Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Entity Registrant Name | Windstream Holdings, Inc. | ||
Entity Central Index Key | 1282266 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 602,640,018 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $6,002,460,453 | ||
Windstream Corporation [Member] | |||
Entity Registrant Name | Windstream Corporation | ||
Entity Central Index Key | 1585644 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 1,000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
WINDSTREAM_HOLDINGS_INC_CONSOL
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||
Revenues and sales: | |||||||||||||||||||||
Total service revenues | $5,647,600,000 | $5,775,500,000 | $5,908,300,000 | ||||||||||||||||||
Product sales | 181,900,000 | 212,600,000 | 231,200,000 | ||||||||||||||||||
Total revenues and sales | 1,443,100,000 | 1,455,500,000 | 1,466,000,000 | 1,464,900,000 | 1,491,400,000 | 1,498,500,000 | 1,501,700,000 | 1,496,500,000 | 5,829,500,000 | 5,988,100,000 | 6,139,500,000 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of services (exclusive of depreciation and amortization included below) | 2,719,300,000 | 2,492,100,000 | 2,692,200,000 | ||||||||||||||||||
Cost of products sold | 156,600,000 | 183,900,000 | 206,600,000 | ||||||||||||||||||
Selling, general, and administrative | 983,800,000 | 923,400,000 | 967,300,000 | ||||||||||||||||||
Depreciation and amortization | 1,386,400,000 | 1,340,900,000 | 1,296,900,000 | ||||||||||||||||||
Merger and integration costs | 40,400,000 | 30,200,000 | 65,400,000 | ||||||||||||||||||
Restructuring charges | 35,900,000 | 8,600,000 | 27,200,000 | ||||||||||||||||||
Total costs and expenses | 5,322,400,000 | 4,979,100,000 | 5,255,600,000 | ||||||||||||||||||
Operating income | 20,500,000 | 151,600,000 | 167,200,000 | 167,800,000 | 326,500,000 | 219,600,000 | 227,000,000 | 235,900,000 | 507,100,000 | 1,009,000,000 | 883,900,000 | ||||||||||
Other income (expense), net | 100,000 | -12,500,000 | 4,600,000 | ||||||||||||||||||
(Loss) gain on early extinguishment of debt | 0 | -28,500,000 | 1,900,000 | ||||||||||||||||||
Interest expense | -571,800,000 | -627,700,000 | -625,100,000 | ||||||||||||||||||
(Loss) income from continuing operations before income taxes | -64,600,000 | 340,300,000 | 265,300,000 | ||||||||||||||||||
Income tax (benefit) expense | -25,100,000 | 105,300,000 | 98,200,000 | ||||||||||||||||||
(Loss) income from continuing operations | -39,500,000 | 235,000,000 | 167,100,000 | ||||||||||||||||||
Discontinued operations | 0 | 6,000,000 | 900,000 | ||||||||||||||||||
Net (loss) income | -77,500,000 | 8,000,000 | 14,000,000 | 16,000,000 | 118,400,000 | 30,600,000 | 39,700,000 | 52,300,000 | -39,500,000 | 241,000,000 | 168,000,000 | ||||||||||
Basic and diluted (loss) earnings per share: (a) | |||||||||||||||||||||
From continuing operations | ($0.07) | $0.39 | $0.28 | ||||||||||||||||||
From discontinued operations | $0 | $0.01 | $0 | ||||||||||||||||||
Net (loss) income | ($0.13) | [1] | $0.01 | [1] | $0.02 | [1] | $0.02 | [1] | $0.20 | [1] | $0.05 | [1] | $0.06 | [1] | $0.09 | [1] | ($0.07) | [1] | $0.40 | [1] | $0.28 |
Enterprise and small business | |||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||
Total service revenues | 2,994,700,000 | 3,000,400,000 | 2,963,300,000 | ||||||||||||||||||
Consumer | |||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||
Total service revenues | 1,267,000,000 | 1,291,900,000 | 1,335,200,000 | ||||||||||||||||||
Carrier | |||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||
Total service revenues | 734,200,000 | 779,100,000 | 775,100,000 | ||||||||||||||||||
Wholesale | |||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||
Total service revenues | 432,500,000 | 482,900,000 | 586,200,000 | ||||||||||||||||||
Other | |||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||
Total service revenues | $219,200,000 | $221,200,000 | $248,500,000 | ||||||||||||||||||
[1] | Quarterly (loss) earnings 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. |
WINDSTREAM_HOLDINGS_INC_CONSOL1
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net (loss) income | ($77.50) | $8 | $14 | $16 | $118.40 | $30.60 | $39.70 | $52.30 | ($39.50) | $241 | $168 |
Interest rate swaps: | |||||||||||
Changes in designated interest rate swaps | -23.2 | 28.2 | -20.5 | ||||||||
Amortization of unrealized losses on de-designated interest rate swaps | 15.8 | 35.9 | 45.4 | ||||||||
Income tax benefit (expense) | 2.9 | -24.5 | -9.5 | ||||||||
Unrealized holding (loss) gain on interest rate swaps | -4.5 | 39.6 | 15.4 | ||||||||
Postretirement and pension plans: | |||||||||||
Prior service credit arising during the period | 0.1 | 0.9 | 1.4 | ||||||||
Change in net actuarial (loss) gain for employee benefit plans | -3.6 | 9.9 | 0.1 | ||||||||
Plan curtailments and settlements | -10 | -31.8 | -9.6 | ||||||||
Amounts included in net periodic benefit cost: | |||||||||||
Amortization of net actuarial loss | 0.1 | 1.7 | 2.3 | ||||||||
Amortization of prior service credits | -5.9 | -8.7 | -11.9 | ||||||||
Income tax benefit | 7.4 | 10.5 | 6.8 | ||||||||
Change in postretirement and pension plans | -11.9 | -17.5 | -10.9 | ||||||||
Other comprehensive (loss) income | -16.4 | 22.1 | 4.5 | ||||||||
Comprehensive (loss) income | ($55.90) | $263.10 | $172.50 |
WINDSTREAM_HOLDINGS_INC_CONSOL2
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current Assets: | ||||
Cash and cash equivalents | $27.80 | $48.20 | $132 | $227 |
Restricted cash | 6.7 | 9.7 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 635.5 | 635.3 | ||
Inventories | 63.7 | 67.7 | ||
Deferred income taxes | 105.4 | 241.5 | ||
Prepaid expenses and other | 164.6 | 182.4 | ||
Total current assets | 1,003.70 | 1,184.80 | ||
Goodwill | 4,352.80 | 4,331.40 | ||
Other intangibles, net | 1,764 | 2,020.10 | ||
Net property, plant and equipment | 5,412.30 | 5,702.60 | ||
Other assets | 180.6 | 205.7 | ||
Total Assets | 12,713.40 | 13,444.60 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 717.5 | 85 | ||
Current portion of interest rate swaps | 28.5 | 30 | ||
Accounts payable | 403.3 | 385.9 | ||
Advance payments and customer deposits | 214.7 | 223.5 | ||
Accrued dividends | 152.4 | 151.1 | ||
Accrued taxes | 95.2 | 104.2 | ||
Accrued interest | 102.5 | 103.5 | ||
Other current liabilities | 328.9 | 362.4 | ||
Total current liabilities | 2,043 | 1,445.60 | ||
Long-term debt | 7,934.20 | 8,622.20 | ||
Deferred income taxes | 1,878.60 | 2,038.30 | ||
Other liabilities | 632.8 | 498.3 | ||
Total liabilities | 12,488.60 | 12,604.40 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock, $0.0001 par value, 1,000.0 shares authorized, 602.9 and 596.2 shares issued and outstanding, respectively | 0.1 | 0.1 | ||
Additional paid-in capital | 212.6 | 811.6 | ||
Accumulated other comprehensive income | 12.1 | 28.5 | 6.4 | |
Retained earnings | 0 | 0 | ||
Total shareholders’ equity | 224.8 | 840.2 | 1,104.80 | 1,495.30 |
Total Liabilities and Shareholders' Equity | $12,713.40 | $13,444.60 |
WINDSTREAM_HOLDINGS_INC_CONSOL3
WINDSTREAM HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Current Assets: | ||
Accounts receivable, allowance for doubtful accounts | $43.40 | $40 |
Shareholders' Equity: | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 602,900,000 | 596,200,000 |
Common stock, shares outstanding | 602,900,000 | 596,200,000 |
WINDSTREAM_HOLDINGS_INC_CONSOL4
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Provided from Operations: | |||
Net (loss) income | ($39.50) | $241 | $168 |
Adjustments to reconcile net (loss) income to net cash provided from operations: | |||
Depreciation and amortization | 1,386.40 | 1,341.50 | 1,297.60 |
Provision for doubtful accounts | 54.9 | 63.5 | 59.4 |
Share-based compensation expense | 41.8 | 44.9 | 43.2 |
Pension expense (income) | 128.3 | -115.3 | 67.4 |
Deferred income taxes | -13.4 | 134.8 | 79 |
Unamortized net premium on retired debt | 0 | -38.1 | -16.2 |
Amortization of unrealized losses on de-designated interest rate swaps | 15.8 | 35.9 | 45.4 |
Gain from sale of software business | 0 | -14.4 | 0 |
Plan curtailment and other, net | 6.8 | -15.8 | -25.7 |
Changes in operating assets and liabilities, net | |||
Accounts receivable | -55 | -46.4 | -75.8 |
Income tax receivable | -1.6 | 0.6 | 123.3 |
Prepaid expenses and other | -3.3 | -20 | -29.3 |
Accounts payable | -13.1 | -21 | 63.6 |
Accrued interest | -3.1 | -10.2 | -40.8 |
Accrued taxes | -9 | -0.1 | -10.9 |
Other current liabilities | 8.4 | -49 | 36.5 |
Other liabilities | -21.5 | -9.2 | -5.8 |
Other, net | -15.6 | -3.3 | -1.3 |
Net cash provided from operations | 1,467.30 | 1,519.40 | 1,777.60 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -786.5 | -841 | -1,101.20 |
Broadband network expansion funded by stimulus grants | -13.3 | -36.1 | -105.4 |
Changes in restricted cash | 3 | 16.8 | -4.8 |
Grant funds received for broadband stimulus projects | 33.2 | 68 | 45.7 |
Grant funds received from Connect America Fund | 26 | 60.7 | 0 |
Network expansion funded by Connect America Fund | -12.8 | 0 | 0 |
Acquisition of a business | -22.6 | 0 | 0 |
Dispositions of software and energy businesses | 0 | 30 | 6.1 |
Disposition of wireless assets | 0 | 0 | 57 |
Other, net | 3.9 | -6 | 0.9 |
Net cash used in investing activities | -769.1 | -707.6 | -1,101.70 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | -602.2 | -593.6 | -588 |
Repayments of debt and swaps | -1,395.40 | -5,161 | -2,054.50 |
Proceeds of debt issuance | 1,315 | 4,919.60 | 1,910 |
Debt issuance costs | 0 | -30 | -19.1 |
Payments under capital lease obligations | -26.8 | -23.9 | -20 |
Other, net | -9.2 | -6.7 | 0.7 |
Net cash used in financing activities | -718.6 | -895.6 | -770.9 |
Decrease in cash and cash equivalents | -20.4 | -83.8 | -95 |
Cash and Cash Equivalents: | |||
Beginning of period | 48.2 | 132 | 227 |
End of period | 27.8 | 48.2 | 132 |
Supplemental Cash Flow Disclosures: | |||
Interest paid | 568.1 | 609.4 | 671.5 |
Income taxes (refunded) paid, net | ($8.80) | $5.70 | ($100.70) |
WINDSTREAM_HOLDINGS_INC_CONSOL5
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings |
In Millions, unless otherwise specified | ||||
Beginning balance at Dec. 31, 2011 | $1,495.30 | $1,493.40 | $1.90 | $0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | 168 | 0 | 0 | 168 |
Other comprehensive income (loss), net of tax: | ||||
Change in postretirement and pension plans | -10.9 | 0 | -10.9 | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 28 | 0 | 28 | 0 |
Changes in designated interest rate swaps | -12.6 | 0 | -12.6 | 0 |
Comprehensive income (loss) | 172.5 | 0 | 4.5 | 168 |
Share-based compensation expense (see Note 8) | 25.4 | 25.4 | 0 | 0 |
Stock options exercised | 6 | 6 | 0 | 0 |
Taxes withheld on vested restricted stock and other | -5.6 | -5.6 | 0 | 0 |
Dividends of $1.00 per share declared to stockholders | -588.8 | -420.8 | 0 | -168 |
Ending balance at Dec. 31, 2012 | 1,104.80 | 1,098.40 | 6.4 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | 241 | 0 | 0 | 241 |
Other comprehensive income (loss), net of tax: | ||||
Change in postretirement and pension plans | -17.5 | 0 | -17.5 | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 22.2 | 0 | 22.2 | 0 |
Changes in designated interest rate swaps | 17.4 | 0 | 17.4 | 0 |
Comprehensive income (loss) | 263.1 | 0 | 22.1 | 241 |
Share-based compensation expense (see Note 8) | 26.8 | 26.8 | 0 | 0 |
Stock options exercised | 0.8 | 0.8 | 0 | 0 |
Stock issued to employee savings plan (See Note 7) | 20.4 | 20.4 | 0 | 0 |
Stock issued to qualified pension plan (See Note 7) | 27.8 | 27.8 | 0 | 0 |
Taxes withheld on vested restricted stock and other | -8 | -8 | 0 | 0 |
Dividends of $1.00 per share declared to stockholders | -595.5 | -354.5 | 0 | -241 |
Ending balance at Dec. 31, 2013 | 840.2 | 811.7 | 28.5 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | -39.5 | 0 | 0 | -39.5 |
Other comprehensive income (loss), net of tax: | ||||
Change in postretirement and pension plans | -11.9 | 0 | -11.9 | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 9.8 | 0 | 9.8 | 0 |
Changes in designated interest rate swaps | -14.3 | 0 | -14.3 | 0 |
Comprehensive income (loss) | -55.9 | 0 | -16.4 | -39.5 |
Share-based compensation expense (see Note 8) | 22.1 | 22.1 | 0 | 0 |
Stock options exercised | 1.6 | 1.6 | 0 | 0 |
Stock issued for management incentive compensation plans (See Note 8) | 1.4 | 1.4 | 0 | 0 |
Stock issued to employee savings plan (See Note 7) | 21.6 | 21.6 | 0 | 0 |
Stock issued to qualified pension plan (See Note 7) | 8.3 | 8.3 | 0 | 0 |
Taxes withheld on vested restricted stock and other | -11.6 | -11.6 | 0 | 0 |
Dividends of $1.00 per share declared to stockholders | -602.9 | -642.4 | 0 | 39.5 |
Ending balance at Dec. 31, 2014 | $224.80 | $212.70 | $12.10 | $0 |
WINDSTREAM_HOLDINGS_INC_CONSOL6
WINDSTREAM HOLDINGS, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 0 Months Ended | 12 Months Ended | ||
Feb. 11, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends, per share declared to stockholders | $0.25 | $1 | $1 | $1 |
WINDSTREAM_CORPORATION_CONSOLI
WINDSTREAM CORPORATION CONSOLIDATED STATEMENTS OF OPERATION (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues and sales: | |||
Total service revenues | $5,647,600,000 | $5,775,500,000 | $5,908,300,000 |
Product sales | 181,900,000 | 212,600,000 | 231,200,000 |
Total revenues and sales | 5,829,500,000 | 5,988,100,000 | 6,139,500,000 |
Costs and expenses: | |||
Cost of services (exclusive of depreciation and amortization included below) | 2,719,300,000 | 2,492,100,000 | 2,692,200,000 |
Cost of products sold | 156,600,000 | 183,900,000 | 206,600,000 |
Selling, general, and administrative | 983,800,000 | 923,400,000 | 967,300,000 |
Depreciation and amortization | 1,386,400,000 | 1,340,900,000 | 1,296,900,000 |
Merger and integration costs | 40,400,000 | 30,200,000 | 65,400,000 |
Restructuring charges | 35,900,000 | 8,600,000 | 27,200,000 |
Total costs and expenses | 5,322,400,000 | 4,979,100,000 | 5,255,600,000 |
Operating income | 507,100,000 | 1,009,000,000 | 883,900,000 |
Other income (expense), net | 100,000 | -12,500,000 | 4,600,000 |
(Loss) gain on early extinguishment of debt | 0 | -28,500,000 | 1,900,000 |
Interest expense | -571,800,000 | -627,700,000 | -625,100,000 |
(Loss) income from continuing operations before income taxes | -64,600,000 | 340,300,000 | 265,300,000 |
Income tax (benefit) expense | -25,100,000 | 105,300,000 | 98,200,000 |
(Loss) income from continuing operations | -39,500,000 | 235,000,000 | 167,100,000 |
Discontinued operations | 0 | 6,000,000 | 900,000 |
Net (loss) income | -39,500,000 | 241,000,000 | 168,000,000 |
Enterprise and small business | |||
Revenues and sales: | |||
Total service revenues | 2,994,700,000 | 3,000,400,000 | 2,963,300,000 |
Consumer | |||
Revenues and sales: | |||
Total service revenues | 1,267,000,000 | 1,291,900,000 | 1,335,200,000 |
Carrier | |||
Revenues and sales: | |||
Total service revenues | 734,200,000 | 779,100,000 | 775,100,000 |
Wholesale | |||
Revenues and sales: | |||
Total service revenues | 432,500,000 | 482,900,000 | 586,200,000 |
Other | |||
Revenues and sales: | |||
Total service revenues | 219,200,000 | 221,200,000 | 248,500,000 |
Windstream Corporation [Member] | |||
Revenues and sales: | |||
Total service revenues | 5,647,600,000 | 5,775,500,000 | 5,908,300,000 |
Product sales | 181,900,000 | 212,600,000 | 231,200,000 |
Total revenues and sales | 5,829,500,000 | 5,988,100,000 | 6,139,500,000 |
Costs and expenses: | |||
Cost of services (exclusive of depreciation and amortization included below) | 2,719,300,000 | 2,492,100,000 | 2,692,200,000 |
Cost of products sold | 156,600,000 | 183,900,000 | 206,600,000 |
Selling, general, and administrative | 981,500,000 | 922,900,000 | 967,300,000 |
Depreciation and amortization | 1,386,400,000 | 1,340,900,000 | 1,296,900,000 |
Merger and integration costs | 40,400,000 | 30,200,000 | 65,400,000 |
Restructuring charges | 35,900,000 | 8,600,000 | 27,200,000 |
Total costs and expenses | 5,320,100,000 | 4,978,600,000 | 5,255,600,000 |
Operating income | 509,400,000 | 1,009,500,000 | 883,900,000 |
Other income (expense), net | 100,000 | -12,500,000 | 4,600,000 |
(Loss) gain on early extinguishment of debt | 0 | -28,500,000 | 1,900,000 |
Interest expense | -571,800,000 | -627,700,000 | -625,100,000 |
(Loss) income from continuing operations before income taxes | -62,300,000 | 340,800,000 | 265,300,000 |
Income tax (benefit) expense | -24,200,000 | 105,500,000 | 98,200,000 |
(Loss) income from continuing operations | -38,100,000 | 235,300,000 | 167,100,000 |
Discontinued operations | 0 | 6,000,000 | 900,000 |
Net (loss) income | -38,100,000 | 241,300,000 | 168,000,000 |
Windstream Corporation [Member] | Enterprise and small business | |||
Revenues and sales: | |||
Total service revenues | 2,994,700,000 | 3,000,400,000 | 2,963,300,000 |
Windstream Corporation [Member] | Consumer | |||
Revenues and sales: | |||
Total service revenues | 1,267,000,000 | 1,291,900,000 | 1,335,200,000 |
Windstream Corporation [Member] | Carrier | |||
Revenues and sales: | |||
Total service revenues | 734,200,000 | 779,100,000 | 775,100,000 |
Windstream Corporation [Member] | Wholesale | |||
Revenues and sales: | |||
Total service revenues | 432,500,000 | 482,900,000 | 586,200,000 |
Windstream Corporation [Member] | Other | |||
Revenues and sales: | |||
Total service revenues | $219,200,000 | $221,200,000 | $248,500,000 |
WINDSTREAM_CORPORATION_CONSOLI1
WINDSTREAM CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net (loss) income | ($39.50) | $241 | $168 |
Interest rate swaps: | |||
Changes in designated interest rate swaps | -23.2 | 28.2 | -20.5 |
Amortization of unrealized losses on de-designated interest rate swaps | 15.8 | 35.9 | 45.4 |
Income tax benefit (expense) | 2.9 | -24.5 | -9.5 |
Unrealized holding (loss) gain on interest rate swaps | -4.5 | 39.6 | 15.4 |
Postretirement and pension plans: | |||
Prior service credit arising during the period | 0.1 | 0.9 | 1.4 |
Change in net actuarial (loss) gain for employee benefit plans | -3.6 | 9.9 | 0.1 |
Plan curtailments and settlements | -10 | -31.8 | -9.6 |
Amounts included in net periodic benefit cost: | |||
Amortization of net actuarial loss | 0.1 | 1.7 | 2.3 |
Amortization of prior service credits | -5.9 | -8.7 | -11.9 |
Income tax benefit | 7.4 | 10.5 | 6.8 |
Change in postretirement and pension plans | -11.9 | -17.5 | -10.9 |
Other comprehensive (loss) income | -16.4 | 22.1 | 4.5 |
Comprehensive (loss) income | -55.9 | 263.1 | 172.5 |
Windstream Corporation [Member] | |||
Net (loss) income | -38.1 | 241.3 | 168 |
Interest rate swaps: | |||
Changes in designated interest rate swaps | -23.2 | 28.2 | -20.5 |
Amortization of unrealized losses on de-designated interest rate swaps | 15.8 | 35.9 | 45.4 |
Income tax benefit (expense) | 2.9 | -24.5 | -9.5 |
Unrealized holding (loss) gain on interest rate swaps | -4.5 | 39.6 | 15.4 |
Postretirement and pension plans: | |||
Prior service credit arising during the period | 0.1 | 0.9 | 1.4 |
Change in net actuarial (loss) gain for employee benefit plans | -3.6 | 9.9 | 0.1 |
Plan curtailments and settlements | -10 | -31.8 | -9.6 |
Amounts included in net periodic benefit cost: | |||
Amortization of net actuarial loss | 0.1 | 1.7 | 2.3 |
Amortization of prior service credits | -5.9 | -8.7 | -11.9 |
Income tax benefit | 7.4 | 10.5 | 6.8 |
Change in postretirement and pension plans | -11.9 | -17.5 | -10.9 |
Other comprehensive (loss) income | -16.4 | 22.1 | 4.5 |
Comprehensive (loss) income | ($54.50) | $263.40 | $172.50 |
WINDSTREAM_CORPORATION_CONSOLI2
WINDSTREAM CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED) Statement (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current Assets: | ||
Cash and cash equivalents | $27.80 | $48.20 |
Restricted cash | 6.7 | 9.7 |
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 635.5 | 635.3 |
Inventories | 63.7 | 67.7 |
Deferred income taxes | 105.4 | 241.5 |
Prepaid expenses and other | 164.6 | 182.4 |
Total current assets | 1,003.70 | 1,184.80 |
Goodwill | 4,352.80 | 4,331.40 |
Other intangibles, net | 1,764 | 2,020.10 |
Net property, plant and equipment | 5,412.30 | 5,702.60 |
Other assets | 180.6 | 205.7 |
Total Assets | 12,713.40 | 13,444.60 |
Current Liabilities: | ||
Current maturities of long-term debt | 717.5 | 85 |
Current portion of interest rate swaps | 28.5 | 30 |
Accounts payable | 403.3 | 385.9 |
Advance payments and customer deposits | 214.7 | 223.5 |
Accrued dividends | 152.4 | 151.1 |
Accrued taxes | 95.2 | 104.2 |
Accrued interest | 102.5 | 103.5 |
Other current liabilities | 328.9 | 362.4 |
Total current liabilities | 2,043 | 1,445.60 |
Long-term debt | 7,934.20 | 8,622.20 |
Deferred income taxes | 1,878.60 | 2,038.30 |
Other liabilities | 632.8 | 498.3 |
Total liabilities | 12,488.60 | 12,604.40 |
Commitments and Contingencies (See Note 12) | ||
Shareholders' Equity: | ||
Additional paid-in capital | 212.6 | 811.6 |
Accumulated other comprehensive income | 12.1 | 28.5 |
Retained earnings | 0 | 0 |
Total shareholders’ equity | 224.8 | 840.2 |
Total Liabilities and Shareholders' Equity | 12,713.40 | 13,444.60 |
Windstream Corporation [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 27.8 | 48.2 |
Restricted cash | 6.7 | 9.7 |
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 635.5 | 635.3 |
Inventories | 63.7 | 67.7 |
Deferred income taxes | 105.4 | 241.5 |
Prepaid expenses and other | 164.6 | 182.4 |
Total current assets | 1,003.70 | 1,184.80 |
Goodwill | 4,352.80 | 4,331.40 |
Other intangibles, net | 1,764 | 2,020.10 |
Net property, plant and equipment | 5,412.30 | 5,702.60 |
Other assets | 180.6 | 205.7 |
Total Assets | 12,713.40 | 13,444.60 |
Current Liabilities: | ||
Current maturities of long-term debt | 717.5 | 85 |
Current portion of interest rate swaps | 28.5 | 30 |
Accounts payable | 403.3 | 385.9 |
Advance payments and customer deposits | 214.7 | 223.5 |
Payable to Windstream Holdings, Inc. | 152.4 | 150.7 |
Accrued taxes | 95.2 | 104.3 |
Accrued interest | 102.5 | 103.5 |
Other current liabilities | 328.9 | 362.4 |
Total current liabilities | 2,043 | 1,445.30 |
Long-term debt | 7,934.20 | 8,622.20 |
Deferred income taxes | 1,878.60 | 2,038.30 |
Other liabilities | 632.8 | 498.3 |
Total liabilities | 12,488.60 | 12,604.10 |
Commitments and Contingencies (See Note 12) | ||
Shareholders' Equity: | ||
Common stock, 1,000 shares issued and outstanding (See Note 1) | 0 | 0 |
Additional paid-in capital | 212.7 | 812 |
Accumulated other comprehensive income | 12.1 | 28.5 |
Retained earnings | 0 | 0 |
Total shareholders’ equity | 224.8 | 840.5 |
Total Liabilities and Shareholders' Equity | $12,713.40 | $13,444.60 |
WINDSTREAM_CORPORATION_CONSOLI3
WINDSTREAM CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICALS) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts | $43.40 | $40 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 602,900,000 | 596,200,000 |
Common stock, shares outstanding | 602,900,000 | 596,200,000 |
Windstream Corporation [Member] | ||
Accounts receivable, allowance for doubtful accounts | $43.40 | $40 |
Common stock, shares issued | 1,000 | 1,000 |
Common stock, shares outstanding | 1,000 | 1,000 |
WINDSTREAM_CORPORATION_CONSOLI4
WINDSTREAM CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Provided from Operations: | |||
Net (loss) income | ($39.50) | $241 | $168 |
Adjustments to reconcile net (loss) income to net cash provided from operations: | |||
Depreciation and amortization | 1,386.40 | 1,341.50 | 1,297.60 |
Provision for doubtful accounts | 54.9 | 63.5 | 59.4 |
Share-based compensation expense | 41.8 | 44.9 | 43.2 |
Pension expense (income) | 128.3 | -115.3 | 67.4 |
Deferred income taxes | -13.4 | 134.8 | 79 |
Unamortized net premium on retired debt | 0 | -38.1 | -16.2 |
Amortization of unrealized losses on de-designated interest rate swaps | 15.8 | 35.9 | 45.4 |
Gain from sale of software business | 0 | -14.4 | 0 |
Plan curtailment and other, net | 6.8 | -15.8 | -25.7 |
Changes in operating assets and liabilities, net | |||
Accounts receivable | -55 | -46.4 | -75.8 |
Income tax receivable | -1.6 | 0.6 | 123.3 |
Prepaid expenses and other | -3.3 | -20 | -29.3 |
Accounts payable | -13.1 | -21 | 63.6 |
Accrued interest | -3.1 | -10.2 | -40.8 |
Accrued taxes | -9 | -0.1 | -10.9 |
Other current liabilities | 8.4 | -49 | 36.5 |
Other liabilities | -21.5 | -9.2 | -5.8 |
Other, net | -15.6 | -3.3 | -1.3 |
Net cash provided from operations | 1,467.30 | 1,519.40 | 1,777.60 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -786.5 | -841 | -1,101.20 |
Broadband network expansion funded by stimulus grants | -13.3 | -36.1 | -105.4 |
Changes in restricted cash | 3 | 16.8 | -4.8 |
Grant funds received for broadband stimulus projects | 33.2 | 68 | 45.7 |
Grant funds received from Connect America Fund | 26 | 60.7 | 0 |
Network expansion funded by Connect America Fund | -12.8 | 0 | 0 |
Acquisition of a business | -22.6 | 0 | 0 |
Dispositions of software and energy businesses | 0 | 30 | 6.1 |
Disposition of wireless assets | 0 | 0 | 57 |
Other, net | 3.9 | -6 | 0.9 |
Net cash used in investing activities | -769.1 | -707.6 | -1,101.70 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | -602.2 | -593.6 | -588 |
Repayments of debt and swaps | -1,395.40 | -5,161 | -2,054.50 |
Proceeds of debt issuance | 1,315 | 4,919.60 | 1,910 |
Debt issuance costs | 0 | -30 | -19.1 |
Payments under capital lease obligations | -26.8 | -23.9 | -20 |
Other, net | -9.2 | -6.7 | 0.7 |
Net cash used in financing activities | -718.6 | -895.6 | -770.9 |
Decrease in cash and cash equivalents | -20.4 | -83.8 | -95 |
Cash and Cash Equivalents: | |||
Beginning of period | 48.2 | 132 | 227 |
End of period | 27.8 | 48.2 | 132 |
Supplemental Cash Flow Disclosures: | |||
Interest paid | 568.1 | 609.4 | 671.5 |
Income taxes (refunded) paid, net | -8.8 | 5.7 | -100.7 |
Windstream Corporation [Member] | |||
Cash Provided from Operations: | |||
Net (loss) income | -38.1 | 241.3 | 168 |
Adjustments to reconcile net (loss) income to net cash provided from operations: | |||
Depreciation and amortization | 1,386.40 | 1,341.50 | 1,297.60 |
Provision for doubtful accounts | 54.9 | 63.5 | 59.4 |
Share-based compensation expense | 41.8 | 44.9 | 43.2 |
Pension expense (income) | 128.3 | -115.3 | 67.4 |
Deferred income taxes | -13.4 | 134.8 | 79 |
Unamortized net premium on retired debt | 0 | -38.1 | -16.2 |
Amortization of unrealized losses on de-designated interest rate swaps | 15.8 | 35.9 | 45.4 |
Gain from sale of software business | 0 | -14.4 | 0 |
Plan curtailment and other, net | 6.8 | -15.8 | -25.7 |
Changes in operating assets and liabilities, net | |||
Accounts receivable | -55 | -46.4 | -75.8 |
Income tax receivable | -1.6 | 0.6 | 123.3 |
Prepaid expenses and other | -3.3 | -20 | -29.3 |
Accounts payable | -13.1 | -21 | 63.6 |
Accrued interest | -3.1 | -10.2 | -40.8 |
Accrued taxes | -9 | 0 | -10.9 |
Other current liabilities | 8.4 | -49 | 36.5 |
Other liabilities | -21.5 | -9.2 | -5.8 |
Other, net | -15.6 | -3.3 | -1.3 |
Net cash provided from operations | 1,468.70 | 1,519.80 | 1,777.60 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -786.5 | -841 | -1,101.20 |
Broadband network expansion funded by stimulus grants | -13.3 | -36.1 | -105.4 |
Changes in restricted cash | 3 | 16.8 | -4.8 |
Grant funds received for broadband stimulus projects | 33.2 | 68 | 45.7 |
Grant funds received from Connect America Fund | 26 | 60.7 | 0 |
Network expansion funded by Connect America Fund | -12.8 | 0 | 0 |
Acquisition of a business | -22.6 | 0 | 0 |
Dispositions of software and energy businesses | 0 | 30 | 6.1 |
Disposition of wireless assets | 0 | 0 | 57 |
Other, net | 3.9 | -6 | 0.9 |
Net cash used in investing activities | -769.1 | -707.6 | -1,101.70 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | -444.6 | -588 |
Distributions to Windstream Holdings, Inc. | -603.6 | -149.4 | 0 |
Repayments of debt and swaps | -1,395.40 | -5,161 | -2,054.50 |
Proceeds of debt issuance | 1,315 | 4,919.60 | 1,910 |
Debt issuance costs | 0 | -30 | -19.1 |
Payments under capital lease obligations | -26.8 | -23.9 | -20 |
Other, net | -9.2 | -6.7 | 0.7 |
Net cash used in financing activities | -720 | -896 | -770.9 |
Decrease in cash and cash equivalents | -20.4 | -83.8 | -95 |
Cash and Cash Equivalents: | |||
Beginning of period | 48.2 | 132 | 227 |
End of period | 27.8 | 48.2 | 132 |
Supplemental Cash Flow Disclosures: | |||
Interest paid | 568.1 | 609.4 | 671.5 |
Income taxes (refunded) paid, net | ($8.80) | $5.70 | ($100.70) |
WINDSTREAM_CORPORATION_CONSOLI5
WINDSTREAM CORPORATION CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) Statement (USD $) | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | Windstream Corporation [Member] | Windstream Corporation [Member] | Windstream Corporation [Member] | Windstream Corporation [Member] |
In Millions, unless otherwise specified | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income | Retained Earnings | |||||
Beginning balance at Dec. 31, 2011 | $1,495.30 | $1,493.40 | $1.90 | $0 | $1,495.30 | $1,493.40 | $1.90 | $0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 168 | 0 | 0 | 168 | 168 | 0 | 0 | 168 |
Other comprehensive income (loss), net of tax: | ||||||||
Change in postretirement and pension plans | -10.9 | 0 | -10.9 | 0 | -10.9 | 0 | -10.9 | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 28 | 0 | 28 | 0 | 28 | 0 | 28 | 0 |
Changes in designated interest rate swaps | -12.6 | 0 | -12.6 | 0 | -12.6 | 0 | -12.6 | 0 |
Comprehensive income (loss) | 172.5 | 0 | 4.5 | 168 | 172.5 | 0 | 4.5 | 168 |
Share-based compensation expense (see Note 8) | 25.4 | 25.4 | 0 | 0 | 25.4 | 25.4 | 0 | 0 |
Stock options exercised | 6 | 6 | 0 | 0 | 6 | 6 | 0 | 0 |
Taxes withheld on vested restricted stock and other | -5.6 | -5.6 | 0 | 0 | -5.6 | -5.6 | 0 | 0 |
Dividends per share declared to stockholders | -588.8 | -420.8 | 0 | -168 | -588.8 | -420.8 | 0 | -168 |
Ending balance at Dec. 31, 2012 | 1,104.80 | 1,098.40 | 6.4 | 0 | 1,104.80 | 1,098.40 | 6.4 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | 241 | 0 | 0 | 241 | 241.3 | 0 | 0 | 241.3 |
Other comprehensive income (loss), net of tax: | ||||||||
Change in postretirement and pension plans | -17.5 | 0 | -17.5 | 0 | -17.5 | 0 | -17.5 | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 22.2 | 0 | 22.2 | 0 | 22.2 | 0 | 22.2 | 0 |
Changes in designated interest rate swaps | 17.4 | 0 | 17.4 | 0 | 17.4 | 0 | 17.4 | 0 |
Comprehensive income (loss) | 263.1 | 0 | 22.1 | 241 | 263.4 | 0 | 22.1 | 241.3 |
Share-based compensation expense (see Note 8) | 26.8 | 26.8 | 0 | 0 | 26.8 | 26.8 | 0 | 0 |
Stock options exercised | 0.8 | 0.8 | 0 | 0 | 0.8 | 0.8 | 0 | 0 |
Stock issued to employee savings plan (See Note 7) | 20.4 | 20.4 | 0 | 0 | 20.4 | 20.4 | 0 | 0 |
Stock issued to qualified pension plan (See Note 7) | 27.8 | 27.8 | 0 | 0 | 27.8 | 27.8 | 0 | 0 |
Taxes withheld on vested restricted stock and other | -8 | -8 | 0 | 0 | -8 | -8 | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | -298.8 | -149.5 | 0 | -149.3 | ||||
Dividends per share declared to stockholders | -595.5 | -354.5 | 0 | -241 | -296.7 | -204.7 | 0 | -92 |
Ending balance at Dec. 31, 2013 | 840.2 | 811.7 | 28.5 | 0 | 840.5 | 812 | 28.5 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net (loss) income | -39.5 | 0 | 0 | -39.5 | -38.1 | 0 | 0 | -38.1 |
Other comprehensive income (loss), net of tax: | ||||||||
Change in postretirement and pension plans | -11.9 | 0 | -11.9 | 0 | -11.9 | 0 | -11.9 | 0 |
Amortization of unrealized losses on de-designated interest rate swaps | 9.8 | 0 | 9.8 | 0 | 9.8 | 0 | 9.8 | 0 |
Changes in designated interest rate swaps | -14.3 | 0 | -14.3 | 0 | -14.3 | 0 | -14.3 | 0 |
Comprehensive income (loss) | -55.9 | 0 | -16.4 | -39.5 | -54.5 | 0 | -16.4 | -38.1 |
Share-based compensation expense (see Note 8) | 22.1 | 22.1 | 0 | 0 | 22.1 | 22.1 | 0 | 0 |
Stock options exercised | 1.6 | 1.6 | 0 | 0 | 1.6 | 1.6 | 0 | 0 |
Stock issued for management incentive compensation plans (See Note 8) | 1.4 | 1.4 | 0 | 0 | 1.4 | 1.4 | 0 | 0 |
Stock issued to employee savings plan (See Note 7) | 21.6 | 21.6 | 0 | 0 | 21.6 | 21.6 | 0 | 0 |
Stock issued to qualified pension plan (See Note 7) | 8.3 | 8.3 | 0 | 0 | 8.3 | 8.3 | 0 | 0 |
Taxes withheld on vested restricted stock and other | -11.6 | -11.6 | 0 | 0 | -11.6 | -11.6 | 0 | 0 |
Distributions payable to Windstream Holdings, Inc. | -604.6 | -642.7 | 0 | 38.1 | ||||
Dividends per share declared to stockholders | -602.9 | -642.4 | 0 | 39.5 | ||||
Ending balance at Dec. 31, 2014 | $224.80 | $212.70 | $12.10 | $0 | $224.80 | $212.70 | $12.10 | $0 |
WINDSTREAM_CORPORATION_CONSOLI6
WINDSTREAM CORPORATION CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY PARENTHETICAL (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Dividends, per share declared to stockholders | $1 | $1 |
Windstream Corporation [Member] | ||
Dividends, per share declared to stockholders | $0.50 | $1 |
Schedule_I_Condensed_Financial
Schedule I - Condensed Financial Information of the Registrant (Parent Company) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||
Condensed Financial Information of Parent Company Only Disclosure | STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||
(Millions) | For the Year Ended | For the period of August 30, 2013 | |||||||
31-Dec-14 | (date of formation) | ||||||||
to December 31, 2013 | |||||||||
Costs and expenses: | |||||||||
Selling, general, and administrative | $ | 2.3 | $ | 0.5 | |||||
Total costs and expenses | 2.3 | 0.5 | |||||||
Operating loss | (2.3 | ) | (0.5 | ) | |||||
Loss before income taxes and equity in subsidiaries | (2.3 | ) | (0.5 | ) | |||||
Income tax benefit | (0.9 | ) | (0.2 | ) | |||||
Loss before equity in subsidiaries | (1.4 | ) | (0.3 | ) | |||||
Equity (losses) earnings from subsidiaries | (38.1 | ) | 137.6 | ||||||
Net (loss) income | $ | (39.5 | ) | $ | 137.3 | ||||
Comprehensive (loss) income | $ | (55.9 | ) | $ | 134.4 | ||||
See Notes to Condensed Financial Information (Parent Company) and Notes to Consolidated Financial Statements of Windstream Holdings, Inc. and Subsidiaries included in the Financial Supplement | |||||||||
BALANCE SHEETS | |||||||||
(Millions, except par value) | |||||||||
Assets | 2014 | 2013 | |||||||
Current Assets: | |||||||||
Distributions receivable from Windstream Corp. | $ | 152.4 | $ | 150.7 | |||||
Other current assets | — | 0.1 | |||||||
Total current assets | 152.4 | 150.8 | |||||||
Investment in affiliate | 224.8 | 840.5 | |||||||
Total Assets | $ | 377.2 | $ | 991.3 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Current liabilities: | |||||||||
Accrued dividends | $ | 152.4 | $ | 151.1 | |||||
Total current liabilities | 152.4 | 151.1 | |||||||
Shareholders’ Equity: | |||||||||
Common stock, $0.0001 par value, 1,000.0 shares authorized, | |||||||||
602.9 and 596.2 shares issued and outstanding | 0.1 | 0.1 | |||||||
Additional paid-in capital | 212.6 | 811.6 | |||||||
Accumulated other comprehensive income | 12.1 | 28.5 | |||||||
Retained earnings | — | — | |||||||
Total shareholders’ equity | 224.8 | 840.2 | |||||||
Total Liabilities and Shareholders’ Equity | $ | 377.2 | $ | 991.3 | |||||
See Notes to Condensed Financial Information (Parent Company) and Notes to Consolidated Financial Statements of Windstream Holdings, Inc. and Subsidiaries included in the Financial Supplement | |||||||||
STATEMENTS OF CASH FLOWS | |||||||||
(Millions) | For the Year Ended | For the period of August 30, 2013 | |||||||
31-Dec-14 | (date of formation) | ||||||||
to December 31, 2013 | |||||||||
Cash Provided from Operations: | |||||||||
Net (loss) income | $ | (39.5 | ) | $ | 137.3 | ||||
Adjustments to reconcile net (loss) income to net cash provided from | |||||||||
operations: | |||||||||
Equity in losses (earnings) from subsidiaries | 38.1 | (137.6 | ) | ||||||
Changes in operating assets and liabilities, net: | |||||||||
Other current assets | — | (0.1 | ) | ||||||
Net cash used in operating activities | (1.4 | ) | (0.4 | ) | |||||
Cash Flows from Financing Activities: | |||||||||
Dividends paid to shareholders | (602.2 | ) | (149.0 | ) | |||||
Distributions from Windstream Corp | 603.6 | 149.4 | |||||||
Net cash provided by financing activities | 1.4 | 0.4 | |||||||
Change in cash and cash equivalents | — | — | |||||||
Cash and Cash Equivalents: | |||||||||
Beginning of period | — | — | |||||||
End of period | $ | — | $ | — | |||||
See Notes to Condensed Financial Information (Parent Company) and Notes to Consolidated Financial Statements of Windstream Holdings, Inc. and Subsidiaries included in the Financial Supplement |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | WINDSTREAM HOLDINGS, INC. | ||||||||||||||||||||||||
WINDSTREAM CORPORATION | |||||||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||||||||||
Additions | |||||||||||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance at | ||||||||||||||||||||
Beginning | Cost and | to Other | End of | ||||||||||||||||||||||
of Period | Expenses | Accounts | Period | ||||||||||||||||||||||
Allowance for doubtful accounts, customers and others: | |||||||||||||||||||||||||
For the years ended: | |||||||||||||||||||||||||
December 31, 2014 | $ | 40 | $ | 54.8 | $ | — | $ | 51.4 | (a) | $ | 43.4 | ||||||||||||||
December 31, 2013 | $ | 42.6 | $ | 63.5 | $ | — | $ | 66.1 | (a) | $ | 40 | ||||||||||||||
December 31, 2012 | $ | 29.9 | $ | 59.4 | $ | — | $ | 46.7 | (a) | $ | 42.6 | ||||||||||||||
Valuation allowance for deferred tax assets: | |||||||||||||||||||||||||
For the years ended: | |||||||||||||||||||||||||
December 31, 2014 | $ | 84.9 | $ | 10 | $ | — | $ | — | $ | 94.9 | |||||||||||||||
December 31, 2013 | $ | 85.9 | $ | 7.1 | $ | — | $ | 8.1 | (b) | $ | 84.9 | ||||||||||||||
December 31, 2012 | $ | 165.9 | $ | 0.4 | $ | — | $ | 80.4 | (c) | $ | 85.9 | ||||||||||||||
Accrued liabilities related to merger, | |||||||||||||||||||||||||
integration and restructuring charges: | |||||||||||||||||||||||||
For the years ended: | |||||||||||||||||||||||||
December 31, 2014 | $ | 14 | $ | 76.3 | (d) | $ | — | $ | 79.1 | (f) | $ | 11.2 | |||||||||||||
December 31, 2013 | $ | 20.1 | $ | 38.8 | (e) | $ | — | $ | 44.9 | (f) | $ | 14 | |||||||||||||
December 31, 2012 | $ | 12.9 | $ | 92.6 | (g) | $ | — | $ | 85.4 | (f) | $ | 20.1 | |||||||||||||
Notes: | |||||||||||||||||||||||||
(a) | Accounts charged off net of recoveries of amounts previously written off. | ||||||||||||||||||||||||
(b) | 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. | ||||||||||||||||||||||||
(c) | Represents adjustment recorded through goodwill to valuation allowance for deferred taxes related to expected realization of net operating losses assumed from acquisition of PAETEC. | ||||||||||||||||||||||||
(d) | Costs primarily consist of charges for various information technology conversions, consulting fees and other expenses incurred related to the proposed spin-off of certain telecommunications network assets, and severance and other employee benefit costs resulting from workforce reductions completed during the year. | ||||||||||||||||||||||||
(e) | Costs primarily represent charges related to information technology conversions and network efficiency projects. | ||||||||||||||||||||||||
(f) | Represents cash outlays for merger, integration and restructuring costs. | ||||||||||||||||||||||||
(g) | Costs primarily include charges for accounting, legal, broker fees and other miscellaneous costs associated with the acquisitions of NuVox, Q-Comm and PAETEC. In addition, we incurred employee transition costs, primarily severance related, in conjunction with the integration of NuVox, Q-Comm and PAETEC. | ||||||||||||||||||||||||
See Note 9, “Merger, Integration and Restructuring Charges”, to the consolidated financial statements on page F-72 in the Financial Supplement, which is incorporated herein by reference, for additional information regarding the merger, integration and restructuring charges recorded by us in 2014, 2013 and 2012. |
Background_and_Basis_for_Prese
Background and Basis for Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation: | Background and Basis for Presentation: |
In these consolidated financial statements, unless the context requires otherwise, the use of the terms “Windstream,” “we,” “us” or “our” shall refer to Windstream Holdings, Inc. and its subsidiaries, including Windstream Corporation, and the term “Windstream Corp.” shall refer to Windstream Corporation and its subsidiaries. | |
Organizational Structure – Windstream Holdings, Inc. (“Windstream Holdings”) is a publicly traded holding company and the parent of Windstream Corporation (“Windstream Corp.”). Windstream Holdings common stock trades on the Nasdaq Global Select Market under the ticker symbol “WIN”. Windstream Corp. common stock, consisting of 1,000 shares outstanding, all of which are held by Windstream Holdings, does not trade on any stock market. Windstream Corp. 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 Corp.’s debt agreements. The Windstream Holdings board of directors and officers oversee both companies. | |
Description of Business – We are a leading provider of advanced communications and technology solutions, including managed services and cloud computing, to businesses nationwide. In addition to business services, we offer broadband, voice and video services to consumers in primarily rural markets. We have operations in 48 states and the District of Columbia, a local and long-haul fiber network spanning approximately 121,000 miles, a robust business sales division and 27 data centers offering managed services and cloud computing. | |
Enterprise and small business service revenues include revenues from integrated voice and data services, advanced data, traditional voice and long-distance services to enterprise and small business customers. Carrier revenues include revenues from other carriers for special access circuits and fiber connections as well as voice and data services sold on a wholesale basis. Consumer service revenues are generated from the provision of high-speed Internet, voice and video services to consumers. Wholesale service revenues include switched access revenues and Universal Service Fund (“USF”) revenues. Other service revenues include USF surcharge revenues, other miscellaneous services and consumer revenues generated in markets where we lease the connection to the customer premise. We no longer offer new consumer service in those areas. | |
Basis of Presentation – The consolidated financial statements include the accounts of Windstream Holdings, Windstream Corp. and the accounts of its subsidiaries. All affiliated transactions have been eliminated. | |
There are no significant differences between the consolidated results of operations, financial condition, and cash flows of Windstream Holdings and those of Windstream Corp. other than for certain expenses incurred directly by Windstream Holdings principally consisting of audit, legal and board of director fees, Nasdaq listing fees, other shareholder-related costs, income taxes, common stock activity, and payables from Windstream Corp. to Windstream Holdings. Earnings per share data has not been presented for Windstream Corp., because that entity has not issued publicly held common stock as defined in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). Unless otherwise indicated, the note disclosures included herein pertain to both Windstream Holdings and Windstream Corp. | |
Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact net (loss) income or comprehensive (loss) income. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Significant Accounting Policies and New Accounting Pronouncements [Abstract] | |||||||||||||
Summary of Significant Accounting Policies: | Summary of Significant Accounting Policies and Changes: | ||||||||||||
Significant Accounting Policies | |||||||||||||
Use of Estimates – The preparation of financial statements, in accordance with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. | |||||||||||||
2. Summary of Significant Accounting Policies and Changes, Continued: | |||||||||||||
Business Segments – We are organized based on the services and products that we offer. Our chief operating decision maker assesses performance and allocates resources based on our consolidated results of operations. Under this organizational and reporting structure, our operations consist of one reportable segment. See the accompanying consolidated statements of operations for additional information regarding the types of revenue our business generates. | |||||||||||||
Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. | |||||||||||||
Restricted Cash – Restricted cash consists of cash restricted for uses other than current operations. We have placed cash into pledged deposit accounts for our share of committed spend on construction contracts currently under review by the Rural Utilities Service (“RUS”), part of the United States Department of Agriculture, for broadband stimulus grants. Changes in the restricted cash balances are reflected as cash inflows or outflows in the investing activities section of the consolidated statements of cash flows. | |||||||||||||
Accounts Receivable – Accounts receivable consist principally of trade receivables from customers and are generally unsecured and due within 30 days. Expected credit losses related to trade accounts receivable are recorded as an allowance for doubtful accounts in the consolidated balance sheets. In establishing the allowance for doubtful accounts, we consider a number of factors, including historical collection experience, aging of the accounts receivable balances, current economic conditions and a specific customer’s ability to meet its financial obligations. When internal collection efforts on accounts have been exhausted, the accounts are written off by reducing the allowance for doubtful accounts. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up our customer base. Due to varying customer billing cycle cut-off, we must estimate service revenues earned but not yet billed at the end of each reporting period. Included in accounts receivable are unbilled receivables related to communications services and product sales of $40.2 million and $46.3 million at December 31, 2014 and 2013, respectively. | |||||||||||||
Inventories – Inventories consist of finished goods and are stated at the lower of cost or market value. Cost is determined using either an average original cost or specific identification method of valuation. | |||||||||||||
Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets consist of prepaid services, rent, insurance, maintenance contracts and refundable deposits. Prepayments are expensed on a straight-line basis over the corresponding life of the underlying agreements. | |||||||||||||
Broadband Stimulus Grants – Capital expenditures related to the broadband stimulus grants are initially recorded to construction in progress. A receivable totaling 75 percent of the gross spend, representing the expected reimbursement from the RUS is recorded during the same period, offsetting the amounts recorded in construction in progress. The resulting balance sheet presentation reflects our 25 percent investment in these assets in property, plant and equipment. Once an asset is placed into service, depreciation is calculated and recorded based on our 25 percent investment in the equipment. Initial outlays to purchase stimulus-related assets are reflected as outflows in the investing activities section of the consolidated statements of cash flows. Grant funds received from the RUS are shown as inflows in the investing activities section of the consolidated statements of cash flows. | |||||||||||||
Connect America Fund Support – In conjunction with reforming USF, the Federal Communications Commission (“FCC”) established the Connect America Fund (“CAF”) which provides incremental support to broadband service providers. CAF includes both short-term (“Phase I”) and long-term (“Phase II”) framework. We have received $86.7 million in CAF Phase I support for upgrades and new deployments of broadband service to unserved and underserved locations. Pursuant to commitments we made with the FCC, we will match, on at least a dollar-for-dollar basis, the total amount of CAF Phase I support we receive. As construction projects which will utilize CAF Phase I support are initiated, a portion of the CAF Phase I support received will be reclassified from other liabilities as an offset to construction in progress to effectively reduce the capitalized cost of the constructed asset. For each construction dollar we spend, an equal amount will be transferred from other liabilities to construction in progress to reflect our dollar-for-dollar matching requirement. As of December 31, 2014, $53.9 million and $20.0 million of CAF Phase I support was recorded in other current liabilities and other liabilities, respectively, in the accompanying consolidated balance sheet. CAF Phase I support received and used to construct network assets during the period has been presented within the investing activities section of the consolidated statements of cash flows. The FCC has yet to finalize the statewide allocation of CAF Phase II. | |||||||||||||
Asset Disposals – On December 5, 2013, we completed the sale of Pinnacle Software Company (“Pinnacle”), a software company acquired in conjunction with the 2011 acquisition of PAETEC Holding Corp. (“PAETEC”) for $30.0 million in cash. The software business has been reported as discontinued operations for the years ended December 31, 2013 and 2012. See Note 14 for further discussion of discontinued operations. | |||||||||||||
2. Summary of Significant Accounting Policies and Changes, Continued: | |||||||||||||
On February 22, 2012 and March 30, 2012, we completed the sales of wireless assets acquired from D&E Communications, Inc. (“D&E”) and Iowa Telecommunications Services, Inc. (“Iowa Telecom”), respectively. In connection with these sales, we received gross proceeds of approximately $57.0 million and recognized a gain of $5.2 million, net of transaction fees. | |||||||||||||
Goodwill and Other Intangible Assets – Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired through various business combinations. The cost of acquired entities at the date of the acquisition is allocated to identifiable assets, and the excess of the total purchase price over the amounts assigned to identifiable assets has been recorded as goodwill. | |||||||||||||
In accordance with authoritative guidance, goodwill is to be assigned to a company’s reporting units and tested for impairment at least annually using a consistent measurement date, which for us is January 1st of each year. Goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit for which discrete financial information is available and our executive management team regularly reviews the operating results of that component. Additionally, components of an operating segment can be combined as a single reporting unit if the components have similar economic characteristics. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is performed. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed, and the implied fair value of the reporting unit’s goodwill must be determined and compared to the carrying value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then an impairment loss equal to the difference will be recorded. Prior to performing the two step evaluation, an entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. Under the qualitative assessment, if an entity determines that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the entity is not required to complete the two step goodwill impairment evaluation. | |||||||||||||
During the fourth quarter of 2013, in connection with the disposal of our software business and changes in certain management responsibilities, we reassessed our reporting unit structure as of November 30, 2013 and performed a quantitative analysis as of that date. We estimated the fair value of our reporting units using an income approach supplemented with a market approach. The income approach is based on the present value of projected cash flows and a terminal value, which represents the expected normalized cash flows of the reporting unit beyond the cash flows from the discrete projection period of five years. We discounted the estimated cash flows for each of the reporting units using a rate that represents a market participant’s weighted average cost of capital commensurate with the reporting unit’s underlying business operations. Results of the income approach were corroborated with estimated fair values derived from a market approach, which primarily included the use of comparable multiples of publicly traded companies operating in businesses similar to ours. We also reconciled the estimated fair value of our reporting units to our total market capitalization. Goodwill was assigned to the reporting units using a relative fair value allocation approach. | |||||||||||||
As of January 1, 2014, we determined that we had three reporting units, excluding corporate-level activities, to test for impairment. After considering changes to assumptions used in our most recent quantitative testing completed as of November 30, 2013, including general economic conditions, capital markets, telecommunications industry competition and trends, changes in common stock prices, our results of operations, and the magnitude of the excess of the fair value over the carrying value of each of our reporting units as determined in our most recent quantitative testing, we concluded that it is more likely than not that the fair value of our reporting units is not less than their respective carrying values and, therefore, we did not perform a quantitative analysis. | |||||||||||||
Other intangible assets arising from business combinations such as franchise rights, customer lists, and cable franchise rights are initially recorded at estimated fair value. We amortize customer lists using the sum-of-the-digits method over an estimated life or 9 to 15 years. All other intangible assets are amortized using a straight-line method over the estimated useful lives. | |||||||||||||
Net Property, Plant and Equipment – Property, plant and equipment are stated at original cost, less accumulated depreciation. Property, plant and equipment consists of central office equipment, office and warehouse facilities, outside communications plant, customer premise equipment, furniture, fixtures, vehicles, machinery, other equipment and software to support the business units in the distribution of telecommunications products. The costs of additions, replacements, substantial improvements and extension of the network to the customer premise, including related labor costs, are capitalized, while the costs of maintenance and repairs are expensed as incurred. Depreciation expense amounted to $1,130.3 million, $1,049.7 million, and $955.6 million in 2014, 2013 and 2012, respectively. | |||||||||||||
2. Summary of Significant Accounting Policies and Changes, Continued: | |||||||||||||
Net property, plant and equipment consisted of the following as of December 31: | |||||||||||||
(Millions) | Depreciable Lives | 2014 | 2013 | ||||||||||
Land | $ | 44.3 | $ | 44.7 | |||||||||
Building and improvements | 3-40 years | 655.5 | 644.5 | ||||||||||
Central office equipment | 3-40 years | 5,750.40 | 5,563.70 | ||||||||||
Outside communications plant | 7-47 years | 6,906.60 | 6,630.70 | ||||||||||
Furniture, vehicles and other equipment | 3-23 years | 1,616.00 | 1,431.20 | ||||||||||
Construction in progress | 365.2 | 312.6 | |||||||||||
15,338.00 | 14,627.40 | ||||||||||||
Less accumulated depreciation | (9,925.7 | ) | (8,924.8 | ) | |||||||||
Net property, plant and equipment | $ | 5,412.30 | $ | 5,702.60 | |||||||||
Our regulated operations use a group composite depreciation method. Under this method, when plant is retired, the original cost, net of salvage value, is charged against accumulated depreciation and no immediate gain or loss is recognized on the disposition of the plant. For our non-regulated operations, when depreciable plant is retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the plant accounts, with the corresponding gain or loss reflected in operating results. | |||||||||||||
The RUS will have a retained security interest in the assets funded by the broadband stimulus grants over their economic life, which varies by grant for periods up to 23 years. In the event of default of terms of the agreement, the RUS could exercise the rights under its retained security interest to gain control and ownership of these assets. In addition, in the event of a proposed change in control of Windstream, the acquiring party would need to receive approval from the RUS prior to consummating the proposed transaction, for which pre-approval will not be reasonably withheld. | |||||||||||||
We capitalize interest in connection with the acquisition or construction of plant assets. Capitalized interest is included in the cost of the asset with a corresponding reduction in interest expense. Capitalized interest amounted to $3.7 million, $7.9 million and $10.9 million in 2014, 2013 and 2012, respectively. | |||||||||||||
Asset Retirement Obligations – We recognize asset retirement obligations in accordance with authoritative guidance on accounting for asset retirement obligations and conditional asset retirement obligations, which requires recognition of a liability for the fair value of an asset retirement obligation if the amount can be reasonably estimated. Our asset retirement obligations include legal obligations to remediate the asbestos in certain buildings if we exit them, to properly dispose of our chemically-treated telephone poles at the time they are removed from service and to restore certain leased properties to their previous condition upon exit from the lease. These asset retirement obligations totaled $53.4 million and $52.3 million as of December 31, 2014 and 2013, respectively, and are included in other liabilities in the accompanying consolidated balance sheets. | |||||||||||||
Impairment of Long-Lived Assets - We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable from future, undiscounted net cash flows expected to be generated by the asset group. If the asset group is not fully recoverable, an impairment loss would be recognized for the difference between the carrying value of the asset group and its estimated fair value based on discounted net future cash flows. | |||||||||||||
Derivative Instruments – Windstream Corp. enters into interest rate swap agreements to mitigate the interest rate risk inherent in its variable rate senior secured credit facility. Derivative instruments are accounted for in accordance with authoritative guidance for recognition, measurement and disclosures about derivative instruments and hedging activities, including when a derivative or other financial instrument can be designated as a hedge. This guidance requires recognition of all derivative instruments at fair value, and accounting for the changes in fair value depends on whether the derivative has been designated as, qualifies as and is effective as a hedge. Changes in fair value of the effective portions of cash flow hedges are recorded as a component of other comprehensive (loss) income in the current period. Any ineffective portion of the hedges is recognized in earnings in the current period. | |||||||||||||
2. Summary of Significant Accounting Policies and Changes, Continued: | |||||||||||||
Revenue Recognition – Service revenues are primarily derived from providing access to or usage of our networks and facilities. Service revenues are recognized over the period that the corresponding services are rendered to customers. Revenues that are billed in advance include monthly recurring network access and data services, special access and monthly recurring voice, Internet and other related charges. The unearned portion of these revenues is included in advance payments and customer deposits in the accompanying consolidated balance sheets. Revenues derived from other telecommunications services, including interconnection, long distance and enhanced service revenues are recognized monthly as services are provided. Revenue from sales of indefeasible rights to use fiber optic network facilities (“IRUs”) and the related telecommunications network maintenance arrangements is generally recognized over the term of the related lease or contract. Sales of communications products including customer premise equipment and modems are recognized when products are delivered to and accepted by customers. Fees assessed to customers for service activation are deferred upon service activation and recognized as service revenue on a straight-line basis over the expected life of the customer relationship in accordance with authoritative guidance on multiple element arrangements. Certain costs associated with activating such services are deferred and recognized as an operating expense over the same period. | |||||||||||||
