Restructuring Charges

6 Months Ended

Jun. 30, 2011

The Company’s restructuring activities consist of actions taken to reduce operating costs, integrate recently acquired businesses, and eliminate non-strategic operations. Restructuring liabilities have been established for employee separation obligations, lease abandonment, and conforming commission incentive programs.

A summary of the activity in these liabilities is presented below:



(dollars in millions):	Employee Separation			Lease Abandonment			Other			Total
Beginning balance (December 31, 2010)	$	11.7		$	7.2		$	1.4		$	20.3
Utilizations	(3.2		)	(0.4		)	(1.4		)	(5.0		)
First quarter balance (March 31, 2011)	$	8.5		$	6.8		$	—		$	15.3
Utilizations	(1.1		)	(0.5		)	—			(1.6		)
Ending balance (June 30, 2011)	$	7.4		$	6.3		$	—		$	13.7

The liability for employee separations shown in the table above includes future separations to occur under the Company's written plans. As of the end of June 30, 2011 and December 31, 2010 the liability by segment was as follows:



(dollars in millions):	June 30, 2011		December 31, 2010
Wireline	$	6.1	$	9.4
Wireless	0.6		0.8
Data Center Colocation	—		—
IT Services and Hardware	0.7		1.3
Corporate	—		0.2
	$	7.4	$	11.7

In the second quarter of 2010, a restructuring charge of $1.8 million was recorded for headcount reduction in IT Services and Hardware. A lease abandonment charge of $3.3 million was also incurred in the second quarter of 2010, representing future lease costs, net of sublease income, on office space abandoned by the Company primarily resulting from the decrease in Wireline headcount over the past several years. The lease obligations are expected to continue through 2015 and the liability remaining as of June 30, 2011 is $2.9 million.

In 2001, the Company adopted a restructuring plan which included initiatives to eliminate non-strategic operations and merge internet operations in the Company's other operations. The Company completed the plan prior to 2003, except for certain lease obligations, which are expected to continue through 2015 and for which a $3.4 million liability remains as of June 30, 2011. These obligations are considered liabilities of the Corporate segment.

At December 31, 2010, other restructuring costs consisted of $1.4 million to conform the Company’s commission incentive program for the Data Center Colocation segment. All payments under this program were completed as of March 31, 2011.

At June 30, 2011 and December 31, 2010, $6.4 million and $9.3 million, respectively, of the restructuring liabilities were included in “Other current liabilities,” and $7.3 million and $11.0 million, respectively, were included in “Other noncurrent liabilities,” in the Condensed Consolidated Balance Sheets.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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