 909 079 451 009 171 116 889 559 798,993 250,595 322,940-662,444- 748 820 871 295- 511 156 11,419 066- 880- 903,268-975 997 31,924,312 501 892- 120 000-478 597- 156 562,408 940,291- 797 034-730 346- 593 333 116 198,753,141- 510 355 204 131 077,004 113 796,467 813 542 283,486 086 369- 574 154 045 160- 859,458 10,517,912- 556 919 949 385 333 208 574,227 117 354,888- 067 007 740 132 805,454- 276 720,768 939,483 135 963,466 8,464 833 259 187,644 825 669 249 234 821 103 501 535 233,328 215 367 539 188 215 631,671 210 340,452 120,471 281 200 818 245 642 669 982- 568,001,124 658 781 991 754 806 716 643 216 641,062 316 1,407 971 979- Income Taxes Federal (7210.7220,7250.1&.7410 7420 7450. State & Local (7210.3&4 7230.7250..4,. 72,.73,.7410.7430,7450.3,.5&. Income Before Juris Diff & Extraord Items Jurisd. Diff & Nonreg Net Income (7910,7990) Extraordinary Items (7600) Net Income 157 578- 254,443,357- 237 576- 168 205 781- 627 011 152 131 371,045- 386 606 59,335,443- 472 470 94,807 912- - Denotes Negative Amount MR3A Supplement A to Monthly Report NO. Sheet 1 TOTAL COMPANY Period: December 2002 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)537 899 521 205 042 Interest Expense - Captial Lease (7520)807 713 922 279- Amortization of Debt Issuance Expense (7530)291 604 019 571 Other - Advances - Affiliates (7540.11)291 626 208 - Other Affiliates (7540.19)521 540 264,404- . Institutions (7540.21)861 899 849 955- - Banks (7540.22)384 500 374 839 Reseller (7540.23) - Miscellaneous (7540.29)057 279-959 240- Total Other (7540)002 286 643 553- Total Interest Expense 568 001 124 48,658 781 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)050- Other (7160)233,328 101 265 Total Other Operating (Income) and Expense 233,328 215 Nonoperating Income and Expense Accounts Dividend Income (7310)138 839 255 773 324 746 Interest Income (7320)658 208-758 633- Income from sinking and Other Funds (7330) Allow. for Funds Used During Construction (7340)357 793-672,484 Gains/Losses from Dispositions of Property (7350)248,470 998 707 Other (7360)116 765 375-135 370 244- Special Charges (7370)032 875 16,678 953 Other Taxes (7440)415 582 204 Total Nonoperating Income and Expense 991 754 806 716 643,216 Income Taxes - Federal Operating FIT (7220)620 022 794 251 377,419 Prov for Deferred Oper FIT-Originating (7250.844 237 375 094 119- Income Tax Allocation Adjustment (7250.71) Operating Investment Tax Credit-Net (7210.537 364-476,470 Total Normalized Operating FIT 612 329 667 123 240 230- Nonoperating FIT (7420)809,418 686,880- Prov for Def Nonoper. FIT-Originating (7450.872 067 782 340 Nonoperating Investment Tax Credit-Net (7410)773 725 Total Normalized Nonoperating FIT 681,485 130,815- Total Federal Income Tax 627 011 152 131 371 045- MR3A TOTAL COMPANY Supplement A to Monthly Report NO. Sheet 2 Qwest Corporation Details of Certain Accounts Included on Monthly Report No. This Year To Date Period: December 2002 Inc Over Same Pd Last Year 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) Total Normalized Operating SIT Nonoperating SIT Credit (7410. Nonoperating SIT (7430) Prov for Def Nonoper. SIT-Income (7450. Prov for Def Nonoper. SIT-Originating (7450. Prov for Def Nonoper. SIT-Reversing (7450.4 Total normalized Nonoperating SIT 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) 221 970 390,649 924 523 537 142 1,468,481 380 984 849,465 73,386,606 35,472,470 35,472,470 942 508 085 035- 500 682 641 845- 379,533- 136 199- 515 732- 157 578- 86,237 576- 237 576- MR4 TOTAL COMPANY 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 Excl .4 10 Total Miscellaneous 11 Total Operating Revenues Monthly Report NO. Sheet 1 Period: December 2002 Qwest Corporation Summary Of Operating Revenues This Year To Date Incr Over Same Pd Last Year 969 376 094 62,245 514 23,246 294 329 057- 208 376 533 031 644,854 13,436 610 234 508,443 383 341 293 120 148- 10,654- 257 999 501 540 712 249 292,101,045- 324,177,619 149 815- 587 773 912 38,495 998- 639 562 189 127 537,906 639 709 909 72,429 107- 191 223 630 537,014- 551 513 721 892,093 639 709 909 72,429 107- 191,223 630 537 014- 165 942 303 84,557,379- 768 319 69,568- 4,416 916 525 575- 185 235 595,143- 169 6,494- 624 163- 429 991 192- 458 784 849- 21- 174,586,321 233 391- 163 283 744 174- 165,423 038 85,489,217- 174 586 321 233 391- 560 677 004 147,919 345 845 196 450 019 369- 906 522,199 382 871,450- 687,469 328 655- 444 968 860 909 318- 506 848 40,705 235 801,405-338 257- 228 615 159 207 216 535 036 396- 163 848 979 552,436- 229 848 16,462,310- 551 750,749 564,322- 504,636,498 139,327 252- 11,411 158 698 522 198,702- MR5 Monthly Report NO. Sheet 1 TOTAL COMPANY Qwest Corporation Period: December 2002 Operating Expenses Maintenance This Year Incr Over Same Plant Specific Operations Expense To Date Pd Last Year Network Support Expense Motor Vehicle Expense (6112)225 194 572 706 Aircraft Expense (6113)923- Special Purpose Vehicle Expense (6114)753 754 Garage Work Equipment Expense (6115)404 817 100,496- Other Work Equipment Expense (6116)132 761 608 528- Total Network Support Expenses (6110)831 525 873,512 General Support Expense land and Building Expenses (6121)232 040 994 340 684- Furniture and Artworks Expense (6122)193 841 294 916- Office Equipment Expense (6123)531 573 652 679- General Purpose Computers Expense (6124)231 559,466 774 731- Total General Support Expense (6120)487 325,874 063 009- Central Office Switching Expense Analog Electronic Expense (6211)298 280- Digital Electronic Expense (6212)167 417 844 394 586 Electro-Mechanical Expense (6215)149 029- Total Central Off Switching Expense (6210)167 417 844 723- Operator Systems Expense (6220)694 698,201- Central Office Transmission Expense Radio Systems Expense (6231)943 864 151 964- Circuit