Windstream 2013 Annual Report Download - page 141

F-5
ORGANIZATION AND RESULTS OF OPERATIONS
We provide a wide range of telecommunication services, from advanced data solutions for businesses to basic voice services.
Our sales, marketing and customer support teams are structured based upon the type of customer they serve. We deliver these
services over owned or leased network facilities. Our corporate support teams, such as finance and accounting, human
resources and legal, support our operations as a whole.
The following table reflects the consolidated operating results of Windstream Holdings as of December 31:
(Dollars in millions) (a) (b) 2013 2012 2011
Revenues and sales:
Service revenues:
Business $ 3,663.4 $ 3,611.4 $ 2,098.0
Consumer 1,296.4 1,339.5 1,378.3
Wholesale 593.5 708.0 547.3
Other 222.2 249.4 129.4
Total service revenues 5,775.5 5,908.3 4,153.0
Product sales 212.6 231.2 126.6
Total revenues and sales 5,988.1 6,139.5 4,279.6
Costs and expenses:
Cost of services (exclusive of depreciation and amortization included below) 2,492.1 2,692.2 1,691.1
Cost of products sold 183.9 206.6 105.1
Selling, general, and administrative 923.4 967.3 601.9
Depreciation and amortization 1,340.9 1,296.9 847.5
Merger and integration costs 29.2 65.4 69.8
Restructuring charges 9.6 27.2 1.3
Total costs and expenses 4,979.1 5,255.6 3,316.7
Operating income 1,009.0 883.9 962.9
Other (expense) income, net (12.5) 4.6 (0.1)
(Loss) gain on early extinguishment of debt (28.5) 1.9 (136.1)
Interest expense (627.7)(625.1)(558.3)
Income from continuing operations before income taxes 340.3 265.3 268.4
Income taxes 105.3 98.2 99.4
Income from continuing operations 235.0 167.1 169.0
Discontinued operations, net of tax 6.0 0.9 0.5
Net income $ 241.0 $ 168.0 $ 169.5
(a) Results from operations include post-acquisition results from PAETEC operations. In the discussion and analysis
provided below regarding changes in consolidated revenues and expenses in 2012, the impact of the PAETEC
acquisition on these changes is considered to be the revenues and expenses recognized during the period of the year
for which results from the PAETEC operations are not included in the comparative prior year period.
(b) Certain prior year amounts have been reclassified to conform to the current year financial statement presentation.
These reclassifications did not impact net income or comprehensive income.