Windstream 2010 Annual Report Download - page 176

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. Supplemental Guarantor Information, Continued:
Condensed Consolidated Statement of Cash Flows
For the Year Ended December 31, 2008
(Millions) Parent Guarantors
Non-
Guarantors Eliminations Consolidated
Cash Provided from Operations:
Net income $ 412.7 $ 222.2 $ 548.4 $ (770.6) $ 412.7
Adjustments to reconcile net income to net cash
provided from operations:
Loss on sale of wireless business - - 21.3 - 21.3
Depreciation and amortization - 169.5 325.0 - 494.5
Provision for doubtful accounts - 6.9 31.8 - 38.7
Equity in (earnings) losses from subsidiaries (701.3) (69.4) 0.1 770.6 -
Stock-based compensation expense - 2.5 15.6 - 18.1
Pension expense - (0.3) (0.6) - (0.9)
Deferred taxes (24.0) 47.9 86.1 - 110.0
Other, net 12.3 0.5 20.1 - 32.9
Pension contribution (0.8) - - - (0.8)
Changes in operating assets and liabilities, net 771.0 (266.1) (551.0) - (46.1)
Net cash provided from operations 469.9 113.7 496.8 - 1,080.4
Cash Flows from Investing Activities:
Additions to property, plant and equipment - (79.3) (238.2) - (317.5)
Disposition of wireless business 56.7 - - - 56.7
Disposition of acquired assets held for sale - 17.8 - - 17.8
Other, net - 3.4 6.5 - 9.9
Net cash provided from (used in) investing
activities 56.7 (58.1) (231.7) - (233.1)
Cash Flows from Financing Activities:
Dividends paid on common shares (445.2) - - - (445.2)
Dividends received from (paid to) subsidiaries 320.3 (53.7) (266.6) - -
Stock repurchase (200.3) - - - (200.3)
Repayment of debt (344.0) (0.3) (10.0) - (354.3)
Proceeds of debt issuance, net of discount 380.0 - - - 380.0
Other, net (1.8) (1.8) 0.7 - (2.9)
Net cash used in financing activities (291.0) (55.8) (275.9) - (622.7)
Increase (decrease) in cash and cash equivalents 235.6 (0.2) (10.8) - 224.6
Cash and Cash Equivalents:
Beginning of period 47.2 1.2 23.6 - 72.0
End of period $ 282.8 $ 1.0 $ 12.8 $ - $ 296.6
16. Subsequent Events:
On January 24, 2011, Windstream completed the private placement of an additional $200.0 million in aggregate
principal amount of 7.750 percent senior unsecured notes due October 15, 2020 at 103 percent to yield 7.23
percent (the “2020 Notes”). Proceeds from the private placement will be used, together with borrowings under our
revolving line of credit, to retire the Valor Debt, which is estimated to total approximately $424.0 million, after
including accrued and unpaid interest on the notes, together with related fees and expenses due to early retirement
of the debt. The carrying value as of December 31, 2010 was $406.5 million. The private placement resulted in an
extension of the maturity date for $200.0 million associated with the Valor Debt that was previously due to mature
on February 15, 2015.
On February 7, 2011, Windstream announced the expiration of its previously announced tender offer to purchase
for cash any and all of the $400 million in aggregate outstanding principal amount of the Valor Debt. The tender
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