Windstream 2015 Annual Report Download - page 84

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Windstream Holdings, Inc.
Windstream Services, LLC
Form 10-K, Part I
Item 1. Business
THE COMPANY
Unless the context indicates otherwise, the terms “Windstream,” “we,” “us” or “our” refer to Windstream Holdings, Inc. and its
subsidiaries, including Windstream Services, LLC, and the term “Windstream Services” refers to Windstream Services, LLC and
its subsidiaries.
ORGANIZATIONAL STRUCTURE
Windstream Holdings, Inc. (“Windstream Holdings”) is a publicly traded holding company and the parent of Windstream Services,
LLC (“Windstream Services”), formerly Windstream Corporation. Windstream Holdings common stock trades on the Nasdaq
Global Select Market (“NASDAQ”) under the ticker symbol “WIN”. Effective February 28, 2015, Windstream Corporation was
converted to a limited liability company (“LLC”). Following the conversion, Windstream Holdings owns a 100 percent interest
in Windstream Services. Windstream Services and its guarantor subsidiaries are the sole obligors of all outstanding debt obligations
and, as a result, also file periodic reports with the Securities and Exchange Commission (“SEC”). Windstream Holdings is not a
guarantor of nor subject to the restrictive covenants included in any of Windstream Services’ debt agreements. The Windstream
Holdings board of directors and officers oversee both companies.
OVERVIEW
We are a leading provider of advanced network communications and technology solutions for consumers, businesses, enterprise
organizations and carrier partners across the United States. We provide data, cloud solutions, unified communications and managed
services to small business and enterprise clients. We also offer bundled services, including broadband, security solutions, voice
and digital television to consumers. We supply core transport solutions on a local and long-haul fiber-optic network spanning
approximately 125,000, the sixth largest fiber network in the nation.
Our vision is to provide a best-in-class customer experience through a world-class network. Our “network first” strategy entails
leveraging our existing infrastructure and investing in the latest technologies to create significant value for both our customers
and our shareholders. We implemented a new business unit organizational structure focused on our core customer relationships to
strengthen our ability to achieve our operational, strategic and financial goals. Our new structure segments our business operations
around our four core customer groups: Consumer and Small Business - ILEC, Carrier, Enterprise, and Small Business - CLEC,
as further defined below. This structure aligns all aspects of the customer relationship (sales, service delivery, and customer service)
to improve accountability to the customer and sharpen our operational focus.
We differentiate our business customers between enterprise and small business primarily based on the monthly recurring revenue
generated from the customer with enterprise customers comprising those relationships that generate $1,500 or more in monthly
recurring revenue and small business customers comprising those relationships that generate less than $1,500 per month. Our small
business customer base is further disaggregated between those customers located in service areas in which we are the incumbent
local exchange carrier (“ILEC”) and provide services over network facilities operated by us and those customers located in services
areas in which we are a competitive local exchange carrier (“CLEC”) and provide services over network facilities primarily leased
from other carriers. Under our new organizational structure, we have combined our Consumer and Small Business ILEC operations
due to similarities between these customers with respect to service offerings, marketing strategies and customer service delivery,
as both of these businesses are focused on broadband revenue growth driven by our continued investment in our broadband network.
We have a focused operational strategy for each business with the overall objective to improve our consolidated operational and
financial results and reach our goal of stabilizing and growing adjusted OIBDA, which is defined as operating income plus
depreciation and amortization, adjusted to exclude the impact of restructuring charges, pension expense and share-based
compensation.