Windstream 2014 Annual Report Download - page 189
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-73
9. Merger, Integration and Restructuring Charges, Continued:
The following is a summary of the merger, integration and restructuring charges recorded for the years ended December 31:
(Millions) 2014 2013 2012
Merger and integration costs
Transaction costs associated with acquisitions $ — $ — $ 7.1
Employee related transition costs — 7.8 20.3
Information technology conversion costs 20.8 9.5 6.1
Rebranding, consulting and other costs 19.6 12.9 31.9
Total merger and integration costs 40.4 30.2 65.4
Restructuring charges 35.9 8.6 27.2
Total merger, integration and restructuring charges $ 76.3 $ 38.8 $ 92.6
After giving consideration to tax benefits on deductible items, the effect of merger, integration and restructuring charges resulted
in an after-tax charge of $46.6 million, $24.3 million and $58.2 million for the years ended December 31, 2014, 2013 and 2012,
respectively.
The following is a summary of the activity related to the liabilities associated with our merger, integration and restructuring charges
at December 31:
(Millions) 2014 2013
Balance, beginning of period $ 14.0 $ 20.1
Merger, integration and restructuring charges 76.3 38.8
Cash outlays during the period (79.1)(44.9)
Balance, end of period $ 11.2 $ 14.0
As of December 31, 2014, unpaid merger, integration and restructuring liabilities consisted of $4.3 million primarily associated
with the restructuring initiatives and $6.9 million related to merger and integration activities. Payments of these liabilities will be
funded through operating cash flows.
10. Accumulated Other Comprehensive Income:
Accumulated other comprehensive income balances, net of tax, were as follows for the years ended December 31:
(Millions) 2014 2013 2012
Pension and postretirement plans $ 14.5 $ 26.4 $ 43.9
Unrealized holding gains (losses) on interest rate swaps
Designated portion 3.1 17.4 (9.1)
De-designated portion (5.5)(15.3)(28.4)
Accumulated other comprehensive income $ 12.1 $ 28.5 $ 6.4
Changes in accumulated other comprehensive (loss) income balances, net of tax, were as follows:
(Millions)
Gains (Losses)
on Interest
Rate Swaps
Pension and
Postretirement
Plans Total
Balance at December 31, 2013 $ 2.1 $ 26.4 $ 28.5
Other comprehensive loss before reclassifications (14.3)(2.2)(16.5)
Amounts reclassified from other accumulated comprehensive income (a) 9.8 (9.7)0.1
Balance at December 31, 2014 $ (2.4) $ 14.5 $ 12.1
(a) See separate table below for details about these reclassifications.