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HomeMy WebLinkAbout2006Annual Report.pdf, ')//, "'/1 ((/11 ') , '/ ;/ "' ISh . .: ' 'i~? ':) Allfl u al l? e po ;lY;~:~' ;;~~:J/ STL- Si!v~.r Star Tel~E~~~f~ ::~ Company, Illc. NAME PO Box 226, 104101 HVIIY 89, Freedom.,! 'NY 83120 ADDRESS TO THE IDAHO PUBLIC UTII~ITIES COMMISSION FOR THE YEAR ENDED __ -p' ecember 31 2006 ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31 2006 COMPANY INFORMATION Exact name of utility: Silver Star Telephone Company, Inc. Address of principal office: O. Box 226 104101 Hwy 89, Freedom, WY 83120 Telephone Number Area Code (307) 883-2411 Cities or towns served: Wyoming - Freedom , Etna, Alpine, Anon, Bedford; Idaho-Irwin, Wayan Name and title of officer having custody of the general corporate books of account: Allen R. Hoopes, President Address of office where corporate books are kept and phone number: O. Box 226 104101 Hwy 89, Freedom , WY 83120 (307) 883-2411 Organized under the laws of the State of: Wyoming Date of organization: 10/20/1950 Form of organization (proprietorship, association , corporation): If a Subchapter S Corporation, please specify: N/A Name and address of controlling company, if any: N/A Corporation Names of affiliated companies. Give address and description of business: Columbine Telephone Company, Inc. dba Teton Telecom; P.O. Box 226, Freedom , WY 83120 Telecommunications Services OFFICERS Report below the title, name and office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title, and address of the previous officer and the date of change. Title Name President Allen R. Hoopes VP Operations Ron B. McCue SeclTreasurer Bonnie E. Hoopes VP Finance Chad Turner Address O. Box 226, Freedom, WY 83120 O. Box 226 , Freedom, WY 83120 O. Box 226, Freedom , WY 83120 O. Box 226, Freedom , WY 83120 Rev 3/02 Page 1 DIRECTORS List the name of each person who was a member of the Board of Directors at any given time during the year: (Fees related to meetings only. Name Term Expired or Current Term Will Expire Meetings Attended This year Melvin R. Hoopes Bonnie E. Hoopes Fees Paid During Year and Address Melvin R. Hoopes Indefinate Allen R. Hoopes Indefinate Bonnie E. Hoopes Indefinate Jack Bentley Indefinate Bradford E. Hoopes Indefinate Bob Foster Indefinate Rod R. Jensen Indefinate W. Tom Davis IndefinatePeggy Zimmer Indefinate Name of Chairman of the Board: Name of Secretary (or Clerk) of Board: Number of Meetings of the Board during the year: 750 750 750 250 750 750 500 MANAGERS List the name of each person who performed management duties for the Company during the year , and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts. Name Allen R. Hoopes Ron B. McCue Sharon Urbanik Chad H. Turner Robert S. Tanguay Karen Ricks Drew Izatt Title General Manager VP Operations Customer Service Manager VP Finance Network Manager Engineering/Plant Manager Marketing Manager Wages and Bonuses Paid confidential confidential confidential, confidential confi d~nti a confi d6nti a1 confi d~nti al Note: These wges include all dollars paid to managers performing work for Silver Star Telephone as well as those dollars allocated to Columbine Telephone Company, dba Teton Telecom. Rev 3/02 Page 2 NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices, extensions or additions to the system; disposal of any substantial portion of the property of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. None Rev 3/02 Page 3 BALANCE SHEET Assets and Other Debits Balance Balance Increase Beginning at EndTitle of Account of Year of Year (DeCreaSe) Current Assets 1120 Cash and Equivalents 564 969 605,693 