Investment In Cellular Partnership

6 Months Ended

Jun. 30, 2012

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN CELLULAR PARTNERSHIP

On July 1, 2011, the Company completed the sale of its 33.8% limited partnership interest in the Cincinnati SMSA Limited Partnership and its 45.0% limited partnership interest in the Cincinnati SMSA Tower Holdings LLC (collectively referred to as the "Cellular Partnerships") to AT&T. AT&T is the general and a limited partner of both Cincinnati SMSA Limited Partnership and Cincinnati SMSA Tower Holdings LLC with a partnership interest prior to Convergys' sale of its interests of approximately 66% and 53%, respectively. The Company received $320.0 in cash proceeds upon closing. The Company's interests in the Cellular Partnerships did not qualify as discontinued operations; therefore, the gain has been reported within income from continuing operations, and no reclassification of prior results has been made. The pre-tax gain on sale of its interests in the Cellular Partnerships was $265.0, or $171.8 net of tax.

Since the Cellular Partnerships were organized as limited partnerships, the partners are responsible for income taxes applicable to their share of taxable income generated by the Cellular Partnerships. The net income of the Cincinnati SMSA Limited Partnership reflected in the following table does not include any provision for income taxes incurred by the partners.



	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenues	$	—	$	184.8	$	—	$	359.8
Income from operations	—		28.8		—		61.2
Net income	—		28.6		—		60.8

We accounted for our interest in the Cellular Partnerships under the equity method of accounting prior to the sale. The Company’s equity in earnings of equity method investees for the three and six months ended June 30, 2011, respectively, is as follows:



	Three Months Ended June 30,					Six Months Ended June 30,
	2012		2011			2012		2011
Convergys’ equity in earnings of Cincinnati SMSA Limited Partnership	$	—	$	10.6		$	—	$	20.5
Convergys’ equity in earnings of Cincinnati SMSA Tower Holdings LLC	—		0.6			—		0.9
Transaction costs related to the sale of Convergys' interest in Cellular Partnerships	—		(1.2		)	—		(1.2		)
Total earnings from Cellular Partnerships, net	$	—	$	10.0		$	—	$	20.2

- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

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