Windstream 2010 Annual Report Download - page 63

Windstream Corporation
Form 10-K, Part I
Item 1. Business
The Company’s web site address is www.windstream.com. Windstream files with, or furnishes to, the Securities and
Exchange Commission (the “SEC”) annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports
on Form 8-K, as well as various other information. This information can be found on the SEC website at www.sec.gov.
In addition, Windstream makes available free of charge through the Investor Relations page of its web site its annual
reports, quarterly reports, and current reports, and all amendments to any of those reports, as soon as reasonably
practicable after providing such reports to the SEC. In addition, on the corporate governance section of the Investor
Relations page of its web site, Windstream makes available its Code of Ethics, the Board of Directors’ Amended and
Restated Corporate Governance Board Guidelines, and the charters for its Audit, Compensation, and Governance
Committees. Windstream will provide to any stockholder a copy of the Governance Board Guidelines and the
Committee charters, without charge, upon written request to Investor Relations, Windstream Corporation, 4001
Rodney Parham Road, Little Rock, Arkansas 72212.
FORMATION OF WINDSTREAM
On July 17, 2006, Alltel completed the spin off of its wireline telecommunications division, Alltel Holding Corp.
Pursuant to the spin off, Alltel contributed all of its wireline assets to the Company in exchange for: (i) newly issued
Company common stock, (ii) the payment of a special dividend to Alltel in the amount of $2.3 billion and (iii) the
distribution by the Company to Alltel of certain debt securities (the “Contribution”). In connection with the
Contribution, the Company assumed approximately $261.0 million of long-term debt that had been issued by the
Company’s wireline subsidiaries. Following the Contribution, Alltel distributed 100 percent of the common shares of
the Company to its shareholders as a tax-free dividend.
Immediately after the consummation of the spin off, Alltel Holding Corp. merged with and into Valor, with Valor
continuing as the surviving corporation. The merger was accounted for using the purchase method of accounting for
business combinations, in accordance with authoritative guidance, with Alltel Holding Corp. serving as the accounting
acquirer. The accompanying consolidated financial statements reflect the combined operations of Alltel Holding Corp.
and Valor following the spin off and merger transactions on July 17, 2006. The resulting company was renamed
Windstream Corporation. Results of operations presented for historical periods prior to the merger are for Alltel
Holding Corp. As a result of the merger, all of the issued and outstanding shares of the Company’s common stock were
converted into the right to receive an aggregate number of shares of common stock of Valor. Valor issued in the
aggregate approximately 403 million shares of its common stock to Alltel shareholders pursuant to the merger, or
1.0339267 shares of Valor common stock for each share of the Company’s common stock outstanding as of the
effective date of the merger. Upon completion of the merger, Alltel’s stockholders owned approximately 85 percent of
the outstanding equity interests of the surviving corporation, Windstream, and the stockholders of Valor owned the
remaining approximately 15 percent of such equity interests. In addition, Windstream assumed Valor debt valued at
$1,195.6 million.
PRODUCTS AND OFFERINGS
Business services include data, integrated solutions, and voice services and special access circuits to business
customers. Data services include advanced data services, such as data center and managed hosting, MPLS networking,
and dedicated access, as well as the provision of high-speed Internet to business customers. Integrated solutions consist
of multiple voice and data services delivered over an IP connection. Voice services include basic services, such as
local, and various enhanced features as well as long-distance. Special access services include point-to-point switching
arrangements for voice and data traffic, allowing constant use at maximum capacity.
Consumer services primarily consist of the provision of high-speed Internet, voice and video services to residential
customers. High-speed Internet includes traditional high-speed Internet service as well as other value added services
utilizing that high-speed connection, such as our Internet Security Suite software and Online Data Backup services.
Voice services include basic services such as local and long distance and enhanced services such as call waiting, caller
identification, and voicemail. Video services represent activation and billing of digital satellite television service
through DISH Network LLC and service provided through various cable television franchises owned by the Company.
Wholesale services primarily include voice and data services sold on a wholesale basis to other carriers, usage sensitive
services to long distance companies and other local exchange carriers for access to the Company’s network in
connection with the completion of long-distance calls, as well as reciprocal compensation received from wireless and
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