Windstream 2008 Annual Report Download - page 168

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. Supplemental Guarantor Information, Continued:
Condensed Consolidated Statement of Income
For the Year Ended December 31, 2007
(Millions) Parent Guarantors
Non-
Guarantors Eliminations Consolidated
Revenues and sales:
Service revenues $ - $ 765.0 $ 2,236.0 $ (58.5) $ 2,942.5
Product sales - 426.9 53.7 (177.2) 303.4
Total revenues and sales - 1,191.9 2,289.7 (235.7) 3,245.9
Costs and expenses:
Cost of services - 228.1 762.1 (5.6) 984.6
Cost of products sold - 367.2 41.6 (230.1) 178.7
Selling, general, administrative and other - 122.3 291.6 - 413.9
Depreciation and amortization - 169.6 336.4 - 506.0
Merger, integration and restructuring - 5.0 7.8 - 12.8
Total costs and expenses - 892.2 1,439.5 (235.7) 2,096.0
Operating income - 299.7 850.2 - 1,149.9
Earnings from consolidated subsidiaries 1,218.4 110.8 1.0 (1,330.2) -
Other income (expense), net 9.9 (0.2) 1.4 - 11.1
Gain on sale of publishing business - 86.3 365.0 - 451.3
Intercompany interest income (expense) (56.1) (34.5) 90.6 - -
Interest expense (436.5) (6.0) (1.9) - (444.4)
Income from continuing operations before income taxes 735.7 456.1 1,306.3 (1,330.2) 1,167.9
Income taxes (benefit) (181.4) 87.4 345.5 - 251.5
Income from continuing operations 917.1 368.7 960.8 (1,330.2) 916.4
Discontinued operations - - 0.7 - 0.7
Net income $ 917.1 $ 368.7 $ 961.5 $ (1,330.2) $ 917.1
Condensed Consolidated Statement of Income
For the Year Ended December 31, 2006
(Millions) Parent Guarantors
Non-
Guarantors Eliminations Consolidated
Revenues and sales:
Service revenues $ - $ 521.3 $ 2,157.3 $ (45.0) $ 2,633.6
Product sales - 478.9 40.4 (119.6) 399.7
Total revenues and sales - 1,000.2 2,197.7 (164.6) 3,033.3
Costs and expenses:
Cost of services - 158.1 708.2 (3.8) 862.5
Cost of products sold - 410.3 29.5 (162.1) 277.7
Selling, general, administrative and other 0.5 102.4 261.5 1.3 365.7
Depreciation and amortization - 116.6 333.0 - 449.6
Royalty expense to Alltel - 18.3 111.3 - 129.6
Merger, integration and restructuring - 27.9 21.5 - 49.4
Total costs and expenses 0.5 833.6 1,465.0 (164.6) 2,134.5
Operating income (0.5) 166.6 732.7 - 898.8
Earnings (losses) from consolidated subsidiaries 588.8 9.3 (6.4) (591.7) -
Other income (expense), net 7.5 0.8 0.4 - 8.7
Loss on extinguishment of debt - (3.0) (4.9) - (7.9)
Intercompany interest income (expense) (44.2) 10.1 66.0 - 31.9
Interest expense (196.0) (7.3) (6.3) - (209.6)
Income from continuing operations before income taxes 355.6 176.5 781.5 (591.7) 721.9
Income taxes (benefit) (90.0) 59.2 307.1 - 276.3
Income before extraordinary item 445.6 117.3 474.4 (591.7) 445.6
Extraordinary item, net of income taxes 99.7 28.3 71.4 (99.7) 99.7
Net income $ 545.3 $ 145.6 $ 545.8 $ (691.4) $ 545.3
F-80