Business Segment Information

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups CLEC revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. Accordingly, the Company recast the previously reported 2017 segment disclosures to conform to the new segmentation.

Effective January 1, 2018, we adopted the requirements of ASU 2014-09, Revenue from Contracts with Customers and ASU 2017-07, Improving the Presentation of Net Period Pension Cost and Net Periodic Postretirement Benefit Cost. As a result of adopting these standards, certain prior period amounts reported below have been restated to conform to current period presentation.

The Company’s segments are strategic business units that offer distinct products and services and are aligned with the Company's internal management structure and reporting. The Entertainment and Communications segment provides products and services that can be categorized as Data, Video, Voice or Other. Data products include high-speed internet access, digital subscriber lines, ethernet, SONET, dedicated internet access, wavelength and digital signal. These products are used to transport large amounts of data over private networks. Video services provide our Fioptics customers access to over 400 entertainment channels, over 140 high-definition channels, parental controls, HD DVR, Video On-Demand and access to a Fioptics live TV streaming application. Voice represents traditional voice lines as well as Fioptics voice lines, consumer long distance, switched access and digital trunking. Other services consists of revenue generated from wiring projects for enterprise customers, advertising, directory assistance, maintenance and information services.

The IT Services and Hardware segment provides end-to-end solutions from consulting to implementation to ongoing optimization. These solutions include Cloud, Communications and Consulting services along with the sale, installation and maintenance of major branded Telecom and IT hardware reported as Infrastructure Solutions.

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
	March 31,
(dollars in millions)	2018			2017
Revenue
Entertainment and Communications	$	174.2		$	175.1
IT Services and Hardware	127.6			81.0
Intersegment	(6.1		)	(6.5		)
Total revenue	$	295.7		$	249.6
Intersegment revenue
Entertainment and Communications	$	5.2		$	5.4
IT Services and Hardware	0.9			1.1
Total intersegment revenue	$	6.1		$	6.5
Operating income (loss)
Entertainment and Communications	$	28.6		$	3.1
IT Services and Hardware	1.4			0.9
Corporate	(5.8		)	(5.8		)
Total operating income (loss)	$	24.2		$	(1.8	)
Expenditures for long-lived assets*
Entertainment and Communications	$	27.6		$	46.8
IT Services and Hardware	7.9			17.5
Total expenditures for long-lived assets	$	35.5		$	64.3
Depreciation and amortization
Entertainment and Communications	$	40.9		$	39.4
IT Services and Hardware	10.2			6.4
Corporate	0.1			—
Total depreciation and amortization	$	51.2		$	45.8
* Includes cost of acquisitions
	March 31,			December 31,
(dollars in millions)	2018			2017
Assets
Entertainment and Communications	$	1,102.5		$	1,111.4
IT Services and Hardware	494.4			482.7
Corporate and eliminations	589.1			593.5
Total assets	$	2,186.0		$	2,187.6