Supplemental Guarantor Information: (Tables) | 12 Months Ended |
Dec. 31, 2013 |
Condensed Financial Information Disclosure [Abstract] | ' |
Condensed Consolidated Statement of Comprehensive Income | ' |
STATEMENT OF COMPREHENSIVE INCOME |
For the period of August 30, 2013 (date of formation) to December 31, 2013 |
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(Millions) | | | | | | | | | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | |
Selling, general, and administrative | | $ | 0.5 | | | | | | | | | | | | | | | | | | | | | |
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Total costs and expenses | | 0.5 | | | | | | | | | | | | | | | | | | | | | |
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Operating loss | | (0.5 | ) | | | | | | | | | | | | | | | | | | | | |
Loss before income taxes and equity in subsidiaries | | (0.5 | ) | | | | | | | | | | | | | | | | | | | | |
Income tax benefit | | (0.2 | ) | | | | | | | | | | | | | | | | | | | | |
Loss before equity in subsidiaries | | (0.3 | ) | | | | | | | | | | | | | | | | | | | | |
Equity earnings from subsidiaries | | 137.6 | | | | | | | | | | | | | | | | | | | | | |
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Net income | | $ | 137.3 | | | | | | | | | | | | | | | | | | | | | |
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Comprehensive income | | $ | 134.4 | | | | | | | | | | | | | | | | | | | | | |
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| | Condensed Consolidated Statement of Comprehensive Income | | | | |
| | For the Year Ended December 31, 2013 | | | | |
(Millions) | | Windstream Corp. | | Guarantors | | Non- | | Eliminations | | Consolidated | | | | |
Guarantors | | | | |
Revenues and sales: | | | | | | | | | | | | | | |
Service revenues | | $ | — | | | $ | 1,050.70 | | | $ | 4,755.20 | | | $ | (30.4 | ) | | $ | 5,775.50 | | | | | |
| | | |
Product sales | | — | | | 54.4 | | | 158.2 | | | — | | | 212.6 | | | | | |
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Total revenues and sales | | — | | | 1,105.10 | | | 4,913.40 | | | (30.4 | ) | | 5,988.10 | | | | | |
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Costs and expenses: | | | | | | | | | | | | | | |
Cost of services | | — | | | 337.6 | | | 2,180.10 | | | (25.6 | ) | | 2,492.10 | | | | | |
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Cost of products sold | | — | | | 53.7 | | | 130.2 | | | — | | | 183.9 | | | | | |
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Selling, general and administrative | | — | | | 59.2 | | | 868.5 | | | (4.8 | ) | | 922.9 | | | | | |
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Depreciation and amortization | | — | | | 317.3 | | | 1,023.60 | | | — | | | 1,340.90 | | | | | |
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Merger and integration costs | | — | | | — | | | 29.2 | | | — | | | 29.2 | | | | | |
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Restructuring charges | | — | | | 1.6 | | | 8 | | | — | | | 9.6 | | | | | |
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Total costs and expenses | | — | | | 769.4 | | | 4,239.60 | | | (30.4 | ) | | 4,978.60 | | | | | |
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Operating income | | — | | | 335.7 | | | 673.8 | | | — | | | 1,009.50 | | | | | |
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Earnings from consolidated subsidiaries | | 500 | | | 44 | | | 5 | | | (549.0 | ) | | — | | | | | |
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Other income (expense), net | | 2 | | | 167.1 | | | (181.6 | ) | | — | | | (12.5 | ) | | | | |
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Loss on early extinguishment of debt | | (17.2 | ) | | — | | | (11.3 | ) | | — | | | (28.5 | ) | | | | |
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Intercompany interest income (expense) | | 154.1 | | | (95.4 | ) | | (58.7 | ) | | — | | | — | | | | | |
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Interest expense | | (584.6 | ) | | (5.8 | ) | | (37.3 | ) | | — | | | (627.7 | ) | | | | |
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Income from continuing operations before | | 54.3 | | | 445.6 | | | 389.9 | | | (549.0 | ) | | 340.8 | | | | | |
income taxes | | | | |
Income tax (benefit) expense | | (187.0 | ) | | 145.5 | | | 147 | | | — | | | 105.5 | | | | | |
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Income from continuing operations | | 241.3 | | | 300.1 | | | 242.9 | | | (549.0 | ) | | 235.3 | | | | | |
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Discontinued operations | | — | | | — | | | 6 | | | — | | | 6 | | | | | |
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Net income | | $ | 241.3 | | | $ | 300.1 | | | $ | 248.9 | | | $ | (549.0 | ) | | $ | 241.3 | | | | | |
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Comprehensive income | | $ | 263.4 | | | $ | 300.1 | | | $ | 248.9 | | | $ | (549.0 | ) | | $ | 263.4 | | | | | |
| | | |
14. Supplemental Guarantor Information, Continued: |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Comprehensive Income | | | | |
| | For the Year Ended December 31, 2012 | | | | |
(Millions) | | Windstream Corp. | | Guarantors | | Non- | | Eliminations | | Consolidated | | | | |
Guarantors | | | | |
Revenues and sales: | | | | | | | | | | | | | | |
Service revenues | | $ | — | | | $ | 1,080.60 | | | $ | 4,853.10 | | | $ | (25.4 | ) | | $ | 5,908.30 | | | | | |
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Product sales | | — | | | 73 | | | 158.2 | | | — | | | 231.2 | | | | | |
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Total revenues and sales | | — | | | 1,153.60 | | | 5,011.30 | | | (25.4 | ) | | 6,139.50 | | | | | |
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Costs and expenses: | | | | | | | | | | | | | | |
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Cost of services | | — | | | 374.3 | | | 2,335.00 | | | (17.1 | ) | | 2,692.20 | | | | | |
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Cost of products sold | | — | | | 71.9 | | | 134.7 | | | — | | | 206.6 | | | | | |
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Selling, general and administrative | | — | | | 84.7 | | | 890.9 | | | (8.3 | ) | | 967.3 | | | | | |
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Depreciation and amortization | | — | | | 315.2 | | | 981.7 | | | — | | | 1,296.90 | | | | | |
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Merger and integration costs | | — | | | — | | | 65.4 | | | — | | | 65.4 | | | | | |
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Restructuring charges | | — | | | 4.3 | | | 22.9 | | | — | | | 27.2 | | | | | |
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Total costs and expenses | | — | | | 850.4 | | | 4,430.60 | | | (25.4 | ) | | 5,255.60 | | | | | |
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Operating income | | — | | | 303.2 | | | 580.7 | | | — | | | 883.9 | | | | | |
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Earnings from consolidated subsidiaries | | 404.9 | | | 38.9 | | | 4.4 | | | (448.2 | ) | | — | | | | | |
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Other (expense) income, net | | (6.8 | ) | | 185.8 | | | (174.4 | ) | | — | | | 4.6 | | | | | |
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Gain on early extinguishment of debt | | — | | | — | | | 1.9 | | | — | | | 1.9 | | | | | |
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Intercompany interest income (expense) | | 152.8 | | | (98.9 | ) | | (53.9 | ) | | — | | | — | | | | | |
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Interest expense | | (540.9 | ) | | (5.4 | ) | | (78.8 | ) | | — | | | (625.1 | ) | | | | |
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Income from continuing operations before | | 10 | | | 423.6 | | | 279.9 | | | (448.2 | ) | | 265.3 | | | | | |
income taxes | | | | |
Income tax (benefit) expense | | (158.0 | ) | | 143.4 | | | 112.8 | | | — | | | 98.2 | | | | | |
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Income from continuing operations | | 168 | | | 280.2 | | | 167.1 | | | (448.2 | ) | | 167.1 | | | | | |
