Windstream 2006 Annual Report Download - page 131
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Notes to Selected Financial Information, Continued:
E. In 2002, Windstream announced its plans to exit its competitive service operations in seven states representing less
than 20 percent of its competitive access lines. During 2002, Windstream also consolidated its call center and
product distribution operations. In connection with these activities, Windstream recorded restructuring charges
totaling $10.9 million consisting of $8.2 million in severance and employee benefit costs related to planned
workforce reductions and $2.7 million of costs associated with terminating certain competitive service transport
agreements and lease termination fees incurred with the closing of certain call center and product distribution
locations. In exiting the competitive service operations, Windstream also incurred $2.2 million of costs to
disconnect and remove switching and other transmission equipment from central office facilities and expenses to
notify and migrate customers to other service providers. Windstream also wrote off certain capitalized software
development costs totaling $4.1 million that had no alternative future use or functionality. These transactions
decreased net income $23.2 million.
F-30