Quarterly Financial Information (Unaudited)



	2017
	First			Second			Third			Fourth
(in millions, except per common share amounts)	Quarter			Quarter			Quarter			Quarter			Total
Revenue	$	278.2		$	294.0		$	289.2		$	427.1		$	1,288.5
Operating (loss) income	(5.3		)	20.9			12.7			9.8			38.1
Net income (loss)	60.4			2.1			(11.2		)	(16.2		)	35.1

Net basic earnings (loss) per common share	$	1.37		$	(0.01	)	$	(0.33	)	$	(0.45	)	$	0.59

Net diluted earnings (loss) per common share	$	1.37		$	(0.01	)	$	(0.33	)	$	(0.45	)	$	0.58

	2016
	First			Second			Third			Fourth
(in millions, except per common share amounts)	Quarter			Quarter			Quarter			Quarter			Total
Revenue	$	288.9		$	299.2		$	312.4		$	285.3		$	1,185.8
Operating income	29.6			27.4			25.5			10.5			93.0
Income (loss) from continuing operations	7.0			77.6			18.8			(1.6		)	101.8
Income from discontinued operations, net of tax	—			—			—			0.3			0.3
Net income (loss)	7.0			77.6			18.8			(1.3		)	102.1

Basic earnings (loss) per common share from continuing operations	$	0.10		$	1.79		$	0.39		$	(0.10	)	$	2.17
Basic earnings per common share from discontinued operations	$	—		$	—		$	—		$	0.01		$	0.01
Net basic earnings (loss) per common share	$	0.10		$	1.79		$	0.39		$	(0.09	)	$	2.18

Diluted earnings (loss) per common share from continuing operations	$	0.10		$	1.78		$	0.38		$	(0.10	)	$	2.17
Diluted earnings per common share from discontinued operations	$	—		$	—		$	—		$	0.01		$	0.01
Net diluted earnings (loss) per common share	$	0.10		$	1.78		$	0.38		$	(0.09	)	$	2.18

The effects of assumed common share conversions are determined independently for each respective quarter and year and may not be dilutive during every period due to variations in operating results. Therefore, the sum of quarterly per share results will not necessarily equal the per share results for the full year.

Restructuring and employee severance charges totaled $25.6 million, $3.6 million and $3.5 million in the first, second and fourth quarter of 2017, respectively. Restructuring and employee severance charges totaled $11.9 million in the fourth quarter of 2016.

Transaction and integration costs totaled $0.6 million, $1.7 million, $12.1 million and $4.1 million in the first, second, third, and fourth quarter of 2017, respectively. These costs were primarily related to the acquisitions of SunTel and OnX as well as the planned merger for the previously announced acquisition of Hawaiian Telcom.

In 2017, Net income includes gains from the sale of our CyrusOne investments of $117.7 million in the first quarter. In 2016, Income from continuing operations includes gains from the sale of our CyrusOne investment of $118.6 million, $33.3 million, and $5.1 million in the second, third, and fourth quarter, respectively.

In the fourth quarter of 2017, the Company recognized losses on extinguishment of debt of $3.2 million. In the first quarter of 2016, the Company recognized a gain on the extinguishment of debt of $2.4 million. The Company recognized losses on the extinguishment of debt of $5.2 million, $11.4 million, and $4.8 million in the second, third, and fourth quarter of 2016, respectively.

In the fourth quarter of 2017, the company acquired OnX. The revenues and net income of OnX included in the quarterly financial information from the acquisition date through December 31, 2017 were $150.0 million and $11.5 million. For further information related to this acquisition, see Note 3 of the Notes to Consolidated Financial Statements.

In the fourth quarter of 2017, the U.S. Government enacted the Tax Cuts and Jobs Act (the "Tax Act"). The transitional impact of the Tax Act resulted in a provisional net charge of $6.8 million in the fourth quarter of 2017.