Windstream 2006 Annual Report Download - page 162
Download and view the complete annual report
Please find page 162 of the 2006 Windstream annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152 -
153 -
154 -
155 -
156 -
157 -
158 -
159 -
160 -
161 -
162 -
163 -
164 -
165 -
166 -
167 -
168 -
169 -
170 -
171 -
172 -
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
 |
 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
10. Restructuring and Other Charges, Continued:
As of December 31, 2004, the Company had funded through advances from Alltel payment of the restructuring
expenses, and all of the employee reductions and relocations had been completed. During 2004, the Company
also recorded a $1.8 million reduction in the liabilities associated with various restructuring activities initiated
prior to 2003, consisting of lease and contract termination costs. The reduction primarily reflected differences
between estimated and actual costs paid in completing the previous planned lease and contract terminations.
The following is a summary of the activity related to the liabilities associated with the Company’s restructuring
and other charges at December 31:
(Millions) 2006 2005
Balance, beginning of period $ - $ -
Restructuring expenses and other charges, net of non-cash charges 48.6 35.7
Restructuring and other charges transferred to Alltel - (35.7)
Valor integration charges included in goodwill 17.8 -
Cash outlays during the period (37.5) -
Balance, end of period $ 28.9 $ -
In the Company’s consolidated balance sheet at December 31, 2006, other current liabilities included a portion of
this unpaid restructuring liability totaling $19.5 million, which consisted of $0.2 million of costs related to the
spin-off from Alltel and merger with Valor, $10.6 million in severance and employee-related expenses related to
the realignment of its operational functions, $4.9 million of severance and employee-related expenses related to
the integration of Valor, and $3.8 million related to the early termination of Valor leases. The remaining unpaid
restructuring liability of $9.4 million related to fees resulting from the split-off of the publishing business were
included in accounts payable in the consolidated balance sheet. As discussed above, cash outlays for the
remaining unpaid liabilities will be disbursed over the next 12 months and will be funded from operating cash
flows.
11. Other Comprehensive Income (Loss):
Other comprehensive income (loss) consists of unrealized losses on interest rate swaps and foreign currency
translation adjustments. Other comprehensive income (loss) was as follows for the years ended December 31:
(Millions) 2006 2005 2004
Other comprehensive income (loss):
Unrealized holding losses on interest rate swaps $(39.0) $ - $ -
Income tax benefit 15.4 - -
(23.6) - -
Foreign currency translation adjustment (0.5) - (0.1)
Other comprehensive income (loss) before tax: (39.5) - (0.1)
Income tax benefit 15.4 - -
Other comprehensive income (loss): $(24.1) $ - $ (0.1)
F-61