Windstream 2013 Annual Report Download - page 214

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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14. Supplemental Guarantor Information:
Debentures and notes, without collateral, issued by Windstream Corporation
In connection with the issuance of the 7.875 percent senior notes due November 1, 2017, the 8.125 percent senior notes due
September 1, 2018, the 7.750 percent senior notes due October 15, 2020, the 7.750 percent senior notes due October 1, 2021,
the 7.500 percent senior notes due June 1, 2022, the 7.500 percent senior notes due April 1, 2023 and the 6.375 percent senior
notes due August 1, 2023 ("the guaranteed notes"), certain of Windstream Corp.'s wholly-owned subsidiaries (the
"Guarantors"), provide guarantees of those debentures. These guarantees are full and unconditional, subject to certain
customary release provisions, as well as joint and several. All personal property assets and related operations of the Guarantors
are pledged as collateral on the senior secured credit facilities of Windstream Corp. Certain Guarantors may be subject to
restrictions on their ability to distribute earnings to Windstream Corp. The remaining subsidiaries of Windstream Corp. (the
"Non-Guarantors") 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. Windstream Holdings
is not a guarantor of any Windstream Corp. debt instruments.
The following information presents condensed consolidated and combined statements of comprehensive income for the years
ended December 31, 2013, 2012 and 2011, condensed consolidated balance sheets as of December 31, 2013 and 2012, and
condensed consolidated and combined statements of cash flows for the years ended December 31, 2013, 2012 and 2011 of the
Windstream Corp., the Guarantors and the Non-Guarantors. Investments consist of investments in net assets of subsidiaries
held by Windstream Corp. and other subsidiaries, and have been presented using the equity method of accounting.
Condensed Consolidated Statement of Comprehensive Income
For the Year Ended December 31, 2013
(Millions) Windstream
Corp. Guarantors Non-
Guarantors Eliminations Consolidated
Revenues and sales:
Service revenues $ — $ 1,050.7 $ 4,755.2 $ (30.4) $ 5,775.5
Product sales — 54.4 158.2 — 212.6
Total revenues and sales — 1,105.1 4,913.4 (30.4) 5,988.1
Costs and expenses:
Cost of services — 337.6 2,180.1 (25.6) 2,492.1
Cost of products sold — 53.7 130.2 — 183.9
Selling, general and administrative — 59.2 868.5 (4.8) 922.9
Depreciation and amortization — 317.3 1,023.6 — 1,340.9
Merger and integration costs — — 29.2 — 29.2
Restructuring charges — 1.6 8.0 — 9.6
Total costs and expenses — 769.4 4,239.6 (30.4) 4,978.6
Operating income — 335.7 673.8 — 1,009.5
Earnings from consolidated subsidiaries 500.0 44.0 5.0 (549.0) —
Other income (expense), net 2.0 167.1 (181.6) — (12.5)
Loss on early extinguishment of debt (17.2) — (11.3) — (28.5)
Intercompany interest income (expense) 154.1 (95.4)(58.7) — —
Interest expense (584.6)(5.8)(37.3) — (627.7)
Income from continuing operations before
income taxes 54.3 445.6 389.9 (549.0) 340.8
Income tax (benefit) expense (187.0) 145.5 147.0 — 105.5
Income from continuing operations 241.3 300.1 242.9 (549.0) 235.3
Discontinued operations — — 6.0 — 6.0
Net income $ 241.3 $ 300.1 $ 248.9 $ (549.0) $ 241.3
Comprehensive income $ 263.4 $ 300.1 $ 248.9 $ (549.0) $ 263.4