Windstream 2006 Annual Report Download - page 176

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
16. Quarterly Financial Information - (Unaudited):
For the year ended December 31, 2006
(Millions, except per share amounts) Total 4th 3rd 2nd 1st
Revenues and sales $ 3,033.3 $ 827.6 $ 771.4 $ 731.3 $ 703.0
Operating income $ 898.8 $ 285.6 $ 254.1 $ 185.2 $ 173.9
Income before extraordinary item $ 445.6 $ 117.7 $ 96.4 $ 118.7 $ 112.8
Extraordinary item, net of tax $ 99.7 $ - $ 99.7 $ - $ -
Net income $ 545.3 $ 117.7 $ 196.1 $ 118.7 $ 112.8
Basic earnings per share:
Income before extraordinary item $1.02 $.25 $.21 $.29 $.28
Extraordinary item .23 - .22 - -
Net income $1.25 $.25 $.43 $.29 $.28
Diluted earnings per share:
Income before extraordinary item $1.02 $.25 $.21 $.29 $.28
Extraordinary item .23 - .22 -
Net income $1.25 $.25 $.43 $.29 $.28
For the year ended December 31, 2005
(Millions, except per share amounts) Total 4th 3rd 2nd 1st
Revenues and sales $2,923.5 $745.5 $ 728.9 $736.5 $712.6
Operating income $ 633.8 $168.2 $ 162.3 $151.1 $152.2
Income before cumulative effect of accounting change $ 381.7 $ 92.0 $ 107.4 $ 94.1 $ 88.2
Cumulative effect of accounting change $ (7.4) $ (7.4) $ - $ - $ -
Net income $ 374.3 $ 84.6 $ 107.4 $ 94.1 $ 88.2
Basic earnings per share:
Income before cumulative effect of accounting change $.95 $.23 $.27 $.23 $.22
Cumulative effect of accounting change (.02) (.02) - - -
Net income $.93 $.21 $.27 $.23 $.22
Diluted earnings per share:
Income before cumulative effect of accounting change $.95 $.23 $.27 $.23 $.22
Cumulative effect of accounting change (.02) (.02) - - -
Net income $.93 $.21 $.27 $.23 $.22
Notes to Quarterly Financial Information:
A. During the fourth quarter of 2006, the Company incurred $4.8 million of incremental costs, principally
consisting of rebranding costs, consulting and legal fees and system conversion costs, related to the spin-off
from Alltel and merger with Valor. Windstream also incurred $10.6 million of restructuring charges, which
consisted of severance and employee benefit costs related to a planned workforce reduction. In addition, the
Company incurred $11.2 million in investment banker, audit and legal fees associated with the announced
split off of its directory publishing business (See Note 10).
B. During the third quarter of 2006, the Company incurred $15.3 million of incremental costs, principally
consisting of rebranding costs, consulting and legal fees, system conversion costs and employee-related
costs related to the spin-off from Alltel and merger with Valor (See Note 10). The discontinuance of the
application of SFAS No. 71 resulted in an extraordinary gain, net of tax, of $99.7 million (See Note 3). The
Company also incurred $7.9 million in debt pre-payment penalties resulting from the early retirement of
subsidiary debt pursuant to the new Windstream debt structure (See Note 5).
C. During the second quarter of 2006, the Company incurred $4.7 million of incremental costs, principally
consisting of consulting and legal fees, system conversion costs and employee-related costs related to the
spin-off from Alltel and merger with Valor (See Note 10).
D. During the first quarter of 2006, the Company incurred $2.8 million of incremental costs, principally
consisting of rebranding costs, consulting and legal fees, system conversion costs and employee-related
costs related to the spin-off from Alltel and merger with Valor (See Note 10).
F-75