1130 Cash 1140 Special Cash Deposits 1150 Working Cash Advances 600 800 200 1160 Temporary Investments 394 143 473,794 651 1180 Telecommunications Accts. Receivable 513 118 715 203 1181 Accts. Rec. Allow. -Telecommunications 1190 Other Accounts Receivable 965 844 705,011 (260,833) 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 1220 Material and Supplies 232 886 277 120 235 1280 Prepayments 1290 Prepaid Rents 571 571 1300 Prepaid Taxes 1310 Prepaid Insurance 1320 Prepaid Directory Expenses 1330 Other Prepayments 546 (73,546) 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies 684 019 (684 019) 1402 Investment in Nonaffiliated Companies 261 976 311 956 049 980 1406 Nonregulated Investments 002 622 038,149 527 1407 Unamortized Debt Issuance Expense 1408 Sinking Funds 1410 Other Noncurrent Assets 281 539 500 274 039) 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 28,294 107 177 985 883 878 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 456 825 047 787 590 962 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill Depreciation and Amortization Accounts 3100 Accumulated Depreciated 912,785 19,002 715 089,931 3200 Accum. Depre. - Held for Future Use 3300 Accumulated Depreciation - Nonoperating 1 ,898 166 119 747 221 580 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. - Leasehold Improvements 3500 Accumulated Amortization - Intangible 3600 Accumulated Amortization - Other TOTAL ASSETS 28,4 78 209 645 620 (832 588) Rev 3/02 Page 4 BALANCE SHEET Liabilities & Stockholders' Equity Balance Balance Increase Beginning at End Title of Account of Year of Year (Decrease) Current Liabilities 4010 Accounts Payable 074 341 317 207 (757 135) 4020 Notes Payable 4030 Advance Billings and Payments 4040 Customer Deposits 244 833 122 136 (122 697) 4050 Current Maturities - Long -Term Debt 708 700 977 617 268 917 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 165,000 165,000 4080 Other Taxes - Accrued 790 (147)937) 4100 Net Current Defer. Oper. Income Taxes (175 931)(189 030)(13 099) 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 702 279 860 547 158,268 4130 Other Current Liabilities Long-Term Debt 4210 Funded Debt 196 394 992,324 795 930 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated Companies 4270 Other Long-Term Debt Other Liabilities & Deferred Credits 4310 Other Long-Term Liabilities 751 651 796 086 44,435 4320 Unamort. Oper. Invest. Tax Credits - Net 181 691 166 576 (15 115) 4330 Unamort. Nonoper. Invest. Tax Credits - Net 4340 Net Noncurrent Defer. Oper. Income Taxes 539 981 408,935 (131 046) 4350 Net Noncur. Defer. Nonoper. Income Taxes 140 678 146 187 509 4360 Other Deferred Credits 651 320 939,898 288 578 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 000 000 4520 Additional Paid-In Capital 000 000 4530 Treasury Stock 4540 Other Capital 100 701 221 715 121 014 4550 Retained Earnings 337 781 702 570 635 210) TOTAL LlAB. & OTHER CREDITS 28,478,209 645,620 (832 588) Rev 3/02 Page 5 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Y e a r Du r i n g y e a r or S o l d Ad j u s t m e n t s of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 14 1 0 In t e r n e t E q u i p m e n t 29 7 18 5 12 7 33 8 , 31 2 21 1 1 La n d 77 3 77 3 21 1 2 Mo t o r V e h i c l e s 86 4 87 3 10 3 23 6 96 8 10 9 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 98 0 , 97 9 73 , 91 5 (9 7 12 3 ) 95 7 77 1 21 2 1 Bu i l d i n g s 97 4 83 9 73 , 05 9 04 7 , 89 8 21 2 2 Fu r n i t u r e 20 3 75 1 68 8 24 9 , 4 3 9 21 2 3 Of f i c e E q u i p m e n t 22 4 15 4 20 , 72 2 24 4 87 6 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 63 8 , 93 