In determining whether to include in revenues and expenses the taxes and surcharges assessed and collected from customers and remitted to government authorities, including USF charges, sales, use, value added and excise taxes, we evaluate, among other factors, whether we are the primary obligor or principal tax payer for the fees and taxes assessed in each jurisdiction in which we operate. In those jurisdictions for which we are the primary obligor, we record the taxes and surcharges on a gross basis and include in revenues and costs of services and products. In jurisdictions in which we function as a collection agent for the government authority, we record the taxes on a net basis and exclude the amounts from our revenues and costs of services and products. | |||||||||||||
Advertising – Advertising costs are expensed as incurred. Advertising expense totaled $96.8 million, $80.4 million, and $99.5 million in 2014, 2013 and 2012. | |||||||||||||
Share-Based Compensation – In accordance with authoritative guidance on share-based compensation, we value all time-based awards to employees at fair value on the date of the grant, and recognize that value as compensation expense over the period that each award vests. Performance-based awards are valued at fair value at the end of each reporting period until final performance targets are set. Share-based compensation expense for performance-based awards is recognized when it is probable and estimable as measured against performance metrics. Share-based compensation expense is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. | |||||||||||||
Pension Benefits – We recognize changes in the fair value of plan assets and actuarial gains and losses due to actual experience differing from actuarial assumptions, as a component of net periodic benefit (income) expense in the fourth quarter in the year in which the gains and losses occur, and if applicable in any quarter in which an interim remeasurement is required. The remaining components of net periodic benefit (income) expense, primarily service and interest costs and assumed return on plan assets, are recognized ratably on a quarterly basis. | |||||||||||||
Operating Leases – Certain of our operating lease agreements include scheduled rent escalations during the initial lease term and/or during succeeding optional renewal periods. We account for these operating leases in accordance with authoritative guidance for operating leases with non-level rent payments. Accordingly, the scheduled increases in rent expense are recognized on a straight-line basis over the initial lease term and those renewal periods that are reasonably assured. The difference between rent expense and rent paid is recorded as deferred rent and is included in other liabilities in the accompanying consolidated balance sheets. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term, including renewal option periods that are reasonably assured. | |||||||||||||
Income Taxes – We account for income taxes in accordance with guidance on accounting for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. In addition, we adopted authoritative guidance which addresses uncertainty in tax positions and clarifies the accounting for income taxes by prescribing a minimum recognition threshold that the income tax positions must achieve before being recognized in the financial statements. | |||||||||||||
2. Summary of Significant Accounting Policies and Changes, Continued: | |||||||||||||
Earnings Per Share – We compute basic (loss) earnings per share by dividing net (loss) income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares containing a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares are considered participating securities, and the impact is included in the computation of earnings per share pursuant to the two-class method. Calculations of earnings per share under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. | |||||||||||||
Diluted (loss) earnings per share are computed by dividing net (loss) income applicable to common shares by the weighted average number of common shares adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities include incremental shares issuable upon exercise of outstanding stock options and warrants. Diluted earnings per share exclude all potentially dilutive securities if their effect is anti-dilutive. | |||||||||||||
We also issue performance-based restricted stock units as part of our share-based compensation plan. These restricted stock units contain a forfeitable right to receive dividends. Because dividends attributable to these shares are forfeited if the vesting provisions are not met, they are considered non-participating restricted shares and are not dilutive under the two class method until the performance conditions have been satisfied. The 2014 performance conditions for the outstanding restricted stock units were not satisfied, and therefore, these stock units were excluded from the computation of diluted weighted average shares outstanding. Options and warrants granted in conjunction with the acquisition of PAETEC are included in the computation of dilutive earnings per share using the treasury stock method. | |||||||||||||
A reconciliation of net (loss) income and number of shares used in computing basic and diluted (loss) earnings per share was as follows for the years ended December 31: | |||||||||||||
(Millions, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Basic and diluted (loss) earnings per share: | |||||||||||||
Numerator: | |||||||||||||
(Loss) income from continuing operations | $ | (39.5 | ) | $ | 235 | $ | 167.1 | ||||||
Income from continuing operations allocable to participating securities | (5.0 | ) | (4.1 | ) | (3.6 | ) | |||||||
Adjusted (loss) income from continuing operations attributable to | (44.5 | ) | 230.9 | 163.5 | |||||||||
common shares | |||||||||||||
Income from discontinued operations | — | 6 | 0.9 | ||||||||||
Income from discontinued operations allocable to participating | — | — | — | ||||||||||
securities | |||||||||||||
Adjusted income from discontinued operations attributable to | — | 6 | 0.9 | ||||||||||
common shares | |||||||||||||
Net (loss) income attributable to common shares | $ | (44.5 | ) | $ | 236.9 | $ | 164.4 | ||||||
Denominator: | |||||||||||||
Basic shares outstanding | |||||||||||||
Weighted average shares outstanding | 601.5 | 593.2 | 588 | ||||||||||
Weighted average participating securities | (4.6 | ) | (3.9 | ) | (3.5 | ) | |||||||
Weighted average basic shares outstanding | 596.9 | 589.3 | 584.5 | ||||||||||
Diluted shares outstanding | |||||||||||||
Weighted average basic shares outstanding | 596.9 | 589.3 | 584.5 | ||||||||||
Effect of dilutive stock options | — | 0.4 | 1.8 | ||||||||||
Weighted average diluted shares outstanding | 596.9 | 589.7 | 586.3 | ||||||||||
Basic and diluted (loss) earnings per share: | |||||||||||||
From continuing operations | ($.07 | ) | $0.39 | $0.28 | |||||||||
From discontinued operations | — | 0.01 | — | ||||||||||
Net (loss) income | ($.07 | ) | $0.40 | $0.28 | |||||||||
2. Summary of Significant Accounting Policies and Changes, Continued: | |||||||||||||
In 2014, the potential dilutive effect of 0.2 million shares of stock options were excluded from the computation of diluted weighted average shares outstanding as the shares would have an anti-dilutive effect on the loss from continuing operations. In addition, options to purchase shares of stock issuable under stock-based compensation plans that were excluded from the computation of diluted earnings per share because the exercise prices were greater than the average market price of our common stock and, therefore, the effect would be anti-dilutive, totaled approximately 0.6 million shares for the year ended December 31, 2014 and 1.0 million shares for each of the years ended December 31, 2013 and 2012, respectively. | |||||||||||||
Change in Accounting Estimate | |||||||||||||
The calculation of depreciation and amortization expense is based on the estimated economic useful lives of the underlying property, plant and equipment and finite-lived intangible assets. We periodically obtain updated depreciation studies to evaluate whether certain useful lives remain appropriate in accordance with authoritative guidance. With the assistance of outside expertise, we completed analyses of the depreciable lives of assets held for certain subsidiaries during the year 2012. Based on those results, we implemented new depreciation rates resulting in a net increase to depreciation of $59.1 million and a net decrease in net income of $36.5 million or $0.06 per share for the year ended December 31, 2012. | |||||||||||||
Recently Adopted Accounting Standards | |||||||||||||
Discontinued Operations – In April 2014, the FASB issued revised guidance to reduce diversity in practice for reporting discontinued operations. Under the previous guidance, any component of an entity that was a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group was eligible for discontinued operations presentation. The revised guidance only allows disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity’s operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The updated guidance is effective for the fiscal years, and interim periods within those years, beginning after December 15, 2014, with early adoption permitted. During the fourth quarter of 2014, we early adopted this guidance, which did not affect our consolidated results of operations, financial position or liquidity. | |||||||||||||
Recently Issued Authoritative Guidance | |||||||||||||
Revenue Recognition – In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard outlines a single comprehensive revenue recognition model for entities to follow in accounting for revenue from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that an entity should recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to receive for those goods or services. ASU 2014-09 also includes new accounting principles related to the deferral and amortization of contract acquisition and fulfillment costs. ASU 2014-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is not permitted. ASU 2014-09 may be adopted by applying the provisions of the new standard on a retrospective basis to all periods presented in the financial statements or on a modified retrospective basis which would result in the recognition of a cumulative effect adjustment in the year of adoption. We are in the process of determining the method of adoption and assessing the impact the new standard will have on our consolidated financial statements. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets: | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets: | ||||||||||||||||||||||||
Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired through various business combinations. The cost of acquired entities at the date of the acquisition is allocated to identifiable assets, and the excess of the total purchase price over the amounts assigned to identifiable assets has been recorded as goodwill. | |||||||||||||||||||||||||
Changes in the carrying amount of goodwill were as follows: | |||||||||||||||||||||||||
(Millions) | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 4,331.40 | |||||||||||||||||||||||
Acquisition during the period (a) | 21.4 | ||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 4,352.80 | |||||||||||||||||||||||
(a) | On October 1, 2014, we acquired for cash a fixed wireless enterprise services provider with operations in four states. | ||||||||||||||||||||||||
As of January 1, 2014, we determined we had three reporting units, excluding corporate-level activities. After considering changes to assumptions used in our most recent quantitative testing completed as of November 30, 2013, including general economic conditions, capital markets, telecommunications industry competition and trends, changes in common stock prices, our results of operations, and the magnitude of the excess of the fair value over the carrying value of each of our reporting units as determined in our most recent quantitative testing, we concluded that it is more likely than not that the fair value of our reporting units is not less than their respective carrying values and, therefore, we did not perform a quantitative analysis. | |||||||||||||||||||||||||
Intangible assets were as follows at December 31: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Millions) | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||
Cost | Amortization | Value | Cost | Amortization | Value | ||||||||||||||||||||
Franchise rights | $ | 1,285.10 | $ | (243.3 | ) | $ | 1,041.80 | $ | 1,285.10 | $ | (200.4 | ) | $ | 1,084.70 | |||||||||||
Customer lists | 1,914.00 | (1,203.4 | ) | 710.6 | 1,914.00 | (991.9 | ) | 922.1 | |||||||||||||||||
Cable franchise rights | 39.8 | (28.2 | ) | 11.6 | 39.8 | (27.0 | ) | 12.8 | |||||||||||||||||
Other | 37.9 | (37.9 | ) | — | 37.9 | (37.4 | ) | 0.5 | |||||||||||||||||
Balance | $ | 3,276.80 | $ | (1,512.8 | ) | $ | 1,764.00 | $ | 3,276.80 | $ | (1,256.7 | ) | $ | 2,020.10 | |||||||||||
Intangible asset amortization methodology and useful lives were as follows as of December 31, 2014: | |||||||||||||||||||||||||
Intangible Assets | Amortization Methodology | Estimated Useful Life | |||||||||||||||||||||||
Franchise rights | straight-line | 30 years | |||||||||||||||||||||||
Customer lists | sum of years digits | 9 - 15 years | |||||||||||||||||||||||
Cable franchise rights | straight-line | 15 years | |||||||||||||||||||||||
Other | straight-line | 1 - 3 years | |||||||||||||||||||||||
Amortization expense for intangible assets subject to amortization was $256.1 million, $291.2 million and $342.0 million in 2014, 2013 and 2012, respectively. Amortization expense for intangible assets subject to amortization was estimated to be as follows for each of the years ended December 31: | |||||||||||||||||||||||||
Year | (Millions) | ||||||||||||||||||||||||
2015 | $ | 223.1 | |||||||||||||||||||||||
2016 | 192.7 | ||||||||||||||||||||||||
2017 | 164.8 | ||||||||||||||||||||||||
2018 | 137.9 | ||||||||||||||||||||||||
2019 | 111.2 | ||||||||||||||||||||||||
Thereafter | 934.3 | ||||||||||||||||||||||||
Total | $ | 1,764.00 | |||||||||||||||||||||||
Long_term_Debt_and_Lease_Oblig
Long -term Debt and Lease Obligations: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||
Long-term Debt and Capital Lease Obligations: | Long-term Debt and Lease Obligations: | ||||||||||||
Windstream Holdings has no debt obligations. All debt, including the senior secured credit facility described below, have been incurred by Windstream Corp. and its subsidiaries. Windstream Holdings is neither a guarantor of nor subject to the restrictive covenants imposed by such debt. | |||||||||||||
Long-term debt was as follows at December 31: | |||||||||||||
(Millions) | 2014 | 2013 | |||||||||||
Issued by Windstream Corp.: | |||||||||||||
Senior secured credit facility, Tranche A3 – variable rates, due December 30, 2016 | $ | 344.3 | $ | 387.3 | |||||||||
Senior secured credit facility, Tranche A4 – variable rates, due August 8, 2017 | 255 | 277.5 | |||||||||||
Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 | 1,318.10 | 1,331.60 | |||||||||||
Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 | 584.1 | 590 | |||||||||||
Senior secured credit facility, Revolving line of credit – variable rates, due | 625 | 590 | |||||||||||
December 17, 2015 | |||||||||||||
Debentures and notes, without collateral: | |||||||||||||
2017 Notes – 7.875%, due November 1, 2017 | 1,100.00 | 1,100.00 | |||||||||||
2018 Notes – 8.125%, due September 1, 2018 | 400 | 400 | |||||||||||
2020 Notes – 7.750%, due October 15, 2020 | 700 | 700 | |||||||||||
2021 Notes – 7.750%, due October 1, 2021 | 950 | 950 | |||||||||||
2022 Notes – 7.500%, due June 1, 2022 | 500 | 500 | |||||||||||
2023 Notes – 7.500%, due April 1, 2023 | 600 | 600 | |||||||||||
2023 Notes – 6.375%, due August 1, 2023 | 700 | 700 | |||||||||||
Issued by subsidiaries of the Company: | |||||||||||||
Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 | 100 | 100 | |||||||||||
Cinergy Communications Company – 6.58%, due January 1, 2022 | 1.9 | 2 | |||||||||||
Debentures and notes, without collateral: | |||||||||||||
PAETEC 2018 Notes – 9.875%, due December 1, 2018 | 450 | 450 | |||||||||||
Premium on long-term debt, net | 23.3 | 28.8 | |||||||||||
8,651.70 | 8,707.20 | ||||||||||||
Less current maturities | (717.5 | ) | (85.0 | ) | |||||||||
Total long-term debt | $ | 7,934.20 | $ | 8,622.20 | |||||||||
Weighted average interest rate | 6.5 | % | 7 | % | |||||||||
Weighted maturity | 5.1 years | 6.1 years | |||||||||||
Senior Secured Credit Facility | |||||||||||||
On December 6, 2013, Windstream Corp. incurred new borrowings of $590.0 million under Tranche B5 of the senior secured credit facility due August 8, 2019. The proceeds along with available cash on hand were used to repay $592.5 million of borrowings, plus accrued interest, that were outstanding under Tranche B3 of the senior secured credit facility, which were also due on August 8, 2019. Debt issuance costs associated with the Tranche B5 borrowings were $4.6 million which were charged to interest expense in the fourth quarter of 2013 in accordance with debt modification accounting. | |||||||||||||
On January 23, 2013, Windstream Corp. incurred new borrowings of $1,345.0 million under Tranche B4 of the senior secured credit facility due January 23, 2020; the proceeds of which were used to repay $19.5 million of Tranche A2 and $280.9 million of Tranche B due in July 2013 and $1,042.9 million of Tranche B2 of the senior secured credit facility due in December 2015, plus accrued interest. Debt issuance costs associated with the Tranche B4 borrowings were $11.9 million. Of this amount, $5.7 million was recorded in other assets in the consolidated balance sheet and is amortized into interest expense over the life of the borrowings. The remaining $6.2 million of debt issuance costs were charged to interest expense in the first quarter of 2013 in accordance with debt modification accounting. | |||||||||||||
4. Long-term Debt and Lease Obligations, Continued: | |||||||||||||
Revolving line of credit - Windstream Corp. borrowed $1,315.0 million under the revolving line of credit in its senior secured credit facility and repaid $1,280.0 million of these borrowings during 2014. Letters of credit are deducted in determining the total amount available for borrowing under the revolving line of credit. Accordingly, the total amount outstanding under the letters of credit and the indebtedness incurred under the revolving line of credit may not exceed $1,250.0 million. Considering letters of credit of $21.0 million, the amount available for borrowing under the revolving line of credit was $604.0 million at December 31, 2014. The revolving line of credit will expire December 17, 2015, and as a result, amounts outstanding under the revolving line of credit are included in current maturities as of December 31, 2014. If not for the pending spin-off of certain network and real estate assets further discussed in Note 16, we would have amended the revolving line of credit and extended its maturity during 2014. In conjunction with completing the proposed spin-off, we expect to lower long-term debt by approximately $3.4 billion through receipt of a cash payment of $1.2 billion and completion of a $2.35 billion tax-free debt exchange, of which borrowings outstanding under the revolving line of credit will be included. Currently, we anticipate that the spin-off will occur in the first half of 2015. Following the spin-off, we intend to amend Windstream Corp.’s revolving line of credit and extend its maturity to 2020. If completion of the spin-off is delayed or otherwise not consummated, we will proceed with our plans to amend the revolving line of credit agreement and extend its maturity by June 30, 2015. | |||||||||||||
The variable interest rate on the revolving line of credit ranged from 2.41 percent to 4.50 percent, and the weighted average rate on amounts outstanding was 2.49 percent during 2014, as compared to variable interest rates during 2013 which ranged from 2.42 percent to 4.50 percent with a weighted average rate on amounts outstanding of 2.60 percent. | |||||||||||||
Debentures and Notes Issued in 2013 | |||||||||||||
2021 Notes - On August 26, 2013, Windstream Corp. completed the private placement of $500.0 million in aggregate principal amount of 7.750 percent senior unsecured notes due October 1, 2021, at an issue price of 103.500 percent to yield 7.171 percent (“the 2021 Notes”). Interest is paid semi-annually. The notes had terms substantially identical to the terms of the existing 7.750 percent senior notes due 2021, but were issued under a separate indenture. During the fourth quarter of 2013 pursuant to a registration rights agreement, the notes were exchanged for additional 7.750 percent senior notes due 2021 issued under the indenture governing the existing notes. For financial reporting purposes, both the newly issued and existing 7.750 percent senior notes due 2021 are collectively referred to as the “2021 Notes”. Debt issuance costs associated with the new borrowings were $10.1 million, which were recorded in other assets in the accompanying consolidated balance sheet and will be amortized into interest expense over the life of the borrowings. | |||||||||||||
2023 Notes - On January 23, 2013, Windstream Corp. completed the private placement of $700.0 million in aggregate principal amount of 6.375 percent senior unsecured notes due August 1, 2023, at an issue price at par to yield 6.375 percent (“the 2023 Notes”). Interest is paid semi-annually. Debt issuance costs associated with the new borrowings were $13.9 million, which were recorded in other assets in the accompanying consolidated balance sheet and will be amortized into interest expense over the life of the borrowings. | |||||||||||||
Debentures and Notes Repaid in 2013 | |||||||||||||
2013 Notes - On August 1, 2013, Windstream Corp. repaid at maturity all of the outstanding $800.0 million aggregate principal amount of these senior unsecured notes utilizing available borrowings under the revolving line of credit. | |||||||||||||
2019 Notes - On August 12, 2013, Windstream Corp. announced a tender offer to purchase for cash all of the outstanding $500.0 million aggregate principal amount of 7.000 percent senior unsecured notes due March 15, 2019 (“2019 Notes”). Prior to the expiration of the tender offer, approximately $431.2 million of the 2019 Notes had been tendered. On September 25, 2013, the redemption of the remaining $68.8 million outstanding principal amount was settled. Proceeds from the issuance of the 2021 Notes, together with available cash, were used to pay the consideration for the tender offer and to redeem the outstanding 2019 Notes, along with related fees and expenses. | |||||||||||||
PAETEC 2017 Notes - In connection with our acquisition of PAETEC on November 30, 2011, Windstream Corp. assumed $650.0 million of 8.875 percent notes due June 30, 2017 (“PAETEC 2017 Notes”). Interest was payable semi-annually. On January 8, 2013, Windstream Corp. announced a tender offer to purchase for cash any and all of the outstanding $650.0 million aggregate principal amount of PAETEC 2017 Notes. Prior to the expiration of the tender offer, approximately $588.5 million of the PAETEC 2017 Notes had been tendered. On February 25, 2013, the redemption of the remaining $61.5 million outstanding principal amount was settled. Proceeds from the issuance of the 2023 Notes, together with available cash, were used to pay the consideration for the tender offer and to redeem all of the outstanding PAETEC 2017 Notes, along with related fees and expenses. | |||||||||||||
4. Long-term Debt and Lease Obligations, Continued: | |||||||||||||
Windstream Corp. may call certain debentures and notes at various premiums on early redemption. These debentures and notes are the $400.0 million in aggregate principal amount of 8.125 percent senior unsecured notes due September 1, 2018 (“2018 Notes”), the 7.750 percent senior notes due October 15, 2020, 2021 Notes, the 7.500 percent senior notes due June 1, 2022, both series of 2023 Notes and the 9.875 percent notes due December 1, 2018 (“PAETEC 2018 Notes”) with an aggregate principal amount of $450.0 million. In addition, Windstream Corp. may call debt issued by Windstream Holdings of the Midwest, Inc. at various premiums on early redemption. | |||||||||||||
Premium on Long-term Debt, Net of Discounts | |||||||||||||
The premium on long-term debt, net of discounts is primarily due to the debt issuance premium recorded on the debt acquired in the PAETEC acquisition and the August 26, 2013 private placement of the additional 2021 Notes partially offset by the net discount recorded on certain debt obligations listed in the table above. The premium and discount balances are amortized using the interest method over the life of the related debt instrument. | |||||||||||||
Debt Compliance | |||||||||||||
The terms of Windstream Corp.’s credit facility and indentures include customary covenants that, among other things, require maintenance of certain financial ratios and restrict Windstream Corp.’s ability to incur additional indebtedness. These financial ratios include a maximum leverage ratio of 4.5 to 1.0 and a minimum interest coverage ratio of 2.75 to 1.0. In addition, the covenants include restrictions on dividend and certain other types of payments. The terms of the indentures assumed in connection with the acquisition of PAETEC include restrictions on the ability of the subsidiary to incur additional indebtedness, including a maximum leverage ratio, with the most restrictive being 4.75 to 1.0. As of December 31, 2014, Windstream Corp. was in compliance with all of these covenants. | |||||||||||||
In addition, certain of Windstream Corp.’s debt agreements contain various covenants and restrictions specific to the subsidiary that is the legal counterparty to the agreement. Under Windstream Corp.’s long-term debt agreements, acceleration of principal payments would occur upon payment default, violation of debt covenants not cured within 30 days, a change in control including a person or group obtaining 50 percent or more of Windstream Corp.’s outstanding voting stock, or breach of certain other conditions set forth in the borrowing agreements. Windstream Corp. and its subsidiaries were in compliance with these covenants as of December 31, 2014. | |||||||||||||
Maturities for long-term debt outstanding as of December 31, 2014, excluding $23.3 million of unamortized net premium, were as follows for the years ended December 31: | |||||||||||||
Year | (Millions) | ||||||||||||
2015 | $ | 717.5 | |||||||||||
2016 | 350.7 | ||||||||||||
2017 | 1,314.50 | ||||||||||||
2018 | 869.5 | ||||||||||||
2019 | 574.1 | ||||||||||||
Thereafter | 4,802.10 | ||||||||||||
Total | $ | 8,628.40 | |||||||||||
(Loss) Gain on Extinguishment of Debt | |||||||||||||
During the third quarter of 2013, Windstream Corp. retired all $500.0 million of the outstanding 2019 Notes using proceeds from the private placement of the 2021 Notes. During the first quarter of 2013, Windstream Corp. also retired all $650.0 million of the outstanding PAETEC 2017 Notes. As noted above, the PAETEC 2017 Notes were repurchased using proceeds from the issuance of the 2023 Notes. Windstream Corp. also amended its senior secured credit facility including issuance of Tranche B4, the proceeds of which were used to repay Tranche A2, Tranche B and Tranche B2 during the first quarter of 2013. The retirements and a portion of the credit facility amendment were accounted for under the extinguishment method of accounting, and as a result, Windstream Corp. recognized losses due to the extinguishment of the aforementioned debt obligations during 2013. | |||||||||||||
4. Long-term Debt and Lease Obligations, Continued: | |||||||||||||
During 2012, Windstream Corp. retired all $300.0 million of the outstanding 9.500 percent notes due July 15, 2015 (“PAETEC 2015 Notes”). The PAETEC 2015 Notes were purchased using borrowings under Windstream Corp.’s revolving line of credit. The retirement was accounted for under the extinguishment method, and as a result Windstream Corp. recognized a gain on extinguishment of debt of $1.9 million during the twelve months ended December 31, 2012. | |||||||||||||
The (loss) gain on extinguishment of debt was as follows for the years ended December 31: | |||||||||||||
(Millions) | 2013 | 2012 | |||||||||||
2019 Notes: | |||||||||||||
Premium on early redemption | $ | (13.6 | ) | $ | — | ||||||||
Third-party fees for early redemption | (0.5 | ) | — | ||||||||||
Unamortized debt issuance costs on original issuance | (0.6 | ) | — | ||||||||||
Loss on early extinguishment for 2019 Notes | (14.7 | ) | — | ||||||||||
Senior secured credit facility: | |||||||||||||
Unamortized debt issuance costs on original issuance | (2.5 | ) | — | ||||||||||
Loss on early extinguishment for senior secured credit | (2.5 | ) | — | ||||||||||
facility | |||||||||||||
PAETEC 2017 Notes: | |||||||||||||
Premium on early redemption | (51.5 | ) | — | ||||||||||
Third-party fees for early redemption | (1.0 | ) | — | ||||||||||
Unamortized premium on original issuance | 41.2 | — | |||||||||||
Loss on early extinguishment for PAETEC 2017 Notes | (11.3 | ) | — | ||||||||||
PAETEC 2015 Notes: | |||||||||||||
Premium on early redemption | — | (14.3 | ) | ||||||||||
Unamortized premium on original issuance | — | 16.2 | |||||||||||
Gain on early extinguishment for PAETEC 2015 Notes | — | 1.9 | |||||||||||
Total (loss) gain on early extinguishment of debt | $ | (28.5 | ) | $ | 1.9 | ||||||||
Capital Lease Obligations | |||||||||||||
We lease facilities and equipment for use in our operations. These facilities and equipment are included in outside communications plant in property, plant and equipment in the accompanying consolidated balance sheets. Lease agreements that include a bargain purchase option, transfer of ownership, contractual lease term equal to or greater than 75 percent of the remaining estimated economic life of the leased facilities or equipment or minimum lease payments equal to or greater than 90 percent of the fair value of the leased facilities or equipment are accounted for as capital leases in accordance with authoritative guidance for capital leases. These capital lease obligations are included in the accompanying consolidated balance sheets within other current liabilities and other liabilities. During 2014 and 2013, we acquired equipment under capital leases of $0.5 million and $72.4 million, respectively. | |||||||||||||
Future minimum lease payments under capital lease obligations were as follows for the years ended December 31: | |||||||||||||
Year | (Millions) | ||||||||||||
2015 | $ | 29.4 | |||||||||||
2016 | 21.8 | ||||||||||||
2017 | 2.7 | ||||||||||||
2018 | 0.5 | ||||||||||||
2019 | 0.5 | ||||||||||||
Thereafter | 1.9 | ||||||||||||
Total future payments | 56.8 | ||||||||||||
Less: Amounts representing interest | 3.9 | ||||||||||||
Present value of minimum lease payments | $ | 52.9 | |||||||||||
4. Long-term Debt and Lease Obligations, Continued: | |||||||||||||
Other Lease Obligations | |||||||||||||
During the third quarter of 2014, we contributed certain of our owned real property to the Windstream Pension Plan and then entered into agreements to leaseback the properties for continued use by our operating subsidiaries. Independent appraisals of the properties contributed were obtained and at the dates of contribution the properties’ aggregate fair value was $80.9 million. The lease agreements include initial lease terms of 10 years for certain properties and 20 years for the remaining properties at an aggregate annual rent of approximately $6.3 million. The lease agreements provide for annual rent increases ranging from 2.0 percent to 3.0 percent over the initial lease term and may be renewed for up to three additional five-year terms. The properties are managed on behalf of the Windstream Pension Plan by an independent fiduciary and terms of the lease agreements were negotiated with the fiduciary on an arm’s-length basis. | |||||||||||||
Due to various forms of continuing involvement, including Windstream Corp.’s benefit from the future appreciation of the property, the transaction has been accounted for as a failed contribution-leaseback. Accordingly, the properties continue to be reported as assets of Windstream and depreciated over their remaining useful lives until termination of the lease agreement. We recorded a long-term lease obligation equal to the fair value of the properties at the date of contribution. No gain or loss has been recognized on the contribution. As lease payments are made to the Windstream Pension Plan, a portion of the payment will decrease the long-term lease obligation with the balance of the payment charged to interest expense using the effective interest method. At December 31, 2014, the total lease obligation was $81.0 million and was included within other current liabilities and other liabilities in the accompanying consolidated balance sheet. | |||||||||||||
Future minimum payments during the initial terms of the leases were as follows for the years ended December 31: | |||||||||||||
Year | (Millions) | ||||||||||||
2015 | $ | 6.3 | |||||||||||
2016 | 6.5 | ||||||||||||
2017 | 6.7 | ||||||||||||
2018 | 6.9 | ||||||||||||
2019 | 7.1 | ||||||||||||
Thereafter | 92 | ||||||||||||
Total | $ | 125.5 | |||||||||||
Interest Expense | |||||||||||||
Interest expense was as follows for the years ended December 31: | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Interest expense related to long-term debt | $ | 539.9 | $ | 584.7 | $ | 576.4 | |||||||
Impact of interest rate swaps | 29 | 48 | 56.4 | ||||||||||
Interest on capital and other lease obligations | 6.6 | 2.9 | 3.2 | ||||||||||
Less capitalized interest expense | (3.7 | ) | (7.9 | ) | (10.9 | ) | |||||||
Total interest expense | $ | 571.8 | $ | 627.7 | $ | 625.1 | |||||||
Derivatives
Derivatives | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Derivatives [Abstract] | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments: | |||||||||||||||||||
Windstream Corp. has entered into the following interest rate swap agreements to mitigate the interest rate risk inherent in its variable rate senior secured credit facility. In 2006, Windstream Corp. entered into four pay fixed, receive variable interest rate swap agreements to serve as cash flow hedges of the interest rate risk inherent in its senior secured credit facility. Windstream Corp. renegotiated the four interest rate swap agreements on December 3, 2010, and again on August 21, 2012, each time lowering the fixed interest rate paid and extending the maturity. As a result of the August 21, 2012 transaction, Windstream Corp. reduced its fixed interest rate paid from 4.553 percent to 3.391 percent effective October 17, 2012. The fixed interest rate paid includes a component which serves to settle the liability existing on Windstream Corp. swaps at the time of the transaction. The variable rate received resets on the seventeenth day of each month to the one-month London Interbank Offered Rate (“LIBOR”). The swaps had a notional value of $900.0 million as of December 31, 2014, where it will remain until maturity on October 17, 2019. | ||||||||||||||||||||
On May 31, 2013, Windstream Corp. entered into six new pay fixed, receive variable interest rate swap agreements, designated as cash flow hedges of the previously unhedged interest rate risk inherent in its senior secured credit facility. These swaps have a fixed notional value of $750.0 million and mature on June 17, 2016. The fixed rate paid ranges from 1.026 to 1.040 percent plus a fixed spread of 2.750 percent. The variable rate received resets on the seventeenth day of each month to the one-month LIBOR subject to a minimum rate of 0.750 percent. | ||||||||||||||||||||
The current swaps are designated as cash flow hedges of the benchmark LIBOR interest rate risk created by the variable rate cash flows paid on Windstream Corp.’s senior secured credit facility, which have varying maturity dates from December 30, 2016 to January 23, 2020. The swaps are hedging probable variable cash flows which extend up to four years beyond the maturity of certain components of the variable rate debt. Consistent with past practice, Windstream Corp. expects to extend or otherwise replace these components of its debt with variable rate debt. | ||||||||||||||||||||
All derivative instruments are recognized at fair value in the accompanying consolidated balance sheets as either assets or liabilities, depending on the rights or obligations under the related contracts. | ||||||||||||||||||||
Set forth below is information related to our interest rate swap agreements: | ||||||||||||||||||||
(Millions, except for percentages) | 2014 | 2013 | 2012 | |||||||||||||||||
Designated portion, measured at fair value | ||||||||||||||||||||
Other assets | $ | 0.4 | $ | — | $ | — | ||||||||||||||
Other current liabilities | $ | 28.5 | $ | 30 | $ | 29 | ||||||||||||||
Other non-current liabilities | $ | 48.7 | $ | 41.8 | $ | 91.2 | ||||||||||||||
Accumulated other comprehensive income (loss) | $ | 4.9 | $ | 28.2 | $ | (14.7 | ) | |||||||||||||
De-designated portion, unamortized value | ||||||||||||||||||||
Accumulated other comprehensive loss | $ | (8.8 | ) | $ | (24.7 | ) | $ | (45.9 | ) | |||||||||||
Weighted average fixed rate paid | 3.57 | % | 3.57 | % | 4.26 | % | ||||||||||||||
Variable rate received | 0.16 | % | 0.16 | % | 0.21 | % | ||||||||||||||
Derivatives are assessed for effectiveness each quarter and any ineffectiveness is recognized in other income (expense), net in our consolidated statements of operations. Ineffectiveness recognized on the cash flow hedges was $(0.3) million, $1.6 million and $(7.5) million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
Windstream Corp.’s original four swaps are off-market swaps, meaning they contain an embedded financing element, which the swap counterparties recover through an incremental charge in the fixed rate over what would be charged for an on-market swap. As such, a portion of the cash payment on the swaps represents the rate that Windstream Corp. would pay on a hypothetical on-market interest rate swap and is recognized in interest expense. The remaining portion represents the repayment of the embedded financing element and reduces the swap liability. | ||||||||||||||||||||
5. Derivative Instruments, Continued: | ||||||||||||||||||||
All or a portion of the change in fair value of Windstream Corp.’s interest rate swap agreements recorded in accumulated other comprehensive income may be recognized in earnings in certain situations. If Windstream Corp. extinguishes all of its variable rate debt, or a portion of its variable rate debt such that the variable rate interest received on the swaps exceeds the variable rate interest paid on its debt, all or a portion of the change in fair value of the swaps would be recognized in earnings. In addition, the change in fair value of the swaps may be recognized in earnings if Windstream Corp. determines it is no longer probable that it will have future variable rate cash flows to hedge against or if a swap agreement is terminated prior to maturity. Windstream Corp. has assessed the counterparty risk and determined that no substantial risk of default exists as of December 31, 2014. Each counterparty is a bank with a current credit rating at or above A. | ||||||||||||||||||||
Windstream Corp. expects to recognize losses of $6.6 million, net of taxes, in interest expense in the next twelve months related to the unamortized value of the de-designated portion of interest rate swap agreements at December 31, 2014. Payments on the swaps are presented in the financing activities section of the accompanying consolidated statements of cash flows due to the embedded financing element discussed above. | ||||||||||||||||||||
Changes in the value of these derivative instruments were as follows for the years ended December 31: | ||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Changes in fair value of effective portion, net of tax (a) | $ | (14.3 | ) | $ | 17.4 | $ | (12.6 | ) | ||||||||||||
Amortization of unrealized losses on de-designated | $ | 9.8 | $ | 22.2 | $ | 28 | ||||||||||||||
interest rate swaps, net of tax (a) | ||||||||||||||||||||
(a) | Included as a component of other comprehensive income (loss) and will be reclassified into earnings as the hedged transaction affects earnings. | |||||||||||||||||||
The agreements with each of the derivative counterparties contain cross-default provisions, whereby if Windstream Corp. were to default on certain indebtedness, it could also be declared in default on its derivative obligations and may be required to net settle any outstanding derivative liability positions with its counterparties. In addition, certain of the agreements with the counterparties contain provisions where if a specified event or condition, such as a merger, occurs that materially changes Windstream Corp.’s creditworthiness in an adverse manner, Windstream Corp. may be required to fully collateralize its derivative obligations. At December 31, 2014, Windstream Corp. had not posted any collateral related to its interest rate swap agreements. | ||||||||||||||||||||
Balance Sheet Offsetting | ||||||||||||||||||||
Windstream Corp. is party to master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions, with counterparties. For financial statement presentation purposes, Windstream Corp. does not offset assets and liabilities under these arrangements. | ||||||||||||||||||||
The following tables present assets and the liabilities subject to an enforceable master netting arrangement as of December 31, 2014 and 2013. As of December 31, 2013, all swap agreements with counterparties were in a liability position and, accordingly, there were no assets to be recognized in the accompanying consolidated balance sheets as of that date. | ||||||||||||||||||||
Information pertaining to derivative assets was as follows: | ||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated | ||||||||||||||||||||
Balance Sheets | ||||||||||||||||||||
(Millions) | Gross Amount of Recognized | Net Amount of Assets presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
Assets | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||
Interest rate swaps | $ | 0.4 | $ | 0.4 | $ | (0.3 | ) | $ | — | $ | 0.1 | |||||||||
5. Derivative Instruments, Continued: | ||||||||||||||||||||
Information pertaining to derivative liabilities was as follows: | ||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated | ||||||||||||||||||||
Balance Sheets | ||||||||||||||||||||
(Millions) | Gross Amount of Recognized Liabilities | Net Amount of Liabilities presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
December 31, 2014: | ||||||||||||||||||||
Derivatives | $ | 77.2 | $ | 77.2 | $ | (0.3 | ) | $ | — | $ | 76.9 | |||||||||
December 31, 2013: | ||||||||||||||||||||
Derivatives | $ | 71.8 | $ | 71.8 | $ | — | $ | — | $ | 71.8 | ||||||||||
Fair_Value_Measurements
Fair Value Measurements: | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Fair Value Measurements: | Fair Value Measurements: | ||||||||
Fair value of financial and non-financial assets and liabilities is defined as an exit price, representing the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. Authoritative guidance defines the following three tier hierarchy for assessing the inputs used in fair value measurements: | |||||||||
Level 1 – Quoted prices in active markets for identical assets or liabilities | |||||||||
Level 2 – Observable inputs other than quoted prices in active markets for identical assets or liabilities | |||||||||
Level 3 – Unobservable inputs | |||||||||
The highest priority is given to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority is given to unobservable inputs (level 3 measurement). Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. | |||||||||
Our non-financial assets and liabilities, including property, plant and equipment, goodwill, intangible assets and asset retirement obligations, are measured at fair value on a non-recurring basis. No event occurred during the year ended December 31, 2014 requiring these non-financial assets and liabilities to be subsequently recognized at fair value. Our financial instruments consist primarily of cash and cash equivalents, restricted cash, accounts receivable, income tax receivable, accounts payable, long-term debt, and interest rate swaps. The carrying amount of cash, restricted cash, accounts receivable, income tax receivable and accounts payable was estimated by management to approximate fair value due to the relatively short period of time to maturity for those instruments. Cash equivalents, long-term debt and interest rate swaps are measured at fair value on a recurring basis. Cash equivalents were not significant as of December 31, 2014 or 2013. | |||||||||
6. Fair Value Measurements, Continued: | |||||||||
The fair values of interest rate swaps and long-term debt were determined using the following inputs at December 31: | |||||||||
(Millions) | 2014 | 2013 | |||||||
Recorded at Fair Value in the Financial Statements: | |||||||||
Derivatives: | |||||||||
Interest rate swap assets - Level 2 | $ | 0.4 | $ | — | |||||
Interest rate swap liabilities - Level 2 | $ | 77.2 | $ | 71.8 | |||||
Not Recorded at Fair Value in the Financial Statements: (a) (b) | |||||||||
Long-term debt, including current maturities - Level 1 | $ | — | $ | 5,270.00 | |||||
Long-term debt, including current maturities - Level 2 | 8,777.50 | 3,738.20 | |||||||
$ | 8,777.50 | $ | 9,008.20 | ||||||
(a) | Recognized at carrying value of $8,651.7 million and $8,707.2 million in long-term debt, including current maturities, in the accompanying consolidated balance sheets as of December 31, 2014 and 2013, respectively. | ||||||||
(b) | Due to a lack of new borrowings and other refinancing activities in 2014 resulting in a decline in the frequency and volume of market activity related to Windstream Corp.’s debt obligations, we have reclassified all long-term debt as Level 2. | ||||||||
The fair values of interest rate swaps are determined based on the present value of expected future cash flows using observable, quoted LIBOR swap rates for the full term of the swaps and also incorporate credit valuation adjustments to appropriately reflect both Windstream Corp.’s own non-performance risk and non-performance risk of the respective counterparties. As of December 31, 2014 and 2013, the fair values of the interest rate swaps were reduced by $3.3 million and $2.6 million, respectively, to reflect non-performance risk. | |||||||||
The fair value of the corporate bonds was calculated based on quoted market prices of the specific issuances in an active market when available. The fair value of the other debt obligations was estimated based on appropriate market interest rates applied to the debt instruments. In calculating the fair value of the Windstream Holdings of the Midwest, Inc. notes, an appropriate market price of similar instruments in an active market considering credit quality, non-performance risk and maturity of the instrument was used. | |||||||||
We do not have any assets or liabilities measured for purposes of the fair value hierarchy at fair value using significant unobservable inputs (Level 3). We recognize transfers between levels of the fair value hierarchy as of the end of the reporting period. Except for the change in classifying Windstream Corp.’s debt obligations, there were no other transfers within the fair value hierarchy during the year ended December 31, 2014. |
Employee_Benefit_Plans_and_Pos
Employee Benefit Plans and Postretirement Benefits: | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||
Employee Benefit Plans and Postretirement Benefits: | Employee Benefit Plans and Postretirement Benefits: | ||||||||||||||||||||||||
We maintain a non-contributory qualified defined benefit pension plan. Future benefit accruals for all eligible nonbargaining employees covered by the pension plan have ceased. We also maintain supplemental executive retirement plans that provide unfunded, non-qualified supplemental retirement benefits to a select group of management employees. Additionally, we provide postretirement healthcare and life insurance benefits for eligible employees. Employees share in, and we fund, the costs of these plans as benefits are paid. | |||||||||||||||||||||||||
The components of pension benefit (income) expense (including provision for executive retirement agreements) and postretirement benefits income were as follows for the years ended December 31: | |||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Benefits earned during the year | $ | 8.2 | $ | 10.5 | $ | 10 | $ | — | $ | — | $ | 0.1 | |||||||||||||
Interest cost on benefit obligation | 58.9 | 52.5 | 58 | 1.3 | 1.4 | 1.8 | |||||||||||||||||||
Net actuarial loss (gain) | 128.6 | (110.4 | ) | 72.5 | — | — | — | ||||||||||||||||||
Amortization of net actuarial loss | — | — | — | 0.1 | 1.7 | 2.3 | |||||||||||||||||||
Amortization of prior service credit | (0.1 | ) | (0.1 | ) | (0.1 | ) | (5.8 | ) | (8.6 | ) | (11.8 | ) | |||||||||||||
Plan curtailments and settlements | — | — | — | (11.5 | ) | (32.2 | ) | (9.6 | ) | ||||||||||||||||
Expected return on plan assets | (67.3 | ) | (67.8 | ) | (73.0 | ) | — | — | — | ||||||||||||||||
Net periodic benefit expense (income) | $ | 128.3 | $ | (115.3 | ) | $ | 67.4 | $ | (15.9 | ) | $ | (37.7 | ) | $ | (17.2 | ) | |||||||||
During 2014, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily for certain active participants effective on April 1, 2014, April 3, 2014, May 1, 2014, and May 31, 2014. We also eliminated the subsidies for certain active and current retirees effective January 1, 2015. As a result, we remeasured the plan and recognized curtailment and settlement gains totaling $11.5 million, of which $7.1 million was recognized in cost of services expenses and $4.4 million was recognized in selling, general and administrative expenses, with the offsetting effects recorded as a reduction in accumulated other comprehensive income of $10.0 million and other liabilities of $1.5 million. | |||||||||||||||||||||||||
During 2013, we made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies primarily for certain active participants effective August 1, 2013, October 1, 2013 or January 1, 2014. As a result, we remeasured the plan and recognized curtailment gains totaling $32.2 million, of which $24.1 million was recognized in cost of services expenses and $8.1 million was recognized in selling, general and administrative expenses, with offsetting effects recorded as reductions in accumulated other comprehensive income of $31.8 million and other liabilities of $0.4 million. | |||||||||||||||||||||||||
During 2012, we also made changes to our postretirement medical plan, eliminating medical and prescription drug subsidies for certain active and retired participants effective January 1, 2014. As a result, we remeasured the plan and recognized a curtailment gain of $9.6 million, of which $7.4 million was recognized in cost of services expenses and $2.2 million was recognized in selling, general, and administrative expenses, with an offsetting reduction in accumulated other comprehensive income. | |||||||||||||||||||||||||
We recognize actuarial gains and losses for pension benefits as a component of net periodic benefit expense (income) in the year in which the gains and losses occur. In determining our annual postretirement benefits cost, we amortize unrecognized actuarial gains and losses exceeding 10.0 percent of the projected benefit obligation over the lesser of 10 years or the average remaining service life of active employees. We do not amortize unrecognized actuarial gains and losses below the 10.0 percent corridor. | |||||||||||||||||||||||||
7. Employee Benefit Plans and Postretirement Benefits, Continued: | |||||||||||||||||||||||||
A summary of plan assets, projected benefit obligation and funded status of the plans (including executive retirement agreements) were as follows at December 31: | |||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 959.7 | $ | 999 | $ | 0.3 | $ | 0.2 | |||||||||||||||||
Actual return on plan assets | 144.6 | 10.8 | — | 0.1 | |||||||||||||||||||||
Employer contributions | 89.9 | 28.5 | 3.8 | 1.9 | |||||||||||||||||||||
Participant contributions | — | — | 0.4 | 1.5 | |||||||||||||||||||||
Benefits paid (a) | (65.6 | ) | (78.6 | ) | (4.2 | ) | (3.4 | ) | |||||||||||||||||
Settlements (b) | (86.6 | ) | — | — | — | ||||||||||||||||||||
Fair value of plan assets at end of year | $ | 1,042.00 | $ | 959.7 | $ | 0.3 | $ | 0.3 | |||||||||||||||||
Projected benefit obligation at beginning of year | $ | 1,210.60 | $ | 1,400.10 | $ | 31.4 | $ | 42.4 | |||||||||||||||||
Interest cost on projected benefit obligations | 58.9 | 52.5 | 1.3 | 1.4 | |||||||||||||||||||||
Service costs | 8.2 | 10.5 | — | — | |||||||||||||||||||||
Participant contributions | — | — | 0.4 | 1.5 | |||||||||||||||||||||
Plan amendments | — | — | (0.2 | ) | (0.8 | ) | |||||||||||||||||||
Actuarial (gain) loss | 206.3 | (173.9 | ) | 3.4 | (9.7 | ) | |||||||||||||||||||
Benefits paid (a) | (65.6 | ) | (78.6 | ) | (4.2 | ) | (3.4 | ) | |||||||||||||||||
Settlements (b) | (86.6 | ) | — | (1.5 | ) | — | |||||||||||||||||||
Projected benefit obligation at end of year | $ | 1,331.80 | $ | 1,210.60 | $ | 30.6 | $ | 31.4 | |||||||||||||||||
Plan assets less than projected benefit obligation recognized | |||||||||||||||||||||||||
in the consolidated balance sheet: | |||||||||||||||||||||||||
Current liabilities | $ | (0.8 | ) | $ | (83.8 | ) | $ | (2.3 | ) | $ | (2.6 | ) | |||||||||||||
Noncurrent liabilities | (289.0 | ) | (167.1 | ) | (28.0 | ) | (28.5 | ) | |||||||||||||||||
Funded status recognized in the consolidated balance sheets | $ | (289.8 | ) | $ | (250.9 | ) | $ | (30.3 | ) | $ | (31.1 | ) | |||||||||||||
Amounts recognized in accumulated other comprehensive | |||||||||||||||||||||||||
income: | |||||||||||||||||||||||||
Net actuarial loss | $ | — | $ | — | $ | (5.8 | ) | $ | (2.6 | ) | |||||||||||||||
Prior service credits | 0.5 | 0.6 | 29.2 | 44.9 | |||||||||||||||||||||
Net amount recognized in accumulated other comprehensive | $ | 0.5 | $ | 0.6 | $ | 23.4 | $ | 42.3 | |||||||||||||||||
income | |||||||||||||||||||||||||
(a) | During both 2014 and 2013, pension benefits paid from Windstream’s assets totaled $0.8 million and $0.8 million, respectively. All postretirement benefits in both years were paid from Windstream’s assets. | ||||||||||||||||||||||||
(b) | In an effort to reduce our long-term pension obligations and administrative expenses of the Windstream Pension Plan, during the fourth quarter of 2014, we offered to certain eligible participants of the plan the option to receive a single lump sum payment in full settlement of all future pension benefits earned by the participant from prior service to Windstream. Individuals eligible for the voluntary lump sum payment option were former employees and certain of their beneficiaries with termination dates on or prior to June 7, 2014 who had not yet commenced their pension benefit payments. The calculated amount of the single lump sum payment was the actuarial equivalent of the participant’s vested accrued pension benefit as of December 2014. All lump-sum payments were made from existing plan assets. | ||||||||||||||||||||||||
7. Employee Benefit Plans and Postretirement Benefits, Continued: | |||||||||||||||||||||||||
Estimated amounts to be amortized from accumulated other comprehensive income into net periodic benefit (income) expense in 2015, including executive retirement agreements, are as follows: | |||||||||||||||||||||||||
(Millions) | Pension | Postretirement | |||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
Net actuarial loss | $ | — | $ | 0.8 | |||||||||||||||||||||
Prior service credits | $ | (0.1 | ) | $ | (5.2 | ) | |||||||||||||||||||
The accumulated benefit obligation of our pension plan and executive retirement agreements, was $1,309.7 million, $1,193.0 million and $1,375.8 million at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Assumptions – Actuarial assumptions used to calculate pension and postretirement benefits (income) expense were as follows for the years ended December 31: | |||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 5.01 | % | 3.85 | % | 4.64 | % | 4.76 | % | (a) | 3.87 | % | 4.58 | % | ||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 8 | % | 7 | % | 7 | % | 8 | % | |||||||||||||
Rate of compensation increase | 2 | % | 2 | % | 4.17 | % | — | % | — | % | — | % | |||||||||||||
(a) | As a result of the various remeasurements of our postretirement benefit obligations completed in 2013 previously discussed, key assumptions including the discount rate were updated as of each remeasurement date. | ||||||||||||||||||||||||
Actuarial assumptions used to calculate the projected benefit obligations were as follows at December 31: | |||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Discount rate | 4.14 | % | 5.01 | % | 4.21 | % | 4.99 | % | |||||||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 7 | % | 7 | % | |||||||||||||||||
Rate of compensation increase | 2 | % | 2 | % | — | % | — | % | |||||||||||||||||
In developing the expected long-term rate of return assumption, we considered the plan’s historical rate of return, as well as input from our investment advisors. Projected returns on qualified pension plan assets were based on broad equity and bond indices and include a targeted asset allocation of 26.0 percent to equities, 53.0 percent to fixed income securities, and 21.0 percent to alternative investments, with an aggregate expected long-term rate of return of approximately 7.0 percent. | |||||||||||||||||||||||||
Information regarding the healthcare cost trend rate was as follows for the years ended December 31: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Healthcare cost trend rate assumed for next year | 7.5 | % | 8 | % | |||||||||||||||||||||
Rate that the cost trend ultimately declines to | 5 | % | 5 | % | |||||||||||||||||||||
Year that the rate reaches the terminal rate | 2020 | 2020 | |||||||||||||||||||||||
For the year ended December 31, 2014, a one percent increase in the assumed healthcare cost trend rate would increase the postretirement benefit cost by approximately $0.1 million, while a one percent decrease in the rate would reduce the postretirement benefit cost by approximately $0.1 million. As of December 31, 2014, a one percent increase in the assumed healthcare cost trend rate would increase the postretirement benefit obligation by approximately $1.8 million, while a one percent decrease in the rate would reduce the postretirement benefit obligation by approximately $1.5 million. | |||||||||||||||||||||||||
7. Employee Benefit Plans and Postretirement Benefits, Continued: | |||||||||||||||||||||||||
Plan Assets – Our pension plan assets are allocated to asset categories based on the specific strategy employed by the asset’s investment manager. The asset allocation for our pension plan by asset category was as follows for the years ended December 31: | |||||||||||||||||||||||||
Target Allocation | Percentage of Plan Assets | ||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | ||||||||||||||||||||||
Equity securities | 19.6% - 31.6% | 26.9 | % | 27.7 | % | ||||||||||||||||||||
Fixed income securities | 40.3% - 67.3% | 53.9 | % | 52.4 | % | ||||||||||||||||||||
Alternative investments | 14.1% - 24.1% | 18.2 | % | 15 | % | ||||||||||||||||||||
Money market and other short-term interest bearing securities | 0.0% - 4.0% | 1 | % | 4.9 | % | ||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||
We utilize a third party to assist in evaluating the allocation of the total assets in the pension trust, taking into consideration the pension liabilities and funded status of the pension plan. Assets are managed utilizing a Liability Driven Investment approach, meaning that assets are managed within a risk management framework which addresses the need to generate incremental returns in the context of an appropriate level of risk, based on plan liability profiles and changes in funded status. The return objectives are to satisfy funding obligations when and as prescribed by law and to keep pace with the growth of the pension plan liabilities. Given the long time horizon for paying out benefits and our strong financial condition, the pension plan can accept an average level of risk relative to other similar plans. The liquidity needs of the pension plan are manageable given that lump sum payments are not available to most participants. | |||||||||||||||||||||||||
