Windstream 2011 Annual Report Download - page 153

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-45
(Millions)
At December 31, 2010 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 (loss) income
Retained earnings (d)
Historical
Accounting
Method and
Prior to
Revisions
$ 3,622.7
1,329.8
498.4
693.6
194.4
310.7
310.7
$.66
4,781.2
3,704.0
145.8
1,767.6
583.4
833.3
(216.9)
214.1
Effect of
Pension
Change
$—
(0.9)
(0.5)
(1.6)
1.1
1.9
1.9
$—
(20.9)
—
—
(7.9)
—
(1.0)
192.8
(204.8)
Effect of
Revisions (c)
$ (1.3)
(1.2)
(2.0)
1.7
0.1
0.1
0.1
$—
3.9
(32.8)
4.4
(63.5)
16.7
22.7
—
(9.3)
As Adjusted (b)
$ 3,621.4
1,327.7
495.9
693.7
195.6
312.7
312.7
$.66
4,764.2
3,671.2
150.2
1,696.2
600.1
855.0
(24.1)
—
(Millions)
At December 31, 2009 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
As Reported
$ 2,872.8
1,014.5
348.3
537.8
211.1
334.5
334.5
$.76
Effect of
Pension
Change
$—
(80.3)
(22.3)
(1.2)
39.8
64.0
64.0
$.15
Effect of
Revisions (c)
$ (0.3)
—
(1.9)
1.7
(0.1)
—
—
$—
As Adjusted (b)
$ 2,872.5
934.2
324.1
538.3
250.8
398.5
398.5
$.91
(a) A portion of pension costs are capitalized as a part of construction labor.
(b) The effect of the accounting change is also reflected in our consolidated statements of cash flows, included in net
income and relevant adjustments to reconcile net income to net cash provided by operating activities.
(c) We have elected to revise historical results for certain previously unrecorded immaterial errors, primarily to adjust
deferred income taxes, goodwill and additional paid-in-capital associated with book to tax basis adjustments related to
the spin-off from Alltel and acquisitions in prior periods. In addition, we recorded other revisions which had an
inconsequential impact on all periods presented.
(d) After consideration of net income and dividends paid, retained earnings would have been reduced below zero at
December 31, 2011 and 2010; therefore, we reduced additional paid in capital to the extent our dividend payments
exceeded retained earnings.
Change in Accounting Estimate
Effective January 1, 2009, we prospectively changed our estimate of useful life for our wireline franchise rights from
indefinite-lived to 30 years, primarily due to the effects of increasing competition. Commensurate with this change, we
reviewed our wireline franchise rights for impairment and noted that no impairment existed as of January 1, 2009. See
“Significant Accounting Policies – Goodwill and Other Intangible Assets” for further discussion.
Recently Adopted Accounting Standards
Comprehensive Income – Effective December 31, 2011, we early adopted authoritative guidance related to comprehensive
income that was required for fiscal years, and interim periods within those years, beginning after December 15, 2011. This
guidance requires all non-owner changes in shareholders’ equity be presented either in a single continuous statement of