Louisiana
|
72-0651161
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
Page
No.
|
||
Part
I.
|
Financial
Information:
|
|
Item
1.
|
Financial
Statements
|
|
Consolidated
Statements of Income--Three Months and Six
|
|
|
Months Ended June 30, 2006 and 2005
|
3
|
|
Consolidated
Statements of Comprehensive Income--
|
||
Three Months and Six Months Ended June 30, 2006 and 2005
|
4
|
|
Consolidated
Balance Sheets--June 30, 2006 and December
31, 2005
|
5
|
|
|
||
Consolidated
Statements of Cash Flows-- Six
Months Ended June 30, 2006 and 2005
|
6
|
|
|
|
|
Consolidated
Statements of Stockholders' Equity--Six
Months Ended June 30, 2006 and 2005
|
7
|
|
|
||
Notes
to Consolidated Financial Statements*
|
8-13
|
|
Item
2.
|
Management's
Discussion and Analysis of Financial Condition
|
|
and Results of Operations
|
14-22
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
23
|
Item
4.
|
Controls
and Procedures
|
24
|
Part
II.
|
Other
Information:
|
|
Item
1.
|
Legal
Proceedings
|
25
|
Item 1A.
|
Risk
Factors
|
25
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
25
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
25-26
|
Item
6.
|
Exhibits
and Reports on Form 8-K
|
26
|
Signature
|
26
|
Three
months
|
Six
months
|
||||||||||||
ended
June 30,
|
ended
June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
(Dollars,
except per share amounts, and
shares in thousands)
|
|||||||||||||
OPERATING
REVENUES
|
$
|
609,131
|
606,413
|
1,220,780
|
1,201,695
|
||||||||
OPERATING
EXPENSES
|
|||||||||||||
Cost
of services and products (exclusive of depreciation
and amortization)
|
216,466
|
194,873
|
439,418
|
386,866
|
|||||||||
Selling,
general and administrative
|
95,596
|
95,206
|
191,536
|
189,460
|
|||||||||
Depreciation
and amortization
|
131,820
|
130,452
|
266,385
|
262,627
|
|||||||||
Total
operating expenses
|
443,882
|
420,531
|
897,339
|
838,953
|
|||||||||
OPERATING
INCOME
|
165,249
|
185,882
|
323,441
|
362,742
|
|||||||||
OTHER
INCOME (EXPENSE)
|
|||||||||||||
Interest
expense
|
(50,639
|
)
|
(49,647
|
)
|
(100,725
|
)
|
(102,272
|
)
|
|||||
Income
from unconsolidated cellular entity
|
2,076
|
724
|
4,149
|
2,037
|
|||||||||
Nonrecurring
gains
|
118,649
|
-
|
118,649
|
-
|
|||||||||
Other
income (expense)
|
2,734
|
1,220
|
5,258
|
2,755
|
|||||||||
Total
other income (expense)
|
72,820
|
(47,703
|
)
|
27,331
|
(97,480
|
)
|
|||||||
INCOME
BEFORE INCOME TAX EXPENSE
|
238,069
|
138,179
|
350,772
|
265,262
|
|||||||||
Income
tax expense
|
85,701
|
53,061
|
128,979
|
100,528
|
|||||||||
NET
INCOME
|
$
|
152,368
|
85,118
|
221,793
|
164,734
|
||||||||
BASIC
EARNINGS PER SHARE
|
$
|
1.32
|
.65
|
1.86
|
1.25
|
||||||||
DILUTED
EARNINGS PER SHARE
|
$
|
1.26
|
.64
|
1.80
|
1.23
|
||||||||
DIVIDENDS
PER COMMON SHARE
|
$
|
.0625
|
.06
|
.125
|
.12
|
||||||||
AVERAGE
BASIC SHARES OUTSTANDING
|
115,441
|
130,299
|
118,917
|
131,241
|
|||||||||
AVERAGE
DILUTED SHARES OUTSTANDING
|
121,636
|
135,345
|
124,798
|
136,257
|
Three
months
|
Six
months
|
||||||||||||
ended
June 30,
|
ended
June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||
NET
INCOME
|
$
|
152,368
|
85,118
|
221,793
|
164,734
|
||||||||
OTHER
COMPREHENSIVE INCOME, NET
OF TAX:
|
|||||||||||||
Minimum
pension liability adjustment,