Equity securities include stocks of both large and small capitalization domestic and international companies. Equity securities are expected to provide both diversification and long-term real asset growth. Domestic equities may include modest holdings of non-U.S. equities, purchased by domestic equity managers as long as they are traded in the U.S and denominated in U.S. dollars and both active and passive (index) investment strategies. International equities provide a broad exposure to return opportunities and investment characteristics associated with the world equity markets outside the U.S. The pension plan’s equity holdings are diversified by investment style, market capitalization, market or region, and economic sector. | |||||||||||||||||||||||||
Fixed income securities include securities issued by the U.S. Government and other governmental agencies, asset-backed securities and debt securities issued by domestic and international entities, and derivative instruments comprised of swaps, futures, forwards and options. These securities are expected to provide diversification benefits, and are expected to reduce asset volatility and pension funding volatility, and a stable source of income. | |||||||||||||||||||||||||
Alternative investments may include hedge funds and hedge funds of funds, commodities, both private and public real estate and private equity investments. In addition to attractive diversification benefits, the alternative investments are expected to provide both income and capital appreciation. | |||||||||||||||||||||||||
Investments in money market and other short-term interest bearing securities are maintained to provide liquidity for benefit payments with protection of principal being the primary objective. | |||||||||||||||||||||||||
The pension plan is permitted to make investments in our common stock. On March 7, 2014, we contributed 1.0 million shares of our common stock to the Windstream Pension Plan to meet our quarterly 2014 funding requirements. At the time of this contribution, the shares had an appraised value, as determined by a third party valuation firm, of approximately $8.3 million. On September 13, 2013, we contributed 3.3 million shares of our common stock to the pension plan to fund our remaining 2013 funding obligation and a portion of our expected 2014 funding obligation. At the time of this contribution, the shares had an appraised value of approximately $27.8 million, as determined by a third party valuation firm. We made no contributions to the pension plan in 2012. | |||||||||||||||||||||||||
As previously discussed in Note 4, we contributed certain of our own real property to our qualified pension plan during the third quarter of 2014. Independent appraisals of the properties contributed were obtained and the Windstream Pension Plan recorded the contribution based on the properties’ aggregate fair value of $80.9 million at the dates of contribution. We subsequently entered into leases for the contributed properties with initial lease terms of 10 years for certain properties and 20 years for the remaining properties at an aggregate annual rent of approximately $6.3 million. The lease agreements provide for annual rent increases ranging from 2.0 percent to 3.0 percent over the initial lease term and may be renewed for up to three additional 5-year terms. The properties are managed on behalf of the Windstream Pension Plan by an independent fiduciary and terms of the lease agreements were negotiated with the fiduciary on an arm’s-length basis. | |||||||||||||||||||||||||
7. Employee Benefit Plans and Postretirement Benefits, Continued: | |||||||||||||||||||||||||
The fair values of our pension plan assets were determined using the following inputs as of December 31, 2014: | |||||||||||||||||||||||||
Quoted Price in | Significant | Significant | |||||||||||||||||||||||
Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||||||||||
(Millions) | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Value | |||||||||||||||||||||||||
Money market funds (a) | $ | 42.4 | $ | — | $ | 42.4 | $ | — | |||||||||||||||||
Guaranteed annuity contract (b) | 1.4 | — | — | 1.4 | |||||||||||||||||||||
Common collective trust funds (c) | 330.8 | — | 330.8 | — | |||||||||||||||||||||
Government and agency securities (d) | 285.6 | — | 285.6 | — | |||||||||||||||||||||
Corporate bonds and asset backed securities (d) | 34.4 | — | 34.4 | — | |||||||||||||||||||||
Common and preferred stocks - domestic (d) | 54.8 | 54.7 | — | 0.1 | |||||||||||||||||||||
Common and preferred stocks - international (d) | 25.3 | 25.3 | — | — | |||||||||||||||||||||
Derivative financial instruments (e) | 16.9 | — | 16.9 | — | |||||||||||||||||||||
Hedge fund of funds (f) | 61.9 | — | — | 61.9 | |||||||||||||||||||||
Mutual fund (d) | 66.7 | 66.7 | — | — | |||||||||||||||||||||
Real estate and private equity funds (g) | 138.2 | — | — | 138.2 | |||||||||||||||||||||
Other (h) | 0.6 | 0.6 | — | — | |||||||||||||||||||||
Total investments | $ | 1,059.00 | $ | 147.3 | $ | 710.1 | $ | 201.6 | |||||||||||||||||
Dividends and interest receivable | 3.7 | ||||||||||||||||||||||||
Pending trades and other liabilities | (20.7 | ) | |||||||||||||||||||||||
Total plan assets | $ | 1,042.00 | |||||||||||||||||||||||
The fair values of our pension plan assets were determined using the following inputs as of December 31, 2013: | |||||||||||||||||||||||||
Quoted Price in | Significant | Significant | |||||||||||||||||||||||
Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||||||||||
(Millions) | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Value | |||||||||||||||||||||||||
Money market funds (a) | $ | 37 | $ | — | $ | 37 | $ | — | |||||||||||||||||
Guaranteed annuity contract (b) | 1.9 | — | — | 1.9 | |||||||||||||||||||||
Common collective trust funds (c) (1) | 323.7 | — | 323.7 | — | |||||||||||||||||||||
Government and agency securities (d) | 234.4 | — | 234.4 | — | |||||||||||||||||||||
Corporate bonds and asset backed securities (d) | 94.5 | — | 94.5 | — | |||||||||||||||||||||
Common and preferred stocks - domestic (d) | 69.4 | 69.3 | — | 0.1 | |||||||||||||||||||||
Common stock - Windstream Holdings (d) | 26.3 | 26.3 | — | — | |||||||||||||||||||||
Common and preferred stocks - international (d) | 24.1 | 24.1 | — | — | |||||||||||||||||||||
Derivative financial instruments (e) | (25.1 | ) | 0.1 | (25.2 | ) | — | |||||||||||||||||||
Hedge fund of funds (f) | 60.2 | — | — | 60.2 | |||||||||||||||||||||
Mutual fund (d) (1) | 59.4 | 59.4 | — | — | |||||||||||||||||||||
Real estate and private equity funds (g) | 52.8 | — | — | 52.8 | |||||||||||||||||||||
Other (h) | 1.1 | 1.1 | — | — | |||||||||||||||||||||
Total investments | $ | 959.7 | $ | 180.3 | $ | 664.4 | $ | 115 | |||||||||||||||||
Dividends and interest receivable | 3.9 | ||||||||||||||||||||||||
Pending trades | (3.9 | ) | |||||||||||||||||||||||
Total plan assets | $ | 959.7 | |||||||||||||||||||||||
7. Employee Benefit Plans and Postretirement Benefits, Continued: | |||||||||||||||||||||||||
-1 | Amount reflects the correction of an immaterial error for a mutual fund investment previously reported as a common collective trust fund in Level 2 that should have been reported as a Level 1. | ||||||||||||||||||||||||
(a) | Money market funds are based on the fair value of the underlying assets held as determined by the fund manager on the last business day of the year. The underlying assets are mostly comprised of certificates of deposit, time deposits and commercial paper valued at amortized cost. | ||||||||||||||||||||||||
(b) | The guaranteed annuity contract is based on the value of the underlying contracts adjusted to market value which recognizes that either long-term assets would have to be sold before contract maturity or new contributions by other contract holders would have to be exchanged for funds being transferred, precluding these contributions from being invested at their current state of return. | ||||||||||||||||||||||||
(c) | Units in common collective trust funds are valued by reference to the funds’ underlying assets and based on the net asset value as reported by the fund manager on the last business day of the Plan year. The underlying assets are mostly comprised of publicly traded equity securities and fixed income securities. These securities are valued at the official closing price of, or the last reported sale prices as of the close of business or, in the absence of any sales, at the latest available bid price. | ||||||||||||||||||||||||
(d) | Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and registered investment companies traded in active markets on securities exchanges are valued based on quoted market prices on the last day of the Plan year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securities that trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. | ||||||||||||||||||||||||
(e) | Derivative financial instruments consist primarily of swaps and are valued at fair value based on models that reflect the contractual terms of the instruments. Inputs include primarily observable market information, such as swap curves, benchmark yields, rating updates and interdealer broker quotes at the end of the Plan year. | ||||||||||||||||||||||||
(f) | Hedge funds of funds hold a portfolio of other investment funds instead of directly investing in specific securities, commodities or other financial instruments. The funds are valued based on the net asset value of the fund determined by the fund manager on the last business day of the Plan year. The net asset value is derived from the fair value of each underlying fund comprising the hedge fund of funds. | ||||||||||||||||||||||||
(g) | The real estate fund is valued based on the net asset value of the fund on the last business day of the Plan year. The net asset value is derived from the fair value of the underlying net assets of the fund. Private equity funds consist of investments in limited partnerships and are valued based on the Plan’s capital account balance at year end as reported in the audited financial statements of the partnership. This category also includes the contributed real estate properties we are leasing back from the plan. The fair value of these properties is based on independent appraisals. | ||||||||||||||||||||||||
(h) | Other investments include warrants, interest bearing cash and investments in foreign currency. These investments are valued at their quoted market price on the last day of the Plan year. Investments traded in markets that are not considered active are valued based on a compilation of primarily observable market information or a broker quote. | ||||||||||||||||||||||||
7. Employee Benefit Plans and Postretirement Benefits, Continued: | |||||||||||||||||||||||||
The following is a reconciliation of the beginning and ending balances of pension plan assets that are measured at fair value using significant unobservable input: | |||||||||||||||||||||||||
(Millions) | Domestic equities | Hedge fund of funds | Real estate and private equity funds | Guaranteed annuity contract | Total | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 0.1 | $ | — | $ | 44.4 | $ | 2.3 | $ | 46.8 | |||||||||||||||
Gains on plan assets still held at year-end | — | 2.7 | 4.3 | 0.2 | 7.2 | ||||||||||||||||||||
Purchases and sales, net | — | 57.5 | 4.1 | (0.6 | ) | 61 | |||||||||||||||||||
Transfers in and/or out of level 3 | — | — | — | — | — | ||||||||||||||||||||
Balance at December 31, 2013 | 0.1 | 60.2 | 52.8 | 1.9 | 115 | ||||||||||||||||||||
Gains related to plan assets sold during the year | — | — | 0.9 | — | 0.9 | ||||||||||||||||||||
Gains on plan assets still held at year-end | — | 1.7 | 5.7 | 0.1 | 7.5 | ||||||||||||||||||||
Purchases and sales, net | — | — | 78.8 | (0.6 | ) | 78.2 | |||||||||||||||||||
Transfers in and/or out of level 3 | — | — | — | — | — | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 0.1 | $ | 61.9 | $ | 138.2 | $ | 1.4 | $ | 201.6 | |||||||||||||||
Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period. There were no transfers in or out of levels 1, 2, or 3 for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||
There have been no significant changes in the methodology used to value investments from prior year. The valuation methods used may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the valuation methods are consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | |||||||||||||||||||||||||
Estimated Future Employer Contributions and Benefit Payments – Estimated future employer contributions, benefit payments, including executive retirement agreements, are as follows as of December 31, 2014: | |||||||||||||||||||||||||
(Millions) | Pension | Postretirement | |||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
Expected employer contributions in 2015 | $ | 0.8 | $ | 2.3 | |||||||||||||||||||||
Expected benefit payments: | |||||||||||||||||||||||||
2015 | $ | 78.4 | $ | 2.3 | |||||||||||||||||||||
2016 | 79.3 | 2.2 | |||||||||||||||||||||||
2017 | 81.4 | 2.1 | |||||||||||||||||||||||
2018 | 81.4 | 1.9 | |||||||||||||||||||||||
2019 | 83.1 | 1.8 | |||||||||||||||||||||||
2020-2024 | 420.5 | 6.7 | |||||||||||||||||||||||
The 2015 expected employer contribution for pension benefits consists of $0.8 million necessary to fund the expected benefit payments related to the unfunded supplemental executive retirement pension plans to avoid certain benefit restrictions. We intend to fund this contribution using cash. | |||||||||||||||||||||||||
7. Employee Benefit Plans and Postretirement Benefits, Continued: | |||||||||||||||||||||||||
Employee Savings Plan – We also sponsor an employee savings plan under section 401(k) of the Internal Revenue Code, which covers substantially all salaried employees and certain bargaining unit employees. Windstream matches on an annual basis up to a maximum of 4.0 percent of employee pre-tax contributions to the plan for employees contributing up to 5.0 percent of their eligible pre-tax compensation. We recorded expense of $18.3 million, $18.1 million and $17.8 million in 2014, 2013 and 2012, respectively, related to our matching contribution under the employee savings plan, which was included in cost of services and selling, general and administrative in our consolidated statements of operations. Expense related to our 2014 matching contribution expected to be made in Windstream stock is included in share-based compensation expense in the accompanying consolidated statements of cash flow. During 2014, we contributed 2.7 million shares of our common stock to the plan for the 2013 annual matching contribution. At the time of this contribution, the shares had a value of approximately $21.6 million as determined by the plan trustee. During 2013, we contributed $20.4 million of our common stock to the plan for the 2012 annual matching contribution. |
ShareBased_Compensation_Plans
Share-Based Compensation Plans: | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Share-Based Compensation Plans: | Share-Based Compensation Plans: | |||||||||||||
Under the Amended and Restated 2006 Equity Incentive Plan (the “Incentive Plan”), we may issue a maximum of 35.0 million equity stock awards in the form of restricted stock, restricted stock units, stock appreciation rights or stock options. As of December 31, 2014, the Incentive Plan had remaining capacity of 17.7 million awards. As of December 31, 2014, we had additional remaining capacity of 2.0 million awards from a similar equity incentive plan acquired in the PAETEC acquisition. | ||||||||||||||
Restricted Stock and Restricted Stock Unit Activity - During 2014, 2013 and 2012, our Board of Directors approved grants of restricted stock and restricted stock units to officers, executives, non-employee directors and certain management employees. These grants include the standard annual grants to this employee and director groups as a key component of their annual incentive compensation plan and one-time grants may include time-based and performance based awards. Time-based awards generally vest ratably over a service period of two or three years. Each recipient of the performance-based restricted stock units may vest in a number of shares from zero to 150.0 percent of their award based on attainment of certain operating targets, some of which are indexed to the performance of Standard & Poor’s 500 Stock Index, over a three-year period. | ||||||||||||||
The vesting periods and grant date fair value for restricted stock and restricted stock units issued was as follows for the years ended December 31: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(Thousands) | Number of | Number of | Number of | |||||||||||
Shares | Shares | Shares | ||||||||||||
Vest ratably over a three-year service period | 2,929.30 | 2,254.00 | 1,543.70 | |||||||||||
Vest ratably over a two-year service period | 18.3 | 68.4 | — | |||||||||||
Vest variably over a three-year service period | 247.3 | 186.1 | 54.7 | |||||||||||
Vest contingently over a three-year performance period | 1,176.30 | 786.7 | 723.5 | |||||||||||
Vest one year from date of grant, service based - granted to | 121 | 81.5 | 51.4 | |||||||||||
non-employee directors | ||||||||||||||
Vest three years from date of grant, service based | 189.3 | — | 4 | |||||||||||
Total granted | 4,681.50 | 3,376.70 | 2,377.30 | |||||||||||
Grant date fair value (Millions) | $ | 39.3 | $ | 32.6 | $ | 29.4 | ||||||||
For performance based restricted stock units granted in 2014 the operating targets for the first vesting period were approved by the Board of Directors in March 2014. For the performance based restricted stock granted in 2013, the operating targets for the first vesting period were approved by the Board of Directors in February 2013. For performance based restricted stock granted in 2012, the operating targets for the first and second vesting periods were approved by the Board of Directors in February 2012 and 2013, respectively. For measurement periods prior to 2014, each of the operating targets were met by the end of their respective measurement periods. The operating targets for the performance based restricted stock units granted in 2014 were not met and these awards were forfeited. | ||||||||||||||
8. Share-Based Compensation Plans, Continued: | ||||||||||||||
Restricted stock and restricted stock unit activity for the year ended December 31, 2014 was as follows: | ||||||||||||||
(Thousands) | Weighted | |||||||||||||
Underlying Number of | Average Fair | |||||||||||||
Shares | Value | |||||||||||||
Non-vested at December 31, 2013 | 5,259.50 | $ | 10.75 | |||||||||||
Granted | 4,681.50 | $ | 8.39 | |||||||||||
Vested | (2,548.3 | ) | $ | 11.19 | ||||||||||
Forfeited | (1,524.7 | ) | $ | 8.85 | ||||||||||
Non-vested at December 31, 2014 | 5,868.00 | $ | 9.17 | |||||||||||
At December 31, 2014, unrecognized compensation expense totaled $29.2 million and is expected to be recognized over the weighted average vesting period of 1.5 years. Unrecognized compensation expense is included in additional paid-in capital in the accompanying consolidated balance sheets and statements of shareholders’ equity. The total fair value of shares vested during 2014, 2013 and 2012 was $28.5 million, $24.2 million and $22.7 million, respectively. Share-based compensation expense recognized for restricted stock and restricted stock units was $22.0 million, $26.7 million and $25.2 million for 2014, 2013 and 2012, respectively. | ||||||||||||||
Stock Option Activity - In conjunction with the acquisition of PAETEC, we issued approximately 3.9 million stock options to former PAETEC employees to replace outstanding PAETEC stock options held by these same employees as of the acquisition date. The exercise price of the options granted was 0.460 shares of the exercise price on the original issuances. All other terms of the original options, including the vesting provisions, were retained. The contractual term of the options granted is ten years from the original issuance date. Awards generally vest ratably over a service period of three or four years. Our practice is to issue new shares of common stock upon the exercise of stock options. No other stock options have been granted by us during the three year period ended December 31, 2014. | ||||||||||||||
The following table summarizes stock option activity for the year ended December 31, 2014: | ||||||||||||||
(Thousands) | Weighted | (Years) | (Millions)Aggregate Intrinsic | |||||||||||
Number of | Average | Weighted | Value | |||||||||||
Shares Underlying Options | Exercise | Average | ||||||||||||
Price | Remaining Contractual Life | |||||||||||||
Outstanding at December 31, 2013 | 1,464.40 | $ | 12.29 | |||||||||||
Granted | — | $ | — | |||||||||||
Exercised | (228.2 | ) | $ | 6.84 | ||||||||||
Canceled | (370.0 | ) | $ | 13.78 | ||||||||||
Forfeited | (12.4 | ) | $ | 8.93 | ||||||||||
Outstanding at December 31, 2014 | 853.8 | $ | 13.15 | 2.8 | $ | 0.8 | ||||||||
Vested or expected to vest at December 31, 2014 | 834.1 | $ | 13.26 | 2.7 | $ | 0.8 | ||||||||
Exercisable at December 31, 2014 | 826.1 | $ | 13.3 | 2.7 | $ | 0.8 | ||||||||
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing sale price of Windstream’s common stock as reported on the Nasdaq Global Select Market on December 31, 2014 and the option exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders if all option holders had exercised their options on December 31, 2014. This amount changes based on the fair market value of Windstream’s common stock. The aggregate intrinsic value of options exercised during the year ended December 31, 2014 was approximately $0.4 million. | ||||||||||||||
Total compensation expense related to stock options granted was approximately $0.1 million, $0.1 million, and $0.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
8. Share-Based Compensation Plans, Continued: | ||||||||||||||
The following table summarizes stock option information as of December 31, 2014: | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Range of Exercise Prices | (Thousands) | Weighted | (Thousands) | Weighted | ||||||||||
Number of | Average | Number of | Average | |||||||||||
Options | Exercise | Options | Exercise | |||||||||||
Price | Price | |||||||||||||
$1.96-$4.70 | 163.2 | $ | 4.1 | 163.2 | $ | 4.1 | ||||||||
$4.71-$8.30 | 155 | $ | 7.29 | 135.1 | $ | 7.15 | ||||||||
$8.31-$14.00 | 175.1 | $ | 11.6 | 167.3 | $ | 11.65 | ||||||||
$14.01-$29.27 | 360.5 | $ | 20.53 | 360.5 | $ | 20.53 | ||||||||
853.8 | $ | 13.15 | 826.1 | $ | 13.3 | |||||||||
As of December 31, 2014, there was no unrecognized share-based compensation expense related to stock options granted. | ||||||||||||||
In addition to including amounts related to restricted stock, restricted units and stock options, share-based compensation expense presented in the accompanying consolidated statements of cash flow also includes amounts related to certain executive and management incentive compensation plans and the matching contribution to the employee savings plan for which payments to eligible participants are expected to be made in Windstream stock. Except for the second and third quarters of 2014, payments made under the applicable executive and management incentive plans had been in the form of cash. A summary of share-based compensation expense was as follows for the years ended December 31: | ||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||
Restricted stock, restricted units and stock options | $ | 22.1 | $ | 26.8 | $ | 25.4 | ||||||||
Employee savings plan (See Note 7) | 18.3 | 18.1 | 17.8 | |||||||||||
Executive and management incentive compensation plans | 1.4 | — | — | |||||||||||
Share-based compensation expense | $ | 41.8 | $ | 44.9 | $ | 43.2 | ||||||||
Merger_Integration_and_Restruc
Merger, Integration and Restructuring Charges: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Merger Integration and Restructuring Charges [Abstract] | |||||||||||||
Merger, Integration and Restructuring Charges: | Merger, Integration and Restructuring Charges: | ||||||||||||
We incur a significant amount of costs to complete a merger or acquisition and integrate its operations into our business, which are presented as merger and integration expense in our consolidated results of operations. These costs include transaction costs, such as accounting, legal and broker fees; severance and related costs; IT and network conversion; rebranding; and consulting fees. The 2011 acquisition of PAETEC and 2010 acquisitions of NuVox Inc. (“NuVox”), and Q-Comm Corporation (“Q-Comm”) (collectively known as the “Acquired Companies”), account for the merger and integration costs incurred for the periods presented. Costs incurred related to the proposed spin-off of certain telecommunications network assets into an independent, publicly traded REIT are also included in merger and integration costs. | |||||||||||||
Restructuring charges are primarily incurred as a result of evaluations of our operating structure. Among other things, these evaluations explore opportunities to provide greater flexibility in managing and financing existing and future strategic operations, for task automation, network efficiency and the balancing of our workforce based on the current needs of our customers. Severance, lease exit costs and other related charges are included in restructuring charges. | |||||||||||||
During 2014, we completed two workforce reductions to increase operational efficiency by eliminating a total of approximately 750 positions, including 295 resulting from voluntary separation initiatives. We also completed several smaller workforce reductions throughout the year. In connection with these workforce reductions, we incurred pre-tax restructuring charges of $24.1 million during 2014, primarily consisting of severance and other employee benefit costs. As a result of certain changes in our executive management team, we also incurred severance-related costs of $6.3 million in 2014. | |||||||||||||
In 2012, we completed a review of our management structure and eliminated approximately 350 management positions. We incurred severance related costs of $22.4 million related to this restructuring. | |||||||||||||
9. Merger, Integration and Restructuring Charges, Continued: | |||||||||||||
The following is a summary of the merger, integration and restructuring charges recorded for the years ended December 31: | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Merger and integration costs | |||||||||||||
Transaction costs associated with acquisitions | $ | — | $ | — | $ | 7.1 | |||||||
Employee related transition costs | — | 7.8 | 20.3 | ||||||||||
Information technology conversion costs | 20.8 | 9.5 | 6.1 | ||||||||||
Rebranding, consulting and other costs | 19.6 | 12.9 | 31.9 | ||||||||||
Total merger and integration costs | 40.4 | 30.2 | 65.4 | ||||||||||
Restructuring charges | 35.9 | 8.6 | 27.2 | ||||||||||
Total merger, integration and restructuring charges | $ | 76.3 | $ | 38.8 | $ | 92.6 | |||||||
After giving consideration to tax benefits on deductible items, the effect of merger, integration and restructuring charges resulted in an after-tax charge of $46.6 million, $24.3 million and $58.2 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The following is a summary of the activity related to the liabilities associated with our merger, integration and restructuring charges at December 31: | |||||||||||||
(Millions) | 2014 | 2013 | |||||||||||
Balance, beginning of period | $ | 14 | $ | 20.1 | |||||||||
Merger, integration and restructuring charges | 76.3 | 38.8 | |||||||||||
Cash outlays during the period | (79.1 | ) | (44.9 | ) | |||||||||
Balance, end of period | $ | 11.2 | $ | 14 | |||||||||
As of December 31, 2014, unpaid merger, integration and restructuring liabilities consisted of $4.3 million primarily associated with the restructuring initiatives and $6.9 million related to merger and integration activities. Payments of these liabilities will be funded through operating cash flows. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income: | ||||||||||||
Accumulated other comprehensive income balances, net of tax, were as follows for the years ended December 31: | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Pension and postretirement plans | $ | 14.5 | $ | 26.4 | $ | 43.9 | |||||||
Unrealized holding gains (losses) on interest rate swaps | |||||||||||||
Designated portion | 3.1 | 17.4 | (9.1 | ) | |||||||||
De-designated portion | (5.5 | ) | (15.3 | ) | (28.4 | ) | |||||||
Accumulated other comprehensive income | $ | 12.1 | $ | 28.5 | $ | 6.4 | |||||||
Changes in accumulated other comprehensive (loss) income balances, net of tax, were as follows: | |||||||||||||
(Millions) | Gains (Losses) | Pension and | Total | ||||||||||
on Interest | Postretirement | ||||||||||||
Rate Swaps | Plans | ||||||||||||
Balance at December 31, 2013 | $ | 2.1 | $ | 26.4 | $ | 28.5 | |||||||
Other comprehensive loss before reclassifications | (14.3 | ) | (2.2 | ) | (16.5 | ) | |||||||
Amounts reclassified from other accumulated comprehensive income (a) | 9.8 | (9.7 | ) | 0.1 | |||||||||
Balance at December 31, 2014 | $ | (2.4 | ) | $ | 14.5 | $ | 12.1 | ||||||
(a) | See separate table below for details about these reclassifications. | ||||||||||||
10. Accumulated Other Comprehensive Income, Continued: | |||||||||||||
Reclassifications out of accumulated other comprehensive income were as follows for the years ended December 31: | |||||||||||||
Details about Accumulated Other | (Millions) | Affected Line Item in the | |||||||||||
Comprehensive Income Components | Amount Reclassified from | Consolidated Statements | |||||||||||
Accumulated Other | of Operations | ||||||||||||
Comprehensive Income | |||||||||||||
2014 | 2013 | ||||||||||||
Losses on interest rate swaps: | |||||||||||||
Amortization of unrealized losses on | $ | 15.8 | $ | 35.9 | Interest expense | ||||||||
de-designated interest rate swaps | |||||||||||||
15.8 | 35.9 | (Loss) income from continuing | |||||||||||
operations before income taxes | |||||||||||||
(6.0 | ) | (13.7 | ) | Income tax (benefit) expense | |||||||||
9.8 | 22.2 | Net (loss) income | |||||||||||
Pension and postretirement plans: | |||||||||||||
Plan curtailments and settlements (a) | (10.0 | ) | (31.8 | ) | |||||||||
Amortization of net actuarial loss (a) | 0.1 | 1.7 | |||||||||||
Amortization of prior service credits (a) | (5.9 | ) | (8.7 | ) | |||||||||
(15.8 | ) | (38.8 | ) | (Loss) income from continuing | |||||||||
operations before income taxes | |||||||||||||
6.1 | 14.7 | Income tax (benefit) expense | |||||||||||
(9.7 | ) | (24.1 | ) | Net (loss) income | |||||||||
Total reclassifications for the period, | $ | 0.1 | $ | (1.9 | ) | Net (loss) income | |||||||
net of tax | |||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic benefit (income) expense. See Note 7 for additional details. |
Income_Taxes
Income Taxes: | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes: | Income Taxes: | ||||||||||||
Income tax (benefit) expense was as follows for the years ended December 31: | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Federal | $ | 0.8 | $ | (27.0 | ) | $ | 6.2 | ||||||
State | (12.5 | ) | (2.5 | ) | 13 | ||||||||
(11.7 | ) | (29.5 | ) | 19.2 | |||||||||
Deferred: | |||||||||||||
Federal | (18.3 | ) | 104 | 84 | |||||||||
State | 4.9 | 30.8 | (5.0 | ) | |||||||||
(13.4 | ) | 134.8 | 79 | ||||||||||
Income tax (benefit) expense | $ | (25.1 | ) | $ | 105.3 | $ | 98.2 | ||||||
Deferred income tax (benefit) expense for all three years primarily resulted from temporary differences between depreciation and amortization expense for income tax purposes and depreciation and amortization expense recorded in the accompanying consolidated financial statements. Goodwill is not amortized for financial statement purposes in accordance with authoritative guidance on goodwill and other intangible assets. | |||||||||||||
11. Income Taxes, Continued: | |||||||||||||
Differences between the federal income tax statutory rates and effective income tax rates, which include both federal and state income taxes, were as follows for the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Increase (decrease) | |||||||||||||
State income taxes, net of federal benefit | 4.7 | 3.3 | 2 | ||||||||||
Adjust deferred taxes for state net operating loss carryforward | — | (0.1 | ) | — | |||||||||
Transaction costs | (8.0 | ) | — | — | |||||||||
Tax refunds | 7.3 | — | — | ||||||||||
Valuation allowance | (15.4 | ) | (0.3 | ) | — | ||||||||
Income tax reserves | (0.4 | ) | (5.4 | ) | — | ||||||||
Research and development credit | 12.1 | (2.2 | ) | — | |||||||||
Disallowed loss | (2.9 | ) | — | — | |||||||||
Tax credits | 2.2 | — | — | ||||||||||
Other items, net | 4.3 | 0.6 | 0.1 | ||||||||||
Effective income tax rate | 38.9 | % | 30.9 | % | 37.1 | % | |||||||
The significant components of the net deferred income tax liability (asset) were as follows at December 31: | |||||||||||||
(Millions) | 2014 | 2013 | |||||||||||
Property, plant and equipment | $ | 1,146.70 | $ | 1,278.40 | |||||||||
Goodwill and other intangible assets | 1,312.80 | 1,322.50 | |||||||||||
Operating loss and credit carryforward | (604.0 | ) | (677.8 | ) | |||||||||
Postretirement and other employee benefits | (121.8 | ) | (108.6 | ) | |||||||||
Unrealized holding loss and interest rate swaps | (5.3 | ) | (1.4 | ) | |||||||||
Deferred compensation | (5.7 | ) | (5.2 | ) | |||||||||
Bad debt | (32.1 | ) | (30.3 | ) | |||||||||
Deferred debt costs | (12.9 | ) | (17.7 | ) | |||||||||
Restricted stock | (8.5 | ) | (12.1 | ) | |||||||||
Other, net | 9.1 | (35.9 | ) | ||||||||||
1,678.30 | 1,711.90 | ||||||||||||
Valuation allowance | 94.9 | 84.9 | |||||||||||
Deferred income taxes, net | $ | 1,773.20 | $ | 1,796.80 | |||||||||
Deferred tax assets | $ | (898.0 | ) | $ | (930.8 | ) | |||||||
Deferred tax liabilities | 2,671.20 | 2,727.60 | |||||||||||
Deferred income taxes, net | $ | 1,773.20 | $ | 1,796.80 | |||||||||
At December 31, 2014 and 2013, we had federal net operating loss carryforwards of approximately $1,304.2 million and $1,545.6 million, respectively, which expire in varying amounts from 2022 through 2031. The loss carryforwards at December 31, 2014 were primarily losses acquired in conjunction with our mergers with Valor Communications Group, Inc. (“Valor”), NuVox, Iowa Telecom and PAETEC. The 2014 decrease is primarily associated with the amount utilized for the year. At December 31, 2014 and 2013, we had state net operating loss carryforwards of approximately $1,990.6 million and $2,001.2 million, respectively, which expire annually in varying amounts from 2015 through 2033. The loss carryforwards at December 31, 2014 were primarily losses acquired in conjunction with our mergers with Valor, CTC, D&E, Lexcom Inc. (“Lexcom”), NuVox, Iowa Telecom, Q-Comm and PAETEC. Federal and state tax rules limit the deductibility of loss carryforwards in years following an ownership change. As a result of these limitations or the expected lack of sufficient future taxable income, we believe that it is more likely than not that the benefit from certain federal and state loss carryforwards will not be realized prior to their expiration. | |||||||||||||
11. Income Taxes, Continued: | |||||||||||||
We establish valuation allowances when necessary to reduce deferred tax assets to amounts expected to be realized. Therefore, as of December 31, 2014 and 2013, we recorded valuation allowances of $94.9 million and $84.9 million, respectively, related to federal and state loss carryforwards which are expected to expire before they are utilized. The amount of federal tax credit carryforward at December 31, 2014 and 2013, was approximately $34.6 million and $22.6 million, respectively, which expire in varying amounts from 2031 through 2034. The amount of state tax credit carryforward at December 31, 2014 and 2013, was approximately $24.1 million and $22.2 million, respectively, which expire in varying amounts from 2015 through 2027. | |||||||||||||
We account for uncertainty in taxes in accordance with authoritative guidance. A reconciliation of the unrecognized tax benefits is as follows: | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 4.6 | $ | 18.3 | $ | 18.8 | |||||||
Additions based on tax positions related to current year | 2.3 | 2.7 | — | ||||||||||
Additions based on tax positions of prior years | — | 0.7 | — | ||||||||||
Reductions for tax positions of prior years | (0.1 | ) | (0.2 | ) | (0.5 | ) | |||||||
Reduction as a result of a lapse of the applicable statute of | (0.2 | ) | (16.9 | ) | — | ||||||||
limitations | |||||||||||||
Settlements | (1.0 | ) | — | — | |||||||||
Ending balance | $ | 5.6 | $ | 4.6 | $ | 18.3 | |||||||
We do not expect or anticipate a significant increase or decrease over the next twelve months in the unrecognized tax benefits reported above. The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate are $5.0 million, $3.4 million and $16.1 million (net of indirect benefits) for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Included in the balance at December 31, 2014, 2013 and 2012, are $0.6 million, $0.6 million and $0.8 million, respectively, of gross tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of the deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. These unrecognized tax benefits are included in other long-term liabilities in the accompanying consolidated balance sheets for the years ended December 31, 2014 and 2013. | |||||||||||||
We file income tax returns in the U.S. federal jurisdiction and various states. With few exceptions, we are no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2011. However, due to acquired net operating losses, tax authorities have the ability to adjust those net operating losses related to closed years. We have identified Arkansas, California, Florida, Georgia, Illinois, Iowa, Kentucky, Nebraska, New York, North Carolina, Pennsylvania, Texas and Virginia as “major” state taxing jurisdictions. | |||||||||||||
We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. During the years ended December 31, 2014, 2013 and 2012, we recognized approximately $0.1 million, $0.1 million and $0.6 million in interest and penalties, respectively. Furthermore, we had approximately $0.1 million, $0.1 million and $3.1 million of interest and penalties accrued as of December 31, 2014, 2013 and 2012, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies: | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies: | Commitments and Contingencies: | |||
Lease Commitments | ||||
Minimum rental commitments for all non-cancellable operating leases, consisting principally of leases for network facilities, real estate, office space and office equipment were as follows as of December 31, 2014: | ||||
Year | (Millions) | |||
2015 | $ | 120.4 | ||
2016 | 99.3 | |||
2017 | 85 | |||
2018 | 70.5 | |||
2019 | 59.6 | |||
Thereafter | 220.8 | |||
Total | $ | 655.6 | ||
Rental expense totaled $134.5 million, $120.2 million and $108.2 million in 2014, 2013 and 2012, respectively. | ||||
Litigation | ||||
We are party to various legal proceedings, including certain lawsuits claiming infringement of patents relating to various aspects of our business. In certain of the patent matters, other industry participants are also parties, and we may have claims of indemnification against vendors/suppliers. The ultimate resolution of these legal proceedings cannot be determined at this time. However, based on current circumstances, management does not believe such proceedings, individually or in the aggregate, will have a material adverse effect on the future consolidated results of our income, cash flows or financial condition. | ||||
In addition, management is currently not aware of any environmental matters that, individually or in the aggregate, would have a material adverse effect on the consolidated financial condition or our results of operations. |
Supplemental_Guarantor_Informa
Supplemental Guarantor Information: | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||
Supplemental Guarantor Information: | Supplemental Guarantor Information: | ||||||||||||||||||||||||
Debentures and notes, without collateral, issued by Windstream Corporation | |||||||||||||||||||||||||
In connection with the issuance of the 7.875 percent senior notes due November 1, 2017, the 8.125 percent senior notes due September 1, 2018, the 7.750 percent senior notes due October 15, 2020, the 7.750 percent senior notes due October 1, 2021, the 7.500 percent senior notes due June 1, 2022, the 7.500 percent senior notes due April 1, 2023 and the 6.375 percent senior notes due August 1, 2023 (“the guaranteed notes”), certain of Windstream Corp.’s wholly-owned subsidiaries (the “Guarantors”), provide guarantees of those debentures. These guarantees are full and unconditional, subject to certain customary release provisions, as well as joint and several. All personal property assets and related operations of the Guarantors are pledged as collateral on the senior secured credit facility of Windstream Corp. Certain Guarantors may be subject to restrictions on their ability to distribute earnings to Windstream Corp. The remaining subsidiaries of Windstream Corp. (the “Non-Guarantors”) are not guarantors of the guaranteed notes. Following the acquisitions of acquired businesses, the guaranteed notes were amended to include certain subsidiaries of the acquired businesses as guarantors. Windstream Holdings is not a guarantor of any Windstream Corp. debt instruments. | |||||||||||||||||||||||||
Upon completing an internal legal entity restructuring, as of January 1, 2014, certain of Windstream Corp.’s guarantor and non-guarantor subsidiaries were merged with and into Windstream Corp. Prior period information has been revised to reflect the change in our legal entity structure. | |||||||||||||||||||||||||
The following information presents condensed consolidating and combined statements of comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012, condensed consolidating balance sheets as of December 31, 2014 and 2013, and condensed consolidating and combined statements of cash flows for the years ended December 31, 2014, 2013 and 2012 of Windstream Corp., the Guarantors and the Non-Guarantors. Investments consist of investments in net assets of subsidiaries held by Windstream Corp. and other subsidiaries, and have been presented using the equity method of accounting. | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||||||
Service revenues | $ | — | $ | 1,029.10 | $ | 4,642.50 | $ | (24.0 | ) | $ | 5,647.60 | ||||||||||||||
Product sales | — | 41.1 | 140.8 | — | 181.9 | ||||||||||||||||||||
Total revenues and sales | — | 1,070.20 | 4,783.30 | (24.0 | ) | 5,829.50 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of services | — | 392.3 | 2,346.60 | (19.6 | ) | 2,719.30 | |||||||||||||||||||
Cost of products sold | — | 39.8 | 116.8 | — | 156.6 | ||||||||||||||||||||
Selling, general and administrative | — | 99.3 | 886.6 | (4.4 | ) | 981.5 | |||||||||||||||||||
Depreciation and amortization | 21.9 | 300 | 1,064.50 | — | 1,386.40 | ||||||||||||||||||||
Merger and integration costs | — | — | 40.4 | — | 40.4 | ||||||||||||||||||||
Restructuring charges | — | 6.1 | 29.8 | — | 35.9 | ||||||||||||||||||||
Total costs and expenses | 21.9 | 837.5 | 4,484.70 | (24.0 | ) | 5,320.10 | |||||||||||||||||||
Operating (loss) income | (21.9 | ) | 232.7 | 298.6 | — | 509.4 | |||||||||||||||||||
Earnings from consolidated subsidiaries | 217.3 | 30.6 | 3.7 | (251.6 | ) | — | |||||||||||||||||||
Other (expense) income, net | (0.2 | ) | 162.9 | (162.6 | ) | — | 0.1 | ||||||||||||||||||
Intercompany interest income (expense) | 127.2 | (53.7 | ) | (73.5 | ) | — | — | ||||||||||||||||||
Interest expense | (523.9 | ) | (6.4 | ) | (41.5 | ) | — | (571.8 | ) | ||||||||||||||||
(Loss) income before income taxes | (201.5 | ) | 366.1 | 24.7 | (251.6 | ) | (62.3 | ) | |||||||||||||||||
Income tax (benefit) expense | (163.4 | ) | 126 | 13.2 | — | (24.2 | ) | ||||||||||||||||||
Net (loss) income | $ | (38.1 | ) | $ | 240.1 | $ | 11.5 | $ | (251.6 | ) | $ | (38.1 | ) | ||||||||||||
Comprehensive (loss) income | $ | (54.5 | ) | $ | 240.1 | $ | 11.5 | $ | (251.6 | ) | $ | (54.5 | ) | ||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||||||
Service revenues | $ | — | $ | 1,065.60 | $ | 4,740.30 | $ | (30.4 | ) | $ | 5,775.50 | ||||||||||||||
Product sales | — | 54.4 | 158.2 | — | 212.6 | ||||||||||||||||||||
Total revenues and sales | — | 1,120.00 | 4,898.50 | (30.4 | ) | 5,988.10 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of services | — | 339.6 | 2,178.10 | (25.6 | ) | 2,492.10 | |||||||||||||||||||
Cost of products sold | — | 53.7 | 130.2 | — | 183.9 | ||||||||||||||||||||
Selling, general and administrative | — | 77.8 | 849.9 | (4.8 | ) | 922.9 | |||||||||||||||||||
Depreciation and amortization | 25 | 292.2 | 1,023.70 | — | 1,340.90 | ||||||||||||||||||||
Merger and integration costs | — | — | 30.2 | — | 30.2 | ||||||||||||||||||||
Restructuring charges | — | 1.6 | 7 | — | 8.6 | ||||||||||||||||||||
Total costs and expenses | 25 | 764.9 | 4,219.10 | (30.4 | ) | 4,978.60 | |||||||||||||||||||
Operating (loss) income | (25.0 | ) | 355.1 | 679.4 | — | 1,009.50 | |||||||||||||||||||
Earnings from consolidated subsidiaries | 526.1 | 53.3 | 5.6 | (585.0 | ) | — | |||||||||||||||||||
Other income (expense), net | 2.1 | 166.1 | (180.7 | ) | — | (12.5 | ) | ||||||||||||||||||
Loss on early extinguishment of debt | (17.2 | ) | — | (11.3 | ) | — | (28.5 | ) | |||||||||||||||||
Intercompany interest income (expense) | 134.5 | (61.1 | ) | (73.4 | ) | — | — | ||||||||||||||||||
Interest expense | (584.6 | ) | (5.8 | ) | (37.3 | ) | — | (627.7 | ) | ||||||||||||||||
Income from continuing operations before | 35.9 | 507.6 | 382.3 | (585.0 | ) | 340.8 | |||||||||||||||||||
income taxes | |||||||||||||||||||||||||
Income tax (benefit) expense | (205.4 | ) | 169.3 | 141.6 | — | 105.5 | |||||||||||||||||||
Income from continuing operations | 241.3 | 338.3 | 240.7 | (585.0 | ) | 235.3 | |||||||||||||||||||
Discontinued operations | — | — | 6 | — | 6 | ||||||||||||||||||||
Net income | $ | 241.3 | $ | 338.3 | $ | 246.7 | $ | (585.0 | ) | $ | 241.3 | ||||||||||||||
Comprehensive income | $ | 263.4 | $ | 338.3 | $ | 246.7 | $ | (585.0 | ) | $ | 263.4 | ||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||||||
Service revenues | $ | — | $ | 1,095.30 | $ | 4,838.40 | $ | (25.4 | ) | $ | 5,908.30 | ||||||||||||||
Product sales | — | 73 | 158.2 | — | 231.2 | ||||||||||||||||||||
Total revenues and sales | — | 1,168.30 | 4,996.60 | (25.4 | ) | 6,139.50 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of services | — | 377.2 | 2,332.10 | (17.1 | ) | 2,692.20 | |||||||||||||||||||
Cost of products sold | — | 71.9 | 134.7 | — | 206.6 | ||||||||||||||||||||
Selling, general and administrative | — | 102.1 | 873.5 | (8.3 | ) | 967.3 | |||||||||||||||||||
Depreciation and amortization | 28.8 | 286.2 | 981.9 | — | 1,296.90 | ||||||||||||||||||||
Merger and integration costs | — | — | 65.4 | — | 65.4 | ||||||||||||||||||||
Restructuring charges | — | 4.4 | 22.8 | — | 27.2 | ||||||||||||||||||||
Total costs and expenses | 28.8 | 841.8 | 4,410.40 | (25.4 | ) | 5,255.60 | |||||||||||||||||||
Operating (loss) income | (28.8 | ) | 326.5 | 586.2 | — | 883.9 | |||||||||||||||||||
Earnings from consolidated subsidiaries | 432 | 41.8 | 4.6 | (478.4 | ) | — | |||||||||||||||||||
Other (expense) income, net | (4.4 | ) | 182.3 | (173.3 | ) | — | 4.6 | ||||||||||||||||||
Gain on early extinguishment of debt | — | — | 1.9 | — | 1.9 | ||||||||||||||||||||
Intercompany interest income (expense) | 135.3 | (66.0 | ) | (69.3 | ) | — | — | ||||||||||||||||||
Interest expense | (540.9 | ) | (5.4 | ) | (78.8 | ) | — | (625.1 | ) | ||||||||||||||||
(Loss) income from continuing operations | (6.8 | ) | 479.2 | 271.3 | (478.4 | ) | 265.3 | ||||||||||||||||||
before income taxes | |||||||||||||||||||||||||
Income tax (benefit) expense | (174.8 | ) | 163.9 | 109.1 | — | 98.2 | |||||||||||||||||||
Income from continuing operations | 168 | 315.3 | 162.2 | (478.4 | ) | 167.1 | |||||||||||||||||||
Discontinued operations | — | — | 0.9 | — | 0.9 | ||||||||||||||||||||
Net income | $ | 168 | $ | 315.3 | $ | 163.1 | $ | (478.4 | ) | $ | 168 | ||||||||||||||
Comprehensive income | $ | 172.5 | $ | 315.3 | $ | 163.1 | $ | (478.4 | ) | $ | 172.5 | ||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2.1 | $ | 51.7 | $ | (26.0 | ) | $ | 27.8 | ||||||||||||||
Restricted cash | 6.7 | — | — | — | 6.7 | ||||||||||||||||||||
Accounts receivable (less allowance for doubtful | — | 136.5 | 499 | — | 635.5 | ||||||||||||||||||||
accounts of $43.4) | |||||||||||||||||||||||||
Notes receivable - affiliate | — | 4.8 | — | (4.8 | ) | — | |||||||||||||||||||
Affiliates receivable, net | — | 1,057.70 | 2,066.90 | (3,124.6 | ) | — | |||||||||||||||||||
Inventories | — | 36.9 | 26.8 | — | 63.7 | ||||||||||||||||||||
Deferred income taxes | 67.4 | 10.5 | 27.5 | — | 105.4 | ||||||||||||||||||||
Prepaid expenses and other | 35.5 | 20.4 | 108.7 | — | 164.6 | ||||||||||||||||||||
Total current assets | 109.6 | 1,268.90 | 2,780.60 | (3,155.4 | ) | 1,003.70 | |||||||||||||||||||
Investments in consolidated subsidiaries | 10,001.30 | 965.6 | 255.6 | (11,222.5 | ) | — | |||||||||||||||||||
Notes receivable - affiliate | — | 317.7 | — | (317.7 | ) | — | |||||||||||||||||||
Goodwill | 1,649.50 | 825.6 | 1,877.70 | — | 4,352.80 | ||||||||||||||||||||
Other intangibles, net | 590.7 | 355.2 | 818.1 | — | 1,764.00 | ||||||||||||||||||||
Net property, plant and equipment | 9.8 | 1,269.40 | 4,133.10 | — | 5,412.30 | ||||||||||||||||||||
Other assets | 104.2 | 17.1 | 59.3 | — | 180.6 | ||||||||||||||||||||
Total Assets | $ | 12,465.10 | $ | 5,019.50 | $ | 9,924.40 | $ | (14,695.6 | ) | $ | 12,713.40 | ||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||||
Current maturities of long-term debt | $ | 717.4 | $ | — | $ | 0.1 | $ | — | $ | 717.5 | |||||||||||||||
Current portion of interest rate swaps | 28.5 | — | — | — | 28.5 | ||||||||||||||||||||
Accounts payable | 2.1 | 86.9 | 314.3 | — | 403.3 | ||||||||||||||||||||
Affiliates payable, net | 3,277.00 | — | — | (3,124.6 | ) | 152.4 | |||||||||||||||||||
Notes payable - affiliate | — | — | 4.8 | (4.8 | ) | — | |||||||||||||||||||
Advance payments and customer deposits | — | 16.6 | 198.1 | — | 214.7 | ||||||||||||||||||||
Accrued taxes | 0.2 | 23.8 | 71.2 | — | 95.2 | ||||||||||||||||||||
Accrued interest | 94.3 | 2.1 | 6.1 | — | 102.5 | ||||||||||||||||||||
Other current liabilities | 32.3 | 18 | 278.6 | — | 328.9 | ||||||||||||||||||||
Total current liabilities | 4,151.80 | 147.4 | 873.2 | (3,129.4 | ) | 2,043.00 | |||||||||||||||||||
Long-term debt | 7,363.40 | 99.6 | 471.2 | — | 7,934.20 | ||||||||||||||||||||
Notes payable - affiliate | — | — | 317.7 | (317.7 | ) | — | |||||||||||||||||||
Deferred income taxes | 658.6 | 418.8 | 801.2 | — | 1,878.60 | ||||||||||||||||||||
Other liabilities | 66.5 | 45.7 | 520.6 | — | 632.8 | ||||||||||||||||||||
Total liabilities | 12,240.30 | 711.5 | 2,983.90 | (3,447.1 | ) | 12,488.60 | |||||||||||||||||||
Commitments and Contingencies (See Note 12) | |||||||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||||||
Common stock | — | 39.4 | 81.9 | (121.3 | ) | — | |||||||||||||||||||
Additional paid-in capital | 212.7 | 3,794.90 | 4,002.00 | (7,796.9 | ) | 212.7 | |||||||||||||||||||
Accumulated other comprehensive income | 12.1 | — | 14.5 | (14.5 | ) | 12.1 | |||||||||||||||||||
Retained earnings | — | 473.7 | 2,842.10 | (3,315.8 | ) | — | |||||||||||||||||||
Total shareholders’ equity | 224.8 | 4,308.00 | 6,940.50 | (11,248.5 | ) | 224.8 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,465.10 | $ | 5,019.50 | $ | 9,924.40 | $ | (14,695.6 | ) | $ | 12,713.40 | ||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 13.7 | $ | 0.7 | $ | 33.8 | $ | — | $ | 48.2 | |||||||||||||||
Restricted cash | 9.7 | — | — | — | 9.7 | ||||||||||||||||||||
Accounts receivable (less allowance for doubtful | — | 117.4 | 517.9 | — | 635.3 | ||||||||||||||||||||
accounts of $40.0) | |||||||||||||||||||||||||
Notes receivable - affiliate | — | 4.8 | — | (4.8 | ) | — | |||||||||||||||||||
Affiliates receivable, net | — | 743.7 | 1,864.50 | (2,608.2 | ) | — | |||||||||||||||||||
Inventories | — | 49.8 | 17.9 | — | 67.7 | ||||||||||||||||||||
Deferred income taxes | 202.1 | 10.5 | 28.9 | — | 241.5 | ||||||||||||||||||||
Prepaid expenses and other | 35.3 | 20.8 | 126.3 | — | 182.4 | ||||||||||||||||||||
Total current assets | 260.8 | 947.7 | 2,589.30 | (2,613.0 | ) | 1,184.80 | |||||||||||||||||||
Investments in consolidated subsidiaries | 9,997.50 | 936.7 | 291.1 | (11,225.3 | ) | — | |||||||||||||||||||
Notes receivable - affiliate | — | 321.3 | — | (321.3 | ) | — | |||||||||||||||||||
Goodwill | 1,649.50 | 825.6 | 1,856.30 | — | 4,331.40 | ||||||||||||||||||||
Other intangibles, net | 645 | 397.6 | 977.5 | — | 2,020.10 | ||||||||||||||||||||
Net property, plant and equipment | 10.2 | 1,350.90 | 4,341.50 | — | 5,702.60 | ||||||||||||||||||||
Other assets | 120.3 | 14.8 | 70.6 | — | 205.7 | ||||||||||||||||||||
Total Assets | $ | 12,683.30 | $ | 4,794.60 | $ | 10,126.30 | $ | (14,159.6 | ) | $ | 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 | 5 | 54.8 | 326.1 | — | 385.9 | ||||||||||||||||||||
Affiliates payable, net | 2,758.90 | — | — | (2,608.2 | ) | 150.7 | |||||||||||||||||||
Notes payable - affiliate | — | — | 4.8 | (4.8 | ) | — | |||||||||||||||||||
Advance payments and customer deposits | — | 17.4 | 206.1 | — | 223.5 | ||||||||||||||||||||
Accrued taxes | 0.2 | 33.8 | 70.3 | — | 104.3 | ||||||||||||||||||||
Accrued interest | 95.4 | 1.8 | 6.3 | — | 103.5 | ||||||||||||||||||||
Other current liabilities | 38.1 | 17.2 | 307.1 | — | 362.4 | ||||||||||||||||||||
Total current liabilities | 3,012.50 | 125 | 920.8 | (2,613.0 | ) | 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 | 724.7 | 421.7 | 891.9 | — | 2,038.30 | ||||||||||||||||||||
Other liabilities | 60.7 | 28.8 | 408.8 | — | 498.3 | ||||||||||||||||||||
Total liabilities | 11,842.80 | 675.1 | 3,020.50 | (2,934.3 | ) | 12,604.10 | |||||||||||||||||||
Commitments and Contingencies (See Note 12) | |||||||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||||||
Common stock | — | 39.4 | 81.9 | (121.3 | ) | — | |||||||||||||||||||
Additional paid-in capital | 812 | 3,657.50 | 3,978.80 | (7,636.3 | ) | 812 | |||||||||||||||||||
Accumulated other comprehensive income | 28.5 | — | 26.3 | (26.3 | ) | 28.5 | |||||||||||||||||||
Retained earnings | — | 422.6 | 3,018.80 | (3,441.4 | ) | — | |||||||||||||||||||
Total shareholders’ equity | 840.5 | 4,119.50 | 7,105.80 | (11,225.3 | ) | 840.5 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,683.30 | $ | 4,794.60 | $ | 10,126.30 | $ | (14,159.6 | ) | $ | 13,444.60 | ||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||||||
Net cash (used in) provided from operations | $ | (129.2 | ) | $ | 500.8 | $ | 1,097.10 | $ | — | $ | 1,468.70 | ||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (1.8 | ) | (112.5 | ) | (672.2 | ) | — | (786.5 | ) | ||||||||||||||||
Broadband network expansion funded by | — | (0.3 | ) | (13.0 | ) | — | (13.3 | ) | |||||||||||||||||
stimulus grants | |||||||||||||||||||||||||
Changes in restricted cash | 3 | — | — | — | 3 | ||||||||||||||||||||
Grant funds received for broadband stimulus | 33.2 | — | — | — | 33.2 | ||||||||||||||||||||
projects | |||||||||||||||||||||||||
Grant funds received from Connect America Fund | — | 9.4 | 16.6 | — | 26 | ||||||||||||||||||||
Network expansion funded by Connect America | — | (1.3 | ) | (11.5 | ) | — | (12.8 | ) | |||||||||||||||||
Fund | |||||||||||||||||||||||||
Acquisition of a business | (22.6 | ) | — | — | — | (22.6 | ) | ||||||||||||||||||
Other, net | — | — | 3.9 | — | 3.9 | ||||||||||||||||||||
Net cash provided from (used in) | 11.8 | (104.7 | ) | (676.2 | ) | — | (769.1 | ) | |||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Distributions to Windstream Holdings, Inc. | (603.6 | ) | — | — | — | (603.6 | ) | ||||||||||||||||||
Repayments of debt and swaps | (1,394.4 | ) | — | (1.0 | ) | — | (1,395.4 | ) | |||||||||||||||||
Proceeds of debt issuance | 1,315.00 | — | — | — | 1,315.00 | ||||||||||||||||||||
Intercompany transactions, net | 795.9 | (398.3 | ) | (371.6 | ) | (26.0 | ) | — | |||||||||||||||||
Payments under capital lease obligations | — | — | (26.8 | ) | — | (26.8 | ) | ||||||||||||||||||
Other, net | (9.2 | ) | 3.6 | (3.6 | ) | — | (9.2 | ) | |||||||||||||||||
Net cash provided from (used in) financing | 103.7 | (394.7 | ) | (403.0 | ) | (26.0 | ) | (720.0 | ) | ||||||||||||||||
activities | |||||||||||||||||||||||||
(Decrease) increase in cash and cash equivalents | (13.7 | ) | 1.4 | 17.9 | (26.0 | ) | (20.4 | ) | |||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Beginning of period | 13.7 | 0.7 | 33.8 | — | 48.2 | ||||||||||||||||||||
End of period | $ | — | $ | 2.1 | $ | 51.7 | $ | (26.0 | ) | $ | 27.8 | ||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||||||
Net cash (used in) provided from operations | $ | (186.2 | ) | $ | 613.9 | $ | 1,092.10 | $ | — | $ | 1,519.80 | ||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (2.0 | ) | (134.6 | ) | (704.4 | ) | — | (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 stimulus | 68 | — | — | — | 68 | ||||||||||||||||||||
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) | 81.3 | (117.6 | ) | (671.3 | ) | — | (707.6 | ) | |||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Dividends paid to shareholders | (444.6 | ) | — | — | — | (444.6 | ) | ||||||||||||||||||
Distributions to Windstream Holdings, Inc. | (149.4 | ) | — | — | — | (149.4 | ) | ||||||||||||||||||
Repayments 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 | 273.1 | (500.3 | ) | 227.2 | — | — | |||||||||||||||||||
Payments under capital lease obligations | — | — | (23.9 | ) | — | (23.9 | ) | ||||||||||||||||||
Other, net | (6.7 | ) | 3.6 | (3.6 | ) | — | (6.7 | ) | |||||||||||||||||
Net cash provided from (used in) financing | 61.1 | (496.7 | ) | (460.4 | ) | — | (896.0 | ) | |||||||||||||||||
activities | |||||||||||||||||||||||||
Decrease in cash and cash equivalents | (43.8 | ) | (0.4 | ) | (39.6 | ) | — | (83.8 | ) | ||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Beginning of period | 57.5 | 1.1 | 73.4 | — | 132 | ||||||||||||||||||||
End of period | $ | 13.7 | $ | 0.7 | $ | 33.8 | $ | — | $ | 48.2 | |||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||||||
Net cash provided from operations | $ | 170.4 | $ | 475.2 | $ | 1,132.00 | $ | — | $ | 1,777.60 | |||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (0.7 | ) | (175.5 | ) | (925.0 | ) | — | (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 stimulus | 45.7 | — | — | — | 45.7 | ||||||||||||||||||||
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) investing | 34.6 | (141.9 | ) | (994.4 | ) | — | (1,101.7 | ) | |||||||||||||||||
activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Dividends paid to shareholders | (588.0 | ) | — | — | — | (588.0 | ) | ||||||||||||||||||
Repayments 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 | 177.9 | (336.9 | ) | 159 | — | — | |||||||||||||||||||
Payments under capital lease obligations | — | (0.1 | ) | (19.9 | ) | — | (20.0 | ) | |||||||||||||||||
Other, net | 0.7 | 3.6 | (3.6 | ) | — | 0.7 | |||||||||||||||||||
Net cash used in financing activities | (262.9 | ) | (333.4 | ) | (174.6 | ) | — | (770.9 | ) | ||||||||||||||||
Decrease in cash and cash equivalents | (57.9 | ) | (0.1 | ) | (37.0 | ) | — | (95.0 | ) | ||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Beginning of period | 115.4 | 1.2 | 110.4 | — | 227 | ||||||||||||||||||||
End of period | $ | 57.5 | $ | 1.1 | $ | 73.4 | $ | — | $ | 132 | |||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Debentures and notes, issued by PAETEC Holding Corporation | |||||||||||||||||||||||||
In connection with the acquisition of PAETEC on November 30, 2011, Windstream Corp. acquired the PAETEC 2018 Notes (“the guaranteed notes”). Windstream Corp. and all former wholly-owned subsidiaries of PAETEC (the “Guarantors”) provide guarantees of those debentures. These guarantees are full and unconditional, subject to certain customary release provisions, as well as joint and several. Certain Guarantors may be subject to restrictions on their ability to distribute earnings to Windstream Corp.. The remaining subsidiaries (the “Non-Guarantors”) of Windstream Corp. are not guarantors of these guaranteed notes. | |||||||||||||||||||||||||
