Business Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segment Information

For the period January 1, 2013 through January 23, 2013, we operated four business segments: Wireline, IT Services and Hardware, Wireless and Data Center Colocation. Effective January 24, 2013, the date of the CyrusOne IPO, we no longer include CyrusOne, our former Data Center Colocation segment, in our consolidated financial statements and now account for our ownership in CyrusOne as an equity method investment. As of September 30, 2014, the carrying value of our investment in CyrusOne was $284.7 million and is included as an asset of the Corporate segment. 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.

As of September 30, 2014, we operated three business segments: Wireline, IT Services and Hardware, and Wireless. 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 products and services such as local voice, high-speed internet, data transport, long distance, entertainment, voice over internet protocol (VoIP), and other services. 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.

The agreement to sell our wireless spectrum licenses closed on September 30, 2014. We received cash proceeds of $194.4 million, which were transferred to the Corporate segment, and reduced intangible assets by $88.2 million, the carrying value of the spectrum licenses. We plan to provide wireless services until the later of April 6, 2015 and 90 days after the transfer of the licenses.

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)	2014			2013			2014			2013
Revenue
Wireline	$	184.0		$	181.4		$	552.3		$	542.7
IT Services and Hardware	120.0			87.5			323.5			258.0
Wireless	30.1			49.1			116.0			154.1
Data Center Colocation	—			—			—			15.6
Intersegment	(6.6		)	(7.2		)	(21.9		)	(21.9		)
Total revenue	$	327.5		$	310.8		$	969.9		$	948.5
Intersegment revenue
Wireline	$	3.9		$	4.2		$	12.0		$	12.8
IT Services and Hardware	2.3			2.5			8.4			7.0
Wireless	0.4			0.5			1.5			1.7
Data Center Colocation	—			—			—			0.4
Total intersegment revenue	$	6.6		$	7.2		$	21.9		$	21.9
Operating income (loss)
Wireline	$	43.9		$	47.8		$	147.0		$	146.8
IT Services and Hardware	8.1			4.4			16.3			6.6
Wireless	(33.0		)	7.0			(40.8		)	19.1
Data Center Colocation	—			—			—			3.2
Corporate	(3.0		)	(1.5		)	(14.0		)	(52.0		)
Total operating income	$	16.0		$	57.7		$	108.5		$	123.7
Expenditures for long-lived assets
Wireline	$	41.8		$	41.2		$	106.1		$	114.3
IT Services and Hardware	3.5			2.7			8.5			7.6
Wireless	0.3			2.2			6.5			12.4
Data Center Colocation	—			—			—			7.7
Total expenditures for long-lived assets	$	45.6		$	46.1		$	121.1		$	142.0
Depreciation and amortization
Wireline	$	29.3		$	29.7		$	85.6		$	83.8
IT Services and Hardware	3.0			2.5			8.6			7.5
Wireless	29.1			7.4			74.2			30.7
Data Center Colocation	—			—			—			5.2
Corporate	—			0.2			0.2			0.4
Total depreciation and amortization	$	61.4		$	39.8		$	168.6		$	127.6
	September 30, 2014			December 31, 2013
Assets
Wireline	$	819.7		$	780.8
IT Services and Hardware	58.2			48.9
Wireless	148.0			247.5
Corporate and eliminations	926.7			1,030.1
Total assets	$	1,952.6		$	2,107.3