Windstream 2015 Annual Report Download - page 229

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
____
F-99
18. Quarterly Financial Information – (Unaudited):
For the Year Ended December 31, 2015
(Millions, except per share amounts) Total 4th 3rd 2nd 1st
Revenues and sales $ 5,765.3 $ 1,427.0 $ 1,498.6 $ 1,421.1 $ 1,418.6
Operating income $ 509.4 $ 131.7 $ 178.5 $ 79.3 $ 119.9
Net income (loss) $ 27.4 $ 140.5 $ (7.2) $ (111.2) $ 5.3
Basic and diluted earnings (loss) per share: (a)
Net income (loss) $.24 $1.41 ($.08)($1.13) $.05
For the Year Ended December 31, 2014
(Millions, except per share amounts) Total 4th 3rd 2nd 1st
Revenues and sales $ 5,829.5 $ 1,443.1 $ 1,455.5 $ 1,466.0 $ 1,464.9
Operating income $ 507.1 $ 20.5 $ 151.6 $ 167.2 $ 167.8
Net (loss) income $ (39.5) $ (77.5) $ 8.0 $ 14.0 $ 16.0
Basic and diluted (loss) earnings per share: (a)
Net (loss) income ($.45)($.80) $.07 $.13 $.15
(a) Quarterly earnings (loss) per share amounts may not add to full-year earnings per share amounts due to the difference in
weighted-average common shares for the quarters compared to the weighted-average common shares for the year.
Significant events affecting our historical operating trends in the quarterly periods were as follows:
• As discussed in Note 2, we recognized a pretax gain of $326.1 million from the sale of our data center business in the
fourth quarter of 2015. This gain increased net income by $199.7 million.
• Revenues and sales and operating income for the third quarter of 2015 were favorably impacted by $72.8 million of
incremental CAF Phase II support received in August that was retroactive to January 1, 2015.
• Operating income for the second quarter of 2015 was adversely impacted by $54.5 million of transaction costs related
to the REIT spin-off, including investment banker, legal and accounting fees. (See Note 10).
• Net income (loss) for the second, third and fourth quarters of 2015 was adversely impacted by additional interest expense
of $96.0 million, $128.2 million and $127.4 million, respectively, attributable to the long-term lease obligation under the
master lease agreement with CS&L. This additional interest expense decreased net income $78.0 million in the fourth
quarter of 2015 and increased the net loss $58.8 million and $78.5 million in the second and third quarters of 2015,
respectively. (See Note 5).
• As discussed in Note 8, we recognize actuarial gains and losses for pension benefits as a component of net periodic benefit
expense (income) in the fourth quarter of each year, unless an earlier measurement date is required. Results of operations
for the fourth quarter of 2015 and 2014 include pretax actuarial losses related to pension benefits of $8.7 million and
$128.6 million or an after-tax charge of $5.3 million and $79.3 million, respectively.
19. Subsequent Events:
During January and February 2016, Windstream Services repurchased in the open market $154.2 million aggregate principal
amount of its senior unsecured notes, consisting of $93.5 million of its 2017 Notes, $33.1 million of its 2021 Notes, $17.0 million
of its 2022 Notes, and $10.6 million of its 2023 Notes. The repurchases were made pursuant to the debt repurchase program
approved by Windstream Services’ board of directors in 2015.
During January and February 2016, Windstream Holdings repurchased in the open market $28.8 million of its common shares,
thereby completing its $75.0 million stock repurchase program that had been authorized by our board of directors in August 2015.