Upon completing an internal legal entity restructuring, as of January 1, 2014, certain of Windstream Corp.’s guarantor and non-guarantor subsidiaries were merged with and into Windstream Corp. Prior period information has been revised to reflect the change in our legal entity structure. | |||||||||||||||||||||||||
The following information presents condensed consolidating and combined statements of comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012, condensed consolidating balance sheets as of December 31, 2014 and 2013, and condensed consolidating and combined statements of cash flows for the years ended December 31, 2014, 2013 and 2012 of Windstream Corp., the Guarantors and the Non-Guarantors. Investments consist of investments in net assets of subsidiaries held by Windstream Corp. and other subsidiaries, and have been presented using the equity method of accounting. | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | PAETEC Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||||||
Service revenues | $ | — | $ | — | $ | 1,948.60 | $ | 3,702.90 | $ | (3.9 | ) | $ | 5,647.60 | ||||||||||||
Product sales | — | — | 124.5 | 57.9 | (0.5 | ) | 181.9 | ||||||||||||||||||
Total revenues and sales | — | — | 2,073.10 | 3,760.80 | (4.4 | ) | 5,829.50 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of services | — | — | 1,245.80 | 1,476.60 | (3.1 | ) | 2,719.30 | ||||||||||||||||||
Cost of products sold | — | — | 102.6 | 54.4 | (0.4 | ) | 156.6 | ||||||||||||||||||
Selling, general and administrative | — | — | 541.2 | 441.1 | (0.8 | ) | 981.5 | ||||||||||||||||||
Depreciation and amortization | 21.9 | — | 423.3 | 941.2 | — | 1,386.40 | |||||||||||||||||||
Merger and integration costs | — | — | — | 40.4 | — | 40.4 | |||||||||||||||||||
Restructuring charges | — | — | 12.8 | 23.1 | — | 35.9 | |||||||||||||||||||
Total costs and expenses | 21.9 | — | 2,325.70 | 2,976.80 | (4.3 | ) | 5,320.10 | ||||||||||||||||||
Operating (loss) income | (21.9 | ) | — | (252.6 | ) | 784 | (0.1 | ) | 509.4 | ||||||||||||||||
Earnings (losses) from consolidated | 217.3 | (138.6 | ) | 0.1 | 0.6 | (79.4 | ) | — | |||||||||||||||||
subsidiaries | |||||||||||||||||||||||||
Other (expense) income, net | (0.2 | ) | — | 0.2 | 0.1 | — | 0.1 | ||||||||||||||||||
Intercompany interest income (expense) | 127.2 | — | — | (127.2 | ) | — | — | ||||||||||||||||||
Interest (expense) income | (523.9 | ) | (38.4 | ) | 0.3 | (9.8 | ) | — | (571.8 | ) | |||||||||||||||
(Loss) income before income taxes | (201.5 | ) | (177.0 | ) | (252.0 | ) | 647.7 | (79.5 | ) | (62.3 | ) | ||||||||||||||
Income tax (benefit) expense | (163.4 | ) | (16.6 | ) | (91.9 | ) | 247.7 | — | (24.2 | ) | |||||||||||||||
Net (loss) income | $ | (38.1 | ) | $ | (160.4 | ) | $ | (160.1 | ) | $ | 400 | $ | (79.5 | ) | $ | (38.1 | ) | ||||||||
Comprehensive (loss) income | $ | (54.5 | ) | $ | (160.4 | ) | $ | (160.1 | ) | $ | 400 | $ | (79.5 | ) | $ | (54.5 | ) | ||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
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 | 25 | — | 396.7 | 919.2 | — | 1,340.90 | |||||||||||||||||||
Merger and integration costs | — | — | (0.4 | ) | 30.6 | — | 30.2 | ||||||||||||||||||
Restructuring charges | — | — | 3.4 | 5.2 | — | 8.6 | |||||||||||||||||||
Total costs and expenses | 25 | — | 2,198.40 | 2,763.00 | (7.8 | ) | 4,978.60 | ||||||||||||||||||
Operating (loss) income | (25.0 | ) | — | (117.5 | ) | 1,153.40 | (1.4 | ) | 1,009.50 | ||||||||||||||||
Earnings (losses) from consolidated | 526.1 | (66.5 | ) | 0.5 | 0.7 | (460.8 | ) | — | |||||||||||||||||
subsidiaries | |||||||||||||||||||||||||
Other income (expense), net | 2.1 | — | 0.9 | (15.5 | ) | — | (12.5 | ) | |||||||||||||||||
Loss on early extinguishment of debt | (17.2 | ) | (11.3 | ) | — | — | — | (28.5 | ) | ||||||||||||||||
Intercompany interest income (expense) | 134.5 | — | — | (134.5 | ) | — | — | ||||||||||||||||||
Interest (expense) income | (584.6 | ) | (40.9 | ) | 0.2 | (2.4 | ) | — | (627.7 | ) | |||||||||||||||
Income (loss) from continuing operations | 35.9 | (118.7 | ) | (115.9 | ) | 1,001.70 | (462.2 | ) | 340.8 | ||||||||||||||||
before income taxes | |||||||||||||||||||||||||
Income tax (benefit) expense | (205.4 | ) | (19.3 | ) | (36.9 | ) | 366.8 | 0.3 | 105.5 | ||||||||||||||||
Income (loss) from continuing operations | 241.3 | (99.4 | ) | (79.0 | ) | 634.9 | (462.5 | ) | 235.3 | ||||||||||||||||
Discontinued operations | — | — | 6 | — | — | 6 | |||||||||||||||||||
Net income (loss) | $ | 241.3 | $ | (99.4 | ) | $ | (73.0 | ) | $ | 634.9 | $ | (462.5 | ) | $ | 241.3 | ||||||||||
Comprehensive income (loss) | $ | 263.4 | $ | (99.4 | ) | $ | (73.0 | ) | $ | 634.9 | $ | (462.5 | ) | $ | 263.4 | ||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
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 | 28.8 | — | 370.9 | 897.2 | — | 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 | 28.8 | — | 2,116.10 | 3,115.30 | (4.6 | ) | 5,255.60 | ||||||||||||||||||
Operating (loss) income | (28.8 | ) | — | (18.2 | ) | 934.3 | (3.4 | ) | 883.9 | ||||||||||||||||
Earnings (losses) from consolidated | 432 | (2.3 | ) | 0.6 | (0.3 | ) | (430.0 | ) | — | ||||||||||||||||
subsidiaries | |||||||||||||||||||||||||
Other (expense) income, net | (4.4 | ) | — | 0.3 | 8.7 | — | 4.6 | ||||||||||||||||||
Gain on early extinguishment of debt | — | 1.9 | — | — | — | 1.9 | |||||||||||||||||||
Intercompany interest income (expense) | 135.3 | — | — | (135.3 | ) | — | — | ||||||||||||||||||
Interest (expense) income | (540.9 | ) | (84.2 | ) | (1.2 | ) | 1.2 | — | (625.1 | ) | |||||||||||||||
(Loss) income from continuing operations | (6.8 | ) | (84.6 | ) | (18.5 | ) | 808.6 | (433.4 | ) | 265.3 | |||||||||||||||
before income taxes | |||||||||||||||||||||||||
Income tax (benefit) expense | (174.8 | ) | (30.8 | ) | (7.7 | ) | 312.8 | (1.3 | ) | 98.2 | |||||||||||||||
Income (loss) from continuing operations | 168 | (53.8 | ) | (10.8 | ) | 495.8 | (432.1 | ) | 167.1 | ||||||||||||||||
Discontinued operations | — | — | 0.9 | — | — | 0.9 | |||||||||||||||||||
Net income (loss) | $ | 168 | $ | (53.8 | ) | $ | (9.9 | ) | $ | 495.8 | $ | (432.1 | ) | $ | 168 | ||||||||||
Comprehensive income (loss) | $ | 172.5 | $ | (53.8 | ) | $ | (9.9 | ) | $ | 495.8 | $ | (432.1 | ) | $ | 172.5 | ||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | PAETEC Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 4.6 | $ | 49.2 | $ | (26.0 | ) | $ | 27.8 | ||||||||||||
Restricted cash | 6.7 | — | — | — | — | 6.7 | |||||||||||||||||||
Accounts receivable (less allowance for | — | — | 286.1 | 350.5 | (1.1 | ) | 635.5 | ||||||||||||||||||
doubtful accounts of $43.4) | |||||||||||||||||||||||||
Affiliates receivable, net | — | 346.6 | — | 4,187.70 | (4,534.3 | ) | — | ||||||||||||||||||
Inventories | — | — | 19.4 | 44.3 | — | 63.7 | |||||||||||||||||||
Deferred income taxes | 67.4 | — | — | 76.5 | (38.5 | ) | 105.4 | ||||||||||||||||||
Prepaid expenses and other | 35.5 | — | 30.9 | 96.5 | 1.7 | 164.6 | |||||||||||||||||||
Total current assets | 109.6 | 346.6 | 341 | 4,804.70 | (4,598.2 | ) | 1,003.70 | ||||||||||||||||||
Investments in consolidated subsidiaries | 10,001.30 | — | 0.9 | — | (10,002.2 | ) | — | ||||||||||||||||||
Goodwill | 1,649.50 | 643.8 | — | 2,059.50 | — | 4,352.80 | |||||||||||||||||||
Other intangibles, net | 590.7 | — | 413.6 | 759.7 | — | 1,764.00 | |||||||||||||||||||
Net property, plant and equipment | 9.8 | — | 697.1 | 4,705.40 | — | 5,412.30 | |||||||||||||||||||
Deferred income taxes | — | 219 | 63.7 | — | (282.7 | ) | — | ||||||||||||||||||
Other assets | 104.2 | — | 16.8 | 59.6 | — | 180.6 | |||||||||||||||||||
Total Assets | $ | 12,465.10 | $ | 1,209.40 | $ | 1,533.10 | $ | 12,388.90 | $ | (14,883.1 | ) | $ | 12,713.40 | ||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||||
Current maturities of long-term debt | $ | 717.4 | $ | — | $ | — | $ | 0.1 | $ | — | $ | 717.5 | |||||||||||||
Current portion of interest rate swaps | 28.5 | — | — | — | — | 28.5 | |||||||||||||||||||
Accounts payable | 2.1 | — | 101.9 | 299.3 | — | 403.3 | |||||||||||||||||||
Affiliates payable, net | 3,277.00 | — | 1,430.40 | — | (4,555.0 | ) | 152.4 | ||||||||||||||||||
Advance payments and customer deposits | — | — | 78.5 | 136.2 | — | 214.7 | |||||||||||||||||||
Accrued taxes | 0.2 | — | 25.2 | 69.4 | 0.4 | 95.2 | |||||||||||||||||||
Accrued interest | 94.3 | 3.7 | 1.8 | 2.7 | — | 102.5 | |||||||||||||||||||
Other current liabilities | 32.3 | 4.9 | 83 | 248.3 | (39.6 | ) | 328.9 | ||||||||||||||||||
Total current liabilities | 4,151.80 | 8.6 | 1,720.80 | 756 | (4,594.2 | ) | 2,043.00 | ||||||||||||||||||
Long-term debt | 7,363.40 | 469.4 | — | 101.4 | — | 7,934.20 | |||||||||||||||||||
Deferred income taxes | 658.6 | — | — | 1,502.70 | (282.7 | ) | 1,878.60 | ||||||||||||||||||
Accumulated losses in excess of | — | 210.4 | — | — | (210.4 | ) | — | ||||||||||||||||||
investments in consolidated subsidiaries | |||||||||||||||||||||||||
Other liabilities | 66.5 | 1.7 | 53 | 511.6 | — | 632.8 | |||||||||||||||||||
Total liabilities | 12,240.30 | 690.1 | 1,773.80 | 2,871.70 | (5,087.3 | ) | 12,488.60 | ||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||||||
(See Note 12) | |||||||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||||||
Common stock | — | — | — | 67.7 | (67.7 | ) | — | ||||||||||||||||||
Additional paid-in capital | 212.7 | 842 | 0.7 | 6,017.10 | (6,859.8 | ) | 212.7 | ||||||||||||||||||
Accumulated other comprehensive income | 12.1 | — | — | 20.5 | (20.5 | ) | 12.1 | ||||||||||||||||||
Accumulated (deficit) retained earnings | — | (322.7 | ) | (241.4 | ) | 3,411.90 | (2,847.8 | ) | — | ||||||||||||||||
Total shareholders’ equity | 224.8 | 519.3 | (240.7 | ) | 9,517.20 | (9,795.8 | ) | 224.8 | |||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,465.10 | $ | 1,209.40 | $ | 1,533.10 | $ | 12,388.90 | $ | (14,883.1 | ) | $ | 12,713.40 | ||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | PAETEC | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | 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 | — | 3,670.40 | (4,044.7 | ) | — | ||||||||||||||||||
Inventories | — | — | 10.6 | 57.1 | — | 67.7 | |||||||||||||||||||
Deferred income taxes | 202.1 | — | — | 76.5 | (37.1 | ) | 241.5 | ||||||||||||||||||
Prepaid expenses and other | 35.3 | 0.1 | 29.9 | 116 | 1.1 | 182.4 | |||||||||||||||||||
Total current assets | 260.8 | 374.4 | 299.3 | 4,331.20 | (4,080.9 | ) | 1,184.80 | ||||||||||||||||||
Investments in consolidated subsidiaries | 9,997.50 | — | 0.8 | — | (9,998.3 | ) | — | ||||||||||||||||||
Goodwill | 1,649.50 | 643.8 | — | 2,038.10 | — | 4,331.40 | |||||||||||||||||||
Other intangibles, net | 645 | — | 533.6 | 841.5 | — | 2,020.10 | |||||||||||||||||||
Net property, plant and equipment | 10.2 | — | 799.3 | 4,893.10 | — | 5,702.60 | |||||||||||||||||||
Deferred income taxes | — | 219 | 31 | — | (250.0 | ) | — | ||||||||||||||||||
Other assets | 120.3 | — | 16.2 | 69.2 | — | 205.7 | |||||||||||||||||||
Total Assets | $ | 12,683.30 | $ | 1,237.20 | $ | 1,680.20 | $ | 12,173.10 | $ | (14,329.2 | ) | $ | 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 | 5 | — | 85.9 | 295 | — | 385.9 | |||||||||||||||||||
Affiliates payable, net | 2,758.90 | — | 1,431.70 | — | (4,039.9 | ) | 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 | 3,012.50 | 7.7 | 1,709.20 | 792.8 | (4,076.9 | ) | 1,445.30 | ||||||||||||||||||
Long-term debt | 8,044.90 | 475.8 | — | 101.5 | — | 8,622.20 | |||||||||||||||||||
Deferred income taxes | 724.7 | — | — | 1,563.60 | (250.0 | ) | 2,038.30 | ||||||||||||||||||
Accumulated losses in excess of | — | 71.8 | — | — | (71.8 | ) | — | ||||||||||||||||||
investments in consolidated subsidiaries | |||||||||||||||||||||||||
Other liabilities | 60.7 | 2.3 | 51.6 | 383.7 | — | 498.3 | |||||||||||||||||||
Total liabilities | 11,842.80 | 557.6 | 1,760.80 | 2,841.60 | (4,398.7 | ) | 12,604.10 | ||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||||||
(See Note 12) | |||||||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||||||
Common stock | — | — | — | 67.7 | (67.7 | ) | — | ||||||||||||||||||
Additional paid-in capital | 812 | 842 | — | 5,865.00 | (6,707.0 | ) | 812 | ||||||||||||||||||
Accumulated other comprehensive | 28.5 | — | — | 32.4 | (32.4 | ) | 28.5 | ||||||||||||||||||
income | |||||||||||||||||||||||||
Accumulated (deficit) retained earnings | — | (162.4 | ) | (80.6 | ) | 3,366.40 | (3,123.4 | ) | — | ||||||||||||||||
Total shareholders’ equity | 840.5 | 679.6 | (80.6 | ) | 9,331.50 | (9,930.5 | ) | 840.5 | |||||||||||||||||
Total Liabilities and Shareholders’ | $ | 12,683.30 | $ | 1,237.20 | $ | 1,680.20 | $ | 12,173.10 | $ | (14,329.2 | ) | $ | 13,444.60 | ||||||||||||
Equity | |||||||||||||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | PAETEC | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||||||
Net cash (used in) provided from | $ | (129.2 | ) | $ | (27.7 | ) | $ | 211.6 | $ | 1,414.80 | $ | (0.8 | ) | $ | 1,468.70 | ||||||||||
operations | |||||||||||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (1.8 | ) | — | (177.3 | ) | (607.4 | ) | — | (786.5 | ) | |||||||||||||||
Broadband network expansion funded by | — | — | — | (13.3 | ) | — | (13.3 | ) | |||||||||||||||||
stimulus grants | |||||||||||||||||||||||||
Changes in restricted cash | 3 | — | — | — | — | 3 | |||||||||||||||||||
Grant funds received for broadband | 33.2 | — | — | — | — | 33.2 | |||||||||||||||||||
stimulus projects | |||||||||||||||||||||||||
Grant funds received from Connect America | — | — | — | 26 | — | 26 | |||||||||||||||||||
Fund | |||||||||||||||||||||||||
Network expansion funded by Connect | — | — | — | (12.8 | ) | — | (12.8 | ) | |||||||||||||||||
America Fund | |||||||||||||||||||||||||
Acquisition of a business | (22.6 | ) | — | — | — | — | (22.6 | ) | |||||||||||||||||
Other, net | — | — | — | 3.9 | — | 3.9 | |||||||||||||||||||
Net cash provided from (used in) | 11.8 | — | (177.3 | ) | (603.6 | ) | — | (769.1 | ) | ||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Distributions to Windstream Holdings, Inc. | (603.6 | ) | — | — | — | — | (603.6 | ) | |||||||||||||||||
Repayments of debt and swaps | (1,394.4 | ) | — | — | (1.0 | ) | — | (1,395.4 | ) | ||||||||||||||||
Proceeds of debt issuance | 1,315.00 | — | — | — | — | 1,315.00 | |||||||||||||||||||
Intercompany transactions, net | 795.9 | 27.7 | (30.5 | ) | (767.9 | ) | (25.2 | ) | — | ||||||||||||||||
Payments under capital lease obligations | — | — | (7.0 | ) | (19.8 | ) | — | (26.8 | ) | ||||||||||||||||
Other, net | (9.2 | ) | — | — | — | — | (9.2 | ) | |||||||||||||||||
Net cash provided from (used in) | 103.7 | 27.7 | (37.5 | ) | (788.7 | ) | (25.2 | ) | (720.0 | ) | |||||||||||||||
financing activities | |||||||||||||||||||||||||
(Decrease) increase in cash and cash | (13.7 | ) | — | (3.2 | ) | 22.5 | (26.0 | ) | (20.4 | ) | |||||||||||||||
equivalents | |||||||||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Beginning of period | 13.7 | — | 7.8 | 26.7 | — | 48.2 | |||||||||||||||||||
End of period | $ | — | $ | — | $ | 4.6 | $ | 49.2 | $ | (26.0 | ) | $ | 27.8 | ||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating 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 cash (used in) provided from | $ | (186.2 | ) | $ | (56.0 | ) | $ | 253.9 | $ | 1,510.50 | $ | (2.4 | ) | $ | 1,519.80 | ||||||||||
operations | |||||||||||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (2.0 | ) | — | (161.4 | ) | (677.6 | ) | — | (841.0 | ) | |||||||||||||||
Broadband network expansion funded by stimulus grants | — | — | — | (36.1 | ) | — | (36.1 | ) | |||||||||||||||||
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) | 81.3 | — | (129.9 | ) | (659.0 | ) | — | (707.6 | ) | ||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Dividends paid to shareholders | (444.6 | ) | — | — | — | — | (444.6 | ) | |||||||||||||||||
Distributions to Windstream Holdings, Inc. | (149.4 | ) | — | — | — | — | (149.4 | ) | |||||||||||||||||
Repayments 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 | 273.1 | 706 | (127.8 | ) | (853.7 | ) | 2.4 | — | |||||||||||||||||
Payments under capital lease obligations | — | — | (14.9 | ) | (9.0 | ) | — | (23.9 | ) | ||||||||||||||||
Other, net | (6.7 | ) | — | — | — | — | (6.7 | ) | |||||||||||||||||
Net cash provided from (used in) | 61.1 | 56 | (142.7 | ) | (872.8 | ) | 2.4 | (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 | |||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating 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 cash provided from (used in) | $ | 170.4 | $ | (101.6 | ) | $ | 281.3 | $ | 1,429.10 | $ | (1.6 | ) | $ | 1,777.60 | |||||||||||
operations | |||||||||||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (0.7 | ) | — | (208.6 | ) | (891.9 | ) | — | (1,101.2 | ) | |||||||||||||||
Broadband network expansion funded | — | — | — | (105.4 | ) | — | (105.4 | ) | |||||||||||||||||
by 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 | — | (1.8 | ) | (0.1 | ) | — | 0.9 | |||||||||||||||||
Net cash provided from (used in) | 34.6 | — | (195.9 | ) | (940.4 | ) | — | (1,101.7 | ) | ||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Dividends paid to shareholders | (588.0 | ) | — | — | — | — | (588.0 | ) | |||||||||||||||||
Repayments 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 | 177.9 | 401.6 | (103.2 | ) | (477.9 | ) | 1.6 | — | |||||||||||||||||
Payments under capital lease obligations | — | — | (19.2 | ) | (0.8 | ) | — | (20.0 | ) | ||||||||||||||||
Other, net | 0.7 | — | — | — | — | 0.7 | |||||||||||||||||||
Net cash (used in) provided from | (262.9 | ) | 101.6 | (122.4 | ) | (488.8 | ) | 1.6 | (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 | |||||||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||
Discontinued Operations | Discontinued Operations: | ||||||||||
On December 5, 2013, we completed the sale of Pinnacle, a software business acquired as part of the PAETEC acquisition, for $30.0 million in cash. Pinnacle provided comprehensive solutions for supporting the full lifecycle of information technology and telecommunications services. On June 15, 2012, we completed for $6.1 million in cash the sale of the energy business also acquired as part of the PAETEC acquisition. This business operated as a competitive energy supplier and sold electricity to business and residential customers in certain geographic regions in the state of New York. There was no gain or loss realized on the sale of the energy business. | |||||||||||
The following table summarizes the results of the software and energy businesses which have been separately presented as discontinued operations in the accompanying consolidated statements of operations for the years ended December 31: | |||||||||||
(Millions) | 2013 | 2012 | |||||||||
Revenues and sales | $ | 16.9 | $ | 29.7 | |||||||
Operating income from discontinued operations | 1.4 | 3.1 | |||||||||
Gain on sale of discontinued operations | 14.4 | — | |||||||||
Income before tax from discontinued operations | 15.8 | 3.1 | |||||||||
Income tax expense | 9.8 | 2.2 | |||||||||
Net income from discontinued operations | $ | 6 | $ | 0.9 | |||||||
Quarterly_Financial_Informatio
Quarterly Financial Information - (Unaudited): | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Quarterly Financial Information - (Unaudited): | Quarterly Financial Information – (Unaudited): | ||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
(Millions, except per share amounts) | Total | 4th | 3rd | 2nd | 1st | ||||||||||||||||
Revenues and sales | $ | 5,829.50 | $ | 1,443.10 | $ | 1,455.50 | $ | 1,466.00 | $ | 1,464.90 | |||||||||||
Operating income | $ | 507.1 | $ | 20.5 | $ | 151.6 | $ | 167.2 | $ | 167.8 | |||||||||||
Net (loss) income | $ | (39.5 | ) | $ | (77.5 | ) | $ | 8 | $ | 14 | $ | 16 | |||||||||
Basic and diluted (loss) earnings per share: (a) | |||||||||||||||||||||
Net (loss) income | ($.07 | ) | ($.13 | ) | $0.01 | $0.02 | $0.02 | ||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
(Millions, except per share amounts) | Total | 4th | 3rd | 2nd | 1st | ||||||||||||||||
Revenues and sales | $ | 5,988.10 | $ | 1,491.40 | $ | 1,498.50 | $ | 1,501.70 | $ | 1,496.50 | |||||||||||
Operating income | $ | 1,009.00 | $ | 326.5 | $ | 219.6 | $ | 227 | $ | 235.9 | |||||||||||
Net income | $ | 241 | $ | 118.4 | $ | 30.6 | $ | 39.7 | $ | 52.3 | |||||||||||
Basic and diluted earnings per share: (a) | |||||||||||||||||||||
Net income | $0.40 | $0.20 | $0.05 | $0.06 | $0.09 | ||||||||||||||||
(a) | Quarterly (loss) earnings 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 7, we recognize actuarial gains and losses for pension benefits as a component of net periodic benefit (income) expense in the fourth quarter of each year, unless an earlier measurement date is required. Results of operations for the fourth quarter of 2014 and 2013 include pretax actuarial losses and (gains) related to pension benefits of $128.6 million and $(110.4) million or an after-tax charge (benefit) of $79.1 million and $(71.1) million, respectively. |
Pending_Transaction_Notes
Pending Transaction: (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Pending Transaction [Abstract] | |
Pending Transaction [Text Block] | Pending Transaction - Proposed Spin-off of Certain Network and Real Estate Assets: |
On July 29, 2014, we announced plans to spin off certain telecommunications network assets, including our fiber and copper networks and other real estate, into Communications Sales & Leasing, Inc. (“CS&L”), an independent, publicly traded real estate investment trust (“REIT”). We will also contribute substantially all of our consumer competitive local exchange carrier business to the REIT, which will continue to operate this business. The REIT will lease use of the assets to us through an exclusive long-term triple-net lease with an initial term of 15 years at an initial estimated rent payment of $650.0 million per year. The lease is expected to include up to four 5 year renewal options and provide for annual rent escalations of 0.5 percent after the third year of the initial lease term. We will continue to operate and maintain the assets in order to deliver advanced communications and technology services to consumers and businesses. We will also continue to have sole responsibility for meeting our existing regulatory obligations following the creation of the REIT. | |
Due to various forms of continuing involvement, including Windstream Corp. remaining the legal counterparty to the various easements, permits and pole attachments related to the network assets, we will account for the transaction as a failed sale-leaseback for financial reporting purposes. As a result, the net book value of the network assets transferred to the REIT will continue to be reported in our consolidated balance sheet and will be fully depreciated over the initial lease term of 15 years. We will record a long-term lease obligation equal to the sum of the minimum future annual lease payments over the 15-year lease term discounted to the present value based on Windstream Corp.’s incremental borrowing rate. As annual lease payments are made, a portion of the payment will decrease the long-term lease obligation with the balance of the payment charged to interest expense using the effective interest method. | |
Our board of directors approved a plan to pursue the proposed spin-off following the receipt of a favorable private letter ruling from the Internal Revenue Service relating to certain tax matters regarding the tax-free nature of the spin-off and the qualification of the spun off assets as real property for REIT purposes. | |
As part of this proposed transaction, shareholders will retain their existing Windstream Holdings shares. The spin-off will be completed through a pro rata distribution of no less than 80.1 percent of the outstanding shares of the REIT to existing Windstream Holdings shareholders. After giving effect to the interest in the REIT retained by Windstream, each Windstream Holdings shareholder is expected to receive one share of the REIT for every five shares of Windstream Holdings common stock held as of the record date in the form of a tax-free dividend. We anticipate the REIT will raise approximately $3.65 billion in new debt, the proceeds of which will be used to fund a cash payment to Windstream, the amount of which we expect to be approximately $1.2 billion, and to complete a tax-free debt exchange of existing Windstream Corp. debt obligations of approximately $2.35 billion. Net of estimated transaction costs and financing fees, we expect to reduce Windstream Corp.’s total outstanding long-term debt by approximately $3.4 billion through completion of the debt exchange and receipt of the cash payment from the REIT. At the time of the spin-off, Windstream will retain a passive ownership interest in up to 19.9 percent of the common stock of the REIT. Windstream intends to use all of its shares of the REIT opportunistically during a twelve month period following the spin-off, subject to market conditions, to retire additional Windstream Corp. debt. We do not expect any significant operational changes as a result of the transaction. | |
On January 21, 2015, we announced that we have received all regulatory approvals from state public service commissions required to consummate the transaction. In anticipation of the spin-off, we intend to reorganize certain of our subsidiaries, including Windstream Corp., into limited liability companies and take certain other steps to facilitate the proposed transaction. At a special meeting held on February 20, 2015, Windstream shareholders approved proposals to eliminate the requirement to conduct a shareholder vote to effect the reorganization of Windstream Corp. to a limited liability company and to effect a reclassification (reverse stock split) of Windstream Holdings common stock, whereby (i) each outstanding six (6) shares of common stock would be combined into and become one (1) share of common stock and (ii) to decrease the number of authorized shares of common stock proportionately from 1.0 billion shares to 166,666,667 shares following the spin-off. | |
We anticipate that the spin-off will occur in the first half of 2015. On or before March 1, 2015, we intend to convert Windstream Corp. to Windstream Services, LLC. We plan to maintain our current dividend practice through the close of the transaction. If the closing date of the spin-off is not on the record date of Windstream’s normal quarterly dividend, we intend to pay a pro rata dividend to our shareholders based on the number of days elapsed in the quarter. Following the close of the spin-off transaction and the effects of the 1-for-6 reverse stock split, Windstream expects to pay an annual dividend of $.60 per share and CS&L initially expects to pay an annual dividend of $2.40 per share. | |
Completion of the proposed spin-off is contingent on the effectiveness of CS&L’s Form 10 registration statement, final approval from our board of directors, execution of all definitive agreements, and satisfaction of other customary conditions. We may, at any time and for any reason until the proposed transaction is complete, abandon the spin-off or modify or change the terms of the spin-off. |
Subsequent_Event_Notes
Subsequent Event (Notes) | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events: | Subsequent Events: |
On February 11, 2015, we declared a dividend of 25 cents per share on our common stock, which is payable on April 15, 2015 to shareholders of record on March 31, 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies: (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Significant Accounting Policies and New Accounting Pronouncements [Abstract] | |||||||||||||
Use of Estimates | Use of Estimates – The preparation of financial statements, in accordance with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying consolidated financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the consolidated financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying consolidated financial statements, and such differences could be material. | ||||||||||||
Business Segments | Business Segments – We are organized based on the services and products that we offer. Our chief operating decision maker assesses performance and allocates resources based on our consolidated results of operations. Under this organizational and reporting structure, our operations consist of one reportable segment. See the accompanying consolidated statements of operations for additional information regarding the types of revenue our business generates. | ||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents consist of highly liquid investments with original maturities of three months or less. | ||||||||||||
Restricted Cash | Restricted Cash – Restricted cash consists of cash restricted for uses other than current operations. We have placed cash into pledged deposit accounts for our share of committed spend on construction contracts currently under review by the Rural Utilities Service (“RUS”), part of the United States Department of Agriculture, for broadband stimulus grants. Changes in the restricted cash balances are reflected as cash inflows or outflows in the investing activities section of the consolidated statements of cash flows. | ||||||||||||
Accounts Receivable | Accounts Receivable – Accounts receivable consist principally of trade receivables from customers and are generally unsecured and due within 30 days. Expected credit losses related to trade accounts receivable are recorded as an allowance for doubtful accounts in the consolidated balance sheets. In establishing the allowance for doubtful accounts, we consider a number of factors, including historical collection experience, aging of the accounts receivable balances, current economic conditions and a specific customer’s ability to meet its financial obligations. When internal collection efforts on accounts have been exhausted, the accounts are written off by reducing the allowance for doubtful accounts. Concentration of credit risk with respect to accounts receivable is limited because a large number of geographically diverse customers make up our customer base. Due to varying customer billing cycle cut-off, we must estimate service revenues earned but not yet billed at the end of each reporting period. Included in accounts receivable are unbilled receivables related to communications services and product sales of $40.2 million and $46.3 million at December 31, 2014 and 2013, respectively. | ||||||||||||
Inventories | Inventories – Inventories consist of finished goods and are stated at the lower of cost or market value. Cost is determined using either an average original cost or specific identification method of valuation. | ||||||||||||
Prepaid Expenses and Other Current Assets | Prepaid Expenses and Other Current Assets – Prepaid expenses and other current assets consist of prepaid services, rent, insurance, maintenance contracts and refundable deposits. Prepayments are expensed on a straight-line basis over the corresponding life of the underlying agreements. | ||||||||||||
Broadband Stimulus Spend | Broadband Stimulus Grants – Capital expenditures related to the broadband stimulus grants are initially recorded to construction in progress. A receivable totaling 75 percent of the gross spend, representing the expected reimbursement from the RUS is recorded during the same period, offsetting the amounts recorded in construction in progress. The resulting balance sheet presentation reflects our 25 percent investment in these assets in property, plant and equipment. Once an asset is placed into service, depreciation is calculated and recorded based on our 25 percent investment in the equipment. Initial outlays to purchase stimulus-related assets are reflected as outflows in the investing activities section of the consolidated statements of cash flows. Grant funds received from the RUS are shown as inflows in the investing activities section of the consolidated statements of cash flows. | ||||||||||||
Connect America Fund Support | Connect America Fund Support – In conjunction with reforming USF, the Federal Communications Commission (“FCC”) established the Connect America Fund (“CAF”) which provides incremental support to broadband service providers. CAF includes both short-term (“Phase I”) and long-term (“Phase II”) framework. We have received $86.7 million in CAF Phase I support for upgrades and new deployments of broadband service to unserved and underserved locations. Pursuant to commitments we made with the FCC, we will match, on at least a dollar-for-dollar basis, the total amount of CAF Phase I support we receive. As construction projects which will utilize CAF Phase I support are initiated, a portion of the CAF Phase I support received will be reclassified from other liabilities as an offset to construction in progress to effectively reduce the capitalized cost of the constructed asset. For each construction dollar we spend, an equal amount will be transferred from other liabilities to construction in progress to reflect our dollar-for-dollar matching requirement. As of December 31, 2014, $53.9 million and $20.0 million of CAF Phase I support was recorded in other current liabilities and other liabilities, respectively, in the accompanying consolidated balance sheet. CAF Phase I support received and used to construct network assets during the period has been presented within the investing activities section of the consolidated statements of cash flows. The FCC has yet to finalize the statewide allocation of CAF Phase II. | ||||||||||||
Asset Disposals | Asset Disposals – On December 5, 2013, we completed the sale of Pinnacle Software Company (“Pinnacle”), a software company acquired in conjunction with the 2011 acquisition of PAETEC Holding Corp. (“PAETEC”) for $30.0 million in cash. The software business has been reported as discontinued operations for the years ended December 31, 2013 and 2012. See Note 14 for further discussion of discontinued operations. | ||||||||||||
2. Summary of Significant Accounting Policies and Changes, Continued: | |||||||||||||
On February 22, 2012 and March 30, 2012, we completed the sales of wireless assets acquired from D&E Communications, Inc. (“D&E”) and Iowa Telecommunications Services, Inc. (“Iowa Telecom”), respectively. In connection with these sales, we received gross proceeds of approximately $57.0 million and recognized a gain of $5.2 million, net of transaction fees. | |||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – Goodwill represents the excess of cost over the fair value of net identifiable tangible and intangible assets acquired through various business combinations. The cost of acquired entities at the date of the acquisition is allocated to identifiable assets, and the excess of the total purchase price over the amounts assigned to identifiable assets has been recorded as goodwill. | ||||||||||||
In accordance with authoritative guidance, goodwill is to be assigned to a company’s reporting units and tested for impairment at least annually using a consistent measurement date, which for us is January 1st of each year. Goodwill is tested at the reporting unit level. A reporting unit is an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit for which discrete financial information is available and our executive management team regularly reviews the operating results of that component. Additionally, components of an operating segment can be combined as a single reporting unit if the components have similar economic characteristics. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is performed. If the carrying value of the reporting unit exceeds its fair value, then a second step must be performed, and the implied fair value of the reporting unit’s goodwill must be determined and compared to the carrying value of the reporting unit’s goodwill. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then an impairment loss equal to the difference will be recorded. Prior to performing the two step evaluation, an entity has the option to perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit exceeds the carrying value. Under the qualitative assessment, if an entity determines that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the entity is not required to complete the two step goodwill impairment evaluation. | |||||||||||||
During the fourth quarter of 2013, in connection with the disposal of our software business and changes in certain management responsibilities, we reassessed our reporting unit structure as of November 30, 2013 and performed a quantitative analysis as of that date. We estimated the fair value of our reporting units using an income approach supplemented with a market approach. The income approach is based on the present value of projected cash flows and a terminal value, which represents the expected normalized cash flows of the reporting unit beyond the cash flows from the discrete projection period of five years. We discounted the estimated cash flows for each of the reporting units using a rate that represents a market participant’s weighted average cost of capital commensurate with the reporting unit’s underlying business operations. Results of the income approach were corroborated with estimated fair values derived from a market approach, which primarily included the use of comparable multiples of publicly traded companies operating in businesses similar to ours. We also reconciled the estimated fair value of our reporting units to our total market capitalization. Goodwill was assigned to the reporting units using a relative fair value allocation approach. | |||||||||||||
As of January 1, 2014, we determined that we had three reporting units, excluding corporate-level activities, to test for impairment. After considering changes to assumptions used in our most recent quantitative testing completed as of November 30, 2013, including general economic conditions, capital markets, telecommunications industry competition and trends, changes in common stock prices, our results of operations, and the magnitude of the excess of the fair value over the carrying value of each of our reporting units as determined in our most recent quantitative testing, we concluded that it is more likely than not that the fair value of our reporting units is not less than their respective carrying values and, therefore, we did not perform a quantitative analysis. | |||||||||||||
Other intangible assets arising from business combinations such as franchise rights, customer lists, and cable franchise rights are initially recorded at estimated fair value. We amortize customer lists using the sum-of-the-digits method over an estimated life or 9 to 15 years. All other intangible assets are amortized using a straight-line method over the estimated useful lives. | |||||||||||||
Net Property, Plant and Equipment | Net Property, Plant and Equipment – Property, plant and equipment are stated at original cost, less accumulated depreciation. Property, plant and equipment consists of central office equipment, office and warehouse facilities, outside communications plant, customer premise equipment, furniture, fixtures, vehicles, machinery, other equipment and software to support the business units in the distribution of telecommunications products. The costs of additions, replacements, substantial improvements and extension of the network to the customer premise, including related labor costs, are capitalized, while the costs of maintenance and repairs are expensed as incurred. Depreciation expense amounted to $1,130.3 million, $1,049.7 million, and $955.6 million in 2014, 2013 and 2012, respectively. | ||||||||||||
2. Summary of Significant Accounting Policies and Changes, Continued: | |||||||||||||
Net property, plant and equipment consisted of the following as of December 31: | |||||||||||||
(Millions) | Depreciable Lives | 2014 | 2013 | ||||||||||
Land | $ | 44.3 | $ | 44.7 | |||||||||
Building and improvements | 3-40 years | 655.5 | 644.5 | ||||||||||
Central office equipment | 3-40 years | 5,750.40 | 5,563.70 | ||||||||||
Outside communications plant | 7-47 years | 6,906.60 | 6,630.70 | ||||||||||
Furniture, vehicles and other equipment | 3-23 years | 1,616.00 | 1,431.20 | ||||||||||
Construction in progress | 365.2 | 312.6 | |||||||||||
15,338.00 | 14,627.40 | ||||||||||||
Less accumulated depreciation | (9,925.7 | ) | (8,924.8 | ) | |||||||||
Net property, plant and equipment | $ | 5,412.30 | $ | 5,702.60 | |||||||||
Our regulated operations use a group composite depreciation method. Under this method, when plant is retired, the original cost, net of salvage value, is charged against accumulated depreciation and no immediate gain or loss is recognized on the disposition of the plant. For our non-regulated operations, when depreciable plant is retired or otherwise disposed of, the related cost and accumulated depreciation are deducted from the plant accounts, with the corresponding gain or loss reflected in operating results. | |||||||||||||
The RUS will have a retained security interest in the assets funded by the broadband stimulus grants over their economic life, which varies by grant for periods up to 23 years. In the event of default of terms of the agreement, the RUS could exercise the rights under its retained security interest to gain control and ownership of these assets. In addition, in the event of a proposed change in control of Windstream, the acquiring party would need to receive approval from the RUS prior to consummating the proposed transaction, for which pre-approval will not be reasonably withheld. | |||||||||||||
We capitalize interest in connection with the acquisition or construction of plant assets. Capitalized interest is included in the cost of the asset with a corresponding reduction in interest expense. Capitalized interest amounted to $3.7 million, $7.9 million and $10.9 million in 2014, 2013 and 2012, respectively. | |||||||||||||
Asset Retirement Obligations | Asset Retirement Obligations – We recognize asset retirement obligations in accordance with authoritative guidance on accounting for asset retirement obligations and conditional asset retirement obligations, which requires recognition of a liability for the fair value of an asset retirement obligation if the amount can be reasonably estimated. Our asset retirement obligations include legal obligations to remediate the asbestos in certain buildings if we exit them, to properly dispose of our chemically-treated telephone poles at the time they are removed from service and to restore certain leased properties to their previous condition upon exit from the lease. These asset retirement obligations totaled $53.4 million and $52.3 million as of December 31, 2014 and 2013, respectively, and are included in other liabilities in the accompanying consolidated balance sheets. | ||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets - We review long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable from future, undiscounted net cash flows expected to be generated by the asset group. If the asset group is not fully recoverable, an impairment loss would be recognized for the difference between the carrying value of the asset group and its estimated fair value based on discounted net future cash flows. | ||||||||||||
Derivative Instruments | Derivative Instruments – Windstream Corp. enters into interest rate swap agreements to mitigate the interest rate risk inherent in its variable rate senior secured credit facility. Derivative instruments are accounted for in accordance with authoritative guidance for recognition, measurement and disclosures about derivative instruments and hedging activities, including when a derivative or other financial instrument can be designated as a hedge. This guidance requires recognition of all derivative instruments at fair value, and accounting for the changes in fair value depends on whether the derivative has been designated as, qualifies as and is effective as a hedge. Changes in fair value of the effective portions of cash flow hedges are recorded as a component of other comprehensive (loss) income in the current period. Any ineffective portion of the hedges is recognized in earnings in the current period. | ||||||||||||
Revenue Recognition | Revenue Recognition – Service revenues are primarily derived from providing access to or usage of our networks and facilities. Service revenues are recognized over the period that the corresponding services are rendered to customers. Revenues that are billed in advance include monthly recurring network access and data services, special access and monthly recurring voice, Internet and other related charges. The unearned portion of these revenues is included in advance payments and customer deposits in the accompanying consolidated balance sheets. Revenues derived from other telecommunications services, including interconnection, long distance and enhanced service revenues are recognized monthly as services are provided. Revenue from sales of indefeasible rights to use fiber optic network facilities (“IRUs”) and the related telecommunications network maintenance arrangements is generally recognized over the term of the related lease or contract. Sales of communications products including customer premise equipment and modems are recognized when products are delivered to and accepted by customers. Fees assessed to customers for service activation are deferred upon service activation and recognized as service revenue on a straight-line basis over the expected life of the customer relationship in accordance with authoritative guidance on multiple element arrangements. Certain costs associated with activating such services are deferred and recognized as an operating expense over the same period. | ||||||||||||
In determining whether to include in revenues and expenses the taxes and surcharges assessed and collected from customers and remitted to government authorities, including USF charges, sales, use, value added and excise taxes, we evaluate, among other factors, whether we are the primary obligor or principal tax payer for the fees and taxes assessed in each jurisdiction in which we operate. In those jurisdictions for which we are the primary obligor, we record the taxes and surcharges on a gross basis and include in revenues and costs of services and products. In jurisdictions in which we function as a collection agent for the government authority, we record the taxes on a net basis and exclude the amounts from our revenues and costs of services and products. | |||||||||||||
Advertising | Advertising – Advertising costs are expensed as incurred. Advertising expense totaled $96.8 million, $80.4 million, and $99.5 million in 2014, 2013 and 2012. | ||||||||||||
Share-Based Compensation | Share-Based Compensation – In accordance with authoritative guidance on share-based compensation, we value all time-based awards to employees at fair value on the date of the grant, and recognize that value as compensation expense over the period that each award vests. Performance-based awards are valued at fair value at the end of each reporting period until final performance targets are set. Share-based compensation expense for performance-based awards is recognized when it is probable and estimable as measured against performance metrics. Share-based compensation expense is included in selling, general and administrative expenses in the accompanying consolidated statements of operations. | ||||||||||||
Pension Benefits | Pension Benefits – We recognize changes in the fair value of plan assets and actuarial gains and losses due to actual experience differing from actuarial assumptions, as a component of net periodic benefit (income) expense in the fourth quarter in the year in which the gains and losses occur, and if applicable in any quarter in which an interim remeasurement is required. The remaining components of net periodic benefit (income) expense, primarily service and interest costs and assumed return on plan assets, are recognized ratably on a quarterly basis. | ||||||||||||
Operating Leases | Operating Leases – Certain of our operating lease agreements include scheduled rent escalations during the initial lease term and/or during succeeding optional renewal periods. We account for these operating leases in accordance with authoritative guidance for operating leases with non-level rent payments. Accordingly, the scheduled increases in rent expense are recognized on a straight-line basis over the initial lease term and those renewal periods that are reasonably assured. The difference between rent expense and rent paid is recorded as deferred rent and is included in other liabilities in the accompanying consolidated balance sheets. Leasehold improvements are amortized over the shorter of the estimated useful life of the asset or the lease term, including renewal option periods that are reasonably assured. | ||||||||||||
Income Taxes | Income Taxes – We account for income taxes in accordance with guidance on accounting for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax balances are adjusted to reflect tax rates based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period of the enactment date. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. In addition, we adopted authoritative guidance which addresses uncertainty in tax positions and clarifies the accounting for income taxes by prescribing a minimum recognition threshold that the income tax positions must achieve before being recognized in the financial statements. | ||||||||||||
Earnings Per Share | Earnings Per Share – We compute basic (loss) earnings per share by dividing net (loss) income applicable to common shares by the weighted average number of common shares outstanding during each period. Our non-vested restricted shares containing a non-forfeitable right to receive dividends on a one-to-one per share ratio to common shares are considered participating securities, and the impact is included in the computation of earnings per share pursuant to the two-class method. Calculations of earnings per share under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. | ||||||||||||
Diluted (loss) earnings per share are computed by dividing net (loss) income applicable to common shares by the weighted average number of common shares adjusted to include the effect of potentially dilutive securities. Potentially dilutive securities include incremental shares issuable upon exercise of outstanding stock options and warrants. Diluted earnings per share exclude all potentially dilutive securities if their effect is anti-dilutive. | |||||||||||||
We also issue performance-based restricted stock units as part of our share-based compensation plan. These restricted stock units contain a forfeitable right to receive dividends. Because dividends attributable to these shares are forfeited if the vesting provisions are not met, they are considered non-participating restricted shares and are not dilutive under the two class method until the performance conditions have been satisfied. The 2014 performance conditions for the outstanding restricted stock units were not satisfied, and therefore, these stock units were excluded from the computation of diluted weighted average shares outstanding. Options and warrants granted in conjunction with the acquisition of PAETEC are included in the computation of dilutive earnings per share using the treasury stock method. | |||||||||||||
A reconciliation of net (loss) income and number of shares used in computing basic and diluted (loss) earnings per share was as follows for the years ended December 31: | |||||||||||||
(Millions, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Basic and diluted (loss) earnings per share: | |||||||||||||
Numerator: | |||||||||||||
(Loss) income from continuing operations | $ | (39.5 | ) | $ | 235 | $ | 167.1 | ||||||
Income from continuing operations allocable to participating securities | (5.0 | ) | (4.1 | ) | (3.6 | ) | |||||||
Adjusted (loss) income from continuing operations attributable to | (44.5 | ) | 230.9 | 163.5 | |||||||||
common shares | |||||||||||||
Income from discontinued operations | — | 6 | 0.9 | ||||||||||
Income from discontinued operations allocable to participating | — | — | — | ||||||||||
securities | |||||||||||||
Adjusted income from discontinued operations attributable to | — | 6 | 0.9 | ||||||||||
common shares | |||||||||||||
Net (loss) income attributable to common shares | $ | (44.5 | ) | $ | 236.9 | $ | 164.4 | ||||||
Denominator: | |||||||||||||
Basic shares outstanding | |||||||||||||
Weighted average shares outstanding | 601.5 | 593.2 | 588 | ||||||||||
Weighted average participating securities | (4.6 | ) | (3.9 | ) | (3.5 | ) | |||||||
Weighted average basic shares outstanding | 596.9 | 589.3 | 584.5 | ||||||||||
Diluted shares outstanding | |||||||||||||
Weighted average basic shares outstanding | 596.9 | 589.3 | 584.5 | ||||||||||
Effect of dilutive stock options | — | 0.4 | 1.8 | ||||||||||
Weighted average diluted shares outstanding | 596.9 | 589.7 | 586.3 | ||||||||||
Basic and diluted (loss) earnings per share: | |||||||||||||
From continuing operations | ($.07 | ) | $0.39 | $0.28 | |||||||||
From discontinued operations | — | 0.01 | — | ||||||||||
Net (loss) income | ($.07 | ) | $0.40 | $0.28 | |||||||||
2. Summary of Significant Accounting Policies and Changes, Continued: | |||||||||||||
In 2014, the potential dilutive effect of 0.2 million shares of stock options were excluded from the computation of diluted weighted average shares outstanding as the shares would have an anti-dilutive effect on the loss from continuing operations. In addition, options to purchase shares of stock issuable under stock-based compensation plans that were excluded from the computation of diluted earnings per share because the exercise prices were greater than the average market price of our common stock and, therefore, the effect would be anti-dilutive, totaled approximately 0.6 million shares for the year ended December 31, 2014 and 1.0 million shares for each of the years ended December 31, 2013 and 2012, respectively. | |||||||||||||
Change In Accounting Estimate | Change in Accounting Estimate | ||||||||||||
The calculation of depreciation and amortization expense is based on the estimated economic useful lives of the underlying property, plant and equipment and finite-lived intangible assets. We periodically obtain updated depreciation studies to evaluate whether certain useful lives remain appropriate in accordance with authoritative guidance. With the assistance of outside expertise, we completed analyses of the depreciable lives of assets held for certain subsidiaries during the year 2012. Based on those results, we implemented new depreciation rates resulting in a net increase to depreciation of $59.1 million and a net decrease in net income of $36.5 million or $0.06 per share for the year ended December 31, 2012. |
Schedule_I_Condensed_Financial1
Schedule I - Condensed Financial Information of the Registrant (Parent Company) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||
Statements of Comprehensive Income (Loss) | STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||
(Millions) | For the Year Ended | For the period of August 30, 2013 | |||||||||||||||||||
31-Dec-14 | (date of formation) | ||||||||||||||||||||
to December 31, 2013 | |||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||
Selling, general, and administrative | $ | 2.3 | $ | 0.5 | |||||||||||||||||
Total costs and expenses | 2.3 | 0.5 | |||||||||||||||||||
Operating loss | (2.3 | ) | (0.5 | ) | |||||||||||||||||
Loss before income taxes and equity in subsidiaries | (2.3 | ) | (0.5 | ) | |||||||||||||||||
Income tax benefit | (0.9 | ) | (0.2 | ) | |||||||||||||||||
Loss before equity in subsidiaries | (1.4 | ) | (0.3 | ) | |||||||||||||||||
Equity (losses) earnings from subsidiaries | (38.1 | ) | 137.6 | ||||||||||||||||||
Net (loss) income | $ | (39.5 | ) | $ | 137.3 | ||||||||||||||||
Comprehensive (loss) income | $ | (55.9 | ) | $ | 134.4 | ||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||
Guarantors | |||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||
Service revenues | $ | — | $ | 1,029.10 | $ | 4,642.50 | $ | (24.0 | ) | $ | 5,647.60 | ||||||||||
Product sales | — | 41.1 | 140.8 | — | 181.9 | ||||||||||||||||
Total revenues and sales | — | 1,070.20 | 4,783.30 | (24.0 | ) | 5,829.50 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of services | — | 392.3 | 2,346.60 | (19.6 | ) | 2,719.30 | |||||||||||||||
Cost of products sold | — | 39.8 | 116.8 | — | 156.6 | ||||||||||||||||
Selling, general and administrative | — | 99.3 | 886.6 | (4.4 | ) | 981.5 | |||||||||||||||
Depreciation and amortization | 21.9 | 300 | 1,064.50 | — | 1,386.40 | ||||||||||||||||
Merger and integration costs | — | — | 40.4 | — | 40.4 | ||||||||||||||||
Restructuring charges | — | 6.1 | 29.8 | — | 35.9 | ||||||||||||||||
Total costs and expenses | 21.9 | 837.5 | 4,484.70 | (24.0 | ) | 5,320.10 | |||||||||||||||
Operating (loss) income | (21.9 | ) | 232.7 | 298.6 | — | 509.4 | |||||||||||||||
Earnings from consolidated subsidiaries | 217.3 | 30.6 | 3.7 | (251.6 | ) | — | |||||||||||||||
Other (expense) income, net | (0.2 | ) | 162.9 | (162.6 | ) | — | 0.1 | ||||||||||||||
Intercompany interest income (expense) | 127.2 | (53.7 | ) | (73.5 | ) | — | — | ||||||||||||||
Interest expense | (523.9 | ) | (6.4 | ) | (41.5 | ) | — | (571.8 | ) | ||||||||||||
(Loss) income before income taxes | (201.5 | ) | 366.1 | 24.7 | (251.6 | ) | (62.3 | ) | |||||||||||||
Income tax (benefit) expense | (163.4 | ) | 126 | 13.2 | — | (24.2 | ) | ||||||||||||||
Net (loss) income | $ | (38.1 | ) | $ | 240.1 | $ | 11.5 | $ | (251.6 | ) | $ | (38.1 | ) | ||||||||
Comprehensive (loss) income | $ | (54.5 | ) | $ | 240.1 | $ | 11.5 | $ | (251.6 | ) | $ | (54.5 | ) | ||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||
Guarantors | |||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||
Service revenues | $ | — | $ | 1,065.60 | $ | 4,740.30 | $ | (30.4 | ) | $ | 5,775.50 | ||||||||||
Product sales | — | 54.4 | 158.2 | — | 212.6 | ||||||||||||||||
Total revenues and sales | — | 1,120.00 | 4,898.50 | (30.4 | ) | 5,988.10 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of services | — | 339.6 | 2,178.10 | (25.6 | ) | 2,492.10 | |||||||||||||||
Cost of products sold | — | 53.7 | 130.2 | — | 183.9 | ||||||||||||||||
Selling, general and administrative | — | 77.8 | 849.9 | (4.8 | ) | 922.9 | |||||||||||||||
Depreciation and amortization | 25 | 292.2 | 1,023.70 | — | 1,340.90 | ||||||||||||||||
Merger and integration costs | — | — | 30.2 | — | 30.2 | ||||||||||||||||
Restructuring charges | — | 1.6 | 7 | — | 8.6 | ||||||||||||||||
Total costs and expenses | 25 | 764.9 | 4,219.10 | (30.4 | ) | 4,978.60 | |||||||||||||||
Operating (loss) income | (25.0 | ) | 355.1 | 679.4 | — | 1,009.50 | |||||||||||||||
Earnings from consolidated subsidiaries | 526.1 | 53.3 | 5.6 | (585.0 | ) | — | |||||||||||||||
Other income (expense), net | 2.1 | 166.1 | (180.7 | ) | — | (12.5 | ) | ||||||||||||||
Loss on early extinguishment of debt | (17.2 | ) | — | (11.3 | ) | — | (28.5 | ) | |||||||||||||
Intercompany interest income (expense) | 134.5 | (61.1 | ) | (73.4 | ) | — | — | ||||||||||||||
Interest expense | (584.6 | ) | (5.8 | ) | (37.3 | ) | — | (627.7 | ) | ||||||||||||
Income from continuing operations before | 35.9 | 507.6 | 382.3 | (585.0 | ) | 340.8 | |||||||||||||||
income taxes | |||||||||||||||||||||
Income tax (benefit) expense | (205.4 | ) | 169.3 | 141.6 | — | 105.5 | |||||||||||||||
Income from continuing operations | 241.3 | 338.3 | 240.7 | (585.0 | ) | 235.3 | |||||||||||||||
Discontinued operations | — | — | 6 | — | 6 | ||||||||||||||||
Net income | $ | 241.3 | $ | 338.3 | $ | 246.7 | $ | (585.0 | ) | $ | 241.3 | ||||||||||
Comprehensive income | $ | 263.4 | $ | 338.3 | $ | 246.7 | $ | (585.0 | ) | $ | 263.4 | ||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||
Guarantors | |||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||
Service revenues | $ | — | $ | 1,095.30 | $ | 4,838.40 | $ | (25.4 | ) | $ | 5,908.30 | ||||||||||
Product sales | — | 73 | 158.2 | — | 231.2 | ||||||||||||||||
Total revenues and sales | — | 1,168.30 | 4,996.60 | (25.4 | ) | 6,139.50 | |||||||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of services | — | 377.2 | 2,332.10 | (17.1 | ) | 2,692.20 | |||||||||||||||
Cost of products sold | — | 71.9 | 134.7 | — | 206.6 | ||||||||||||||||
Selling, general and administrative | — | 102.1 | 873.5 | (8.3 | ) | 967.3 | |||||||||||||||
Depreciation and amortization | 28.8 | 286.2 | 981.9 | — | 1,296.90 | ||||||||||||||||
Merger and integration costs | — | — | 65.4 | — | 65.4 | ||||||||||||||||
Restructuring charges | — | 4.4 | 22.8 | — | 27.2 | ||||||||||||||||
Total costs and expenses | 28.8 | 841.8 | 4,410.40 | (25.4 | ) | 5,255.60 | |||||||||||||||