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Discontinued operations | | — | | | — | | | 0.9 | | | — | | | 0.9 | | | | | |
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Net income | | $ | 168 | | | $ | 280.2 | | | $ | 168 | | | $ | (448.2 | ) | | $ | 168 | | | | | |
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Comprehensive income | | $ | 172.5 | | | $ | 280.2 | | | $ | 168 | | | $ | (448.2 | ) | | $ | 172.5 | | | | | |
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|
14. Supplemental Guarantor Information, Continued: |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Comprehensive Income | | | | |
| | For the Year Ended December 31, 2011 | | | | |
(Millions) | | Windstream Corp. | | Guarantors | | Non- | | Eliminations | | Consolidated | | | | |
Guarantors | | | | |
Revenues and sales: | | | | | | | | | | | | | | |
Service revenues | | $ | — | | | $ | 1,084.50 | | | $ | 3,090.40 | | | $ | (21.9 | ) | | $ | 4,153.00 | | | | | |
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Product sales | | — | | | 61.2 | | | 65.4 | | | — | | | 126.6 | | | | | |
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Total revenues and sales | | — | | | 1,145.70 | | | 3,155.80 | | | (21.9 | ) | | 4,279.60 | | | | | |
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Costs and expenses: | | | | | | | | | | | | | | |
Cost of services | | — | | | 375.2 | | | 1,328.20 | | | (12.3 | ) | | 1,691.10 | | | | | |
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Cost of products sold | | — | | | 55.8 | | | 49.3 | | | — | | | 105.1 | | | | | |
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Selling, general and administrative | | — | | | 102.7 | | | 508.8 | | | (9.6 | ) | | 601.9 | | | | | |
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Depreciation and amortization | | — | | | 320.3 | | | 527.2 | | | — | | | 847.5 | | | | | |
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Merger and integration costs | | — | | | — | | | 69.8 | | | — | | | 69.8 | | | | | |
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Restructuring charges | | — | | | 0.3 | | | 1 | | | — | | | 1.3 | | | | | |
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Total costs and expenses | | — | | | 854.3 | | | 2,484.30 | | | (21.9 | ) | | 3,316.70 | | | | | |
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Operating income | | — | | | 291.4 | | | 671.5 | | | — | | | 962.9 | | | | | |
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Earnings (losses) from consolidated subsidiaries | | 477.7 | | | (1.2 | ) | | 4.7 | | | (481.2 | ) | | — | | | | | |
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Other (expense) income, net | | (3.8 | ) | | 179.7 | | | (176.0 | ) | | — | | | (0.1 | ) | | | | |
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Loss on early extinguishment of debt | | (136.1 | ) | | — | | | — | | | — | | | (136.1 | ) | | | | |
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Intercompany interest income (expense) | | 167.2 | | | (104.8 | ) | | (62.4 | ) | | — | | | — | | | | | |
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Interest expense | | (547.3 | ) | | (5.2 | ) | | (5.8 | ) | | — | | | (558.3 | ) | | | | |
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(Loss) income from continuing operations before | | (42.3 | ) | | 359.9 | | | 432 | | | (481.2 | ) | | 268.4 | | | | | |
income taxes | | | | |
Income tax (benefit) expense | | (211.8 | ) | | 113.9 | | | 197.3 | | | — | | | 99.4 | | | | | |
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Income from continuing operations | | 169.5 | | | 246 | | | 234.7 | | | (481.2 | ) | | 169 | | | | | |
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Discontinued operations | | — | | | — | | | 0.5 | | | — | | | 0.5 | | | | | |
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Net income | | $ | 169.5 | | | $ | 246 | | | $ | 235.2 | | | $ | (481.2 | ) | | $ | 169.5 | | | | | |
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Comprehensive income | | $ | 195.5 | | | $ | 246 | | | $ | 235.2 | | | $ | (481.2 | ) | | $ | 195.5 | | | | | |
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Condensed Consolidated Balance Sheet | ' |
BALANCE SHEET |
31-Dec-13 |
(Millions, except par value) |
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Assets | | | | | | | | | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | | | | |
Distributions receivable from Windstream Corp. | | $ | 150.7 | | | | | | | | | | | | | | | | | | | | | |
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Other current assets | | 0.1 | | | | | | | | | | | | | | | | | | | | | |
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Total current assets | | 150.8 | | | | | | | | | | | | | | | | | | | | | |
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Investment in affiliate | | 840.5 | | | | | | | | | | | | | | | | | | | | | |
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Total Assets | | $ | 991.3 | | | | | | | | | | | | | | | | | | | | | |
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Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | |
Accrued dividends | | $ | 151.1 | | | | | | | | | | | | | | | | | | | | | |
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Total current liabilities | | 151.1 | | | | | | | | | | | | | | | | | | | | | |
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Shareholders’ Equity: | | | | | | | | | | | | | | | | | | | | | | |
Common stock, $0.0001 par value, 1,000.0 shares authorized, | | | | | | | | | | | | | | | | | | | | | | |
588.2 shares issued and outstanding | | 0.1 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Additional paid-in capital | | 811.6 | | | | | | | | | | | | | | | | | | | | | |
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Accumulated other comprehensive income | | 28.5 | | | | | | | | | | | | | | | | | | | | | |
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Retained earnings | | — | | | | | | | | | | | | | | | | | | | | | |
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Total shareholders’ equity | | 840.2 | | | | | | | | | | | | | | | | | | | | | |
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Total Liabilities and Shareholders' Equity | | $ | 991.3 | | | | | | | | | | | | | | | | | | | | | |
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| | Condensed Consolidated Balance Sheet | | | | |
| | As of December 31, 2013 | | | | |
(Millions) | | Windstream Corp. | | Guarantors | | Non- | | Eliminations | | Consolidated | | | | |
Guarantors | | | | |
Assets | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 13.7 | | | $ | 4.1 | | | $ | 30.4 | | | $ | — | | | $ | 48.2 | | | | | |
| | | |
Restricted cash | | 9.7 | | | — | | | — | | | — | | | 9.7 | | | | | |
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Accounts receivable (less allowance for doubtful | | — | | | 117.6 | | | 517.7 | | | — | | | 635.3 | | | | | |
accounts of $40.0) | | | | |
Notes receivable - affiliate | | — | | | 4.8 | | | — | | | (4.8 | ) | | — | | | | | |
| | | |
Affiliates receivable, net | | — | | | 719.9 | | | 2,114.30 | | | (2,834.2 | ) | | — | | | | | |
| | | |
Inventories | | — | | | 49.8 | | | 17.9 | | | — | | | 67.7 | | | | | |
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Deferred income taxes | | 201.9 | | | 22.9 | | | 16.7 | | | — | | | 241.5 | | | | | |
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Prepaid income taxes | | 29.7 | | | — | | | — | | | — | | | 29.7 | | | | | |
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Prepaid expenses and other | | 5.6 | | | 20.8 | | | 126.3 | | | — | | | 152.7 | | | | | |
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Total current assets | | 260.6 | | | 939.9 | | | 2,823.30 | | | (2,839.0 | ) | | 1,184.80 | | | | | |
| | | |
Investments in consolidated subsidiaries | | 12,064.60 | | | 1,319.30 | | | 296 | | | (13,679.9 | ) | | — | | | | | |
| | | |
Notes receivable - affiliate | | — | | | 321.3 | | | — | | | (321.3 | ) | | — | | | | | |
| | | |
Goodwill | | — | | | 2,475.10 | | | 1,856.30 | | | — | | | 4,331.40 | | | | | |
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Other intangibles, net | | — | | | 1,042.60 | | | 977.5 | | | — | | | 2,020.10 | | | | | |