7 00 9 70 7 94 6 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 2, 4 9 5 , 67 0 87 2 72 3 ) 2, 4 9 2 81 8 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 49 3 , 38 6 82 0 (2 9 57 2 ) 46 7 63 4 22 3 2 Ci r c u i t E q u i p m e n t 54 8 , 65 2 41 1 94 4 (3 2 8 21 0 ) ~4 0 37 5 ) 59 2 01 0 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 13 , 25 4 , 04 8 53 3 , 56 0 (9 , 50 8 ) 13 , 77 8 , 09 9 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 28 3 86 4 28 3 86 4 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 04 1 15 , 4 3 9 32 , 4 8 0 26 9 0 In t a n g i b l e s 95 8 95 8 TO T A L P L A N T A C C O U N T S 28 , 29 4 , 10 7 39 8 , 39 0 ~4 7 4 13 7 ) (4 0 , 37 ? 1 29 , 17 7 , 98 5 Re v 3 / 0 2 Pa g e 6 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e Pl a n t Tr a n s f e r s Ba l a n c e Be g i n n i n g Ad d i t i o n s Re t i r e d an d En d of Y e a r Du r i n g Y e a r or S o l d Ad j u s t m e n t s of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 01 2 01 2 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 26 3 , 53 7 62 7 31 5 , 16 4 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 74 8 74 8 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 12 6 76 7 12 6 76 7 22 3 2 Ci r c u i t E q u i p m e n t 78 4 79 2 53 , 66 1 (1 1 66 0 ) 82 6 , 79 3 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 37 0 98 6 11 1 61 6 (1 7 0 ) 5, 4 8 2 , 4 3 2 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 92 8 92 8 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S 55 6 , 76 9 21 6 , 90 4 (1 1 , 83 0 ) 76 1 , 84 3 Re v 3 / 0 2 Pa g e 7 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 14 1 0 In t e r n e t 14 9 , 90 0 33 . 33 % 55 8 23 2 , 4 5 8 21 1 2 Mo t o r V e h i c l e s 40 1 74 1 20 . 00 % 10 0 , 35 8 50 2 09 9 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 76 2 54 4 10 . 00 % 26 , 90 6 78 9 , 4 5 0 21 2 1 Bu i l d i n g s 36 8 , 4 6 3 00 % 10 1 79 0 1, 4 7 0 , 25 3 21 2 2 Fu r n i t u r e 17 3 , 09 0 32 2 20 6 , 4 1 3 21 2 3 Of f i c e E q u i p m e n t 19 7 54 7 14 - 2 0 % 26 , 60 5 22 4 15 2 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 44 1 67 5 14 . 00 % 93 , 19 0 53 4 86 5 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 50 9 60 6 33 - 1 2 % 13 8 72 3 ) 54 1 , 4 6 8 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 31 2 32 6 10 . 00 % 57 4 (2 9 57 2 ) 30 7 32 8 22 3 2 Ci r c u i t E q u i p m e n t 12 2 99 8 10 - 1 2 . 03 2 71 1 (3 6 8 , 58 6 ) 78 7 12 4 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 00 % (8 0 ) 24 2 3 Bu r i e d C a b l e 8, 4 0 8 96 2 5 - 2 0 % 92 8 , 52 7 50 8 ) 32 7 98 1 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 74 8 00 % 19 3 74 , 94 1 26 8 2 Le a s e h o l d I m p r o v e m e n t s 10 3 00 % 08 2 18 5 TO T A L 16 , 91 2 , 78 5 48 7 , 87 3 (4 1 7 , 38 9 19 , 00 2 , 71 5 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 Pa g e 8 AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 ID A H O O p e r a t i o n s O n l y Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g i n n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 M o t o r V e h i c l e s 20 . 00 % 21 1 3 A i r c r a f t 21 1 4 S p e c i a l P u r p o s e V e h i c l e s 21 1 5 G a r a g e W o r k E q u i p m e n t 21 1 6 O t h e r W o r k E q u i p m e n t 10 . 00 % 21 2 1 B u i l d i n g s 10 9 79 9 00 % 15 , 51 0 12 5 , 31 0 21 2 2 F u r n i t u r e 21 2 3 O f f i c e E q u i p m e n t 74 8 14 - 2 0 % 74 8 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 14 . 