Cincinnati Bell 2011 Annual Report Download - page 226

are primarily provided to customers in southwestern Ohio, northern Kentucky, and southeastern Indiana. In 2011,
the Company sold substantially all of the assets associated with its home security monitoring business and
recognized a pretax gain of $8.4 million. Wireline recognized restructuring charges of $7.7 million, $8.2 million,
and $12.6 million in 2011, 2010, and 2009, respectively, for employee separation, lease abandonments, and
special termination benefits.
The Wireless segment provides advanced digital wireless voice and data communications services and sales
of related handset equipment to customers in the Greater Cincinnati and Dayton, Ohio operating areas. In 2011,
the Wireless segment recognized a goodwill impairment loss of $50.3 million and other asset impairment losses
of $1.1 million. In 2010, the Wireless segment incurred restructuring charges of $1.0 million. In 2009, the
Company sold 196 towers for $99.9 million of cash proceeds. Also in 2009, the Wireless segment sold almost all
of its owned wireless licenses for areas outside of its Cincinnati and Dayton, Ohio operating territories. These
licenses, which were primarily for the Indianapolis, Indiana region, were sold for $6.0 million, resulting in a loss
on sale of the spectrum asset of $4.8 million, included in “Gain/(loss) on sale of assets” in the Consolidated
Statements of Operations.
The Data Center Colocation segment provides data center colocation services to primarily large businesses.
As of December 31, 2011, the Company owns or maintains 20 data centers in Texas, Ohio, Kentucky, Indiana,
Michigan, Illinois, England, and Singapore. On June 11, 2010, the Company purchased CyrusOne, a data center
operator based in Texas, for approximately $526 million, net of cash acquired. In 2010, a restructuring charge of
$1.4 million was incurred to conform the Cincinnati-based operation’s commission incentive program to the
CyrusOne program. No restructuring charges were incurred in 2011 or 2009.
The IT Services and Hardware segment provides a range of fully managed and outsourced IT and
telecommunications services along with the sale, installation, and maintenance of major branded IT and
telephony equipment. During 2011 and 2010, the IT Services and Hardware segment incurred employee
separation charges of $1.9 million and $2.8 million, respectively, associated with the elimination of certain
functions due to product consolidation and integration within the Wireline segment. No restructuring charges
were incurred in 2009.
Corporate operating results include acquisition costs of $2.6 million in 2011 and $9.1 million in 2010.
Corporate recognized restructuring charges of $2.6 million and $0.3 million in 2011 and 2010, respectively. No
restructuring charges were recognized in 2009.
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Form 10-K Part II Cincinnati Bell Inc.