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Net property, plant and equipment | | 7.6 | | | 1,398.20 | | | 4,296.80 | | | — | | | 5,702.60 | | | | | |
| | | |
Other assets | | 115.3 | | | 20 | | | 70.4 | | | — | | | 205.7 | | | | | |
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Total Assets | | $ | 12,448.10 | | | $ | 7,516.40 | | | $ | 10,320.30 | | | $ | (16,840.2 | ) | | $ | 13,444.60 | | | | | |
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Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | |
Current maturities of long-term debt | | $ | 84.9 | | | $ | — | | | $ | 0.1 | | | $ | — | | | $ | 85 | | | | | |
| | | |
Current portion of interest rate swaps | | 30 | | | — | | | — | | | — | | | 30 | | | | | |
| | | |
Accounts payable | | 1.3 | | | 56.4 | | | 328.2 | | | — | | | 385.9 | | | | | |
| | | |
Affiliates payable, net | | 2,984.90 | | | — | | | — | | | (2,834.2 | ) | | 150.7 | | | | | |
| | | |
Notes payable - affiliate | | — | | | — | | | 4.8 | | | (4.8 | ) | | — | | | | | |
| | | |
Advance payments and customer deposits | | — | | | 17.4 | | | 206.1 | | | — | | | 223.5 | | | | | |
| | | |
Accrued taxes | | 0.2 | | | 34 | | | 70.1 | | | — | | | 104.3 | | | | | |
| | | |
Accrued interest | | 95.4 | | | 1.8 | | | 6.3 | | | — | | | 103.5 | | | | | |
| | | |
Other current liabilities | | 38.1 | | | 18.6 | | | 305.7 | | | — | | | 362.4 | | | | | |
| | | |
Total current liabilities | | 3,234.80 | | | 128.2 | | | 921.3 | | | (2,839.0 | ) | | 1,445.30 | | | | | |
| | | |
Long-term debt | | 8,044.90 | | | 99.6 | | | 477.7 | | | — | | | 8,622.20 | | | | | |
| | | |
Notes payable - affiliate | | — | | | — | | | 321.3 | | | (321.3 | ) | | — | | | | | |
| | | |
Deferred income taxes | | 268.5 | | | 935 | | | 834.8 | | | — | | | 2,038.30 | | | | | |
| | | |
Other liabilities | | 59.4 | | | 32.2 | | | 406.7 | | | — | | | 498.3 | | | | | |
| | | |
Total liabilities | | 11,607.60 | | | 1,195.00 | | | 2,961.80 | | | (3,160.3 | ) | | 12,604.10 | | | | | |
| | | |
Commitments and Contingencies (See Note 13) | | | | | | | | | | | | | | | | | | | |
| | | |
Shareholders’ Equity: | | | | | | | | | | | | | | |
Common stock | | — | | | 40.8 | | | 83.1 | | | (123.9 | ) | | — | | | | | |
| | | |
Additional paid-in capital | | 812 | | | 5,083.40 | | | 4,004.00 | | | (9,087.4 | ) | | 812 | | | | | |
| | | |
Accumulated other comprehensive income | | 28.5 | | | 7.6 | | | 19.2 | | | (26.8 | ) | | 28.5 | | | | | |
| | | |
Retained earnings | | — | | | 1,189.60 | | | 3,252.20 | | | (4,441.8 | ) | | — | | | | | |
| | | |
Total shareholders’ equity | | 840.5 | | | 6,321.40 | | | 7,358.50 | | | (13,679.9 | ) | | 840.5 | | | | | |
| | | |
Total Liabilities and Shareholders’ Equity | | $ | 12,448.10 | | | $ | 7,516.40 | | | $ | 10,320.30 | | | $ | (16,840.2 | ) | | $ | 13,444.60 | | | | | |
| | | |
|
14. Supplemental Guarantor Information, Continued: |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Balance Sheet | | | | |
| | As of December 31, 2012 | | | | |
(Millions) | | Windstream Corp. | | Guarantors | | Non- | | Eliminations | | Consolidated | | | | |
Guarantors | | | | |
Assets | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 57.5 | | | $ | 19.8 | | | $ | 54.7 | | | $ | — | | | $ | 132 | | | | | |
| | | |
Restricted cash | | 25 | | | — | | | 1.5 | | | — | | | 26.5 | | | | | |
| | | |
Accounts receivable (less allowance for doubtful | | — | | | 111.6 | | | 497.4 | | | — | | | 609 | | | | | |
accounts of $42.6) | | | | |
Notes receivable - affiliate | | — | | | 4.8 | | | — | | | (4.8 | ) | | — | | | | | |
| | | |
Affiliates receivable, net | | — | | | 299.4 | | | 2,507.20 | | | (2,806.6 | ) | | — | | | | | |
| | | |
Inventories | | — | | | 56.9 | | | 18.1 | | | — | | | 75 | | | | | |
| | | |
Deferred income taxes | | 170.3 | | | 22.9 | | | 56.2 | | | — | | | 249.4 | | | | | |
| | | |
Prepaid income taxes | | 23.3 | | | — | | | — | | | — | | | 23.3 | | | | | |
| | | |
Prepaid expenses and other | | 4.4 | | | 29.5 | | | 145.7 | | | — | | | 179.6 | | | | | |
| | | |
Assets held for sale | | — | | | — | | | 15.7 | | | — | | | 15.7 | | | | | |
| | | |
Total current assets | | 280.5 | | | 544.9 | | | 3,296.50 | | | (2,811.4 | ) | | 1,310.50 | | | | | |
| | | |
Investments in consolidated subsidiaries | | 11,814.40 | | | 1,275.60 | | | 304.6 | | | (13,394.6 | ) | | — | | | | | |
| | | |
Notes receivable - affiliate | | — | | | 324.9 | | | — | | | (324.9 | ) | | — | | | | | |
| | | |
Goodwill | | — | | | 2,475.10 | | | 1,856.30 | | | — | | | 4,331.40 | | | | | |
| | | |
Other intangibles, net | | — | | | 1,156.80 | | | 1,154.50 | | | — | | | 2,311.30 | | | | | |
| | | |
Net property, plant and equipment | | 7.6 | | | 1,451.50 | | | 4,402.70 | | | — | | | 5,861.80 | | | | | |
| | | |
Other assets | | 103.1 | | | 17.5 | | | 46.4 | | | — | | | 167 | | | | | |
| | | |
Total Assets | | $ | 12,205.60 | | | $ | 7,246.30 | | | $ | 11,061.00 | | | $ | (16,530.9 | ) | | $ | 13,982.00 | | | | | |
| | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | |
Current maturities of long-term debt | | $ | 856 | | | $ | — | | | $ | 10 | | | $ | — | | | $ | 866 | | | | | |
| | | |
Current portion of interest rate swaps | | 29 | | | — | | | — | | | — | | | 29 | | | | | |
| | | |
Accounts payable | | 1 | | | 51.1 | | | 311.6 | | | — | | | 363.7 | | | | | |
| | | |
Affiliates payable, net | | 2,806.60 | | | — | | | — | | | (2,806.6 | ) | | — | | | | | |
| | | |
Notes payable - affiliate | | — | | | — | | | 4.8 | | | (4.8 | ) | | — | | | | | |
| | | |
Advance payments and customer deposits | | — | | | 15.7 | | | 203.9 | | | — | | | 219.6 | | | | | |
| | | |
Accrued dividends | | 148.9 | | | — | | | — | | | — | | | 148.9 | | | | | |
| | | |
Accrued taxes | | 0.2 | | | 35.2 | | | 68.9 | | | — | | | 104.3 | | | | | |
| | | |
Accrued interest | | 107.2 | | | 1.7 | | | 4.7 | | | — | | | 113.6 | | | | | |
| | | |
Other current liabilities | | 42.7 | | | 17.8 | | | 262.3 | | | — | | | 322.8 | | | | | |
| | | |
Total current liabilities | | 3,991.60 | | | 121.5 | | | 866.2 | | | (2,811.4 | ) | | 2,167.90 | | | | | |
| | | |
Long-term debt | | 6,823.20 | | | 99.6 | | | 1,177.00 | | | — | | | 8,099.80 | | | | | |
| | | |
Notes payable - affiliate | | — | | | — | | | 324.9 | | | (324.9 | ) | | — | | | | | |
| | | |
Deferred income taxes | | 175.1 | | | 922.7 | | | 799 | | | — | | | 1,896.80 | | | | | |
| | | |
Other liabilities | | 110.9 | | | 29.8 | | | 572 | | | — | | | 712.7 | | | | | |
| | | |
Total liabilities | | 11,100.80 | | | 1,173.60 | | | 3,739.10 | | | (3,136.3 | ) | | 12,877.20 | | | | | |
| | | |
Commitments and Contingencies (See Note 13) | | | | | | | | | | | | | | | | | | |
| | | |
Shareholders’ Equity: | | | | | | | | | | | | | | |
Common stock | | 0.1 | | | 40.8 | | | 83.1 | | | (123.9 | ) | | 0.1 | | | | | |
| | | |
Additional paid-in capital | | 1,098.30 | | | 5,083.40 | | | 4,004.00 | | | (9,087.4 | ) | | 1,098.30 | | | | | |
| | | |
Accumulated other comprehensive income | | 6.4 | | | 8 | | | 36.7 | | | (44.7 | ) | | 6.4 | | | | | |
| | | |
Retained earnings | | — | | | 940.5 | | | 3,198.10 | | | (4,138.6 | ) | | — | | | | | |
| | | |
Total shareholders’ equity | | 1,104.80 | | | 6,072.70 | | | 7,321.90 | | | (13,394.6 | ) | | 1,104.80 | | | | | |
| | | |
Total Liabilities and Shareholders’ Equity | | $ | 12,205.60 | | | $ | 7,246.30 | | | $ | 11,061.00 | | | $ | (16,530.9 | ) | | $ | 13,982.00 | | | | | |
| | | |
Condensed Consolidated Statement of Cash Flows | ' |
STATEMENT OF CASH FLOWS |
For the period of August 30, 2013 (date of formation) to December 31, 2013 |
|
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
(Millions) | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Cash Provided from Operations: | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | $ | 137.3 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Adjustments to reconcile net income to net cash provided from operations: | | | | | | | | | | | | | | | | | | | | | | |
Equity in earnings from subsidiaries | | (137.6 | ) | | | | | | | | | | | | | | | | | | | | |
