Windstream 2006 Annual Report Download - page 84

Windstream Corporation
Form 10-K, Part I
Item 1A. Risk Factors
We are currently party to 22 collective bargaining agreements with several unions, which expire at various times. Ten
of these collective bargaining agreements, covering a total of approximately 797 employees as of December 31, 2006,
are due to expire in 2007. Historically, we have succeeded in negotiating new collective bargaining agreements without
work stoppages; however, no assurances can be given that we will succeed in negotiating new collective bargaining
agreements to replace the expiring ones without work stoppages. Any work stoppage in the future could have a
material adverse effect on our business, financial condition or results of operations.
The split-off of our directory publishing business and related transactions are subject to certain conditions to
closing that could result in the transactions being delayed or not completed, which could negatively impact our
future business and operations.
Failure to complete the split-off of our directory publishing business to affiliates of Welsh Carson could negatively
affect our future business and operations. The transactions are subject to customary conditions to closing. If any of the
conditions to the transactions are not satisfied or, if waiver is permissible, not waived, the transactions will not be
completed. If the split-off and related transactions are not completed for any reason, we will not recognize the
anticipated benefits of the transactions, such as the retirement of a portion of our outstanding debt under our senior
secured credit facilities and the repurchase of our common stock from Welsh Carson. In addition, we must pay our own
expenses related to the transactions, including substantial legal, audit and financial advisory fees, even if the
transaction is not completed, which could adversely affect our results of operations. Further, if the transaction with
Welsh Carson is unsuccessful and our board of directors determines to seek another transaction, it may not be able to
find a partner willing to pay an equivalent or more attractive price than that which would have been paid in the
transaction with Welsh Carson.
Item 1B. Unresolved Staff Comments
No reportable information under this item.
Item 2. Properties
The Company’s properties do not provide a basis for description by character or location of principal units. The
obligations under our senior secured credit facilities are secured by liens on substantially all of the personal property
assets of Windstream and its subsidiaries who are guarantors of our senior secured credit facilities. A summary of the
Company’s investment in property, plant and equipment segregated between the Company’s regulated wireline
operations and product distribution is presented below.
WIRELINE PROPERTY
The Company’s wireline subsidiaries own property in their respective operating territories which consists primarily of
land and buildings, central office equipment, outside plant and related equipment. Outside communications plant
includes aerial and underground cable, conduit, poles and wires. Central office equipment includes digital switches and
peripheral equipment. The gross investment by category in wireline property as of December 31, 2006, was as follows:
(Millions)
Land $ 24.2
Buildings and improvements 426.5
Central office equipment 3,415.9
Outside communications plant 4,202.8
Furniture, vehicles and other equipment 429.0
Total $ 8,498.4
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