Windstream 2015 Annual Report Download - page 122

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WINDSTREAM HOLDINGS, INC.
WINDSTREAM SERVICES, LLC
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
(Millions)
Column A Column B Column C Column D Column E
Additions
Description
Balance at
Beginning
of Period
Charged to
Cost and
Expenses
Charged
to Other
Accounts Deductions
Balance at
End of
Period
Allowance for doubtful accounts,
customers and others:
For the years ended:
December 31, 2015 $ 43.4 $ 47.1 $ — $ 57.4 (a) $ 33.1
December 31, 2014 $ 40.0 $ 54.8 $ — $ 51.4 (a) $ 43.4
December 31, 2013 $ 42.6 $ 63.5 $ — $ 66.1 (a) $ 40.0
Valuation allowance for deferred tax assets:
For the years ended:
December 31, 2015 $ 94.9 $ 3.8 $ 75.4 (b) $ 26.2 (c) $ 147.9
December 31, 2014 $ 84.9 $ 10.0 $ — $ — $ 94.9
December 31, 2013 $ 85.9 $ 7.1 $ — $ 8.1 (d) $ 84.9
Accrued liabilities related to merger,
integration and restructuring charges:
For the years ended:
December 31, 2015 $ 11.2 $ 115.7 (e) $ — $ 121.8 (h) $ 5.1
December 31, 2014 $ 14.0 $ 76.3 (f) $ — $ 79.1 (h) $ 11.2
December 31, 2013 $ 20.1 $ 38.8 (g) $ — $ 44.9 (h) $ 14.0
Notes:
(a) Accounts charged off net of recoveries of amounts previously written off.
(b) Reflects adjustment to valuation allowances on net operating loss carryforwards due to the effects of the REIT spin-off,
which was charged to additional paid-in capital.
(c) Reduction of valuation allowances on net operating loss carryforwards due to the effects of the reorganization of certain
subsidiaries to limited liability companies completed during the first quarter of 2015.
(d) Reversal of valuation allowances on net operating loss carryforwards realized due to the sale of Pinnacle Software
Company and on capital loss carryforwards realized as a result of capital gains recognized.
(e) Costs primarily consist of charges incurred related to the REIT spin-off, the sale of our data center business and charges
related to a network optimization project designed to consolidate traffic onto network facilities operated by us and reduce
the usage of other carriers’ networks, including service areas acquired in the PAETEC acquisition. Restructuring charges
primarily include severance and other employee benefit costs resulting from workforce reductions completed during the
year and costs incurred related to a special shareholder meeting.
(f) Costs primarily consist of charges for various information technology conversions, consulting fees and other expenses
incurred related to the REIT spin-off and severance and other employee benefit costs resulting from workforce reductions
completed during the year.
(g) Costs primarily represent charges related to information technology conversions and network efficiency projects.
(h) Represents cash outlays for merger, integration and restructuring costs.
See Note 10, “Merger, Integration and Restructuring Charges”, to the consolidated financial statements on page F-82 in the Financial
Supplement, which is incorporated herein by reference, for additional information regarding the merger, integration and
restructuring charges recorded by us in 2015, 2014 and 2013.