Windstream 2009 Annual Report Download - page 183

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
14. Business Segments, Continued:
A reconciliation of the total business segments to the applicable amounts in the Company’s consolidated financial
statements was as follows for the years ended December 31:
(Millions) 2009 2008 2007
Revenues and sales:
Total business segments $ 2,996.6 $ 3,171.5 $ 3,302.6
Less affiliated eliminations - - (56.7)
Total revenues and sales 2,996.6 3,171.5 3,245.9
Income before income taxes:
Total business segment income 979.2 1,138.6 1,158.1
Merger and integration costs (22.3) (6.2) (8.2)
Other income, net (1.1) 2.1 11.1
Gain on sale of publishing business - - 451.3
Interest expense (410.2) (416.4) (444.4)
Total income from continuing operations before income taxes $ 545.6 $ 718.1 $ 1,167.9
Supplemental information pertaining to the directory publishing segment was as follows as of and for the years
ended December 31:
(Millions) 2009 2008 2007
Revenues and sales from external customers:
Directory publishing $ - $ - $111.3
Total - - 111.3
Affiliated revenues and sales:
Directory publishing - - 11.7
Total - - 11.7
Total revenues and sales:
Directory publishing - - 123.0
Total $ - $ - $123.0
15. Supplemental Guarantor Information:
In connection with the issuance of the 2013 Notes, the 2016 Notes, the 2017 Notes and the 2019 Notes (“the
guaranteed notes”), certain of the Company’s wholly-owned subsidiaries (the “Guarantors”), including all former
subsidiaries of Valor, provide guarantees of those debentures. These guarantees are full and unconditional as well
as joint and several. Certain Guarantors may be subject to restrictions on their ability to distribute earnings to the
Company. The remaining subsidiaries (the “Non-Guarantors”) of Windstream are not guarantors of the guaranteed
notes. In conjunction with the merger with Valor, Windstream assumed $400.0 million principal value of
unsecured notes (the “Valor Notes”) guaranteed by all of Valor’s operating subsidiaries. The terms of those notes
were amended to reflect the non-Valor Guarantors as guarantors of the Valor Notes. On March 1, 2007, the
Company de-registered the Valor Notes. Following the acquisitions of D&E, Lexcom and CTC, the guaranteed
notes were amended to include certain subsidiaries of D&E, Lexcom and CTC as guarantors.
The following information presents condensed consolidated and combined statements of income for the years
ended December 31, 2009, 2008 and 2007, condensed consolidated balance sheets as of December 31, 2009 and
2008, and condensed consolidated and combined statements of cash flows for the years ended December 31, 2009,
2008 and 2007 of the parent company, the Guarantors and the Non-Guarantors. Investments consist of
investments in net assets of subsidiaries held by the parent company and other subsidiaries, and have been
presented using the equity method of accounting.
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