Equipment Expense (6232)110 303 281 869 259- Total Central Office Trans Expense (6230)113,247 145 021 224- Info OriginationlTermination Expense Station apparatus Expense (6311)319 912 312 230- large Private Branch Exchange Expense (6341)724 390 373,581 Public Tele Terminal Equipment Expense (6351)853 717 321 235- Other Terminal Equipment Expense (6362)110 352 053 13,471 354- Total Info OriglTermination Expense (6310)148 250 071 731 238- Cable and Wire Facilities Expenses Poles Expense (6411)367 844 512 699 Aerial Cable Expense (6421)111,400 727 121 254- Underground Cable Expense (6522)796,442 006,355- Buried Cable Expense (6423)460,820 574 067 887- Submarine Cable Expense (6424)862 622- Intrabuilding Network Cable Expense (6426)826 308 248 836- Total Cable and Wire Fac Expense (6410)652 212,757 135,959 255- Aerial Wire Expense (6431)211,498 620 780 Conduit System Expense (6441)098,497 380 981- Total Plant Specific Oper Expense 599 621 906 260,412 339- Plant Non-Specific Oper Expense Power Expense (6531)351 727 534 832 Testing Expense (6533)135 924 087 292 051- Total Maintenance 796 897 720 267 169,558- MR5 Monthly Report NO. Sheet 2 TOTAL COMPANY Qwest Corporation Period: December 2002 Operating Expenses This Year Incr Over Same To Date Pd Last Year Engineering (6535)023 778 909 079 Network Operations (6534)451 009 171 116 889 559 Network Administration (6532)798 993 250 595 Access Interstate (6540.322 940-662,444- Intrastate (6540.748 820 871 295- Intrastate Wireless Wholesale (6540.511 156 11,419 066- Interstate Competitive Local Exch Carriers (6540.4)880- Intrastate Competitive Local Exch Carriers (6540.903 268-975 997 Inter Competive Local Exch (6540.61) Intra Competive Local Exch (6540.62)924 312 501 892- AC EX CLEC ILEC (6540.63)120 000-478,597- Universal Service Fund Contribution (6540.156 562,408 940 291- Total Access Expense (6540)230,400,488 902,469- Other Prop Held for Future Telecomm Use Exp (6511) Provisioning Exp & Nonregulated (6512 5280.4)797 034-730,346- Total Plant Non-specific Oper Expense 993 711 210 659,198 Total Cost of Services and Products 593 333 116 198,753 141- Selling, General & Administrative Customer Operations Marketing Product Management Expense (6611)241 075,610 536 546 Sales Expense (6612)303 932 364 106 777 884 Product Advertising Expense (6613)150 976 179 272- Total Marketing Expense (6610)609 158 950 145 135 159 Sevices Call Completion Services Expense (6621)173 242 7,437 734- Number Services Expense (6622)941 324 008 943- Customer Services Expense (6623)819 081 688 388 522 Total Services Expense (6620)901 196,254 058 155- Total Customer Operations 510 355 204 131 077 004 Corporate Operations Executive Expense (6711)147 621 026 709 Planning Expense (6712)958,422 065 789- Legal Expense (6725)690,424 852 621 Total Executive, Planning & Legal 113 796,467 813,542 Accounting and Finance Expense (6721)283,486 086 369- External Relations Expense (6722)574 154 045 160- Human ResourcesExpense (6723)859,458 517 912- Information Management Expense (6724)556 919,949 385 333 Other Other Procurement Expense (6726)606,407 062 620- Research and Development Expense (6727)100 988 354 616- Other General and Admin Exp (6728 8747)193,866,832 112 937 652- Provision for Uncoil Notes Rec (6790) Total Other 208,574 227 117 354,888- Total Corporate Operations Expense 067 007,740 132 805,454- Property Taxes (7240.276 720 768 35,939,483 Other Operating Taxes (7240.135 963,466 8,464 833 Total Property & Other Operating Taxes (7240)412 684 234 44,404 316 MR5 Monthly Report NO. Sheet 3 TOTAL COMPANY Qwest Corporation Period: December 2002 Operating Expenses This Year Incr Over Same Selling, General & Administrative (Cont'To Date Pd Last Year Uncollectible Rev - Telecommunications Interstate - End User (5301.670 017 966 850 Intrastate - End User (5301.128 578,427 310,214- Equal Access/Net Rev (5301. Interstate - Carrier Access (5301.4)973,447 067 608 Intrastate - Carrier Access (5301.176 688-168,437- Video Dialtone Service (5301. Carrier Access Services (5301.4,417 297 752,499 Non-Regulated (5301.855,426 195,080 Tot Uncoil Revenue. Telecomm (5301)257 317 925 503 387 Uncollectible Revenue - Other (5302)869,718 677 717- Nonregulated Uncollectible (5280. Total Uncollectible Revenue 259 187 644 825 669 Total Selling, General & Administrative 249 234 821 103 501 535 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)050- Other Operating Gains and Losses (7160)233,328 101 265 Total Oth Oper Income and Expenses (7100)233,328 215 Depreciation & Amortization Expense Depr Exp - Telecomm Plant in Service (6561)930 021 005 136,880,564 Depr Exp - Prop Held for Future Use (6562) Amortization Exp - Tangible (6563)124 721 818 330 953- Amortization Exp - Intangible (6564)292 194 219 121 082 063 Amortization Exp - Other (6565)602 146 Total Depr & Amortization Expense (6560)367 539,188 215 631 671 Total Operating Expenses 210 340,452 120,471 281 ANNUAL REPORT FORM M QWEsT CORPORATION DENVER, COLORADO TO THE PUBLIC UTILITY COMMISSION OF IDAHO (NO. FOR THE YEAR ENDING DECEMBER 31 , 2002 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 UTILITY 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 43-02, 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. MR 4, TOTAL COMPANY Summary of Operating Revenues MR5, TOTAL COMPANY Operating Expenses MR2 IDAHO-PACIFIC Qwest Corporation Balance Sheet Assets Current 1 Cash and Short Term Investments (1130,40,50,60) Receivable Trade (1180 1181 1190.8720. Other (1200,1190.1210 8720. Total Receivable Inventories (1220) Prepd Exp & Oth Curr Asset (1290 1300 20,30,50) 7 Total Current Assets 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-Ace Depree. & Amort (31-3300 3410 35-3600)14 Total Telephone Plant Less Reserves Investments and Other Assets15 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 2002 At End Increase Over Of Month Dec. 31 Last 076,878 325 807- 659 555 257,453- 659 555 257,453- 23,473 295- 151-878- 747 755 674,433- 259 914 868 290 575 072 526 216 834 987 394 507 674 617 231 293 160 370 163 213 683 839 223 717 081 122 139- 156 930 282 748- 557 850 341 665- 42,465 975 147 115 MR2 IDAHO-PACIFIC Qwest Corporation Balance Sheet Liabilities Current Short Term Borrowings (4020) Accounts Payable and Accrued Liabilities Accounts Payable - Trade (4010.21,.23) Accounts Payable - Other (4010.28,.29) Employee Compensation (4010.24,4120.4 Advance Billing and Payments (4030) Dividend Payable (4010.4120. 