Windstream 2015 Annual Report Download - page 107

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Item 2. Properties
Our property, plant and equipment consists primarily of land and buildings, office and warehouse facilities, central office equipment,
software, outside plant and related equipment. Outside communications plant includes aerial and underground cable, conduit,
poles and wires. Central office equipment includes digital switches and peripheral equipment. As such, our properties do not
provide a basis for description by character or location of principal units. All of our property is considered to be in good working
condition and suitable for its intended purpose.
Our gross investment in property, by category, as of December 31, 2015, was as follows:
(Millions)
Assets
Owned by
Windstream
Assets
Leased from
CS&L (a) Total
Land $ 14.8 $ 28.6 $ 43.4
Building and improvements 290.8 314.1 604.9
Central office equipment 6,013.0 0.9 6,013.9
Outside communications plant 1,500.3 5,745.0 7,245.3
Furniture, vehicles and other equipment 1,655.6 4.6 1,660.2
Total $ 9,474.5 $ 6,093.2 $ 15,567.7
(a) In connection with the spin-off (see Note3), Windstream Holdings entered into a long-term triple-net master lease with
CS&L to lease back the telecommunications network assets. For financial reporting purposes, the transaction was
accounted for as a failed spin-leaseback. As a result, the net book value of the network assets transferred to CS&L continue
to be reported in our consolidated balance sheet.
Certain of our properties are pledged as collateral to secure long-term debt obligations of Windstream Services. The obligations
under Windstream Services’ senior secured credit facility are secured by liens on all of the personal property assets and the related
operations of our subsidiaries who are guarantors of the senior secured credit facility.