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39
accounting presents the results of operations of a new reporting entity, the only consolidated statement of operations items impacted
by the reorganization under Chapter 11 are depreciation and amortization expense, interest expense and reorganization items.
Those effects of fresh start accounting are discussed in more detail in the respective sections below.
The year-to-year comparisons of financial results are not necessarily indicative of future results (in thousands, except for
access line equivalents):
Combined
Predecessor
Company
Three Hundred
Forty-One
Days Ended
December 31,
2011
Twenty-Four
Days Ended
January 24,
2011
Year Ended
December 31,
2013
Year Ended
December 31,
2012
Year Ended
December 31,
2011
Revenues:
Voice services $ 405,159 $ 446,126 $ 483,766 $ 451,212 $ 32,554
Access 321,812 336,000 369,336 346,313 23,023
Data and Internet services 161,423 142,911 127,323 119,363 7,960
Other 50,960 48,612 49,065 46,224 2,841
Total revenues 939,354 973,649 1,029,490 963,112 66,378
Operating expenses:
Cost of services and sales,
excluding depreciation and
amortization 439,217 450,441 493,499 453,673 39,826
Selling, general and administrative
expense, excluding depreciation
and amortization 331,656 332,243 343,067 316,966 26,101
Depreciation and amortization 282,438 376,614 358,406 336,891 21,515
Reorganization related income (771) (3,666) (232) (232) —
Impairment of intangible assets and
goodwill — — 262,019 262,019 —
Total operating expenses 1,052,540 1,155,632 1,456,759 1,369,317 87,442
Loss from operations (113,186) (181,983) (427,269) (406,205) (21,064)
Other income (expense):
Interest expense (78,675) (67,610) (73,128) (63,807) (9,321)
Loss on debt refinancing (6,787) — — — —
Other 4,863 739 1,659 1,791 (132)
Total other expense (80,599) (66,871) (71,469) (62,016) (9,453)
Loss before reorganization items
and income taxes (193,785) (248,854) (498,738) (468,221) (30,517)
Reorganization items — — 897,313 — 897,313
(Loss) income before income taxes (193,785) (248,854) 398,575 (468,221) 866,796
Income tax benefit (expense) 90,291 95,560 (226,613) 53,276 (279,889)
(Loss) income before discontinued
operations (103,494) (153,294) 171,962 (414,945) 586,907
Gain on sale of discontinued
operations, net of taxes 10,044 — — — —
Net (loss) income $ (93,450) $ (153,294) $ 171,962 $ (414,945) $ 586,907
Access line equivalents:
Residential 527,890 586,725 645,453
Business 291,417 299,701 311,241
Wholesale 59,859 65,641 76,065
Total voice access lines 879,166 952,067 1,032,759
Broadband subscribers 329,766 326,367 314,135
Total access line equivalents (1) 1,208,932 1,278,434 1,346,894