Business Segment Information

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

The Company operates in four segments: Wireline, Wireless, Data Center Colocation, and IT Services and Hardware. The Company’s segments are strategic business units that offer distinct products and services and are aligned with its internal management structure and reporting.

The Wireline segment provides local voice, data, long-distance and other services to customers primarily in southwestern Ohio, northern Kentucky, and southeastern Indiana. The Wireless segment provides advanced digital voice and data communications services and sales of related communications equipment to customers in the Greater Cincinnati and Dayton, Ohio operating areas. The Data Center Colocation segment provides data center colocation services primarily to large businesses. The Company operates 19 data centers in Texas, Ohio, Kentucky, Indiana, Michigan, Illinois, and London, England. The IT Services and Hardware segment provides a range of fully managed and outsourced IT and telecommunications services along with the sale, installation, and maintenance of major branded IT and telephony equipment.

On June 11, 2010, the Company purchased CyrusOne, a data center operator based in Texas, for approximately $526 million, net of cash acquired. CyrusOne's post-acquisition financial results are included in the Data Center Colocation segment for the three and nine months ended September 30, 2011 and 2010.

In the fourth quarter of 2010, the Company realigned its reportable business segments to be consistent with changes to its management reporting. The segment formerly known as Technology Solutions was separated into the Data Center Colocation segment and the IT Services and Hardware segment. The changes to the Company’s management reporting were made primarily as a result of the CyrusOne acquisition. Prior year amounts have been reclassified to conform to the current segment reporting.

Certain corporate administrative expenses have been allocated to segments based upon the nature of the expense and the relative size of the segment. Intercompany transactions between segments have been eliminated.

The Company’s business segment information is as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(dollars in millions)	2011			2010			2011			2010
Revenue
Wireline	$	182.7		$	185.2		$	551.8		$	559.6
Wireless	68.1			72.8			209.2			219.7
Data Center Colocation	47.1			40.0			135.6			84.7
IT Services and Hardware	78.9			62.6			224.9			176.5
Intersegment	(8.0		)	(8.7		)	(24.4		)	(26.3		)
Total revenue	$	368.8		$	351.9		$	1,097.1		$	1,014.2
Intersegment revenue
Wireline	$	5.8		$	5.9		$	17.4		$	18.4
Wireless	0.6			0.7			1.7			2.1
Data Center Colocation	0.5			0.4			1.6			1.3
IT Services and Hardware	1.1			1.7			3.7			4.5
Total intersegment revenue	$	8.0		$	8.7		$	24.4		$	26.3
Operating income
Wireline	$	65.2		$	58.9		$	180.2		$	181.0
Wireless	11.6			15.7			43.1			52.2
Data Center Colocation	11.3			11.0			36.1			25.0
IT Services and Hardware	4.0			1.8			8.7			0.3
Corporate	(5.8		)	(4.8		)	(17.8		)	(23.7		)
Total operating income	$	86.3		$	82.6		$	250.3		$	234.8
Expenditures for long-lived assets
Wireline	$	27.1		$	24.3		$	75.2		$	67.4
Wireless	4.9			1.1			10.6			5.5
Data Center Colocation	41.0			16.2			77.2			548.4
IT Services and Hardware	1.5			1.4			4.0			6.6
Total expenditures for long-lived assets	$	74.5		$	43.0		$	167.0		$	627.9
Depreciation and amortization
Wireline	$	25.6		$	26.3		$	76.1		$	77.2
Wireless	8.0			8.1			25.1			25.4
Data Center Colocation	13.2			11.8			38.2			21.6
IT Services and Hardware	2.2			1.9			6.6			5.2
Corporate and eliminations	0.1			0.1			0.3			0.3
Total depreciation and amortization	$	49.1		$	48.2		$	146.3		$	129.7
	September 30, 2011			December 31, 2010
Assets
Wireline	$	701.1		$	694.1
Wireless	347.2			359.3
Data Center Colocation	919.9			857.2
IT Services and Hardware	37.4			34.7
Corporate and eliminations	678.2			708.3
Total assets	$	2,683.8		$	2,653.6