Windstream 2011 Annual Report Download - page 152

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-44
average future service life of active employees in these plans. These gains and losses are measured annually as of December
31st and accordingly recorded during the fourth quarter or whenever a remeasurement of the pension benefit obligation occurs.
While our historical policy of recognizing pension benefits is considered acceptable under U.S. GAAP, we believe the new
policy is preferable as it eliminates the delay in recognizing gains and losses within operating results. This change will improve
transparency in our financial results by more quickly recognizing the effects of economic and interest rate trends on plan
investments and assumptions. We have applied these changes retrospectively, adjusting all prior periods presented. The
cumulative effect of the change on retained earnings as of January 1, 2009, which represents the impact of the change from the
date of the establishment of the plan through December 31, 2008, was a decrease of approximately $241.1 million, with the
corresponding increase to accumulated other comprehensive income.
There is no impact on cash, pension funding requirements or the pension liability as a result of this change.
Revisions – We have elected to revise historical results for certain previously unrecorded immaterial errors. We concluded that
the effects, individually and in the aggregate, are immaterial to all periods presented, including the unaudited quarterly financial
information presented in Note 18.
The impact of the accounting policy change and the revisions noted above on our consolidated financial statements is
summarized below:
(Millions)
At December 31, 2011 or for the year ended:
Service revenues
Cost of services (exclusive of depreciation and amortization included
below)
Selling, general and administrative and other
Depreciation and amortization
Income taxes
Income from continuing operations
Net income
Basic and diluted earnings per share
Net property, plant and equipment (a)
Goodwill
Advance payments and customer deposits
Deferred income taxes
Other liabilities
Additional paid-in capital
Accumulated other comprehensive income
Retained earnings (d)
Historical
Accounting
Method and
Prior to
Revisions
$ 4,158.3
1,586.7
580.4
848.4
150.0
251.1
251.0
$.48
5,727.9
4,334.5
235.3
1,924.5
628.4
1,763.1
(262.6)
—
Effect of
Pension
Change
$—
98.4
29.9
(2.5)
(48.2)
(77.6)
(77.6)
($.15)
(23.4)
—
—
(8.9)
—
(279.0)
264.5
—
Effect of
Revisions (c)
$ (1.8)
—
(1.6)
1.6
(0.7)
(1.1)
(1.1)
$—
3.6
(32.8)
5.1
(64.1)
17.9
12.0
—
—
As Adjusted (b)
$ 4,156.5
1,685.1
608.7
847.5
101.1
172.4
172.3
$.33
5,708.1
4,301.7
240.4
1,851.5
646.3
1,496.1
1.9
—