Windstream 2011 Annual Report Download - page 112

F-4
carriers for this service.
Hosted Solutions - On December 1, 2010, we completed the acquisition of Hosted Solutions Acquisition, LLC (“Hosted
Solutions”), which operates data centers in the eastern United States. Hosted Solutions provides the infrastructure to offer many
advanced data services, such as cloud computing, managed hosting and other managed services, on a wide scale. As a result of
this acquisition, we added five state-of-the-art Statement on Standards for Attestation Engagements ("SSAE") 16 certified data
centers and approximately 600 business customers.
NuVox - On February 8, 2010, we completed the acquisition of NuVox Inc. ("NuVox"), a communications provider based in
Greenville, South Carolina. The acquisition of NuVox marked our first considerable move to execute our business-focused
growth strategy and was a critical point in our transformation from a traditional telephone company to a business-focused
provider of advanced data and communications services. In addition to the customers acquired and new services we were able
to offer, we retained a significant number of employees with experience geared towards business customers. The NuVox
acquisition added 104,000 business customers in the Southeastern and Midwestern United States.
Other Acquisitions
The following acquisitions were each also important steps in the evolution of our company into the one we are today. Although
each involved traditional telephone companies, with a profile similar to ours prior to the transformative acquisitions noted
above, each acquisition provided us increased scale, significant synergies and expanded operating presence in contiguous
markets.
Iowa Telecom - On June 1, 2010, we completed the acquisition of Iowa Telecommunications Services, Inc. ("Iowa Telecom"), a
regional communications services provider. This acquisition added 247,000 access lines, 96,000 high-speed Internet customers
and 25,000 video customers in Iowa and Minnesota.
Lexcom - On December 1, 2009, we completed the acquisition of Lexcom Inc. ("Lexcom"), a local communications company
in Lexington, North Carolina. The transaction added approximately 22,000 access lines, 9,000 high-speed Internet customers
and 12,000 cable television customers.
D&E - On November 10, 2009, we completed a merger with D&E Communications, Inc. ("D&E"). The transaction added
approximately 145,000 voice lines, 45,000 high-speed Internet customers and 9,000 cable television customers in
Pennsylvania.
Disposition of out-of-territory product distribution operations
On August 21, 2009, we completed the sale of our out-of-territory product distribution operations to Walker and Associates of
North Carolina, Inc. (“Walker”) for approximately $5.3 million in total consideration. These operations were not central to our
strategic goals in our core communications business.
ORGANIZATION AND RESULTS OF OPERATIONS
We provide a wide range of telecom services, from advanced data solutions for businesses to basic voice services for
consumers. Our sales, marketing and customer support teams are structured based upon the type of customer they serve. We
deliver these services over owned or lease network facilities. Our corporate support teams, such as finance and accounting,
human resources and legal, support our operations as a whole.
See below a detailed discussion and analysis of revenues and sales in our discussion of consolidated operating results.
As discussed in Note 2, effective during the fourth quarter of 2011, we changed our method of recognizing actuarial gains and
losses for pension benefits. Our results of operations have been retrospectively adjusted to reflect this change for all periods
presented.