x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | 31-1056105 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | o | |
Non-accelerated filer | o | Smaller reporting company | o |
Form 10-q Part I | Cincinnati Bell Inc. |
Page | ||
Item 1. | Financial Statements | |
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | Defaults upon Senior Securities – None | |
Item 5. | Other Information – No reportable items | |
Item 6. | ||
Form 10-q Part I | Cincinnati Bell Inc. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
Revenue | |||||||||||||||
Services | $ | 314.8 | $ | 294.1 | $ | 626.2 | $ | 583.9 | |||||||
Products | 52.7 | 44.5 | 102.1 | 78.4 | |||||||||||
Total revenue | 367.5 | 338.6 | 728.3 | 662.3 | |||||||||||
Costs and expenses | |||||||||||||||
Cost of services, excluding items below | 114.8 | 99.5 | 225.5 | 196.9 | |||||||||||
Cost of products sold, excluding items below | 54.2 | 46.5 | 102.7 | 83.0 | |||||||||||
Selling, general and administrative | 66.6 | 67.2 | 131.2 | 134.4 | |||||||||||
Depreciation and amortization | 48.8 | 41.3 | 97.2 | 81.5 | |||||||||||
Restructuring charges | — | 5.2 | — | 5.2 | |||||||||||
Curtailment loss | 4.2 | — | 4.2 | — | |||||||||||
Acquisition costs | 0.8 | 9.1 | 1.9 | 9.1 | |||||||||||
Asset impairment | 0.5 | — | 1.6 | — | |||||||||||
Total operating costs and expenses | 289.9 | 268.8 | 564.3 | 510.1 | |||||||||||
Operating income | 77.6 | 69.8 | 164.0 | 152.2 | |||||||||||
Interest expense | 53.4 | 42.4 | 107.9 | 79.5 | |||||||||||
Loss on extinguishment of debt | — | 10.4 | — | 10.4 | |||||||||||
Other expense, net | — | 0.2 | — | 0.1 | |||||||||||
Income before income taxes | 24.2 | 16.8 | 56.1 | 62.2 | |||||||||||
Income tax expense | 10.7 | 7.2 | 24.7 | 29.8 | |||||||||||
Net income | 13.5 | 9.6 | 31.4 | 32.4 | |||||||||||
Preferred stock dividends | 2.6 | 2.6 | 5.2 | 5.2 | |||||||||||
Net income applicable to common shareowners | $ | 10.9 | $ | 7.0 | $ | 26.2 | $ | 27.2 | |||||||
Basic earnings per common share | $ | 0.06 | $ | 0.03 | $ | 0.13 | $ | 0.14 | |||||||
Diluted earnings per common share | $ | 0.05 | $ | 0.03 | $ | 0.13 | $ | 0.13 |
Form 10-q Part I | Cincinnati Bell Inc. |
June 30, 2011 | December 31, 2010 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 90.1 | $ | 77.3 | |||
Receivables, less allowances of $11.8 and $14.0 | 180.0 | 184.2 | |||||
Inventory, materials and supplies | 18.6 | 20.9 | |||||
Deferred income taxes, net | 33.3 | 29.6 | |||||
Prepaid expenses | 14.5 | 10.0 | |||||
Other current assets | 3.2 | 0.9 | |||||
Total current assets | 339.7 | 322.9 | |||||
Property, plant and equipment, net | 1,296.1 | 1,264.4 | |||||
Goodwill | 341.7 | 341.7 | |||||
Intangible assets, net | 226.3 | 236.0 | |||||
Deferred income taxes, net | 390.1 | 422.2 | |||||
Other noncurrent assets | 64.6 | 66.4 | |||||
Total assets | $ | 2,658.5 | $ | 2,653.6 | |||
Liabilities and Shareowners’ Deficit | |||||||
Current liabilities | |||||||
Current portion of long-term debt | $ | 17.5 | $ | 16.5 | |||
Accounts payable | 95.6 | 110.2 | |||||
Unearned revenue and customer deposits | 49.3 | 48.1 | |||||
Accrued taxes | 14.5 | 13.5 | |||||
Accrued interest | 45.8 | 46.6 | |||||
Accrued payroll and benefits | 48.0 | 49.0 | |||||
Other current liabilities | 38.5 | 44.8 | |||||
Total current liabilities | 309.2 | 328.7 | |||||
Long-term debt, less current portion | 2,506.9 | 2,507.1 | |||||
Pension and postretirement benefit obligations | 310.5 | 333.1 | |||||
Other noncurrent liabilities | 165.5 | 152.5 | |||||
Total liabilities | 3,292.1 | 3,321.4 | |||||
Shareowners’ deficit | |||||||