00 % 22 1 1 A n a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 D i g i t a l E l e c t r o n i c S w i t c h i n g 16 6 , 12 7 33 - 1 2 % (1 6 6 12 7 ) 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 O p e r a t o r S y s t e m s 22 3 1 R a d i o S y s t e m s 92 7 10 . 00 % 64 6 57 3 22 3 2 C i r c u i t E q u i p m e n t 92 5 , 89 2 10 - 12 . 39 1 59 0 (1 1 66 0 ) 30 5 , 82 2 23 1 1 S t a t i o n A p p a r a t u s 23 2 1 C u s t o m e r P r e m i s e s W i r i n g 23 4 1 l a r g e P r i v a t e B r a n c h Ex c h a n g e s 23 5 1 P u b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 O t h e r T e r m i n a l E q u i p m e n t 24 1 1 P o l e s 24 2 1 A e r i a l C a b l e 24 2 2 U n d e r g r o u n d C a b l e 00 % 24 2 3 B u r i e d C a b l e 78 8 50 6 5 - 2 0 % 50 0 , 02 3 28 8 53 0 24 2 4 S u b m a r i n e C a b l e 24 2 6 I n t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 A e r i a l W i r e 24 4 1 C o n d u i t S y s t e m s 59 8 00 % 14 6 74 4 26 8 2 l e a s e h o l d I m p r o v e m e n t s 00 % TO T A L 05 2 , 59 8 74 9 , 78 9 (1 1 , 66 0 ) 79 0 , 72 7 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 Pa g e 9 INVESTMENTS Report below the investments in Accounts 1401, 1402 and 1406, Identify each investment as to the account in which included, Minor amounts in Account 1406 may be grouped by classes, Descri tion Date AcQuired Cash Value -Life Ins,Various Syringa Networks 2000 PCS Investments Various Bridgeland Wireless 2001 Columbine Telephone Co.Various Syringa Wireless 2006 Entry Point 2006 RTFC Capital Credits Various RTFC Certificates Various Independent Cable Systems 2003 Economic Development Loan 2000 Investment-Wells Fargo 2003 Silver Star - Afton (CLEC)1999 Investment-Ambience 2005 Totals Book Cost of Investments Disposed of This year 6451 (6,451) RECEIVABLES Book Cost of Investments Held at d of Year 081 ,884 283,940 881 016 76,250 16,667 89,621 532,284 610,015 114,138 182 561 038,149 243,581 14,350,105 Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Name of ComDanv Customer Billed Syringa Bridgerland Wireless Neca Interexchange Carriers Goldstar Silver Star Afton State USF Millenium Mountain Land Ambience Valley Wireless, LP Schools & Libraries Other Totals Rev 3/02 Amount at End of YearNotes AccountsReceivable ceivable 02,930 929 927 483,505 294 281 412,208 58,979 13,592 28,682 Page 10 588 485 342 842 904 745,353 NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor PCS RTFC Totals Date of Note Dee- Interest Rate Various ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100, Name of Creditor Fed, State, Local Tax Corporate Benefits Neca Long Distance Carriers World Visions Columbine Various Other Vendors Due Date Dec- Face Amount 3044. Amount 511 655,554 28,306 139,661 86,689 983 315,128 Totals 241 877 Rev 3/02 Page 11 LO N G - T E R M D E B T Ac c o u n t s 4 2 1 0 42 4 0 , 42 5 0 42 6 0 , 42 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . If a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e . Da t e Da t e Fa c t Pr e m i u m / D i s c o u n t Cl a s s & S e r i e s Am o u n t Ou t s t a n d i n g Ye a r of O b l i at i o n Is s u e Ma t u r i t y Au t h o r i z e d Ye a r - En d To t a l Am o r t i z e d RU S N O T E - 2 . 6/ 1 / 2 0 0 3 20 0 9 20 , 30 1 09 1 RU S N O T E - 5 . 3/ 1 / 1 9 7 4 20 1 5 68 9 , 00 0 30 9 , 09 0 RU S N O T E - 5 . 12 / 1 / 1 9 9 0 20 2 5 18 8 00 0 36 2 , 81 7 RU S N O T E - 5 , 5/ 1 / 2 0 0 3 20 1 8 75 8 , 00 0 06 9 02 3 RU S N O T E - 5 , 9/ 3 0 / 2 0 0 5 20 1 7 65 3 , 77 3 59 9 , 46 4 RU S N O T E - 5 . 8/ 3 1 / 2 0 0 6 20 1 7 2, 4 4 6 10 0 44 3 , 48 6 RU S N O T E - 6 . 57 % 12 / 1 / 1 9 9 5 20 0 9 35 0 00 0 11 1 , 83 7 RU S N O T E - 6 , 75 % 12 / 1 / 1 9 9 5 20 0 9 86 4 34 5 27 8 , 07 3 RU S N O T E - 6 . 