Business Segment Information

3 Months Ended

Mar. 31, 2020

12. 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 Entertainment and Communications and IT Services and Hardware.

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, 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 long distance, switched access and digital trunking. Other services consist 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)	2020			2019
Revenue
Entertainment and Communications	$	243.8		$	250.3
IT Services and Hardware		142.3			136.3
Intersegment		(6.1	)		(7.0	)
Total revenue	$	380.0		$	379.6
Intersegment revenue
Entertainment and Communications	$	4.9		$	6.0
IT Services and Hardware		1.2			1.0
Total intersegment revenue	$	6.1		$	7.0
Operating (loss) income
Entertainment and Communications	$	12.1		$	24.5
IT Services and Hardware		1.7			(6.8	)
Corporate		(34.0	)		(7.6	)
Total operating (loss) income	$	(20.2	)	$	10.1
Expenditures for long-lived assets*
Entertainment and Communications	$	44.4		$	51.1
IT Services and Hardware		6.5			5.4
Total expenditures for long-lived assets	$	50.9		$	56.5
Depreciation and amortization
Entertainment and Communications	$	63.9		$	62.7
IT Services and Hardware		10.3			16.7
Total depreciation and amortization	$	74.2		$	79.4

Includes cost of acquisitions

	March 31,		December 31,
(dollars in millions)	2020		2019
Assets
Entertainment and Communications	$	1,822.5	$	1,840.0
IT Services and Hardware		464.5		500.7
Corporate and eliminations		312.6		313.1
Total assets	$	2,599.6	$	2,653.8