Windstream 2014 Annual Report Download - page 110

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WINDSTREAM HOLDINGS, INC.
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, 2014 $ 40.0 $ 54.8 $ — $ 51.4 (a) $ 43.4
December 31, 2013 $ 42.6 $ 63.5 $ — $ 66.1 (a) $ 40.0
December 31, 2012 $ 29.9 $ 59.4 $ — $ 46.7 (a) $ 42.6
Valuation allowance for deferred tax assets:
For the years ended:
December 31, 2014 $ 84.9 $ 10.0 $ — $ — $ 94.9
December 31, 2013 $ 85.9 $ 7.1 $ — $ 8.1 (b) $ 84.9
December 31, 2012 $ 165.9 $ 0.4 $ — $ 80.4 (c) $ 85.9
Accrued liabilities related to merger,
integration and restructuring charges:
For the years ended:
December 31, 2014 $ 14.0 $ 76.3 (d) $ — $ 79.1 (f) $ 11.2
December 31, 2013 $ 20.1 $ 38.8 (e) $ — $ 44.9 (f) $ 14.0
December 31, 2012 $ 12.9 $ 92.6 (g) $ — $ 85.4 (f) $ 20.1
Notes:
(a) Accounts charged off net of recoveries of amounts previously written off.
(b) Reversal of valuation allowances on net operating loss carryforwards realized due to the sale of Pinnacle Software
Company and on capital loss carryforwards realized as a result of capital gains recognized.
(c) Represents adjustment recorded through goodwill to valuation allowance for deferred taxes related to expected realization
of net operating losses assumed from acquisition of PAETEC.
(d) Costs primarily consist of charges for various information technology conversions, consulting fees and other expenses
incurred related to the proposed spin-off of certain telecommunications network assets, and severance and other employee
benefit costs resulting from workforce reductions completed during the year.
(e) Costs primarily represent charges related to information technology conversions and network efficiency projects.
(f) Represents cash outlays for merger, integration and restructuring costs.
(g) Costs primarily include charges for accounting, legal, broker fees and other miscellaneous costs associated with the
acquisitions of NuVox, Q-Comm and PAETEC. In addition, we incurred employee transition costs, primarily severance
related, in conjunction with the integration of NuVox, Q-Comm and PAETEC.
See Note 9, “Merger, Integration and Restructuring Charges”, to the consolidated financial statements on page F-72 in the Financial
Supplement, which is incorporated herein by reference, for additional information regarding the merger, integration and
restructuring charges recorded by us in 2014, 2013 and 2012.