7 Customers' Deposits (4040) Other (4010.31 ,.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 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' 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 Earnings29 Total Liabilities and Capital Monthly Report NO. Sheet 2 Period: December 2002 At End Of Month Increase Over Dec. 31 Last 415,407 206 900 020- 661,464 192 200 543- 887 600- 987 233- 874 832- 37,486 235,209 872 530 824 382 851 089 820 695 054 137- 520 112 520 112 465 975 217 717 577 347- 854- 905- 557 004- 339 816- 916 577- 845- 295 238- 887 509- 311- 439,608 534- 538 747- 833 984- 981 100 981 100 147 115 MR2A Monthly Report NO. 2A Sheet 1 IDAHO.PACIFIC Qwest Corporation Changes In Telephone Plant Accounts Period: December 2002 __m_.......---. This Year To Date m______------Total At Plant Added Plant Retired Net Increase End of Period 1 2111 - Land 70,861 2 2112 - Motor Vehicles 699 746 953 185,153 3 2113 - Aircraft 4 2114 - Special Purpose Vehicles 5 2115 - Garage Work Equipment 384 384- 6 2116 - Other Work Equipment 327 7 Total Vehicles & Work Equipment 699 130 569 199,480 8 2121 - Buildings 549 773 149,590 1,400 183 520 529 9 2122 - Furniture 568 10 2123 - Office Equipment 11 2123 - Company Communication Equipment 578 12 Total Furniture & Office Equipment 146 13 2124 - General Purpose Computers 660 660-276 14 2211 - Analog Switching 795 795 232 144 152212 - Digital Switching 110 920 144 066 776 096 939 16 720C GAAP AFUDC 17 2215 - Step-by-Step Switching 18 2215 - Crossbar Switching 192220 - Operator Systems 20 2231 - Radio Systems 606 296 21 2232 - Circuit DDS 815 204 611 193,196 22 2232 - Circuit Digital 972 787 713 964 074 115 002 23 2232 - Circuit Analog 887 170 717 591 128 24 Total Central Office Equipment 196 267 232 143 036 834 706 25 2311 - Station Apparatus 26 2321 - Customer Premises Wiring 27 2341 - Large PBX 28 2351 - Public Telephone Terminal Equipment 299,694 29 2362 - Other Terminal Equipment 778 577-355 500 006 30 Total Other Terminal Equipment 778 577-28,355 799,700 312411-Poles 259 898 362 773,310 32 2421 - Aerial Cable - Metallic 39,312 501 812 580 107 33 2421 - Aerial Cable - Non-Metallic 373 373 373 34 2422 - Underground Cable - Metallic 091 091 3,433 738 35 2422 - Underground Cable - Non-Metallic 937 937 347 934 36 2423 - Buried Cable - Metallic 561 188 136 539 052 615 759 37 730C - GAAP AFUDC 38 2423 - Buried Cable - Non-Metallic 302 302 124 160 39 2424 - Submarine Cable - Metallic 163,411 40 2424 - Submarine Cable - Non-Metallic 41 2426 - Intrabuilding Cable - Metallic 153 153 318 220 42 2426 - Intrabuilding Cable - Non-Metallic 849 849 073 43 2431 - Aerial Cable 149 149 136 300 44 2441 - Conduit 571 571 591,968 45 Total Outside Plant 721 185 534 684 651 102 354 46 Total Owned Property, Plant, & Equipment 532 703 261 568 271 134 545 051 MR2A IDAHO-PACIFIC 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 Qwest Corporation Changes In Telephone Plant Accounts Period: December 2002 _m______...-... This Year To Date --"".--._m-Total At Plant Added Plant Retired Net Increase End of Period 117 707 117 707 597 156 597 156 597 156 597 156 597 156 597 156 597 156 597 156 714 863 129 859 261 568 868 290 259 914 319 144-319 144-275,442- 845 360 845 360 850 515 656 075 261 568 394 507 834 987 656 075 261 568 394 507 834 987 MR3 IDAHO-PACIFIC Qwest Corporation Income Statement REVENUE Local Service (5001-5069) Access Service Interstate (5081-5083) Intrastate (5084) Long Distance Service (5100-5160) Miscellaneous (5230-5280, Excl 5280.4, . 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 (6540.4) 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&.7410 7420 7450. State & Local (7210.3&4 7230.7250.2,..4,.5,. 7410.7430 7450.5&. 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 2002 This Year To Date Inc Over Same Pd Last Year 513 231 701 075 954 240 153 058 391 636 886 089 898 254 523,411 424,452- 179 600- 170 625 604 747,129 101,426- 144 603 025 404,815 230 512 633 365- 934 079- 126 834- 901 367 262,490 13,978- 351-685 598 280 906 576 350 239 143 840 639 135,496 685- 59,573 118,553- 398 306- 178 973 374 095- 229 367 164,473- 807 648 665,474- 821,918-9,493 963- 601 228 436 869 302 650 931,450-742 320- 5,434 696 564 207- 101 526 230 621- 796 728 856 226 574,050 69,859- 399 857 749 758 822,820 11,176,327 773,425 946 516 27,913- 077 ,309 206 290 871,019 115 605- 345,417 547 790 797 627 MR3A Supplement A to Monthly Report NO. Sheet 1 IDAHO-PACIFIC Period: December 2002 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)561 551 333- Interest Expense - Captial Lease (7520)510 068- Amortization of Debt Issuance Expense (7530)743 192 Other - Advances - Affiliates (7540.11)435 993 - Other Affiliates (7540.19)777 205- - Institutions (7540.21)264 310- - Banks (7540.22)533 517 Reseller (7540.23) - Miscellaneous (7540.29)763-645- Total Other (7540)755-650- Total Interest Expense 574 050 859- 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) Total Other Operating (Income) and Expense Nonoperating Income and Expense Accounts Dividend Income (7310)696 