Operating (loss) income | (28.8 | ) | 326.5 | 586.2 | — | 883.9 | |||||||||||||||
Earnings from consolidated subsidiaries | 432 | 41.8 | 4.6 | (478.4 | ) | — | |||||||||||||||
Other (expense) income, net | (4.4 | ) | 182.3 | (173.3 | ) | — | 4.6 | ||||||||||||||
Gain on early extinguishment of debt | — | — | 1.9 | — | 1.9 | ||||||||||||||||
Intercompany interest income (expense) | 135.3 | (66.0 | ) | (69.3 | ) | — | — | ||||||||||||||
Interest expense | (540.9 | ) | (5.4 | ) | (78.8 | ) | — | (625.1 | ) | ||||||||||||
(Loss) income from continuing operations | (6.8 | ) | 479.2 | 271.3 | (478.4 | ) | 265.3 | ||||||||||||||
before income taxes | |||||||||||||||||||||
Income tax (benefit) expense | (174.8 | ) | 163.9 | 109.1 | — | 98.2 | |||||||||||||||
Income from continuing operations | 168 | 315.3 | 162.2 | (478.4 | ) | 167.1 | |||||||||||||||
Discontinued operations | — | — | 0.9 | — | 0.9 | ||||||||||||||||
Net income | $ | 168 | $ | 315.3 | $ | 163.1 | $ | (478.4 | ) | $ | 168 | ||||||||||
Comprehensive income | $ | 172.5 | $ | 315.3 | $ | 163.1 | $ | (478.4 | ) | $ | 172.5 | ||||||||||
Balance Sheets | BALANCE SHEETS | ||||||||||||||||||||
(Millions, except par value) | |||||||||||||||||||||
Assets | 2014 | 2013 | |||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Distributions receivable from Windstream Corp. | $ | 152.4 | $ | 150.7 | |||||||||||||||||
Other current assets | — | 0.1 | |||||||||||||||||||
Total current assets | 152.4 | 150.8 | |||||||||||||||||||
Investment in affiliate | 224.8 | 840.5 | |||||||||||||||||||
Total Assets | $ | 377.2 | $ | 991.3 | |||||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accrued dividends | $ | 152.4 | $ | 151.1 | |||||||||||||||||
Total current liabilities | 152.4 | 151.1 | |||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||
Common stock, $0.0001 par value, 1,000.0 shares authorized, | |||||||||||||||||||||
602.9 and 596.2 shares issued and outstanding | 0.1 | 0.1 | |||||||||||||||||||
Additional paid-in capital | 212.6 | 811.6 | |||||||||||||||||||
Accumulated other comprehensive income | 12.1 | 28.5 | |||||||||||||||||||
Retained earnings | — | — | |||||||||||||||||||
Total shareholders’ equity | 224.8 | 840.2 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 377.2 | $ | 991.3 | |||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||
Guarantors | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2.1 | $ | 51.7 | $ | (26.0 | ) | $ | 27.8 | ||||||||||
Restricted cash | 6.7 | — | — | — | 6.7 | ||||||||||||||||
Accounts receivable (less allowance for doubtful | — | 136.5 | 499 | — | 635.5 | ||||||||||||||||
accounts of $43.4) | |||||||||||||||||||||
Notes receivable - affiliate | — | 4.8 | — | (4.8 | ) | — | |||||||||||||||
Affiliates receivable, net | — | 1,057.70 | 2,066.90 | (3,124.6 | ) | — | |||||||||||||||
Inventories | — | 36.9 | 26.8 | — | 63.7 | ||||||||||||||||
Deferred income taxes | 67.4 | 10.5 | 27.5 | — | 105.4 | ||||||||||||||||
Prepaid expenses and other | 35.5 | 20.4 | 108.7 | — | 164.6 | ||||||||||||||||
Total current assets | 109.6 | 1,268.90 | 2,780.60 | (3,155.4 | ) | 1,003.70 | |||||||||||||||
Investments in consolidated subsidiaries | 10,001.30 | 965.6 | 255.6 | (11,222.5 | ) | — | |||||||||||||||
Notes receivable - affiliate | — | 317.7 | — | (317.7 | ) | — | |||||||||||||||
Goodwill | 1,649.50 | 825.6 | 1,877.70 | — | 4,352.80 | ||||||||||||||||
Other intangibles, net | 590.7 | 355.2 | 818.1 | — | 1,764.00 | ||||||||||||||||
Net property, plant and equipment | 9.8 | 1,269.40 | 4,133.10 | — | 5,412.30 | ||||||||||||||||
Other assets | 104.2 | 17.1 | 59.3 | — | 180.6 | ||||||||||||||||
Total Assets | $ | 12,465.10 | $ | 5,019.50 | $ | 9,924.40 | $ | (14,695.6 | ) | $ | 12,713.40 | ||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||
Current maturities of long-term debt | $ | 717.4 | $ | — | $ | 0.1 | $ | — | $ | 717.5 | |||||||||||
Current portion of interest rate swaps | 28.5 | — | — | — | 28.5 | ||||||||||||||||
Accounts payable | 2.1 | 86.9 | 314.3 | — | 403.3 | ||||||||||||||||
Affiliates payable, net | 3,277.00 | — | — | (3,124.6 | ) | 152.4 | |||||||||||||||
Notes payable - affiliate | — | — | 4.8 | (4.8 | ) | — | |||||||||||||||
Advance payments and customer deposits | — | 16.6 | 198.1 | — | 214.7 | ||||||||||||||||
Accrued taxes | 0.2 | 23.8 | 71.2 | — | 95.2 | ||||||||||||||||
Accrued interest | 94.3 | 2.1 | 6.1 | — | 102.5 | ||||||||||||||||
Other current liabilities | 32.3 | 18 | 278.6 | — | 328.9 | ||||||||||||||||
Total current liabilities | 4,151.80 | 147.4 | 873.2 | (3,129.4 | ) | 2,043.00 | |||||||||||||||
Long-term debt | 7,363.40 | 99.6 | 471.2 | — | 7,934.20 | ||||||||||||||||
Notes payable - affiliate | — | — | 317.7 | (317.7 | ) | — | |||||||||||||||
Deferred income taxes | 658.6 | 418.8 | 801.2 | — | 1,878.60 | ||||||||||||||||
Other liabilities | 66.5 | 45.7 | 520.6 | — | 632.8 | ||||||||||||||||
Total liabilities | 12,240.30 | 711.5 | 2,983.90 | (3,447.1 | ) | 12,488.60 | |||||||||||||||
Commitments and Contingencies (See Note 12) | |||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||
Common stock | — | 39.4 | 81.9 | (121.3 | ) | — | |||||||||||||||
Additional paid-in capital | 212.7 | 3,794.90 | 4,002.00 | (7,796.9 | ) | 212.7 | |||||||||||||||
Accumulated other comprehensive income | 12.1 | — | 14.5 | (14.5 | ) | 12.1 | |||||||||||||||
Retained earnings | — | 473.7 | 2,842.10 | (3,315.8 | ) | — | |||||||||||||||
Total shareholders’ equity | 224.8 | 4,308.00 | 6,940.50 | (11,248.5 | ) | 224.8 | |||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,465.10 | $ | 5,019.50 | $ | 9,924.40 | $ | (14,695.6 | ) | $ | 12,713.40 | ||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||
Guarantors | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Current Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 13.7 | $ | 0.7 | $ | 33.8 | $ | — | $ | 48.2 | |||||||||||
Restricted cash | 9.7 | — | — | — | 9.7 | ||||||||||||||||
Accounts receivable (less allowance for doubtful | — | 117.4 | 517.9 | — | 635.3 | ||||||||||||||||
accounts of $40.0) | |||||||||||||||||||||
Notes receivable - affiliate | — | 4.8 | — | (4.8 | ) | — | |||||||||||||||
Affiliates receivable, net | — | 743.7 | 1,864.50 | (2,608.2 | ) | — | |||||||||||||||
Inventories | — | 49.8 | 17.9 | — | 67.7 | ||||||||||||||||
Deferred income taxes | 202.1 | 10.5 | 28.9 | — | 241.5 | ||||||||||||||||
Prepaid expenses and other | 35.3 | 20.8 | 126.3 | — | 182.4 | ||||||||||||||||
Total current assets | 260.8 | 947.7 | 2,589.30 | (2,613.0 | ) | 1,184.80 | |||||||||||||||
Investments in consolidated subsidiaries | 9,997.50 | 936.7 | 291.1 | (11,225.3 | ) | — | |||||||||||||||
Notes receivable - affiliate | — | 321.3 | — | (321.3 | ) | — | |||||||||||||||
Goodwill | 1,649.50 | 825.6 | 1,856.30 | — | 4,331.40 | ||||||||||||||||
Other intangibles, net | 645 | 397.6 | 977.5 | — | 2,020.10 | ||||||||||||||||
Net property, plant and equipment | 10.2 | 1,350.90 | 4,341.50 | — | 5,702.60 | ||||||||||||||||
Other assets | 120.3 | 14.8 | 70.6 | — | 205.7 | ||||||||||||||||
Total Assets | $ | 12,683.30 | $ | 4,794.60 | $ | 10,126.30 | $ | (14,159.6 | ) | $ | 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 | 5 | 54.8 | 326.1 | — | 385.9 | ||||||||||||||||
Affiliates payable, net | 2,758.90 | — | — | (2,608.2 | ) | 150.7 | |||||||||||||||
Notes payable - affiliate | — | — | 4.8 | (4.8 | ) | — | |||||||||||||||
Advance payments and customer deposits | — | 17.4 | 206.1 | — | 223.5 | ||||||||||||||||
Accrued taxes | 0.2 | 33.8 | 70.3 | — | 104.3 | ||||||||||||||||
Accrued interest | 95.4 | 1.8 | 6.3 | — | 103.5 | ||||||||||||||||
Other current liabilities | 38.1 | 17.2 | 307.1 | — | 362.4 | ||||||||||||||||
Total current liabilities | 3,012.50 | 125 | 920.8 | (2,613.0 | ) | 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 | 724.7 | 421.7 | 891.9 | — | 2,038.30 | ||||||||||||||||
Other liabilities | 60.7 | 28.8 | 408.8 | — | 498.3 | ||||||||||||||||
Total liabilities | 11,842.80 | 675.1 | 3,020.50 | (2,934.3 | ) | 12,604.10 | |||||||||||||||
Commitments and Contingencies (See Note 12) | |||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||
Common stock | — | 39.4 | 81.9 | (121.3 | ) | — | |||||||||||||||
Additional paid-in capital | 812 | 3,657.50 | 3,978.80 | (7,636.3 | ) | 812 | |||||||||||||||
Accumulated other comprehensive income | 28.5 | — | 26.3 | (26.3 | ) | 28.5 | |||||||||||||||
Retained earnings | — | 422.6 | 3,018.80 | (3,441.4 | ) | — | |||||||||||||||
Total shareholders’ equity | 840.5 | 4,119.50 | 7,105.80 | (11,225.3 | ) | 840.5 | |||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,683.30 | $ | 4,794.60 | $ | 10,126.30 | $ | (14,159.6 | ) | $ | 13,444.60 | ||||||||||
Statements of Cash Flows | STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Millions) | For the Year Ended | For the period of August 30, 2013 | |||||||||||||||||||
31-Dec-14 | (date of formation) | ||||||||||||||||||||
to December 31, 2013 | |||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||
Net (loss) income | $ | (39.5 | ) | $ | 137.3 | ||||||||||||||||
Adjustments to reconcile net (loss) income to net cash provided from | |||||||||||||||||||||
operations: | |||||||||||||||||||||
Equity in losses (earnings) from subsidiaries | 38.1 | (137.6 | ) | ||||||||||||||||||
Changes in operating assets and liabilities, net: | |||||||||||||||||||||
Other current assets | — | (0.1 | ) | ||||||||||||||||||
Net cash used in operating activities | (1.4 | ) | (0.4 | ) | |||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Dividends paid to shareholders | (602.2 | ) | (149.0 | ) | |||||||||||||||||
Distributions from Windstream Corp | 603.6 | 149.4 | |||||||||||||||||||
Net cash provided by financing activities | 1.4 | 0.4 | |||||||||||||||||||
Change in cash and cash equivalents | — | — | |||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||
Beginning of period | — | — | |||||||||||||||||||
End of period | $ | — | $ | — | |||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||
Guarantors | |||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||
Net cash (used in) provided from operations | $ | (129.2 | ) | $ | 500.8 | $ | 1,097.10 | $ | — | $ | 1,468.70 | ||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||
Additions to property, plant and equipment | (1.8 | ) | (112.5 | ) | (672.2 | ) | — | (786.5 | ) | ||||||||||||
Broadband network expansion funded by | — | (0.3 | ) | (13.0 | ) | — | (13.3 | ) | |||||||||||||
stimulus grants | |||||||||||||||||||||
Changes in restricted cash | 3 | — | — | — | 3 | ||||||||||||||||
Grant funds received for broadband stimulus | 33.2 | — | — | — | 33.2 | ||||||||||||||||
projects | |||||||||||||||||||||
Grant funds received from Connect America Fund | — | 9.4 | 16.6 | — | 26 | ||||||||||||||||
Network expansion funded by Connect America | — | (1.3 | ) | (11.5 | ) | — | (12.8 | ) | |||||||||||||
Fund | |||||||||||||||||||||
Acquisition of a business | (22.6 | ) | — | — | — | (22.6 | ) | ||||||||||||||
Other, net | — | — | 3.9 | — | 3.9 | ||||||||||||||||
Net cash provided from (used in) | 11.8 | (104.7 | ) | (676.2 | ) | — | (769.1 | ) | |||||||||||||
investing activities | |||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Distributions to Windstream Holdings, Inc. | (603.6 | ) | — | — | — | (603.6 | ) | ||||||||||||||
Repayments of debt and swaps | (1,394.4 | ) | — | (1.0 | ) | — | (1,395.4 | ) | |||||||||||||
Proceeds of debt issuance | 1,315.00 | — | — | — | 1,315.00 | ||||||||||||||||
Intercompany transactions, net | 795.9 | (398.3 | ) | (371.6 | ) | (26.0 | ) | — | |||||||||||||
Payments under capital lease obligations | — | — | (26.8 | ) | — | (26.8 | ) | ||||||||||||||
Other, net | (9.2 | ) | 3.6 | (3.6 | ) | — | (9.2 | ) | |||||||||||||
Net cash provided from (used in) financing | 103.7 | (394.7 | ) | (403.0 | ) | (26.0 | ) | (720.0 | ) | ||||||||||||
activities | |||||||||||||||||||||
(Decrease) increase in cash and cash equivalents | (13.7 | ) | 1.4 | 17.9 | (26.0 | ) | (20.4 | ) | |||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||
Beginning of period | 13.7 | 0.7 | 33.8 | — | 48.2 | ||||||||||||||||
End of period | $ | — | $ | 2.1 | $ | 51.7 | $ | (26.0 | ) | $ | 27.8 | ||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||
Guarantors | |||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||
Net cash (used in) provided from operations | $ | (186.2 | ) | $ | 613.9 | $ | 1,092.10 | $ | — | $ | 1,519.80 | ||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||
Additions to property, plant and equipment | (2.0 | ) | (134.6 | ) | (704.4 | ) | — | (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 stimulus | 68 | — | — | — | 68 | ||||||||||||||||
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) | 81.3 | (117.6 | ) | (671.3 | ) | — | (707.6 | ) | |||||||||||||
investing activities | |||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Dividends paid to shareholders | (444.6 | ) | — | — | — | (444.6 | ) | ||||||||||||||
Distributions to Windstream Holdings, Inc. | (149.4 | ) | — | — | — | (149.4 | ) | ||||||||||||||
Repayments 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 | 273.1 | (500.3 | ) | 227.2 | — | — | |||||||||||||||
Payments under capital lease obligations | — | — | (23.9 | ) | — | (23.9 | ) | ||||||||||||||
Other, net | (6.7 | ) | 3.6 | (3.6 | ) | — | (6.7 | ) | |||||||||||||
Net cash provided from (used in) financing | 61.1 | (496.7 | ) | (460.4 | ) | — | (896.0 | ) | |||||||||||||
activities | |||||||||||||||||||||
Decrease in cash and cash equivalents | (43.8 | ) | (0.4 | ) | (39.6 | ) | — | (83.8 | ) | ||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||
Beginning of period | 57.5 | 1.1 | 73.4 | — | 132 | ||||||||||||||||
End of period | $ | 13.7 | $ | 0.7 | $ | 33.8 | $ | — | $ | 48.2 | |||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||
Guarantors | |||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||
Net cash provided from operations | $ | 170.4 | $ | 475.2 | $ | 1,132.00 | $ | — | $ | 1,777.60 | |||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||
Additions to property, plant and equipment | (0.7 | ) | (175.5 | ) | (925.0 | ) | — | (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 stimulus | 45.7 | — | — | — | 45.7 | ||||||||||||||||
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) investing | 34.6 | (141.9 | ) | (994.4 | ) | — | (1,101.7 | ) | |||||||||||||
activities | |||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||
Dividends paid to shareholders | (588.0 | ) | — | — | — | (588.0 | ) | ||||||||||||||
Repayments 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 | 177.9 | (336.9 | ) | 159 | — | — | |||||||||||||||
Payments under capital lease obligations | — | (0.1 | ) | (19.9 | ) | — | (20.0 | ) | |||||||||||||
Other, net | 0.7 | 3.6 | (3.6 | ) | — | 0.7 | |||||||||||||||
Net cash used in financing activities | (262.9 | ) | (333.4 | ) | (174.6 | ) | — | (770.9 | ) | ||||||||||||
Decrease in cash and cash equivalents | (57.9 | ) | (0.1 | ) | (37.0 | ) | — | (95.0 | ) | ||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||
Beginning of period | 115.4 | 1.2 | 110.4 | — | 227 | ||||||||||||||||
End of period | $ | 57.5 | $ | 1.1 | $ | 73.4 | $ | — | $ | 132 | |||||||||||
Other Parent Company Disclosures | Background and Basis of Presentation: Following its formation on August 30, 2013, Windstream Holdings, Inc. (“Windstream Holdings”) has no material assets or operations other than its ownership in Windstream Corporation (“Windstream Corp.”) and its subsidiaries. Certain covenants within Windstream Corp.’s senior secured credit facility may restrict its ability to distribute funds to Windstream Holdings in the form of dividends, loans or advances. Accordingly, these condensed financial statements of Windstream Holdings have been presented on a “Parent Only” basis. Under this basis of presentation, Windstream Holdings’ investment in its consolidated subsidiaries are presented under the equity method of accounting. The condensed parent company financial statements should be read in conjunction with the consolidated financial statements and notes of Windstream Holdings and subsidiaries included in the Financial Supplement to this Annual Report on Form 10-K. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Significant Accounting Policies and New Accounting Pronouncements [Abstract] | |||||||||||||
Property, Plant and Equipment Disclosure | Net property, plant and equipment consisted of the following as of December 31: | ||||||||||||
(Millions) | Depreciable Lives | 2014 | 2013 | ||||||||||
Land | $ | 44.3 | $ | 44.7 | |||||||||
Building and improvements | 3-40 years | 655.5 | 644.5 | ||||||||||
Central office equipment | 3-40 years | 5,750.40 | 5,563.70 | ||||||||||
Outside communications plant | 7-47 years | 6,906.60 | 6,630.70 | ||||||||||
Furniture, vehicles and other equipment | 3-23 years | 1,616.00 | 1,431.20 | ||||||||||
Construction in progress | 365.2 | 312.6 | |||||||||||
15,338.00 | 14,627.40 | ||||||||||||
Less accumulated depreciation | (9,925.7 | ) | (8,924.8 | ) | |||||||||
Net property, plant and equipment | $ | 5,412.30 | $ | 5,702.60 | |||||||||
Reconciliation of Earnings Per Share | A reconciliation of net (loss) income and number of shares used in computing basic and diluted (loss) earnings per share was as follows for the years ended December 31: | ||||||||||||
(Millions, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Basic and diluted (loss) earnings per share: | |||||||||||||
Numerator: | |||||||||||||
(Loss) income from continuing operations | $ | (39.5 | ) | $ | 235 | $ | 167.1 | ||||||
Income from continuing operations allocable to participating securities | (5.0 | ) | (4.1 | ) | (3.6 | ) | |||||||
Adjusted (loss) income from continuing operations attributable to | (44.5 | ) | 230.9 | 163.5 | |||||||||
common shares | |||||||||||||
Income from discontinued operations | — | 6 | 0.9 | ||||||||||
Income from discontinued operations allocable to participating | — | — | — | ||||||||||
securities | |||||||||||||
Adjusted income from discontinued operations attributable to | — | 6 | 0.9 | ||||||||||
common shares | |||||||||||||
Net (loss) income attributable to common shares | $ | (44.5 | ) | $ | 236.9 | $ | 164.4 | ||||||
Denominator: | |||||||||||||
Basic shares outstanding | |||||||||||||
Weighted average shares outstanding | 601.5 | 593.2 | 588 | ||||||||||
Weighted average participating securities | (4.6 | ) | (3.9 | ) | (3.5 | ) | |||||||
Weighted average basic shares outstanding | 596.9 | 589.3 | 584.5 | ||||||||||
Diluted shares outstanding | |||||||||||||
Weighted average basic shares outstanding | 596.9 | 589.3 | 584.5 | ||||||||||
Effect of dilutive stock options | — | 0.4 | 1.8 | ||||||||||
Weighted average diluted shares outstanding | 596.9 | 589.7 | 586.3 | ||||||||||
Basic and diluted (loss) earnings per share: | |||||||||||||
From continuing operations | ($.07 | ) | $0.39 | $0.28 | |||||||||
From discontinued operations | — | 0.01 | — | ||||||||||
Net (loss) income | ($.07 | ) | $0.40 | $0.28 | |||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets: Goodwill and Other Intangible Assets: (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Goodwill | Changes in the carrying amount of goodwill were as follows: | ||||||||||||||||||||||||
(Millions) | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 4,331.40 | |||||||||||||||||||||||
Acquisition during the period (a) | 21.4 | ||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 4,352.80 | |||||||||||||||||||||||
(a) | On October 1, 2014, we acquired for cash a fixed wireless enterprise services provider with operations in four states. | ||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets were as follows at December 31: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Millions) | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net Carrying | |||||||||||||||||||
Cost | Amortization | Value | Cost | Amortization | Value | ||||||||||||||||||||
Franchise rights | $ | 1,285.10 | $ | (243.3 | ) | $ | 1,041.80 | $ | 1,285.10 | $ | (200.4 | ) | $ | 1,084.70 | |||||||||||
Customer lists | 1,914.00 | (1,203.4 | ) | 710.6 | 1,914.00 | (991.9 | ) | 922.1 | |||||||||||||||||
Cable franchise rights | 39.8 | (28.2 | ) | 11.6 | 39.8 | (27.0 | ) | 12.8 | |||||||||||||||||
Other | 37.9 | (37.9 | ) | — | 37.9 | (37.4 | ) | 0.5 | |||||||||||||||||
Balance | $ | 3,276.80 | $ | (1,512.8 | ) | $ | 1,764.00 | $ | 3,276.80 | $ | (1,256.7 | ) | $ | 2,020.10 | |||||||||||
Schedule of Finite-Lived Intangible Assets, Methodology and Estimated Useful Life | Intangible asset amortization methodology and useful lives were as follows as of December 31, 2014: | ||||||||||||||||||||||||
Intangible Assets | Amortization Methodology | Estimated Useful Life | |||||||||||||||||||||||
Franchise rights | straight-line | 30 years | |||||||||||||||||||||||
Customer lists | sum of years digits | 9 - 15 years | |||||||||||||||||||||||
Cable franchise rights | straight-line | 15 years | |||||||||||||||||||||||
Other | straight-line | 1 - 3 years | |||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Amortization expense for intangible assets subject to amortization was estimated to be as follows for each of the years ended December 31: | ||||||||||||||||||||||||
Year | (Millions) | ||||||||||||||||||||||||
2015 | $ | 223.1 | |||||||||||||||||||||||
2016 | 192.7 | ||||||||||||||||||||||||
2017 | 164.8 | ||||||||||||||||||||||||
2018 | 137.9 | ||||||||||||||||||||||||
2019 | 111.2 | ||||||||||||||||||||||||
Thereafter | 934.3 | ||||||||||||||||||||||||
Total | $ | 1,764.00 | |||||||||||||||||||||||
Longterm_Debt_and_Lease_Obliga
Long-term Debt and Lease Obligations: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Long-term Debt and Capital Lease Obligations [Abstract] | |||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt was as follows at December 31: | ||||||||||||
(Millions) | 2014 | 2013 | |||||||||||
Issued by Windstream Corp.: | |||||||||||||
Senior secured credit facility, Tranche A3 – variable rates, due December 30, 2016 | $ | 344.3 | $ | 387.3 | |||||||||
Senior secured credit facility, Tranche A4 – variable rates, due August 8, 2017 | 255 | 277.5 | |||||||||||
Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 | 1,318.10 | 1,331.60 | |||||||||||
Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 | 584.1 | 590 | |||||||||||
Senior secured credit facility, Revolving line of credit – variable rates, due | 625 | 590 | |||||||||||
December 17, 2015 | |||||||||||||
Debentures and notes, without collateral: | |||||||||||||
2017 Notes – 7.875%, due November 1, 2017 | 1,100.00 | 1,100.00 | |||||||||||
2018 Notes – 8.125%, due September 1, 2018 | 400 | 400 | |||||||||||
2020 Notes – 7.750%, due October 15, 2020 | 700 | 700 | |||||||||||
2021 Notes – 7.750%, due October 1, 2021 | 950 | 950 | |||||||||||
2022 Notes – 7.500%, due June 1, 2022 | 500 | 500 | |||||||||||
2023 Notes – 7.500%, due April 1, 2023 | 600 | 600 | |||||||||||
2023 Notes – 6.375%, due August 1, 2023 | 700 | 700 | |||||||||||
Issued by subsidiaries of the Company: | |||||||||||||
Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 | 100 | 100 | |||||||||||
Cinergy Communications Company – 6.58%, due January 1, 2022 | 1.9 | 2 | |||||||||||
Debentures and notes, without collateral: | |||||||||||||
PAETEC 2018 Notes – 9.875%, due December 1, 2018 | 450 | 450 | |||||||||||
Premium on long-term debt, net | 23.3 | 28.8 | |||||||||||
8,651.70 | 8,707.20 | ||||||||||||
Less current maturities | (717.5 | ) | (85.0 | ) | |||||||||
Total long-term debt | $ | 7,934.20 | $ | 8,622.20 | |||||||||
Weighted average interest rate | 6.5 | % | 7 | % | |||||||||
Weighted maturity | 5.1 years | 6.1 years | |||||||||||
Schedule of Maturities of Long-term Debt | Maturities for long-term debt outstanding as of December 31, 2014, excluding $23.3 million of unamortized net premium, were as follows for the years ended December 31: | ||||||||||||
Year | (Millions) | ||||||||||||
2015 | $ | 717.5 | |||||||||||
2016 | 350.7 | ||||||||||||
2017 | 1,314.50 | ||||||||||||
2018 | 869.5 | ||||||||||||
2019 | 574.1 | ||||||||||||
Thereafter | 4,802.10 | ||||||||||||
Total | $ | 8,628.40 | |||||||||||
Schedule of Extinguishment of Debt | The (loss) gain on extinguishment of debt was as follows for the years ended December 31: | ||||||||||||
(Millions) | 2013 | 2012 | |||||||||||
2019 Notes: | |||||||||||||
Premium on early redemption | $ | (13.6 | ) | $ | — | ||||||||
Third-party fees for early redemption | (0.5 | ) | — | ||||||||||
Unamortized debt issuance costs on original issuance | (0.6 | ) | — | ||||||||||
Loss on early extinguishment for 2019 Notes | (14.7 | ) | — | ||||||||||
Senior secured credit facility: | |||||||||||||
Unamortized debt issuance costs on original issuance | (2.5 | ) | — | ||||||||||
Loss on early extinguishment for senior secured credit | (2.5 | ) | — | ||||||||||
facility | |||||||||||||
PAETEC 2017 Notes: | |||||||||||||
Premium on early redemption | (51.5 | ) | — | ||||||||||
Third-party fees for early redemption | (1.0 | ) | — | ||||||||||
Unamortized premium on original issuance | 41.2 | — | |||||||||||
Loss on early extinguishment for PAETEC 2017 Notes | (11.3 | ) | — | ||||||||||
PAETEC 2015 Notes: | |||||||||||||
Premium on early redemption | — | (14.3 | ) | ||||||||||
Unamortized premium on original issuance | — | 16.2 | |||||||||||
Gain on early extinguishment for PAETEC 2015 Notes | — | 1.9 | |||||||||||
Total (loss) gain on early extinguishment of debt | $ | (28.5 | ) | $ | 1.9 | ||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | Future minimum lease payments under capital lease obligations were as follows for the years ended December 31: | ||||||||||||
Year | (Millions) | ||||||||||||
2015 | $ | 29.4 | |||||||||||
2016 | 21.8 | ||||||||||||
2017 | 2.7 | ||||||||||||
2018 | 0.5 | ||||||||||||
2019 | 0.5 | ||||||||||||
Thereafter | 1.9 | ||||||||||||
Total future payments | 56.8 | ||||||||||||
Less: Amounts representing interest | 3.9 | ||||||||||||
Present value of minimum lease payments | $ | 52.9 | |||||||||||
Other Lease Obligations | Future minimum payments during the initial terms of the leases were as follows for the years ended December 31: | ||||||||||||
Year | (Millions) | ||||||||||||
2015 | $ | 6.3 | |||||||||||
2016 | 6.5 | ||||||||||||
2017 | 6.7 | ||||||||||||
2018 | 6.9 | ||||||||||||
2019 | 7.1 | ||||||||||||
Thereafter | 92 | ||||||||||||
Total | $ | 125.5 | |||||||||||
Interest Expense, Net Disclosure | Interest expense was as follows for the years ended December 31: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Interest expense related to long-term debt | $ | 539.9 | $ | 584.7 | $ | 576.4 | |||||||
Impact of interest rate swaps | 29 | 48 | 56.4 | ||||||||||
Interest on capital and other lease obligations | 6.6 | 2.9 | 3.2 | ||||||||||
Less capitalized interest expense | (3.7 | ) | (7.9 | ) | (10.9 | ) | |||||||
Total interest expense | $ | 571.8 | $ | 627.7 | $ | 625.1 | |||||||
Derivatives_Schedule_of_Deriva
Derivatives Schedule of Derivatives (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Derivative Instruments | Set forth below is information related to our interest rate swap agreements: | |||||||||||||||||||
(Millions, except for percentages) | 2014 | 2013 | 2012 | |||||||||||||||||
Designated portion, measured at fair value | ||||||||||||||||||||
Other assets | $ | 0.4 | $ | — | $ | — | ||||||||||||||
Other current liabilities | $ | 28.5 | $ | 30 | $ | 29 | ||||||||||||||
Other non-current liabilities | $ | 48.7 | $ | 41.8 | $ | 91.2 | ||||||||||||||
Accumulated other comprehensive income (loss) | $ | 4.9 | $ | 28.2 | $ | (14.7 | ) | |||||||||||||
De-designated portion, unamortized value | ||||||||||||||||||||
Accumulated other comprehensive loss | $ | (8.8 | ) | $ | (24.7 | ) | $ | (45.9 | ) | |||||||||||
Weighted average fixed rate paid | 3.57 | % | 3.57 | % | 4.26 | % | ||||||||||||||
Variable rate received | 0.16 | % | 0.16 | % | 0.21 | % | ||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Changes in the value of these derivative instruments were as follows for the years ended December 31: | |||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||||||||
Changes in fair value of effective portion, net of tax (a) | $ | (14.3 | ) | $ | 17.4 | $ | (12.6 | ) | ||||||||||||
Amortization of unrealized losses on de-designated | $ | 9.8 | $ | 22.2 | $ | 28 | ||||||||||||||
interest rate swaps, net of tax (a) | ||||||||||||||||||||
(a) | Included as a component of other comprehensive income (loss) and will be reclassified into earnings as the hedged transaction affects earnings. | |||||||||||||||||||
Offsetting Assets | Information pertaining to derivative assets was as follows: | |||||||||||||||||||
Gross Amounts Not Offset in the Consolidated | ||||||||||||||||||||
Balance Sheets | ||||||||||||||||||||
(Millions) | Gross Amount of Recognized | Net Amount of Assets presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
Assets | ||||||||||||||||||||
December 31, 2014: | ||||||||||||||||||||
Interest rate swaps | $ | 0.4 | $ | 0.4 | $ | (0.3 | ) | $ | — | $ | 0.1 | |||||||||
Offsetting Liabilities | Information pertaining to derivative liabilities was as follows: | |||||||||||||||||||
Gross Amounts Not Offset in the Consolidated | ||||||||||||||||||||
Balance Sheets | ||||||||||||||||||||
(Millions) | Gross Amount of Recognized Liabilities | Net Amount of Liabilities presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||
December 31, 2014: | ||||||||||||||||||||
Derivatives | $ | 77.2 | $ | 77.2 | $ | (0.3 | ) | $ | — | $ | 76.9 | |||||||||
December 31, 2013: | ||||||||||||||||||||
Derivatives | $ | 71.8 | $ | 71.8 | $ | — | $ | — | $ | 71.8 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements: (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Fair Value Disclosures [Abstract] | |||||||||
Fair value of cash equivalents and interest rate swaps | The fair values of interest rate swaps and long-term debt were determined using the following inputs at December 31: | ||||||||
(Millions) | 2014 | 2013 | |||||||
Recorded at Fair Value in the Financial Statements: | |||||||||
Derivatives: | |||||||||
Interest rate swap assets - Level 2 | $ | 0.4 | $ | — | |||||
Interest rate swap liabilities - Level 2 | $ | 77.2 | $ | 71.8 | |||||
Not Recorded at Fair Value in the Financial Statements: (a) (b) | |||||||||
Long-term debt, including current maturities - Level 1 | $ | — | $ | 5,270.00 | |||||
Long-term debt, including current maturities - Level 2 | 8,777.50 | 3,738.20 | |||||||
$ | 8,777.50 | $ | 9,008.20 | ||||||
(a) | Recognized at carrying value of $8,651.7 million and $8,707.2 million in long-term debt, including current maturities, in the accompanying consolidated balance sheets as of December 31, 2014 and 2013, respectively. | ||||||||
(b) | Due to a lack of new borrowings and other refinancing activities in 2014 resulting in a decline in the frequency and volume of market activity related to Windstream Corp.’s debt obligations, we have reclassified all long-term debt as Level 2. |
Employee_Benefit_Plans_and_Pos1
Employee Benefit Plans and Postretirement Benefits: (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||||||||
Pension And Other Postretirement Benefits, Net Periodic Benefit Costs, Disclosure | The components of pension benefit (income) expense (including provision for executive retirement agreements) and postretirement benefits income were as follows for the years ended December 31: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Benefits earned during the year | $ | 8.2 | $ | 10.5 | $ | 10 | $ | — | $ | — | $ | 0.1 | |||||||||||||
Interest cost on benefit obligation | 58.9 | 52.5 | 58 | 1.3 | 1.4 | 1.8 | |||||||||||||||||||
Net actuarial loss (gain) | 128.6 | (110.4 | ) | 72.5 | — | — | — | ||||||||||||||||||
Amortization of net actuarial loss | — | — | — | 0.1 | 1.7 | 2.3 | |||||||||||||||||||
Amortization of prior service credit | (0.1 | ) | (0.1 | ) | (0.1 | ) | (5.8 | ) | (8.6 | ) | (11.8 | ) | |||||||||||||
Plan curtailments and settlements | — | — | — | (11.5 | ) | (32.2 | ) | (9.6 | ) | ||||||||||||||||
Expected return on plan assets | (67.3 | ) | (67.8 | ) | (73.0 | ) | — | — | — | ||||||||||||||||
Net periodic benefit expense (income) | $ | 128.3 | $ | (115.3 | ) | $ | 67.4 | $ | (15.9 | ) | $ | (37.7 | ) | $ | (17.2 | ) | |||||||||
Summary of plan assets, projected benefit obligation and funded status of the plans | A summary of plan assets, projected benefit obligation and funded status of the plans (including executive retirement agreements) were as follows at December 31: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 959.7 | $ | 999 | $ | 0.3 | $ | 0.2 | |||||||||||||||||
Actual return on plan assets | 144.6 | 10.8 | — | 0.1 | |||||||||||||||||||||
Employer contributions | 89.9 | 28.5 | 3.8 | 1.9 | |||||||||||||||||||||
Participant contributions | — | — | 0.4 | 1.5 | |||||||||||||||||||||
Benefits paid (a) | (65.6 | ) | (78.6 | ) | (4.2 | ) | (3.4 | ) | |||||||||||||||||
Settlements (b) | (86.6 | ) | — | — | — | ||||||||||||||||||||
Fair value of plan assets at end of year | $ | 1,042.00 | $ | 959.7 | $ | 0.3 | $ | 0.3 | |||||||||||||||||
Projected benefit obligation at beginning of year | $ | 1,210.60 | $ | 1,400.10 | $ | 31.4 | $ | 42.4 | |||||||||||||||||
Interest cost on projected benefit obligations | 58.9 | 52.5 | 1.3 | 1.4 | |||||||||||||||||||||
Service costs | 8.2 | 10.5 | — | — | |||||||||||||||||||||
Participant contributions | — | — | 0.4 | 1.5 | |||||||||||||||||||||
Plan amendments | — | — | (0.2 | ) | (0.8 | ) | |||||||||||||||||||
Actuarial (gain) loss | 206.3 | (173.9 | ) | 3.4 | (9.7 | ) | |||||||||||||||||||
Benefits paid (a) | (65.6 | ) | (78.6 | ) | (4.2 | ) | (3.4 | ) | |||||||||||||||||
Settlements (b) | (86.6 | ) | — | (1.5 | ) | — | |||||||||||||||||||
Projected benefit obligation at end of year | $ | 1,331.80 | $ | 1,210.60 | $ | 30.6 | $ | 31.4 | |||||||||||||||||
Plan assets less than projected benefit obligation recognized | |||||||||||||||||||||||||
in the consolidated balance sheet: | |||||||||||||||||||||||||
Current liabilities | $ | (0.8 | ) | $ | (83.8 | ) | $ | (2.3 | ) | $ | (2.6 | ) | |||||||||||||
Noncurrent liabilities | (289.0 | ) | (167.1 | ) | (28.0 | ) | (28.5 | ) | |||||||||||||||||
Funded status recognized in the consolidated balance sheets | $ | (289.8 | ) | $ | (250.9 | ) | $ | (30.3 | ) | $ | (31.1 | ) | |||||||||||||
Amounts recognized in accumulated other comprehensive | |||||||||||||||||||||||||
income: | |||||||||||||||||||||||||
Net actuarial loss | $ | — | $ | — | $ | (5.8 | ) | $ | (2.6 | ) | |||||||||||||||
Prior service credits | 0.5 | 0.6 | 29.2 | 44.9 | |||||||||||||||||||||
Net amount recognized in accumulated other comprehensive | $ | 0.5 | $ | 0.6 | $ | 23.4 | $ | 42.3 | |||||||||||||||||
income | |||||||||||||||||||||||||
(a) | During both 2014 and 2013, pension benefits paid from Windstream’s assets totaled $0.8 million and $0.8 million, respectively. All postretirement benefits in both years were paid from Windstream’s assets. | ||||||||||||||||||||||||
(b) | In an effort to reduce our long-term pension obligations and administrative expenses of the Windstream Pension Plan, during the fourth quarter of 2014, we offered to certain eligible participants of the plan the option to receive a single lump sum payment in full settlement of all future pension benefits earned by the participant from prior service to Windstream. Individuals eligible for the voluntary lump sum payment option were former employees and certain of their beneficiaries with termination dates on or prior to June 7, 2014 who had not yet commenced their pension benefit payments. The calculated amount of the single lump sum payment was the actuarial equivalent of the participant’s vested accrued pension benefit as of December 2014. All lump-sum payments were made from existing plan assets. | ||||||||||||||||||||||||
Pension And Other Postretirement Benefits, Expected Amortization Of Accumulated Other Comprehensive Income, Disclosure | Estimated amounts to be amortized from accumulated other comprehensive income into net periodic benefit (income) expense in 2015, including executive retirement agreements, are as follows: | ||||||||||||||||||||||||
(Millions) | Pension | Postretirement | |||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
Net actuarial loss | $ | — | $ | 0.8 | |||||||||||||||||||||
Prior service credits | $ | (0.1 | ) | $ | (5.2 | ) | |||||||||||||||||||
Pension and Other Postretirement Benefits, Net Periodic Benefit Costs Weighted Average Assumptions Disclosure | Actuarial assumptions used to calculate pension and postretirement benefits (income) expense were as follows for the years ended December 31: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
(Millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Discount rate | 5.01 | % | 3.85 | % | 4.64 | % | 4.76 | % | (a) | 3.87 | % | 4.58 | % | ||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 8 | % | 7 | % | 7 | % | 8 | % | |||||||||||||
Rate of compensation increase | 2 | % | 2 | % | 4.17 | % | — | % | — | % | — | % | |||||||||||||
(a) | As a result of the various remeasurements of our postretirement benefit obligations completed in 2013 previously discussed, key assumptions including the discount rate were updated as of each remeasurement date. | ||||||||||||||||||||||||
Benefit Obligations Weighted Average Assumptions Disclosure | Actuarial assumptions used to calculate the projected benefit obligations were as follows at December 31: | ||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||
Discount rate | 4.14 | % | 5.01 | % | 4.21 | % | 4.99 | % | |||||||||||||||||
Expected return on plan assets | 7 | % | 7 | % | 7 | % | 7 | % | |||||||||||||||||
Rate of compensation increase | 2 | % | 2 | % | — | % | — | % | |||||||||||||||||
Health Care Cost Trend Rates Assumptions Disclosure | Information regarding the healthcare cost trend rate was as follows for the years ended December 31: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Healthcare cost trend rate assumed for next year | 7.5 | % | 8 | % | |||||||||||||||||||||
Rate that the cost trend ultimately declines to | 5 | % | 5 | % | |||||||||||||||||||||
Year that the rate reaches the terminal rate | 2020 | 2020 | |||||||||||||||||||||||
Weighted-Average Allocation of Assets Related to Defined Benefit Plans Disclosure | The asset allocation for our pension plan by asset category was as follows for the years ended December 31: | ||||||||||||||||||||||||
Target Allocation | Percentage of Plan Assets | ||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | ||||||||||||||||||||||
Equity securities | 19.6% - 31.6% | 26.9 | % | 27.7 | % | ||||||||||||||||||||
Fixed income securities | 40.3% - 67.3% | 53.9 | % | 52.4 | % | ||||||||||||||||||||
Alternative investments | 14.1% - 24.1% | 18.2 | % | 15 | % | ||||||||||||||||||||
Money market and other short-term interest bearing securities | 0.0% - 4.0% | 1 | % | 4.9 | % | ||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | The fair values of our pension plan assets were determined using the following inputs as of December 31, 2014: | ||||||||||||||||||||||||
Quoted Price in | Significant | Significant | |||||||||||||||||||||||
Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||||||||||
(Millions) | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Value | |||||||||||||||||||||||||
Money market funds (a) | $ | 42.4 | $ | — | $ | 42.4 | $ | — | |||||||||||||||||
Guaranteed annuity contract (b) | 1.4 | — | — | 1.4 | |||||||||||||||||||||
Common collective trust funds (c) | 330.8 | — | 330.8 | — | |||||||||||||||||||||
Government and agency securities (d) | 285.6 | — | 285.6 | — | |||||||||||||||||||||
Corporate bonds and asset backed securities (d) | 34.4 | — | 34.4 | — | |||||||||||||||||||||
Common and preferred stocks - domestic (d) | 54.8 | 54.7 | — | 0.1 | |||||||||||||||||||||
Common and preferred stocks - international (d) | 25.3 | 25.3 | — | — | |||||||||||||||||||||
Derivative financial instruments (e) | 16.9 | — | 16.9 | — | |||||||||||||||||||||
Hedge fund of funds (f) | 61.9 | — | — | 61.9 | |||||||||||||||||||||
Mutual fund (d) | 66.7 | 66.7 | — | — | |||||||||||||||||||||
Real estate and private equity funds (g) | 138.2 | — | — | 138.2 | |||||||||||||||||||||
Other (h) | 0.6 | 0.6 | — | — | |||||||||||||||||||||
Total investments | $ | 1,059.00 | $ | 147.3 | $ | 710.1 | $ | 201.6 | |||||||||||||||||
Dividends and interest receivable | 3.7 | ||||||||||||||||||||||||
Pending trades and other liabilities | (20.7 | ) | |||||||||||||||||||||||
Total plan assets | $ | 1,042.00 | |||||||||||||||||||||||
The fair values of our pension plan assets were determined using the following inputs as of December 31, 2013: | |||||||||||||||||||||||||
Quoted Price in | Significant | Significant | |||||||||||||||||||||||
Active | Other | Unobservable | |||||||||||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||||||||||
(Millions) | Fair | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Value | |||||||||||||||||||||||||
Money market funds (a) | $ | 37 | $ | — | $ | 37 | $ | — | |||||||||||||||||
Guaranteed annuity contract (b) | 1.9 | — | — | 1.9 | |||||||||||||||||||||
Common collective trust funds (c) (1) | 323.7 | — | 323.7 | — | |||||||||||||||||||||
Government and agency securities (d) | 234.4 | — | 234.4 | — | |||||||||||||||||||||
Corporate bonds and asset backed securities (d) | 94.5 | — | 94.5 | — | |||||||||||||||||||||
Common and preferred stocks - domestic (d) | 69.4 | 69.3 | — | 0.1 | |||||||||||||||||||||
Common stock - Windstream Holdings (d) | 26.3 | 26.3 | — | — | |||||||||||||||||||||
Common and preferred stocks - international (d) | 24.1 | 24.1 | — | — | |||||||||||||||||||||
Derivative financial instruments (e) | (25.1 | ) | 0.1 | (25.2 | ) | — | |||||||||||||||||||
Hedge fund of funds (f) | 60.2 | — | — | 60.2 | |||||||||||||||||||||
Mutual fund (d) (1) | 59.4 | 59.4 | — | — | |||||||||||||||||||||
Real estate and private equity funds (g) | 52.8 | — | — | 52.8 | |||||||||||||||||||||
Other (h) | 1.1 | 1.1 | — | — | |||||||||||||||||||||
Total investments | $ | 959.7 | $ | 180.3 | $ | 664.4 | $ | 115 | |||||||||||||||||
Dividends and interest receivable | 3.9 | ||||||||||||||||||||||||
Pending trades | (3.9 | ) | |||||||||||||||||||||||
Total plan assets | $ | 959.7 | |||||||||||||||||||||||
7. Employee Benefit Plans and Postretirement Benefits, Continued: | |||||||||||||||||||||||||
-1 | Amount reflects the correction of an immaterial error for a mutual fund investment previously reported as a common collective trust fund in Level 2 that should have been reported as a Level 1. | ||||||||||||||||||||||||
(a) | Money market funds are based on the fair value of the underlying assets held as determined by the fund manager on the last business day of the year. The underlying assets are mostly comprised of certificates of deposit, time deposits and commercial paper valued at amortized cost. | ||||||||||||||||||||||||
(b) | The guaranteed annuity contract is based on the value of the underlying contracts adjusted to market value which recognizes that either long-term assets would have to be sold before contract maturity or new contributions by other contract holders would have to be exchanged for funds being transferred, precluding these contributions from being invested at their current state of return. | ||||||||||||||||||||||||
(c) | Units in common collective trust funds are valued by reference to the funds’ underlying assets and based on the net asset value as reported by the fund manager on the last business day of the Plan year. The underlying assets are mostly comprised of publicly traded equity securities and fixed income securities. These securities are valued at the official closing price of, or the last reported sale prices as of the close of business or, in the absence of any sales, at the latest available bid price. | ||||||||||||||||||||||||
(d) | Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and registered investment companies traded in active markets on securities exchanges are valued based on quoted market prices on the last day of the Plan year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securities that trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. | ||||||||||||||||||||||||
(e) | Derivative financial instruments consist primarily of swaps and are valued at fair value based on models that reflect the contractual terms of the instruments. Inputs include primarily observable market information, such as swap curves, benchmark yields, rating updates and interdealer broker quotes at the end of the Plan year. | ||||||||||||||||||||||||
(f) | Hedge funds of funds hold a portfolio of other investment funds instead of directly investing in specific securities, commodities or other financial instruments. The funds are valued based on the net asset value of the fund determined by the fund manager on the last business day of the Plan year. The net asset value is derived from the fair value of each underlying fund comprising the hedge fund of funds. | ||||||||||||||||||||||||
(g) | The real estate fund is valued based on the net asset value of the fund on the last business day of the Plan year. The net asset value is derived from the fair value of the underlying net assets of the fund. Private equity funds consist of investments in limited partnerships and are valued based on the Plan’s capital account balance at year end as reported in the audited financial statements of the partnership. This category also includes the contributed real estate properties we are leasing back from the plan. The fair value of these properties is based on independent appraisals. | ||||||||||||||||||||||||
(h) | Other investments include warrants, interest bearing cash and investments in foreign currency. These investments are valued at their quoted market price on the last day of the Plan year. Investments traded in markets that are not considered active are valued based on a compilation of primarily observable market information or a broker quote. | ||||||||||||||||||||||||
Pension Plan Assets, Unobservable Input Reconciliation | The following is a reconciliation of the beginning and ending balances of pension plan assets that are measured at fair value using significant unobservable input: | ||||||||||||||||||||||||
(Millions) | Domestic equities | Hedge fund of funds | Real estate and private equity funds | Guaranteed annuity contract | Total | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 0.1 | $ | — | $ | 44.4 | $ | 2.3 | $ | 46.8 | |||||||||||||||
Gains on plan assets still held at year-end | — | 2.7 | 4.3 | 0.2 | 7.2 | ||||||||||||||||||||
Purchases and sales, net | — | 57.5 | 4.1 | (0.6 | ) | 61 | |||||||||||||||||||
Transfers in and/or out of level 3 | — | — | — | — | — | ||||||||||||||||||||
Balance at December 31, 2013 | 0.1 | 60.2 | 52.8 | 1.9 | 115 | ||||||||||||||||||||
Gains related to plan assets sold during the year | — | — | 0.9 | — | 0.9 | ||||||||||||||||||||
Gains on plan assets still held at year-end | — | 1.7 | 5.7 | 0.1 | 7.5 | ||||||||||||||||||||
Purchases and sales, net | — | — | 78.8 | (0.6 | ) | 78.2 | |||||||||||||||||||
Transfers in and/or out of level 3 | — | — | — | — | — | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 0.1 | $ | 61.9 | $ | 138.2 | $ | 1.4 | $ | 201.6 | |||||||||||||||
Pension and Other Postretirement Benefits, Expected Benefit Payments Disclosure | Estimated future employer contributions, benefit payments, including executive retirement agreements, are as follows as of December 31, 2014: | ||||||||||||||||||||||||
(Millions) | Pension | Postretirement | |||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||
Expected employer contributions in 2015 | $ | 0.8 | $ | 2.3 | |||||||||||||||||||||
Expected benefit payments: | |||||||||||||||||||||||||
2015 | $ | 78.4 | $ | 2.3 | |||||||||||||||||||||
2016 | 79.3 | 2.2 | |||||||||||||||||||||||
2017 | 81.4 | 2.1 | |||||||||||||||||||||||
2018 | 81.4 | 1.9 | |||||||||||||||||||||||
2019 | 83.1 | 1.8 | |||||||||||||||||||||||
2020-2024 | 420.5 | 6.7 | |||||||||||||||||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans: (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of Nonvested Share Activity | The vesting periods and grant date fair value for restricted stock and restricted stock units issued was as follows for the years ended December 31: | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(Thousands) | Number of | Number of | Number of | |||||||||||
Shares | Shares | Shares | ||||||||||||
Vest ratably over a three-year service period | 2,929.30 | 2,254.00 | 1,543.70 | |||||||||||
Vest ratably over a two-year service period | 18.3 | 68.4 | — | |||||||||||
Vest variably over a three-year service period | 247.3 | 186.1 | 54.7 | |||||||||||
Vest contingently over a three-year performance period | 1,176.30 | 786.7 | 723.5 | |||||||||||
Vest one year from date of grant, service based - granted to | 121 | 81.5 | 51.4 | |||||||||||
non-employee directors | ||||||||||||||
Vest three years from date of grant, service based | 189.3 | — | 4 | |||||||||||
Total granted | 4,681.50 | 3,376.70 | 2,377.30 | |||||||||||
Grant date fair value (Millions) | $ | 39.3 | $ | 32.6 | $ | 29.4 | ||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | Restricted stock and restricted stock unit activity for the year ended December 31, 2014 was as follows: | |||||||||||||
(Thousands) | Weighted | |||||||||||||
Underlying Number of | Average Fair | |||||||||||||
Shares | Value | |||||||||||||
Non-vested at December 31, 2013 | 5,259.50 | $ | 10.75 | |||||||||||
Granted | 4,681.50 | $ | 8.39 | |||||||||||
Vested | (2,548.3 | ) | $ | 11.19 | ||||||||||
Forfeited | (1,524.7 | ) | $ | 8.85 | ||||||||||
Non-vested at December 31, 2014 | 5,868.00 | $ | 9.17 | |||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity for the year ended December 31, 2014: | |||||||||||||
(Thousands) | Weighted | (Years) | (Millions)Aggregate Intrinsic | |||||||||||
Number of | Average | Weighted | Value | |||||||||||
Shares Underlying Options | Exercise | Average | ||||||||||||
Price | Remaining Contractual Life | |||||||||||||
Outstanding at December 31, 2013 | 1,464.40 | $ | 12.29 | |||||||||||
Granted | — | $ | — | |||||||||||
Exercised | (228.2 | ) | $ | 6.84 | ||||||||||
Canceled | (370.0 | ) | $ | 13.78 | ||||||||||
Forfeited | (12.4 | ) | $ | 8.93 | ||||||||||
Outstanding at December 31, 2014 | 853.8 | $ | 13.15 | 2.8 | $ | 0.8 | ||||||||
Vested or expected to vest at December 31, 2014 | 834.1 | $ | 13.26 | 2.7 | $ | 0.8 | ||||||||
Exercisable at December 31, 2014 | 826.1 | $ | 13.3 | 2.7 | $ | 0.8 | ||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes stock option information as of December 31, 2014: | |||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Range of Exercise Prices | (Thousands) | Weighted | (Thousands) | Weighted | ||||||||||
Number of | Average | Number of | Average | |||||||||||
Options | Exercise | Options | Exercise | |||||||||||
Price | Price | |||||||||||||
$1.96-$4.70 | 163.2 | $ | 4.1 | 163.2 | $ | 4.1 | ||||||||
$4.71-$8.30 | 155 | $ | 7.29 | 135.1 | $ | 7.15 | ||||||||
$8.31-$14.00 | 175.1 | $ | 11.6 | 167.3 | $ | 11.65 | ||||||||
$14.01-$29.27 | 360.5 | $ | 20.53 | 360.5 | $ | 20.53 | ||||||||
853.8 | $ | 13.15 | 826.1 | $ | 13.3 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | A summary of share-based compensation expense was as follows for the years ended December 31: | |||||||||||||
(Millions) | 2014 | 2013 | 2012 | |||||||||||
Restricted stock, restricted units and stock options | $ | 22.1 | $ | 26.8 | $ | 25.4 | ||||||||
Employee savings plan (See Note 7) | 18.3 | 18.1 | 17.8 | |||||||||||
Executive and management incentive compensation plans | 1.4 | — | — | |||||||||||
Share-based compensation expense | $ | 41.8 | $ | 44.9 | $ | 43.2 | ||||||||
Merger_Integration_and_Restruc1
Merger, Integration and Restructuring Charges: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Merger Integration and Restructuring Charges [Abstract] | |||||||||||||
Schedule of Merger, Integration and Restructuring Activities | The following is a summary of the merger, integration and restructuring charges recorded for the years ended December 31: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Merger and integration costs | |||||||||||||
Transaction costs associated with acquisitions | $ | — | $ | — | $ | 7.1 | |||||||
Employee related transition costs | — | 7.8 | 20.3 | ||||||||||
Information technology conversion costs | 20.8 | 9.5 | 6.1 | ||||||||||
Rebranding, consulting and other costs | 19.6 | 12.9 | 31.9 | ||||||||||
Total merger and integration costs | 40.4 | 30.2 | 65.4 | ||||||||||
Restructuring charges | 35.9 | 8.6 | 27.2 | ||||||||||
Total merger, integration and restructuring charges | $ | 76.3 | $ | 38.8 | $ | 92.6 | |||||||
Schedule of Restructuring and Reorganization Costs (Benefits), Net | The following is a summary of the activity related to the liabilities associated with our merger, integration and restructuring charges at December 31: | ||||||||||||
(Millions) | 2014 | 2013 | |||||||||||
Balance, beginning of period | $ | 14 | $ | 20.1 | |||||||||
Merger, integration and restructuring charges | 76.3 | 38.8 | |||||||||||
Cash outlays during the period | (79.1 | ) | (44.9 | ) | |||||||||
Balance, end of period | $ | 11.2 | $ | 14 | |||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||
Schedule of Accumulated Other Comprehensive Income | Accumulated other comprehensive income balances, net of tax, were as follows for the years ended December 31: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Pension and postretirement plans | $ | 14.5 | $ | 26.4 | $ | 43.9 | |||||||
Unrealized holding gains (losses) on interest rate swaps | |||||||||||||
Designated portion | 3.1 | 17.4 | (9.1 | ) | |||||||||
De-designated portion | (5.5 | ) | (15.3 | ) | (28.4 | ) | |||||||
Accumulated other comprehensive income | $ | 12.1 | $ | 28.5 | $ | 6.4 | |||||||
Changes in accumulated other comprehensive income, net of tax | Changes in accumulated other comprehensive (loss) income balances, net of tax, were as follows: | ||||||||||||
(Millions) | Gains (Losses) | Pension and | Total | ||||||||||
on Interest | Postretirement | ||||||||||||
Rate Swaps | Plans | ||||||||||||
Balance at December 31, 2013 | $ | 2.1 | $ | 26.4 | $ | 28.5 | |||||||
Other comprehensive loss before reclassifications | (14.3 | ) | (2.2 | ) | (16.5 | ) | |||||||
Amounts reclassified from other accumulated comprehensive income (a) | 9.8 | (9.7 | ) | 0.1 | |||||||||
Balance at December 31, 2014 | $ | (2.4 | ) | $ | 14.5 | $ | 12.1 | ||||||
(a) | See separate table below for details about these reclassifications. | ||||||||||||
Reclassifications out of accumulated other comprehensive income | Reclassifications out of accumulated other comprehensive income were as follows for the years ended December 31: | ||||||||||||
Details about Accumulated Other | (Millions) | Affected Line Item in the | |||||||||||
Comprehensive Income Components | Amount Reclassified from | Consolidated Statements | |||||||||||
Accumulated Other | of Operations | ||||||||||||
Comprehensive Income | |||||||||||||
2014 | 2013 | ||||||||||||
Losses on interest rate swaps: | |||||||||||||
Amortization of unrealized losses on | $ | 15.8 | $ | 35.9 | Interest expense | ||||||||
de-designated interest rate swaps | |||||||||||||
15.8 | 35.9 | (Loss) income from continuing | |||||||||||
operations before income taxes | |||||||||||||
(6.0 | ) | (13.7 | ) | Income tax (benefit) expense | |||||||||
9.8 | 22.2 | Net (loss) income | |||||||||||
Pension and postretirement plans: | |||||||||||||
Plan curtailments and settlements (a) | (10.0 | ) | (31.8 | ) | |||||||||
Amortization of net actuarial loss (a) | 0.1 | 1.7 | |||||||||||
Amortization of prior service credits (a) | (5.9 | ) | (8.7 | ) | |||||||||
(15.8 | ) | (38.8 | ) | (Loss) income from continuing | |||||||||
operations before income taxes | |||||||||||||
6.1 | 14.7 | Income tax (benefit) expense | |||||||||||
(9.7 | ) | (24.1 | ) | Net (loss) income | |||||||||
Total reclassifications for the period, | $ | 0.1 | $ | (1.9 | ) | Net (loss) income | |||||||
net of tax | |||||||||||||
(a) | These accumulated other comprehensive income components are included in the computation of net periodic benefit (income) expense. See Note 7 for additional details. |
Income_Taxes_Income_Taxes_Tabl
Income Taxes: Income Taxes: (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Disclosure Table | Income tax (benefit) expense was as follows for the years ended December 31: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Current: | |||||||||||||
Federal | $ | 0.8 | $ | (27.0 | ) | $ | 6.2 | ||||||
State | (12.5 | ) | (2.5 | ) | 13 | ||||||||
(11.7 | ) | (29.5 | ) | 19.2 | |||||||||
Deferred: | |||||||||||||
Federal | (18.3 | ) | 104 | 84 | |||||||||
State | 4.9 | 30.8 | (5.0 | ) | |||||||||
(13.4 | ) | 134.8 | 79 | ||||||||||
Income tax (benefit) expense | $ | (25.1 | ) | $ | 105.3 | $ | 98.2 | ||||||
Income Tax Rate Reconciliation | Differences between the federal income tax statutory rates and effective income tax rates, which include both federal and state income taxes, were as follows for the years ended December 31: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
Increase (decrease) | |||||||||||||
State income taxes, net of federal benefit | 4.7 | 3.3 | 2 | ||||||||||
Adjust deferred taxes for state net operating loss carryforward | — | (0.1 | ) | — | |||||||||
Transaction costs | (8.0 | ) | — | — | |||||||||
Tax refunds | 7.3 | — | — | ||||||||||
Valuation allowance | (15.4 | ) | (0.3 | ) | — | ||||||||
Income tax reserves | (0.4 | ) | (5.4 | ) | — | ||||||||
Research and development credit | 12.1 | (2.2 | ) | — | |||||||||
Disallowed loss | (2.9 | ) | — | — | |||||||||
Tax credits | 2.2 | — | — | ||||||||||
Other items, net | 4.3 | 0.6 | 0.1 | ||||||||||
Effective income tax rate | 38.9 | % | 30.9 | % | 37.1 | % | |||||||
Components of Deferred Tax Assets and Liabilities | The significant components of the net deferred income tax liability (asset) were as follows at December 31: | ||||||||||||
(Millions) | 2014 | 2013 | |||||||||||
Property, plant and equipment | $ | 1,146.70 | $ | 1,278.40 | |||||||||
Goodwill and other intangible assets | 1,312.80 | 1,322.50 | |||||||||||
Operating loss and credit carryforward | (604.0 | ) | (677.8 | ) | |||||||||
Postretirement and other employee benefits | (121.8 | ) | (108.6 | ) | |||||||||
Unrealized holding loss and interest rate swaps | (5.3 | ) | (1.4 | ) | |||||||||
Deferred compensation | (5.7 | ) | (5.2 | ) | |||||||||
Bad debt | (32.1 | ) | (30.3 | ) | |||||||||
Deferred debt costs | (12.9 | ) | (17.7 | ) | |||||||||
Restricted stock | (8.5 | ) | (12.1 | ) | |||||||||
Other, net | 9.1 | (35.9 | ) | ||||||||||
1,678.30 | 1,711.90 | ||||||||||||
Valuation allowance | 94.9 | 84.9 | |||||||||||
Deferred income taxes, net | $ | 1,773.20 | $ | 1,796.80 | |||||||||
Deferred tax assets | $ | (898.0 | ) | $ | (930.8 | ) | |||||||
Deferred tax liabilities | 2,671.20 | 2,727.60 | |||||||||||
Deferred income taxes, net | $ | 1,773.20 | $ | 1,796.80 | |||||||||
Unrecognized Tax Benefits Reconciliation, Table | We account for uncertainty in taxes in accordance with authoritative guidance. A reconciliation of the unrecognized tax benefits is as follows: | ||||||||||||
(Millions) | 2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 4.6 | $ | 18.3 | $ | 18.8 | |||||||
Additions based on tax positions related to current year | 2.3 | 2.7 | — | ||||||||||
Additions based on tax positions of prior years | — | 0.7 | — | ||||||||||
Reductions for tax positions of prior years | (0.1 | ) | (0.2 | ) | (0.5 | ) | |||||||
Reduction as a result of a lapse of the applicable statute of | (0.2 | ) | (16.9 | ) | — | ||||||||
limitations | |||||||||||||
Settlements | (1.0 | ) | — | — | |||||||||
Ending balance | $ | 5.6 | $ | 4.6 | $ | 18.3 | |||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating Leases of Lessee Disclosure | Minimum rental commitments for all non-cancellable operating leases, consisting principally of leases for network facilities, real estate, office space and office equipment were as follows as of December 31, 2014: | |||
Year | (Millions) | |||
2015 | $ | 120.4 | ||
2016 | 99.3 | |||
2017 | 85 | |||
2018 | 70.5 | |||
2019 | 59.6 | |||
Thereafter | 220.8 | |||
Total | $ | 655.6 | ||
Supplemental_Guarantor_Informa1
Supplemental Guarantor Information: (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||||
(Millions) | For the Year Ended | For the period of August 30, 2013 | |||||||||||||||||||||||
31-Dec-14 | (date of formation) | ||||||||||||||||||||||||
to December 31, 2013 | |||||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Selling, general, and administrative | $ | 2.3 | $ | 0.5 | |||||||||||||||||||||
Total costs and expenses | 2.3 | 0.5 | |||||||||||||||||||||||
Operating loss | (2.3 | ) | (0.5 | ) | |||||||||||||||||||||
