XML 48 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Restructuring Charges
6 Months Ended
Jun. 30, 2014
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure [Text Block]
Restructuring Charges
As of June 30, 2014, restructuring liabilities have been established for employee separations, lease abandonments and contract terminations. A summary of the activity in our restructuring liabilities is presented below:
(dollars in millions)
Employee Separation
 
Lease Abandonment
 
Contract Terminations
 
Total
Balance as of December 31, 2013
$
9.7

 
$
6.0

 
$
0.1

 
$
15.8

Charges

 

 

 

Utilization
(2.6
)
 
(0.9
)
 

 
(3.5
)
Balance as of March 31, 2014
$
7.1

 
$
5.1

 
$
0.1

 
$
12.3

Charges
3.5

 

 
2.9

 
6.4

Utilization
(0.3
)
 
(0.8
)
 

 
(1.1
)
Balance as of June 30, 2014
$
10.3

 
$
4.3

 
$
3.0

 
$
17.6


The Company made severance payments during the six months ended June 30, 2014, pursuant to its written severance plan and certain management contracts. During the three months ended June 30, 2014, the Company recorded employee separation charges of $1.2 million attributable to the outsourcing of a portion of the Company's IT function. These payments are expected to be paid out during the current year. Lease abandonment costs represent future minimum lease obligations, net of expected sublease income, for abandoned facilities. Lease payments on abandoned facilities will continue through 2015.

On April 7, 2014, the Company announced that it had entered into an arrangement to sell its wireless spectrum licenses and certain other assets related to its wireless business. In anticipation of the close of this transaction, the Company identified certain employees that will be terminated and contracts that will no longer be utilized once the wireless business ceases to exist. Severance charges totaling $2.3 million were recorded during the three months ending June 30, 2014. Contract termination costs of $2.9 million were recorded during the quarter associated with an IT support vendor that will no longer be used subsequent to winding down the wireless operations. Additional restructuring charges associated with the shut down of our wireless operations will be recognized once the accounting criteria are achieved. The payments associated with the exit of the business are expected to be paid out through 2015.
A summary of restructuring activity by business segment is presented below:
(dollars in millions)
Wireline
 
IT Services and Hardware
 
Wireless
 
Corporate
 
Total
Balance as of December 31, 2013
$
10.5

 
$
0.8

 
$
1.5

 
$
3.0

 
$
15.8

Charges

 

 

 

 

Utilizations
(1.8
)
 

 
(0.3
)
 
(1.4
)
 
(3.5
)
Balance as of March 31, 2014
$
8.7

 
$
0.8

 
$
1.2

 
$
1.6

 
$
12.3

Charges
1.1

 

 
5.2

 
0.1

 
6.4

Utilizations
(0.6
)
 
(0.1
)
 
(0.3
)
 
(0.1
)
 
(1.1
)
Balance as of June 30, 2014
$
9.2

 
$
0.7

 
$
6.1

 
$
1.6

 
$
17.6


At June 30, 2014 and December 31, 2013, $11.6 million and $7.8 million, respectively, of the restructuring liabilities were included in “Other current liabilities,” and $6.0 million and $8.0 million, respectively, were included in “Other noncurrent liabilities” in the Condensed Consolidated Balance Sheets.