870 094 683 Interest Income (7320)605-075- Income from sinking and Other Funds (7330) Allow. for Funds Used During Construction (7340)108 901-107 514- Gains/Losses from Dispositions of Property (7350) Other (7360)142 332-221 037- Special Charges (7370)825 700 Other Taxes (7440) Total Nonoperating Income and Expense 399 857 749 758 Income Taxes - Federal Operating FIT (7220)605 340 857 605 Prov for Deferred Oper FIT-Originating (7250.838,743-970,363- Income Tax Allocation Adjustment (7250.71) Operating Investment Tax Credit-Net (7210.044-1,785 Total Normalized Operating FIT 700 553 889 027 Nonoperating FIT (7420)994 362 Prov for Def Nonoper. FIT-Originating (7450.122-874- Nonoperating Investment Tax Credit-Net (7410) Total Normalized Nonoperating FIT 872 57,488 Total Federal Income Tax 773,425 946,516 MR3A IDAHO-PACIFIC Supplement A to Monthly Report NO. Sheet 2 Period: December 2002 Qwest Corporation Details of Certain Accounts Included on Monthly Report No. This Year To Date Inc Over Same Pd Last Year 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) Total Normalized Operating SIT Nonoperating SIT Credit (7410. Nonoperating SIT (7430) Prov for Def Nonoper. SIT-Income (7450. Prov for Def Nonoper. SIT-Originating (7450. Prov for Def Nonoper. SIT-Reversing (7450.4 Total normalized Nonoperating SIT Total State and Local Income Taxes 143,469 234 308- 193 913- 526 290,439- 895 138 018- 7,474- 886 22,412 115 605- 733 106- 169 024 Jurisdictional Differences and Nonregulated Income Accounts15 Income Effect of Juris Ratemarking Diff-Net (7910)16 Nonregulated Net Income (7990)17 Total (7900) 206,290 206 290 547 790 547 790 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-PACIFIC 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 ExcJ .4 10 Total Miscellaneous 11 Total Operating Revenues Monthly Report NO. Sheet 1 Period: December 2002 Qwest Corporation Summary Of Operating Revenues This Year To Date Incr Over Same Pd Last Year 564,378 364,122 564 378 364 122 375 461 948,471 336,492 513 231 701,075 862,067 226,566 681 170 75,472- 2,411 003 372 317 153 058 424,452- 107 298 959 954 240 523,411 153 058 424,452- 107,298 959 376 947 174 388- 7,415 314 862 515- 277 201- 404 412 10- 391 636 179,600- 197,441 101,757- 194 195 77,842- 391 636 179,600- 151 681 421,653 860,484 198,781 012 165 620,434 144,526 701- 052-156 278 102 274 712 787 399- 57,129 783 352 394- 802 033- 232 351 134- 346 920 125 942- 886 089 170 898,254 625 604 MR5 Monthly Report NO. Sheet 1 IDAHO-PACIFIC Qwest Corporation Period: December 2002 Operating Expenses Maintenance This Year Incr Over Same Plant Specific Operations Expense To Date Pd Last Year Network Support Expense Motor Vehicle Expense (6112)13,280 739 Aircraft Expense (6113) Special Purpose Vehicle Expense (6114) Garage Work Equipment Expense (6115) Other Work Equipment Expense (6116)309- Total Network Support Expenses (6110)355 9,430 General Support Expense Land and Building Expenses (6121)176 666 121 376 Furniture and Artworks Expense (6122)183-510- Office Equipment Expense (6123)301 194- General Purpose Computers Expense (6124)353 985 192- Total General Support Expense (6120)531 769 57,481 Central Office Switching Expense Analog Electronic Expense (6211)300- Digital Electronic Expense (6212)177 228 059- Electro-Mechanical Expense (6215) Total Central Off Switching Expense (6210)177 228 359- Operator Systems Expense (6220) Central Office Transmission Expense Radio Systems Expense (6231)1,479 1 ,422 Circuit Equipment Expense (6232)100 904 832- Total Central Office Trans Expense (6230)102 383 46,410- Info OriginationlTermination Expense Station apparatus Expense (6311)724 580 Large Private Branch Exchange Expense (6341)326- Public Tele Terminal Equipment Expense (6351)200 6,496 Other Terminal Equipment Expense (6362)837 200 Total Info OriglTermination Expense (6310)812 949 Cable and Wire Facilities Expenses Poles Expense (6411)99,473-150 218- Aerial Cable Expense (6421)146 369- Underground Cable Expense (6522)651 28,768- Buried Cable Expense (6423)506 371 658 Submarine Cable Expense (6424) Intrabuilding Network Cable Expense (6426)574 238 Total Cable and Wire Fac Expense (6410)504 269 101,460- Aerial Wire Expense (6431) Conduit System Expense (6441)114 104 Total Plant Specific Oper Expense 1,405 930 100 266- Plant Non-Specific Oper Expense Power Expense (6531)117,481 894 Testing Expense (6533)223 719 053- Total Maintenance 747 129 101,426- MR5 Monthly Report NO. Sheet 2 IDAHO-PACIFIC Qwest Corporation Period: December 2002 Operating Expenses This Year Incr Over Same To Date Pd Last Year Engineenng (6535)144 603 025 Network Operations (6534)404 815 230 512 Network Administration (6532)633 365- Access Interstate (6540.934 079- Intrastate (6540.126 834- Intrastate Wireless Wholesale (6540.901 367 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 (6540.262,490 978- Total Access Expense (6540)292,451 524- Other Prop Held for Future Telecomm Use Exp (6511) Provisioning Exp & Nonregulated (6512 5280.4)351-685 Total Plant Non-specific Oper Expense 192 350 176 173 Total Cost of Services and Products 598 280 906 Selling, General & Administrative Customer Operations Marketing Product Management Expense (6611)331 112 331 Sales Expense (6612)492 960 228 360 Product Advertising Expense (6613)990 204 Total Marketing Expense (6610)909,063 278,895 Sevices Call Completion Services Expense (6621)441 156- Number Services Expense (6622)897 13,456- Customer Services Expense (6623)600,950 156 044- Total Services Expense (6620)667 288 212 656- Total Customer Operations 576 350 239 Corporate Operations Executive Expense (6711)26.614 398 Planning Expense (6712)918 281- Legal Expense (6725)114 308 522 Total Executive, Planning & Legal 143 840 639 Accounting and