Changes in operating assets and liabilities, net: | | | | | | | | | | | | | | | | | | | | | | |
Other current assets | | (0.1 | ) | | | | | | | | | | | | | | | | | | | | |
Net cash used in operating activities | | (0.4 | ) | | | | | | | | | | | | | | | | | | | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | | | | |
Dividends paid to shareholders | | (149.0 | ) | | | | | | | | | | | | | | | | | | | | |
Distributions from Windstream Corp | | 149.4 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Net cash provided by financing activities | | 0.4 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Change in cash and cash equivalents | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Cash and Cash Equivalents: | | | | | | | | | | | | | | | | | | | | | | |
Beginning of period | | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
End of period | | $ | — | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Cash Flows | | | | |
| | For the Year Ended December 31, 2013 | | | | |
(Millions) | | Windstream Corp. | | Guarantors | | Non- | | Eliminations | | Consolidated | | | | |
Guarantors | | | | |
Cash Provided from Operations: | | | | | | | | | | | | | | |
Net income | | $ | 241.3 | | | $ | 300.1 | | | $ | 248.9 | | | $ | (549.0 | ) | | $ | 241.3 | | | | | |
| | | |
Adjustments to reconcile net income to net cash | | | | | | | | | | | | | | |
provided from operations: | | | | |
Depreciation and amortization | | — | | | 317.3 | | | 1,024.20 | | | — | | | 1,341.50 | | | | | |
| | | |
Provision for doubtful accounts | | — | | | 11 | | | 52.5 | | | — | | | 63.5 | | | | | |
| | | |
Equity in earnings from subsidiaries | | (500.0 | ) | | (44.0 | ) | | (5.0 | ) | | 549 | | | — | | | | | |
| | | |
Share-based compensation expense | | — | | | 7.1 | | | 37.8 | | | — | | | 44.9 | | | | | |
| | | |
Pension income | | — | | | (17.8 | ) | | (97.5 | ) | | — | | | (115.3 | ) | | | | |
| | | |
Deferred income taxes | | 36.2 | | | 12.2 | | | 86.4 | | | — | | | 134.8 | | | | | |
| | | |
Unamortized net discount (premium) on | | 3.1 | | | — | | | (41.2 | ) | | — | | | (38.1 | ) | | | | |
retired debt | | | | |
Amortization of unrealized losses on | | 35.9 | | | — | | | — | | | — | | | 35.9 | | | | | |
de-designated interest rate swaps | | | | |
Gain from sale of software business | | — | | | — | | | (14.4 | ) | | — | | | (14.4 | ) | | | | |
| | | |
Plan curtailment and other, net | | 27.5 | | | (3.1 | ) | | (40.2 | ) | | — | | | (15.8 | ) | | | | |
| | | |
Changes in operating assets and liabilities, net | | (24.1 | ) | | 14.9 | | | (149.3 | ) | | — | | | (158.5 | ) | | | | |
| | | |
Net cash (used in) provided from operations | | (180.1 | ) | | 597.7 | | | 1,102.20 | | | — | | | 1,519.80 | | | | | |
| | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | |
Additions to property, plant and equipment | | — | | | (153.5 | ) | | (687.5 | ) | | — | | | (841.0 | ) | | | | |
| | | |
Broadband network expansion funded by | | — | | | (4.9 | ) | | (31.2 | ) | | — | | | (36.1 | ) | | | | |
stimulus grants | | | | |
Changes in restricted cash | | 15.3 | | | — | | | 1.5 | | | — | | | 16.8 | | | | | |
| | | |
Grant funds received for broadband | | 68 | | | — | | | — | | | — | | | 68 | | | | | |
stimulus projects | | | | |
Grant funds received from Connect America Fund | | — | | | 21.9 | | | 38.8 | | | — | | | 60.7 | | | | | |
| | | |
Disposition of software business | | — | | | — | | | 30 | | | — | | | 30 | | | | | |
| | | |
Other, net | | — | | | — | | | (6.0 | ) | | — | | | (6.0 | ) | | | | |
| | | |
Net cash provided from (used in) | | 83.3 | | | (136.5 | ) | | (654.4 | ) | | — | | | (707.6 | ) | | | | |
investing activities | | | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | |
Dividends paid to shareholders | | (444.6 | ) | | — | | | — | | | — | | | (444.6 | ) | | | | |
| | | |
Distributions to Windstream Holdings | | (0.4 | ) | | — | | | (149.0 | ) | | — | | | (149.4 | ) | | | | |
| | | |
Repayment of debt and swaps | | (4,500.9 | ) | | — | | | (660.1 | ) | | — | | | (5,161.0 | ) | | | | |
| | | |
Proceeds of debt issuance | | 4,919.60 | | | — | | | — | | | — | | | 4,919.60 | | | | | |
| | | |
Debt issuance costs | | (30.0 | ) | | — | | | — | | | — | | | (30.0 | ) | | | | |
| | | |
Intercompany transactions, net | | 116 | | | (480.5 | ) | | 364.5 | | | — | | | — | | | | | |
| | | |
Payment under capital lease obligations | | — | | | — | | | (23.9 | ) | | — | | | (23.9 | ) | | | | |
| | | |
Other, net | | (6.7 | ) | | 3.6 | | | (3.6 | ) | | — | | | (6.7 | ) | | | | |
| | | |
Net cash provided from (used in) | | 53 | | | (476.9 | ) | | (472.1 | ) | | — | | | (896.0 | ) | | | | |
financing activities | | | | |
Decrease in cash and cash equivalents | | (43.8 | ) | | (15.7 | ) | | (24.3 | ) | | — | | | (83.8 | ) | | | | |
| | | |
Cash and Cash Equivalents: | | | | | | | | | | | | | | |
Beginning of period | | 57.5 | | | 19.8 | | | 54.7 | | | — | | | 132 | | | | | |
| | | |
End of period | | $ | 13.7 | | | $ | 4.1 | | | $ | 30.4 | | | $ | — | | | $ | 48.2 | | | | | |
| | | |
|
14. Supplemental Guarantor Information, Continued: |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Cash Flows | | | | |
| | For the Year Ended December 31, 2012 | | | | |
(Millions) | | Windstream Corp. | | Guarantors | | Non- | | Eliminations | | Consolidated | | | | |
Guarantors | | | | |
Cash Provided from Operations: | | | | | | | | | | | | | | |
Net income | | $ | 168 | | | $ | 280.2 | | | $ | 168 | | | $ | (448.2 | ) | | $ | 168 | | | | | |
| | | |
Adjustments to reconcile net income to net cash | | | | | | | | | | | | | | |
provided from operations: | | | | |
Depreciation and amortization | | — | | | 315.2 | | | 982.4 | | | — | | | 1,297.60 | | | | | |
| | | |
Provision for doubtful accounts | | — | | | 11.6 | | | 47.8 | | | — | | | 59.4 | | | | | |
| | | |
Equity in earnings from subsidiaries | | (404.9 | ) | | (38.9 | ) | | (4.4 | ) | | 448.2 | | | — | | | | | |
| | | |
Share-based compensation expense | | — | | | 7.9 | | | 35.3 | | | — | | | 43.2 | | | | | |
| | | |
Pension expense | | — | | | 10.2 | | | 57.2 | | | — | | | 67.4 | | | | | |
| | | |
Deferred income taxes | | 54.6 | | | (18.4 | ) | | 42.8 | | | — | | | 79 | | | | | |
| | | |
Unamortized net premium on retired debt | | — | | | — | | | (16.2 | ) | | — | | | (16.2 | ) | | | | |
| | | |
Amortization of unrealized losses on | | 45.4 | | | — | | | — | | | — | | | 45.4 | | | | | |
de-designated interest rate swaps | | | | |
Plan curtailment and other, net | | 22.3 | | | (12.0 | ) | | (36.0 | ) | | — | | | (25.7 | ) | | | | |
| | | |
Changes in operating assets and liabilities, net | | 275.3 | | | (105.8 | ) | | (110.0 | ) | | — | | | 59.5 | | | | | |
| | | |
Net cash provided from operations | | 160.7 | | | 450 | | | 1,166.90 | | | — | | | 1,777.60 | | | | | |
| | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | |
Additions to property, plant and equipment | | — | | | (206.2 | ) | | (895.0 | ) | | — | | | (1,101.2 | ) | | | | |
| | | |
Broadband network expansion funded by | | — | | | (23.4 | ) | | (82.0 | ) | | — | | | (105.4 | ) | | | | |
stimulus grants | | | | |
Changes in restricted cash | | (13.2 | ) | | — | | | 8.4 | | | — | | | (4.8 | ) | | | | |
| | | |
Grant funds received for broadband | | 45.7 | | | — | | | — | | | — | | | 45.7 | | | | | |
stimulus projects | | | | |
Disposition of wireless assets | | — | | | 57 | | | — | | | — | | | 57 | | | | | |
| | | |
Disposition of energy business | | — | | | — | | | 6.1 | | | — | | | 6.1 | | | | | |
| | | |
Other, net | | — | | | 2.8 | | | (1.9 | ) | | — | | | 0.9 | | | | | |
| | | |
Net cash provided from (used in) | | 32.5 | | | (169.8 | ) | | (964.4 | ) | | — | | | (1,101.7 | ) | | | | |
investing activities | | | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | |
Dividends paid to shareholders | | (588.0 | ) | | — | | | — | | | — | | | (588.0 | ) | | | | |
| | | |
Repayment of debt and swaps | | (1,744.4 | ) | | — | | | (310.1 | ) | | — | | | (2,054.5 | ) | | | | |
| | | |
Proceeds of debt issuance | | 1,910.00 | | | — | | | — | | | — | | | 1,910.00 | | | | | |
| | | |
Debt issuance costs | | (19.1 | ) | | — | | | — | | | — | | | (19.1 | ) | | | | |
| | | |