Loss before income taxes and equity in subsidiaries | (2.3 | ) | (0.5 | ) | |||||||||||||||||||||
Income tax benefit | (0.9 | ) | (0.2 | ) | |||||||||||||||||||||
Loss before equity in subsidiaries | (1.4 | ) | (0.3 | ) | |||||||||||||||||||||
Equity (losses) earnings from subsidiaries | (38.1 | ) | 137.6 | ||||||||||||||||||||||
Net (loss) income | $ | (39.5 | ) | $ | 137.3 | ||||||||||||||||||||
Comprehensive (loss) income | $ | (55.9 | ) | $ | 134.4 | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||||||
Service revenues | $ | — | $ | 1,029.10 | $ | 4,642.50 | $ | (24.0 | ) | $ | 5,647.60 | ||||||||||||||
Product sales | — | 41.1 | 140.8 | — | 181.9 | ||||||||||||||||||||
Total revenues and sales | — | 1,070.20 | 4,783.30 | (24.0 | ) | 5,829.50 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of services | — | 392.3 | 2,346.60 | (19.6 | ) | 2,719.30 | |||||||||||||||||||
Cost of products sold | — | 39.8 | 116.8 | — | 156.6 | ||||||||||||||||||||
Selling, general and administrative | — | 99.3 | 886.6 | (4.4 | ) | 981.5 | |||||||||||||||||||
Depreciation and amortization | 21.9 | 300 | 1,064.50 | — | 1,386.40 | ||||||||||||||||||||
Merger and integration costs | — | — | 40.4 | — | 40.4 | ||||||||||||||||||||
Restructuring charges | — | 6.1 | 29.8 | — | 35.9 | ||||||||||||||||||||
Total costs and expenses | 21.9 | 837.5 | 4,484.70 | (24.0 | ) | 5,320.10 | |||||||||||||||||||
Operating (loss) income | (21.9 | ) | 232.7 | 298.6 | — | 509.4 | |||||||||||||||||||
Earnings from consolidated subsidiaries | 217.3 | 30.6 | 3.7 | (251.6 | ) | — | |||||||||||||||||||
Other (expense) income, net | (0.2 | ) | 162.9 | (162.6 | ) | — | 0.1 | ||||||||||||||||||
Intercompany interest income (expense) | 127.2 | (53.7 | ) | (73.5 | ) | — | — | ||||||||||||||||||
Interest expense | (523.9 | ) | (6.4 | ) | (41.5 | ) | — | (571.8 | ) | ||||||||||||||||
(Loss) income before income taxes | (201.5 | ) | 366.1 | 24.7 | (251.6 | ) | (62.3 | ) | |||||||||||||||||
Income tax (benefit) expense | (163.4 | ) | 126 | 13.2 | — | (24.2 | ) | ||||||||||||||||||
Net (loss) income | $ | (38.1 | ) | $ | 240.1 | $ | 11.5 | $ | (251.6 | ) | $ | (38.1 | ) | ||||||||||||
Comprehensive (loss) income | $ | (54.5 | ) | $ | 240.1 | $ | 11.5 | $ | (251.6 | ) | $ | (54.5 | ) | ||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||||||
Service revenues | $ | — | $ | 1,065.60 | $ | 4,740.30 | $ | (30.4 | ) | $ | 5,775.50 | ||||||||||||||
Product sales | — | 54.4 | 158.2 | — | 212.6 | ||||||||||||||||||||
Total revenues and sales | — | 1,120.00 | 4,898.50 | (30.4 | ) | 5,988.10 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of services | — | 339.6 | 2,178.10 | (25.6 | ) | 2,492.10 | |||||||||||||||||||
Cost of products sold | — | 53.7 | 130.2 | — | 183.9 | ||||||||||||||||||||
Selling, general and administrative | — | 77.8 | 849.9 | (4.8 | ) | 922.9 | |||||||||||||||||||
Depreciation and amortization | 25 | 292.2 | 1,023.70 | — | 1,340.90 | ||||||||||||||||||||
Merger and integration costs | — | — | 30.2 | — | 30.2 | ||||||||||||||||||||
Restructuring charges | — | 1.6 | 7 | — | 8.6 | ||||||||||||||||||||
Total costs and expenses | 25 | 764.9 | 4,219.10 | (30.4 | ) | 4,978.60 | |||||||||||||||||||
Operating (loss) income | (25.0 | ) | 355.1 | 679.4 | — | 1,009.50 | |||||||||||||||||||
Earnings from consolidated subsidiaries | 526.1 | 53.3 | 5.6 | (585.0 | ) | — | |||||||||||||||||||
Other income (expense), net | 2.1 | 166.1 | (180.7 | ) | — | (12.5 | ) | ||||||||||||||||||
Loss on early extinguishment of debt | (17.2 | ) | — | (11.3 | ) | — | (28.5 | ) | |||||||||||||||||
Intercompany interest income (expense) | 134.5 | (61.1 | ) | (73.4 | ) | — | — | ||||||||||||||||||
Interest expense | (584.6 | ) | (5.8 | ) | (37.3 | ) | — | (627.7 | ) | ||||||||||||||||
Income from continuing operations before | 35.9 | 507.6 | 382.3 | (585.0 | ) | 340.8 | |||||||||||||||||||
income taxes | |||||||||||||||||||||||||
Income tax (benefit) expense | (205.4 | ) | 169.3 | 141.6 | — | 105.5 | |||||||||||||||||||
Income from continuing operations | 241.3 | 338.3 | 240.7 | (585.0 | ) | 235.3 | |||||||||||||||||||
Discontinued operations | — | — | 6 | — | 6 | ||||||||||||||||||||
Net income | $ | 241.3 | $ | 338.3 | $ | 246.7 | $ | (585.0 | ) | $ | 241.3 | ||||||||||||||
Comprehensive income | $ | 263.4 | $ | 338.3 | $ | 246.7 | $ | (585.0 | ) | $ | 263.4 | ||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||||||
Service revenues | $ | — | $ | 1,095.30 | $ | 4,838.40 | $ | (25.4 | ) | $ | 5,908.30 | ||||||||||||||
Product sales | — | 73 | 158.2 | — | 231.2 | ||||||||||||||||||||
Total revenues and sales | — | 1,168.30 | 4,996.60 | (25.4 | ) | 6,139.50 | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of services | — | 377.2 | 2,332.10 | (17.1 | ) | 2,692.20 | |||||||||||||||||||
Cost of products sold | — | 71.9 | 134.7 | — | 206.6 | ||||||||||||||||||||
Selling, general and administrative | — | 102.1 | 873.5 | (8.3 | ) | 967.3 | |||||||||||||||||||
Depreciation and amortization | 28.8 | 286.2 | 981.9 | — | 1,296.90 | ||||||||||||||||||||
Merger and integration costs | — | — | 65.4 | — | 65.4 | ||||||||||||||||||||
Restructuring charges | — | 4.4 | 22.8 | — | 27.2 | ||||||||||||||||||||
Total costs and expenses | 28.8 | 841.8 | 4,410.40 | (25.4 | ) | 5,255.60 | |||||||||||||||||||
Operating (loss) income | (28.8 | ) | 326.5 | 586.2 | — | 883.9 | |||||||||||||||||||
Earnings from consolidated subsidiaries | 432 | 41.8 | 4.6 | (478.4 | ) | — | |||||||||||||||||||
Other (expense) income, net | (4.4 | ) | 182.3 | (173.3 | ) | — | 4.6 | ||||||||||||||||||
Gain on early extinguishment of debt | — | — | 1.9 | — | 1.9 | ||||||||||||||||||||
Intercompany interest income (expense) | 135.3 | (66.0 | ) | (69.3 | ) | — | — | ||||||||||||||||||
Interest expense | (540.9 | ) | (5.4 | ) | (78.8 | ) | — | (625.1 | ) | ||||||||||||||||
(Loss) income from continuing operations | (6.8 | ) | 479.2 | 271.3 | (478.4 | ) | 265.3 | ||||||||||||||||||
before income taxes | |||||||||||||||||||||||||
Income tax (benefit) expense | (174.8 | ) | 163.9 | 109.1 | — | 98.2 | |||||||||||||||||||
Income from continuing operations | 168 | 315.3 | 162.2 | (478.4 | ) | 167.1 | |||||||||||||||||||
Discontinued operations | — | — | 0.9 | — | 0.9 | ||||||||||||||||||||
Net income | $ | 168 | $ | 315.3 | $ | 163.1 | $ | (478.4 | ) | $ | 168 | ||||||||||||||
Comprehensive income | $ | 172.5 | $ | 315.3 | $ | 163.1 | $ | (478.4 | ) | $ | 172.5 | ||||||||||||||
Condensed Consolidating Balance Sheet | BALANCE SHEETS | ||||||||||||||||||||||||
(Millions, except par value) | |||||||||||||||||||||||||
Assets | 2014 | 2013 | |||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||
Distributions receivable from Windstream Corp. | $ | 152.4 | $ | 150.7 | |||||||||||||||||||||
Other current assets | — | 0.1 | |||||||||||||||||||||||
Total current assets | 152.4 | 150.8 | |||||||||||||||||||||||
Investment in affiliate | 224.8 | 840.5 | |||||||||||||||||||||||
Total Assets | $ | 377.2 | $ | 991.3 | |||||||||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accrued dividends | $ | 152.4 | $ | 151.1 | |||||||||||||||||||||
Total current liabilities | 152.4 | 151.1 | |||||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||||||
Common stock, $0.0001 par value, 1,000.0 shares authorized, | |||||||||||||||||||||||||
602.9 and 596.2 shares issued and outstanding | 0.1 | 0.1 | |||||||||||||||||||||||
Additional paid-in capital | 212.6 | 811.6 | |||||||||||||||||||||||
Accumulated other comprehensive income | 12.1 | 28.5 | |||||||||||||||||||||||
Retained earnings | — | — | |||||||||||||||||||||||
Total shareholders’ equity | 224.8 | 840.2 | |||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 377.2 | $ | 991.3 | |||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 2.1 | $ | 51.7 | $ | (26.0 | ) | $ | 27.8 | ||||||||||||||
Restricted cash | 6.7 | — | — | — | 6.7 | ||||||||||||||||||||
Accounts receivable (less allowance for doubtful | — | 136.5 | 499 | — | 635.5 | ||||||||||||||||||||
accounts of $43.4) | |||||||||||||||||||||||||
Notes receivable - affiliate | — | 4.8 | — | (4.8 | ) | — | |||||||||||||||||||
Affiliates receivable, net | — | 1,057.70 | 2,066.90 | (3,124.6 | ) | — | |||||||||||||||||||
Inventories | — | 36.9 | 26.8 | — | 63.7 | ||||||||||||||||||||
Deferred income taxes | 67.4 | 10.5 | 27.5 | — | 105.4 | ||||||||||||||||||||
Prepaid expenses and other | 35.5 | 20.4 | 108.7 | — | 164.6 | ||||||||||||||||||||
Total current assets | 109.6 | 1,268.90 | 2,780.60 | (3,155.4 | ) | 1,003.70 | |||||||||||||||||||
Investments in consolidated subsidiaries | 10,001.30 | 965.6 | 255.6 | (11,222.5 | ) | — | |||||||||||||||||||
Notes receivable - affiliate | — | 317.7 | — | (317.7 | ) | — | |||||||||||||||||||
Goodwill | 1,649.50 | 825.6 | 1,877.70 | — | 4,352.80 | ||||||||||||||||||||
Other intangibles, net | 590.7 | 355.2 | 818.1 | — | 1,764.00 | ||||||||||||||||||||
Net property, plant and equipment | 9.8 | 1,269.40 | 4,133.10 | — | 5,412.30 | ||||||||||||||||||||
Other assets | 104.2 | 17.1 | 59.3 | — | 180.6 | ||||||||||||||||||||
Total Assets | $ | 12,465.10 | $ | 5,019.50 | $ | 9,924.40 | $ | (14,695.6 | ) | $ | 12,713.40 | ||||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||||
Current maturities of long-term debt | $ | 717.4 | $ | — | $ | 0.1 | $ | — | $ | 717.5 | |||||||||||||||
Current portion of interest rate swaps | 28.5 | — | — | — | 28.5 | ||||||||||||||||||||
Accounts payable | 2.1 | 86.9 | 314.3 | — | 403.3 | ||||||||||||||||||||
Affiliates payable, net | 3,277.00 | — | — | (3,124.6 | ) | 152.4 | |||||||||||||||||||
Notes payable - affiliate | — | — | 4.8 | (4.8 | ) | — | |||||||||||||||||||
Advance payments and customer deposits | — | 16.6 | 198.1 | — | 214.7 | ||||||||||||||||||||
Accrued taxes | 0.2 | 23.8 | 71.2 | — | 95.2 | ||||||||||||||||||||
Accrued interest | 94.3 | 2.1 | 6.1 | — | 102.5 | ||||||||||||||||||||
Other current liabilities | 32.3 | 18 | 278.6 | — | 328.9 | ||||||||||||||||||||
Total current liabilities | 4,151.80 | 147.4 | 873.2 | (3,129.4 | ) | 2,043.00 | |||||||||||||||||||
Long-term debt | 7,363.40 | 99.6 | 471.2 | — | 7,934.20 | ||||||||||||||||||||
Notes payable - affiliate | — | — | 317.7 | (317.7 | ) | — | |||||||||||||||||||
Deferred income taxes | 658.6 | 418.8 | 801.2 | — | 1,878.60 | ||||||||||||||||||||
Other liabilities | 66.5 | 45.7 | 520.6 | — | 632.8 | ||||||||||||||||||||
Total liabilities | 12,240.30 | 711.5 | 2,983.90 | (3,447.1 | ) | 12,488.60 | |||||||||||||||||||
Commitments and Contingencies (See Note 12) | |||||||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||||||
Common stock | — | 39.4 | 81.9 | (121.3 | ) | — | |||||||||||||||||||
Additional paid-in capital | 212.7 | 3,794.90 | 4,002.00 | (7,796.9 | ) | 212.7 | |||||||||||||||||||
Accumulated other comprehensive income | 12.1 | — | 14.5 | (14.5 | ) | 12.1 | |||||||||||||||||||
Retained earnings | — | 473.7 | 2,842.10 | (3,315.8 | ) | — | |||||||||||||||||||
Total shareholders’ equity | 224.8 | 4,308.00 | 6,940.50 | (11,248.5 | ) | 224.8 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,465.10 | $ | 5,019.50 | $ | 9,924.40 | $ | (14,695.6 | ) | $ | 12,713.40 | ||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 13.7 | $ | 0.7 | $ | 33.8 | $ | — | $ | 48.2 | |||||||||||||||
Restricted cash | 9.7 | — | — | — | 9.7 | ||||||||||||||||||||
Accounts receivable (less allowance for doubtful | — | 117.4 | 517.9 | — | 635.3 | ||||||||||||||||||||
accounts of $40.0) | |||||||||||||||||||||||||
Notes receivable - affiliate | — | 4.8 | — | (4.8 | ) | — | |||||||||||||||||||
Affiliates receivable, net | — | 743.7 | 1,864.50 | (2,608.2 | ) | — | |||||||||||||||||||
Inventories | — | 49.8 | 17.9 | — | 67.7 | ||||||||||||||||||||
Deferred income taxes | 202.1 | 10.5 | 28.9 | — | 241.5 | ||||||||||||||||||||
Prepaid expenses and other | 35.3 | 20.8 | 126.3 | — | 182.4 | ||||||||||||||||||||
Total current assets | 260.8 | 947.7 | 2,589.30 | (2,613.0 | ) | 1,184.80 | |||||||||||||||||||
Investments in consolidated subsidiaries | 9,997.50 | 936.7 | 291.1 | (11,225.3 | ) | — | |||||||||||||||||||
Notes receivable - affiliate | — | 321.3 | — | (321.3 | ) | — | |||||||||||||||||||
Goodwill | 1,649.50 | 825.6 | 1,856.30 | — | 4,331.40 | ||||||||||||||||||||
Other intangibles, net | 645 | 397.6 | 977.5 | — | 2,020.10 | ||||||||||||||||||||
Net property, plant and equipment | 10.2 | 1,350.90 | 4,341.50 | — | 5,702.60 | ||||||||||||||||||||
Other assets | 120.3 | 14.8 | 70.6 | — | 205.7 | ||||||||||||||||||||
Total Assets | $ | 12,683.30 | $ | 4,794.60 | $ | 10,126.30 | $ | (14,159.6 | ) | $ | 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 | 5 | 54.8 | 326.1 | — | 385.9 | ||||||||||||||||||||
Affiliates payable, net | 2,758.90 | — | — | (2,608.2 | ) | 150.7 | |||||||||||||||||||
Notes payable - affiliate | — | — | 4.8 | (4.8 | ) | — | |||||||||||||||||||
Advance payments and customer deposits | — | 17.4 | 206.1 | — | 223.5 | ||||||||||||||||||||
Accrued taxes | 0.2 | 33.8 | 70.3 | — | 104.3 | ||||||||||||||||||||
Accrued interest | 95.4 | 1.8 | 6.3 | — | 103.5 | ||||||||||||||||||||
Other current liabilities | 38.1 | 17.2 | 307.1 | — | 362.4 | ||||||||||||||||||||
Total current liabilities | 3,012.50 | 125 | 920.8 | (2,613.0 | ) | 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 | 724.7 | 421.7 | 891.9 | — | 2,038.30 | ||||||||||||||||||||
Other liabilities | 60.7 | 28.8 | 408.8 | — | 498.3 | ||||||||||||||||||||
Total liabilities | 11,842.80 | 675.1 | 3,020.50 | (2,934.3 | ) | 12,604.10 | |||||||||||||||||||
Commitments and Contingencies (See Note 12) | |||||||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||||||
Common stock | — | 39.4 | 81.9 | (121.3 | ) | — | |||||||||||||||||||
Additional paid-in capital | 812 | 3,657.50 | 3,978.80 | (7,636.3 | ) | 812 | |||||||||||||||||||
Accumulated other comprehensive income | 28.5 | — | 26.3 | (26.3 | ) | 28.5 | |||||||||||||||||||
Retained earnings | — | 422.6 | 3,018.80 | (3,441.4 | ) | — | |||||||||||||||||||
Total shareholders’ equity | 840.5 | 4,119.50 | 7,105.80 | (11,225.3 | ) | 840.5 | |||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,683.30 | $ | 4,794.60 | $ | 10,126.30 | $ | (14,159.6 | ) | $ | 13,444.60 | ||||||||||||||
Condensed Consolidating Statement of Cash Flows | STATEMENTS OF CASH FLOWS | ||||||||||||||||||||||||
(Millions) | For the Year Ended | For the period of August 30, 2013 | |||||||||||||||||||||||
31-Dec-14 | (date of formation) | ||||||||||||||||||||||||
to December 31, 2013 | |||||||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||||||
Net (loss) income | $ | (39.5 | ) | $ | 137.3 | ||||||||||||||||||||
Adjustments to reconcile net (loss) income to net cash provided from | |||||||||||||||||||||||||
operations: | |||||||||||||||||||||||||
Equity in losses (earnings) from subsidiaries | 38.1 | (137.6 | ) | ||||||||||||||||||||||
Changes in operating assets and liabilities, net: | |||||||||||||||||||||||||
Other current assets | — | (0.1 | ) | ||||||||||||||||||||||
Net cash used in operating activities | (1.4 | ) | (0.4 | ) | |||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Dividends paid to shareholders | (602.2 | ) | (149.0 | ) | |||||||||||||||||||||
Distributions from Windstream Corp | 603.6 | 149.4 | |||||||||||||||||||||||
Net cash provided by financing activities | 1.4 | 0.4 | |||||||||||||||||||||||
Change in cash and cash equivalents | — | — | |||||||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Beginning of period | — | — | |||||||||||||||||||||||
End of period | $ | — | $ | — | |||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||||||
Net cash (used in) provided from operations | $ | (129.2 | ) | $ | 500.8 | $ | 1,097.10 | $ | — | $ | 1,468.70 | ||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (1.8 | ) | (112.5 | ) | (672.2 | ) | — | (786.5 | ) | ||||||||||||||||
Broadband network expansion funded by | — | (0.3 | ) | (13.0 | ) | — | (13.3 | ) | |||||||||||||||||
stimulus grants | |||||||||||||||||||||||||
Changes in restricted cash | 3 | — | — | — | 3 | ||||||||||||||||||||
Grant funds received for broadband stimulus | 33.2 | — | — | — | 33.2 | ||||||||||||||||||||
projects | |||||||||||||||||||||||||
Grant funds received from Connect America Fund | — | 9.4 | 16.6 | — | 26 | ||||||||||||||||||||
Network expansion funded by Connect America | — | (1.3 | ) | (11.5 | ) | — | (12.8 | ) | |||||||||||||||||
Fund | |||||||||||||||||||||||||
Acquisition of a business | (22.6 | ) | — | — | — | (22.6 | ) | ||||||||||||||||||
Other, net | — | — | 3.9 | — | 3.9 | ||||||||||||||||||||
Net cash provided from (used in) | 11.8 | (104.7 | ) | (676.2 | ) | — | (769.1 | ) | |||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Distributions to Windstream Holdings, Inc. | (603.6 | ) | — | — | — | (603.6 | ) | ||||||||||||||||||
Repayments of debt and swaps | (1,394.4 | ) | — | (1.0 | ) | — | (1,395.4 | ) | |||||||||||||||||
Proceeds of debt issuance | 1,315.00 | — | — | — | 1,315.00 | ||||||||||||||||||||
Intercompany transactions, net | 795.9 | (398.3 | ) | (371.6 | ) | (26.0 | ) | — | |||||||||||||||||
Payments under capital lease obligations | — | — | (26.8 | ) | — | (26.8 | ) | ||||||||||||||||||
Other, net | (9.2 | ) | 3.6 | (3.6 | ) | — | (9.2 | ) | |||||||||||||||||
Net cash provided from (used in) financing | 103.7 | (394.7 | ) | (403.0 | ) | (26.0 | ) | (720.0 | ) | ||||||||||||||||
activities | |||||||||||||||||||||||||
(Decrease) increase in cash and cash equivalents | (13.7 | ) | 1.4 | 17.9 | (26.0 | ) | (20.4 | ) | |||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Beginning of period | 13.7 | 0.7 | 33.8 | — | 48.2 | ||||||||||||||||||||
End of period | $ | — | $ | 2.1 | $ | 51.7 | $ | (26.0 | ) | $ | 27.8 | ||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||||||
Net cash (used in) provided from operations | $ | (186.2 | ) | $ | 613.9 | $ | 1,092.10 | $ | — | $ | 1,519.80 | ||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (2.0 | ) | (134.6 | ) | (704.4 | ) | — | (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 stimulus | 68 | — | — | — | 68 | ||||||||||||||||||||
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) | 81.3 | (117.6 | ) | (671.3 | ) | — | (707.6 | ) | |||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Dividends paid to shareholders | (444.6 | ) | — | — | — | (444.6 | ) | ||||||||||||||||||
Distributions to Windstream Holdings, Inc. | (149.4 | ) | — | — | — | (149.4 | ) | ||||||||||||||||||
Repayments 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 | 273.1 | (500.3 | ) | 227.2 | — | — | |||||||||||||||||||
Payments under capital lease obligations | — | — | (23.9 | ) | — | (23.9 | ) | ||||||||||||||||||
Other, net | (6.7 | ) | 3.6 | (3.6 | ) | — | (6.7 | ) | |||||||||||||||||
Net cash provided from (used in) financing | 61.1 | (496.7 | ) | (460.4 | ) | — | (896.0 | ) | |||||||||||||||||
activities | |||||||||||||||||||||||||
Decrease in cash and cash equivalents | (43.8 | ) | (0.4 | ) | (39.6 | ) | — | (83.8 | ) | ||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Beginning of period | 57.5 | 1.1 | 73.4 | — | 132 | ||||||||||||||||||||
End of period | $ | 13.7 | $ | 0.7 | $ | 33.8 | $ | — | $ | 48.2 | |||||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | Guarantors | Non- | Eliminations | Consolidated | ||||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||||||
Net cash provided from operations | $ | 170.4 | $ | 475.2 | $ | 1,132.00 | $ | — | $ | 1,777.60 | |||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (0.7 | ) | (175.5 | ) | (925.0 | ) | — | (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 stimulus | 45.7 | — | — | — | 45.7 | ||||||||||||||||||||
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) investing | 34.6 | (141.9 | ) | (994.4 | ) | — | (1,101.7 | ) | |||||||||||||||||
activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Dividends paid to shareholders | (588.0 | ) | — | — | — | (588.0 | ) | ||||||||||||||||||
Repayments 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 | 177.9 | (336.9 | ) | 159 | — | — | |||||||||||||||||||
Payments under capital lease obligations | — | (0.1 | ) | (19.9 | ) | — | (20.0 | ) | |||||||||||||||||
Other, net | 0.7 | 3.6 | (3.6 | ) | — | 0.7 | |||||||||||||||||||
Net cash used in financing activities | (262.9 | ) | (333.4 | ) | (174.6 | ) | — | (770.9 | ) | ||||||||||||||||
Decrease in cash and cash equivalents | (57.9 | ) | (0.1 | ) | (37.0 | ) | — | (95.0 | ) | ||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Beginning of period | 115.4 | 1.2 | 110.4 | — | 227 | ||||||||||||||||||||
End of period | $ | 57.5 | $ | 1.1 | $ | 73.4 | $ | — | $ | 132 | |||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | PAETEC Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Revenues and sales: | |||||||||||||||||||||||||
Service revenues | $ | — | $ | — | $ | 1,948.60 | $ | 3,702.90 | $ | (3.9 | ) | $ | 5,647.60 | ||||||||||||
Product sales | — | — | 124.5 | 57.9 | (0.5 | ) | 181.9 | ||||||||||||||||||
Total revenues and sales | — | — | 2,073.10 | 3,760.80 | (4.4 | ) | 5,829.50 | ||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||
Cost of services | — | — | 1,245.80 | 1,476.60 | (3.1 | ) | 2,719.30 | ||||||||||||||||||
Cost of products sold | — | — | 102.6 | 54.4 | (0.4 | ) | 156.6 | ||||||||||||||||||
Selling, general and administrative | — | — | 541.2 | 441.1 | (0.8 | ) | 981.5 | ||||||||||||||||||
Depreciation and amortization | 21.9 | — | 423.3 | 941.2 | — | 1,386.40 | |||||||||||||||||||
Merger and integration costs | — | — | — | 40.4 | — | 40.4 | |||||||||||||||||||
Restructuring charges | — | — | 12.8 | 23.1 | — | 35.9 | |||||||||||||||||||
Total costs and expenses | 21.9 | — | 2,325.70 | 2,976.80 | (4.3 | ) | 5,320.10 | ||||||||||||||||||
Operating (loss) income | (21.9 | ) | — | (252.6 | ) | 784 | (0.1 | ) | 509.4 | ||||||||||||||||
Earnings (losses) from consolidated | 217.3 | (138.6 | ) | 0.1 | 0.6 | (79.4 | ) | — | |||||||||||||||||
subsidiaries | |||||||||||||||||||||||||
Other (expense) income, net | (0.2 | ) | — | 0.2 | 0.1 | — | 0.1 | ||||||||||||||||||
Intercompany interest income (expense) | 127.2 | — | — | (127.2 | ) | — | — | ||||||||||||||||||
Interest (expense) income | (523.9 | ) | (38.4 | ) | 0.3 | (9.8 | ) | — | (571.8 | ) | |||||||||||||||
(Loss) income before income taxes | (201.5 | ) | (177.0 | ) | (252.0 | ) | 647.7 | (79.5 | ) | (62.3 | ) | ||||||||||||||
Income tax (benefit) expense | (163.4 | ) | (16.6 | ) | (91.9 | ) | 247.7 | — | (24.2 | ) | |||||||||||||||
Net (loss) income | $ | (38.1 | ) | $ | (160.4 | ) | $ | (160.1 | ) | $ | 400 | $ | (79.5 | ) | $ | (38.1 | ) | ||||||||
Comprehensive (loss) income | $ | (54.5 | ) | $ | (160.4 | ) | $ | (160.1 | ) | $ | 400 | $ | (79.5 | ) | $ | (54.5 | ) | ||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
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 | 25 | — | 396.7 | 919.2 | — | 1,340.90 | |||||||||||||||||||
Merger and integration costs | — | — | (0.4 | ) | 30.6 | — | 30.2 | ||||||||||||||||||
Restructuring charges | — | — | 3.4 | 5.2 | — | 8.6 | |||||||||||||||||||
Total costs and expenses | 25 | — | 2,198.40 | 2,763.00 | (7.8 | ) | 4,978.60 | ||||||||||||||||||
Operating (loss) income | (25.0 | ) | — | (117.5 | ) | 1,153.40 | (1.4 | ) | 1,009.50 | ||||||||||||||||
Earnings (losses) from consolidated | 526.1 | (66.5 | ) | 0.5 | 0.7 | (460.8 | ) | — | |||||||||||||||||
subsidiaries | |||||||||||||||||||||||||
Other income (expense), net | 2.1 | — | 0.9 | (15.5 | ) | — | (12.5 | ) | |||||||||||||||||
Loss on early extinguishment of debt | (17.2 | ) | (11.3 | ) | — | — | — | (28.5 | ) | ||||||||||||||||
Intercompany interest income (expense) | 134.5 | — | — | (134.5 | ) | — | — | ||||||||||||||||||
Interest (expense) income | (584.6 | ) | (40.9 | ) | 0.2 | (2.4 | ) | — | (627.7 | ) | |||||||||||||||
Income (loss) from continuing operations | 35.9 | (118.7 | ) | (115.9 | ) | 1,001.70 | (462.2 | ) | 340.8 | ||||||||||||||||
before income taxes | |||||||||||||||||||||||||
Income tax (benefit) expense | (205.4 | ) | (19.3 | ) | (36.9 | ) | 366.8 | 0.3 | 105.5 | ||||||||||||||||
Income (loss) from continuing operations | 241.3 | (99.4 | ) | (79.0 | ) | 634.9 | (462.5 | ) | 235.3 | ||||||||||||||||
Discontinued operations | — | — | 6 | — | — | 6 | |||||||||||||||||||
Net income (loss) | $ | 241.3 | $ | (99.4 | ) | $ | (73.0 | ) | $ | 634.9 | $ | (462.5 | ) | $ | 241.3 | ||||||||||
Comprehensive income (loss) | $ | 263.4 | $ | (99.4 | ) | $ | (73.0 | ) | $ | 634.9 | $ | (462.5 | ) | $ | 263.4 | ||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income (Loss) | |||||||||||||||||||||||||
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 | 28.8 | — | 370.9 | 897.2 | — | 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 | 28.8 | — | 2,116.10 | 3,115.30 | (4.6 | ) | 5,255.60 | ||||||||||||||||||
Operating (loss) income | (28.8 | ) | — | (18.2 | ) | 934.3 | (3.4 | ) | 883.9 | ||||||||||||||||
Earnings (losses) from consolidated | 432 | (2.3 | ) | 0.6 | (0.3 | ) | (430.0 | ) | — | ||||||||||||||||
subsidiaries | |||||||||||||||||||||||||
Other (expense) income, net | (4.4 | ) | — | 0.3 | 8.7 | — | 4.6 | ||||||||||||||||||
Gain on early extinguishment of debt | — | 1.9 | — | — | — | 1.9 | |||||||||||||||||||
Intercompany interest income (expense) | 135.3 | — | — | (135.3 | ) | — | — | ||||||||||||||||||
Interest (expense) income | (540.9 | ) | (84.2 | ) | (1.2 | ) | 1.2 | — | (625.1 | ) | |||||||||||||||
(Loss) income from continuing operations | (6.8 | ) | (84.6 | ) | (18.5 | ) | 808.6 | (433.4 | ) | 265.3 | |||||||||||||||
before income taxes | |||||||||||||||||||||||||
Income tax (benefit) expense | (174.8 | ) | (30.8 | ) | (7.7 | ) | 312.8 | (1.3 | ) | 98.2 | |||||||||||||||
Income (loss) from continuing operations | 168 | (53.8 | ) | (10.8 | ) | 495.8 | (432.1 | ) | 167.1 | ||||||||||||||||
Discontinued operations | — | — | 0.9 | — | — | 0.9 | |||||||||||||||||||
Net income (loss) | $ | 168 | $ | (53.8 | ) | $ | (9.9 | ) | $ | 495.8 | $ | (432.1 | ) | $ | 168 | ||||||||||
Comprehensive income (loss) | $ | 172.5 | $ | (53.8 | ) | $ | (9.9 | ) | $ | 495.8 | $ | (432.1 | ) | $ | 172.5 | ||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | PAETEC Issuer | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Guarantors | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current Assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 4.6 | $ | 49.2 | $ | (26.0 | ) | $ | 27.8 | ||||||||||||
Restricted cash | 6.7 | — | — | — | — | 6.7 | |||||||||||||||||||
Accounts receivable (less allowance for | — | — | 286.1 | 350.5 | (1.1 | ) | 635.5 | ||||||||||||||||||
doubtful accounts of $43.4) | |||||||||||||||||||||||||
Affiliates receivable, net | — | 346.6 | — | 4,187.70 | (4,534.3 | ) | — | ||||||||||||||||||
Inventories | — | — | 19.4 | 44.3 | — | 63.7 | |||||||||||||||||||
Deferred income taxes | 67.4 | — | — | 76.5 | (38.5 | ) | 105.4 | ||||||||||||||||||
Prepaid expenses and other | 35.5 | — | 30.9 | 96.5 | 1.7 | 164.6 | |||||||||||||||||||
Total current assets | 109.6 | 346.6 | 341 | 4,804.70 | (4,598.2 | ) | 1,003.70 | ||||||||||||||||||
Investments in consolidated subsidiaries | 10,001.30 | — | 0.9 | — | (10,002.2 | ) | — | ||||||||||||||||||
Goodwill | 1,649.50 | 643.8 | — | 2,059.50 | — | 4,352.80 | |||||||||||||||||||
Other intangibles, net | 590.7 | — | 413.6 | 759.7 | — | 1,764.00 | |||||||||||||||||||
Net property, plant and equipment | 9.8 | — | 697.1 | 4,705.40 | — | 5,412.30 | |||||||||||||||||||
Deferred income taxes | — | 219 | 63.7 | — | (282.7 | ) | — | ||||||||||||||||||
Other assets | 104.2 | — | 16.8 | 59.6 | — | 180.6 | |||||||||||||||||||
Total Assets | $ | 12,465.10 | $ | 1,209.40 | $ | 1,533.10 | $ | 12,388.90 | $ | (14,883.1 | ) | $ | 12,713.40 | ||||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||||||
Current Liabilities: | |||||||||||||||||||||||||
Current maturities of long-term debt | $ | 717.4 | $ | — | $ | — | $ | 0.1 | $ | — | $ | 717.5 | |||||||||||||
Current portion of interest rate swaps | 28.5 | — | — | — | — | 28.5 | |||||||||||||||||||
Accounts payable | 2.1 | — | 101.9 | 299.3 | — | 403.3 | |||||||||||||||||||
Affiliates payable, net | 3,277.00 | — | 1,430.40 | — | (4,555.0 | ) | 152.4 | ||||||||||||||||||
Advance payments and customer deposits | — | — | 78.5 | 136.2 | — | 214.7 | |||||||||||||||||||
Accrued taxes | 0.2 | — | 25.2 | 69.4 | 0.4 | 95.2 | |||||||||||||||||||
Accrued interest | 94.3 | 3.7 | 1.8 | 2.7 | — | 102.5 | |||||||||||||||||||
Other current liabilities | 32.3 | 4.9 | 83 | 248.3 | (39.6 | ) | 328.9 | ||||||||||||||||||
Total current liabilities | 4,151.80 | 8.6 | 1,720.80 | 756 | (4,594.2 | ) | 2,043.00 | ||||||||||||||||||
Long-term debt | 7,363.40 | 469.4 | — | 101.4 | — | 7,934.20 | |||||||||||||||||||
Deferred income taxes | 658.6 | — | — | 1,502.70 | (282.7 | ) | 1,878.60 | ||||||||||||||||||
Accumulated losses in excess of | — | 210.4 | — | — | (210.4 | ) | — | ||||||||||||||||||
investments in consolidated subsidiaries | |||||||||||||||||||||||||
Other liabilities | 66.5 | 1.7 | 53 | 511.6 | — | 632.8 | |||||||||||||||||||
Total liabilities | 12,240.30 | 690.1 | 1,773.80 | 2,871.70 | (5,087.3 | ) | 12,488.60 | ||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||||||
(See Note 12) | |||||||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||||||
Common stock | — | — | — | 67.7 | (67.7 | ) | — | ||||||||||||||||||
Additional paid-in capital | 212.7 | 842 | 0.7 | 6,017.10 | (6,859.8 | ) | 212.7 | ||||||||||||||||||
Accumulated other comprehensive income | 12.1 | — | — | 20.5 | (20.5 | ) | 12.1 | ||||||||||||||||||
Accumulated (deficit) retained earnings | — | (322.7 | ) | (241.4 | ) | 3,411.90 | (2,847.8 | ) | — | ||||||||||||||||
Total shareholders’ equity | 224.8 | 519.3 | (240.7 | ) | 9,517.20 | (9,795.8 | ) | 224.8 | |||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 12,465.10 | $ | 1,209.40 | $ | 1,533.10 | $ | 12,388.90 | $ | (14,883.1 | ) | $ | 12,713.40 | ||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | PAETEC | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | 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 | — | 3,670.40 | (4,044.7 | ) | — | ||||||||||||||||||
Inventories | — | — | 10.6 | 57.1 | — | 67.7 | |||||||||||||||||||
Deferred income taxes | 202.1 | — | — | 76.5 | (37.1 | ) | 241.5 | ||||||||||||||||||
Prepaid expenses and other | 35.3 | 0.1 | 29.9 | 116 | 1.1 | 182.4 | |||||||||||||||||||
Total current assets | 260.8 | 374.4 | 299.3 | 4,331.20 | (4,080.9 | ) | 1,184.80 | ||||||||||||||||||
Investments in consolidated subsidiaries | 9,997.50 | — | 0.8 | — | (9,998.3 | ) | — | ||||||||||||||||||
Goodwill | 1,649.50 | 643.8 | — | 2,038.10 | — | 4,331.40 | |||||||||||||||||||
Other intangibles, net | 645 | — | 533.6 | 841.5 | — | 2,020.10 | |||||||||||||||||||
Net property, plant and equipment | 10.2 | — | 799.3 | 4,893.10 | — | 5,702.60 | |||||||||||||||||||
Deferred income taxes | — | 219 | 31 | — | (250.0 | ) | — | ||||||||||||||||||
Other assets | 120.3 | — | 16.2 | 69.2 | — | 205.7 | |||||||||||||||||||
Total Assets | $ | 12,683.30 | $ | 1,237.20 | $ | 1,680.20 | $ | 12,173.10 | $ | (14,329.2 | ) | $ | 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 | 5 | — | 85.9 | 295 | — | 385.9 | |||||||||||||||||||
Affiliates payable, net | 2,758.90 | — | 1,431.70 | — | (4,039.9 | ) | 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 | 3,012.50 | 7.7 | 1,709.20 | 792.8 | (4,076.9 | ) | 1,445.30 | ||||||||||||||||||
Long-term debt | 8,044.90 | 475.8 | — | 101.5 | — | 8,622.20 | |||||||||||||||||||
Deferred income taxes | 724.7 | — | — | 1,563.60 | (250.0 | ) | 2,038.30 | ||||||||||||||||||
Accumulated losses in excess of | — | 71.8 | — | — | (71.8 | ) | — | ||||||||||||||||||
investments in consolidated subsidiaries | |||||||||||||||||||||||||
Other liabilities | 60.7 | 2.3 | 51.6 | 383.7 | — | 498.3 | |||||||||||||||||||
Total liabilities | 11,842.80 | 557.6 | 1,760.80 | 2,841.60 | (4,398.7 | ) | 12,604.10 | ||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||||||
(See Note 12) | |||||||||||||||||||||||||
Shareholders’ Equity: | |||||||||||||||||||||||||
Common stock | — | — | — | 67.7 | (67.7 | ) | — | ||||||||||||||||||
Additional paid-in capital | 812 | 842 | — | 5,865.00 | (6,707.0 | ) | 812 | ||||||||||||||||||
Accumulated other comprehensive | 28.5 | — | — | 32.4 | (32.4 | ) | 28.5 | ||||||||||||||||||
income | |||||||||||||||||||||||||
Accumulated (deficit) retained earnings | — | (162.4 | ) | (80.6 | ) | 3,366.40 | (3,123.4 | ) | — | ||||||||||||||||
Total shareholders’ equity | 840.5 | 679.6 | (80.6 | ) | 9,331.50 | (9,930.5 | ) | 840.5 | |||||||||||||||||
Total Liabilities and Shareholders’ | $ | 12,683.30 | $ | 1,237.20 | $ | 1,680.20 | $ | 12,173.10 | $ | (14,329.2 | ) | $ | 13,444.60 | ||||||||||||
Equity | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||
(Millions) | Windstream Corp. | PAETEC | Guarantors | Non- | Eliminations | Consolidated | |||||||||||||||||||
Issuer | Guarantors | ||||||||||||||||||||||||
Cash Provided from Operations: | |||||||||||||||||||||||||
Net cash (used in) provided from | $ | (129.2 | ) | $ | (27.7 | ) | $ | 211.6 | $ | 1,414.80 | $ | (0.8 | ) | $ | 1,468.70 | ||||||||||
operations | |||||||||||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (1.8 | ) | — | (177.3 | ) | (607.4 | ) | — | (786.5 | ) | |||||||||||||||
Broadband network expansion funded by | — | — | — | (13.3 | ) | — | (13.3 | ) | |||||||||||||||||
stimulus grants | |||||||||||||||||||||||||
Changes in restricted cash | 3 | — | — | — | — | 3 | |||||||||||||||||||
Grant funds received for broadband | 33.2 | — | — | — | — | 33.2 | |||||||||||||||||||
stimulus projects | |||||||||||||||||||||||||
Grant funds received from Connect America | — | — | — | 26 | — | 26 | |||||||||||||||||||
Fund | |||||||||||||||||||||||||
Network expansion funded by Connect | — | — | — | (12.8 | ) | — | (12.8 | ) | |||||||||||||||||
America Fund | |||||||||||||||||||||||||
Acquisition of a business | (22.6 | ) | — | — | — | — | (22.6 | ) | |||||||||||||||||
Other, net | — | — | — | 3.9 | — | 3.9 | |||||||||||||||||||
Net cash provided from (used in) | 11.8 | — | (177.3 | ) | (603.6 | ) | — | (769.1 | ) | ||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Distributions to Windstream Holdings, Inc. | (603.6 | ) | — | — | — | — | (603.6 | ) | |||||||||||||||||
Repayments of debt and swaps | (1,394.4 | ) | — | — | (1.0 | ) | — | (1,395.4 | ) | ||||||||||||||||
Proceeds of debt issuance | 1,315.00 | — | — | — | — | 1,315.00 | |||||||||||||||||||
Intercompany transactions, net | 795.9 | 27.7 | (30.5 | ) | (767.9 | ) | (25.2 | ) | — | ||||||||||||||||
Payments under capital lease obligations | — | — | (7.0 | ) | (19.8 | ) | — | (26.8 | ) | ||||||||||||||||
Other, net | (9.2 | ) | — | — | — | — | (9.2 | ) | |||||||||||||||||
Net cash provided from (used in) | 103.7 | 27.7 | (37.5 | ) | (788.7 | ) | (25.2 | ) | (720.0 | ) | |||||||||||||||
financing activities | |||||||||||||||||||||||||
(Decrease) increase in cash and cash | (13.7 | ) | — | (3.2 | ) | 22.5 | (26.0 | ) | (20.4 | ) | |||||||||||||||
equivalents | |||||||||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||
Beginning of period | 13.7 | — | 7.8 | 26.7 | — | 48.2 | |||||||||||||||||||
End of period | $ | — | $ | — | $ | 4.6 | $ | 49.2 | $ | (26.0 | ) | $ | 27.8 | ||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating 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 cash (used in) provided from | $ | (186.2 | ) | $ | (56.0 | ) | $ | 253.9 | $ | 1,510.50 | $ | (2.4 | ) | $ | 1,519.80 | ||||||||||
operations | |||||||||||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (2.0 | ) | — | (161.4 | ) | (677.6 | ) | — | (841.0 | ) | |||||||||||||||
Broadband network expansion funded by stimulus grants | — | — | — | (36.1 | ) | — | (36.1 | ) | |||||||||||||||||
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) | 81.3 | — | (129.9 | ) | (659.0 | ) | — | (707.6 | ) | ||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Dividends paid to shareholders | (444.6 | ) | — | — | — | — | (444.6 | ) | |||||||||||||||||
Distributions to Windstream Holdings, Inc. | (149.4 | ) | — | — | — | — | (149.4 | ) | |||||||||||||||||
Repayments 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 | 273.1 | 706 | (127.8 | ) | (853.7 | ) | 2.4 | — | |||||||||||||||||
Payments under capital lease obligations | — | — | (14.9 | ) | (9.0 | ) | — | (23.9 | ) | ||||||||||||||||
Other, net | (6.7 | ) | — | — | — | — | (6.7 | ) | |||||||||||||||||
Net cash provided from (used in) | 61.1 | 56 | (142.7 | ) | (872.8 | ) | 2.4 | (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 | |||||||||||||
13. Supplemental Guarantor Information, Continued: | |||||||||||||||||||||||||
Condensed Consolidating 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 cash provided from (used in) | $ | 170.4 | $ | (101.6 | ) | $ | 281.3 | $ | 1,429.10 | $ | (1.6 | ) | $ | 1,777.60 | |||||||||||
operations | |||||||||||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||||||||||
Additions to property, plant and equipment | (0.7 | ) | — | (208.6 | ) | (891.9 | ) | — | (1,101.2 | ) | |||||||||||||||
Broadband network expansion funded | — | — | — | (105.4 | ) | — | (105.4 | ) | |||||||||||||||||
by 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 | — | (1.8 | ) | (0.1 | ) | — | 0.9 | |||||||||||||||||
Net cash provided from (used in) | 34.6 | — | (195.9 | ) | (940.4 | ) | — | (1,101.7 | ) | ||||||||||||||||
investing activities | |||||||||||||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||||||||||
Dividends paid to shareholders | (588.0 | ) | — | — | — | — | (588.0 | ) | |||||||||||||||||
Repayments 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 | 177.9 | 401.6 | (103.2 | ) | (477.9 | ) | 1.6 | — | |||||||||||||||||
Payments under capital lease obligations | — | — | (19.2 | ) | (0.8 | ) | — | (20.0 | ) | ||||||||||||||||
Other, net | 0.7 | — | — | — | — | 0.7 | |||||||||||||||||||
Net cash (used in) provided from | (262.9 | ) | 101.6 | (122.4 | ) | (488.8 | ) | 1.6 | (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 | |||||||||||||
Discontinued_Operations_Tables
Discontinued Operations: (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||
Schedule of Discontinued Operations, Supplemental Disclosures | The following table summarizes the results of the software and energy businesses which have been separately presented as discontinued operations in the accompanying consolidated statements of operations for the years ended December 31: | ||||||||||
(Millions) | 2013 | 2012 | |||||||||
Revenues and sales | $ | 16.9 | $ | 29.7 | |||||||
Operating income from discontinued operations | 1.4 | 3.1 | |||||||||
Gain on sale of discontinued operations | 14.4 | — | |||||||||
Income before tax from discontinued operations | 15.8 | 3.1 | |||||||||
Income tax expense | 9.8 | 2.2 | |||||||||
Net income from discontinued operations | $ | 6 | $ | 0.9 | |||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information - (Unaudited): Quarterly Financial Information - (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | |||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||
(Millions, except per share amounts) | Total | 4th | 3rd | 2nd | 1st | ||||||||||||||||
Revenues and sales | $ | 5,829.50 | $ | 1,443.10 | $ | 1,455.50 | $ | 1,466.00 | $ | 1,464.90 | |||||||||||
Operating income | $ | 507.1 | $ | 20.5 | $ | 151.6 | $ | 167.2 | $ | 167.8 | |||||||||||
Net (loss) income | $ | (39.5 | ) | $ | (77.5 | ) | $ | 8 | $ | 14 | $ | 16 | |||||||||
Basic and diluted (loss) earnings per share: (a) | |||||||||||||||||||||
Net (loss) income | ($.07 | ) | ($.13 | ) | $0.01 | $0.02 | $0.02 | ||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||
(Millions, except per share amounts) | Total | 4th | 3rd | 2nd | 1st | ||||||||||||||||
Revenues and sales | $ | 5,988.10 | $ | 1,491.40 | $ | 1,498.50 | $ | 1,501.70 | $ | 1,496.50 | |||||||||||
Operating income | $ | 1,009.00 | $ | 326.5 | $ | 219.6 | $ | 227 | $ | 235.9 | |||||||||||
Net income | $ | 241 | $ | 118.4 | $ | 30.6 | $ | 39.7 | $ | 52.3 | |||||||||||
Basic and diluted earnings per share: (a) | |||||||||||||||||||||
Net income | $0.40 | $0.20 | $0.05 | $0.06 | $0.09 | ||||||||||||||||
(a) | Quarterly (loss) earnings 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. |
Schedule_I_Condensed_Financial2
Schedule I - Condensed Financial Information of the Registrant (Parent Company) Statement of Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | 4 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Selling, general, and administrative | $983.80 | $923.40 | $967.30 | |||||||||
Total costs and expenses | 5,322.40 | 4,979.10 | 5,255.60 | |||||||||
Operating (loss) income | 20.5 | 151.6 | 167.2 | 167.8 | 326.5 | 219.6 | 227 | 235.9 | 507.1 | 1,009 | 883.9 | |
Income (loss) from continuing operations before income tax | -64.6 | 340.3 | 265.3 | |||||||||
Income tax (benefit) expense | -25.1 | 105.3 | 98.2 | |||||||||
Net (loss) income | -77.5 | 8 | 14 | 16 | 118.4 | 30.6 | 39.7 | 52.3 | -39.5 | 241 | 168 | |
Comprehensive (loss) income | -55.9 | 263.1 | 172.5 | |||||||||
Winstream Holdings, Inc. [Member] | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||
Selling, general, and administrative | 2.3 | 0.5 | ||||||||||
Total costs and expenses | 2.3 | 0.5 | ||||||||||
Operating (loss) income | -2.3 | -0.5 | ||||||||||
Income (loss) from continuing operations before income tax | -2.3 | -0.5 | ||||||||||
Income tax (benefit) expense | -0.9 | -0.2 | ||||||||||
Loss before equity in subsidiaries | -1.4 | -0.3 | ||||||||||
Equity (losses) earnings from subsidiaries | -38.1 | 137.6 | ||||||||||
Net (loss) income | -39.5 | 137.3 | ||||||||||
Comprehensive (loss) income | ($55.90) | $134.40 |
Schedule_I_Condensed_Financial3
Schedule I - Condensed Financial Information of the Registrant (Parent Company) Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Other current assets | $180.60 | $205.70 | ||
Total current assets | 1,003.70 | 1,184.80 | ||
Total Assets | 12,713.40 | 13,444.60 | ||
Accrued dividends | 152.4 | 151.1 | ||
Total current liabilities | 2,043 | 1,445.60 | ||
Common stock, $0.0001 par value, 1,000.0 shares authorized, 602.9 and 596.2 shares issued and outstanding, respectively | 0.1 | 0.1 | ||
Additional paid-in capital | 212.6 | 811.6 | ||
Accumulated other comprehensive income | 12.1 | 28.5 | 6.4 | |
Retained earnings | 0 | 0 | ||
Total shareholders’ equity | 224.8 | 840.2 | 1,104.80 | 1,495.30 |
Total Liabilities and Shareholders' Equity | 12,713.40 | 13,444.60 | ||
Winstream Holdings, Inc. [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Distributions receivable from Windstream Corp. | 152.4 | 150.7 | ||
Other current assets | 0 | 0.1 | ||
Total current assets | 152.4 | 150.8 | ||
Investments in Affiliate | 224.8 | 840.5 | ||
Total Assets | 377.2 | 991.3 | ||
Accrued dividends | 152.4 | 151.1 | ||
Total current liabilities | 152.4 | 151.1 | ||
Common stock, $0.0001 par value, 1,000.0 shares authorized, 602.9 and 596.2 shares issued and outstanding, respectively | 0.1 | 0.1 | ||
Additional paid-in capital | 212.6 | 811.6 | ||
Accumulated other comprehensive income | 12.1 | 28.5 | ||
Retained earnings | 0 | 0 | ||
Total shareholders’ equity | 224.8 | 840.2 | ||
Total Liabilities and Shareholders' Equity | $377.20 | $991.30 |
Schedule_I_Condensed_Financial4
Schedule I - Condensed Financial Information of the Registrant (Parent Company) Statement of Cash Flow (Details) (USD $) | 12 Months Ended | 4 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net (loss) income | ($39.50) | $241 | $168 | |
Net cash (used in) provided from operations | 1,467.30 | 1,519.40 | 1,777.60 | |
Dividends paid to shareholders | -602.2 | -593.6 | -588 | |
Net cash provided from (used in) financing activities | -718.6 | -895.6 | -770.9 | |
(Decrease) increase in cash and cash equivalents | -20.4 | -83.8 | -95 | |
Cash and Cash Equivalents: | ||||
Beginning of period | 48.2 | 132 | 227 | |
End of period | 27.8 | 48.2 | 132 | 48.2 |
Winstream Holdings, Inc. [Member] | ||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||
Net (loss) income | -39.5 | 137.3 | ||
Equity (losses) earnings from subsidiaries | 38.1 | -137.6 | ||
Other current assets | 0 | -0.1 | ||
Net cash (used in) provided from operations | -1.4 | -0.4 | ||
Dividends paid to shareholders | -602.2 | -149 | ||
Distributions from Windstream Corp. | 603.6 | 149.4 | ||
Net cash provided from (used in) financing activities | 1.4 | 0.4 | ||
(Decrease) increase in cash and cash equivalents | 0 | 0 | ||
Cash and Cash Equivalents: | ||||
Beginning of period | 0 | 0 | ||
End of period | $0 | $0 | $0 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for doubtful accounts, customers and others: | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | $40 | $42.60 | $29.90 | |||
Additions Charged to Cost and Expenses | 54.8 | 63.5 | 59.4 | |||
Additions Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | 51.4 | [1] | 66.1 | [1] | 46.7 | [1] |
Balance at End of Period | 43.4 | 40 | 42.6 | |||
Valuation allowance for deferred tax assets: | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 84.9 | 85.9 | 165.9 | |||
Additions Charged to Cost and Expenses | 10 | 7.1 | 0.4 | |||
Additions Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | 0 | 8.1 | [2] | 80.4 | [3] | |
Balance at End of Period | 94.9 | 84.9 | 85.9 | |||
Accrued liabilities related to merger, integration and restructuring charges: | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 14 | 20.1 | 12.9 | |||
Additions Charged to Cost and Expenses | 76.3 | [4] | 38.8 | [5] | 92.6 | [6] |
Additions Charged to Other Accounts | 0 | 0 | 0 | |||
Deductions | 79.1 | [7] | 44.9 | [7] | 85.4 | [7] |
Balance at End of Period | $11.20 | $14 | $20.10 | |||
[1] | Accounts charged off net of recoveries of amounts previously written off. | |||||
[2] | 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. | |||||
[3] | Represents adjustment recorded through goodwill to valuation allowance for deferred taxes related to expected realization of net operating losses assumed from acquisition of PAETEC. | |||||
[4] | Costs primarily consist of charges for various information technology conversions, consulting fees and other expenses incurred related to the proposed spin-off of certain telecommunications network assets, and severance and other employee benefit costs resulting from workforce reductions completed during the year. | |||||
[5] | Costs primarily represent charges related to information technology conversions and network efficiency projects. | |||||
[6] | Costs primarily include charges for accounting, legal, broker fees and other miscellaneous costs associated with the acquisitions of NuVox, Q-Comm and PAETEC. In addition, we incurred employee transition costs, primarily severance related, in conjunction with the integration of NuVox, Q-Comm and PAETEC. | |||||
[7] | Represents cash outlays for merger, integration and restructuring costs. |
Background_and_Basis_for_Prese1
Background and Basis for Presentation: (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
states | ||
data_centers | ||
route_miles | ||
Common stock, shares outstanding | 602,900,000 | 596,200,000 |
Number of states of operation | 48 | |
Local and long-haul fiber network | 121,000 | |
Number of data centers | 27 | |
Windstream Corporation [Member] | ||
Common stock, shares outstanding | 1,000 | 1,000 |
Net_Property_Plant_and_Equipme
Net Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land | $44.30 | $44.70 |
Building and improvements | 655.5 | 644.5 |
Central office equipment | 5,750.40 | 5,563.70 |
Outside communications plant | 6,906.60 | 6,630.70 |
Furniture, vehicles and other equipment | 1,616 | 1,431.20 |
Construction in progress | 365.2 | 312.6 |
Gross property, plant and equipment | 15,338 | 14,627.40 |
Less accumulated depreciation | -9,925.70 | -8,924.80 |
Net property, plant and equipment | $5,412.30 | $5,702.60 |
Reconciliation_of_Net_Income_a
Reconciliation of Net Income and Number of Shares Used in Computing Basic and Diluted Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Numerator: | |||||||||||||||||||||
(Loss) income from continuing operations | ($39.50) | $235 | $167.10 | ||||||||||||||||||
Income from continuing operations allocable to participating securities | -5 | -4.1 | -3.6 | ||||||||||||||||||
Adjusted (loss) income from continuing operations attributable to common shares | -44.5 | 230.9 | 163.5 | ||||||||||||||||||
Income from discontinued operations | 0 | 6 | 0.9 | ||||||||||||||||||
Income from discontinued operations allocable to participating securities | 0 | 0 | 0 | ||||||||||||||||||
Adjusted income from discontinued operations attributable to common shares | 0 | 6 | 0.9 | ||||||||||||||||||
Net (loss) income attributable to common shares | ($44.50) | $236.90 | $164.40 | ||||||||||||||||||
Basic shares outstanding | |||||||||||||||||||||
Weighted average shares outstanding | 601.5 | 593.2 | 588 | ||||||||||||||||||
Weighted average participating securities | -4.6 | -3.9 | -3.5 | ||||||||||||||||||
Weighted average basic shares outstanding | 596.9 | 589.3 | 584.5 | ||||||||||||||||||
Diluted shares outstanding | |||||||||||||||||||||
Weighted average basic shares outstanding | 596.9 | 589.3 | 584.5 | ||||||||||||||||||
Effect of dilutive stock options | 0 | 0.4 | 1.8 | ||||||||||||||||||
Weighted average diluted shares outstanding | 596.9 | 589.7 | 586.3 | ||||||||||||||||||
From continuing operations | ($0.07) | $0.39 | $0.28 | ||||||||||||||||||
From discontinued operations | $0 | $0.01 | $0 | ||||||||||||||||||
Net (loss) income | ($0.13) | [1] | $0.01 | [1] | $0.02 | [1] | $0.02 | [1] | $0.20 | [1] | $0.05 | [1] | $0.06 | [1] | $0.09 | [1] | ($0.07) | [1] | $0.40 | [1] | $0.28 |
[1] | Quarterly (loss) earnings 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. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies: (Details) (USD $) | 12 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2014 | Dec. 05, 2013 | Jun. 15, 2012 |
reporting_unit | units | |||||
units | ||||||
Significant Accounting Policies [Line Items] | ||||||
Number of Reportable Segments | 1 | |||||
Unbilled Contracts Receivable | $40.20 | $46.30 | ||||
Percentage of Receivable Broadband Stimulus Recorded to Construction in Progress | 75.00% | |||||
Percentage of Broadband Stimulus as Investment in Property, Plant and Equipment | 25.00% | |||||
Total authorized Connect America Fund Support | 86.7 | |||||
Disposition of wireless assets | 0 | 0 | 57 | |||
Number of Reporting Units to Test for Impairment | 3 | |||||
Depreciation expense | 1,130.30 | 1,049.70 | 955.6 | |||
Interest Costs Capitalized | 3.7 | 7.9 | 10.9 | |||
Asset retirement obligation | 53.4 | 52.3 | ||||
Advertising expense | 96.8 | 80.4 | 99.5 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.6 | 1 | 1 | |||
Change in Depreciation Expense Due to Change in Estimates | 59.1 | |||||
Change in Net Income (Loss) due to Change in Estimates | 36.5 | |||||
Change in Accounting Estimate, Financial Effect, Net Income (Loss), Per Share | $0.06 | |||||
Software Business | PAETEC Holding Corp. | ||||||
Significant Accounting Policies [Line Items] | ||||||
Proceeds from sale of acquired assets | 30 | |||||
Energy Business | PAETEC Holding Corp. | ||||||
Significant Accounting Policies [Line Items] | ||||||
Proceeds from sale of acquired assets | 6.1 | |||||
Iowa Telecommunication Services, Inc | Energy Business | D And E Communications Inc | ||||||
Significant Accounting Policies [Line Items] | ||||||
Disposition of wireless assets | 57 | |||||
Gain (Loss) on Disposition of Intangible Assets | 5.2 | |||||
Other current liabilities | ||||||
Significant Accounting Policies [Line Items] | ||||||
Amount of Connect America Fund Support Phase 1 - Received | 53.9 | |||||
Other noncurrent liabilities | ||||||
Significant Accounting Policies [Line Items] | ||||||
Amount of Connect America Fund Support Phase 1 - Received | $20 | |||||
Equity Option [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.2 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies: Summary of Significant Accounting Policies (Phantom) (Details) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.6 | 1 | 1 |
Goodwill, Impairment Loss | $0 | ||
Economic Life - RUS Grants | 23 years | ||
Minimum | Building and improvements | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum | Central office equipment | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum | Outside communications plant | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Minimum | Furniture, vehicles and other equipment | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum | Building and improvements | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Maximum | Central office equipment | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Maximum | Outside communications plant | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 47 years | ||
Maximum | Furniture, vehicles and other equipment | |||
Significant Accounting Policies [Line Items] | |||
Property, Plant and Equipment, Useful Life | 23 years | ||
Customer lists | |||
Significant Accounting Policies [Line Items] | |||
Amortization Methodology | sum of years digits | ||
Customer lists | Minimum | |||
Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 9 years | ||
Customer lists | Maximum | |||
Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 15 years |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets: Schedule of Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance, Beginning of Period | $4,331.40 | |
Acquisition during the period (a) | 21.4 | [1] |
Balance, End of Period | $4,352.80 | |
[1] | On October 1, 2014, we acquired for cash a fixed wireless enterprise services provider with operations in four states. |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2014 |
units | ||||
Goodwill and Other Intangible Assets [Abstract] | ||||
Amortization expense for intangible assets subject to amortization | $256.10 | $291.20 | $342 | |
Number of Reporting Units to Test for Impairment | 3 | |||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Cost | 3,276.80 | 3,276.80 | ||
Accumulated Amortization | -1,512.80 | -1,256.70 | ||
Net Carrying Value | 1,764 | 2,020.10 | ||
Franchise rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Cost | 1,285.10 | 1,285.10 | ||
Accumulated Amortization | -243.3 | -200.4 | ||
Net Carrying Value | 1,041.80 | 1,084.70 | ||
Customer lists | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Cost | 1,914 | 1,914 | ||
Accumulated Amortization | -1,203.40 | -991.9 | ||
Net Carrying Value | 710.6 | 922.1 | ||
Cable franchise rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Cost | 39.8 | 39.8 | ||
Accumulated Amortization | -28.2 | -27 | ||
Net Carrying Value | 11.6 | 12.8 | ||
Other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Cost | 37.9 | 37.9 | ||
Accumulated Amortization | -37.9 | -37.4 | ||
Net Carrying Value | $0 | $0.50 |
Intangible_Asset_Amortization_
Intangible Asset Amortization Methodology and Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Franchise rights | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Estimated useful life (in years) | 30 years |
Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | sum of years digits |
Customer lists | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 9 years |
Customer lists | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 15 years |
Cable franchise rights | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Estimated useful life (in years) | 15 years |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
Amortization Methodology | straight-line |
Other | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 1 year |
Other | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life (in years) | 3 years |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2015 | $223.10 | |
2016 | 192.7 | |
2017 | 164.8 | |
2018 | 137.9 | |
2019 | 111.2 | |
Thereafter | 934.3 | |
Total | $1,764 | $2,020.10 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Premium on long-term debt, net | $23.30 | $28.80 |
Carrying value | 8,651.70 | 8,707.20 |
Less current maturities | -717.5 | -85 |
Total long-term debt | 7,934.20 | 8,622.20 |
Weighted average interest rate | 6.50% | 7.00% |
Weighted maturity | 5 years 0 months 30 days | 6 years 0 months 30 days |
Senior secured credit facility, Tranche A3 – variable rates, due December 30, 2016 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Senior Notes | 344.3 | 387.3 |
Senior secured credit facility, Tranche A4 – variable rates, due August 8, 2017 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Senior Notes | 255 | 277.5 |
Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Senior Notes | 1,318.10 | 1,331.60 |
Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Senior Notes | 584.1 | 590 |
Senior secured credit facility, Revolving line of credit – variable rates, due December 17, 2015 | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term Line of Credit | 625 | 590 |
Weighted average interest rate | 2.49% | 2.60% |
2017 Notes – 7.875%, due November 1, 2017 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debentures and notes, without collateral | 1,100 | 1,100 |
2018 Notes – 8.125%, due September 1, 2018 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debentures and notes, without collateral | 400 | 400 |
2020 Notes – 7.750%, due October 15, 2020 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debentures and notes, without collateral | 700 | 700 |
2021 Notes – 7.750%, due October 1, 2021 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debentures and notes, without collateral | 950 | 950 |
2022 Notes – 7.500%, due June 1, 2022 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debentures and notes, without collateral | 500 | 500 |
2023 Notes – 7.500%, due April 1, 2023 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debentures and notes, without collateral | 600 | 600 |
2023 Notes – 6.375%, due August 1, 2023 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Debentures and notes, without collateral | 700 | 700 |
Windstream Holdings of the Midwest, Inc. | Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debentures and notes issued by subsidiaries | 100 | 100 |
Cinergy Communications Company | Cinergy Communications Company – 6.58%, due January 1, 2022 | Secured Debt | ||
Debt Instrument [Line Items] | ||
Debentures and notes issued by subsidiaries | 1.9 | 2 |
PAETEC Holding Corp. | PAETEC 2018 Notes – 9.875%, due December 1, 2018 | Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Net debt assumed | $450 | $450 |
LongTerm_Debt_Interest_Rates_D
Long-Term Debt Interest Rates (Details) | 12 Months Ended | |
Dec. 31, 2014 | Aug. 26, 2013 | |
Debt Disclosure [Line Items] | ||
Basis point interest rate increase | 1.00% | |
Unsecured Debt | 2017 Notes – 7.875%, due November 1, 2017 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 7.88% | |
Unsecured Debt | 2018 Notes – 8.125%, due September 1, 2018 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 8.13% | |
Unsecured Debt | 2020 Notes – 7.750%, due October 15, 2020 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 7.75% | |
Unsecured Debt | 2021 Notes – 7.750%, due October 1, 2021 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 7.75% | 7.75% |
Unsecured Debt | 2022 Notes – 7.500%, due June 1, 2022 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 7.50% | |
Unsecured Debt | 2023 Notes – 7.500%, due April 1, 2023 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 7.50% | |
Unsecured Debt | 2023 Notes – 6.375%, due August 1, 2023 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 6.38% | |
Windstream Holdings of the Midwest, Inc. | Secured Debt | Windstream Holdings of the Midwest, Inc. – 6.75%, due April 1, 2028 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 6.75% | |
Cinergy Communications Company | Secured Debt | Cinergy Communications Company – 6.58%, due January 1, 2022 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 6.58% | |
PAETEC Holding Corp. | Unsecured Debt | PAETEC 2018 Notes – 9.875%, due December 1, 2018 | ||
Debt Disclosure [Line Items] | ||
Interest rate | 9.88% |
Longterm_Debt_and_Lease_Obliga1
Long-term Debt and Lease Obligations: Long-term debt, Maturities, Repayments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Long-term debt, Maturities, Repayments [Abstract] | |
2015 | $717.50 |
2016 | 350.7 |
2017 | 1,314.50 |
2018 | 869.5 |
2019 | 574.1 |
Thereafter | 4,802.10 |
Total | $8,628.40 |
Loss_on_Extinguishment_of_Debt
Loss on Extinguishment of Debt (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Extinguishment of Debt [Line Items] | |||
Total (loss) gain on early extinguishment of debt | $0 | ($28.50) | $1.90 |
Unsecured Debt | Notes 2019 [Member] | |||
Extinguishment of Debt [Line Items] | |||
Premium on early redemption | -13.6 | 0 | |
Third-party fees for early redemption | -0.5 | 0 | |
Unamortized debt issuance costs on original issuance | -0.6 | 0 | |
