Business Segment Information

9 Months Ended

Sep. 30, 2012

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, entertainment, voice over internet protocol (“VoIP”), and other services over its owned and other wireline networks. The Wireless segment provides advanced digital voice and data communications services and sales of related handset 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 owns or maintains 23 data centers in Texas, Ohio, Kentucky, Indiana, Illinois, England and Singapore. The IT Services and Hardware segment provides a range of fully managed and outsourced information technology (“IT”) and telecommunications services along with the sale, installation, and maintenance of major branded IT and telephony equipment.

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

Selected financial data for the Company’s business segment information is as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(dollars in millions)	2012			2011			2012			2011
Revenue
Wireline	$	182.3		$	182.7		$	548.4		$	551.8
Wireless	59.5			68.1			185.0			209.2
Data Center Colocation	56.7			47.1			163.3			135.6
IT Services and Hardware	78.3			78.9			228.8			224.9
Intersegment	(8.6		)	(8.0		)	(26.3		)	(24.4		)
Total revenue	$	368.2		$	368.8		$	1,099.2		$	1,097.1
Intersegment revenue
Wireline	$	4.8		$	5.8		$	14.5		$	17.4
Wireless	0.5			0.6			1.7			1.7
Data Center Colocation	1.5			0.5			4.7			1.6
IT Services and Hardware	1.8			1.1			5.4			3.7
Total intersegment revenue	$	8.6		$	8.0		$	26.3		$	24.4
Operating income
Wireline	$	50.9		$	65.2		$	162.8		$	180.2
Wireless	12.6			11.6			43.5			43.1
Data Center Colocation	11.2			11.3			22.5			36.1
IT Services and Hardware	3.8			4.0			7.2			8.7
Corporate	(12.5		)	(5.8		)	(23.8		)	(17.8		)
Total operating income	$	66.0		$	86.3		$	212.2		$	250.3
Expenditures for long-lived assets
Wireline	$	27.8		$	27.1		$	77.5		$	75.2
Wireless	4.2			4.9			12.4			10.6
Data Center Colocation	41.6			41.0			146.4			77.2
IT Services and Hardware	1.9			1.5			6.6			4.0
Total expenditures for long-lived assets	$	75.5		$	74.5		$	242.9		$	167.0
Depreciation and amortization
Wireline	$	26.6		$	25.6		$	78.9		$	76.1
Wireless	8.1			8.0			24.0			25.1
Data Center Colocation	18.3			13.2			50.9			38.2
IT Services and Hardware	2.4			2.2			6.3			6.6
Corporate	—			0.1			0.1			0.3
Total depreciation and amortization	$	55.4		$	49.1		$	160.2		$	146.3
	September 30, 2012			December 31, 2011
Assets
Wireline	$	721.0		$	713.6
Wireless	277.5			295.2
Data Center Colocation	1,089.0			964.0
IT Services and Hardware	44.2			36.6
Corporate and eliminations	620.6			705.3
Total assets	$	2,752.3		$	2,714.7