Preferred stock, 2,357,299 shares authorized, 155,250 shares (3,105,000 depositary shares) of 6 3/4% Cumulative Convertible Preferred Stock issued and outstanding at June 30, 2011 and December 31, 2010; liquidation preference $1,000 per share ($50 per depositary share) | 129.4 | 129.4 | |||||
Common shares, $.01 par value; 480,000,000 shares authorized; 199,418,167 and 198,354,851 shares issued; 198,904,592 and 197,841,276 outstanding at June 30, 2011 and December 31, 2010 | 2.0 | 2.0 | |||||
Additional paid-in capital | 2,597.7 | 2,601.5 | |||||
Accumulated deficit | (3,207.2 | ) | (3,238.6 | ) | |||
Accumulated other comprehensive loss | (153.4 | ) | (160.0 | ) | |||
Common shares in treasury, at cost | (2.1 | ) | (2.1 | ) | |||
Total shareowners’ deficit | (633.6 | ) | (667.8 | ) | |||
Total liabilities and shareowners’ deficit | $ | 2,658.5 | $ | 2,653.6 |
Form 10-q Part I | Cincinnati Bell Inc. |
Six Months Ended | |||||||
June 30, | |||||||
2011 | 2010 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 31.4 | $ | 32.4 | |||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||
Depreciation and amortization | 97.2 | 81.5 | |||||
Loss on extinguishment of debt | — | 10.4 | |||||
Provision for loss on receivables | 6.7 | 8.0 | |||||
Impairment loss | 1.6 | — | |||||
Noncash portion of interest expense | 3.7 | 2.8 | |||||
Deferred income tax provision | 24.6 | 26.4 | |||||
Pension and other postretirement benefits | (12.1 | ) | (1.0 | ) | |||
Other, net | 0.4 | 0.4 | |||||
Changes in operating assets and liabilities, net of effects of acquisitions | |||||||
Increase in receivables | (2.6 | ) | (4.5 | ) | |||
(Increase) decrease in inventory, materials, supplies, prepaids and other current assets | (2.8 | ) | 12.2 | ||||
Decrease in accounts payable | (16.4 | ) | (18.9 | ) | |||
Decrease in accrued and other current liabilities | (7.6 | ) | (18.9 | ) | |||
Increase in other noncurrent assets | (0.4 | ) | (2.8 | ) | |||
Decrease in other noncurrent liabilities | (5.8 | ) | (2.6 | ) | |||
Net cash provided by operating activities | 117.9 | 125.4 | |||||
Cash flows from investing activities | |||||||
Capital expenditures | (92.5 | ) | (58.2 | ) | |||
Acquisitions, net of cash acquired | — | (525.0 | ) | ||||
Other, net | (0.2 | ) | 0.4 | ||||
Net cash used in investing activities | (92.7 | ) | (582.8 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from issuance of long-term debt | — | 1,351.3 | |||||
Increase (decrease) in corporate credit and receivables facilities, net | 0.4 | (75.9 | ) | ||||
Repayment of debt | (6.2 | ) | (785.1 | ) | |||
Debt issuance costs | (0.8 | ) | (32.7 | ) | |||
Dividends paid on preferred stock | (5.2 | ) | (5.2 | ) | |||
Other, net | (0.6 | ) | (0.9 | ) | |||
Net cash (used in) provided by financing activities | (12.4 | ) | 451.5 | ||||
Net increase (decrease) in cash and cash equivalents | 12.8 | (5.9 | ) | ||||
Cash and cash equivalents at beginning of year | 77.3 | 23.0 | |||||
Cash and cash equivalents at end of period | $ | 90.1 | $ | 17.1 | |||
Noncash investing and financing transactions: | |||||||
Acquisition of property by assuming debt and other noncurrent liabilities | $ | 23.6 | $ | 16.7 | |||
Acquisition of property on account | 13.5 | 16.2 |
Form 10-q Part I | Cincinnati Bell Inc. |
1. | Description of Business and Accounting Policies |
Form 10-q Part I | Cincinnati Bell Inc. |
2. | Acquisition of Cyrus Networks, LLC |
Three Months Ended | Six Months Ended | ||||||
(dollars in millions, except per share amounts) | June 30, 2010 | June 30, 2010 | |||||
Revenue | $ | 352.8 | $ | 693.9 | |||