|
|||||||||||||
net of $799, $194, ($25) and ($76) tax
|
1,282
|
310
|
(41
|
)
|
(122
|
)
|
|||||||
Unrealized
gain (loss) on investments, net of
|
|||||||||||||
($133), $198, ($92) and $122 tax
|
(213
|
)
|
316
|
(148
|
)
|
196
|
|||||||
Derivative
instruments:
|
|||||||||||||
Net
loss on derivatives hedging the
|
|||||||||||||
variability of cash flows, net of ($2,606) tax
|
-
|
-
|
-
|
(4,181
|
)
|
||||||||
Reclassification
adjustment for losses
|
|||||||||||||
included in net income, net of $59, $66,
|
|||||||||||||
$117 and $85 tax
|
94
|
106
|
188
|
137
|
|||||||||
COMPREHENSIVE
INCOME
|
$
|
153,531
|
85,850
|
221,792
|
160,764
|
June
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
ASSETS
|
|||||||
CURRENT
ASSETS
|
|||||||
Cash
and cash equivalents
|
$
|
1,769
|
158,846
|
||||
Accounts
receivable, less allowance of $20,441 and $21,721
|
214,989
|
236,714
|
|||||
Materials
and supplies, at average cost
|
6,389
|
6,998
|
|||||
Other
|
17,105
|
20,458
|
|||||
Total
current assets
|
240,252
|
423,016
|
|||||
NET
PROPERTY, PLANT AND EQUIPMENT
|
|||||||
Property,
plant and equipment
|
7,844,529
|
7,801,377
|
|||||
Accumulated
depreciation
|
(4,672,522
|
)
|
(4,496,891
|
)
|
|||
Net
property, plant and equipment
|
3,172,007
|
3,304,486
|
|||||
GOODWILL
AND OTHER ASSETS
|
|||||||
Goodwill
|
3,431,136
|
3,432,649
|
|||||
Other
|
590,589
|
602,556
|
|||||
Total
goodwill and other assets
|
4,021,725
|
4,035,205
|
|||||
TOTAL
ASSETS
|
$
|
7,433,984
|
7,762,707
|
||||
LIABILITIES
AND EQUITY
|
|||||||
CURRENT
LIABILITIES
|
|||||||
Current
maturities of long-term debt
|
$
|
381,455
|
276,736
|
||||
Accounts
payable
|
101,891
|
104,444
|
|||||
Accrued
expenses and other liabilities
|
|||||||
Salaries
and benefits
|
59,057
|
60,521
|
|||||
Income
taxes
|
79,625
|
110,521
|
|||||
Other
taxes
|
56,496
|
58,660
|
|||||
Interest
|
74,738
|
71,580
|
|||||
Other
|
15,547
|
14,851
|
|||||
Advance
billings and customer deposits
|
51,287
|
48,917
|
|||||
Total
current liabilities
|
820,096
|
746,230
|
|||||
LONG-TERM
DEBT
|
2,239,263
|
2,376,070
|
|||||
DEFERRED
CREDITS AND OTHER LIABILITIES
|
1,073,065
|
1,023,134
|
|||||
STOCKHOLDERS'
EQUITY
|
|||||||
Common
stock, $1.00 par value, authorized 350,000,000 shares,
|
|||||||
issued
and outstanding 116,300,908 and 131,074,399 shares
|
116,301
|
131,074
|
|||||
Paid-in
capital
|
107,927
|
129,806
|
|||||
Accumulated
other comprehensive loss, net of tax
|
(9,620
|
)
|
(9,619
|
)
|
|||
Retained
earnings
|
3,079,291
|
3,358,162
|
|||||
Preferred
stock - non-redeemable
|
7,661
|
7,850
|
|||||
Total
stockholders’ equity
|
3,301,560
|
3,617,273
|
|||||
TOTAL
LIABILITIES AND EQUITY
|
$
|
7,433,984
|
7,762,707
|
Six
months
|
|||||||
ended
June 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
OPERATING
ACTIVITIES
|
|||||||
Net
income
|
$
|
221,793
|
164,734
|
||||
Adjustments
to reconcile net income to net cash provided by
operating activities:
|
|||||||
Depreciation
and amortization
|
266,385 | 262,627 | |||||
Nonrecurring
gains
|
(118,649
|
)
|
-
|
||||
Income
from unconsolidated cellular entity
|
(4,149
|
)
|
(2,037
|
)
|
|||
Deferred
income taxes
|
22,352
|
25,947
|
|||||
Changes
in current assets and current liabilities:
|
|||||||
Accounts
receivable
