Windstream 2014 Annual Report Download - page 144

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qualified pension plan assets by 50 basis points (from 7.0 percent to 6.5 percent) would result in a decrease in our projected pension
income of approximately $5.0 million in 2015.
The discount rate selected is derived by identifying a theoretical settlement portfolio of high quality corporate bonds sufficient to
provide for the plan’s projected benefit payments. The values of the plan’s projected benefit payments are matched to the cash
flows of the theoretical settlement bond portfolio to arrive at a single equivalent discount rate that aligns the present value of the
required cash flows with the market value of the bond portfolio. The discount rate determined on this basis was 4.14 percent at
December 31, 2014. Lowering the discount rate by 25 basis points (from 4.14 percent to 3.89 percent) would result in a decrease
in our projected pension income of approximately $39.5 million in 2015.
See Notes 2 and 7 to the consolidated financial statements for additional information on our pension plans.
Income Taxes
Our estimates of income taxes and the significant items resulting in the recognition of deferred tax assets and liabilities are disclosed
in Note 11 to the consolidated financial statements and reflect our assessment of future tax consequences of transactions that have
been reflected in our financial statements or tax returns for each taxing jurisdiction in which we operate. Actual income taxes to
be paid could vary from these estimates due to future changes in income tax law or the outcome of audits completed by federal
and state taxing authorities. Included in the calculation of our annual income tax expense are the effects of changes, if any, to our
income tax reserves for uncertain tax positions. We maintain income tax reserves for potential assessments from the IRS or other
taxing authorities. The reserves are determined in accordance with authoritative guidance and are adjusted, from time to time,
based upon changing facts and circumstances. Changes to the income tax reserves could materially affect our future consolidated
operating results in the period of change. In addition, a valuation allowance is recorded to reduce the carrying amount of deferred
tax assets unless it is more likely than not that such assets will be realized.
Recently Issued Authoritative Guidance
The following authoritative guidance, together with our evaluation of the related impact to the consolidated financial statements,
is more fully described in Note 2.
 Revenue Recognition
 Discontinued Operations
Forward-Looking Statements
This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes, and future filings on Form
10-K, Form 10-Q and Form 8-K and future oral and written statements by us and our management may include, certain forward-
looking statements. We claim the protection of the safe-harbor for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995 for this Annual Report on Form 10-K. Forward looking statements are subject to uncertainties that
could cause actual future events and results to differ materially from those expressed in the forward-looking statements. Forward
looking statements include, but are not limited to, statements about our expectation to return a significant portion of our cash flow
to shareholders through our dividend, our expectation to maintain our current dividend practice at the current rate of dividend,
expected levels of support from universal service funds or other government programs, expected rates of loss of voice lines or
inter-carrier compensation, expected increases in high-speed Internet and business data connections, our expected ability to fund
operations, expected required contributions to our pension plan, capital expenditures and certain debt maturities from cash flows
from operations, expected synergies and other benefits from completed acquisitions, expected effective federal income tax rates,
expected annualized savings from the management restructuring, the amounts expected to be received from the Rural Utilities
Service and the Connect America Fund to fund the deployment of broadband services and the expected benefits of those services
and forecasted capital expenditure amounts. These and other forward-looking statements are based on estimates, projections,
beliefs, and assumptions that we believe are reasonable but are not guarantees of future events and results. Actual future events
and our results may differ materially from those expressed in these forward-looking statements as a result of a number of important
factors.
Factors that could cause actual results to differ materially from those contemplated in our forward looking statements include,
among others:
 further adverse changes in economic conditions in the markets served by us;