Net income | 11.3 | 28.0 | |||||
Earnings per share: | |||||||
Basic and diluted earnings per common share | $ | 0.04 | $ | 0.11 |
Form 10-q Part I | Cincinnati Bell Inc. |
3. | Earnings Per Common Share |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(in millions, except per share amounts) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Numerator: | |||||||||||||||
Net income | $ | 13.5 | $ | 9.6 | $ | 31.4 | $ | 32.4 | |||||||
Preferred stock dividends | 2.6 | 2.6 | 5.2 | 5.2 | |||||||||||
Income available to common shareholders - basic and diluted | $ | 10.9 | $ | 7.0 | $ | 26.2 | $ | 27.2 | |||||||
Denominator: | |||||||||||||||
Weighted average common shares outstanding - basic | 198.0 | 201.0 | 197.9 | 200.9 | |||||||||||
Warrants | 0.2 | 1.6 | 0.1 | 1.3 | |||||||||||
Stock-based compensation arrangements | 2.8 | 3.1 | 2.7 | 3.0 | |||||||||||
Weighted average common shares outstanding - diluted | 201.0 | 205.7 | 200.7 | 205.2 | |||||||||||
Basic earnings per common share | $ | 0.06 | $ | 0.03 | $ | 0.13 | $ | 0.14 | |||||||
Diluted earnings per common share | $ | 0.05 | $ | 0.03 | $ | 0.13 | $ | 0.13 |
4. | Comprehensive Income |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(dollars in millions) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Net income | $ | 13.5 | $ | 9.6 | $ | 31.4 | $ | 32.4 | |||||||
Other comprehensive income, net of tax: | |||||||||||||||
Defined benefit pension and postretirement plans: | |||||||||||||||
Net gain arising during the period, net of tax of $0.9 | 1.4 | — | 1.4 | — | |||||||||||
Amortization of prior service benefits included in net income, | |||||||||||||||
net of tax of $(1.2), $(1.2), $(2.4), $(2.4) | (2.0 | ) | (2.0 | ) | (4.0 | ) | (4.0 | ) | |||||||
Amortization of net loss included in net income, net of tax of $1.8, $1.3, $3.8, $2.6 | 3.3 | 2.3 | 6.5 | 4.6 | |||||||||||
Reclassification adjustment for curtailment loss included in net income, | |||||||||||||||
net of tax of $1.5 | 2.7 | — | 2.7 | — | |||||||||||
Other comprehensive income | 5.4 | 0.3 | 6.6 | 0.6 | |||||||||||
Total comprehensive income | $ | 18.9 | $ | 9.9 | $ | 38.0 | $ | 33.0 |
Form 10-q Part I | Cincinnati Bell Inc. |
5. | Debt |
(dollars in millions) | June 30, 2011 | December 31, 2010 | |||||
Current portion of long-term debt: | |||||||
Capital lease obligations and other debt | $ | 17.5 | $ | 16.5 | |||
Current portion of long-term debt | 17.5 | 16.5 | |||||
Long-term debt, less current portion: | |||||||
7% Senior Notes due 2015* | 250.9 | 251.4 | |||||
8 1/4% Senior Notes due 2017 | 500.0 | 500.0 | |||||
8 3/4% Senior Subordinated Notes due 2018 | 625.0 | 625.0 | |||||
8 3/8% Senior Notes due 2020 | 775.0 | 775.0 | |||||
7 1/4% Senior Notes due 2023 | 40.0 | 40.0 | |||||
Various Cincinnati Bell Telephone notes | 207.5 | 207.5 | |||||
Capital lease obligations and other debt | 118.0 | 118.5 | |||||
2,516.4 | 2,517.4 | ||||||
Net unamortized discount | (9.5 | ) | (10.3 | ) | |||
Long-term debt, less current portion | 2,506.9 | 2,507.1 | |||||
Total debt | $ | 2,524.4 | $ | 2,523.6 |
6. | Financial Instruments |
June 30, 2011 | December 31, 2010 | ||||||||||||||
(dollars in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Long-term debt, including current portion | $ | 2,524.4 | $ | 2,466.6 | $ | 2,523.6 | $ | 2,416.9 |
Form 10-q Part I | Cincinnati Bell Inc. |
7. | Restructuring Charges |
(dollars in millions): | Employee Separation | Lease Abandonment | Other | Total | |||||||||||
Beginning balance (December 31, 2010) | $ | 11.7 | $ | 7.2 | $ | 1.4 | $ | 20.3 | |||||||
Utilizations | (3.2 | ) | (0.4 | ) | (1.4 | ) | (5.0 | ) | |||||||
