Windstream 2014 Annual Report Download - page 202

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
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F-86
13. 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. 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.
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.
PAETEC
Issuer Guarantors
Non-
Guarantors Eliminations Consolidated
Revenues and sales:
Service revenues $ — $ — $ 1,948.6 $ 3,702.9 $ (3.9) $ 5,647.6
Product sales — — 124.5 57.9 (0.5) 181.9
Total revenues and sales — — 2,073.1 3,760.8 (4.4) 5,829.5
Costs and expenses:
Cost of services — — 1,245.8 1,476.6 (3.1) 2,719.3
Cost of products sold — — 102.6 54.4 (0.4) 156.6
Selling, general and administrative — — 541.2 441.1 (0.8) 981.5
Depreciation and amortization 21.9 — 423.3 941.2 — 1,386.4
Merger and integration costs — — — 40.4 — 40.4
Restructuring charges — — 12.8 23.1 — 35.9
Total costs and expenses 21.9 — 2,325.7 2,976.8 (4.3) 5,320.1
Operating (loss) income (21.9) — (252.6) 784.0 (0.1) 509.4
Earnings (losses) from consolidated
subsidiaries 217.3 (138.6) 0.1 0.6 (79.4)—
Other (expense) income, net (0.2) — 0.2 0.1 — 0.1
Intercompany interest income (expense) 127.2 — — (127.2)— —
Interest (expense) income (523.9) (38.4)0.3 (9.8)—
(571.8)
(Loss) income before income taxes (201.5) (177.0)(252.0) 647.7 (79.5)(62.3)
Income tax (benefit) expense (163.4) (16.6)(91.9) 247.7 — (24.2)
Net (loss) income $ (38.1) $ (160.4)$ (160.1) $ 400.0 $ (79.5)$ (38.1)
Comprehensive (loss) income $ (54.5) $ (160.4)$ (160.1) $ 400.0 $ (79.5)$ (54.5)