|
21,641
|
7,860
|
|||||
Accounts
payable
|
(2,553
|
)
|
(236
|
)
|
|||
Accrued
income and other taxes
|
(28,113
|
)
|
12,184
|
||||
Other
current assets and other current liabilities, net
|
8,719
|
(854
|
)
|
||||
Retirement
benefits
|
14,926
|
12,517
|
|||||
Excess
tax benefits from share-based compensation
|
(4,947
|
)
|
-
|
||||
(Increase)
decrease in other noncurrent assets
|
969
|
(1,477
|
)
|
||||
Increase
(decrease) in other noncurrent liabilities
|
1,550
|
(584
|
)
|
||||
Other,
net
|
6,393
|
(1,768
|
)
|
||||
Net
cash provided by operating activities
|
406,317
|
478,913
|
|||||
INVESTING
ACTIVITIES
|
|||||||
Payments
for property, plant and equipment
|
(130,455
|
)
|
(176,914
|
)
|
|||
Proceeds
from redemption of Rural Telephone Bank stock
|
122,819
|
-
|
|||||
Proceeds
from sale of assets
|
5,865
|
-
|
|||||
Acquisitions,
net of cash acquired
|
-
|
(73,152
|
)
|
||||
Distributions
from unconsolidated cellular entity
|
-
|
2,339
|
|||||
Investment
in unconsolidated cellular entity
|
(5,222
|
)
|
-
|
||||
Other,
net
|
(1,296
|
)
|
(2,955
|
)
|
|||
Net
cash used in investing activities
|
(8,289
|
)
|
(250,682
|
)
|
|||
FINANCING
ACTIVITIES
|
|||||||
Payments
of debt
|
(12,559
|
)
|
(511,625
|
)
|
|||
Net
proceeds from issuance of long-term debt
|
-
|
344,173
|
|||||
Proceeds
from issuance of common stock
|
41,206
|
20,457
|
|||||
Repurchase
of common stock
|
(573,888
|
)
|
(530,700
|
)
|
|||
Settlement
of equity units
|
-
|
398,164
|
|||||
Cash
dividends
|
(14,661
|
)
|
(15,956
|
)
|
|||
Excess
tax benefits from share-based compensation
|
4,947
|
-
|
|||||
Other,
net
|
(150
|
)
|
503
|
||||
Net
cash used in financing activities
|
(555,105
|
)
|
(294,984
|
)
|
|||
Net
decrease in cash and cash equivalents
|
(157,077
|
)
|
(66,753
|
)
|
|||
Cash
and cash equivalents at beginning of period
|
158,846
|
167,215
|
|||||
Cash
and cash equivalents at end of period
|
$
|
1,769
|
100,462
|
||||
Supplemental
cash flow information:
|
|||||||
Income
taxes paid
|
$
|
132,666
|
87,013
|
||||
Interest
paid (net of capitalized interest of $1,005 and $1,281)
|
$
|
96,562
|
96,347
|
Six
months
|
|||||||
ended
June 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
COMMON
STOCK
|
|||||||
Balance
at beginning of period
|
$
|
131,074
|
132,374
|
||||
Issuance
of common stock through dividend reinvestment, incentive
and benefit plans and other
|
1,740
|
1,061
|
|||||
Issuance
of common stock upon settlement of equity units
|
-
|
12,881
|
|||||
Repurchase
of common stock
|
(16,523
|
)
|
(16,409
|
)
|
|||
Conversion
of preferred stock into common stock
|
10
|
-
|
|||||
Balance
at end of period
|
116,301
|
129,907
|
|||||
PAID-IN
CAPITAL
|
|||||||
Balance
at beginning of period
|
129,806
|
222,205
|
|||||
Issuance
of common stock through dividend
reinvestment, incentive and benefit plans
|
39,466
|
19,396
|
|||||
Issuance
of common stock upon settlement of equity units
|
-
|
385,283
|
|||||
Repurchase
of common stock
|
(71,362
|
)
|
(514,291
|
)
|
|||
Conversion
of preferred stock into common stock
|
179
|
-
|
|||||
Excess
tax benefits from share-based compensation
|
4,947
|
-
|
|||||
Amortization
of unearned compensation and other
|
4,891
|
613
|
|||||
Balance
at end of period
|
107,927
|
113,206
|
