Windstream 2010 Annual Report Download - page 71

Windstream Corporation
Form 10-K, Part I
Item 1. Business
Other Regulations
Under applicable state regulations, some of our subsidiaries are required to obtain the applicable state commission
approval for, or are subject to limitations on, any issuance of stock, incurrence of long-term debt, or granting security
interests to lenders payment of dividends, acquisition or sale of material utility asset or any change in control of these
subsidiaries or their parent companies. None of these limitations have had any material impact on the Company.
Additionally, if we seek to acquire control of other local exchange carriers, Windstream could be required to obtain the
approval of PSCs in the states where the target companies have operations, and such approvals could be conditioned on
Windstream agreeing to restrictions on its operations to which it would not otherwise be subject. Examples of
conditions of approval include restrictions on the amount of Windstream’s indebtedness, its dividend practice, or
requirements to meet specific service levels or technology deployments.
FORWARD-LOOKING STATEMENTS
Windstream claims the protection of the safe-harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 for this annual report on Form 10-K. Forward-looking statements are subject to
uncertainties that could cause actual future events and results to differ materially from those expressed in the forward-
looking statements. Forward looking statements include, but are not limited to, statements about expected levels of
support from universal service funds or other government programs, expected rates of loss of access lines or inter-
carrier compensation, expected increases in high-speed Internet and business data connections, our expected ability to
fund operations, capital expenditures and certain debt maturities from cash flows from operations, our expected
pension contribution of approximately $60.0 million in 2011, expected synergies and other benefits from completed
acquisitions, expected effective federal income tax rates and forecasted capital expenditure amounts. These and other
forward-looking statements are based on estimates, projections, beliefs, and assumptions that Windstream believes are
reasonable but are not guarantees of future events and results. Actual future events and results of Windstream may
differ materially from those expressed in these forward-looking statements as a result of a number of important factors.
Factors that could cause actual results to differ materially from those contemplated in our forward looking statements
include, among others:
• further adverse changes in economic conditions in the markets served by Windstream;
• the extent, timing and overall effects of competition in the communications business;
• continued access line loss;
• the impact of new, emerging or competing technologies;
• the adoption of inter-carrier compensation and/or universal service reform proposals by the Federal
Communications Commission or Congress that results in a significant loss of revenue to Windstream;
• the risks associated with the integration of acquired businesses or the ability to realize anticipated synergies, cost
savings and growth opportunities;
• for our competitive local exchange carrier (“CLEC”) operations, adverse effects on the availability, quality of
service and price of facilities and services provided by other incumbent local exchange carriers on which our
CLEC services depend;
• the availability and cost of financing in the corporate debt markets;
• the potential for adverse changes in the ratings given to Windstream’s debt securities by nationally accredited
ratings organizations;
• the effects of federal and state legislation, and rules and regulations governing the communications industry;
• material changes in the communications industry that could adversely affect vendor relationships with equipment
and network suppliers and customer relationships with wholesale customers;
• unfavorable results of litigation;
• unfavorable rulings by state public service commissions in proceedings regarding universal service funds, inter-
carrier compensation or other matters that could reduce revenues or increase expenses;
• the effects of work stoppages;
• the impact of equipment failure, natural disasters or terrorist acts;
• earnings on pension plan investments significantly below our expected long term rate of return for plan assets;
• and those additional factors under the caption “Risk Factors” in Item 1A of this annual report.
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