Property Plant and Equipment

12 Months Ended

Dec. 31, 2012

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

Property, Plant and Equipment

Property, plant and equipment is comprised of the following:



	December 31,						Depreciable Lives (Years)
(dollars in millions)	2012			2011			Depreciable Lives (Years)
Land and rights-of-way	$	49.7		$	30.9		20	-	Indefinite
Buildings and leasehold improvements	895.9			736.2			3	-	50
Network equipment	2,858.4			2,701.3			2	-	50
Office software, furniture, fixtures and vehicles	133.8			129.3			3	-	14
Construction in process	78.6			78.3			n/a
Gross value	4,016.4			3,676.0
Accumulated depreciation	(2,429.0		)	(2,275.5		)
Property, plant and equipment, net	$	1,587.4		$	1,400.5

Depreciation expense on property, plant and equipment was $198.8 million, $180.4 million, and $167.9 million in 2012, 2011, and 2010, respectively. Approximately 87%, 84%, and 82% of "Depreciation," as presented in the Consolidated Statements of Operations in 2012, 2011, and 2010, respectively, was associated with the cost of providing services. There are numerous assets included within network equipment resulting in a range of depreciable lives between 2 and 50 years, the majority of which, however, fall within the range of 9 to 22 years.

During the year ended December 31, 2012, an asset impairment loss of $11.8 million was recognized in the Data Center Colocation segment on certain leasehold improvements at data centers acquired in the GramTel acquisition. Also during 2012, asset impairment losses of $0.4 million and $0.5 million were recognized in the Wireless and Wireline segments, respectively. The Wireless impairment loss was associated with abandoned assets that have no resale market, and the Wireline impairment loss was associated with an out-of-territory fiber network. During 2011, asset impairment losses of $1.1 million and $1.0 million were recognized in the Wireless and Wireline segments, respectively, on abandoned assets that had no resale market. No asset impairment losses were recognized in 2010.

As of December 31, 2012 and 2011, buildings and leasehold improvements, network equipment, and office software, furniture, fixtures and vehicles include $244.1 million and $222.7 million, respectively, of assets accounted for as capital leases or financing arrangements. Amortization of capital lease assets is included in "Depreciation and amortization" in the Consolidated Statements of Operations.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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