|||||
ACCUMULATED
OTHER COMPREHENSIVE LOSS, NET OF TAX
|
|||||||
Balance
at beginning of period
|
(9,619
|
)
|
(8,334
|
)
|
|||
Change
in other comprehensive loss, net of tax
|
(1
|
)
|
(3,970
|
)
|
|||
Balance
at end of period
|
(9,620
|
)
|
(12,304
|
)
|
|||
RETAINED
EARNINGS
|
|||||||
Balance
at beginning of period
|
3,358,162
|
3,055,545
|
|||||
Net
income
|
221,793
|
164,734
|
|||||
Repurchase
of common stock (through 2006 accelerated share repurchase
program)
|
(486,003
|
)
|
-
|
||||
Cash
dividends declared
|
|||||||
Common
stock - $.125 and $.12 per share, respectively
|
(14,467
|
)
|
(15,757
|
)
|
|||
Preferred
stock
|
(194
|
)
|
(199
|
)
|
|||
Balance
at end of period
|
3,079,291
|
3,204,323
|
|||||
PREFERRED
STOCK - NON-REDEEMABLE
|
|||||||
Balance
at beginning of period
|
7,850
|
7,975
|
|||||
Conversion
of preferred stock into common stock
|
(189
|
)
|
-
|
||||
Balance
at end of period
|
7,661
|
7,975
|
|||||
TOTAL
STOCKHOLDERS' EQUITY
|
$
|
3,301,560
|
3,443,107
|
(1)
|
Basis
of Financial Reporting
|
(2)
|
Goodwill
and Other Intangible
Assets
|
June
30,
|
Dec.
31,
|
||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
Goodwill
|
$
|
3,431,136
|
3,432,649
|
||||
Intangible
assets subject to amortization
|
|||||||
Customer
base
|
|||||||
Gross
carrying amount
|
$
|
25,094
|
25,094
|
||||
Accumulated
amortization
|
(6,186
|
)
|
(5,349
|
)
|
|||
Net
carrying amount
|
$
|
18,908
|
19,745
|
||||
Contract
rights
|
|||||||
Gross
carrying amount
|
$
|
4,187
|
4,187
|
||||
Accumulated
amortization
|
(2,559
|
)
|
(1,861
|
)
|
|||
Net
carrying amount
|
$
|
1,628
|
2,326
|
||||
Intangible
asset not subject to amortization
|
$
|
36,690
|
36,690
|
(3)
|
Postretirement
Benefits
|
Three
months
|
Six
months
|
||||||||||||
ended
June 30,
|
ended
June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||
Service
cost
|
$
|
1,783
|
1,480
|
3,491
|
3,145
|
||||||||
Interest
cost
|
4,846
|
4,130
|
9,490
|
8,359
|
|||||||||
Expected
return on plan assets
|
(623
|
)
|
(643
|
)
|
(1,219
|
)
|
(1,220
|
)
|
|||||
Amortization
of unrecognized actuarial loss
|
950
|
769
|
1,860
|
1,458
|
|||||||||
Amortization
of unrecognized prior service cost
|
(221
|
)
|
(451
|
)
|
(433
|
)
|
(938
|
)
|
|||||
Net
periodic postretirement benefit cost
|
$
|
6,735
|
5,285
|
13,189
|
10,804
|
(4)
|
Defined
Benefit Retirement Plans
|
Three
months
|
Six
months
|
||||||||||||
ended
June 30,
|
ended
June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||
Service
cost
|
$
|
4,220
|
3,804
|
8,483
|
7,679
|
||||||||
Interest
cost
|
6,160
|
6,200
|
12,377
|
12,012
|
|||||||||
Expected
return on plan assets
|
(8,183
|
)
|
(7,357
|
)
|
(16,367
|
)
|
(14,613
|
)
|
|||||
Recognized
net losses
|
1,962
|
1,816
|
3,840
|
3,133
|
|||||||||
Net
amortization and deferral
|
(123
|
)
|
89
|
6
|
167
|
||||||||
Net
periodic pension expense
|
$
|
4,036
|
4,552
|
8,339
|
8,378
|
(5)
|
Stock-based
Compensation
|
Remaining
|
Aggregate
|
||||||||||||
Number
|
Average
|
contractual
|
intrinsic
|
||||||||||
of
options
|
price
|
term
(in years)
|
value
|
||||||||||
Outstanding
December 31, 2005
|
5,995,458
|
$
|
30.63
|
||||||||||
Granted
|
960,375
|
35.82
|
|||||||||||
Exercised
|
(1,305,115
|
)
|
27.94
|
||||||||||
Forfeited/Cancelled
|
(14,720
