Windstream 2010 Annual Report Download - page 170

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. Supplemental Guarantor Information, Continued:
Guarantors”) of Windstream are not guarantors of the guaranteed notes. Following the acquisitions of acquired
businesses, the guaranteed notes were amended to include certain subsidiaries of the acquired businesses as
guarantors.
The following information presents condensed consolidated and combined statements of income for the years
ended December 31, 2010, 2009 and 2008, condensed consolidated balance sheets as of December 31, 2010 and
2009, and condensed consolidated and combined statements of cash flows for the years ended December 31, 2010,
2009 and 2008 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.
Condensed Consolidated Statement of Income
For the Year Ended December 31, 2010
(Millions) Parent Guarantors
Non-
Guarantors Eliminations Consolidated
Revenues and sales:
Service revenues $ - $942.8 $2,695.5 $ (15.4) $3,622.9
Product sales - 42.4 46.7 - 89.1
Total revenues and sales - 985.2 2,742.2 (15.4) 3,712.0
Costs and expenses:
Cost of services - 305.6 1,035.4 (11.2) 1,329.8
Cost of products sold - 39.5 35.4 - 74.9
Selling, general, administrative and other - 97.5 405.1 (4.2) 498.4
Depreciation and amortization - 273.7 419.9 - 693.6
Merger, integration and restructuring - 1.6 83.4 - 85.0
Total costs and expenses - 717.9 1,979.2 (15.4) 2,681.7
Operating income - 267.3 763.0 - 1,030.3
Earnings (losses) from consolidated subsidiaries 573.0 81.0 6.0 (660.0) -
Other income (expense), net (2.2) 175.6 (176.9) - (3.5)
Intercompany interest income (expense) 120.9 (63.0) (57.9) - -
Interest expense (514.0) (6.5) (1.2) - (521.7)
Income before income taxes 177.7 454.4 533.0 (660.0) 505.1
Income taxes (benefit) (133.0) 133.6 193.8 - 194.4
Net income $ 310.7 $320.8 $ 339.2 $(660.0) $ 310.7
F-70