Windstream 2008 Annual Report Download - page 121

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SELECTED FINANCIAL DATA
(Millions, except per share amounts in thousands) 2008 2007 2006 2005 2004
Revenues and sales $ 3,171.5 $ 3,245.9 $ 3,033.3 $ 2,923.5 $ 2,933.5
Operating income 1,132.4 1,149.9 898.8 633.8 667.6
Other income, net 2.1 11.1 8.7 11.6 13.7
Gain on sale of directory publishing business and other
assets - 451.3 - - -
Loss on extinguishment of debt - - (7.9) - -
Intercompany interest income (expense) - - 31.9 23.3 (15.2)
Interest expense (416.4) (444.4) (209.6) (19.1) (20.4)
Income from continuing operations before income taxes 718.1 1,167.9 721.9 649.6 645.7
Income taxes 283.2 251.5 276.3 267.9 259.4
Income from continuing operations 434.9 916.4 445.6 381.7 386.3
Discontinued operations, including tax expense of $10.6
and $0.5, respectively (22.2) 0.7 - - -
Income before extraordinary item and cumulated effect
of accounting change 412.7 917.1 445.6 381.7 386.3
Extraordinary item, net of income taxes - - 99.7 - -
Cumulative effect of accounting change, net of income
taxes - - - (7.4) -
Net Income $ 412.7 $ 917.1 $ 545.3 $ 374.3 $ 386.3
Basic earnings (loss) per share:
Income from continuing operations $0.99 $1.94 $1.02 $0.95 $0.96
Loss from discontinued operations (.05) - - - -
Extraordinary item - 0.23 - -
Cumulative effect of accounting change - - (.02) -
Net income $0.94 $1.94 $1.25 $0.93 $0.96
Diluted earnings (loss) per share:
Income from continuing operations $0.98 $1.94 $1.02 $0.95 $0.96
Loss from discontinued operations (.05) - - - -
Extraordinary item - - 0.23 - -
Cumulative effect of accounting change - - - (.02) -
Net income $0.93 $1.94 $1.25 $0.93 $0.96
Dividends declared per common share $1.00 $1.00 $0.45 $ - $ -
Balance sheet data
Total assets $8,009.3 $8,241.2 $8,030.7 $4,935.8 $5,079.2
Total long-term debt (including current maturities) $5,382.5 $5,355.5 $5,488.4 $260.8 $282.9
Total equity $252.3 $699.8 $469.8 $3,489.2 $3,706.8
Notes to Selected Financial Information:
• Explanations for significant events affecting Windstream’s historical operating trends during the periods
2006 through 2008 are provided in Management’s Discussion and Analysis of Results of Operations and
Financial Condition.
• During 2005, Windstream incurred $4.5 million of severance and employee benefit costs related to a
workforce reduction in its wireline operations. Windstream also incurred $31.2 million of incremental costs,
principally consisting of investment banker, audit and legal fees, related to the then pending spin off from
Alltel. These transactions decreased net income $34.1 million. Effective July 1, 2005, Windstream
prospectively reduced depreciation rates for its regulated operations in Florida, Georgia, North Carolina and
South Carolina to reflect the results of studies of depreciable lives completed by the Company in the second
quarter of 2005. The depreciable lives were lengthened to reflect the estimated remaining useful lives of
wireline plant based on expected future network utilization and capital expenditure levels required to provide
service to its customers. The effects of this change during the year ended December 31, 2005 resulted in a
decrease in depreciation expense of $21.8 million and increase in net income of $12.8 million. Effective
December 31, 2005, Windstream adopted Financial Accounting Standards Board Interpretation No. 47,
F-33