Windstream 2013 Annual Report Download - page 117

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Key suppliers may experience financial difficulties that may affect our operations.
Windstream purchases a significant amount of equipment from key suppliers to maintain, upgrade and enhance our network
facilities and operations. Should these suppliers experience financial difficulties, their issues could adversely affect our business
through increased prices to source purchases through alternative vendors or unanticipated delays in the delivery of equipment
and services purchased.
Adverse developments in our relationship with our employees could adversely affect our business, our results of operations
and financial condition.
As of December 31, 2013, we had 1,643 employees, or approximately 12 percent of all of our employees, covered by collective
bargaining agreements. Our relationship with these unions generally has been satisfactory.
We are currently party to 24 collective bargaining agreements and one National Pension Agreement with several unions, which
expire at various times. Of our existing collective bargaining agreements, six agreements covering in excess of 600 employees
are due to expire in 2014. In addition, the national pension agreement covers approximately 500 employees. This agreement
expired in 2010 but has been extended indefinitely, subject to the right of Windstream or the unions to terminate the agreement
with 30 days notice. Historically, we have succeeded in negotiating new collective bargaining agreements without work
stoppages; however, no assurances can be given that we will succeed in negotiating new collective bargaining agreements to
replace the expiring ones without work stoppages. Increases in organizational activity or any future work stoppages could have
a material adverse effect on our business, our results of operations and financial condition.
Cyber security incidents could have a significant operational and financial impact.
We store customers' proprietary business information in our facilities through our colocation, managed services and cloud
computing services. In addition, we maintain certain sensitive customer information in our financial and operating systems.
While we have implemented data security polices and other internal controls to safeguard and protect against misuse or loss of
this information, if their data were compromised through a cyber security incident, it could have a significant impact on our
results of operations and financial condition.