SPINOFF: Alltel [AT] to Windstream [WIN]

SPINOFF: Alltel [AT] to Windstream [WIN]

Issue:

As of July 17, 2006, Alltel [AT] spun off 1.0339267 shares of VALOR stock for each share of Alltel owned. VALOR Communications was immediately renamed Windstream Corp [WIN]. Any Alltel shareholder entitled to receive a fractional share instead received a cash payment.

As of July 17,2006, Alltel closed at $53.65 and Windstream closed at $11.50. As a result of the spinoff, the basis for the Windstream shares received, including fractional shares, was 18.14% of the basis of the Alltel shares before the reorganization. The basis for the Alltel shares immediately after the transaction was 81.86% of the original basis.

Cause:

Refer to: http://phx.corporate-ir.net/phoenix.zhtml?c=74159&p=irol-irHome

Resolution:

The following instructions are for the online version of Club Accounting. However, users of other versions should be able to record the transaction based on these instructions.

1. Go to ACCOUNTING > SECURITIES > SPINOFF.

2. Enter 7/17/2006 for the date, AT for the parent company, and 1 for the number of companies that are being spun off.

3. Click CONTINUE.

4. Click on the button for Remaining Basis Percentage. Enter 81.86 in the percentage box.

5. Enter WIN for the symbol of the new company. Enter the number of WIN shares received, including any fractional shares. Enter 11.50 for the price per share of the WIN shares.

6. If cash in lieu of fractional shares was received, enter the amount in the box, and indicated the cash account where those proceeds were received.

7. Click SUBMIT.