96 % 12 / 1 / 1 9 9 5 20 0 9 19 0 , 65 5 82 3 RT B N O T E - 6 . 54 % 12 / 1 / 1 9 9 0 20 0 9 82 0 05 0 24 0 , 82 5 RT F C L O C - 5 . 25 % 73 2 00 0 RT F C N O T E - V A R I O U S 10 / 1 / 2 0 0 1 20 1 6 26 3 15 8 59 5 , 07 1 RT F C N T O E - V A R I O U S 9/ 1 / 2 0 0 3 20 1 8 16 6 66 7 3, 4 6 4 , 4 7 3 PC S N O T E - 6 . 25 % 4/ 1 / 1 9 9 7 20 0 7 39 , 60 0 04 4 EQ U I P M E N T N O T E S - 0 . Va r i o u s 12 5 , 78 2 RU R A L E C O N O M I C D E V . N O T E - 0 . 30 0 , 00 0 30 0 , 00 0 LE S S C U R R E N T P O R T I O N (9 7 7 61 7 ) TO T A L S 12 , 98 9 , 28 0 In t e r e s t f o r y e a r Ra t e Am o u n t 00 % 00 % 26 7 00 % 92 1 00 % 15 9 51 5 00 % 16 2 00 % 28 7 57 % 55 2 75 % 83 7 96 % 00 3 54 % 18 , 24 3 25 % VA R I O U S 20 0 , 4 3 7 VA R I O U S 30 1 96 0 25 % 65 1 00 % 00 % 86 5 , 88 7 Re v 3 / 0 2 Pa g e 1 2 21 1 CAPITAL STOCK Report below the particulars called for concerning common and preferred stock at end of year designating separate series of any general class. Show totals separately for common and preferred. For each class of preferred stock, show the dividend rate and whether dividends are cumulative or noncumulative. Show details in a footnote of capital stock sold during the year. Include number of shares consideration received, premium or discount, and expenses incurred. Class & Series of Stock Common Stock Voting Common Stock Non-Voting Number of Shares uthorized 000 75,000 Par Value per Share Outstanding per Balance SheetShares Amount 500 500 500 500 TOTAL 100,000 000 000 Rev 3/02 Page 13 Item INCOME & RETAINED EARNINGS STATEMENT Total Company Idaho Only Total Operating Income (from page 16) Total Operating Expenses (from page 18) 7100 Other Operating Income and Expense 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 7230 Operating State and Local Income Taxes 7240 Operating Other Taxes 7250 Provision for Deferred Operating Income Taxes-Net7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Property 7360 Other Nonoperating Income 7370 Special Charges7300 Nonoperating Income and Expense 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions7500 Interest and Related Items 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 3/02 528,425 898,915 (13 648) 358,498 133 128 598 (146,468) 328,113 (53 794) (40 642 770) 417,096 136 333,026 (58,490) (58,490) 856 236 651 865,887 169,964 330,938 Page 14 828,529 097,707 (13 648) 314,483 133 217 (117 841) 221,344 (16,386) 344) (87 181) 857 (107,053) 659) (1,659) 210 967 210,979 36,448 407,211 Item OPERATING REVENUES Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Other Local Exchange Revenue 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue - All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: NECA USF $ 2,049,002 To what account were they booked? State USF 163,101 To what account were they booked? Rev 3/02 662,447 215 207 664 573 130 136,617 46,594 319,766 212 775 25,011 116,321 455 842 693 246 741,837 393,077 60,434 021 722 160,742 36,102 270 517,501 85,740 608 134 950 986 131 815 765 912 (129) 391 (359) 528,425 828,529 5069. 