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30
WINDSTREAM CORPORATION
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
(Dollars in Millions)
Column A Column B Column C Column D Column E
Additions
Description
Balance at
Beginning
of Period
Charged to
Cost and
Expenses
Charged
to Other
Accounts Deductions
Balance at
End of
Period
Allowance for doubtful accounts,
customers and others:
For the years ended:
December 31, 2012 $ 29.9 $ 59.4 $ — $ 46.7 (a) $ 42.6
December 31, 2011 $ 27.8 $ 48.5 $ — $ 46.4 (a) $ 29.9
December 31, 2010 $ 18.5 $ 48.9 $ — $ 39.6 (a) $ 27.8
Valuation allowance for deferred tax assets:
For the years ended:
December 31, 2012 $ 165.9 $ 0.4 $ — $ 80.4 (b) $ 85.9
December 31, 2011 $ 28.8 $ 1.4 $ 135.7 (c) $ — $ 165.9
December 31, 2010 $ 24.4 $ 0.8 (d) $ 3.6 (e) $ — $ 28.8
Accrued liabilities related to merger,
integration and restructuring charges:
For the years ended:
December 31, 2012 $ 12.9 $ 92.8 (f) $ — $ 85.4 (g) $ 20.3
December 31, 2011 $ 10.5 $ 71.1 (f) $ — $ 68.7 (g) $ 12.9
December 31, 2010 $ 6.6 $ 85.0 (h) $ — $ 81.1 (g) $ 10.5
Notes:
(a) Accounts charged off net of recoveries of amounts previously written off.
(b) Represents adjustment recorded through goodwill to valuation allowance for deferred taxes related to expected
realization of net operating losses assumed from acquisition of PAETEC.
(c) Valuation allowance for deferred taxes was established through goodwill related to expected realization of net
operating losses assumed from the acquisition of PAETEC.
(d) Valuation allowance to adjust previously recorded allowances related to prior years and the expected realization of net
operating losses assumed from the acquisition of D&E.
(e) Valuation allowance for deferred taxes was established through goodwill related to expected realization of net
operating losses assumed from the acquisitions of NuVox and lowa Telecom.
(f) Costs primarily include charges for accounting, legal, broker fees and other miscellaneous costs associated with the
acquisitions of NuVox, Iowa Telecom, Hosted Solutions, Q-Comm and PAETEC. In addition, we incurred employee
transition costs, primarily severance related, in conjunction with the integration of NuVox, Iowa Telecom, Hosted
Solutions, Q-Comm and PAETEC.
(g) Represents cash outlays for merger, integration and restructuring costs charged to expense.
(h) Costs primarily include charges for accounting, legal, broker fees and other miscellaneous costs associated with the
acquisitions of D&E, Lexcom, NuVox, Iowa Telecom, Hosted Solutions and Q-Comm. In addition, we incurred
employee transition costs, primarily severance related in conjunction with the integration of D&E, Lexcom, NuVox
and Iowa Telecom.
See Note 10, "Merger, Integration and Restructuring Charges", to the consolidated financial statements on page F-70 in the
Financial Supplement, which is incorporated herein by reference, for additional information regarding the merger, integration
and restructuring charges recorded by us in 2012, 2011 and 2010.