Intercompany transactions, net | | 189.7 | | | (270.3 | ) | | 80.6 | | | — | | | — | | | | | |
| | | |
Payment under capital lease obligations | | — | | | (0.8 | ) | | (19.2 | ) | | — | | | (20.0 | ) | | | | |
| | | |
Other, net | | 0.7 | | | 3.6 | | | (3.6 | ) | | — | | | 0.7 | | | | | |
| | | |
Net cash used in financing activities | | (251.1 | ) | | (267.5 | ) | | (252.3 | ) | | — | | | (770.9 | ) | | | | |
| | | |
(Decrease) increase in cash and cash equivalents | | (57.9 | ) | | 12.7 | | | (49.8 | ) | | — | | | (95.0 | ) | | | | |
| | | |
Cash and Cash Equivalents: | | | | | | | | | | | | | | |
Beginning of period | | 115.4 | | | 7.1 | | | 104.5 | | | — | | | 227 | | | | | |
| | | |
End of period | | $ | 57.5 | | | $ | 19.8 | | | $ | 54.7 | | | $ | — | | | $ | 132 | | | | | |
| | | |
|
14. Supplemental Guarantor Information, Continued: |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Cash Flows | | | | |
| | For the Year Ended December 31, 2011 | | | | |
(Millions) | | Windstream Corp. | | Guarantors | | Non- | | Eliminations | | Consolidated | | | | |
Guarantors | | | | |
Cash Provided from Operations: | | | | | | | | | | | | | | |
Net income | | $ | 169.5 | | | $ | 246 | | | $ | 235.2 | | | $ | (481.2 | ) | | $ | 169.5 | | | | | |
| | | |
Adjustments to reconcile net income to net cash | | | | | | | | | | | | | | |
provided from operations: | | | | |
Depreciation and amortization | | — | | | 320.3 | | | 527.2 | | | — | | | 847.5 | | | | | |
| | | |
Provision for doubtful accounts | | — | | | 11.3 | | | 37.2 | | | — | | | 48.5 | | | | | |
| | | |
Equity in (earnings) losses from subsidiaries | | (477.7 | ) | | 1.2 | | | (4.7 | ) | | 481.2 | | | — | | | | | |
| | | |
Share-based compensation expense | | — | | | 5.6 | | | 18.5 | | | — | | | 24.1 | | | | | |
| | | |
Pension expense | | — | | | 23.4 | | | 143.4 | | | — | | | 166.8 | | | | | |
| | | |
Deferred income taxes | | 10.3 | | | 19.8 | | | 143.7 | | | — | | | 173.8 | | | | | |
| | | |
Unamortized net discount on retired debt | | 21.2 | | | — | | | — | | | — | | | 21.2 | | | | | |
| | | |
Amortization of unrealized losses on | | 49 | | | — | | | — | | | — | | | 49 | | | | | |
de-designated interest rate swaps | | | | |
Plan curtailment and other, net | | 18.6 | | | (3.0 | ) | | (18.7 | ) | | — | | | (3.1 | ) | | | | |
| | | |
Changes in operating assets and liabilities, net | | (316.2 | ) | | 42.8 | | | 4.9 | | | — | | | (268.5 | ) | | | | |
| | | |
Net cash (used in) provided from operations | | (525.3 | ) | | 667.4 | | | 1,086.70 | | | — | | | 1,228.80 | | | | | |
| | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | |
Additions to property, plant and equipment | | — | | | (206.4 | ) | | (495.6 | ) | | — | | | (702.0 | ) | | | | |
| | | |
Broadband network expansion funded by | | — | | | (5.2 | ) | | (16.5 | ) | | — | | | (21.7 | ) | | | | |
stimulus grants | | | | |
Cash acquired from PAETEC | | — | | | — | | | 71.4 | | | — | | | 71.4 | | | | | |
| | | |
Changes in restricted cash | | (11.9 | ) | | — | | | — | | | — | | | (11.9 | ) | | | | |
| | | |
Grant funds received for broadband | | 4 | | | — | | | — | | | — | | | 4 | | | | | |
stimulus projects | | | | |
Other, net | | 1.8 | | | 5.7 | | | 0.5 | | | — | | | 8 | | | | | |
| | | |
Net cash used in investing activities | | (6.1 | ) | | (205.9 | ) | | (440.2 | ) | | — | | | (652.2 | ) | | | | |
| | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | |
Dividends paid to shareholders | | (509.6 | ) | | — | | | — | | | — | | | (509.6 | ) | | | | |
| | | |
Repayment of debt and swaps | | (4,670.7 | ) | | — | | | (109.6 | ) | | — | | | (4,780.3 | ) | | | | |
| | | |
Proceeds of debt issuance | | 4,922.00 | | | — | | | — | | | — | | | 4,922.00 | | | | | |
| | | |
Debt issuance costs | | (30.6 | ) | | — | | | — | | | — | | | (30.6 | ) | | | | |
| | | |
Intercompany transactions, net | | 933.3 | | | (474.8 | ) | | (458.5 | ) | | — | | | — | | | | | |
| | | |
Payment under capital lease obligations | | — | | | (0.7 | ) | | (0.1 | ) | | — | | | (0.8 | ) | | | | |
| | | |
Other, net | | (1.7 | ) | | 12.7 | | | (3.6 | ) | | — | | | 7.4 | | | | | |
| | | |
Net cash provided from (used in) | | 642.7 | | | (462.8 | ) | | (571.8 | ) | | — | | | (391.9 | ) | | | | |
financing activities | | | | |
Increase (decrease) in cash and cash equivalents | | 111.3 | | | (1.3 | ) | | 74.7 | | | — | | | 184.7 | | | | | |
| | | |
Cash and Cash Equivalents: | | | | | | | | | | | | | | |
Beginning of period | | 4.1 | | | 8.4 | | | 29.8 | | | — | | | 42.3 | | | | | |
| | | |
End of period | | $ | 115.4 | | | $ | 7.1 | | | $ | 104.5 | | | $ | — | | | $ | 227 | | | | | |
| | | |
Condensed Consolidated Statement of Comprehensive Income | ' |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Comprehensive Income |
| | For the Year Ended December 31, 2013 |
(Millions) | | Windstream Corp. | | PAETEC Issuer | | Guarantors | | Non- | | Eliminations | | Consolidated |
Guarantors |
Revenues and sales: | | | | | | | | | | | | |
Service revenues | | $ | — | | | $ | — | | | $ | 1,940.70 | | | $ | 3,841.90 | | | $ | (7.1 | ) | | $ | 5,775.50 | |
|
Product sales | | — | | | — | | | 140.2 | | | 74.5 | | | (2.1 | ) | | 212.6 | |
|
Total revenues and sales | | — | | | — | | | 2,080.90 | | | 3,916.40 | | | (9.2 | ) | | 5,988.10 | |
|
Costs and expenses: | | | | | | | | | | | | |
Cost of services | | — | | | — | | | 1,166.10 | | | 1,329.20 | | | (3.2 | ) | | 2,492.10 | |
|
Cost of products sold | | — | | | — | | | 111.1 | | | 75.3 | | | (2.5 | ) | | 183.9 | |
|
Selling, general and administrative | | — | | | — | | | 521.5 | | | 403.5 | | | (2.1 | ) | | 922.9 | |
|
Depreciation and amortization | | — | | | — | | | 396.7 | | | 944.2 | | | — | | | 1,340.90 | |
|
Merger and integration costs | | — | | | — | | | (0.4 | ) | | 29.6 | | | — | | | 29.2 | |
|
Restructuring charges | | — | | | — | | | 3.4 | | | 6.2 | | | — | | | 9.6 | |
|
Total costs and expenses | | — | | | — | | | 2,198.40 | | | 2,788.00 | | | (7.8 | ) | | 4,978.60 | |
|
Operating (loss) income | | — | | | — | | | (117.5 | ) | | 1,128.40 | | | (1.4 | ) | | 1,009.50 | |
|
Earnings (losses) from consolidated | | 500 | | | (66.4 | ) | | (0.2 | ) | | 0.3 | | | (433.7 | ) | | — | |
subsidiaries |
Other income (expense), net | | 2 | | | — | | | 0.9 | | | (15.4 | ) | | — | | | (12.5 | ) |
|
Loss on early extinguishment of debt | | (17.2 | ) | | (11.3 | ) | | — | | | — | | | — | | | (28.5 | ) |
|
Intercompany interest income (expense) | | 154.1 | | | — | | | — | | | (154.1 | ) | | — | | | — | |
|
Interest (expense) income | | (584.6 | ) | | (40.9 | ) | | 0.2 | | | (2.4 | ) | | — | | | (627.7 | ) |
|
Income (loss) from continuing operations | | 54.3 | | | (118.6 | ) | | (116.6 | ) | | 956.8 | | | (435.1 | ) | | 340.8 | |
before income taxes |
Income tax (benefit) expense | | (187.0 | ) | | (19.3 | ) | | (36.9 | ) | | 348.4 | | | 0.3 | | | 105.5 | |
|
Income (loss) from continuing operations | | 241.3 | | | (99.3 | ) | | (79.7 | ) | | 608.4 | | | (435.4 | ) | | 235.3 | |
|
Discontinued operations | | — | | | — | | | 6 | | | — | | | — | | | 6 | |
|
Net income (loss) | | $ | 241.3 | | | $ | (99.3 | ) | | $ | (73.7 | ) | | $ | 608.4 | | | $ | (435.4 | ) | | $ | 241.3 | |
|
Comprehensive income (loss) | | $ | 263.4 | | | $ | (99.3 | ) | | $ | (73.7 | ) | | $ | 608.4 | | | $ | (435.4 | ) | | $ | 263.4 | |
|
14. Supplemental Guarantor Information, Continued: |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Comprehensive Income |
| | For the Year Ended December 31, 2012 |
(Millions) | | Windstream Corp. | | PAETEC Issuer | | Guarantors | | Non- | | Eliminations | | Consolidated |
Guarantors |
Revenues and sales: | | | | | | | | | | | | |
Service revenues | | $ | — | | | $ | — | | | $ | 1,977.70 | | | $ | 3,938.60 | | | $ | (8.0 | ) | | $ | 5,908.30 | |
|
Product sales | | — | | | — | | | 120.2 | | | 111 | | | — | | | 231.2 | |
|
Total revenues and sales | | — | | | — | | | 2,097.90 | | | 4,049.60 | | | (8.0 | ) | | 6,139.50 | |
|
Costs and expenses: | | | | | | | | | | | | |
Cost of services | | — | | | — | | | 1,162.40 | | | 1,533.40 | | | (3.6 | ) | | 2,692.20 | |
|
Cost of products sold | | — | | | — | | | 99.9 | | | 106.7 | | | — | | | 206.6 | |