5069. Page 15 Item OPERATING REVENUES Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 land and Building Expenses 6122 Furniture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information OriginationlTermination Expense 6311 Station Apparatus Expense 6341 large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE Rev 3/02 131 177 277 150 559 199 598 456,511 16,493 259 079 1,416 151 549,948 Page 16 884 349 325 322 673 112 324 375 44,412 410,496 679,159 Item OPERATING REVENUES Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom. Plant in Service 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Rev 3/02 41,666 18,319 158,789 142 508 779 727 380 132,440 75,365 872 664 422,958 550,860 254 724 801 411 510 128,432 100,785 354,278 12,666 323,470 665,667 898,915 Page 17 808 189 69,382 63,347 910 769,013 924,648 20,283 327 886 792 108,287 205 892 124 927 510 170 631 792 80,484 385,612 097,707 CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , _ 20 0 6 (u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : No n e Pr e f i x ( e s ) : Ce n t r a l O f f i c e S w i t c h Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t Re m o t e Ac c e s s L i n e C a p a c i t y De s i g n : In s t a l l e d / E q u i p p e d : Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Mu l t i - Li n e Pa r t y Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . Di a l T o n e f r o m a n o t h e r C . 57 4 A n d 4 8 3 Ty p e : Ch e c k o n e : Di g i t a l An a l o g - Re s i d e n c e Si n g l e L i n e Mu l t i - pa r t y Pa r t y 44 0 44 8 Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d t o : Re v 3 / 0 2 Ch e c k o n e : El e c t r o n i c El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s 60 6 (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . Pu b l i c T e l e p h o n e L i n e s Co m p a n y O f f i c i a l L i n e s Co m p a n y T e s t L i n e s Su b t o t a l Re s i d e n c e 44 0 44 8 Ce n t r e x N. A . R . Mu l t i - Li n e Pa r t y 10 7 11 7 Bu s i n e s s Si n g l e L i n e To t a l Mu l t i - Su b t o t a l Re s i d e n c e Pa r t y Pa r t y Bu s i n e s s & B u s i n e s s 15 0 59 0 15 8 60 6 Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : 21 1 Pa g e 1 8 Lo c a l E x c h a n g e 20 8 / 4 8 3 20 8 / 5 7 4 Re v 3 / 0 2 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G (Y e a r ) _ 20 0 6 Av e r a g e # of C u s t o m e r Li n e s i n U s e Lo c a l C a l l s Nu m b e r Av g . l (1 O 0 0 s ) Li n e 35 , 4 0 6 59 1 Pa g e 1 9 To l l C a l l s O r i o i n a t e d ( T o t a l o f a l l C a r r i e r s ) Av g . l In t r a s t a t e In t e r s t a t e To t a l Li n e 14 , 14 1 22 9 84 0 24 3 , 38 1 30 1 86 2 16 3 ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER , ;;. Doh. CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31,21,01,603 Rule IDAPA31.41,01,105 Please provide copies of: Summary of Customer Relations Rulesfor Telephone Comorations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes Included in directory Yes Date of notification Alternate method of notification Rule IDAPA 31.41,01.403. Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bill Denial/Termination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 State of~o j/ttJuFHJt:)ss oUQty e: t c.. -?' fl//I'V\ CERTIFICATE and , the undersigned W 'Tun~pr S;) ~ €. 'f -tt.l-c 'Ie ~J"\ tI ~\ Z fico pe,-S of the C~, Ihf utility, on our oath do severally say that the foregoing return has been prepared under our direction, from the original books, papers, and records of said utility; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utility for the period covered by the return in respect to each and every matter and thing therein set forth , to the best of our knowledge , information and belief, ~~~ (Chief Officer) (Officer in Charge of Accounts) 7~~Subscribed and Sworn to Before Me this day of l' 1 / /", .;t -' /' YlttJ' //~" w///?tL/ / ;- '/ /;.. / .- / / (/2 Notary Publk: ' ,~,, (Year) :h::l!J/. MICHELLE MorzKus':NoTARY PUBLIC COUNrvOF STATEOFI.INCCIM W'fa.tJNG MY ~SSfON EXPIRES d' 7~7My Commission expires , (Year) Rev 3/02 gd kl ex celli ne I sonIa nul rpts/te I ann u a I rpt Page 21