|
)
|
35.75
|
||||||||||
Outstanding
June 30, 2006
|
5,635,998
|
$
|
32.13
|
6.5
|
$
|
28,317,000
|
|||||||
Exercisable
June 30, 2006
|
4,687,173
|
$
|
31.38
|
5.9
|
$
|
27,052,000
|
Number
|
Average
grant
|
||||||
of
shares
|
date
fair value
|
||||||
Nonvested
at January 1, 2006
|
511,919
|
$
|
30.92
|
||||
Granted
|
293,943
|
36.02
|
|||||
Vested
|
(73,302
|
)
|
32.88
|
||||
Forfeited
|
(714
|
)
|
32.54
|
||||
Nonvested
at June 30, 2006
|
731,846
|
$
|
32.77
|
Three
months
|
Six
months
|
||||||
ended
|
ended
|
||||||
June
30, 2005
|
June
30, 2005
|
||||||
(Dollars
in thousands, except
per share amounts)
|
|||||||
Net
income, as reported
|
$
|
85,118
|
164,734
|
||||
Less:
Total stock-based employee compensation expense
determined
under fair value based method, net of tax
|
(1,685
|
)
|
(5,903
|
)
|
|||
Pro
forma net income
|
$
|
83,433
|
158,831
|
||||
Basic
earnings per share
|
|||||||
As
reported
|
$
|
.65
|
1.25
|
||||
Pro
forma
|
$
|
.64
|
1.21
|
||||
Diluted
earnings per share
|
|||||||
As
reported
|
$
|
.64
|
1.23
|
||||
Pro
forma
|
$
|
.63
|
1.18
|
(6)
|
Business
Segments
|
Three
months
|
Six
months
|
||||||||||||
ended
June 30,
|
ended
June 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
(Dollars
in thousands)
|
|||||||||||||
Voice
|
$
|
216,786
|
221,708
|
434,235
|
446,208
|
||||||||
Network
access
|
221,586
|
239,404
|
446,832
|
469,682
|
|||||||||
Data
|
84,447
|
76,049
|
167,685
|
148,955
|
|||||||||
Fiber
transport and CLEC
|
36,051
|
21,636
|
71,831
|
41,879
|
|||||||||
Other
|
50,261
|
47,616
|
100,197
|
94,971
|
|||||||||
Total
operating revenues
|
$
|
609,131
|
606,413
|
1,220,780
|
1,201,695
|
(7)
|
Accelerated
Share Repurchase Program
|
(8)
|
Reduction
in Workforce
|
Balance
at December 31, 2005
|
$
|
-
|
||
Amount
accrued to expense
|
6,176
|
|||
Amount
paid
|
(5,638
|
)
|
||
Balance
at June 30, 2006
|
$
|
538
|
(9)
|
Commitments
and Contingencies
|
(10)
|
Nonrecurring
gains
|
Three
months
|
|||||||
ended
June 30,
|
|||||||
2006
|
|
2005
|
|||||
(Dollars,
except per share amounts, and shares in thousands)
|
|||||||
Operating
income
|
$
|
165,249
|
185,882
|
||||
Interest
expense
|
(50,639
|
)
|
(49,647
|
)
|
|||
Income
from unconsolidated cellular entity
|
2,076
|
724
|
|||||
Nonrecurring
gains
|
118,649
|
-
|
|||||
Other
income (expense)
|
2,734
|
1,220
|
|||||
Income
tax expense
|
(85,701
|
)
|
(53,061
|
)
|
|||
Net
income
|
$
|
152,368
|
85,118
|
||||
Basic
earnings per share
|
$
|
1.32
|
.65
|
||||
Diluted
earnings per share
|
$
|
1.26
|
.64
|
||||
Average
basic shares outstanding
|
115,441
|
130,299
|
|||||
Average
diluted shares outstanding
|
121,636
|
135,345
|
Three
months
|
|||||||
ended
June 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
Voice
|
$
|
216,786
|
221,708
|
||||
Network
access
|
221,586
|
239,404
|
|||||
Data
|
84,447
|
76,049
|
|||||
Fiber
transport and CLEC
|
36,051
|
21,636
|
|||||
Other
|
50,261
|
47,616
|
|||||
$
|
609,131
|
606,413
|
Three
months
|
|||||||
ended
June 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
Cost
of services and products (exclusive of depreciation and
amortization)
|
$
|
216,466
|
194,873
|
||||
Selling,
general and administrative
|
95,596
|
95,206
|
|||||
Depreciation
and amortization
|
131,820