|
Selling, general and administrative | | — | | | — | | | 473 | | | 495.3 | | | (1.0 | ) | | 967.3 | |
|
Depreciation and amortization | | — | | | — | | | 370.9 | | | 926 | | | — | | | 1,296.90 | |
|
Merger and integration costs | | — | | | — | | | 0.5 | | | 64.9 | | | — | | | 65.4 | |
|
Restructuring charges | | — | | | — | | | 9.4 | | | 17.8 | | | — | | | 27.2 | |
|
Total costs and expenses | | — | | | — | | | 2,116.10 | | | 3,144.10 | | | (4.6 | ) | | 5,255.60 | |
|
Operating (loss) income | | — | | | — | | | (18.2 | ) | | 905.5 | | | (3.4 | ) | | 883.9 | |
|
Earnings (losses) from consolidated | | 404.9 | | | (6.7 | ) | | 6.3 | | | (0.5 | ) | | (404.0 | ) | | — | |
subsidiaries |
Other (expense) income, net | | (6.8 | ) | | — | | | 0.3 | | | 11.1 | | | — | | | 4.6 | |
|
Gain on early extinguishment of debt | | — | | | 1.9 | | | — | | | — | | | — | | | 1.9 | |
|
Intercompany interest income (expense) | | 152.8 | | | — | | | — | | | (152.8 | ) | | — | | | — | |
|
Interest (expense) income | | (540.9 | ) | | (84.2 | ) | | (1.2 | ) | | 1.2 | | | — | | | (625.1 | ) |
|
Income (loss) from continuing operations | | 10 | | | (89.0 | ) | | (12.8 | ) | | 764.5 | | | (407.4 | ) | | 265.3 | |
before income taxes |
Income tax (benefit) expense | | (158.0 | ) | | (30.8 | ) | | (7.7 | ) | | 296 | | | (1.3 | ) | | 98.2 | |
|
Income (loss) from continuing operations | | 168 | | | (58.2 | ) | | (5.1 | ) | | 468.5 | | | (406.1 | ) | | 167.1 | |
|
Discontinued operations | | — | | | — | | | 0.9 | | | — | | | — | | | 0.9 | |
|
Net income (loss) | | $ | 168 | | | $ | (58.2 | ) | | $ | (4.2 | ) | | $ | 468.5 | | | $ | (406.1 | ) | | $ | 168 | |
|
Comprehensive income (loss) | | $ | 172.5 | | | $ | (58.2 | ) | | $ | (4.2 | ) | | $ | 468.5 | | | $ | (406.1 | ) | | $ | 172.5 | |
|
|
14. Supplemental Guarantor Information, Continued: |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Comprehensive Income |
| | For the Year Ended December 31, 2011 |
(Millions) | | Windstream Corp. | | PAETEC Issuer | | Guarantors | | Non- | | Eliminations | | Consolidated |
Guarantors |
Revenues and sales: | | | | | | | | | | | | |
Service revenues | | $ | — | | | $ | — | | | $ | 164.2 | | | $ | 3,990.00 | | | $ | (1.2 | ) | | $ | 4,153.00 | |
|
Product sales | | — | | | — | | | 16.2 | | | 110.4 | | | — | | | 126.6 | |
|
Total revenues and sales | | — | | | — | | | 180.4 | | | 4,100.40 | | | (1.2 | ) | | 4,279.60 | |
|
Costs and expenses: | | | | | | | | | | | | |
Cost of services | | — | | | — | | | 93.2 | | | 1,599.10 | | | (1.2 | ) | | 1,691.10 | |
|
Cost of products sold | | — | | | — | | | 12.8 | | | 92.3 | | | — | | | 105.1 | |
|
Selling, general and administrative | | — | | | — | | | 39.6 | | | 562.3 | | | — | | | 601.9 | |
|
Depreciation and amortization | | — | | | — | | | 28.8 | | | 818.7 | | | — | | | 847.5 | |
|
Merger and integration costs | | — | | | — | | | 3.9 | | | 65.9 | | | — | | | 69.8 | |
|
Restructuring charges | | — | | | — | | | — | | | 1.3 | | | — | | | 1.3 | |
|
Total costs and expenses | | — | | | — | | | 178.3 | | | 3,139.60 | | | (1.2 | ) | | 3,316.70 | |
|
Operating income | | — | | | — | | | 2.1 | | | 960.8 | | | — | | | 962.9 | |
|
Earnings (losses) from consolidated | | 477.7 | | | 1.4 | | | (5.9 | ) | | 1.9 | | | (475.1 | ) | | — | |
subsidiaries |
Other (expense) income, net | | (3.8 | ) | | — | | | — | | | 3.7 | | | — | | | (0.1 | ) |
|
Loss on early extinguishment of debt | | (136.1 | ) | | — | | | — | | | — | | | — | | | (136.1 | ) |
|
Intercompany interest income (expense) | | 167.2 | | | (2.0 | ) | | 2 | | | (167.2 | ) | | — | | | — | |
|
Interest expense | | (547.3 | ) | | (8.6 | ) | | (0.1 | ) | | (2.3 | ) | | — | | | (558.3 | ) |
|
(Loss) income from continuing operations | | (42.3 | ) | | (9.2 | ) | | (1.9 | ) | | 796.9 | | | (475.1 | ) | | 268.4 | |
before income taxes |
Income tax (benefit) expense | | (211.8 | ) | | (4.5 | ) | | 1.9 | | | 313.8 | | | — | | | 99.4 | |
|
Income (loss) from continuing operations | | 169.5 | | | (4.7 | ) | | (3.8 | ) | | 483.1 | | | (475.1 | ) | | 169 | |
|
Discontinued operations | | — | | | — | | | 0.5 | | | — | | | — | | | 0.5 | |
|
Net income (loss) | | $ | 169.5 | | | $ | (4.7 | ) | | $ | (3.3 | ) | | $ | 483.1 | | | $ | (475.1 | ) | | $ | 169.5 | |
|
Comprehensive income (loss) | | $ | 195.5 | | | $ | (4.7 | ) | | $ | (3.3 | ) | | $ | 483.1 | | | $ | (475.1 | ) | | $ | 195.5 | |
|
Condensed Consolidated Balance Sheet | ' |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Balance Sheet |
| | As of December 31, 2013 |
(Millions) | | Windstream Corp. | | PAETEC Issuer | | Guarantors | | Non- | | Eliminations | | Consolidated |
Guarantors |
Assets | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 13.7 | | | $ | — | | | $ | 7.8 | | | $ | 26.7 | | | $ | — | | | $ | 48.2 | |
|
Restricted cash | | 9.7 | | | — | | | — | | | — | | | — | | | 9.7 | |
|
Accounts receivable (less allowance for | | — | | | — | | | 251 | | | 384.5 | | | (0.2 | ) | | 635.3 | |
doubtful accounts of $40.0) |
Affiliates receivable, net | | — | | | 374.3 | | | — | | | 3,896.40 | | | (4,270.7 | ) | | — | |
|
Inventories | | — | | | — | | | 10.6 | | | 57.1 | | | — | | | 67.7 | |
|
Deferred income taxes | | 201.9 | | | — | | | — | | | 76.7 | | | (37.1 | ) | | 241.5 | |
|
Prepaid income taxes | | 29.7 | | | 0.1 | | | — | | | — | | | (0.1 | ) | | 29.7 | |
|
Prepaid expenses and other | | 5.6 | | | — | | | 29.9 | | | 116 | | | 1.2 | | | 152.7 | |
|
Total current assets | | 260.6 | | | 374.4 | | | 299.3 | | | 4,557.40 | | | (4,306.9 | ) | | 1,184.80 | |
|
Investments in consolidated subsidiaries | | 12,064.60 | | | — | | | 0.1 | | | — | | | (12,064.7 | ) | | — | |
|
Goodwill | | — | | | 643.8 | | | — | | | 3,687.60 | | | — | | | 4,331.40 | |
|
Other intangibles, net | | — | | | — | | | 533.6 | | | 1,486.50 | | | — | | | 2,020.10 | |
|
Net property, plant and equipment | | 7.6 | | | — | | | 799.3 | | | 4,895.70 | | | — | | | 5,702.60 | |
|
Deferred income taxes | | — | | | 219 | | | 31 | | | — | | | (250.0 | ) | | — | |
|
Other assets | | 115.3 | | | — | | | 16.2 | | | 74.2 | | | — | | | 205.7 | |
|
Total Assets | | $ | 12,448.10 | | | $ | 1,237.20 | | | $ | 1,679.50 | | | $ | 14,701.40 | | | $ | (16,621.6 | ) | | $ | 13,444.60 | |
|
Liabilities and Shareholders’ Equity | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | |
Current maturities of long-term debt | | $ | 84.9 | | | $ | — | | | $ | — | | | $ | 0.1 | | | $ | — | | | $ | 85 | |
|
Current portion of interest rate swaps | | 30 | | | — | | | — | | | — | | | — | | | 30 | |
|
Accounts payable | | 1.3 | | | — | | | 85.9 | | | 298.7 | | | — | | | 385.9 | |
|
Affiliates payable, net | | 2,984.90 | | | — | | | 1,431.70 | | | — | | | (4,265.9 | ) | | 150.7 | |
|
Advance payments and customer deposits | | — | | | — | | | 77.7 | | | 145.8 | | | — | | | 223.5 | |
|
Accrued taxes | | 0.2 | | | — | | | 24.5 | | | 79.3 | | | 0.3 | | | 104.3 | |
|
Accrued interest | | 95.4 | | | 3.7 | | | 2.3 | | | 2.1 | | | — | | | 103.5 | |
|
Other current liabilities | | 38.1 | | | 4 | | | 87.1 | | | 270.5 | | | (37.3 | ) | | 362.4 | |
|
Total current liabilities | | 3,234.80 | | | 7.7 | | | 1,709.20 | | | 796.5 | | | (4,302.9 | ) | | 1,445.30 | |
|
Long-term debt | | 8,044.90 | | | 475.8 | | | — | | | 101.5 | | | — | | | 8,622.20 | |
|
Deferred income taxes | | 268.5 | | | — | | | — | | | 2,019.80 | | | (250.0 | ) | | 2,038.30 | |
|
Accumulated losses in excess of | | — | | | 71.8 | | | — | | | — | | | (71.8 | ) | | — | |
investments in consolidated subsidiaries |
Other liabilities | | 59.4 | | | 2.3 | | | 51.6 | | | 385 | | | — | | | 498.3 | |
|
Total liabilities | | 11,607.60 | | | 557.6 | | | 1,760.80 | | | 3,302.80 | | | (4,624.7 | ) | | 12,604.10 | |
|
Commitments and Contingencies | | | | | | | | | | | | | | | | | | |
(See Note 13) |
Shareholders’ Equity: | | | | | | | | | | | | |
Common stock | | — | | | — | | | — | | | 70.3 | | | (70.3 | ) | | — | |
|
Additional paid-in capital | | 812 | | | 842 | | | — | | | 6,918.50 | | | (7,760.5 | ) | | 812 | |
|
Accumulated other comprehensive income | | 28.5 | | | — | | | — | | | 32.9 | | | (32.9 | ) | | 28.5 | |
