Windstream 2007 Annual Report Download - page 116

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Notes to Selected Financial Information, Continued:
• During 2003, Windstream recorded a restructuring charge of $7.0 million consisting of severance and employee benefit
costs related to a workforce reduction, primarily resulting from the closing of certain call center locations. In 2003,
Windstream sold to Convergys Information Management Group, Inc. certain assets and related liabilities, including selected
customer contracts and internally developed software, associated with Windstream’s telecommunications information
services operations. In connection with this sale, Windstream recorded a pretax gain of $31.0 million. In addition, during
2003, Windstream retired, prior to stated maturity dates, $249.1 million of long-term debt, representing all of the long-term
debt outstanding under the Rural Utilities Services, Rural Telephone Bank and Federal Financing Bank programs. In
connection with the early retirement of the debt, Windstream incurred termination fees of $7.1 million. Effective January 1,
2003, Windstream adopted SFAS No. 143, “Accounting for Asset Retirement Obligations”. The cumulative effect of this
accounting change resulted in a one-time non-cash benefit of $15.6 million, net of income tax expense of $10.3 million.
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