Windstream 2013 Annual Report Download - page 222

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-86
14. Supplemental Guarantor Information, Continued:
Debentures and notes, issued by PAETEC Holding Corporation
In connection with the acquisition of PAETEC on November 30, 2011, Windstream Corp. (the "Parent") acquired the PAETEC
2018 Notes ("the guaranteed notes"). Windstream Corp. and all former wholly-owned subsidiaries of PAETEC (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. Certain Guarantors may be subject to restrictions on their ability to distribute
earnings to Windstream Corp.. The remaining subsidiaries (the "Non-Guarantors") of Windstream Corp. are not guarantors of
these guaranteed notes.
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
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. PAETEC Issuer Guarantors Non-
Guarantors Eliminations Consolidated
Revenues and sales:
Service revenues $ — $ — $ 1,940.7 $ 3,841.9 $ (7.1) $ 5,775.5
Product sales — — 140.2 74.5 (2.1) 212.6
Total revenues and sales — — 2,080.9 3,916.4 (9.2) 5,988.1
Costs and expenses:
Cost of services — — 1,166.1 1,329.2 (3.2) 2,492.1
Cost of products sold — — 111.1 75.3 (2.5) 183.9
Selling, general and administrative — — 521.5 403.5 (2.1) 922.9
Depreciation and amortization — — 396.7 944.2 — 1,340.9
Merger and integration costs — — (0.4) 29.6 — 29.2
Restructuring charges — — 3.4 6.2 — 9.6
Total costs and expenses — — 2,198.4 2,788.0 (7.8) 4,978.6
Operating (loss) income — — (117.5) 1,128.4 (1.4) 1,009.5
Earnings (losses) from consolidated
subsidiaries 500.0 (66.4)(0.2) 0.3 (433.7) —
Other income (expense), net 2.0 — 0.9 (15.4) — (12.5)
Loss on early extinguishment of debt (17.2) (11.3) — — — (28.5)
Intercompany interest income (expense) 154.1 — — (154.1) — —
Interest (expense) income (584.6) (40.9) 0.2 (2.4) — (627.7)
Income (loss) from continuing operations
before income taxes 54.3 (118.6)(116.6) 956.8 (435.1) 340.8
Income tax (benefit) expense (187.0) (19.3)(36.9) 348.4 0.3 105.5
Income (loss) from continuing operations 241.3 (99.3)(79.7) 608.4 (435.4) 235.3
Discontinued operations — — 6.0 — — 6.0
Net income (loss) $ 241.3 $ (99.3) $ (73.7) $ 608.4 $ (435.4) $ 241.3
Comprehensive income (loss) $ 263.4 $ (99.3) $ (73.7) $ 608.4 $ (435.4) $ 263.4