|
Accumulated (deficit) retained earnings | | — | | | (162.4 | ) | | (81.3 | ) | | 4,376.90 | | | (4,133.2 | ) | | — | |
|
Total shareholders’ equity | | 840.5 | | | 679.6 | | | (81.3 | ) | | 11,398.60 | | | (11,996.9 | ) | | 840.5 | |
|
Total Liabilities and Shareholders’ Equity | | $ | 12,448.10 | | | $ | 1,237.20 | | | $ | 1,679.50 | | | $ | 14,701.40 | | | $ | (16,621.6 | ) | | $ | 13,444.60 | |
|
14. Supplemental Guarantor Information, Continued: |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Balance Sheet |
| | As of December 31, 2012 |
(Millions) | | Windstream Corp. | | PAETEC | | Guarantors | | Non- | | Eliminations | | Consolidated |
Issuer | Guarantors |
Assets | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 57.5 | | | $ | — | | | $ | 26.5 | | | $ | 48 | | | $ | — | | | $ | 132 | |
|
Restricted cash | | 25 | | | — | | | 1.5 | | | — | | | — | | | 26.5 | |
|
Accounts receivable (less allowance for | | — | | | — | | | 243.6 | | | 365.4 | | | — | | | 609 | |
doubtful accounts of $42.6) |
Affiliates receivable, net | | — | | | 1,080.20 | | | — | | | 3,253.30 | | | (4,333.5 | ) | | — | |
|
Inventories | | — | | | — | | | 10 | | | 65 | | | — | | | 75 | |
|
Deferred income taxes | | 170.3 | | | — | | | 6.2 | | | 76.7 | | | (3.8 | ) | | 249.4 | |
|
Prepaid income taxes | | 23.3 | | | — | | | — | | | — | | | — | | | 23.3 | |
|
Prepaid expenses and other | | 4.4 | | | — | | | 24.2 | | | 151 | | | — | | | 179.6 | |
|
Assets held for sale | | — | | | — | | | 15.7 | | | — | | | — | | | 15.7 | |
|
Total current assets | | 280.5 | | | 1,080.20 | | | 327.7 | | | 3,959.40 | | | (4,337.3 | ) | | 1,310.50 | |
|
Investments in consolidated subsidiaries | | 11,814.40 | | | — | | | 0.4 | | | — | | | (11,814.8 | ) | | — | |
|
Goodwill | | — | | | 643.8 | | | — | | | 3,687.60 | | | — | | | 4,331.40 | |
|
Other intangibles, net | | — | | | — | | | 668.9 | | | 1,642.40 | | | — | | | 2,311.30 | |
|
Net property, plant and equipment | | 7.6 | | | — | | | 877.3 | | | 4,976.90 | | | — | | | 5,861.80 | |
|
Deferred income taxes | | — | | | 246.4 | | | — | | | — | | | (246.4 | ) | | — | |
|
Other assets | | 103.1 | | | — | | | 13.1 | | | 50.8 | | | — | | | 167 | |
|
Total Assets | | $ | 12,205.60 | | | $ | 1,970.40 | | | $ | 1,887.40 | | | $ | 14,317.10 | | | $ | (16,398.5 | ) | | $ | 13,982.00 | |
|
Liabilities and Shareholders’ Equity | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | |
Current maturities of long-term debt | | $ | 856 | | | $ | — | | | $ | — | | | $ | 10 | | | $ | — | | | $ | 866 | |
|
Current portion of interest rate swaps | | 29 | | | — | | | — | | | — | | | — | | | 29 | |
|
Accounts payable | | 1 | | | — | | | 83.4 | | | 279.3 | | | — | | | 363.7 | |
|
Affiliates payable, net | | 2,806.60 | | | — | | | 1,525.00 | | | — | | | (4,331.6 | ) | | — | |
|
Advance payments and customer deposits | | — | | | — | | | 74 | | | 145.6 | | | — | | | 219.6 | |
|
Accrued dividends | | 148.9 | | | — | | | — | | | — | | | — | | | 148.9 | |
|
Accrued taxes | | 0.2 | | | — | | | 33.6 | | | 70.1 | | | 0.4 | | | 104.3 | |
|
Accrued interest | | 107.2 | | | 3.9 | | | 0.8 | | | 1.7 | | | — | | | 113.6 | |
|
Other current liabilities | | 42.7 | | | 3.8 | | | 81.9 | | | 198.2 | | | (3.8 | ) | | 322.8 | |
|
Total current liabilities | | 3,991.60 | | | 7.7 | | | 1,798.70 | | | 704.9 | | | (4,335.0 | ) | | 2,167.90 | |
|
Long-term debt | | 6,823.20 | | | 1,175.00 | | | — | | | 101.6 | | | — | | | 8,099.80 | |
|
Deferred income taxes | | 175.1 | | | — | | | 33.1 | | | 1,935.00 | | | (246.4 | ) | | 1,896.80 | |
|
Accumulated losses in excess of | | — | | | 5.3 | | | — | | | — | | | (5.3 | ) | | — | |
investments in consolidated subsidiaries |
Other liabilities | | 110.9 | | | 3.4 | | | 63.1 | | | 535.3 | | | — | | | 712.7 | |
|
Total liabilities | | 11,100.80 | | | 1,191.40 | | | 1,894.90 | | | 3,276.80 | | | (4,586.7 | ) | | 12,877.20 | |
|
Commitments and Contingencies | | | | | | | | | | | | | | | | | | |
(See Note 13) |
Shareholders’ Equity: | | | | | | | | | | | | |
Common stock | | 0.1 | | | — | | | — | | | 70.3 | | | (70.3 | ) | | 0.1 | |
|
Additional paid-in capital | | 1,098.30 | | | 842 | | | — | | | 6,918.50 | | | (7,760.5 | ) | | 1,098.30 | |
|
Accumulated other comprehensive | | 6.4 | | | — | | | — | | | 50.8 | | | (50.8 | ) | | 6.4 | |
income |
Accumulated (deficit) retained earnings | | — | | | (63.0 | ) | | (7.5 | ) | | 4,000.70 | | | (3,930.2 | ) | | — | |
|
Total shareholders’ equity | | 1,104.80 | | | 779 | | | (7.5 | ) | | 11,040.30 | | | (11,811.8 | ) | | 1,104.80 | |
|
Total Liabilities and Shareholders’ | | $ | 12,205.60 | | | $ | 1,970.40 | | | $ | 1,887.40 | | | $ | 14,317.10 | | | $ | (16,398.5 | ) | | $ | 13,982.00 | |
Equity |
Condensed Consolidated Statement of Cash Flows | ' |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Cash Flows |
| | For the Year Ended December 31, 2013 |
(Millions) | | Windstream Corp. | | PAETEC | | Guarantors | | Non- | | Eliminations | | Consolidated |
Issuer | Guarantors |
Cash Provided from Operations: | | | | | | | | | | | | |
Net income (loss) | | $ | 241.3 | | | $ | (99.3 | ) | | $ | (73.7 | ) | | $ | 608.4 | | | $ | (435.4 | ) | | $ | 241.3 | |
|
Adjustments to reconcile net income to net | | | | | | | | | | | | |
cash provided from operations: |
Depreciation and amortization | | — | | | — | | | 397.3 | | | 944.2 | | | — | | | 1,341.50 | |
|
Provision for doubtful accounts | | — | | | — | | | 17.7 | | | 45.8 | | | — | | | 63.5 | |
|
Equity in (earnings) losses from subsidiaries | | (500.0 | ) | | 66.4 | | | 0.2 | | | (0.3 | ) | | 433.7 | | | — | |
|
Share-based compensation expense | | — | | | — | | | 16.6 | | | 28.3 | | | — | | | 44.9 | |
|
Pension income | | — | | | — | | | — | | | (115.3 | ) | | — | | | (115.3 | ) |
|
Deferred income taxes | | 36.2 | | | 27.4 | | | (24.4 | ) | | 95.6 | | | — | | | 134.8 | |
|
Unamortized net discount (premium) on | | 3.1 | | | (41.2 | ) | | — | | | — | | | — | | | (38.1 | ) |
retired debt |
Amortization of unrealized losses on | | 35.9 | | | — | | | — | | | — | | | — | | | 35.9 | |
de-designated interest rate swaps |
Gain from sale of software business | | — | | | — | | | (14.4 | ) | | — | | | — | | | (14.4 | ) |
|
Plan curtailment and other, net | | 27.5 | | | (8.0 | ) | | (3.2 | ) | | (32.1 | ) | | — | | | (15.8 | ) |
|
Changes in operating assets and liabilities, net | | (24.1 | ) | | (1.3 | ) | | (62.6 | ) | | (70.5 | ) | | — | | | (158.5 | ) |
|
Net cash (used in) provided | | (180.1 | ) | | (56.0 | ) | | 253.5 | | | 1,504.10 | | | (1.7 | ) | | 1,519.80 | |
from operations |
Cash Flows from Investing Activities: | | | | | | | | | | | | |
Additions to property, plant and equipment | | — | | | — | | | (161.2 | ) | | (679.8 | ) | | — | | | (841.0 | ) |
|
Broadband network expansion funded by | | — | | | — | | | — | | | (36.1 | ) | | — | | | (36.1 | ) |
stimulus grants |
Changes in restricted cash | | 15.3 | | | — | | | 1.5 | | | — | | | — | | | 16.8 | |
|
Grant funds received for broadband | | 68 | | | — | | | — | | | — | | | — | | | 68 | |
stimulus projects |
Grant funds received from Connect America | | — | | | — | | | — | | | 60.7 | | | — | | | 60.7 | |
Fund |
Disposition of software business | | — | | | — | | | 30 | | | — | | | — | | | 30 | |
|
Other, net | | — | | | — | | | — | | | (6.0 | ) | | — | | | (6.0 | ) |
|
Net cash provided from (used in) | | 83.3 | | | — | | | (129.7 | ) | | (661.2 | ) | | — | | | (707.6 | ) |
investing activities |
Cash Flows from Financing Activities: | | | | | | | | | | | | |
Dividends paid to shareholders | | (444.6 | ) | | — | | | — | | | — | | | — | | | (444.6 | ) |
|
Distributions to Windstream Holdings | | (0.4 | ) | | — | | | (149.0 | ) | | — | | | — | | | (149.4 | ) |
|
Repayment of debt and swaps | | (4,500.9 | ) | | (650.0 | ) | | — | | | (10.1 | ) | | — | | | (5,161.0 | ) |
|
Proceeds of debt issuance | | 4,919.60 | | | — | | | — | | | — | | | — | | | 4,919.60 | |
|
Debt issuance costs | | (30.0 | ) | | — | | | — | | | — | | | — | | | (30.0 | ) |
|
Intercompany transactions, net | | 116 | | | 706 | | | 21.4 | | | (845.1 | ) | | 1.7 | | | — | |
|