Total (loss) gain on early extinguishment of debt | -14.7 | 0 | |
Secured Debt | Senior Notes [Member] | |||
Extinguishment of Debt [Line Items] | |||
Unamortized debt issuance costs on original issuance | -2.5 | 0 | |
Total (loss) gain on early extinguishment of debt | -2.5 | 0 | |
Secured Debt | PAETEC Holding Corp. | Notes, June 2017 [Member] | |||
Extinguishment of Debt [Line Items] | |||
Premium on early redemption | -51.5 | 0 | |
Third-party fees for early redemption | -1 | 0 | |
Unamortized premium on original issuance | 41.2 | 0 | |
Total (loss) gain on early extinguishment of debt | -11.3 | 0 | |
Secured Debt | PAETEC Holding Corp. | Notes, July 2015 [Member] | |||
Extinguishment of Debt [Line Items] | |||
Premium on early redemption | 0 | -14.3 | |
Unamortized premium on original issuance | 0 | 16.2 | |
Total (loss) gain on early extinguishment of debt | $0 | $1.90 |
Longterm_Debt_and_Lease_Obliga2
Long-term Debt and Lease Obligations: Capital Lease Present Value of Minimum Lease Payments (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Capital Leases [Abstract] | |
2015 | $29.40 |
2016 | 21.8 |
2017 | 2.7 |
2018 | 0.5 |
2019 | 0.5 |
Thereafter | 1.9 |
Total future payments | 56.8 |
Less: Amounts representing interest | 3.9 |
Present value of minimum lease payments | $52.90 |
Longterm_Debt_and_Lease_Obliga3
Long-term Debt and Lease Obligations: Other Lease Obligations (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $6.30 |
2016 | 6.5 |
2017 | 6.7 |
2018 | 6.9 |
2019 | 7.1 |
Thereafter | 92 |
Total | $125.50 |
Interest_Expense_Details
Interest Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Expense [Abstract] | |||
Interest expense related to long-term debt | $539.90 | $584.70 | $576.40 |
Impact of interest rate swaps | 29 | 48 | 56.4 |
Interest on capital and other lease obligations | 6.6 | 2.9 | 3.2 |
Less capitalized interest expense | -3.7 | -7.9 | -10.9 |
Total interest expense | $571.80 | $627.70 | $625.10 |
Debt_Additional_Information_De
Debt - Additional Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||
Jul. 29, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2011 | Aug. 26, 2013 | Jan. 23, 2013 | Aug. 01, 2013 | Sep. 30, 2013 | Dec. 06, 2013 | Mar. 31, 2013 | Sep. 25, 2013 | Sep. 09, 2013 | Aug. 12, 2013 | Feb. 25, 2013 | Jan. 08, 2013 | |
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of Debt | $3,400,000,000 | ||||||||||||||||
Dividends, Cash | 1,200,000,000 | 602,900,000 | 595,500,000 | 588,800,000 | |||||||||||||
Debt Exchange between Windstream Corp and REIT | 2,350,000,000 | ||||||||||||||||
Long-term Debt, Weighted Average Interest Rate | 6.50% | 7.00% | |||||||||||||||
Debt Instrument, Unamortized Discount (Premium), Net | -23,300,000 | -28,800,000 | |||||||||||||||
(Loss) gain on early extinguishment of debt | 0 | -28,500,000 | 1,900,000 | ||||||||||||||
Equipment acquired under capital leases | 500,000 | 72,400,000 | |||||||||||||||
Defined Benefit Plan, Contributions by Employer, Non Cash, Value | 80,900,000 | ||||||||||||||||
Other Lease Obligation, Lease Terms | 15 years 0 months | 10 years | |||||||||||||||
Other Lease Obligation, Annual Rental Payments | 650,000,000 | ||||||||||||||||
Annual Rent Escalations | 2.00% | ||||||||||||||||
Number of Renewal Options | 4 | 3 | |||||||||||||||
Lease Term of Renewal Options | 5 years 0 months | 5 | |||||||||||||||
Total Other Lease Obligation | 81,000,000 | ||||||||||||||||
PAETEC Holding Corp. | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Business Acquisition, Date of Acquisition Agreement | 30-Nov-11 | ||||||||||||||||
Unsecured Debt [Member] | Notes 2021 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Issuance Cost | 10,100,000 | ||||||||||||||||
Debt Instrument, Face Amount | 500,000,000 | ||||||||||||||||
Debt Instrument, Price | 103.50% | ||||||||||||||||
Yield of Securities, Debt Maturities | 7.17% | ||||||||||||||||
Interest rate | 7.75% | 7.75% | |||||||||||||||
Debentures and notes, without collateral | 950,000,000 | 950,000,000 | |||||||||||||||
Unsecured Debt [Member] | Notes 2023 [Member] [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Issuance Cost | 13,900,000 | ||||||||||||||||
Debt Instrument, Face Amount | 700,000,000 | ||||||||||||||||
Debt Instrument, Price | 6.38% | ||||||||||||||||
Unsecured Debt [Member] | Notes 2013 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of Debt | 800,000,000 | ||||||||||||||||
Unsecured Debt [Member] | Notes 2019 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 7.00% | ||||||||||||||||
Extinguishment of Debt, Amount | 500,000,000 | ||||||||||||||||
Debt Tender Offer Aggregate Principal Amount Tendered | 431,200,000 | ||||||||||||||||
Debentures and notes, without collateral | 68,800,000 | ||||||||||||||||
(Loss) gain on early extinguishment of debt | -14,700,000 | 0 | |||||||||||||||
Unsecured Debt [Member] | 2018 Notes – 8.125%, due September 1, 2018 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 8.13% | ||||||||||||||||
Debentures and notes, without collateral | 400,000,000 | 400,000,000 | |||||||||||||||
Unsecured Debt [Member] | 2020 Notes – 7.750%, due October 15, 2020 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 7.75% | ||||||||||||||||
Debentures and notes, without collateral | 700,000,000 | 700,000,000 | |||||||||||||||
Unsecured Debt [Member] | 2022 Notes – 7.500%, due June 1, 2022 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 7.50% | ||||||||||||||||
Debentures and notes, without collateral | 500,000,000 | 500,000,000 | |||||||||||||||
Unsecured Debt [Member] | PAETEC Holding Corp. | Notes, July 2015 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 9.50% | ||||||||||||||||
Extinguishment of Debt, Amount | 300,000,000 | ||||||||||||||||
Unsecured Debt [Member] | PAETEC Holding Corp. | PAETEC 2018 Notes – 9.875%, due December 1, 2018 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 9.88% | ||||||||||||||||
Net debt assumed | 450,000,000 | 450,000,000 | |||||||||||||||
Secured Debt | Senior secured credit facility, Tranche B5 – variable rates, due August 8, 2019 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Senior secured credit facilities, new borrowings | 590,000,000 | ||||||||||||||||
Debt Issuance Cost | 4,600,000 | ||||||||||||||||
Secured Debt | Tranche B3, Notes 2019 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of Debt | 592,500,000 | ||||||||||||||||
Secured Debt | Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Senior secured credit facilities, new borrowings | 1,345,000,000 | ||||||||||||||||
Debt Issuance Cost | 11,900,000 | ||||||||||||||||
Secured Debt | Senior secured credit facility, Tranche A2 – variable rates, due July 17, 2013 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of Debt | 19,500,000 | ||||||||||||||||
Secured Debt | Senior secured credit facility, Tranche B – variable rates, due July 17, 2013 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of Debt | 280,900,000 | ||||||||||||||||
Secured Debt | Senior secured credit facility, Tranche B2 – variable rates, due December 17, 2015 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Repayments of Debt | 1,042,900,000 | ||||||||||||||||
Secured Debt | PAETEC Holding Corp. | Notes, June 2017 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 8.88% | ||||||||||||||||
Extinguishment of Debt, Amount | 650,000,000 | ||||||||||||||||
Debt Tender Offer Aggregate Principal Amount Tendered | 61,500,000 | 588,500,000 | |||||||||||||||
(Loss) gain on early extinguishment of debt | -11,300,000 | 0 | |||||||||||||||
Secured Debt | PAETEC Holding Corp. | Notes, July 2015 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
(Loss) gain on early extinguishment of debt | 0 | 1,900,000 | |||||||||||||||
Line of Credit | Senior secured credit facility, Revolving line of credit – variable rates, due December 17, 2015 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of Credit Facility, Increase, Additional Borrowings | 1,315,000,000 | ||||||||||||||||
Line of Credit Facility, Decrease, Repayments | -1,280,000,000 | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,250,000,000 | ||||||||||||||||
Letters of Credit Outstanding, Amount | 21,000,000 | ||||||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 604,000,000 | ||||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.41% | 2.42% | |||||||||||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 4.50% | 4.50% | |||||||||||||||
Long-term Debt, Weighted Average Interest Rate | 2.49% | 2.60% | |||||||||||||||
Other Assets | Secured Debt | Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Issuance Cost | 5,700,000 | ||||||||||||||||
Interest expense | Secured Debt | Senior secured credit facility, Tranche B4 – variable rates, due January 23, 2020 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Issuance Cost | 6,200,000 | ||||||||||||||||
Pension Plan, Defined Benefit | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Other Lease Obligation, Lease Terms | 20 years | ||||||||||||||||
Other Lease Obligation, Annual Rental Payments | $6,300,000 | ||||||||||||||||
Annual Rent Escalations | 3.00% | ||||||||||||||||
Maximum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Leverage ratio under covenant | 4.5 | ||||||||||||||||
Maximum | PAETEC Holding Corp. | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Leverage ratio under covenant | 4.75 | ||||||||||||||||
Minimum | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest coverage ratio under covenant | 2.75 |
Derivatives_Schedule_of_Deriva1
Derivatives: Schedule of Derivative Instruments (Details) (Interest Rate Swap, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 17, 2012 | Jan. 17, 2011 |
In Millions, unless otherwise specified | |||||
Derivative [Line Items] | |||||
Weighted average fixed rate paid | 3.57% | 3.57% | 4.26% | 3.39% | 4.55% |
Variable rate received | 0.16% | 0.16% | 0.21% | ||
Other Assets | Designated portion, measured at fair value | |||||
Derivative [Line Items] | |||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 0.4 | 0 | 0 | ||
Other current liabilities | Designated portion, measured at fair value | |||||
Derivative [Line Items] | |||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 28.5 | 30 | 29 | ||
Other noncurrent liabilities | Designated portion, measured at fair value | |||||
Derivative [Line Items] | |||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 48.7 | 41.8 | 91.2 | ||
Accumulated other comprehensive income (loss) | Designated portion, measured at fair value | |||||
Derivative [Line Items] | |||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | 4.9 | 28.2 | -14.7 | ||
Accumulated other comprehensive income (loss) | De-designated portion, unamortized value | |||||
Derivative [Line Items] | |||||
Interest Rate Derivative Instruments De-Designated at Unamortized Value | -8.8 | -24.7 | -45.9 |
Derivatives_Derivative_Instrum
Derivatives: Derivative Instruments, Gain (Loss) (Details) (Interest Rate Swap, Other Comprehensive Income (Loss) [Member], USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Designated as Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Changes in fair value of effective portion, net of tax (a) | ($14.30) | [1] | $17.40 | [1] | ($12.60) | [1] |
De-Designated Hedging Instrument [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amortization of unrealized losses on de-designated interest rate swaps, net of tax (a) | $9.80 | [1] | $22.20 | [1] | $28 | [1] |
[1] | Included as a component of other comprehensive income (loss) and will be reclassified into earnings as the hedged transaction affects earnings. |
Derivatives_Derivatives_Offset
Derivatives: Derivatives Offsetting Assets (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Derivative Asset, Fair Value, Amount Offset Against Collateral [Abstract] | |
Gross Amount of Recognized Assets | $0.40 |
Net Amount of Assets presented in the Consolidated Balance Sheets | 0.4 |
Financial Instruments, Derivative Asset, Not Subject to Master Netting Arrangement | -0.3 |
Cash Collateral Received, Derivative Asset | 0 |
Net Amount, Interest rate swaos | $0.10 |
Derivatives_Offsetting_Liabilt
Derivatives Offsetting Liabilties (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivative Liability, Fair Value, Amount Offset Against Collateral [Abstract] | ||
Gross Amount of Recognized Liabilities, Derivatives | $77.20 | $71.80 |
Net Amount of Liabilities, Derivatives, Amount Not Offset Against Collateral | 77.2 | 71.8 |
Financial Instruments, Derivative Liabilities, Not Subject to Master Netting Arrangement | -0.3 | 0 |
Cash Collateral Received, Derivative Liabilities | 0 | 0 |
Net Amount, Derivatives | $76.90 | $71.80 |
Derivatives_Additional_informa
Derivatives Additional information (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 17, 2012 | 31-May-13 | Jan. 17, 2011 |
derivative | derivative | |||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Number of Instruments Held | 4 | |||||
Other Expense | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | ($0.30) | $1.60 | ($7.50) | |||
Interest Rate Swap | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Number of Instruments Held | 6 | |||||
Derivative, Lower Fixed Interest Rate Range | 1.03% | |||||
Derivative, Higher Fixed Interest Rate Range | 1.04% | |||||
Derivative, Basis Spread on Fixed Rate | 2.75% | |||||
Derivative, Basis Spread on Variable Rate | 0.75% | |||||
Weighted average fixed rate paid | 3.57% | 3.57% | 4.26% | 3.39% | 4.55% | |
Debt Instrument, Credit Rating | A | |||||
May 31, 2013 Transaction Date [Domain] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | 750 | |||||
August 21, 2012 Transaction Date [Domain] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Notional Amount of Interest Rate Cash Flow Hedge Derivatives | 900 | |||||
De-Designated Hedging Instrument [Member] | Interest Rate Swap | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | ($6.60) |
Fair_Value_Measurements_Detail
Fair Value Measurements: (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||||
Interest rate swap liabilities - Level 2 | $77.20 | $71.80 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||||
Long-term debt, including current maturities | 8,777.50 | [1],[2] | 9,008.20 | [1],[2] |
Fair Value, Measurements, Recurring | Level 1 measurements: | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||||
Long-term debt, including current maturities | 0 | [1],[2] | 5,270 | [1],[2] |
Fair Value, Measurements, Recurring | Level 2 measurements: | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||||
Long-term debt, including current maturities | 8,777.50 | [1],[2] | 3,738.20 | [1],[2] |
Fair Value, Measurements, Recurring | Level 2 measurements: | Other Liabilities | Interest Rate Swap | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Item] | ||||
Interest rate swap assets - Level 2 | 0.4 | 0 | ||
Interest rate swap liabilities - Level 2 | $77.20 | $71.80 | ||
[1] | Recognized at carrying value of $8,651.7 million and $8,707.2 million in long-term debt, including current maturities, in the accompanying consolidated balance sheets as of December 31, 2014 and 2013, respectively. | |||
[2] | Due to a lack of new borrowings and other refinancing activities in 2014 resulting in a decline in the frequency and volume of market activity related to Windstream Corp.’s debt obligations, we have reclassified all long-term debt as Level 2. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements: Fair Value (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current maturities | $8,651.70 | $8,707.20 |
Interest Rate Swap | Other Liabilities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Decrease in fair value of interest rate swaps to reflect non-performance risk | $3.30 | $2.60 |
Employee_Benefit_Plans_and_Pos2
Employee Benefit Plans and Postretirement Benefits: Components of Pension Expense and Postretirement Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefits earned during the year | $8.20 | $10.50 | $10 |
Interest cost on benefit obligation | 58.9 | 52.5 | 58 |
Net actuarial loss (gain) | 128.6 | -110.4 | 72.5 |
Amortization of net actuarial loss | 0 | 0 | 0 |
Amortization of prior service credit | -0.1 | -0.1 | -0.1 |
Plan curtailments and settlements | 0 | 0 | 0 |
Expected return on plan assets | -67.3 | -67.8 | -73 |
Net periodic benefit expense (income) | 128.3 | -115.3 | 67.4 |
Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefits earned during the year | 0 | 0 | 0.1 |
Interest cost on benefit obligation | 1.3 | 1.4 | 1.8 |
Net actuarial loss (gain) | 0 | 0 | 0 |
Amortization of net actuarial loss | 0.1 | 1.7 | 2.3 |
Amortization of prior service credit | -5.8 | -8.6 | -11.8 |
Plan curtailments and settlements | -11.5 | -32.2 | -9.6 |
Expected return on plan assets | 0 | 0 | 0 |
Net periodic benefit expense (income) | ($15.90) | ($37.70) | ($17.20) |
Employee_Benefit_Plans_and_Pos3
Employee Benefit Plans and Postretirement Benefits: Summary of Plan Assets, Projected Benefit Obligation and Funded Status of Plans (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Pension Benefits | |||||
Change in Fair Value of Plan Assets | |||||
Fair value of plan assets at beginning of year | $959.70 | $999 | |||
Actual return on plan assets | 144.6 | 10.8 | |||
Employer contributions | 89.9 | 28.5 | |||
Participant contributions | 0 | 0 | |||
Benefits paid | -65.6 | [1] | -78.6 | [1] | |
Settlements | -86.6 | [2] | 0 | [2] | |
Fair value of plan assets at end of year | 1,042 | 959.7 | 999 | ||
Change in Projected Benefit Obligation | |||||
Projected benefit obligation at beginning of year | 1,210.60 | 1,400.10 | |||
Interest cost on projected benefit obligations | 58.9 | 52.5 | 58 | ||
Service costs | 8.2 | 10.5 | 10 | ||
Participant contributions | 0 | 0 | |||
Plan amendments | 0 | 0 | |||
Actuarial (gain) loss | 206.3 | -173.9 | |||
Benefits paid | -65.6 | [1] | -78.6 | [1] | |
Settlements | -86.6 | [2] | 0 | [2] | |
Projected benefit obligation at end of year | 1,331.80 | 1,210.60 | 1,400.10 | ||
Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: | |||||
Current liabilities | -0.8 | -83.8 | |||
Noncurrent liabilities | -289 | -167.1 | |||
Funded status recognized in the consolidated balance sheets | -289.8 | -250.9 | |||
Amounts recognized in accumulated other comprehensive income (loss): | |||||
Net actuarial loss | 0 | 0 | |||
Prior service credits | 0.5 | 0.6 | |||
Net amount recognized in accumulated other comprehensive income | 0.5 | 0.6 | |||
Pension benefits paid from Company assets | 0.8 | 0.8 | |||
Postretirement Benefits | |||||
Change in Fair Value of Plan Assets | |||||
Fair value of plan assets at beginning of year | 0.3 | 0.2 | |||
Actual return on plan assets | 0 | 0.1 | |||
Employer contributions | 3.8 | 1.9 | |||
Participant contributions | 0.4 | 1.5 | |||
Benefits paid | -4.2 | [1] | -3.4 | [1] | |
Settlements | 0 | [2] | 0 | [2] | |
Fair value of plan assets at end of year | 0.3 | 0.3 | 0.2 | ||
Change in Projected Benefit Obligation | |||||
Projected benefit obligation at beginning of year | 31.4 | 42.4 | |||
Interest cost on projected benefit obligations | 1.3 | 1.4 | 1.8 | ||
Service costs | 0 | 0 | 0.1 | ||
Participant contributions | 0.4 | 1.5 | |||
Plan amendments | -0.2 | -0.8 | |||
Actuarial (gain) loss | 3.4 | -9.7 | |||
Benefits paid | -4.2 | [1] | -3.4 | [1] | |
Settlements | -1.5 | [2] | 0 | [2] | |
Projected benefit obligation at end of year | 30.6 | 31.4 | 42.4 | ||
Plan assets less than projected benefit obligation recognized in the consolidated balance sheet: | |||||
Current liabilities | -2.3 | -2.6 | |||
Noncurrent liabilities | -28 | -28.5 | |||
Funded status recognized in the consolidated balance sheets | -30.3 | -31.1 | |||
Amounts recognized in accumulated other comprehensive income (loss): | |||||
Net actuarial loss | -5.8 | -2.6 | |||
Prior service credits | 29.2 | 44.9 | |||
Net amount recognized in accumulated other comprehensive income | $23.40 | $42.30 | |||
[1] | During both 2014 and 2013, pension benefits paid from Windstream’s assets totaled $0.8 million and $0.8 million, respectively. All postretirement benefits in both years were paid from Windstream’s assets. | ||||
[2] | In an effort to reduce our long-term pension obligations and administrative expenses of the Windstream Pension Plan, during the fourth quarter of 2014, we offered to certain eligible participants of the plan the option to receive a single lump sum payment in full settlement of all future pension benefits earned by the participant from prior service to Windstream. Individuals eligible for the voluntary lump sum payment option were former employees and certain of their beneficiaries with termination dates on or prior to June 7, 2014 who had not yet commenced their pension benefit payments. The calculated amount of the single lump sum payment was the actuarial equivalent of the participant’s vested accrued pension benefit as of December 2014. All lump-sum payments were made from existing plan assets. |
Employee_Benefit_Plans_and_Pos4
Employee Benefit Plans and Postretirement Benefits: Estimated Amounts to be Amortized from Accumulated Other Comprehensive Income (Loss) into Net Periodic Benefit Expense (Income) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net actuarial loss | $0 |
Prior service credits | -0.1 |
Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Net actuarial loss | 0.8 |
Prior service credits | ($5.20) |
Employee_Benefit_Plans_and_Pos5
Employee Benefit Plans and Postretirement Benefits: Actuarial Assumptions Used to Calculate Pension and Postretirement Expense (Details) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Pension Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 5.01% | 3.85% | 4.64% | |
Expected return on plan assets | 7.00% | 7.00% | 8.00% | |
Rate of compensation increase | 2.00% | 2.00% | 4.17% | |
Postretirement Benefits | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Discount rate | 4.76% | [1] | 3.87% | 4.58% |
Expected return on plan assets | 7.00% | 7.00% | 8.00% | |
Rate of compensation increase | 0.00% | 0.00% | 0.00% | |
[1] | As a result of the various remeasurements of our postretirement benefit obligations completed in 2013 previously discussed, key assumptions including the discount rate were updated as of each remeasurement date. |
Employee_Benefit_Plans_and_Pos6
Employee Benefit Plans and Postretirement Benefits: Actuarial Assumptions Used to Calculate the Projected Benefit Obligations (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.14% | 5.01% |
Expected return on plan assets | 7.00% | 7.00% |
Rate of compensation increase | 2.00% | 2.00% |
Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Discount rate | 4.21% | 4.99% |
Expected return on plan assets | 7.00% | 7.00% |
Rate of compensation increase | 0.00% | 0.00% |
Employee_Benefit_Plans_and_Pos7
Employee Benefit Plans and Postretirement Benefits: Information Regarding the Healthcare Cost Trend Rate (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Healthcare cost trend rate assumed for next year | 7.50% | 8.00% |
Rate that the cost trend ultimately declines to | 5.00% | 5.00% |
Year that the rate reaches the terminal rate | 2020 | 2020 |
Employee_Benefit_Plans_and_Pos8
Employee Benefit Plans and Postretirement Benefits: Asset Allocation for the Pension Plan, by Asset Category (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 26.90% | 27.70% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||
Target plan asset allocations, minimum | 19.60% | |
Target plan asset allocations, maximum | 31.60% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 53.90% | 52.40% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||
Target plan asset allocations, minimum | 40.30% | |
Target plan asset allocations, maximum | 67.30% | |
Alternative Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 18.20% | 15.00% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||
Target plan asset allocations, minimum | 14.10% | |
Target plan asset allocations, maximum | 24.10% | |
Money market and other short-term interest bearing securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 1.00% | 4.90% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | ||
Target plan asset allocations, minimum | 0.00% | |
Target plan asset allocations, maximum | 4.00% |
Employee_Benefit_Plans_and_Pos9
Employee Benefit Plans and Postretirement Benefits: Fair Values of Pension and Post Retirement Benefit Plan Assets (Details) (Pension Benefits, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | $1,042 | $959.70 | $999 | ||
Investments | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 1,059 | 959.7 | |||
Investments | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 147.3 | 180.3 | |||
Investments | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 710.1 | 664.4 | |||
Investments | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 201.6 | 115 | 46.8 | ||
Investments | Money market funds (a) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 42.4 | [1] | 37 | [1] | |
Investments | Money market funds (a) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [1] | 0 | [1] | |
Investments | Money market funds (a) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 42.4 | [1] | 37 | [1] | |
Investments | Money market funds (a) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [1] | 0 | [1] | |
Investments | Guaranteed annuity contract (b) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 1.4 | [2] | 1.9 | [2] | |
Investments | Guaranteed annuity contract (b) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [2] | 0 | [2] | |
Investments | Guaranteed annuity contract (b) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [2] | 0 | [2] | |
Investments | Guaranteed annuity contract (b) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 1.4 | [2] | 1.9 | [2] | 2.3 |
Investments | Common collective trust funds (c) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 330.8 | [3] | 323.7 | [3],[4] | |
Investments | Common collective trust funds (c) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [3] | 0 | [3],[4] | |
Investments | Common collective trust funds (c) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 330.8 | [3] | 323.7 | [3],[4] | |
Investments | Common collective trust funds (c) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [3] | 0 | [3],[4] | |
Investments | Government and agency securities (d) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 285.6 | [5] | 234.4 | [5] | |
Investments | Government and agency securities (d) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | 0 | [5] | |
Investments | Government and agency securities (d) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 285.6 | [5] | 234.4 | [5] | |
Investments | Government and agency securities (d) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | 0 | [5] | |
Investments | Corporate bonds and asset backed securities (d) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 34.4 | [5] | 94.5 | [5] | |
Investments | Corporate bonds and asset backed securities (d) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | 0 | [5] | |
Investments | Corporate bonds and asset backed securities (d) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 34.4 | [5] | 94.5 | [5] | |
Investments | Corporate bonds and asset backed securities (d) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | 0 | [5] | |
Investments | Common and preferred stocks - domestic (d) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 54.8 | [5] | 69.4 | [5] | |
Investments | Common and preferred stocks - domestic (d) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 54.7 | [5] | 69.3 | [5] | |
Investments | Common and preferred stocks - domestic (d) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | 0 | [5] | |
Investments | Common and preferred stocks - domestic (d) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0.1 | [5] | 0.1 | [5] | 0.1 |
Investments | Common Stock - Windstream Holdings, Inc. (d) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 26.3 | [5] | |||
Investments | Common Stock - Windstream Holdings, Inc. (d) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 26.3 | [5] | |||
Investments | Common Stock - Windstream Holdings, Inc. (d) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | |||
Investments | Common Stock - Windstream Holdings, Inc. (d) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | |||
Investments | Common and preferred stocks - international (d) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 25.3 | [5] | 24.1 | [5] | |
Investments | Common and preferred stocks - international (d) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 25.3 | [5] | 24.1 | [5] | |
Investments | Common and preferred stocks - international (d) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | 0 | [5] | |
Investments | Common and preferred stocks - international (d) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | 0 | [5] | |
Investments | Derivative financial instruments (e) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 16.9 | [6] | -25.1 | [6] | |
Investments | Derivative financial instruments (e) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [6] | 0.1 | [6] | |
Investments | Derivative financial instruments (e) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 16.9 | [6] | -25.2 | [6] | |
Investments | Derivative financial instruments (e) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [6] | 0 | [6] | |
Investments | Hedge fund of funds (f) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 61.9 | [7] | 60.2 | [7] | |
Investments | Hedge fund of funds (f) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [7] | 0 | [7] | |
Investments | Hedge fund of funds (f) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [7] | 0 | [7] | |
Investments | Hedge fund of funds (f) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 61.9 | [7] | 60.2 | [7] | 0 |
Investments | Mutual fund (d) (1) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 66.7 | [5] | 59.4 | [4],[5] | |
Investments | Mutual fund (d) (1) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 66.7 | [5] | 59.4 | [4],[5] | |
Investments | Mutual fund (d) (1) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | 0 | [4],[5] | |
Investments | Mutual fund (d) (1) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [5] | 0 | [4],[5] | |
Investments | Real estate and private equity funds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 138.2 | [8] | 52.8 | [8] | |
Investments | Real estate and private equity funds | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [8] | 0 | [8] | |
Investments | Real estate and private equity funds | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [8] | 0 | [8] | |
Investments | Real estate and private equity funds | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 138.2 | [8] | 52.8 | [8] | 44.4 |
Investments | Other (h) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0.6 | [9] | 1.1 | [9] | |
Investments | Other (h) | Quoted Price in Active Markets for Identical Assets - Level 1 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0.6 | [9] | 1.1 | [9] | |
Investments | Other (h) | Significant Other Observable Inputs - Level 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [9] | 0 | [9] | |
Investments | Other (h) | Significant Unobservable Inputs - Level 3 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 0 | [9] | 0 | [9] | |
Dividends and interest receivable | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | 3.7 | 3.9 | |||
Pending trades | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Fair Value | ($20.70) | ($3.90) | |||
[1] | Money market funds are based on the fair value of the underlying assets held as determined by the fund manager on the last business day of the year. The underlying assets are mostly comprised of certificates of deposit, time deposits and commercial paper valued at amortized cost. | ||||
[2] | The guaranteed annuity contract is based on the value of the underlying contracts adjusted to market value which recognizes that either long-term assets would have to be sold before contract maturity or new contributions by other contract holders would have to be exchanged for funds being transferred, precluding these contributions from being invested at their current state of return. | ||||
[3] | Units in common collective trust funds are valued by reference to the funds’ underlying assets and based on the net asset value as reported by the fund manager on the last business day of the Plan year. The underlying assets are mostly comprised of publicly traded equity securities and fixed income securities. These securities are valued at the official closing price of, or the last reported sale prices as of the close of business or, in the absence of any sales, at the latest available bid price. | ||||
[4] | Amount reflects the correction of an immaterial error for a mutual fund investment previously reported as a common collective trust fund in Level 2 that should have been reported as a Level 1. | ||||
[5] | Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and registered investment companies traded in active markets on securities exchanges are valued based on quoted market prices on the last day of the Plan year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securities that trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. | ||||
[6] | Derivative financial instruments consist primarily of swaps and are valued at fair value based on models that reflect the contractual terms of the instruments. Inputs include primarily observable market information, such as swap curves, benchmark yields, rating updates and interdealer broker quotes at the end of the Plan year. | ||||
[7] | Hedge funds of funds hold a portfolio of other investment funds instead of directly investing in specific securities, commodities or other financial instruments. The funds are valued based on the net asset value of the fund determined by the fund manager on the last business day of the Plan year. The net asset value is derived from the fair value of each underlying fund comprising the hedge fund of funds. | ||||
[8] | The real estate fund is valued based on the net asset value of the fund on the last business day of the Plan year. The net asset value is derived from the fair value of the underlying net assets of the fund. Private equity funds consist of investments in limited partnerships and are valued based on the Plan’s capital account balance at year end as reported in the audited financial statements of the partnership. This category also includes the contributed real estate properties we are leasing back from the plan. The fair value of these properties is based on independent appraisals. | ||||
[9] | Other investments include warrants, interest bearing cash and investments in foreign currency. These investments are valued at their quoted market price on the last day of the Plan year. Investments traded in markets that are not considered active are valued based on a compilation of primarily observable market information or a broker quote. |
Recovered_Sheet1
Employee Benefit Plans and Postretirement Benefits: Pension Plan Assets, Unobservable Input Reconciliation (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Transfers In or Out of Levels 1, 2, or 3 | $0 | ||||
Pension Benefits | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at beginning of year | 999,000,000 | ||||
Fair value of plan assets at end of year | 1,042,000,000 | 959,700,000 | 999,000,000 | ||
Pension Benefits | Investments | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at end of year | 1,059,000,000 | 959,700,000 | |||
Pension Benefits | Investments | Domestic equities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at end of year | 54,800,000 | [1] | 69,400,000 | [1] | |
Pension Benefits | Investments | Hedge fund of funds | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at end of year | 61,900,000 | [2] | 60,200,000 | [2] | |
Pension Benefits | Investments | Real estate and private equity funds | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at end of year | 138,200,000 | [3] | 52,800,000 | [3] | |
Pension Benefits | Investments | Guaranteed annuity contract | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at end of year | 1,400,000 | [4] | 1,900,000 | [4] | |
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at beginning of year | 115,000,000 | 46,800,000 | |||
Gains on plan assets still held at year-end | 7,500,000 | 7,200,000 | |||
Gains related to plan assets sold during the year | 900,000 | ||||
Purchases and sales, net | 78,200,000 | 61,000,000 | |||
Transfers in and/or out of level 3 | 0 | 0 | |||
Fair value of plan assets at end of year | 201,600,000 | 115,000,000 | |||
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | Domestic equities | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at beginning of year | 100,000 | [1] | 100,000 | ||
Gains on plan assets still held at year-end | 0 | 0 | |||
Gains related to plan assets sold during the year | 0 | ||||
Purchases and sales, net | 0 | 0 | |||
Transfers in and/or out of level 3 | 0 | 0 | |||
Fair value of plan assets at end of year | 100,000 | [1] | 100,000 | [1] | |
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | Hedge fund of funds | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at beginning of year | 60,200,000 | [2] | 0 | ||
Gains on plan assets still held at year-end | 1,700,000 | 2,700,000 | |||
Gains related to plan assets sold during the year | 0 | ||||
Purchases and sales, net | 0 | 57,500,000 | |||
Transfers in and/or out of level 3 | 0 | 0 | |||
Fair value of plan assets at end of year | 61,900,000 | [2] | 60,200,000 | [2] | |
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | Real estate and private equity funds | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at beginning of year | 52,800,000 | [3] | 44,400,000 | ||
Gains on plan assets still held at year-end | 5,700,000 | 4,300,000 | |||
Gains related to plan assets sold during the year | 900,000 | ||||
Purchases and sales, net | 78,800,000 | 4,100,000 | |||
Transfers in and/or out of level 3 | 0 | 0 | |||
Fair value of plan assets at end of year | 138,200,000 | [3] | 52,800,000 | [3] | |
Pension Benefits | Significant Unobservable Inputs - Level 3 | Investments | Guaranteed annuity contract | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Fair value of plan assets at beginning of year | 1,900,000 | [4] | 2,300,000 | ||
Gains on plan assets still held at year-end | 100,000 | 200,000 | |||
Gains related to plan assets sold during the year | 0 | ||||
Purchases and sales, net | -600,000 | -600,000 | |||
Transfers in and/or out of level 3 | 0 | 0 | |||
Fair value of plan assets at end of year | $1,400,000 | [4] | $1,900,000 | [4] | |
[1] | Government and agency securities, corporate bonds and asset backed securities, common and preferred stocks, and registered investment companies traded in active markets on securities exchanges are valued based on quoted market prices on the last day of the Plan year. Securities traded in markets that are not considered active are valued based on quoted market prices, broker or dealer quotes or alternative pricing sources with reasonable levels of price transparency. Securities that trade infrequently and therefore have little or no price transparency are valued using best estimates, including unobservable inputs. | ||||
[2] | Hedge funds of funds hold a portfolio of other investment funds instead of directly investing in specific securities, commodities or other financial instruments. The funds are valued based on the net asset value of the fund determined by the fund manager on the last business day of the Plan year. The net asset value is derived from the fair value of each underlying fund comprising the hedge fund of funds. | ||||
[3] | The real estate fund is valued based on the net asset value of the fund on the last business day of the Plan year. The net asset value is derived from the fair value of the underlying net assets of the fund. Private equity funds consist of investments in limited partnerships and are valued based on the Plan’s capital account balance at year end as reported in the audited financial statements of the partnership. This category also includes the contributed real estate properties we are leasing back from the plan. The fair value of these properties is based on independent appraisals. | ||||
[4] | The guaranteed annuity contract is based on the value of the underlying contracts adjusted to market value which recognizes that either long-term assets would have to be sold before contract maturity or new contributions by other contract holders would have to be exchanged for funds being transferred, precluding these contributions from being invested at their current state of return. |
Recovered_Sheet2
Employee Benefit Plans and Postretirement Benefits: Estimated Future Employer Contributions, Benefit Payments, Including Executive Retirement Agreements (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Pension Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions in 2015 | $0.80 |
Expected benefit payments: | |
2015 | 78.4 |
2016 | 79.3 |
2017 | 81.4 |
2018 | 81.4 |
2019 | 83.1 |
2020-2024 | 420.5 |
Postretirement Benefits | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Expected employer contributions in 2015 | 2.3 |
Expected benefit payments: | |
2015 | 2.3 |
2016 | 2.2 |
2017 | 2.1 |
2018 | 1.9 |
2019 | 1.8 |
2020-2024 | $6.70 |
Recovered_Sheet3
Employee Benefit Plans and Postretirement Benefits: (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Jul. 29, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 07, 2014 | Sep. 13, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Contributions by Employer, Non Cash, Value | $80.90 | ||||||
Other Lease Obligation, Lease Terms | 15 years 0 months | 10 years | |||||
Other Lease Obligation, Annual Rental Payments | 650 | ||||||
Annual Rent Escalations | 2.00% | ||||||
Number of Renewal Options | 4 | 3 | |||||
Lease Term of Renewal Options | 5 years 0 months | 5 | |||||
Matching contribution to employee savings accounts, maximum | 4.00% | ||||||
Matching contribution to employee savings accounts, employees contributions, minimum | 5.00% | ||||||
Recorded expenses related to the employee savings plan | 18.3 | 18.1 | 17.8 | ||||
Annual matching contribution to defined contribution plan, Common Stock | 2.7 | ||||||
Defined Contribution Plan, Contributions by Employer, Common Stock, Value | 21.6 | ||||||
Defined Benefit Plan, Contributions by Employer, Common Stock, Value | 20.4 | ||||||
Pension Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Accumulated Benefit Obligation | 1,309.70 | 1,193 | 1,375.80 | ||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long Term Return on Assets | 7.00% | 7.00% | |||||
Defined Benefit Plan, Number of Shares of Equity Securities Issued by Employer and Related Parties Included in Plan Assets | 0 | 1 | 3.3 | ||||
Other Lease Obligation, Lease Terms | 20 years | ||||||
Other Lease Obligation, Annual Rental Payments | 6.3 | ||||||
Annual Rent Escalations | 3.00% | ||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 0.8 | ||||||
Defined Benefit Plan, Contributions by Employer, Common Stock, Value | 8.3 | 27.8 | |||||
Postretirement Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 11.5 | 32.2 | 9.6 | ||||
Minimum percentage of unrecognized actuarial gains or losses that are amortized over the lesser of 10 years or the average remaining service life of active employees | 10.00% | ||||||
Unrealized Actuarial Gains (Losses), Amortization Period, Maximum | 10 years | ||||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Long Term Return on Assets | 7.00% | 7.00% | |||||
One percent increase in the assumed healthcare cost trend rate, increase in postretirement benefit cost | 0.1 | ||||||
One percent decrease in the assumed healthcare cost trend rate, decrease in postretirement benefit cost | 0.1 | ||||||
One percent increase in the assumed healthcare cost trend rate, increase in postretirement benefit obligation | 1.8 | ||||||
One percent decrease in the assumed healthcare cost trend rate, decrease in postretirement benefit obligation | 1.5 | ||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 2.3 | ||||||
Pension Plan and Other Pension Plans, Defined Benefit Plan [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 0.8 | ||||||
Cost of Sales [Member] | Postretirement Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 7.1 | 24.1 | 7.4 | ||||
Selling, General and Administrative Expenses [Member] | Postretirement Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 4.4 | 8.1 | 2.2 | ||||
Equity Securities [Member] | Pension Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Target Plan Asset Allocations | 26.00% | ||||||
Fixed Income Funds [Member] | Pension Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Target Plan Asset Allocations | 53.00% | ||||||
Alternative Investments [Member] | Pension Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Target Plan Asset Allocations | 21.00% | ||||||
Accumulated Other Comprehensive Income | Postretirement Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 10 | 31.8 | |||||
Other Liabilities | Postretirement Benefits | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $1.50 | $0.40 |
Vesting_Periods_and_Grant_Date
Vesting Periods and Grant Date Fair Value for Shares Issued (Details) (Restricted Stock and Restricted Stock Units, USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 5,868,000 | 5,259,500 | |
Total granted | 4,681,500 | 3,376,700 | 2,377,300 |
Grant date fair value (Millions) | $39.30 | $32.60 | $29.40 |
Vest ratably over a three-year service period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 2,929,300 | 2,254,000 | 1,543,700 |
Vest ratably over a two-year service period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 18,300 | 68,400 | 0 |
Vest variably over a three-year service period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 247,300 | 186,100 | 54,700 |
Vest contingently over a three-year performance period | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 1,176,300 | 786,700 | 723,500 |
Vest one year from date of grant, service based - granted to non-employee directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 121,000 | 81,500 | 51,400 |
Vest three years from date of grant, service based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Shares | 189,300 | 0 | 4,000 |
Restricted_Share_Activity_Deta
Restricted Share Activity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Weighted Average Fair Value | |||
Beginning balance | 10.75 | ||
Granted | 8.39 | ||
Vested | 11.19 | ||
Forfeited | 8.85 | ||
Ending balance | 9.17 | ||
Restricted Stock and Restricted Stock Units | |||
(Thousands) Underlying Number of Shares | |||
Beginning balance | 5,259,500 | ||
Granted | 4,681,500 | 3,376,700 | 2,377,300 |
Vested | -2,548,300 | ||
Forfeited | -1,524,700 | ||
Ending balance | 5,868,000 | 5,259,500 |
Option_Activity_Details
Option Activity (Details) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning balance | 1,464,400 |
Granted | 0 |
Exercised | -228,200 |
Canceled | -370,000 |
Forfeited | -12,400 |
Ending balance | 853,800 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Beginning | $12.29 |
Granted | $0 |
Exercised | $6.84 |
Canceled | $13.78 |
Forfeited | $8.93 |
Ending | $13.15 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Vested or expected to vest at December 31, 2014 | 834,100 |
Exercisable at December 31, 2014 | 826,100 |
Vested or expected to vest at December 31, 2014 | $13.26 |
Exercisable at December 31, 2014 | $13.30 |
Outstanding at December 31, 2014 | 2 years 9 months |
Vested or expected to vest at December 31, 2014 | 2 years 8 months |
Exercisable at December 31, 2013 | 2 years 8 months |
Outstanding at December 31, 2013 | $0.80 |
Vested or expected to vest at December 31, 2013 | 0.8 |
Excercisable at December 31, 2013 | $0.80 |
Options_Outstanding_by_Exercis
Options Outstanding, by Exercise Price (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options Outstanding (Thousands) | 853,800 |
Options Outstanding, Weighted Average Exercise Price | $13.15 |
Number of Options Exercisable (Thousands) | 826,100 |
Options Exercisable, Weighted Average Exercise Price | $13.30 |
$1.96 - $4.70 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options Outstanding (Thousands) | 163,200 |
Options Outstanding, Weighted Average Exercise Price | $4.10 |
Number of Options Exercisable (Thousands) | 163,200 |
Options Exercisable, Weighted Average Exercise Price | $4.10 |
Range of Exercise Prices, Lower Range Limit | $1.96 |
Range of Exercise Prices, Upper Range Limit | $4.70 |
$4.71 - $8.30 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options Outstanding (Thousands) | 155,000 |
Options Outstanding, Weighted Average Exercise Price | $7.29 |
Number of Options Exercisable (Thousands) | 135,100 |
Options Exercisable, Weighted Average Exercise Price | $7.15 |
Range of Exercise Prices, Lower Range Limit | $4.71 |
Range of Exercise Prices, Upper Range Limit | $8.30 |
$8.31 - $14.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options Outstanding (Thousands) | 175,100 |
Options Outstanding, Weighted Average Exercise Price | $11.60 |
Number of Options Exercisable (Thousands) | 167,300 |
Options Exercisable, Weighted Average Exercise Price | $11.65 |
Range of Exercise Prices, Lower Range Limit | $8.31 |
Range of Exercise Prices, Upper Range Limit | $14 |
$14.01 - $29.27 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Options Outstanding (Thousands) | 360,500 |
Options Outstanding, Weighted Average Exercise Price | $20.53 |
Number of Options Exercisable (Thousands) | 360,500 |
Options Exercisable, Weighted Average Exercise Price | $20.53 |
Range of Exercise Prices, Lower Range Limit | $14.01 |
Range of Exercise Prices, Upper Range Limit | $29.27 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans: Schedule of Share-based Compensation Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Share-based Compensation Expense [Line Items] | |||
Employee savings plan (See Note 7) | $18.30 | $18.10 | $17.80 |
Executive and management incentive compensation plans | 1.4 | 0 | 0 |
Share-based compensation expense | 41.8 | 44.9 | 43.2 |
Common Stock and Additional Paid-In Capital | Restricted Stock and Restricted Stock Units | |||
Schedule of Share-based Compensation Expense [Line Items] | |||
Restricted stock, restricted units and stock options | $22.10 | $26.80 | $25.40 |
ShareBased_Compensation_Plans_2
Share-Based Compensation Plans - Additional Information (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Operating Target Consideration Period | 3 years | |||
Unrecognized compensation expense | $29.20 | |||
Fair value of shares vested | 28.5 | 24.2 | 22.7 | |
Share-based compensation expense | 22.1 | 26.8 | 25.4 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | |||
Options granted to former employees of acquiree | 0 | |||
Aggregate intrinsic value of options exercised | 0.4 | |||
Share-based compensation expense | 41.8 | 44.9 | 43.2 | |
Common Stock and Additional Paid-In Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 22.1 | 26.8 | 25.4 | |
Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for issuance under the Windstream 2006 Equity Incentive Plan | 35,000,000 | |||
Available shares for grant | 17,700,000 | |||
Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance-based restricted stock units, as a percentage of the award | 150.00% | |||
Restricted Stock and Restricted Stock Units | Common Stock and Additional Paid-In Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 22 | 26.7 | 25.2 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 0.1 | 0.1 | 0.2 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $0 | |||
PAETEC Holding Corp. | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted to former employees of acquiree | 3,900,000 | |||
Acquisition of business, shares offered for each share of the acquired entity | 0.46 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Initial Contractual Term | 10 years | |||
PAETEC Holding Corp. | Restricted Stock Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Available shares for grant | 2,000,000 | |||
PAETEC Holding Corp. | Employee Stock Option | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
PAETEC Holding Corp. | Employee Stock Option | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Merger_Integration_and_Restruc2
Merger, Integration and Restructuring Charges: (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
position | position | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 750 | 350 | |
Restructuring and Related Cost, Incurred Cost | $22.40 | ||
Decrease in net income due to merger, integration and restructuring charges | 46.6 | 24.3 | 58.2 |
Restructuring Integration and Merger Cost [Abstract] | |||
Transaction costs associated with acquisitions | 0 | 0 | 7.1 |
Employee related transition costs | 0 | 7.8 | 20.3 |
Information technology conversion costs | 20.8 | 9.5 | 6.1 |
Rebranding, consulting and other costs | 19.6 | 12.9 | 31.9 |
Total merger and integration costs | 40.4 | 30.2 | 65.4 |
Restructuring charges | 35.9 | 8.6 | 27.2 |
Total merger, integration and restructuring charges | 76.3 | 38.8 | 92.6 |
Restructuring Integration and Merger Cost [Roll Forward] | |||
Balance, beginning of period | 14 | 20.1 | |
Merger, integration and restructuring charges | 76.3 | 38.8 | 92.6 |
Cash outlays during the period | -79.1 | -44.9 | |
Balance, end of period | 11.2 | 14 | 20.1 |
Voluntary Separation Initiative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Number of Positions Eliminated | 295 | ||
Restructuring Announcement [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 24.1 | ||
Restructuring Integration and Merger Cost [Roll Forward] | |||
Balance, end of period | 4.3 | ||
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 6.3 | ||
Other integration [Member] | |||
Restructuring Integration and Merger Cost [Roll Forward] | |||
Balance, end of period | $6.90 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Pension and postretirement plans | $14.50 | $26.40 | $43.90 |
Unrealized holding gains (losses) on interest rate swaps | |||
Accumulated other comprehensive income | 12.1 | 28.5 | 6.4 |
Interest Rate Swap | |||
Unrealized holding gains (losses) on interest rate swaps | |||
Designated portion | 3.1 | 17.4 | -9.1 |
De-designated portion | ($5.50) | ($15.30) | ($28.40) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive Income (Roll-Forward) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | $28.50 | $6.40 | |
Other comprehensive loss before reclassifications | -16.5 | ||
Amounts reclassified from other accumulated comprehensive income (a) | 0.1 | [1] | -1.9 |
Ending balance | 12.1 | 28.5 | |
Gains (Losses) on Interest Rate Swaps | |||
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | 2.1 | ||
Other comprehensive loss before reclassifications | -14.3 | ||
Amounts reclassified from other accumulated comprehensive income (a) | 9.8 | [1] | |
Ending balance | -2.4 | ||
Pension and Postretirement Plans | |||
Accumulated other comprehensive income [Roll Forward] | |||
Beginning balance | 26.4 | ||
Other comprehensive loss before reclassifications | -2.2 | ||
Amounts reclassified from other accumulated comprehensive income (a) | -9.7 | [1] | |
Ending balance | $14.50 | ||
[1] | See separate table below for details about these reclassifications. |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income: Accumulated Other Comprehensive Income (Reclassifications) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Total reclassifications for the period, net of tax | $0.10 | [1] | ($1.90) | |
Plan curtailments and settlements (a) | ||||
Pension and postretirement plans | -10 | [2] | -31.8 | [2] |
Amortization of net actuarial loss (a) | ||||
Pension and postretirement plans | 0.1 | [2] | 1.7 | [2] |
Amortization of prior service credits (a) | ||||
Pension and postretirement plans | -5.9 | [2] | -8.7 | [2] |
Pension and Postretirement Plans | ||||
Total reclassifications for the period, net of tax | -9.7 | -24.1 | ||
Interest Rate Swap | ||||
Total reclassifications for the period, net of tax | 9.8 | 22.2 | ||
Interest expense | Interest Rate Swap | ||||
Amortization of unrealized losses on de-designated interest rate swaps | 15.8 | 35.9 | ||
(Loss) income from continuing operations before income taxes | Pension and Postretirement Plans | ||||
Pension and postretirement plans | -15.8 | -38.8 | ||
(Loss) income from continuing operations before income taxes | Interest Rate Swap | ||||
Amortization of unrealized losses on de-designated interest rate swaps | 15.8 | 35.9 | ||
Income tax (benefit) expense | Pension and Postretirement Plans | ||||
Income tax (benefit) expense | 6.1 | 14.7 | ||
Income tax (benefit) expense | Interest Rate Swap | ||||
Income tax (benefit) expense | ($6) | ($13.70) | ||
[1] | See separate table below for details about these reclassifications. | |||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic benefit (income) expense. See Note 7 for additional details. |
Income_Taxes_Income_Taxes_Inco
Income Taxes: Income Taxes (Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $0.80 | ($27) | $6.20 |
State | -12.5 | -2.5 | 13 |
Current Income Tax Expense (Benefit), Total | -11.7 | -29.5 | 19.2 |
Deferred: | |||
Federal | -18.3 | 104 | 84 |
State | 4.9 | 30.8 | -5 |
Deferred Income Tax Expense (Benefit), Total | -13.4 | 134.8 | 79 |
Income tax (benefit) expense | ($25.10) | $105.30 | $98.20 |
Income_Taxes_Differences_Betwe
Income Taxes (Differences Between Federal Income Tax Statutory Rates and Effective Income Tax Rates, Which Include Both Federal and State Income Taxes) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Increase (decrease) | |||
State income taxes, net of federal benefit | 4.70% | 3.30% | 2.00% |
Adjust deferred taxes for state net operating loss carryforward | 0.00% | -0.10% | 0.00% |
Transaction costs | -8.00% | 0.00% | 0.00% |
Tax refunds | 7.30% | 0.00% | 0.00% |
Valuation allowance | -15.40% | -0.30% | 0.00% |
Income tax reserves | -0.40% | -5.40% | 0.00% |
Research and development credit | 12.10% | -2.20% | 0.00% |
Disallowed loss | -2.90% | 0.00% | 0.00% |
Tax credits | 2.20% | 0.00% | 0.00% |
Other items, net | 4.30% | 0.60% | 0.10% |
Effective income tax rate | 38.90% | 30.90% | 37.10% |
Income_Taxes_Significant_Compo
Income Taxes (Significant Components of the Net Deferred Income Tax Liability (Asset)) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Property, plant and equipment | $1,146.70 | $1,278.40 |
Goodwill and other intangible assets | 1,312.80 | 1,322.50 |
Operating loss and credit carryforward | -604 | -677.8 |
Postretirement and other employee benefits | -121.8 | -108.6 |
Unrealized holding loss and interest rate swaps | -5.3 | -1.4 |
Deferred compensation | -5.7 | -5.2 |
Bad debt | -32.1 | -30.3 |
Deferred debt costs | -12.9 | -17.7 |
Restricted stock | -8.5 | -12.1 |
Other, net | 9.1 | -35.9 |
Deferred Tax Assets (Liabilities), Gross, Total | 1,678.30 | 1,711.90 |
Valuation allowance | 94.9 | 84.9 |
Deferred income taxes, net | 1,773.20 | 1,796.80 |
Deferred tax assets | -898 | -930.8 |
Deferred tax liabilities | $2,671.20 | $2,727.60 |
Income_Taxes_Additional_Inform
Income Taxes (Additional Information) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $94.90 | $84.90 |
Internal Revenue Service (IRS) | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 1,304.20 | 1,545.60 |
State tax credit carryforwards | 34.6 | 22.6 |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 1,990.60 | 2,001.20 |
State tax credit carryforwards | $24.10 | $22.20 |
Income_Taxes_Reconciliation_of
Income Taxes: Reconciliation of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Beginning balance | $4.60 | $18.30 | $18.80 |
Additions based on tax positions related to current year | 2.3 | 2.7 | 0 |
Additions based on tax positions of prior years | 0 | 0.7 | 0 |
Reductions for tax positions of prior years | -0.1 | -0.2 | -0.5 |
Reduction as a result of a lapse of the applicable statute of limitations | -0.2 | -16.9 | 0 |
Settlements | -1 | 0 | 0 |
Ending balance | 5.6 | 4.6 | 18.3 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 5 | 3.4 | 16.1 |
Unrecognized Tax Benefits with Uncertain Timing for Deductibility | 0.6 | 0.6 | 0.8 |
Interest and penalties recognized on unrecognized tax benefits | 0.1 | 0.1 | 0.6 |
Interest and penalties accrued on unrecognized tax benefits | $0.10 | $0.10 | $3.10 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Minimum Rental Commitments for All Non-Cancelable Operating Leases) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
2015 | $120.40 | ||
2016 | 99.3 | ||
2017 | 85 | ||
2018 | 70.5 | ||
2019 | 59.6 | ||
Thereafter | 220.8 | ||
Total | 655.6 | ||
Rental expense | $134.50 | $120.20 | $108.20 |
Supplemental_Guarantor_Informa2