Finance Expense (6721)135,496 685- External Relations Expense (6722)573 118 553- Human ResourcesExpense (6723)398 306- Information Management Expense (6724)178 973 374 095- Other Other Procurement Expense (6726)764 097- Research and Development Expense (6727)150 601- Other General and Admin Exp (6728.8747)207,453 154 775- Provision for Uncoil Notes Rec (6790) Total Other 229 367 164,473- Total Corporate Operations Expense 807 648 665,474- Property Taxes (7240.821 918-9,493 963- Other Operating Taxes (7240.601 228 Total Property & Other Operating Taxes (7240)752 318-9,445 736- MR5 Monthly Report NO. Sheet 3 IDAHO-PACIFIC Qwest Corporation Period: December 2002 Operating Expenses This Year Incr Over Same Selling, General & Administrative (Cont'To Date Pd Last Year Uncollectible Rev - Telecommunications Interstate - End User (5301.220 791 Intrastate - End User (5301.199 929 137 727 Equal Access/Net Rev (5301. Interstate - Carrier Access (5301.4)121 575 103,643 Intrastate - Carrier Access (5301.310 985- Video Dialtone Service (5301. Carrier Access Services (5301. Non-Regulated (5301.691 274 Tot Uncoil Revenue - Telecomm (5301)436 739 302,463 Uncollectible Revenue - Other (5302)130 187 Nonregulated Uncollectible (5280. Total Uncollectible Revenue 436 869 302 650 Total Selling, General & Administrative 931,450-742 320- 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)334 344 614 140- Depr Exp - Prop Held for Future Use (6562) Amortization Exp - Tangible (6563)39,306 149- Amortization Exp - Intangible (6564)811 081 Amortization Exp - Other (6565)236 Total Depr & Amortization Expense (6560)5,434 696 564 207- Total Operating Expenses 101 526 10,230 621- 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 PE R I O D : J A N 2 0 0 2 t o D E e 2 0 0 2 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 Ro w I Ac c t I Be g i n n i n g I I R e t i r e m e n t s WI! Re t i r e m e n t s W/ o l Co s t o f ' I A c t u a l E n d i n g 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 Ot h e r C r e d i t s 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 Mo t o r V e h i c l e s 11 4 14 2 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 e r W o r k E q u i p m e n t 01 5 0 21 2 1 Bu i l d i n g s 66 7 57 5 15 0 26 6 89 8 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 e n t 01 9 0 21 2 3 . Co 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 e n t 02 0 0 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 02 1 0 La n d a n d S u p p o r t A s s e t s 80 6 60 4 17 4 26 6 06 0 02 2 0 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 99 3 69 0 67 8 02 3 0 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 45 7 48 6 31 2 10 5 10 6 02 6 0 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 02 7 0 Ce n t r a l O f f i c e - S w i t c h i n g 45 0 17 6 31 2 10 7 12 , 78 4 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 Ra d i o F a c i l i t i e s 40 2 44 8 03 1 0 22 3 2 Ci r c u i t E q u i p m e n t 39 9 39 4 74 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 80 1 44 5 11 , 19 3 03 3 0 23 1 1 St a t i o n A p p a r a t u s 03 4 0 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 03 5 0 23 4 1 La r g e P u b l i c B r a n c h E x c h a n g e 03 6 0 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 31 3 31 3 03 7 0 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 25 5 29 9 03 8 0 In f o r m a t i o n O r i g i n a t i o n l T e r m i n a t i o n 56 8 61 2 03 9 0 24 1 1 Po l e s 08 3 16 9 04 0 0 24 2 1 Ae r i a l C a b l e 54 8 17 2 63 9 04 1 0 24 2 2 Un d e r g r o u n d C a b l e 2, 4 6 5 21 1 64 1 04 2 0 24 2 3 Bu r i e d C a b l e 64 3 01 7 29 0 20 , 33 8 04 3 0 24 2 4 Su b m a r i n e C a b l e 12 1 12 5 04 4 0 24 2 5 De e p S e a C a b l e 04 5 0 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 21 6 24 0 04 6 0 24 3 1 Ae r i a l W i r e 20 4 21 0 04 7 0 24 4 1 Co n d u i t S y s t e m s 49 1 51 8 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 , 77 1 57 4 40 2 88 0 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 n 39 6 34 0 95 0 26 4 47 8 42 1 52 9 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 PE R I O D : J a n 2 0 0 2 T o D e e 2 0 0 2 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 - 65 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 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 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 Pi a n t B a l a n c e (P e r c e n t ) (a ) (b ) (c ) (d ) (e ) (f ) (g ) (h ) (i ) (j ) 21 1 2 M O T O R V E H I C L E S 11 . 0 % 64 . 4 % 18 2 69 % 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 . 4 10 . 4 % 00 % 4 2 1 1 6 OT H E R W O R K E Q U I P 11 . 36 . 5. 4 % 14 % 5 2 1 2 1 B U I L D I N G S 24 . 32 . 2. 4 7 3 91 % 6 2 1 2 2 F U R N I T U R E 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 . 2 % 00 % 9 2 1 2 4 G E N PU R P O S E C M P T R 48 . 15 . 29 . 4 1 % 22 1 1 A N A L O G S W E Q U I P 1. 9 71 . 3 % 15 . 69 0 17 2 52 % 22 1 2 D I G I T A L S W E Q U I P 32 . 48 6 6, 4 5 7 53 % 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 6 8. 4 2 % 22 3 2 C I R C U I T D D S 34 . 14 . 18 8 13 . 83 % 22 3 2 C I R C U I T D I G I T A L 38 . 10 . 36 8 59 3 10 . 86 % 22 3 2 C I R C U I T A N A L O G 66 . 12 . 58 9 00 % 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 1.0 % 50 . 10 . 48 4 10 . 33 % 24 1 1 P O L E L I N E S 10 . 10 9 . 84 . 12 . 77 2 12 . 05 % 24 2 1 A E R I A L C A B L E M E T 25 . 58 . 2 % 17 2 57 1 69 % 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 . 4 % 19 2 3,4 2 1 61 % 24 2 2 U N D G R D C A B L E N O N M E T 17 . 4 20 . 18 . 34 3 83 % 24 2 3 B U R I E D C A B L E M E T 10 . 40 . 2 % 6.4 % 86 2 30 1 35 % 24 2 3 B U R I E D C A B L E N O N M E T 16 . 20 . 15 5 10 7 99 % 24 2 4 S U B C A B L E M E T 14 . 