INVESTMENT IN CELLULAR PARTNERSHIP

On July 1, 2011, the Company completed the sale of its 33.8% limited partnership interest in the Cincinnati SMSA Limited Partnership and its 45.0% limited partnership interest in the Cincinnati SMSA Tower Holdings LLC (collectively referred to as the "Cellular Partnerships") to AT&T. AT&T is the general and a limited partner of both Cincinnati SMSA Limited Partnership and Cincinnati SMSA Tower Holdings LLC with a partnership interest prior to Convergys' sale of its interests of approximately 66% and 53%, respectively. The Company received approximately $320 in cash proceeds upon closing and $11.1 in quarterly distributions from the Cellular Partnerships for the second quarter of 2011 in the third quarter of 2011. The Company's interests in the Cellular Partnerships did not qualify as discontinued operations; therefore, the gain has been reported within income from continuing operations and no reclassification of prior results is required. The net gain on sale of its interests in the Cellular Partnerships was $265.0, or $171.8 net of tax.

Since the Cellular Partnerships were organized as limited partnerships, the partners are responsible for income taxes applicable to their share of taxable income generated by the Cellular Partnerships. The net income of the Cincinnati SMSA Limited Partnership reflected in the following table does not include any provision for income taxes incurred by the partners.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Revenues	$	—	$	171.4	$	359.8	$	484.7
Income from operations	—		35.0		61.2		109.4
Net income	—		34.2		60.8		106.4

We accounted for our interest in this limited liability company under the equity method of accounting. The Company’s equity in earnings of equity method investees for the three and nine months ended September 30, 2011 and 2010, respectively, is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011			2010
Convergys’ equity in earnings of Cincinnati SMSA Limited Partnership	$	—	$	11.6	$	20.5		$	36.1
Convergys’ equity in earnings of Cincinnati SMSA Tower Holdings LLC	—		0.3		0.9			0.8
Transaction costs related to the sale of Convergys’ interest in Cellular Partnerships	—		—		(1.2		)	—
Gain on sale of Convergys' interests in Cellular Partnerships	$	265.0	$	—	$	265.0		$	—
Total earnings and gain from Cellular Partnerships, net	$	265.0	$	11.9	$	285.2		$	36.9