Restructuring Charges
Restructuring liabilities have been established for employee separations, lease abandonment and contract terminations. A summary of activity in the restructuring liability is shown below:
|
| | | | | | | | | | | | | | | |
(dollars in millions) | Employee Separation | | Lease Abandonment | | Contract Terminations | | Total |
Balance as of December 31, 2009 | $ | 14.4 |
| | $ | 4.4 |
| | $ | — |
| | $ | 18.8 |
|
Reclassification | — |
| | 0.9 |
| | — |
| | 0.9 |
|
Charges | 8.7 |
| | 3.5 |
| | 1.5 |
| | 13.7 |
|
Utilizations | (11.4 | ) | | (1.6 | ) | | (0.1 | ) | | (13.1 | ) |
Balance as of December 31, 2010 | $ | 11.7 |
| | $ | 7.2 |
| | $ | 1.4 |
| | $ | 20.3 |
|
Charges | 8.0 |
| | 2.5 |
| | 1.7 |
| | 12.2 |
|
Utilizations | (5.5 | ) | | (1.6 | ) | | (1.4 | ) | | (8.5 | ) |
Balance as of December 31, 2011 | $ | 14.2 |
| | $ | 8.1 |
| | $ | 1.7 |
| | $ | 24.0 |
|
Charges | 2.5 |
| | 0.9 |
| | — |
| | 3.4 |
|
Utilizations | (8.9 | ) | | (3.5 | ) | | (1.5 | ) | | (13.9 | ) |
Balance as of December 31, 2012 | $ | 7.8 |
| | $ | 5.5 |
| | $ | 0.2 |
| | $ | 13.5 |
|
Employee separation costs consist of severance to be paid pursuant to the Company's written severance plan, certain management contracts and a voluntary termination program offered to certain Wireline call center employees. Severance payments are expected to be paid through 2014. Lease abandonment costs represent future minimum lease obligations, net of expected sublease income, for abandoned facilities. Lease payments on abandoned facilities will continue through 2018. In 2011, contract terminations consist of amounts due distributors to terminate their contractual agreements and to telecommunication carriers to cancel circuits. Contract terminations are expected to be paid in 2013. In 2010, contract terminations included charges to terminate a sales commission plan to conform sales commission programs between our data center operations.
A summary of restructuring activity by business segment is presented below:
|
| | | | | | | | | | | | | | | | | | | | | | | |
(dollars in millions) | Wireline | | Wireless | | Data Center Colocation | | IT Services and Hardware | | Corporate | | Total |
Balance as of December 31, 2009 | $ | 14.4 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 4.4 |
| | $ | 18.8 |
|
Reclassifications | 0.9 |
| | — |
| | — |
| | — |
| | — |
| | 0.9 |
|
Charges | 8.2 |
| | 1.0 |
| | 1.4 |
| | 2.8 |
| | 0.3 |
| | 13.7 |
|
Utilizations | (10.7 | ) | | — |
| | — |
| | (1.5 | ) | | (0.9 | ) | | (13.1 | ) |
Balance as of December 31, 2010 | $ | 12.8 |
| | $ | 1.0 |
| | $ | 1.4 |
| | $ | 1.3 |
| | $ | 3.8 |
| | $ | 20.3 |
|
Charges | 7.7 |
| | — |
| | — |
| | 1.9 |
| | 2.6 |
| | 12.2 |
|
Utilizations | (5.4 | ) | | (0.3 | ) | | (1.4 | ) | | (0.7 | ) | | (0.7 | ) | | (8.5 | ) |
Balance as of December 31, 2011 | $ | 15.1 |
| | $ | 0.7 |
| | $ | — |
| | $ | 2.5 |
| | $ | 5.7 |
| | $ | 24.0 |
|
Charges / (Reversals) | 3.5 |
| | 1.6 |
| | 0.5 |
| | (1.2 | ) | | (1.0 | ) | | 3.4 |
|
Utilizations | (10.0 | ) | | (0.7 | ) | | (0.5 | ) | | (0.8 | ) | | (1.9 | ) | | (13.9 | ) |
Balance as of December 31, 2012 | $ | 8.6 |
| | $ | 1.6 |
| | $ | — |
| | $ | 0.5 |
| | $ | 2.8 |
| | $ | 13.5 |
|
At December 31, 2012 and 2011, $5.8 million and $12.6 million, respectively, of the restructuring liabilities were included in “Other current liabilities,” and $7.7 million and $11.4 million, respectively, were included in "Other noncurrent liabilities," in the Consolidated Balance Sheets.