60 . 16 3 2. 4 5 % 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 . 30 8 52 % 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 . 14 % 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 . 23 . 58 4 89 % To t a i ( l i n e s 1 . . 32 ) 33 5 80 4 04 % MR2 TOTAL COMPANY Qwest Corporation Balance Sheet Assets Current 1 Cash and Short Term Investments (1130,40 60) Receivable Trade (1180 1181 1190.8720. Other (1200,1190.1210 8720. Total Receivable Inventories (1220) Prepd Exp & Oth Curr Asset (1290,1300,10,20,30,50) 7 Total Current Assets 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-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 2002 At End Increase Over Of Month Dec. 31 Last 253 682 958 99,468 691 583 203 834 316 683 801- 493 690 163 944 358 076,893,997 224 739,443- 152 054 527 29,336 521- 206,642 018 765 996- 689 273 500 156 373 268- 130 777 030 1,427 147,458 258,333,644 429 537 173- 745,906- 057 320 830 506- 43,413 167 995 972 033 872 23,982 186,709 2,451 594 758 19,430,981 286 1,479 560 886- 1,485,586,865-948,4 79,427- 349 053 679 015- 145 832 674 24,450 236 241 533 43,357 548- 862 918 065 49,559,494- 589 067-244 940- 444 834 607-055 870 188- 675,420,179 691 804 342- MR2 TOTAL COMPANY Qwest 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 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 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 Earnings29 Total Liabilities and Capital Monthly Report NO. Sheet 2 Period: December 2002 At End Increase Over Of Month Dec. 31 Last 011 703,889- 983 007 571 149 954 932- 090 961 438 394- 167 884 291 337 227 326 010,462 999 105- 010 822 839 095 424 865- 370 965 046 120- 531 932 653 561 213- 119 119 743 412 087,402- 117 139 510-979,747- 162,428,464 682 081 930 164 408 697 771 689,108- 096,487 340 327 784 224 996 797 236 733 630 190 641 996 612 841- 386 179 035 241 396 225 854 509-708 745- 596 251 098 563 592,493 760 659 795 208,096 616- 347 719 095 818 730 138,776 894 315 13,497,475 3,440 853 025-518,162 707- 914 760 384 1,483 707 727- 675 420 179 691 804 342- MR2A Monthly Report NO. 2A Sheet 1 TOTAL COMPANY Qwest Corporation Changes In Telephone Plant Accounts Period: December 2002 ------m......_. This Year To Date --_m_m_....Total At Plant Added Plant Retired Net Increase End of Period 12111-Land 610 354 610 354 101 869 124 2 2112 - Motor Vehicles 776 773 154 746 377 973-408 882 887 3 2113 - Aircraft 875,494 42114 - Special Purpose Vehicles 400 744 344-050 547 5 2115 - Garage Work Equipment 284 154 787 147 504-579 949 6 2116 - Other Work Equipment 15,963 752 107 709 143 956-251 692 341 7 Total Vehicles & Work Equipment 748,209 56,466 986 718 777-673 081 218 8 2121 - Buildings 543 848 13,372 873 170 974 685,462,403 9 2122 - Furniture 710,072 710 072-230,488 102123 - Office Equipment 142,422 744 236 601 814-954 730 11 2123 - Company Communication Equipment 469 300 918 556 20,449 256.17,490 568 12 Total Furniture & Office Equipment 611 722 372 864 761 142-675 786 13 2124 - General Purpose Computers 324,495 93,849,552 525 057-550 006,160 14 2211 - Analog Switching 131 275 078-143 352 276 121 15 2212 - Digital Switching 362,425 614 136 678,493 225 747 121 551 217 060 16 720C GAAP AFUDC 17 2215 - Step-by-Step Switching 182215 - Crossbar Switching 19 2220 - Operator Systems 112 503-275 508 388 011-177,480 20 2231 - Radio Systems 306 879 20,598 574 291 696.246 385 371 21 2232 - Circuit DDS 841 694 385 232 543 538-223 622 22 2232 - Circuit Digital 546 711 514 196 148 341 350 563,173 727 585 086 23 2232 - Circuit Analog 890,796 652 550 761 755-440 860 928 24 Total Central Office Equipment 916,195 268 379 726 621 536,468 647 058 725 669 25 2311 - Station Apparatus 114 989 114 989 964 108 26 2321 - Customer Premises Wiring 27 2341 - Large PBX 128 28 2351 - Public Telephone Terminal Equipment 225 165 520,430 295 266-126,799,092 29 2362 - Other Terminal Equipment 371 171 698 223 672 948 382 990,048 30 Total Other Terminal Equipment 711 324 218,654 11,492 671 545 778 376 31 2411 - Poles 287,458 969 097 318 360 253 005,475 32 2421 - Aerial Cable - Metallic 541 500 993 930 547 570 248 972 231 33 2421 - Aerial Cable - Non-Metallic 871 699 152,452 719 246 36,436,716 34 2422 - Underground Cable - Metallic 263 392 193 024 69,070 369 521 055 925 35 2422 - Underground Cable - Non-Metallic 552 389 825 305 727 084 787,448 202 36 2423 - Buried Cable - Metallic 368 144 882 1,409 572-369,554,454 353 800 054 37 730C - GAAP AFUDC 38 2423 - Buried Cable - Non-Metallic 570 539 618,472 952 067 670 551 524 39 2424 - Submarine Cable - Metallic 188 353 40 2424 - Submarine Cable - Non-Metallic 792 987 41 2426 - Intrabuilding Cable - Metallic 052 243 375 669 676 574 353 043,409 42 2426 - Intra building Cable - Non-Metallic 980 293 362 942 931 584 270 43 2431 - Aerial Cable 555 395 312 986 242,409 646,473 44 2441 - Conduit 100 620 366 243 096 377 270 150 346 965 45 Total Outside Plant 703,440 156 311 822 667 128 334 17,447 872 583 46 Total Owned Property, Plant, & Equipment 730 185 377 622 319 373 107 866 004 137,471 318 MR2A TOTAL COMPANY 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 0 Towers 56 2682 - Leaseholds - Radio 57 2682 - Leaseholds - Others 58 Total Leasehold Improvements 59 2690 0 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 Qwest Corporation Changes In Telephone Plant Accounts Period: December 2002 _m____mOm_- This Year To Date m______--.