Payment under capital lease obligations | | — | | | — | | | (14.9 | ) | | (9.0 | ) | | — | | | (23.9 | ) |
|
Other, net | | (6.7 | ) | | — | | | — | | | — | | | — | | | (6.7 | ) |
|
Net cash provided from (used in) | | 53 | | | 56 | | | (142.5 | ) | | (864.2 | ) | | 1.7 | | | (896.0 | ) |
financing activities |
Decrease in cash and cash equivalents | | (43.8 | ) | | — | | | (18.7 | ) | | (21.3 | ) | | — | | | (83.8 | ) |
|
Cash and Cash Equivalents: | | | | | | | | | | | | |
Beginning of period | | 57.5 | | | — | | | 26.5 | | | 48 | | | — | | | 132 | |
|
End of period | | $ | 13.7 | | | $ | — | | | $ | 7.8 | | | $ | 26.7 | | | $ | — | | | $ | 48.2 | |
|
14. Supplemental Guarantor Information, Continued: |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Cash Flows |
| | For the Year Ended December 31, 2012 |
(Millions) | | Windstream Corp. | | PAETEC | | Guarantors | | Non- | | Eliminations | | Consolidated |
Issuer | Guarantors |
Cash Provided from Operations: | | | | | | | | | | | | |
Net income (loss) | | $ | 168 | | | $ | (58.2 | ) | | $ | (4.2 | ) | | $ | 468.5 | | | $ | (406.1 | ) | | $ | 168 | |
|
Adjustments to reconcile net income to net | | | | | | | | | | | | |
cash provided from operations: |
Depreciation and amortization | | — | | | — | | | 371.6 | | | 926 | | | — | | | 1,297.60 | |
|
Provision for doubtful accounts | | — | | | — | | | 11.5 | | | 47.9 | | | — | | | 59.4 | |
|
Equity in (earnings) losses from subsidiaries | | (404.9 | ) | | 6.7 | | | (6.3 | ) | | 0.5 | | | 404 | | | — | |
|
Share-based compensation expense | | — | | | — | | | 10.9 | | | 32.3 | | | — | | | 43.2 | |
|
Pension expense | | — | | | — | | | — | | | 67.4 | | | — | | | 67.4 | |
|
Deferred income taxes | | 54.6 | | | 27.8 | | | 34.7 | | | (38.1 | ) | | — | | | 79 | |
|
Unamortized net premium on retired debt | | — | | | (16.2 | ) | | — | | | — | | | — | | | (16.2 | ) |
|
Amortization of unrealized losses on | | 45.4 | | | — | | | — | | | — | | | — | | | 45.4 | |
de-designated interest rate swaps |
Plan curtailment and other, net | | 22.3 | | | (20.5 | ) | | 0.3 | | | (27.8 | ) | | — | | | (25.7 | ) |
|
Changes in operating assets and liabilities, net | | 275.3 | | | (41.2 | ) | | (143.1 | ) | | (31.5 | ) | | — | | | 59.5 | |
|
Net cash provided from (used in) | | 160.7 | | | (101.6 | ) | | 275.4 | | | 1,445.20 | | | (2.1 | ) | | 1,777.60 | |
operations |
Cash Flows from Investing Activities: | | | | | | | | | | | | |
Additions to property, plant and equipment | | — | | | — | | | (208.5 | ) | | (892.7 | ) | | — | | | (1,101.2 | ) |
|
Broadband network expansion funded by stimulus grants | | — | | | — | | | — | | | (105.4 | ) | | — | | | (105.4 | ) |
|
Changes in restricted cash | | (13.2 | ) | | — | | | 8.4 | | | — | | | — | | | (4.8 | ) |
|
Grant funds received for broadband | | 45.7 | | | — | | | — | | | — | | | — | | | 45.7 | |
stimulus projects |
Disposition of wireless assets | | — | | | — | | | — | | | 57 | | | — | | | 57 | |
|
Disposition of energy business | | — | | | — | | | 6.1 | | | — | | | — | | | 6.1 | |
|
Other, net | | — | | | — | | | (1.9 | ) | | 2.8 | | | — | | | 0.9 | |
|
Net cash used in (provided from) | | 32.5 | | | — | | | (195.9 | ) | | (938.3 | ) | | — | | | (1,101.7 | ) |
investing activities |
Cash Flows from Financing Activities: | | | | | | | | | | | | |
Dividends paid to shareholders | | (588.0 | ) | | — | | | — | | | — | | | — | | | (588.0 | ) |
|
Repayment of debt and swaps | | (1,744.4 | ) | | (300.0 | ) | | — | | | (10.1 | ) | | — | | | (2,054.5 | ) |
|
Proceeds of debt issuance | | 1,910.00 | | | — | | | — | | | — | | | — | | | 1,910.00 | |
|
Debt issuance costs | | (19.1 | ) | | — | | | — | | | — | | | — | | | (19.1 | ) |
|
Intercompany transactions, net | | 189.7 | | | 401.6 | | | (97.3 | ) | | (496.1 | ) | | 2.1 | | | — | |
|
Payment under capital lease obligations | | — | | | — | | | (19.2 | ) | | (0.8 | ) | | — | | | (20.0 | ) |
|
Other, net | | 0.7 | | | — | | | — | | | — | | | — | | | 0.7 | |
|
Net cash (used in) provided from | | (251.1 | ) | | 101.6 | | | (116.5 | ) | | (507.0 | ) | | 2.1 | | | (770.9 | ) |
financing activities |
Decrease in cash and cash equivalents | | (57.9 | ) | | — | | | (37.0 | ) | | (0.1 | ) | | — | | | (95.0 | ) |
|
Cash and Cash Equivalents: | | | | | | | | | | | | |
Beginning of period | | 115.4 | | | — | | | 63.5 | | | 48.1 | | | — | | | 227 | |
|
End of period | | $ | 57.5 | | | $ | — | | | $ | 26.5 | | | $ | 48 | | | $ | — | | | $ | 132 | |
|
14. Supplemental Guarantor Information, Continued: |
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Condensed Consolidated Statement of Cash Flows |
| | For the Year Ended December 31, 2011 |
(Millions) | | Windstream Corp. | | PAETEC | | Guarantors | | Non- | | Eliminations | | Consolidated |
Issuer | Guarantors |
Cash Provided from Operations: | | | | | | | | | | | | |
Net income (loss) | | $ | 169.5 | | | $ | (4.7 | ) | | $ | (3.3 | ) | | $ | 483.1 | | | $ | (475.1 | ) | | $ | 169.5 | |
|
Adjustments to reconcile net income to net | | | | | | | | | | | | |
cash provided from operations: |
Depreciation and amortization | | — | | | — | | | 28.8 | | | 818.7 | | | — | | | 847.5 | |
|
Provision for doubtful accounts | | — | | | — | | | 1.4 | | | 47.1 | | | — | | | 48.5 | |
|
Equity in (earnings) losses from subsidiaries | | (477.7 | ) | | (1.4 | ) | | 5.9 | | | (1.9 | ) | | 475.1 | | | — | |
|
Share-based compensation expense | | — | | | — | | | 0.2 | | | 23.9 | | | — | | | 24.1 | |
|
Pension expense | | — | | | — | | | — | | | 166.8 | | | — | | | 166.8 | |
|
Deferred income taxes | | 10.3 | | | — | | | (8.3 | ) | | 171.8 | | | — | | | 173.8 | |
|
Unamortized net discount on retired debt | | 21.2 | | | — | | | — | | | — | | | — | | | 21.2 | |
|
Amortization of unrealized losses on | | 49 | | | — | | | — | | | — | | | — | | | 49 | |
de-designated interest rate swaps |
Plan curtailment and other, net | | 18.6 | | | (2.2 | ) | | — | | | (19.5 | ) | | — | | | (3.1 | ) |
|
Changes in operating assets and liabilities, net | | (316.2 | ) | | (13.6 | ) | | (39.4 | ) | | 100.7 | | | — | | | (268.5 | ) |
|
Net cash (used in) provided from | | (525.3 | ) | | (21.9 | ) | | (14.7 | ) | | 1,790.70 | | | — | | | 1,228.80 | |
operations |
Cash Flows from Investing Activities: | | | | | | | | | | | | |
Additions to property, plant and equipment | | — | | | — | | | (9.0 | ) | | (693.0 | ) | | — | | | (702.0 | ) |
|
Broadband network expansion funded | | — | | | — | | | — | | | (21.7 | ) | | — | | | (21.7 | ) |
by stimulus grants |
Cash acquired from PAETEC | | — | | | — | | | 71.4 | | | — | | | — | | | 71.4 | |
|
Changes in restricted cash | | (11.9 | ) | | — | | | — | | | — | | | — | | | (11.9 | ) |
|
Grant funds received for broadband | | 4 | | | — | | | — | | | — | | | — | | | 4 | |
stimulus projects |
Other, net | | 1.8 | | | 0.6 | | | (0.8 | ) | | 6.4 | | | — | | | 8 | |
|
Net cash (used in) provided from | | (6.1 | ) | | 0.6 | | | 61.6 | | | (708.3 | ) | | — | | | (652.2 | ) |
investing activities |
Cash Flows from Financing Activities: | | | | | | | | | | | | |
Dividends paid to shareholders | | (509.6 | ) | | — | | | — | | | — | | | — | | | (509.6 | ) |
|
Repayment of debt and swaps | | (4,670.7 | ) | | (99.5 | ) | | — | | | (10.1 | ) | | — | | | (4,780.3 | ) |
|
Proceeds of debt issuance | | 4,922.00 | | | — | | | — | | | — | | | — | | | 4,922.00 | |
|
Debt issuance costs | | (30.6 | ) | | — | | | — | | | — | | | — | | | (30.6 | ) |
|
Intercompany transactions, net | | 933.3 | | | 120.8 | | | 16.6 | | | (1,070.7 | ) | | — | | | — | |
|
Payment under capital lease obligations | | — | | | — | | | — | | | (0.8 | ) | | — | | | (0.8 | ) |
|
Other, net | | (1.7 | ) | | — | | | — | | | 9.1 | | | — | | | 7.4 | |
|
Net cash provided from (used in) | | 642.7 | | | 21.3 | | | 16.6 | | | (1,072.5 | ) | | — | | | (391.9 | ) |
financing activities |
Increase in cash and cash equivalents | | 111.3 | | | — | | | 63.5 | | | 9.9 | | | — | | | 184.7 | |
|
Cash and Cash Equivalents: | | | | | | | | | | | | |
Beginning of period | | 4.1 | | | — | | | — | | | 38.2 | | | — | | | 42.3 | |
|
End of period | | $ | 115.4 | | | $ | — | | | $ | 63.5 | | | $ | 48.1 | | | $ | — | | | $ | 227 | |
|