Windstream 2006 Annual Report Download - page 35

Participant accounts were credited with earnings based on the investments offered by Windstream under
the Profit-Sharing Plan. For 2006, the investments included a diversified portfolio of cash, stocks, bonds, Alltel
and Windstream stock, and other publicly available and externally managed investment funds such as mutual
funds. The earnings rate for 2006 was 12.97%.
Impact of Section 409A. Section 409A was added to the Internal Revenue Code as part of the American
Jobs Creation Act of 2004. Section 409A imposes new restrictions on the Executive Plan, the Management Plan
and the BRP described above. These new restrictions generally define the earliest date that payments may
commence under the plans and limit the ability of participants to receive accelerated payments or to change their
deferral and payment elections. As described above, the Executive Plan, the Management Plan and the BRP were
merged with and into the 2007 Plan effective as of January 1, 2007. The 2007 Plan is intended to comply with the
requirements of Section 409A.
The following table shows certain information regarding the non-qualified deferred compensation plans
maintained by Windstream as of December 31, 2006. Under these plans, officers can elect to defer the receipt of
compensation that is otherwise owed to such officer in a current period, and Windstream, in turn, is able to defer
payment of such compensation and related employer tax obligations. The deferred compensation amounts
become contributions to the plan and are eligible for credit of earnings under the terms of the plan. The deferred
contributions and balances under the plan are loans by the participant to Windstream, and these loans are
unfunded, unsecured obligations of Windstream that are subordinate to the claims of Windstream’s secured
creditors, and rank equally with the claims of Windstream’s other general unsecured creditors. As part of the
spinoff, Alltel transferred cash to the general funds of Windstream in the amount of approximately $20 million,
which reflected Alltel’s obligations under these plans as of July 17, 2006.
NON-QUALIFIED DEFERRED COMPENSATION
Name
Executive
Contributions in Last
FY ($)(1)
Windstream
Contributions in Last
FY ($)(2)
Aggregate
Earnings in Last
FY ($)(3)
Aggregate
Withdrawals/
Distributions ($)(4)
Aggregate Balance at
12/31/2006
($)
Jeffery R. Gardner 696,266 56,062 244,143 - 2,632,993
Brent Whittington - - - - -
Francis X. Frantz 1,292,010 47,300 1,142,049 - 15,728,164
Keith D. Paglusch - - - - -
John P. Fletcher - - - - -
John J. Mueller - - - - -
Jerry E. Vaughn - - - - -
William M. Ojile, Jr - - - - -
William G. Raney - - - - -
(1) Includes amounts deferred in 2006 under the Alltel Corporation 1998 Management Deferred Compensation
Plan and the Alltel Corporation Benefit Restoration Plan prior to the spin-off. These amounts are also included in
the “Salary” and the “Non-Equity Incentive Plan Compensation” columns of the Summary Compensation Table.
(2) Includes amounts credited to each officer’s account in 2006 under the Alltel Corporation Benefit Restoration
Plan prior to the spin-off. These amounts are also included in the “All Other Compensation” column of the
Summary Compensation Table.
(3) Includes earnings accrued during 2006 under the Alltel Corporation 1998 Management Deferred
Compensation Plan, the Alltel Corporation Executive Deferred Compensation Plan and the Alltel Corporation
Benefit Restoration Plan prior to the spin-off. The “above market earnings” portion of these amounts are
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