---Total At Plant Added Plant Retired Net Increase End of Period 354,674 354 673-16,402 832 299 299- 981 194 300,441 319 247-109 821 147 399,378 147 399 378-163,419 670 647 992 647 992 13,406 838 629 186 173 054 792 157,425 606-236 339 162 879 551 879 551 172 736 145 717 848 717 848- 879,551 717 848 161 703 172 736 145 475 535 207 475 535 207 584 023 651 150 150 206 755 475 545 357 475,545 357 584 230,406 497 054 094 177 772 640 319 281,454 993 305 712 227 239,470 800 092 013 1,427 147,458 130 777 030 361 653 229-361 653 229-198,146,405 883 944-883 944-187 239 745 906-745 906- 794 956 391 800 092 013 994 864 378 43,389 110,675 830 506-830 506-057 320 772 125 885 800 092 013 972 033 872 43,413,167 995 MR3 Monthly Report NO. Sheet 1 TOTAL COMPANY Qwest Corporation Income Statement Period: December 2002 This Year Inc Over Same To Date Pd Last Year 540 712 249 292,101 045- 551 513 721 892,093 639,709 909 72,429 107- 174 586 321 233,391- 504 636,498 139 327 252- 11,411 158 698 522,198,702- REVENUE Local Service (5001-5069) Access Service Interstate (5081-5083) Intrastate (5084) Long Distance Service (5100-5160) Miscellaneous (5230-5280, Excl 5280.4 , . 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 (6540.4) 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 796 897 720 267 169 558- 023 778 909 079 451,009 171 116 889 559 798 993 250 595 322,940-662,444- 42,748 820 871 295- 511,156 11,419 066- 880- 903,268-10,975,997 924 312 501,892- 120,000-478 597- 156 562,408 940 291- 797,034-730 346- 593 333 116 198 753 141- 510 355 204 131 077,004 113 796,467 25,813 542 283,486 086 369- 574 154 045 160- 859,458 517 912- 556 919 949 385 333 208,574,227 117,354 888- 067 007,740 132,805,454- 276 720 768 939,483 135,963,466 8,464 833 259 187 644 825 669 249 234 821 103 501 535 233 328 91,215 367,539,188 215 631 671 210 340,452 120,471,281 200 818 245 642 669 982- 568 001 124 658 781 991,754,806 716 643 216 641 062 316 1,407 971,979- Income Taxes Federal (7210.7220 7250.1&.71,7410 7420 7450. State & Local (7210.3&4 7230.7250. 72..73,.79,7410.7430 7450.5&. Income Before Juris Diff & Extraord Items Jurisd. Diff & Nonreg Net Income (7910 7990) Extraordinary Items (7600) Net Income 22.157 578- 254 443 357- 237 576- 168 205 781- 627 011 152 131 371 045- 73,386 606 335 443- 35,472,470 807,912- - Denotes Negative Amount MR3A TOTAL COMPANY Supplement A to Report NO. Sheet 1 Qwest Corporation Details of Certain Accounts Included on Report No. This Year To Date Period: December 2002 Inc Over Same Pd Last Year 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) . Institutions (7540.21) - Banks (7540.22) Reseller (7540.23) - Miscellaneous (7540.29) Total Other (7540) Total Interest Expense 057 279- 002 286 568 001 124 537 899,521 807 713 291 604 291 626 521 540 861 899 384 500 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) Total Other Operating (Income) and Expense 233 328 233 328 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 138 839 255 658 208- 357 793- 248,470 116 765 375- 26,032 875 415,582 991 754 806 Income Taxes - Federal Operating FIT (7220) Prov for Deferred Oper FIT-Originating (7250. Income Tax Allocation Adjustment (7250.71) Operating Investment Tax Credit-Net (7210. Total Normalized Operating FIT Nonoperating FIT (7420) Prov for Def Nonoper. FIT-Originating (7450. Nonoperating Investment Tax Credit-Net (7410) Total Normalized Nonoperating FIT Total Federal Income Tax 620 022 794 844 237 537 364- 612 329 667 809,418 872 067 681,485 627 011 152 205 042 922 279- 019 571 208 264,404- 849 955- 374 839 959 240- 643 553- 658,781 050- 101 265 215 773 324 746 758 633- 672,484 55,998 707 135 370 244- 678 953 204 716 643 216 251 377,419 375 094 119- 476,470 123 240 230- 686,880- 782 340 773 725 130,815- 131 371 045- MR3A TOTAL COMPANY Supplement A to Report NO. Sheet 2 Qwest Corporation Details of Certain Accounts Included on Report No. This Year To Date Period: December 2002 Inc Over Same Pd Last Year 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) Total Normalized Operating SIT Nonoperating SIT Credit (7410. Nonoperating SIT (7430) Prov for Def Nonoper. SIT-Income (7450. Prov for Def Nonoper. SIT-Originating (7450. Prov for Def Nonoper. SIT-Reversing (7450.4 Total normalized Nonoperating SIT Total State and Local Income Taxes 849,465 73,386,606 221 970 390 649 924 523 537 142 1,468,481 380 984 Jurisdictional Differences and Nonregulated Income Accounts15 Income Effect of Juris Ratemarking Diff-Net (7910)16 Nonregulated Net Income (7990)17 Total (7900) 35,472,470 35,472,470 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) 942 508 085 035- 500 682 641 845- 379 533- 136 199- 515 732- 157 578- 237 576- 237 576- MR4 TOTAL COMPANY 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 Excl .4.. 10 Total Miscellaneous 11 Total Operating Revenues Monthly Report NO. Sheet 1 Period: December 2002 Qwest Corporation Summary Of Operating Revenues This Year To Date Incr Over Same Pd Last Year 969 376 094 62,245,514 246 294 329 057- 208 376 533 031 644 854 13,436 610 234 508,443 383 341 293 120 148- 654- 257 999 501 540 712 249 292 101 045- 324.177,619 149 815- 587 773 912 495 998- 639 562,189 127,537 906 639 709 909 72,429 107- 191 223 630 537 014- 551 513 721 892 093 639 709 909 72,429 107- 191 223 630 537 014- 165 942 303 557 379- , 768 319 568- 4,416 916 525 575- 185 235 595,143- 169 6,494- 624 163- 429 991 192- 458 784 849- 21- 174 586,321 233 391- 163 283 744 174- 165,423 038 85,489 217- 174,586 321 89,233,391- 560 677 004 147 919 345 845 196 450 019 369- 906 522 199 382,871,450- 687,469 328 655- 444,968,860 909 318- 78,506 848 705 235 801,405-338 257- 228,615 159 207 216 535 28,036,396- 163.848,979 552,436- 229 848 16,462,310- 551 750 749 564 322- 504,636 498 139 327 252- 11,411 158 698 522 198 702- MR5 Monthly Report NO. Sheet 1 TOTAL COMPANY Qwest Corporation Period: December 2002 Operating Expenses Maintenance This Year Incr Over Same Plant Specific Operations Expense To Date Pd Last Year Network Support Expense Motor Vehicle Expense (6112)225,194 572 706 Aircraft Expense (6113)923- Special Purpose Vehicle