Business Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Business Segment Information

10. Business Segment Information

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 Company operates two business segments identified as Network and IT Services and Hardware.

The Network 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, digital signal and IRU. Video services provide our customers access to over 400 entertainment channels, over 150 high-definition channels, parental controls, HD DVR, Video On-Demand and access to a live TV streaming application. Voice represents traditional voice lines as well as fiber voice lines, consumer and business long distance, switched access and digital trunking. Other services consist of revenue generated from wiring projects for enterprise customers, advertising, directory assistance, maintenance, information services and subsidized fiber build project revenue related to extending the Company’s fiber network in the Greater Cincinnati territory subsidized through our UniCity program and in Hawaii subsidized through a customer contract. In May 2022, the Company acquired Agile and includes Agile’s financial results in the Network segment.

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)	2023			2022
Revenue
Network	$	249.8		$	243.5
IT Services and Hardware		205.0			198.8
Intersegment		(5.9	)		(6.5	)
Total revenue	$	448.9		$	435.8
Intersegment revenue
Network	$	4.1		$	4.9
IT Services and Hardware		1.8			1.6
Total intersegment revenue	$	5.9		$	6.5
Operating loss
Network	$	(29.1	)	$	(3.1	)
IT Services and Hardware		(5.8	)		(4.9	)
Corporate		(8.3	)		(7.0	)
Total operating loss	$	(43.2	)	$	(15.0	)
Expenditures for long-lived assets*
Network	$	140.4		$	81.5
IT Services and Hardware		5.9			6.3
Corporate		0.1			—
Total expenditures for long-lived assets	$	146.4		$	87.8
Depreciation and amortization
Network	$	108.9		$	93.4
IT Services and Hardware		24.3			26.0
Corporate		0.1			0.1
Total depreciation and amortization	$	133.3		$	119.5

* Includes cost of acquisitions

(dollars in millions)	March 31, 2023		December 31, 2022
Assets
Network	$	3,276.5	$	3,218.5
IT Services and Hardware		982.9		812.2
Corporate and eliminations		143.5		404.9
Total assets	$	4,402.9	$	4,435.6