Windstream 2011 Annual Report Download - page 194

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-86
16. Discontinued Operations:
The operating results of the energy business acquired as part of PAETEC, which sells electricity to business and residential
customers, primarily in certain geographic regions in New York state, as a competitive electricity supplier, have been separately
presented as discontinued operations in the accompanying consolidated statements of income. As the energy market is outside
of our core business, we intend to divest the PAETEC energy business. We will have no significant continuing involvement in
the operations or cash flows of the PAETEC energy business upon disposition.
The following table summarizes the results of the energy business for the year ended December 31:
(Millions)
Revenues and sales
Operating income from discontinued operations
Income tax expense
Net loss from discontinued operations
2011
$ 2.6
(0.1)
—
$(0.1)
The following table summarizes the assets and liabilities of the energy business that are classified as held for sale in the
accompanying consolidated balance sheet:
(Millions)
Current assets
Other assets
Total assets held for sale
Current liabilities
Total liabilities held for sale
December 31,
2011
$ 7.5
3.2
$ 10.7
$ 3.5
$ 3.5
17. Subsequent Events:
On February 8, 2012, we declared a dividend of 25 cents per share on our common stock, which is payable on April 16, 2012 to
shareholders of record on March 30, 2012.
On January 3, 2012, we retired $150.0 million of the outstanding PAETEC 2015 Notes, in relation to our call for redemption
announced on December 2, 2011. We paid total consideration of $1,048 per $1,000 aggregate principal amount of PAETEC
2015 Notes, plus accrued and unpaid interest to, but excluding, the redemption date. The PAETEC 2015 Notes were purchased
using borrowings on our revolving line of credit.
On February 9, 2012, we announced that we are seeking to amend and restate our existing senior secured credit facilities to,
among other things, provide for the incurrence of $280.0 million of additional term loans, the proceeds of which will be used to
partially repay the credit facility revolver (without any reduction in commitments); extend the maturity of certain existing term
loans; provide for the ability to refinance and extend the maturity of any term loan or revolving loan with the consent of the
affected lenders; and modify certain other definitions and provisions. We expect to complete the amendment and restatement,
subject to the receipt of required consents and other customary conditions, in February 2012.
On February 21, 2012, we retired the remaining $150.0 million outstanding of the PAETEC 2015 Notes, in relation to our call
for redemption announced on January 20, 2012. We paid total consideration of $1,048 per $1,000 aggregate principal amount
of PAETEC 2015 Notes, plus accrued and unpaid interest to, but excluding, the redemption date. The redemption was made
using borrowings on our revolving line of credit.