Windstream 2011 Annual Report Download - page 130

F-22
Off-Balance Sheet Arrangements
We do not use securitization of trade receivables, affiliation with special purpose entities, variable interest entities or synthetic
leases to finance our operations. Additionally, we have not entered into any arrangement requiring us to guarantee payment of
third party debt or to fund losses of an unconsolidated special purpose entity.
Contractual Obligations and Commitments
Set forth below is a summary of our material contractual obligations and commitments as of December 31, 2011:
(Millions)
Long-term debt, including current maturities (a)
Interest payments on long-term debt obligations (b)
Capital leases (c)
Operating leases (d)
Purchase obligations (e)
Other long-term liabilities and commitments (f) (g)
(h) (i)
Total contractual obligations and commitments
Obligations by Period
Less than
1 Year
$ 193.9
617.0
18.2
175.6
265.2
55.1
$ 1,325.0
1 - 3
Years
$ 1,264.9
1,084.8
26.8
225.1
189.1
103.5
$ 2,894.2
3 - 5
Years
$ 2,091.6
945.0
3.7
100.1
—
141.4
$ 3,281.8
More than
5 years
$ 5,451.6
1,325.0
2.6
77.0
—
2,212.7
$ 9,068.9
Total
$ 9,002.0
3,971.8
51.3
577.8
454.3
2,512.7
$ 16,569.9
(a) Excludes $97.2 million of unamortized premiums (net of discounts) included in long-term debt at December 31, 2011.
(b) Variable rates on tranches A and B of the senior secured credit facility are calculated in relation to LIBOR, which was
0.40 percent at December 31, 2011.
(c) Capital leases include non-cancellable leases, consisting principally of leases for facilities and equipment.
(d) Operating leases consist of non-cancellable operating leases, consisting principally of leases for network facilities, real
estate, office space and office equipment.
(e) Purchase obligations include open purchase orders not yet receipted and amounts payable under non-cancellable
contracts. The portion attributable to non-cancellable contracts primarily represents agreements for network capacity
and software licensing.
(f) Other long-term liabilities and commitments primarily consist of deferred tax liabilities, pension and other
postretirement benefit obligations, interest rate swaps, asset retirement obligations and long-term deferred revenue.
(g) Excludes $21.4 million of reserves for uncertain tax positions, including interest and penalties, that were included in
other liabilities at December 31, 2011 for which we are unable to make a reasonably reliable estimate as to when cash
settlements with taxing authorities will occur.
(h) Includes $30.5 million and $5.8 million in current portion of interest rate swaps and pension and postretirement
benefit obligations, respectively that were included in current portion of interest rate swaps and other current liabilities
at December 31, 2011.
(i) Although no additional pension contribution is required in 2012, contributions may be required in future years, or we
could make a contribution on a voluntary basis. Due to uncertainties inherent in the pension funding calculation, the
amount and timing of any remaining contributions are unknown and therefore have been reflected as due in more than
5 years.
See "Debt Covenants and Amendments" for information regarding our debt covenants. See Notes 2, 5, 6, 8, 12, 13 and 15 for
additional information regarding certain of the obligations and commitments listed above.