Windstream 2012 Annual Report Download - page 173

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-75
15. Supplemental Guarantor Information:
Debentures and notes, without collateral, issued by Windstream Corporation
In connection with the issuance of the 2013 Notes, the 2017 Notes, the 2018 Notes, the 2019 Notes, the 2020 Notes, the 2021
Notes, the 2022 Notes, and the 2023 Notes ("the guaranteed notes"), certain of our wholly-owned subsidiaries (the
"Guarantors"), including all former subsidiaries of Valor, provide guarantees of those debentures. These guarantees are full and
unconditional, subject to certain customary release provisions, as well as joint and several. Certain Guarantors may be subject
to restrictions on their ability to distribute earnings to us. The remaining subsidiaries (the "Non-Guarantors") of Windstream are
not guarantors of the guaranteed notes. Following the acquisitions of acquired businesses, the guaranteed notes were amended
to include certain subsidiaries of the acquired businesses as guarantors. The parent company is Windstream Corporation who is
also the issuer of the notes.
The following information presents condensed consolidated and combined statements of income, including comprehensive
income, for the years ended December 31, 2012, 2011 and 2010, condensed consolidated balance sheets as of December 31,
2012 and 2011, and condensed consolidated and combined statements of cash flows for the years ended December 31, 2012,
2011 and 2010 of the parent company, the Guarantors and the Non-Guarantors. Investments consist of investments in net assets
of subsidiaries held by the parent company and other subsidiaries, and have been presented using the equity method of
accounting.
Condensed Consolidated Statement of Income
For the Year Ended December 31, 2012
(Millions) Parent Guarantors
Non-
Guarantors Eliminations Consolidated
Revenues and sales:
Service revenues $ — $ 1,080.6 $ 4,869.9 $ (25.4) $ 5,925.1
Product sales — 73.0 158.2 — 231.2
Total revenues and sales — 1,153.6 5,028.1 (25.4) 6,156.3
Costs and expenses:
Cost of services — 374.3 2,335.2 (17.1) 2,692.4
Cost of products sold — 71.9 138.1 — 210.0
Selling, general and administrative — 84.7 899.6 (8.3) 976.0
Depreciation and amortization — 315.2 982.4 — 1,297.6
Merger and integration costs — — 65.4 — 65.4
Restructuring charges — 4.3 23.1 — 27.4
Total costs and expenses — 850.4 4,443.8 (25.4) 5,268.8
Operating income — 303.2 584.3 — 887.5
Earnings from consolidated subsidiaries 404.9 38.9 4.4 (448.2)—
Other (expense) income, net (6.8) 185.8 (174.4) — 4.6
Gain on early extinguishment of debt — — 1.9 — 1.9
Intercompany interest income (expense) 152.8 (98.9)(53.9)— —
Interest expense (540.9)(5.4)(78.8)—
(625.1)
Income from continuing operations before income
taxes 10.0 423.6 283.5 (448.2) 268.9
Income tax (benefit) expense (158.0) 143.4 114.8 — 100.2
Income from continuing operations 168.0 280.2 168.7 (448.2) 168.7
Discontinued operations, net of tax — — (0.7)—
(0.7)
Net income $ 168.0 $ 280.2 $ 168.0 $ (448.2) $ 168.0
Comprehensive income $ 172.5 $ 280.2 $ 168.0 $ (448.2) $ 172.5