Expense (6114)753 754 Garage Work Equipment Expense (6115)404 817 100,496- Other Work Equipment Expense (6116)132 761 608 528- Total Network Support Expenses (6110)831 525 873,512 General Support Expense Land and Building Expenses (6121)232 040,994 340,684- Furniture and Artworks Expense (6122)193 841 294 916- Office Equipment Expense (6123)531 573 652 679- General Purpose Computers Expense (6124)231 559,466 10,774 731- Total General Support Expense (6120)487 325 874 063 009- Central Office Switching Expense Analog Electronic Expense (6211)298 280- Digital Electronic Expense (6212)167,417 844 394 586 Electro-Mechanical Expense (6215)149 029- Total Central Off Switching Expense (6210)167,417 844 723- Operator Systems Expense (6220)694 698 201- Central Office Transmission Expense Radio Systems Expense (6231)943 864 151 964- Circuit Equipment Expense (6232)110 303 281 869 259- Total Central Office Trans Expense (6230)113 247 145 021 224- Info OriginationlTermination Expense Station apparatus Expense (6311)319 912 312 230- Large Private Branch Exchange Expense (6341)724 390 373 581 Public Tele Terminal Equipment Expense (6351)853 717 321 235- Other Terminal Equipment Expense (6362)110 352 053 13,471 354- Total Info Orig/Termination Expense (6310)148 250 071 731 238- Cable and Wire Facilities Expenses Poles Expense (6411)367 844 512 699 Aerial Cable Expense (6421)111,400,727 121 254- Underground Cable Expense (6522)796,442 006 355- Buried Cable Expense (6423)460,820 574 067 887- Submarine Cable Expense (6424)862 622- Intrabuilding Network Cable Expense (6426)826 308 248 836- Total Cable and Wire Fac Expense (6410)652 212 757 135 959 255- Aerial Wire Expense (6431)211,498 620 780 Conduit System Expense (6441)098,497 380 981- Total Plant Specific Oper Expense 599 621 906 260,412 339- Plant Non-Specific Oper Expense Power Expense (6531)351 727 534 832 Testing Expense (6533)135 924 087 292 051- Total Maintenance 796 897 720 267 169 558- MR5 Monthly Report NO. Sheet 2 TOTAL COMPANY Qwest Corporation Period: December 2002 Operating Expenses This Year Incr Over Same To Date Pd Last Year Engineering (6535)023 778 909 079 Network Operations (6534)451 009 171 116 889 559 Network Administration (6532)798 993 250 595 Access Interstate (6540.322 940-662,444- Intrastate (6540.748 820 871 295- Intrastate Wireless Wholesale (6540.511 156 11,419 066- Interstate Competitive Local Exch Carriers (6540.4)880- Intrastate Competitive Local Exch Carriers (6540.903 268-975 997 Inter Competive Local Exch (6540.61) Intra Competive Local Exch (6540.62)924 312 501 892- AC EX CLEC ILEC (6540.63)120 000-478,597- Universal Service Fund Contribution (6540.156 562,408 940 291- Total Access Expense (6540)230,400,488 902,469- Other Prop Held for Future Telecomm Use Exp (6511) Provisioning Exp & Nonregulated (6512 5280.4)797 034-730 346- Total Plant Non-specific Oper Expense 993,711 210 659 198 Total Cost of Services and Products 593 333 116 198 753,141- Selling, General & Administrative Customer Operations Marketing Product Management Expense (6611)241 075 610 536 546 Sales Expense (6612)303 932 364 106 777 884 Product Advertising Expense (6613)150 976 179 272- Total Marketing Expense (6610)609 158 950 145 135,159 Sevices Call Completion Services Expense (6621)173 242 7,437 734- Number Services Expense (6622)941 324 008 943- Customer Services Expense (6623)819 081 688 388 522 Total Services Expense (6620)901 196 254 058 155- Total Customer Operations 510,355,204 131 077 004 Corporate Operations Executive Expense (6711)18,147 621 026 709 Planning Expense (6712)958,422 065 789- Legal Expense (6725)690,424 852 621 Total Executive, Planning & Legal 113,796,467 813 542 Accounting and Finance Expense (6721)283,486 086 369- External Relations Expense (6722)574 154 045 160- Human ResourcesExpense (6723)859,458 517 912- Information Management Expense (6724)556 919 949 385 333 Other Other Procurement Expense (6726)606,407 062 620- Research and Development Expense (6727)100 988 354 616- Other General and Admin Exp (6728,8747)193 866 832 112 937 652- Provision for Uncoil Notes Rec (6790) Total Other 208,574 227 117 354 888- Total Corporate Operations Expense 067 007 740 132 805,454- Property Taxes (7240.276 720 768 35,939,483 Other Operating Taxes (7240.135 963,466 8,464 833 Total Property & Other Operating Taxes (7240)412 684 234 44,404 316 MR5 Monthly Report NO. Sheet 3 TOTAL COMPANY Qwest Corporation Period: December 2002 Operating Expenses This Year Incr Over Same Selling, General & Administrative (Cont'To Date Pd Last Year Uncollectible Rev - Telecommunications Interstate - End User (5301.670 017 966,850 Intrastate - End User (5301.128 578,427 310 214- Equal Access/Net Rev (5301. Interstate - Carrier Access (5301.4)973.447 067 608 Intrastate - Carrier Access (5301.176 688-168,437- Video Dialtone Service (5301. Carrier Access Services (5301.4,417 297 752,499 Non-Regulated (5301.855,426 195,080 Tot Uncoil Revenue. Telecomm (5301)257 317 925 503 387 Uncollectible Revenue - Other (5302)869 718 677 717- Nonregulated Uncollectible (5280. Total Uncollectible Revenue 259 187 644 825 669 Total Selling, General & Administrative 249,234 821 103 501 535 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)050- Other Operating Gains and Losses (7160)233 328 101 265 Total Oth Oper Income and Expenses (7100)233 328 215 Depreciation & Amortization Expense Depr Exp - Telecomm Plant in Service (6561)930 021 005 136 880 564 Depr Exp - Prop Held for Future Use (6562) Amortization Exp - Tangible (6563)124 721 818 330 953- Amortization Exp - Intangible (6564)292 194 219 121 082 063 Amortization Exp - Other (6565)602 146 Total Depr & Amortization Expense (6560)367 539 188 215 631 671 Total Operating Expenses 210 340,452 120,471 281