Windstream 2012 Annual Report Download - page 122

F-24
Off-Balance Sheet Arrangements
We do not use securitization of trade receivables, affiliation with special purpose entities, variable interest entities or synthetic
leases to finance our operations. Additionally, we have not entered into any arrangement requiring us to guarantee payment of
third party debt or to fund losses of an unconsolidated special purpose entity.
Contractual Obligations and Commitments
Set forth below is a summary of our material contractual obligations and commitments as of December 31, 2012:
Obligations by Period
(Millions)
Less than
1 Year
1 - 3
Years
3 - 5
Years
More than
5 years Total
Long-term debt, including current maturities (a) $ 866.1 $ 177.7 $ 2,315.4 $ 5,544.5 $ 8,903.7
Interest payments on long-term debt obligations (b) 590.9 1,038.5 992.9 1,044.2 3,666.5
Capital leases (c) 15.2 10.9 2.1 2.5 30.7
Operating leases (d) 249.5 324.8 178.3 174.6 927.2
Purchase obligations (e) 163.7 71.7 — — 235.4
Other long-term liabilities and commitments (f) (g)
(h) 117.5 324.2 372.7 1,811.1 2,625.5
Total contractual obligations and commitments $ 2,002.9 $ 1,947.8 $ 3,861.4 $ 8,576.9 $ 16,389.0
(a) Excludes $62.1 million and $30.7 million of unamortized premiums (net of discounts) and capital lease obligations,
respectively included in long-term debt at December 31, 2012.
(b) Variable rates on the senior secured credit facility are calculated in relation to one-month and three-month LIBOR
rates, which were 0.21 percent and 0.34 percent, respectively, at December 31, 2012.
(c) Capital leases include non-cancellable leases, consisting principally of leases for facilities and equipment.
(d) Operating leases consist of non-cancellable operating leases, consisting principally of leases for network facilities, real
estate, office space and office equipment.
(e) Purchase obligations include open purchase orders not yet receipted and amounts payable under non-cancellable
contracts. The portion attributable to non-cancellable contracts primarily represents agreements for network capacity
and software licensing.
(f) Other long-term liabilities and commitments primarily consist of deferred tax liabilities, pension and other
postretirement benefit obligations, interest rate swaps, asset retirement obligations and long-term deferred revenue.
(g) Excludes $21.2 million of reserves for uncertain tax positions, including interest and penalties, that were included in
other liabilities at December 31, 2012 for which we are unable to make a reasonably reliable estimate as to when cash
settlements with taxing authorities will occur.
(h) Includes $29.0 million and $23.8 million in current portion of interest rate swaps and pension and postretirement
benefit obligations, respectively that were included in current portion of interest rate swaps and other current liabilities
at December 31, 2012. The current portion of pension and postretirement benefit obligations includes $20.0 million
for expected pension contributions in 2013. Although no additional pension contributions may be required in 2013,
due to uncertainties inherent in the pension funding calculation, the amount and timing of any remaining contributions
are unknown and therefore have been reflected as due in more than 5 years.
See "Debt Covenants and Amendments" for information regarding our debt covenants. See Notes 2, 5, 6, 8, 12, 13 and 15 for
additional information regarding certain of the obligations and commitments listed above.