Business Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Business Segment Information

16.Business Segment Information

The Company’s operations are managed and reported to its Chief Executive Officer (“CEO”), the Company’s chief operating decision maker ("CODM"). The CODM evaluates the performance of two regions, Greater Cincinnati, which services customers through the altafiber brand, and Hawaii, which services customers through our Hawaiian Telcom brand, and allocates resources based on geography. These operating segments are aggregated into one reportable segment, Network, due to similarities in the nature and economics of the regions, suppliers utilized, operating processes, and long-term financial performance. The accounting policies for the Network segment are consistent with those described in the Summary of Significant Accounting Policies.

The CODM uses Operating Income to evaluate income or loss generated from each region and to guide decisions on capital investments. These decisions may include capital expenditures and/or acquisitions. See Note 4 for a description of the Company's disaggregated revenues by product line. Significant segment expenses are presented in the Company’s consolidated statements of operations. Additional disaggregated significant segment expenses that are reviewed by the CODM, that are not separately presented on the Company’s consolidated statements of operations, are presented below. Segment asset information is not used by the CODM to allocate resources.

Certain corporate administrative expenses have been allocated to the Network segment based upon the nature of the expense.

Our business segment information is as follows:

	Year ended December 31,
(dollars in millions)	2024			2023			2022
Revenue
Network	$	1,096.3		$	1,100.1		$	1,091.5
Total revenue	$	1,096.3		$	1,100.1		$	1,091.5
Operating loss
Network	$	(71.5	)	$	(54.9	)	$	(59.7	)
Corporate		(33.2	)		(26.2	)		(26.4	)
Total operating loss	$	(104.7	)	$	(81.1	)	$	(86.1	)
Expenditures for long-lived assets*
Network	$	534.8		$	632.7		$	532.8
Corporate		1.8			0.2			0.1
Total expenditures for long-lived assets	$	536.6		$	632.9		$	532.9
Depreciation and amortization
Network	$	338.7		$	369.2		$	408.4
Corporate		0.2			0.3			0.4
Total depreciation and amortization	$	338.9		$	369.5		$	408.8

*Includes cost of acquisitions in the years ended December 31, 2023 and 2022 and the purchase of perpetual licenses in the year ended December 31, 2022.

The following table provides information about the Network segment significant expenses that are reviewed by the CODM, that are not separately presented on the Company’s consolidated statements of operations:

	Year ended December 31,
(dollars in millions)	2024			2023			2022
Network Revenue	$	1,096.3		$	1,100.1		$	1,091.5
Less: Significant and other segment expenses
Employee and related costs		225.0			228.9			224.7
Programming expense		150.2			151.6			146.2
Network expense		33.7			47.6			53.1
Contract services		92.9			97.3			89.9
Other expenses		268.0			250.1			228.9
Depreciation and amortization expense		338.7			369.2			408.4
Restructuring and severance related charges		59.3			10.3			—
Network operating costs and expenses		1,167.8			1,155.0			1,151.2
Network operating loss	$	(71.5	)	$	(54.9	)	$	(59.7	)

Programming expense and Network expense are recorded to Cost of services and products. Employee and related costs, Contract services and Other expenses are recorded to Cost of services and products and Selling, general and administrative. All costs and expenses not specifically identified in the table above have been aggregated as Other expenses.