|
130,452
|
|||||
$
|
443,882
|
420,531
|
Six
months
|
|||||||
ended
June 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars,
except per share amounts, and shares in thousands)
|
|||||||
Operating
income
|
$
|
323,441
|
362,742
|
||||
Interest
expense
|
(100,725
|
)
|
(102,272
|
)
|
|||
Income
from unconsolidated cellular entity
|
4,149
|
2,037
|
|||||
Nonrecurring
gains
|
118,649
|
-
|
|||||
Other
income (expense)
|
5,258
|
2,755
|
|||||
Income
tax expense
|
(128,979
|
)
|
(100,528
|
)
|
|||
Net
income
|
$
|
221,793
|
164,734
|
||||
Basic
earnings per share
|
$
|
1.86
|
1.25
|
||||
Diluted
earnings per share
|
$
|
1.80
|
1.23
|
||||
Average
basic shares outstanding
|
118,917
|
131,241
|
|||||
Average
diluted shares outstanding
|
124,798
|
136,257
|
Six
months
|
|||||||
ended
June 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
Voice
|
$
|
434,235
|
446,208
|
||||
Network
access
|
446,832
|
469,682
|
|||||
Data
|
167,685
|
148,955
|
|||||
Fiber
transport and CLEC
|
71,831
|
41,879
|
|||||
Other
|
100,197
|
94,971
|
|||||
$
|
1,220,780
|
1,201,695
|
Six
months
|
|||||||
ended
June 30,
|
|||||||
2006
|
2005
|
||||||
(Dollars
in thousands)
|
|||||||
Cost
of services and products (exclusive of depreciation and
amortization)
|
$
|
439,418
|
386,866
|
||||
Selling,
general and administrative
|
191,536
|
189,460
|
|||||
Depreciation
and amortization
|
266,385
|
262,627
|
|||||
$
|
897,339
|
838,953
|
Item
1.
|
Legal
Proceedings.
|
Item
1A.
|
Risk
Factors.
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds
|
Item
4.
|
Submission
of Matters to a Vote of Security
Holders
|
Class
III Nominees
|
For
|
Withheld
|
||
|
||||
Fred
R. Nichols
|
159,984,988
|
12,292,580
|
||
Harvey
P. Perry
|
159,993,956
|
12,283,612
|
||
Jim
D. Reppond
|
155,639,592
|
16,637,976
|
||
Joseph
R. Zimmel
|
162,637,199
|
9,640,369
|
Class
I
|
Class
II
|
|
|
||
William
R. Boles, Jr.
|
Virginia
Boulet
|
|
W.
Bruce Hanks
|
Calvin
Czeschin
|
|
C.
G. Melville, Jr.
|
James
B. Gardner
|
|
Glen
F. Post, III
|
Gregory
J. McCray
|
|
For
|
158,600,155
|
Against
|
9,016,662
|
|
Abstain
|
2,371,279
|
|
Broker
non-votes
|
2,289,472
|
Item
6.
|
Exhibits
and Reports on Form 8-K
|
A.
|
Exhibits
|
|||
10.1
|
Form
of Restricted Stock Agreement pursuant to the 2005 Directors Stock
Plan,
entered into between CenturyTel and each of its outside directors
as of
May 12, 2006.
|
|||
11
|
Computations
of Earnings Per Share.
|
|||
31.1
|
Registrant’s
Chief Executive Officer certification pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002.
|
|||
31.2
|
Registrant’s
Chief Financial Officer certification pursuant to Section 302 of
the
Sarbanes-Oxley Act of 2002.
|
|||
32
|
Registrant’s
Chief Executive Officer and Chief Financial Officer certification
pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|||
B.
|
Reports
on Form 8-K
|
|||
The
following items were reported in the Form 8-K filed April 27,
2006:
|
||||
Items
2.02 and 9.01 - Results of Operations and Financial Condition and
Financial Statements and Exhibits. News release announcing first
quarter
2006 operating results.
|
CenturyTel,
Inc.
|
|
Date:
August 2, 2006
|
/s/
Neil A. Sweasy
|
Neil
A. Sweasy
|
|
Vice
President and Controller
|
|
(Principal
Accounting
Officer)
|