Supplemental Guarantor Information: Condensed Consolidating Statement of Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues and sales: | |||||||||||
Service revenues | $5,647,600,000 | $5,775,500,000 | $5,908,300,000 | ||||||||
Product sales | 181,900,000 | 212,600,000 | 231,200,000 | ||||||||
Total revenues and sales | 1,443,100,000 | 1,455,500,000 | 1,466,000,000 | 1,464,900,000 | 1,491,400,000 | 1,498,500,000 | 1,501,700,000 | 1,496,500,000 | 5,829,500,000 | 5,988,100,000 | 6,139,500,000 |
Costs and expenses: | |||||||||||
Cost of services | 2,719,300,000 | 2,492,100,000 | 2,692,200,000 | ||||||||
Cost of products sold | 156,600,000 | 183,900,000 | 206,600,000 | ||||||||
Selling, general, and administrative | 983,800,000 | 923,400,000 | 967,300,000 | ||||||||
Depreciation and amortization | 1,386,400,000 | 1,340,900,000 | 1,296,900,000 | ||||||||
Merger and integration costs | 40,400,000 | 30,200,000 | 65,400,000 | ||||||||
Restructuring charges | 35,900,000 | 8,600,000 | 27,200,000 | ||||||||
Total costs and expenses | 5,322,400,000 | 4,979,100,000 | 5,255,600,000 | ||||||||
Operating (loss) income | 20,500,000 | 151,600,000 | 167,200,000 | 167,800,000 | 326,500,000 | 219,600,000 | 227,000,000 | 235,900,000 | 507,100,000 | 1,009,000,000 | 883,900,000 |
Other (expense) income, net | 100,000 | -12,500,000 | 4,600,000 | ||||||||
(Loss) gain on early extinguishment of debt | 0 | -28,500,000 | 1,900,000 | ||||||||
Interest expense | -571,800,000 | -627,700,000 | -625,100,000 | ||||||||
(Loss) income from continuing operations before income taxes | -64,600,000 | 340,300,000 | 265,300,000 | ||||||||
Income tax (benefit) expense | -25,100,000 | 105,300,000 | 98,200,000 | ||||||||
Income (loss) from continuing operations | -39,500,000 | 235,000,000 | 167,100,000 | ||||||||
Discontinued operations | 0 | 6,000,000 | 900,000 | ||||||||
Net (loss) income | -77,500,000 | 8,000,000 | 14,000,000 | 16,000,000 | 118,400,000 | 30,600,000 | 39,700,000 | 52,300,000 | -39,500,000 | 241,000,000 | 168,000,000 |
Comprehensive (loss) income | -55,900,000 | 263,100,000 | 172,500,000 | ||||||||
Windstream Corp. | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | 0 | 0 | 0 | ||||||||
Product sales | 0 | 0 | 0 | ||||||||
Total revenues and sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | 0 | 0 | 0 | ||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Selling, general, and administrative | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 21,900,000 | 25,000,000 | 28,800,000 | ||||||||
Merger and integration costs | 0 | 0 | 0 | ||||||||
Restructuring charges | 0 | 0 | 0 | ||||||||
Total costs and expenses | 21,900,000 | 25,000,000 | 28,800,000 | ||||||||
Operating (loss) income | -21,900,000 | -25,000,000 | -28,800,000 | ||||||||
Earnings (losses) from subsidiaries | 217,300,000 | 526,100,000 | 432,000,000 | ||||||||
Other (expense) income, net | -200,000 | 2,100,000 | -4,400,000 | ||||||||
(Loss) gain on early extinguishment of debt | -17,200,000 | 0 | |||||||||
Intercompany interest income (expense) | 127,200,000 | 134,500,000 | 135,300,000 | ||||||||
Interest expense | -523,900,000 | -584,600,000 | -540,900,000 | ||||||||
(Loss) income from continuing operations before income taxes | -201,500,000 | 35,900,000 | -6,800,000 | ||||||||
Income tax (benefit) expense | -163,400,000 | -205,400,000 | -174,800,000 | ||||||||
Income (loss) from continuing operations | 241,300,000 | 168,000,000 | |||||||||
Discontinued operations | 0 | 0 | |||||||||
Net (loss) income | -38,100,000 | 241,300,000 | 168,000,000 | ||||||||
Comprehensive (loss) income | -54,500,000 | 263,400,000 | 172,500,000 | ||||||||
Windstream Corp. | PAETEC Holding Corp. | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | 0 | 0 | 0 | ||||||||
Product sales | 0 | 0 | 0 | ||||||||
Total revenues and sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | 0 | 0 | 0 | ||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Selling, general, and administrative | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 21,900,000 | 25,000,000 | 28,800,000 | ||||||||
Merger and integration costs | 0 | 0 | 0 | ||||||||
Restructuring charges | 0 | 0 | 0 | ||||||||
Total costs and expenses | 21,900,000 | 25,000,000 | 28,800,000 | ||||||||
Operating (loss) income | -21,900,000 | -25,000,000 | -28,800,000 | ||||||||
Earnings (losses) from subsidiaries | 217,300,000 | 526,100,000 | 432,000,000 | ||||||||
Other (expense) income, net | -200,000 | 2,100,000 | -4,400,000 | ||||||||
(Loss) gain on early extinguishment of debt | -17,200,000 | 0 | |||||||||
Intercompany interest income (expense) | 127,200,000 | 134,500,000 | 135,300,000 | ||||||||
Interest expense | -523,900,000 | -584,600,000 | -540,900,000 | ||||||||
(Loss) income from continuing operations before income taxes | -201,500,000 | 35,900,000 | -6,800,000 | ||||||||
Income tax (benefit) expense | -163,400,000 | -205,400,000 | -174,800,000 | ||||||||
Income (loss) from continuing operations | 241,300,000 | 168,000,000 | |||||||||
Discontinued operations | 0 | 0 | |||||||||
Net (loss) income | -38,100,000 | 241,300,000 | 168,000,000 | ||||||||
Comprehensive (loss) income | -54,500,000 | 263,400,000 | 172,500,000 | ||||||||
PAETEC Issuer | PAETEC Holding Corp. | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | 0 | 0 | 0 | ||||||||
Product sales | 0 | 0 | 0 | ||||||||
Total revenues and sales | 0 | 0 | 0 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | 0 | 0 | 0 | ||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Selling, general, and administrative | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Merger and integration costs | 0 | 0 | 0 | ||||||||
Restructuring charges | 0 | 0 | 0 | ||||||||
Total costs and expenses | 0 | 0 | 0 | ||||||||
Operating (loss) income | 0 | 0 | 0 | ||||||||
Earnings (losses) from subsidiaries | -138,600,000 | -66,500,000 | -2,300,000 | ||||||||
Other (expense) income, net | 0 | 0 | 0 | ||||||||
(Loss) gain on early extinguishment of debt | -11,300,000 | 1,900,000 | |||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Interest expense | -38,400,000 | -40,900,000 | -84,200,000 | ||||||||
(Loss) income from continuing operations before income taxes | -177,000,000 | -118,700,000 | -84,600,000 | ||||||||
Income tax (benefit) expense | -16,600,000 | -19,300,000 | -30,800,000 | ||||||||
Income (loss) from continuing operations | -99,400,000 | -53,800,000 | |||||||||
Discontinued operations | 0 | 0 | |||||||||
Net (loss) income | -160,400,000 | -99,400,000 | -53,800,000 | ||||||||
Comprehensive (loss) income | -160,400,000 | -99,400,000 | -53,800,000 | ||||||||
Guarantors | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | 1,029,100,000 | 1,065,600,000 | 1,095,300,000 | ||||||||
Product sales | 41,100,000 | 54,400,000 | 73,000,000 | ||||||||
Total revenues and sales | 1,070,200,000 | 1,120,000,000 | 1,168,300,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | 392,300,000 | 339,600,000 | 377,200,000 | ||||||||
Cost of products sold | 39,800,000 | 53,700,000 | 71,900,000 | ||||||||
Selling, general, and administrative | 99,300,000 | 77,800,000 | 102,100,000 | ||||||||
Depreciation and amortization | 300,000,000 | 292,200,000 | 286,200,000 | ||||||||
Merger and integration costs | 0 | 0 | 0 | ||||||||
Restructuring charges | 6,100,000 | 1,600,000 | 4,400,000 | ||||||||
Total costs and expenses | 837,500,000 | 764,900,000 | 841,800,000 | ||||||||
Operating (loss) income | 232,700,000 | 355,100,000 | 326,500,000 | ||||||||
Earnings (losses) from subsidiaries | 30,600,000 | 53,300,000 | 41,800,000 | ||||||||
Other (expense) income, net | 162,900,000 | 166,100,000 | 182,300,000 | ||||||||
(Loss) gain on early extinguishment of debt | 0 | 0 | |||||||||
Intercompany interest income (expense) | -53,700,000 | -61,100,000 | -66,000,000 | ||||||||
Interest expense | -6,400,000 | -5,800,000 | -5,400,000 | ||||||||
(Loss) income from continuing operations before income taxes | 366,100,000 | 507,600,000 | 479,200,000 | ||||||||
Income tax (benefit) expense | 126,000,000 | 169,300,000 | 163,900,000 | ||||||||
Income (loss) from continuing operations | 338,300,000 | 315,300,000 | |||||||||
Discontinued operations | 0 | 0 | |||||||||
Net (loss) income | 240,100,000 | 338,300,000 | 315,300,000 | ||||||||
Comprehensive (loss) income | 240,100,000 | 338,300,000 | 315,300,000 | ||||||||
Guarantors | PAETEC Holding Corp. | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | 1,948,600,000 | 1,940,700,000 | 1,977,700,000 | ||||||||
Product sales | 124,500,000 | 140,200,000 | 120,200,000 | ||||||||
Total revenues and sales | 2,073,100,000 | 2,080,900,000 | 2,097,900,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | 1,245,800,000 | 1,166,100,000 | 1,162,400,000 | ||||||||
Cost of products sold | 102,600,000 | 111,100,000 | 99,900,000 | ||||||||
Selling, general, and administrative | 541,200,000 | 521,500,000 | 473,000,000 | ||||||||
Depreciation and amortization | 423,300,000 | 396,700,000 | 370,900,000 | ||||||||
Merger and integration costs | 0 | -400,000 | 500,000 | ||||||||
Restructuring charges | 12,800,000 | 3,400,000 | 9,400,000 | ||||||||
Total costs and expenses | 2,325,700,000 | 2,198,400,000 | 2,116,100,000 | ||||||||
Operating (loss) income | -252,600,000 | -117,500,000 | -18,200,000 | ||||||||
Earnings (losses) from subsidiaries | 100,000 | 500,000 | 600,000 | ||||||||
Other (expense) income, net | 200,000 | 900,000 | 300,000 | ||||||||
(Loss) gain on early extinguishment of debt | 0 | 0 | |||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Interest expense | 300,000 | 200,000 | -1,200,000 | ||||||||
(Loss) income from continuing operations before income taxes | -252,000,000 | -115,900,000 | -18,500,000 | ||||||||
Income tax (benefit) expense | -91,900,000 | -36,900,000 | -7,700,000 | ||||||||
Income (loss) from continuing operations | -79,000,000 | -10,800,000 | |||||||||
Discontinued operations | 6,000,000 | 900,000 | |||||||||
Net (loss) income | -160,100,000 | -73,000,000 | -9,900,000 | ||||||||
Comprehensive (loss) income | -160,100,000 | -73,000,000 | -9,900,000 | ||||||||
Non-Guarantors | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | 4,642,500,000 | 4,740,300,000 | 4,838,400,000 | ||||||||
Product sales | 140,800,000 | 158,200,000 | 158,200,000 | ||||||||
Total revenues and sales | 4,783,300,000 | 4,898,500,000 | 4,996,600,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | 2,346,600,000 | 2,178,100,000 | 2,332,100,000 | ||||||||
Cost of products sold | 116,800,000 | 130,200,000 | 134,700,000 | ||||||||
Selling, general, and administrative | 886,600,000 | 849,900,000 | 873,500,000 | ||||||||
Depreciation and amortization | 1,064,500,000 | 1,023,700,000 | 981,900,000 | ||||||||
Merger and integration costs | 40,400,000 | 30,200,000 | 65,400,000 | ||||||||
Restructuring charges | 29,800,000 | 7,000,000 | 22,800,000 | ||||||||
Total costs and expenses | 4,484,700,000 | 4,219,100,000 | 4,410,400,000 | ||||||||
Operating (loss) income | 298,600,000 | 679,400,000 | 586,200,000 | ||||||||
Earnings (losses) from subsidiaries | 3,700,000 | 5,600,000 | 4,600,000 | ||||||||
Other (expense) income, net | -162,600,000 | -180,700,000 | -173,300,000 | ||||||||
(Loss) gain on early extinguishment of debt | -11,300,000 | 1,900,000 | |||||||||
Intercompany interest income (expense) | -73,500,000 | -73,400,000 | -69,300,000 | ||||||||
Interest expense | -41,500,000 | -37,300,000 | -78,800,000 | ||||||||
(Loss) income from continuing operations before income taxes | 24,700,000 | 382,300,000 | 271,300,000 | ||||||||
Income tax (benefit) expense | 13,200,000 | 141,600,000 | 109,100,000 | ||||||||
Income (loss) from continuing operations | 240,700,000 | 162,200,000 | |||||||||
Discontinued operations | 6,000,000 | 900,000 | |||||||||
Net (loss) income | 11,500,000 | 246,700,000 | 163,100,000 | ||||||||
Comprehensive (loss) income | 11,500,000 | 246,700,000 | 163,100,000 | ||||||||
Non-Guarantors | PAETEC Holding Corp. | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | 3,702,900,000 | 3,841,900,000 | 3,938,600,000 | ||||||||
Product sales | 57,900,000 | 74,500,000 | 111,000,000 | ||||||||
Total revenues and sales | 3,760,800,000 | 3,916,400,000 | 4,049,600,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | 1,476,600,000 | 1,329,200,000 | 1,533,400,000 | ||||||||
Cost of products sold | 54,400,000 | 75,300,000 | 106,700,000 | ||||||||
Selling, general, and administrative | 441,100,000 | 403,500,000 | 495,300,000 | ||||||||
Depreciation and amortization | 941,200,000 | 919,200,000 | 897,200,000 | ||||||||
Merger and integration costs | 40,400,000 | 30,600,000 | 64,900,000 | ||||||||
Restructuring charges | 23,100,000 | 5,200,000 | 17,800,000 | ||||||||
Total costs and expenses | 2,976,800,000 | 2,763,000,000 | 3,115,300,000 | ||||||||
Operating (loss) income | 784,000,000 | 1,153,400,000 | 934,300,000 | ||||||||
Earnings (losses) from subsidiaries | 600,000 | 700,000 | -300,000 | ||||||||
Other (expense) income, net | 100,000 | -15,500,000 | 8,700,000 | ||||||||
(Loss) gain on early extinguishment of debt | 0 | 0 | |||||||||
Intercompany interest income (expense) | -127,200,000 | -134,500,000 | -135,300,000 | ||||||||
Interest expense | -9,800,000 | -2,400,000 | 1,200,000 | ||||||||
(Loss) income from continuing operations before income taxes | 647,700,000 | 1,001,700,000 | 808,600,000 | ||||||||
Income tax (benefit) expense | 247,700,000 | 366,800,000 | 312,800,000 | ||||||||
Income (loss) from continuing operations | 634,900,000 | 495,800,000 | |||||||||
Discontinued operations | 0 | 0 | |||||||||
Net (loss) income | 400,000,000 | 634,900,000 | 495,800,000 | ||||||||
Comprehensive (loss) income | 400,000,000 | 634,900,000 | 495,800,000 | ||||||||
Eliminations | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | -24,000,000 | -30,400,000 | -25,400,000 | ||||||||
Product sales | 0 | 0 | 0 | ||||||||
Total revenues and sales | -24,000,000 | -30,400,000 | -25,400,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | -19,600,000 | -25,600,000 | -17,100,000 | ||||||||
Cost of products sold | 0 | 0 | 0 | ||||||||
Selling, general, and administrative | -4,400,000 | -4,800,000 | -8,300,000 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Merger and integration costs | 0 | 0 | 0 | ||||||||
Restructuring charges | 0 | 0 | 0 | ||||||||
Total costs and expenses | -24,000,000 | -30,400,000 | -25,400,000 | ||||||||
Operating (loss) income | 0 | 0 | 0 | ||||||||
Earnings (losses) from subsidiaries | -251,600,000 | -585,000,000 | -478,400,000 | ||||||||
Other (expense) income, net | 0 | 0 | 0 | ||||||||
(Loss) gain on early extinguishment of debt | 0 | 0 | |||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
(Loss) income from continuing operations before income taxes | -251,600,000 | -585,000,000 | -478,400,000 | ||||||||
Income tax (benefit) expense | 0 | 0 | 0 | ||||||||
Income (loss) from continuing operations | -585,000,000 | -478,400,000 | |||||||||
Discontinued operations | 0 | 0 | |||||||||
Net (loss) income | -251,600,000 | -585,000,000 | -478,400,000 | ||||||||
Comprehensive (loss) income | -251,600,000 | -585,000,000 | -478,400,000 | ||||||||
Eliminations | PAETEC Holding Corp. | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | -3,900,000 | -7,100,000 | -8,000,000 | ||||||||
Product sales | -500,000 | -2,100,000 | 0 | ||||||||
Total revenues and sales | -4,400,000 | -9,200,000 | -8,000,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | -3,100,000 | -3,200,000 | -3,600,000 | ||||||||
Cost of products sold | -400,000 | -2,500,000 | 0 | ||||||||
Selling, general, and administrative | -800,000 | -2,100,000 | -1,000,000 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Merger and integration costs | 0 | 0 | 0 | ||||||||
Restructuring charges | 0 | 0 | 0 | ||||||||
Total costs and expenses | -4,300,000 | -7,800,000 | -4,600,000 | ||||||||
Operating (loss) income | -100,000 | -1,400,000 | -3,400,000 | ||||||||
Earnings (losses) from subsidiaries | -79,400,000 | -460,800,000 | -430,000,000 | ||||||||
Other (expense) income, net | 0 | 0 | 0 | ||||||||
(Loss) gain on early extinguishment of debt | 0 | 0 | |||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
(Loss) income from continuing operations before income taxes | -79,500,000 | -462,200,000 | -433,400,000 | ||||||||
Income tax (benefit) expense | 0 | 300,000 | -1,300,000 | ||||||||
Income (loss) from continuing operations | -462,500,000 | -432,100,000 | |||||||||
Discontinued operations | 0 | 0 | |||||||||
Net (loss) income | -79,500,000 | -462,500,000 | -432,100,000 | ||||||||
Comprehensive (loss) income | -79,500,000 | -462,500,000 | -432,100,000 | ||||||||
Consolidated | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | 5,647,600,000 | 5,775,500,000 | 5,908,300,000 | ||||||||
Product sales | 181,900,000 | 212,600,000 | 231,200,000 | ||||||||
Total revenues and sales | 5,829,500,000 | 5,988,100,000 | 6,139,500,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | 2,719,300,000 | 2,492,100,000 | 2,692,200,000 | ||||||||
Cost of products sold | 156,600,000 | 183,900,000 | 206,600,000 | ||||||||
Selling, general, and administrative | 981,500,000 | 922,900,000 | 967,300,000 | ||||||||
Depreciation and amortization | 1,386,400,000 | 1,340,900,000 | 1,296,900,000 | ||||||||
Merger and integration costs | 40,400,000 | 30,200,000 | 65,400,000 | ||||||||
Restructuring charges | 35,900,000 | 8,600,000 | 27,200,000 | ||||||||
Total costs and expenses | 5,320,100,000 | 4,978,600,000 | 5,255,600,000 | ||||||||
Operating (loss) income | 509,400,000 | 1,009,500,000 | 883,900,000 | ||||||||
Earnings (losses) from subsidiaries | 0 | 0 | 0 | ||||||||
Other (expense) income, net | 100,000 | -12,500,000 | 4,600,000 | ||||||||
(Loss) gain on early extinguishment of debt | 0 | -28,500,000 | 1,900,000 | ||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Interest expense | -571,800,000 | -627,700,000 | -625,100,000 | ||||||||
(Loss) income from continuing operations before income taxes | -62,300,000 | 340,800,000 | 265,300,000 | ||||||||
Income tax (benefit) expense | -24,200,000 | 105,500,000 | 98,200,000 | ||||||||
Income (loss) from continuing operations | -38,100,000 | 235,300,000 | 167,100,000 | ||||||||
Discontinued operations | 0 | 6,000,000 | 900,000 | ||||||||
Net (loss) income | -38,100,000 | 241,300,000 | 168,000,000 | ||||||||
Comprehensive (loss) income | -54,500,000 | 263,400,000 | 172,500,000 | ||||||||
Consolidated | PAETEC Holding Corp. | |||||||||||
Revenues and sales: | |||||||||||
Service revenues | 5,647,600,000 | 5,775,500,000 | 5,908,300,000 | ||||||||
Product sales | 181,900,000 | 212,600,000 | 231,200,000 | ||||||||
Total revenues and sales | 5,829,500,000 | 5,988,100,000 | 6,139,500,000 | ||||||||
Costs and expenses: | |||||||||||
Cost of services | 2,719,300,000 | 2,492,100,000 | 2,692,200,000 | ||||||||
Cost of products sold | 156,600,000 | 183,900,000 | 206,600,000 | ||||||||
Selling, general, and administrative | 981,500,000 | 922,900,000 | 967,300,000 | ||||||||
Depreciation and amortization | 1,386,400,000 | 1,340,900,000 | 1,296,900,000 | ||||||||
Merger and integration costs | 40,400,000 | 30,200,000 | 65,400,000 | ||||||||
Restructuring charges | 35,900,000 | 8,600,000 | 27,200,000 | ||||||||
Total costs and expenses | 5,320,100,000 | 4,978,600,000 | 5,255,600,000 | ||||||||
Operating (loss) income | 509,400,000 | 1,009,500,000 | 883,900,000 | ||||||||
Earnings (losses) from subsidiaries | 0 | 0 | 0 | ||||||||
Other (expense) income, net | 100,000 | -12,500,000 | 4,600,000 | ||||||||
(Loss) gain on early extinguishment of debt | -28,500,000 | 1,900,000 | |||||||||
Intercompany interest income (expense) | 0 | 0 | 0 | ||||||||
Interest expense | -571,800,000 | -627,700,000 | -625,100,000 | ||||||||
(Loss) income from continuing operations before income taxes | -62,300,000 | 340,800,000 | 265,300,000 | ||||||||
Income tax (benefit) expense | -24,200,000 | 105,500,000 | 98,200,000 | ||||||||
Income (loss) from continuing operations | 235,300,000 | 167,100,000 | |||||||||
Discontinued operations | 6,000,000 | 900,000 | |||||||||
Net (loss) income | -38,100,000 | 241,300,000 | 168,000,000 | ||||||||
Comprehensive (loss) income | ($54,500,000) | $263,400,000 | $172,500,000 |
Supplemental_Guarantor_Informa3
Supplemental Guarantor Information: Condensed Consolidating Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current Assets: | ||||
Cash and cash equivalents | $27.80 | $48.20 | $132 | $227 |
Restricted cash | 6.7 | 9.7 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 635.5 | 635.3 | ||
Inventories | 63.7 | 67.7 | ||
Deferred income taxes | 105.4 | 241.5 | ||
Prepaid expenses and other | 164.6 | 182.4 | ||
Total current assets | 1,003.70 | 1,184.80 | ||
Goodwill | 4,352.80 | 4,331.40 | ||
Other intangibles, net | 1,764 | 2,020.10 | ||
Net property, plant and equipment | 5,412.30 | 5,702.60 | ||
Other assets | 180.6 | 205.7 | ||
Total Assets | 12,713.40 | 13,444.60 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 717.5 | 85 | ||
Current portion of interest rate swaps | 28.5 | 30 | ||
Accounts payable | 403.3 | 385.9 | ||
Advance payments and customer deposits | 214.7 | 223.5 | ||
Accrued dividends | 152.4 | 151.1 | ||
Accrued taxes | 95.2 | 104.2 | ||
Accrued interest | 102.5 | 103.5 | ||
Other current liabilities | 328.9 | 362.4 | ||
Total current liabilities | 2,043 | 1,445.60 | ||
Long-term debt | 7,934.20 | 8,622.20 | ||
Deferred income taxes | 1,878.60 | 2,038.30 | ||
Other liabilities | 632.8 | 498.3 | ||
Total liabilities | 12,488.60 | 12,604.40 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 0.1 | 0.1 | ||
Additional paid-in capital | 212.6 | 811.6 | ||
Accumulated other comprehensive income | 12.1 | 28.5 | 6.4 | |
Accumulated (deficit) retained earnings | 0 | 0 | ||
Total shareholders’ equity | 224.8 | 840.2 | 1,104.80 | 1,495.30 |
Total Liabilities and Shareholders' Equity | 12,713.40 | 13,444.60 | ||
Windstream Corp. | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 13.7 | 57.5 | 115.4 |
Restricted cash | 6.7 | 9.7 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 0 | 0 | ||
Notes receivable - affiliate | 0 | 0 | ||
Affiliates receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 67.4 | 202.1 | ||
Prepaid expenses and other | 35.5 | 35.3 | ||
Total current assets | 109.6 | 260.8 | ||
Investments in consolidated subsidiaries | 10,001.30 | 9,997.50 | ||
Notes receivable - affiliate | 0 | 0 | ||
Goodwill | 1,649.50 | 1,649.50 | ||
Other intangibles, net | 590.7 | 645 | ||
Net property, plant and equipment | 9.8 | 10.2 | ||
Other assets | 104.2 | 120.3 | ||
Total Assets | 12,465.10 | 12,683.30 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 717.4 | 84.9 | ||
Current portion of interest rate swaps | 28.5 | 30 | ||
Accounts payable | 2.1 | 5 | ||
Affiliates payable, net | 3,277 | 2,758.90 | ||
Notes payable - affiliate | 0 | 0 | ||
Advance payments and customer deposits | 0 | 0 | ||
Accrued taxes | 0.2 | 0.2 | ||
Accrued interest | 94.3 | 95.4 | ||
Other current liabilities | 32.3 | 38.1 | ||
Total current liabilities | 4,151.80 | 3,012.50 | ||
Long-term debt | 7,363.40 | 8,044.90 | ||
Notes payable - affiliate | 0 | 0 | ||
Deferred income taxes | 658.6 | 724.7 | ||
Other liabilities | 66.5 | 60.7 | ||
Total liabilities | 12,240.30 | 11,842.80 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 212.7 | 812 | ||
Accumulated other comprehensive income | 12.1 | 28.5 | ||
Accumulated (deficit) retained earnings | 0 | 0 | ||
Total shareholders’ equity | 224.8 | 840.5 | ||
Total Liabilities and Shareholders' Equity | 12,465.10 | 12,683.30 | ||
Windstream Corp. | PAETEC Holding Corp. | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 13.7 | 57.5 | 115.4 |
Restricted cash | 6.7 | 9.7 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 0 | 0 | ||
Affiliates receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 67.4 | 202.1 | ||
Prepaid expenses and other | 35.5 | 35.3 | ||
Total current assets | 109.6 | 260.8 | ||
Investments in consolidated subsidiaries | 10,001.30 | 9,997.50 | ||
Goodwill | 1,649.50 | 1,649.50 | ||
Other intangibles, net | 590.7 | 645 | ||
Net property, plant and equipment | 9.8 | 10.2 | ||
Deferred income taxes | 0 | 0 | ||
Other assets | 104.2 | 120.3 | ||
Total Assets | 12,465.10 | 12,683.30 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 717.4 | 84.9 | ||
Current portion of interest rate swaps | 28.5 | 30 | ||
Accounts payable | 2.1 | 5 | ||
Affiliates payable, net | 3,277 | 2,758.90 | ||
Advance payments and customer deposits | 0 | 0 | ||
Accrued taxes | 0.2 | 0.2 | ||
Accrued interest | 94.3 | 95.4 | ||
Other current liabilities | 32.3 | 38.1 | ||
Total current liabilities | 4,151.80 | 3,012.50 | ||
Long-term debt | 7,363.40 | 8,044.90 | ||
Deferred income taxes | 658.6 | 724.7 | ||
Accumulated losses in excess of investments in consolidated subsidiaries | 0 | 0 | ||
Other liabilities | 66.5 | 60.7 | ||
Total liabilities | 12,240.30 | 11,842.80 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 212.7 | 812 | ||
Accumulated other comprehensive income | 12.1 | 28.5 | ||
Accumulated (deficit) retained earnings | 0 | 0 | ||
Total shareholders’ equity | 224.8 | 840.5 | ||
Total Liabilities and Shareholders' Equity | 12,465.10 | 12,683.30 | ||
PAETEC Issuer | PAETEC Holding Corp. | ||||
Current Assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 0 | 0 | ||
Affiliates receivable, net | 346.6 | 374.3 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other | 0 | 0.1 | ||
Total current assets | 346.6 | 374.4 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Goodwill | 643.8 | 643.8 | ||
Other intangibles, net | 0 | 0 | ||
Net property, plant and equipment | 0 | 0 | ||
Deferred income taxes | 219 | 219 | ||
Other assets | 0 | 0 | ||
Total Assets | 1,209.40 | 1,237.20 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of interest rate swaps | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Affiliates payable, net | 0 | 0 | ||
Advance payments and customer deposits | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Accrued interest | 3.7 | 3.7 | ||
Other current liabilities | 4.9 | 4 | ||
Total current liabilities | 8.6 | 7.7 | ||
Long-term debt | 469.4 | 475.8 | ||
Deferred income taxes | 0 | 0 | ||
Accumulated losses in excess of investments in consolidated subsidiaries | 210.4 | 71.8 | ||
Other liabilities | 1.7 | 2.3 | ||
Total liabilities | 690.1 | 557.6 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 842 | 842 | ||
Accumulated other comprehensive income | 0 | 0 | ||
Accumulated (deficit) retained earnings | -322.7 | -162.4 | ||
Total shareholders’ equity | 519.3 | 679.6 | ||
Total Liabilities and Shareholders' Equity | 1,209.40 | 1,237.20 | ||
Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 2.1 | 0.7 | 1.1 | 1.2 |
Restricted cash | 0 | 0 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 136.5 | 117.4 | ||
Notes receivable - affiliate | 4.8 | 4.8 | ||
Affiliates receivable, net | 1,057.70 | 743.7 | ||
Inventories | 36.9 | 49.8 | ||
Deferred income taxes | 10.5 | 10.5 | ||
Prepaid expenses and other | 20.4 | 20.8 | ||
Total current assets | 1,268.90 | 947.7 | ||
Investments in consolidated subsidiaries | 965.6 | 936.7 | ||
Notes receivable - affiliate | 317.7 | 321.3 | ||
Goodwill | 825.6 | 825.6 | ||
Other intangibles, net | 355.2 | 397.6 | ||
Net property, plant and equipment | 1,269.40 | 1,350.90 | ||
Other assets | 17.1 | 14.8 | ||
Total Assets | 5,019.50 | 4,794.60 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of interest rate swaps | 0 | 0 | ||
Accounts payable | 86.9 | 54.8 | ||
Affiliates payable, net | 0 | 0 | ||
Notes payable - affiliate | 0 | 0 | ||
Advance payments and customer deposits | 16.6 | 17.4 | ||
Accrued taxes | 23.8 | 33.8 | ||
Accrued interest | 2.1 | 1.8 | ||
Other current liabilities | 18 | 17.2 | ||
Total current liabilities | 147.4 | 125 | ||
Long-term debt | 99.6 | 99.6 | ||
Notes payable - affiliate | 0 | 0 | ||
Deferred income taxes | 418.8 | 421.7 | ||
Other liabilities | 45.7 | 28.8 | ||
Total liabilities | 711.5 | 675.1 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 39.4 | 39.4 | ||
Additional paid-in capital | 3,794.90 | 3,657.50 | ||
Accumulated other comprehensive income | 0 | 0 | ||
Accumulated (deficit) retained earnings | 473.7 | 422.6 | ||
Total shareholders’ equity | 4,308 | 4,119.50 | ||
Total Liabilities and Shareholders' Equity | 5,019.50 | 4,794.60 | ||
Guarantors | PAETEC Holding Corp. | ||||
Current Assets: | ||||
Cash and cash equivalents | 4.6 | 7.8 | 26.5 | 63.5 |
Restricted cash | 0 | 0 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 286.1 | 251 | ||
Affiliates receivable, net | 0 | 0 | ||
Inventories | 19.4 | 10.6 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other | 30.9 | 29.9 | ||
Total current assets | 341 | 299.3 | ||
Investments in consolidated subsidiaries | 0.9 | 0.8 | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 413.6 | 533.6 | ||
Net property, plant and equipment | 697.1 | 799.3 | ||
Deferred income taxes | 63.7 | 31 | ||
Other assets | 16.8 | 16.2 | ||
Total Assets | 1,533.10 | 1,680.20 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of interest rate swaps | 0 | 0 | ||
Accounts payable | 101.9 | 85.9 | ||
Affiliates payable, net | 1,430.40 | 1,431.70 | ||
Advance payments and customer deposits | 78.5 | 77.7 | ||
Accrued taxes | 25.2 | 24.5 | ||
Accrued interest | 1.8 | 2.3 | ||
Other current liabilities | 83 | 87.1 | ||
Total current liabilities | 1,720.80 | 1,709.20 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Accumulated losses in excess of investments in consolidated subsidiaries | 0 | 0 | ||
Other liabilities | 53 | 51.6 | ||
Total liabilities | 1,773.80 | 1,760.80 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0.7 | 0 | ||
Accumulated other comprehensive income | 0 | 0 | ||
Accumulated (deficit) retained earnings | -241.4 | -80.6 | ||
Total shareholders’ equity | -240.7 | -80.6 | ||
Total Liabilities and Shareholders' Equity | 1,533.10 | 1,680.20 | ||
Non-Guarantors | ||||
Current Assets: | ||||
Cash and cash equivalents | 51.7 | 33.8 | 73.4 | 110.4 |
Restricted cash | 0 | 0 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 499 | 517.9 | ||
Notes receivable - affiliate | 0 | 0 | ||
Affiliates receivable, net | 2,066.90 | 1,864.50 | ||
Inventories | 26.8 | 17.9 | ||
Deferred income taxes | 27.5 | 28.9 | ||
Prepaid expenses and other | 108.7 | 126.3 | ||
Total current assets | 2,780.60 | 2,589.30 | ||
Investments in consolidated subsidiaries | 255.6 | 291.1 | ||
Notes receivable - affiliate | 0 | 0 | ||
Goodwill | 1,877.70 | 1,856.30 | ||
Other intangibles, net | 818.1 | 977.5 | ||
Net property, plant and equipment | 4,133.10 | 4,341.50 | ||
Other assets | 59.3 | 70.6 | ||
Total Assets | 9,924.40 | 10,126.30 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0.1 | 0.1 | ||
Current portion of interest rate swaps | 0 | 0 | ||
Accounts payable | 314.3 | 326.1 | ||
Affiliates payable, net | 0 | 0 | ||
Notes payable - affiliate | 4.8 | 4.8 | ||
Advance payments and customer deposits | 198.1 | 206.1 | ||
Accrued taxes | 71.2 | 70.3 | ||
Accrued interest | 6.1 | 6.3 | ||
Other current liabilities | 278.6 | 307.1 | ||
Total current liabilities | 873.2 | 920.8 | ||
Long-term debt | 471.2 | 477.7 | ||
Notes payable - affiliate | 317.7 | 321.3 | ||
Deferred income taxes | 801.2 | 891.9 | ||
Other liabilities | 520.6 | 408.8 | ||
Total liabilities | 2,983.90 | 3,020.50 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 81.9 | 81.9 | ||
Additional paid-in capital | 4,002 | 3,978.80 | ||
Accumulated other comprehensive income | 14.5 | 26.3 | ||
Accumulated (deficit) retained earnings | 2,842.10 | 3,018.80 | ||
Total shareholders’ equity | 6,940.50 | 7,105.80 | ||
Total Liabilities and Shareholders' Equity | 9,924.40 | 10,126.30 | ||
Non-Guarantors | PAETEC Holding Corp. | ||||
Current Assets: | ||||
Cash and cash equivalents | 49.2 | 26.7 | 48 | 48.1 |
Restricted cash | 0 | 0 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 350.5 | 384.5 | ||
Affiliates receivable, net | 4,187.70 | 3,670.40 | ||
Inventories | 44.3 | 57.1 | ||
Deferred income taxes | 76.5 | 76.5 | ||
Prepaid expenses and other | 96.5 | 116 | ||
Total current assets | 4,804.70 | 4,331.20 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Goodwill | 2,059.50 | 2,038.10 | ||
Other intangibles, net | 759.7 | 841.5 | ||
Net property, plant and equipment | 4,705.40 | 4,893.10 | ||
Deferred income taxes | 0 | 0 | ||
Other assets | 59.6 | 69.2 | ||
Total Assets | 12,388.90 | 12,173.10 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0.1 | 0.1 | ||
Current portion of interest rate swaps | 0 | 0 | ||
Accounts payable | 299.3 | 295 | ||
Affiliates payable, net | 0 | 0 | ||
Advance payments and customer deposits | 136.2 | 145.8 | ||
Accrued taxes | 69.4 | 79.3 | ||
Accrued interest | 2.7 | 2.1 | ||
Other current liabilities | 248.3 | 270.5 | ||
Total current liabilities | 756 | 792.8 | ||
Long-term debt | 101.4 | 101.5 | ||
Deferred income taxes | 1,502.70 | 1,563.60 | ||
Accumulated losses in excess of investments in consolidated subsidiaries | 0 | 0 | ||
Other liabilities | 511.6 | 383.7 | ||
Total liabilities | 2,871.70 | 2,841.60 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 67.7 | 67.7 | ||
Additional paid-in capital | 6,017.10 | 5,865 | ||
Accumulated other comprehensive income | 20.5 | 32.4 | ||
Accumulated (deficit) retained earnings | 3,411.90 | 3,366.40 | ||
Total shareholders’ equity | 9,517.20 | 9,331.50 | ||
Total Liabilities and Shareholders' Equity | 12,388.90 | 12,173.10 | ||
Eliminations | ||||
Current Assets: | ||||
Cash and cash equivalents | -26 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 0 | 0 | ||
Notes receivable - affiliate | -4.8 | -4.8 | ||
Affiliates receivable, net | -3,124.60 | -2,608.20 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Total current assets | -3,155.40 | -2,613 | ||
Investments in consolidated subsidiaries | -11,222.50 | -11,225.30 | ||
Notes receivable - affiliate | -317.7 | -321.3 | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Net property, plant and equipment | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total Assets | -14,695.60 | -14,159.60 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of interest rate swaps | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Affiliates payable, net | -3,124.60 | -2,608.20 | ||
Notes payable - affiliate | -4.8 | -4.8 | ||
Advance payments and customer deposits | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Accrued interest | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | -3,129.40 | -2,613 | ||
Long-term debt | 0 | 0 | ||
Notes payable - affiliate | -317.7 | -321.3 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | -3,447.10 | -2,934.30 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | -121.3 | -121.3 | ||
Additional paid-in capital | -7,796.90 | -7,636.30 | ||
Accumulated other comprehensive income | -14.5 | -26.3 | ||
Accumulated (deficit) retained earnings | -3,315.80 | -3,441.40 | ||
Total shareholders’ equity | -11,248.50 | -11,225.30 | ||
Total Liabilities and Shareholders' Equity | -14,695.60 | -14,159.60 | ||
Eliminations | PAETEC Holding Corp. | ||||
Current Assets: | ||||
Cash and cash equivalents | -26 | 0 | 0 | 0 |
Restricted cash | 0 | 0 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | -1.1 | -0.2 | ||
Affiliates receivable, net | -4,534.30 | -4,044.70 | ||
Inventories | 0 | 0 | ||
Deferred income taxes | -38.5 | -37.1 | ||
Prepaid expenses and other | 1.7 | 1.1 | ||
Total current assets | -4,598.20 | -4,080.90 | ||
Investments in consolidated subsidiaries | -10,002.20 | -9,998.30 | ||
Goodwill | 0 | 0 | ||
Other intangibles, net | 0 | 0 | ||
Net property, plant and equipment | 0 | 0 | ||
Deferred income taxes | -282.7 | -250 | ||
Other assets | 0 | 0 | ||
Total Assets | -14,883.10 | -14,329.20 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Current portion of interest rate swaps | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Affiliates payable, net | -4,555 | -4,039.90 | ||
Advance payments and customer deposits | 0 | 0 | ||
Accrued taxes | 0.4 | 0.3 | ||
Accrued interest | 0 | 0 | ||
Other current liabilities | -39.6 | -37.3 | ||
Total current liabilities | -4,594.20 | -4,076.90 | ||
Long-term debt | 0 | 0 | ||
Deferred income taxes | -282.7 | -250 | ||
Accumulated losses in excess of investments in consolidated subsidiaries | -210.4 | -71.8 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | -5,087.30 | -4,398.70 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | -67.7 | -67.7 | ||
Additional paid-in capital | -6,859.80 | -6,707 | ||
Accumulated other comprehensive income | -20.5 | -32.4 | ||
Accumulated (deficit) retained earnings | -2,847.80 | -3,123.40 | ||
Total shareholders’ equity | -9,795.80 | -9,930.50 | ||
Total Liabilities and Shareholders' Equity | -14,883.10 | -14,329.20 | ||
Consolidated | ||||
Current Assets: | ||||
Cash and cash equivalents | 27.8 | 48.2 | 132 | 227 |
Restricted cash | 6.7 | 9.7 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 635.5 | 635.3 | ||
Notes receivable - affiliate | 0 | 0 | ||
Affiliates receivable, net | 0 | 0 | ||
Inventories | 63.7 | 67.7 | ||
Deferred income taxes | 105.4 | 241.5 | ||
Prepaid expenses and other | 164.6 | 182.4 | ||
Total current assets | 1,003.70 | 1,184.80 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Notes receivable - affiliate | 0 | 0 | ||
Goodwill | 4,352.80 | 4,331.40 | ||
Other intangibles, net | 1,764 | 2,020.10 | ||
Net property, plant and equipment | 5,412.30 | 5,702.60 | ||
Other assets | 180.6 | 205.7 | ||
Total Assets | 12,713.40 | 13,444.60 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 717.5 | 85 | ||
Current portion of interest rate swaps | 28.5 | 30 | ||
Accounts payable | 403.3 | 385.9 | ||
Affiliates payable, net | 152.4 | 150.7 | ||
Notes payable - affiliate | 0 | 0 | ||
Advance payments and customer deposits | 214.7 | 223.5 | ||
Accrued taxes | 95.2 | 104.3 | ||
Accrued interest | 102.5 | 103.5 | ||
Other current liabilities | 328.9 | 362.4 | ||
Total current liabilities | 2,043 | 1,445.30 | ||
Long-term debt | 7,934.20 | 8,622.20 | ||
Notes payable - affiliate | 0 | 0 | ||
Deferred income taxes | 1,878.60 | 2,038.30 | ||
Other liabilities | 632.8 | 498.3 | ||
Total liabilities | 12,488.60 | 12,604.10 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 212.7 | 812 | ||
Accumulated other comprehensive income | 12.1 | 28.5 | ||
Accumulated (deficit) retained earnings | 0 | 0 | ||
Total shareholders’ equity | 224.8 | 840.5 | 1,104.80 | 1,495.30 |
Total Liabilities and Shareholders' Equity | 12,713.40 | 13,444.60 | ||
Consolidated | PAETEC Holding Corp. | ||||
Current Assets: | ||||
Cash and cash equivalents | 27.8 | 48.2 | 132 | 227 |
Restricted cash | 6.7 | 9.7 | ||
Accounts receivable (less allowance for doubtful accounts of $43.4 and $40.0, respectively) | 635.5 | 635.3 | ||
Affiliates receivable, net | 0 | 0 | ||
Inventories | 63.7 | 67.7 | ||
Deferred income taxes | 105.4 | 241.5 | ||
Prepaid expenses and other | 164.6 | 182.4 | ||
Total current assets | 1,003.70 | 1,184.80 | ||
Investments in consolidated subsidiaries | 0 | 0 | ||
Goodwill | 4,352.80 | 4,331.40 | ||
Other intangibles, net | 1,764 | 2,020.10 | ||
Net property, plant and equipment | 5,412.30 | 5,702.60 | ||
Deferred income taxes | 0 | 0 | ||
Other assets | 180.6 | 205.7 | ||
Total Assets | 12,713.40 | 13,444.60 | ||
Current Liabilities: | ||||
Current maturities of long-term debt | 717.5 | 85 | ||
Current portion of interest rate swaps | 28.5 | 30 | ||
Accounts payable | 403.3 | 385.9 | ||
Affiliates payable, net | 152.4 | 150.7 | ||
Advance payments and customer deposits | 214.7 | 223.5 | ||
Accrued taxes | 95.2 | 104.3 | ||
Accrued interest | 102.5 | 103.5 | ||
Other current liabilities | 328.9 | 362.4 | ||
Total current liabilities | 2,043 | 1,445.30 | ||
Long-term debt | 7,934.20 | 8,622.20 | ||
Deferred income taxes | 1,878.60 | 2,038.30 | ||
Accumulated losses in excess of investments in consolidated subsidiaries | 0 | 0 | ||
Other liabilities | 632.8 | 498.3 | ||
Total liabilities | 12,488.60 | 12,604.10 | ||
Commitments and Contingencies (See Note 12) | ||||
Shareholders' Equity: | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 212.7 | 812 | ||
Accumulated other comprehensive income | 12.1 | 28.5 | ||
Accumulated (deficit) retained earnings | 0 | 0 | ||
Total shareholders’ equity | 224.8 | 840.5 | ||
Total Liabilities and Shareholders' Equity | $12,713.40 | $13,444.60 |
Supplemental_Guarantor_Informa4
Supplemental Guarantor Information: Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | $1,467.30 | $1,519.40 | $1,777.60 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -786.5 | -841 | -1,101.20 |
Broadband network expansion funded by stimulus grants | -13.3 | -36.1 | -105.4 |
Changes in restricted cash | 3 | 16.8 | -4.8 |
Grant funds received for broadband stimulus projects | 33.2 | 68 | 45.7 |
Disposition of wireless assets | 0 | 0 | 57 |
Grant funds received from Connect America Fund | 26 | 60.7 | 0 |
Network expansion funded by Connect America Fund | -12.8 | 0 | 0 |
Acquisition of a business | -22.6 | 0 | 0 |
Dispositions of software and energy businesses | 0 | 30 | 6.1 |
Other, net | 3.9 | -6 | 0.9 |
Net cash provided from (used in) investing activities | -769.1 | -707.6 | -1,101.70 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | -602.2 | -593.6 | -588 |
Repayments of debt and swaps | -1,395.40 | -5,161 | -2,054.50 |
Proceeds of debt issuance | 1,315 | 4,919.60 | 1,910 |
Debt issuance costs | 0 | -30 | -19.1 |
Payments under capital lease obligations | -26.8 | -23.9 | -20 |
Other, net | -9.2 | -6.7 | 0.7 |
Net cash provided from (used in) financing activities | -718.6 | -895.6 | -770.9 |
(Decrease) increase in cash and cash equivalents | -20.4 | -83.8 | -95 |
Cash and Cash Equivalents: | |||
Beginning of period | 48.2 | 132 | 227 |
End of period | 27.8 | 48.2 | 132 |
Windstream Corp. | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | -129.2 | -186.2 | 170.4 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -1.8 | -2 | -0.7 |
Broadband network expansion funded by stimulus grants | 0 | 0 | 0 |
Changes in restricted cash | 3 | 15.3 | -13.2 |
Grant funds received for broadband stimulus projects | 33.2 | 68 | 45.7 |
Disposition of wireless assets | 0 | ||
Grant funds received from Connect America Fund | 0 | 0 | |
Network expansion funded by Connect America Fund | 0 | ||
Acquisition of a business | -22.6 | ||
Dispositions of software and energy businesses | 0 | 0 | |
Other, net | 0 | 0 | 2.8 |
Net cash provided from (used in) investing activities | 11.8 | 81.3 | 34.6 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | -444.6 | -588 | |
Distributions to Windstream Holdings, Inc. | -603.6 | -149.4 | |
Repayments of debt and swaps | -1,394.40 | -4,500.90 | -1,744.40 |
Proceeds of debt issuance | 1,315 | 4,919.60 | 1,910 |
Debt issuance costs | -30 | -19.1 | |
Intercompany transactions, net | 795.9 | 273.1 | 177.9 |
Payments under capital lease obligations | 0 | 0 | 0 |
Other, net | -9.2 | -6.7 | 0.7 |
Net cash provided from (used in) financing activities | 103.7 | 61.1 | -262.9 |
(Decrease) increase in cash and cash equivalents | -13.7 | -43.8 | -57.9 |
Cash and Cash Equivalents: | |||
Beginning of period | 13.7 | 57.5 | 115.4 |
End of period | 0 | 13.7 | 57.5 |
Guarantors | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 500.8 | 613.9 | 475.2 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -112.5 | -134.6 | -175.5 |
Broadband network expansion funded by stimulus grants | -0.3 | -4.9 | -23.4 |
Changes in restricted cash | 0 | 0 | 0 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Disposition of wireless assets | 57 | ||
Grant funds received from Connect America Fund | 9.4 | 21.9 | |
Network expansion funded by Connect America Fund | -1.3 | ||
Acquisition of a business | 0 | ||
Dispositions of software and energy businesses | 0 | 0 | |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) investing activities | -104.7 | -117.6 | -141.9 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | |
Distributions to Windstream Holdings, Inc. | 0 | 0 | |
Repayments of debt and swaps | 0 | 0 | 0 |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Intercompany transactions, net | -398.3 | -500.3 | -336.9 |
Payments under capital lease obligations | 0 | 0 | -0.1 |
Other, net | 3.6 | 3.6 | 3.6 |
Net cash provided from (used in) financing activities | -394.7 | -496.7 | -333.4 |
(Decrease) increase in cash and cash equivalents | 1.4 | -0.4 | -0.1 |
Cash and Cash Equivalents: | |||
Beginning of period | 0.7 | 1.1 | 1.2 |
End of period | 2.1 | 0.7 | 1.1 |
Non-Guarantors | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 1,097.10 | 1,092.10 | 1,132 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -672.2 | -704.4 | -925 |
Broadband network expansion funded by stimulus grants | -13 | -31.2 | -82 |
Changes in restricted cash | 0 | 1.5 | 8.4 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Disposition of wireless assets | 0 | ||
Grant funds received from Connect America Fund | 16.6 | 38.8 | |
Network expansion funded by Connect America Fund | -11.5 | ||
Acquisition of a business | 0 | ||
Dispositions of software and energy businesses | 30 | 6.1 | |
Other, net | 3.9 | -6 | -1.9 |
Net cash provided from (used in) investing activities | -676.2 | -671.3 | -994.4 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | |
Distributions to Windstream Holdings, Inc. | 0 | 0 | |
Repayments of debt and swaps | -1 | -660.1 | -310.1 |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Intercompany transactions, net | -371.6 | 227.2 | 159 |
Payments under capital lease obligations | -26.8 | -23.9 | -19.9 |
Other, net | -3.6 | -3.6 | -3.6 |
Net cash provided from (used in) financing activities | -403 | -460.4 | -174.6 |
(Decrease) increase in cash and cash equivalents | 17.9 | -39.6 | -37 |
Cash and Cash Equivalents: | |||
Beginning of period | 33.8 | 73.4 | 110.4 |
End of period | 51.7 | 33.8 | 73.4 |
Eliminations | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 0 | 0 | 0 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | 0 | 0 | 0 |
Broadband network expansion funded by stimulus grants | 0 | 0 | 0 |
Changes in restricted cash | 0 | 0 | 0 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Disposition of wireless assets | 0 | ||
Grant funds received from Connect America Fund | 0 | 0 | |
Network expansion funded by Connect America Fund | 0 | ||
Acquisition of a business | 0 | ||
Dispositions of software and energy businesses | 0 | 0 | |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) investing activities | 0 | 0 | 0 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | |
Distributions to Windstream Holdings, Inc. | 0 | 0 | |
Repayments of debt and swaps | 0 | 0 | 0 |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Intercompany transactions, net | -26 | 0 | 0 |
Payments under capital lease obligations | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) financing activities | -26 | 0 | 0 |
(Decrease) increase in cash and cash equivalents | -26 | 0 | 0 |
Cash and Cash Equivalents: | |||
Beginning of period | 0 | 0 | 0 |
End of period | -26 | 0 | 0 |
Consolidated | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 1,468.70 | 1,519.80 | 1,777.60 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -786.5 | -841 | -1,101.20 |
Broadband network expansion funded by stimulus grants | -13.3 | -36.1 | -105.4 |
Changes in restricted cash | 3 | 16.8 | -4.8 |
Grant funds received for broadband stimulus projects | 33.2 | 68 | 45.7 |
Disposition of wireless assets | 0 | 0 | 57 |
Grant funds received from Connect America Fund | 26 | 60.7 | 0 |
Network expansion funded by Connect America Fund | -12.8 | 0 | 0 |
Acquisition of a business | -22.6 | 0 | 0 |
Dispositions of software and energy businesses | 0 | 30 | 6.1 |
Other, net | 3.9 | -6 | 0.9 |
Net cash provided from (used in) investing activities | -769.1 | -707.6 | -1,101.70 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | -444.6 | -588 |
Distributions to Windstream Holdings, Inc. | -603.6 | -149.4 | 0 |
Repayments of debt and swaps | -1,395.40 | -5,161 | -2,054.50 |
Proceeds of debt issuance | 1,315 | 4,919.60 | 1,910 |
Debt issuance costs | 0 | -30 | -19.1 |
Intercompany transactions, net | 0 | 0 | 0 |
Payments under capital lease obligations | -26.8 | -23.9 | -20 |
Other, net | -9.2 | -6.7 | 0.7 |
Net cash provided from (used in) financing activities | -720 | -896 | -770.9 |
(Decrease) increase in cash and cash equivalents | -20.4 | -83.8 | -95 |
Cash and Cash Equivalents: | |||
Beginning of period | 48.2 | 132 | 227 |
End of period | 27.8 | 48.2 | 132 |
PAETEC Holding Corp. | Windstream Corp. | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | -129.2 | -186.2 | 170.4 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -1.8 | -2 | -0.7 |
Broadband network expansion funded by stimulus grants | 0 | 0 | 0 |
Changes in restricted cash | 3 | 15.3 | -13.2 |
Grant funds received for broadband stimulus projects | 33.2 | 68 | 45.7 |
Disposition of wireless assets | 0 | ||
Grant funds received from Connect America Fund | 0 | 0 | |
Network expansion funded by Connect America Fund | 0 | ||
Acquisition of a business | -22.6 | ||
Dispositions of software and energy businesses | 0 | 0 | |
Other, net | 0 | 0 | 2.8 |
Net cash provided from (used in) investing activities | 11.8 | 81.3 | 34.6 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | -444.6 | -588 | |
Distributions to Windstream Holdings, Inc. | -603.6 | -149.4 | |
Repayments of debt and swaps | -1,394.40 | -4,500.90 | -1,744.40 |
Proceeds of debt issuance | 1,315 | 4,919.60 | 1,910 |
Debt issuance costs | -30 | -19.1 | |
Intercompany transactions, net | 795.9 | 273.1 | 177.9 |
Payments under capital lease obligations | 0 | 0 | 0 |
Other, net | -9.2 | -6.7 | 0.7 |
Net cash provided from (used in) financing activities | 103.7 | 61.1 | -262.9 |
(Decrease) increase in cash and cash equivalents | -13.7 | -43.8 | -57.9 |
Cash and Cash Equivalents: | |||
Beginning of period | 13.7 | 57.5 | 115.4 |
End of period | 0 | 13.7 | 57.5 |
PAETEC Holding Corp. | PAETEC Issuer | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | -27.7 | -56 | -101.6 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | 0 | 0 | 0 |
Broadband network expansion funded by stimulus grants | 0 | 0 | 0 |
Changes in restricted cash | 0 | 0 | 0 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Disposition of wireless assets | 0 | ||
Grant funds received from Connect America Fund | 0 | 0 | |
Network expansion funded by Connect America Fund | 0 | ||
Acquisition of a business | 0 | ||
Dispositions of software and energy businesses | 0 | 0 | |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) investing activities | 0 | 0 | 0 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | |
Distributions to Windstream Holdings, Inc. | 0 | 0 | |
Repayments of debt and swaps | 0 | -650 | -300 |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Intercompany transactions, net | 27.7 | 706 | 401.6 |
Payments under capital lease obligations | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) financing activities | 27.7 | 56 | 101.6 |
(Decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and Cash Equivalents: | |||
Beginning of period | 0 | 0 | 0 |
End of period | 0 | 0 | 0 |
PAETEC Holding Corp. | Guarantors | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 211.6 | 253.9 | 281.3 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -177.3 | -161.4 | -208.6 |
Broadband network expansion funded by stimulus grants | 0 | 0 | 0 |
Changes in restricted cash | 0 | 1.5 | 8.4 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Disposition of wireless assets | 0 | ||
Grant funds received from Connect America Fund | 0 | 0 | |
Network expansion funded by Connect America Fund | 0 | ||
Acquisition of a business | 0 | ||
Dispositions of software and energy businesses | 30 | 6.1 | |
Other, net | 0 | 0 | -1.8 |
Net cash provided from (used in) investing activities | -177.3 | -129.9 | -195.9 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | |
Distributions to Windstream Holdings, Inc. | 0 | 0 | |
Repayments of debt and swaps | 0 | 0 | 0 |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Intercompany transactions, net | -30.5 | -127.8 | -103.2 |
Payments under capital lease obligations | -7 | -14.9 | -19.2 |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) financing activities | -37.5 | -142.7 | -122.4 |
(Decrease) increase in cash and cash equivalents | -3.2 | -18.7 | -37 |
Cash and Cash Equivalents: | |||
Beginning of period | 7.8 | 26.5 | 63.5 |
End of period | 4.6 | 7.8 | 26.5 |
PAETEC Holding Corp. | Non-Guarantors | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 1,414.80 | 1,510.50 | 1,429.10 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -607.4 | -677.6 | -891.9 |
Broadband network expansion funded by stimulus grants | -13.3 | -36.1 | -105.4 |
Changes in restricted cash | 0 | 0 | 0 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Disposition of wireless assets | 57 | ||
Grant funds received from Connect America Fund | 26 | 60.7 | |
Network expansion funded by Connect America Fund | -12.8 | ||
Acquisition of a business | 0 | ||
Dispositions of software and energy businesses | 0 | 0 | |
Other, net | 3.9 | -6 | -0.1 |
Net cash provided from (used in) investing activities | -603.6 | -659 | -940.4 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | |
Distributions to Windstream Holdings, Inc. | 0 | 0 | |
Repayments of debt and swaps | -1 | -10.1 | -10.1 |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Intercompany transactions, net | -767.9 | -853.7 | -477.9 |
Payments under capital lease obligations | -19.8 | -9 | -0.8 |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) financing activities | -788.7 | -872.8 | -488.8 |
(Decrease) increase in cash and cash equivalents | 22.5 | -21.3 | -0.1 |
Cash and Cash Equivalents: | |||
Beginning of period | 26.7 | 48 | 48.1 |
End of period | 49.2 | 26.7 | 48 |
PAETEC Holding Corp. | Eliminations | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | -0.8 | -2.4 | -1.6 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | 0 | 0 | 0 |
Broadband network expansion funded by stimulus grants | 0 | 0 | 0 |
Changes in restricted cash | 0 | 0 | 0 |
Grant funds received for broadband stimulus projects | 0 | 0 | 0 |
Disposition of wireless assets | 0 | ||
Grant funds received from Connect America Fund | 0 | 0 | |
Network expansion funded by Connect America Fund | 0 | ||
Acquisition of a business | 0 | ||
Dispositions of software and energy businesses | 0 | 0 | |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) investing activities | 0 | 0 | 0 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | 0 | 0 | |
Distributions to Windstream Holdings, Inc. | 0 | 0 | |
Repayments of debt and swaps | 0 | 0 | 0 |
Proceeds of debt issuance | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Intercompany transactions, net | -25.2 | 2.4 | 1.6 |
Payments under capital lease obligations | 0 | 0 | 0 |
Other, net | 0 | 0 | 0 |
Net cash provided from (used in) financing activities | -25.2 | 2.4 | 1.6 |
(Decrease) increase in cash and cash equivalents | -26 | 0 | 0 |
Cash and Cash Equivalents: | |||
Beginning of period | 0 | 0 | 0 |
End of period | -26 | 0 | 0 |
PAETEC Holding Corp. | Consolidated | |||
Cash Provided from Operations: | |||
Net cash (used in) provided from operations | 1,468.70 | 1,519.80 | 1,777.60 |
Cash Flows from Investing Activities: | |||
Additions to property, plant and equipment | -786.5 | -841 | -1,101.20 |
Broadband network expansion funded by stimulus grants | -13.3 | -36.1 | -105.4 |
Changes in restricted cash | 3 | 16.8 | -4.8 |
Grant funds received for broadband stimulus projects | 33.2 | 68 | 45.7 |
Disposition of wireless assets | 57 | ||
Grant funds received from Connect America Fund | 26 | 60.7 | |
Network expansion funded by Connect America Fund | -12.8 | ||
Acquisition of a business | -22.6 | ||
Dispositions of software and energy businesses | 30 | 6.1 | |
Other, net | 3.9 | -6 | 0.9 |
Net cash provided from (used in) investing activities | -769.1 | -707.6 | -1,101.70 |
Cash Flows from Financing Activities: | |||
Dividends paid to shareholders | -444.6 | -588 | |
Distributions to Windstream Holdings, Inc. | -603.6 | -149.4 | |
Repayments of debt and swaps | -1,395.40 | -5,161 | -2,054.50 |
Proceeds of debt issuance | 1,315 | 4,919.60 | 1,910 |
Debt issuance costs | -30 | -19.1 | |
Intercompany transactions, net | 0 | 0 | 0 |
Payments under capital lease obligations | -26.8 | -23.9 | -20 |
Other, net | -9.2 | -6.7 | 0.7 |
Net cash provided from (used in) financing activities | -720 | -896 | -770.9 |
(Decrease) increase in cash and cash equivalents | -20.4 | -83.8 | -95 |
Cash and Cash Equivalents: | |||
Beginning of period | 48.2 | 132 | 227 |
End of period | $27.80 | $48.20 | $132 |
Discontinued_Operations_Detail
Discontinued Operations: (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 05, 2013 | Jun. 15, 2012 | |
Results of Software Business | |||||
Net income from discontinued operations | $0 | $6,000,000 | $900,000 | ||
PAETEC Holding Corp. | Software Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of acquired assets | 30,000,000 | ||||
PAETEC Holding Corp. | Energy Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of acquired assets | 6,100,000 | ||||
PAETEC Holding Corp. | Software Business | |||||
Results of Software Business | |||||
Revenues and sales | 16,900,000 | 29,700,000 | |||
Operating income from discontinued operations | 1,400,000 | 3,100,000 | |||
Gain on sale of discontinued operations | 14,400,000 | 0 | |||
Income before tax from discontinued operations | 15,800,000 | 3,100,000 | |||
Income tax expense | 9,800,000 | 2,200,000 | |||
Net income from discontinued operations | $6,000,000 | $900,000 |
Quarterly_Financial_Informatio2
Quarterly Financial Information - (Unaudited): (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||
Revenues and sales | $1,443.10 | $1,455.50 | $1,466 | $1,464.90 | $1,491.40 | $1,498.50 | $1,501.70 | $1,496.50 | $5,829.50 | $5,988.10 | $6,139.50 | ||||||||||
Operating income | 20.5 | 151.6 | 167.2 | 167.8 | 326.5 | 219.6 | 227 | 235.9 | 507.1 | 1,009 | 883.9 | ||||||||||
Net (loss) income | -77.5 | 8 | 14 | 16 | 118.4 | 30.6 | 39.7 | 52.3 | -39.5 | 241 | 168 | ||||||||||
Basic and diluted (loss) earnings per share: (a) | |||||||||||||||||||||
Net (loss) income | ($0.13) | [1] | $0.01 | [1] | $0.02 | [1] | $0.02 | [1] | $0.20 | [1] | $0.05 | [1] | $0.06 | [1] | $0.09 | [1] | ($0.07) | [1] | $0.40 | [1] | $0.28 |
Pension Plan, Defined Benefit | |||||||||||||||||||||
Notes to Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Defined Benefit Plan, Other Costs | 128.6 | -110.4 | 72.5 | ||||||||||||||||||
Defined benefit plan, net periodic benefit cost, after tax | $79.10 | ($71.10) | |||||||||||||||||||
[1] | Quarterly (loss) earnings 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. |
Pending_Transaction_Details
Pending Transaction: (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jul. 29, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Lease Obligation, Real Estate investment Trust [Line Items] | |||||
Other Lease Obligation, Lease Terms | 15 years 0 months | 10 years | |||
Other Lease Obligation, Annual Rental Payments | $650,000,000 | ||||
Number of Renewal Options | 4 | 3 | |||
Lease Term of Renewal Options | 5 years 0 months | 5 | |||
Annual Rent Escalations After Third Year of Initial Lease Term | 0.50% | ||||
Percent of REIT Shares to be Distributed | 80.10% | ||||
Expected Number of Shares, Stock Conversion Ratio, REIT | 1 | ||||
Expected Number of Shares, Stock Conversion Ratio, Windstream Holdings, Inc. | 5 | ||||
New Borrowings of Real Estate Investment Trust, Expected | 3,650,000,000 | ||||
Dividends, Cash | 1,200,000,000 | 602,900,000 | 595,500,000 | 588,800,000 | |
Debt Exchange between Windstream Corp and REIT | 2,350,000,000 | ||||
Repayments of Debt | $3,400,000,000 | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 19.90% | ||||
Number of Windstream Holdings, Inc. Common Shares Before Reverse Stock Split | 6 | ||||
Number of WIndstream Holdings, Inc. Common Shares After Reverse Stock Split | 1 | ||||
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 | |||
Expected Annual Aggregate Dividend Per Share, Real Estate Investment Trust | $2.40 | ||||
Windstream Holdings, Inc. [Domain] | |||||
Other Lease Obligation, Real Estate investment Trust [Line Items] | |||||
Common stock, shares authorized | 1,000,000,000 | ||||
Common shares, authorized, After Reverse Stock Split | 166,666,667 | ||||
Equivalent to Windstream Holdings, Inc. Expected Annual Aggregate Dividend Per Share | $0.60 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Feb. 11, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Subsequent Event [Line Items] | ||||
Common Stock, Dividends, Per Share, Declared | $0.25 | $1 | $1 | $1 |
Dividend Declared [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends Payable, Date Declared | 11-Feb-15 | |||
Dividends Payable, Date to be Paid | 15-Apr-15 | |||
Dividends Payable, Date of Record | 31-Mar-15 |