Windstream 2010 Annual Report Download - page 129

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SELECTED FINANCIAL DATA
(Millions, except per share amounts in thousands) 2010 2009 2008 2007 2006
Revenues and sales $ 3,712.0 $ 2,996.6 $ 3,171.5 $ 3,245.9 $ 3,033.3
Operating income 1,030.3 956.9 1,132.4 1,149.9 898.8
Other income (expense), net (3.5) (1.1) 2.1 11.1 8.7
Gain on sale of directory publishing business and other
assets - - - 451.3 -
Loss on extinguishment of debt ----(7.9)
Intercompany interest income ----31.9
Interest expense (521.7) (410.2) (416.4) (444.4) (209.6)
Income from continuing operations before income taxes 505.1 545.6 718.1 1,167.9 721.9
Income taxes 194.4 211.1 283.2 251.5 276.3
Income from continuing operations 310.7 334.5 434.9 916.4 445.6
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 310.7 334.5 412.7 917.1 445.6
Extraordinary item, net of income taxes ----99.7
Net income $ 310.7 $ 334.5 $ 412.7 $ 917.1 $ 545.3
Basic and diluted earnings per share:
Income from continuing operations $0.66 $0.76 $0.98 $1.93 $1.02
Loss from discontinued operations - - (0.05) - -
Extraordinary item ----0.23
Net income $0.66 $0.76 $0.93 $1.93 $1.25
Dividends declared per common share $1.00 $1.00 $1.00 $1.00 $0.45
Balance sheet data
Total assets $11,353.7 $ 9,145.4 $ 8,009.3 $ 8,241.2 $ 8,030.7
Total long-term debt (including current maturities) $ 7,325.8 $ 6,295.2 $ 5,382.5 $ 5,355.5 $ 5,488.4
Total equity $ 830.6 $ 260.7 $ 252.3 $ 699.8 $ 469.8
Notes to Selected Financial Information:
• Explanations for significant events affecting Windstream’s historical operating trends during the periods 2008
through 2010 are provided in Management’s Discussion and Analysis of Results of Operations and Financial
Condition.
• During 2007, the Company incurred $4.6 million in restructuring costs from a workforce reduction plan and the
announced realignment of its business operations and customer service functions intended to improve overall
support to its customers. Of these charges, $4.1 million was paid in cash during the year. In addition, the Company
incurred $3.7 million in transaction costs to complete the split off of its directory publishing business and incurred
approximately $1.3 million in rebranding costs associated with the acquisition of CTC.
• During 2006, Windstream incurred $27.6 million of incremental costs, principally consisting of rebranding costs,
audit and legal fees, system conversion costs and employee related costs, related to the spin-off from Alltel and
merger with Valor. Windstream also incurred $10.6 million in restructuring charges, which consisted of severance
and employee benefit costs related to a planned workforce reduction. In addition, the Company incurred $11.2
million in investment banker, audit and legal fees associated with the announced split-off of its directory
publishing business. These restructuring charges decreased net income by $36.0 million, giving effect to items not
deductible for tax purposes. Effective January 1, 2006, Windstream prospectively reduced depreciation rates for its
operations in Pennsylvania. In the second quarter of 2006 the Company prospectively reduced depreciation rates
F-29