Windstream 2010 Annual Report Download - page 91

WINDSTREAM CORPORATION
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
(Dollars in Millions)
Column A Column B Column C Column D Column E
Additions
Description
Balance at
Beginning
of Period
Charged to
Cost and
Expenses
Charged
to Other
Accounts Deductions
Balance at
End of
Period
Allowance for doubtful accounts,
customers and others:
For the years ended:
December 31, 2010 $ 18.5 $ 48.9 $ - $39.6 (A) $ 27.8
December 31, 2009 $ 16.3 $ 44.0 $ - $41.8 (A) $ 18.5
December 31, 2008 $ 13.1 $ 38.7 $ - $35.5 (A) $ 16.3
Valuation allowance for deferred tax assets:
For the years ended:
December 31, 2010 $ 24.4 $ 0.8 (B) $ 3.6 (C) $ - $ 28.8
December 31, 2009 $ 2.6 $ - $ 21.8 (D) $ - $ 24.4
December 31, 2008 $ 11.3 $ - $ - $ 8.7 (E) $ 2.6
Accrued liabilities related to merger, integration
and restructuring charges:
For the years ended:
December 31, 2010 $ 6.6 $ 85.0 (F) $ - $81.1 (G) $ 10.5
December 31, 2009 $ 8.3 $ 31.6 (H) $ - $33.3 (I) $ 6.6
December 31, 2008 $ 14.7 $ 10.1 (J) $ - $16.5 (K) $ 8.3
Notes:
(A) Accounts charged off net of recoveries of amounts previously written off.
(B) Valuation allowance to true up previously recorded allowances related to prior years and the expected
realization of net operating losses assumed from the acquisition of D&E.
(C) Valuation allowance for deferred taxes was established through goodwill related to expected realization of
net operating losses assumed from the acquisitions of NuVox and lowa Telecom.
(D) Valuation allowance for deferred taxes was established through goodwill related to expected realization of
net operating losses assumed from the acquisitions of D&E and Lexcom.
(E) Net valuation allowance adjustment through goodwill in 2008 primarily due to a purchase accounting
adjustment for a revision in the limitation associated with the federal net operating loss carry forward
acquired from the merger with Valor.
(F) Costs primarily include charges for accounting, legal, broker fees and other miscellaneous costs associated
with the acquisitions of D&E, Lexcom, NuVox, Iowa Telecom, Hosted Solutions and Q-Comm. In addition,
the Company incurred employee transition costs, primarily severance related in conjunction with the
integration of D&E, Lexcom, NuVox and Iowa Telecom.
(G) Represents cash outlays for merger, integration and restructuring costs charged to expense.
(H) Costs primarily include charges for accounting, legal, broker fees and other miscellaneous costs associated
with the completed acquisitions of D&E, Lexcom, NuVox and Iowa Telecom. In addition, the Company
incurred a restructuring charge associated with a workforce reduction to realign certain information
technology, network operations and business sales functions.
(I) Includes cash outlays of $15.1 million for restructuring charges and $18.2 million for merger, integration and
restructuring costs charged to expense, including employee related transition costs related to the acquisitions
of D&E, Lexcom, NuVox and Iowa Telecom.
(J) The Company incurred merger and integration costs of $6.2 million related to the acquisition of CTC
wireline operations during the twelve months ended December 31, 2008, primarily related to system
conversion costs. During the second quarter of 2008, the Company determined not to use certain software
acquired in the CTC acquisition; therefore, we recognized a $5.4 million non-cash charge to abandon this
asset, of which $0.8 million was related to the wireless business. Additionally in 2008, the Company incurred
$8.5 million in restructuring costs primarily related to the announced workforce reduction in the fourth
quarter of 2008 to control expenses in a challenging economy and to realign certain information technology,
network operations and business sales functions.
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