Windstream 2014 Annual Report Download - page 194

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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13. 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 facility 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.
Upon completing an internal legal entity restructuring, as of January 1, 2014, certain of Windstream Corp.’s guarantor and non-
guarantor subsidiaries were merged with and into Windstream Corp. Prior period information has been revised to reflect the change
in our legal entity structure.
The following information presents condensed consolidating and combined statements of comprehensive income (loss) for the
years ended December 31, 2014, 2013 and 2012, condensed consolidating balance sheets as of December 31, 2014 and 2013, and
condensed consolidating and combined statements of cash flows for the years ended December 31, 2014, 2013 and 2012 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 Consolidating Statement of Comprehensive Income (Loss)
For the Year Ended December 31, 2014
(Millions)
Windstream
Corp. Guarantors
Non-
Guarantors Eliminations Consolidated
Revenues and sales:
Service revenues $ — $ 1,029.1 $ 4,642.5 $ (24.0) $ 5,647.6
Product sales — 41.1 140.8 — 181.9
Total revenues and sales — 1,070.2 4,783.3 (24.0) 5,829.5
Costs and expenses:
Cost of services — 392.3 2,346.6 (19.6) 2,719.3
Cost of products sold — 39.8 116.8 — 156.6
Selling, general and administrative — 99.3 886.6 (4.4) 981.5
Depreciation and amortization 21.9 300.0 1,064.5 — 1,386.4
Merger and integration costs — — 40.4 — 40.4
Restructuring charges — 6.1 29.8 — 35.9
Total costs and expenses 21.9 837.5 4,484.7 (24.0) 5,320.1
Operating (loss) income (21.9) 232.7 298.6 — 509.4
Earnings from consolidated subsidiaries 217.3 30.6 3.7 (251.6)—
Other (expense) income, net (0.2) 162.9 (162.6)—0.1
Intercompany interest income (expense) 127.2 (53.7)(73.5)— —
Interest expense (523.9)(6.4)(41.5)—
(571.8)
(Loss) income before income taxes (201.5) 366.1 24.7 (251.6)(62.3)
Income tax (benefit) expense (163.4) 126.0 13.2 — (24.2)
Net (loss) income $ (38.1) $ 240.1 $ 11.5 $ (251.6)$ (38.1)
Comprehensive (loss) income $ (54.5) $ 240.1 $ 11.5 $ (251.6)$ (54.5)