Windstream 2008 Annual Report Download - page 174
Download and view the complete annual report
Please find page 174 of the 2008 Windstream annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164 -
165 -
166 -
167 -
168 -
169 -
170 -
171 -
172 -
173 -
174 -
175 -
176 -
177 -
178 -
179 -
180
 |
 |
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
16. Discontinued Operations:
On November 21, 2008, Windstream completed the sale of its wireless business, which served customers in and around
Concord, North Carolina, to AT&T Mobility II, LLC for approximately $56.7 million. The completion of this
transaction allowed management to divest of a non-core asset. As a result of completing this transaction, we will have
no significant continuing involvement in the operations or cash flows of the wireless business.
The operating results of the wireless business have been separately presented as discontinued operations in the
accompanying consolidated statements of income. Certain shared costs previously allocated to the wireless business
totaling $2.3 million for the twelve months ended December 31, 2008, have been reallocated to the wireline segment.
The following table summarizes the results of the wireless business for the years ended December 31:
(Millions) 2008 2007
Revenues and sales $ 42.0 $ 14.9
Operating income from discontinued operations $ 9.7 $ 1.2
Loss on sale of wireless business (21.3) -
Income tax expense (10.6) (0.5)
Net income (loss) from discontinued operations $ (22.2) $ 0.7
The pre-tax loss of $21.3 million was comprised of $1.0 million in transaction related fees and a $20.3 million
reduction in goodwill to reduce the carrying value of the wireless business net assets to the transaction price.
Additionally, in the second quarter of 2008, the Company updated its purchase price allocation through goodwill for
certain tax contingencies, which resulted in a $3.2 million reduction of deferred tax liabilities. Upon completion of the
sale, the Company recorded additional tax expense of $9.7 million related to goodwill that was not deductible for tax
purposes.
The following table summarizes the assets and liabilities of the wireless business that are classified as held for sale in
the accompanying consolidated balance sheet:
(Millions)
December 31,
2007
Current assets $ 7.2
Goodwill 52.2
Other intangibles 14.4
Net property, plant and equipment 11.9
Other assets -
Total assets of discontinued operations $ 85.7
Current liabilities $ 7.1
Total liabilities of discontinued operations $ 7.1
F-86