Windstream 2011 Annual Report Download - page 101

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WINDSTREAM CORPORATION
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
(Dollars in Millions)
Column A
Description
Allowance for doubtful accounts,
customers and others:
For the years ended:
December 31, 2011
December 31, 2010
December 31, 2009
Valuation allowance for deferred tax assets:
For the years ended:
December 31, 2011
December 31, 2010
December 31, 2009
Accrued liabilities related to merger,
integration and restructuring charges:
For the years ended:
December 31, 2011
December 31, 2010
December 31, 2009
Column B
Balance at
Beginning
of Period
$ 27.8
$ 18.5
$ 16.3
$ 28.8
$ 24.4
$ 2.6
$ 10.5
$ 6.6
$ 8.3
Column C
Additions
Charged to
Cost and
Expenses
$ 48.5
$ 48.9
$ 44.0
$ 1.4
$ 0.8
$—
$ 71.1
$ 85.0
$ 31.6
(C)
(F)
(H)
(I)
Charged
to Other
Accounts
$—
$—
$—
$ 135.7
$ 3.6
$ 21.8
$—
$—
$—
(B)
(D)
(E)
Column D
Deductions
$ 46.4
$ 39.6
$ 41.8
$—
$—
$—
$ 68.7
$ 81.1
$ 33.3
(A)
(A)
(A)
(G)
(G)
(J)
Column E
Balance at
End of
Period
$ 29.9
$ 27.8
$ 18.5
$ 165.9
$ 28.8
$ 24.4
$ 12.9
$ 10.5
$ 6.6
Notes:
(A) Accounts charged off net of recoveries of amounts previously written off.
(B) Valuation allowance for deferred taxes was established through goodwill related to expected realization of net
operating losses assumed from the acquisition of PAETEC.
(C) 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.
(D) 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.
(E) 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.
(F) Costs primarily include charges for accounting, legal, broker fees and other miscellaneous costs associated with the
acquisitions of NuVox, Iowa Telecom, Hosted Solutions, Q-Comm and PAETEC. In addition, we incurred employee
transition costs, primarily severance related in conjunction with the integration of NuVox, Iowa Telecom, Hosted
Solutions, Q-Comm and PAETEC.
(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
acquisitions of D&E, Lexcom, NuVox, Iowa Telecom, Hosted Solutions and Q-Comm. In addition, we incurred
employee transition costs, primarily severance related in conjunction with the integration of D&E, Lexcom, NuVox
and Iowa Telecom.
(I) 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, we incurred a restructuring charge
associated with a workforce reduction to realign certain information technology, network operations and business sales
functions.
(J) 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.
See Note 10, “Merger, Integration and Restructuring Charges”, to the consolidated financial statements on pages F-67 to F-68
in the Financial Supplement, which is incorporated herein by reference, for additional information regarding the merger,
integration and restructuring charges recorded by us in 2011, 2010 and 2009.