Business Segment Information

9 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segment Information

During the nine months ended September 30, 2013, the Company operated in the following segments: Wireline, Wireless, IT Services and Hardware and Data Center Colocation. 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 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.

On January 24, 2013, we completed the initial public offering of CyrusOne. Although we effectively own approximately 69% of CyrusOne through our ownership of its common stock and partnership units of CyrusOne LP, we no longer control its operations. The Data Center Colocation results shown in the accompanying tables reflect the revenues and expenses of our former data center business for the period January 1, 2013 through January 23, 2013. Effective January 24, 2013, we no longer include CyrusOne's operating results in our consolidated financial statements. For the three and nine months ended September 30, 2013, we recognized losses of $1.5 million and $8.1 million, respectively, from our investment in CyrusOne which represented our equity method share of CyrusOne's losses. These losses from CyrusOne were recognized as a component of non-operating income. As of September 30, 2013, the carrying value of our investment in CyrusOne was $480.7 million and is included as an asset of the Corporate segment.

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)	2013			2012			2013			2012
Revenue
Wireline	$	181.4		$	182.3		$	542.7		$	548.4
Wireless	49.1			59.5			154.1			185.0
IT Services and Hardware	87.5			78.3			258.0			228.8
Data Center Colocation	—			56.7			15.6			163.3
Intersegment	(7.2		)	(8.6		)	(21.9		)	(26.3		)
Total revenue	$	310.8		$	368.2		$	948.5		$	1,099.2
Intersegment revenue
Wireline	$	4.2		$	4.8		$	12.8		$	14.5
Wireless	0.5			0.5			1.7			1.7
IT Services and Hardware	2.5			1.8			7.0			5.4
Data Center Colocation	—			1.5			0.4			4.7
Total intersegment revenue	$	7.2		$	8.6		$	21.9		$	26.3
Operating income
Wireline	$	47.8		$	50.9		$	146.8		$	162.8
Wireless	7.0			12.6			19.1			43.5
IT Services and Hardware	4.4			3.8			6.6			7.2
Data Center Colocation	—			11.2			3.2			22.5
Corporate	(1.5		)	(12.5		)	(52.0		)	(23.8		)
Total operating income	$	57.7		$	66.0		$	123.7		$	212.2
Expenditures for long-lived assets
Wireline	$	41.2		$	27.8		$	114.3		$	77.5
Wireless	2.2			4.2			12.4			12.4
IT Services and Hardware	2.7			1.9			7.6			6.6
Data Center Colocation	—			41.6			7.7			146.4
Total expenditures for long-lived assets	$	46.1		$	75.5		$	142.0		$	242.9
Depreciation and amortization
Wireline	$	29.7		$	26.6		$	83.8		$	78.9
Wireless	7.4			8.1			30.7			24.0
IT Services and Hardware	2.5			2.4			7.5			6.3
Data Center Colocation	—			18.3			5.2			50.9
Corporate	0.2			—			0.4			0.1
Total depreciation and amortization	$	39.8		$	55.4		$	127.6		$	160.2
	September 30, 2013			December 31, 2012
Assets
Wireline	$	766.7		$	723.7
Wireless	252.2			275.6
IT Services and Hardware	51.8			43.3
Data Center Colocation	—			1,208.5
Corporate and eliminations	1,481.0			621.3
Total assets	$	2,551.7		$	2,872.4