First quarter balance (March 31, 2011) | $ | 8.5 | $ | 6.8 | $ | — | $ | 15.3 | |||||||
Utilizations | (1.1 | ) | (0.5 | ) | — | (1.6 | ) | ||||||||
Ending balance (June 30, 2011) | $ | 7.4 | $ | 6.3 | $ | — | $ | 13.7 |
(dollars in millions): | June 30, 2011 | December 31, 2010 | |||||
Wireline | $ | 6.1 | $ | 9.4 | |||
Wireless | 0.6 | 0.8 | |||||
Data Center Colocation | — | — | |||||
IT Services and Hardware | 0.7 | 1.3 | |||||
Corporate | — | 0.2 | |||||
$ | 7.4 | $ | 11.7 |
Form 10-q Part I | Cincinnati Bell Inc. |
8. | Pension and Postretirement Plans |
Three Months Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(dollars in millions) | Pension Benefits | Postretirement and Other Benefits | |||||||||||||
Service cost | $ | 1.3 | $ | 1.3 | $ | 0.1 | $ | 0.1 | |||||||
Interest cost on projected benefit obligation | 6.2 | 6.7 | 1.8 | 2.0 | |||||||||||
Expected return on plan assets | (7.3 | ) | (7.5 | ) | — | — | |||||||||
Amortization of: | |||||||||||||||
Prior service cost (benefit) | 0.1 | 0.1 | (3.3 | ) | (3.3 | ) | |||||||||
Actuarial loss | 3.5 | 2.3 | 1.6 | 1.3 | |||||||||||
Curtailment loss | 4.2 | — | — | — | |||||||||||
Benefit costs | $ | 8.0 | $ | 2.9 | $ | 0.2 | $ | 0.1 |
Six Months Ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||
(dollars in millions) | Pension Benefits | Postretirement and Other Benefits | |||||||||||||
Service cost | $ | 2.6 | $ | 2.6 | $ | 0.2 | $ | 0.2 | |||||||
Interest cost on projected benefit obligation | 12.4 | 13.4 | 3.6 | 4.0 | |||||||||||
Expected return on plan assets | (14.6 | ) | (15.0 | ) | — | — | |||||||||
Amortization of: | |||||||||||||||
Prior service cost (benefit) | 0.2 | 0.2 | (6.6 | ) | (6.6 | ) | |||||||||
Actuarial loss | 7.1 | 4.6 | 3.2 | 2.6 | |||||||||||
Curtailment loss | 4.2 | — | — | — | |||||||||||
Benefit costs | $ | 11.9 | $ | 5.8 | $ | 0.4 | $ | 0.2 |
Form 10-q Part I | Cincinnati Bell Inc. |
9. | Stock-Based Compensation Plans |
10. | Business Segment Information |
Form 10-q Part I | Cincinnati Bell Inc. |
Three Months Ended | Six Months Ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
(dollars in millions) | 2011 | 2010 | 2011 | 2010 | |||||||||||
Revenue | |||||||||||||||
Wireline | $ | 185.2 | $ | 186.7 | $ | 369.1 | $ | 374.4 | |||||||
Wireless | 69.7 | 73.7 | 141.1 | 146.9 | |||||||||||
Data Center Colocation | 45.1 | 24.7 | 88.5 | 44.7 | |||||||||||
IT Services and Hardware | 75.7 | 62.3 | 146.0 | 113.9 | |||||||||||
Intersegment | (8.2 | ) | (8.8 | ) | (16.4 | ) | (17.6 | ) | |||||||
Total revenue | $ | 367.5 | $ | 338.6 | $ | 728.3 | $ | 662.3 | |||||||
Intersegment revenue | |||||||||||||||
Wireline | $ | 5.8 | $ | 6.2 | $ | 11.6 | $ | 12.5 | |||||||
Wireless | 0.5 | 0.7 | 1.1 | 1.4 | |||||||||||
Data Center Colocation | 0.5 | 0.4 | 1.1 | 0.9 | |||||||||||
IT Services and Hardware | 1.4 | 1.5 | 2.6 | 2.8 | |||||||||||
Total intersegment revenue | $ | 8.2 | $ | 8.8 | $ | 16.4 | $ | 17.6 | |||||||
Operating income | |||||||||||||||
Wireline | $ | 55.4 | $ | 59.0 | $ | 115.0 | $ | 122.1 | |||||||
Wireless | 15.2 | 18.8 | 31.5 | 36.5 | |||||||||||
Data Center Colocation | 12.8 | 7.3 | 24.8 | 14.0 | |||||||||||
IT Services and Hardware | 1.5 | (2.2 | ) | 4.7 | (1.5 | ) | |||||||||
Corporate | (7.3 | ) | (13.1 | ) | (12.0 | ) | (18.9 | ) | |||||||
Total operating income | $ | 77.6 | $ | 69.8 | $ | 164.0 | $ | 152.2 | |||||||
Expenditures for long-lived assets | |||||||||||||||
Wireline | $ | 22.6 | $ | 22.4 | $ | 48.1 | $ | 43.1 | |||||||
Wireless | 0.9 | 2.2 | 5.7 | 4.4 | |||||||||||
Data Center Colocation | 14.6 | 3.1 | 36.2 | 5.5 | |||||||||||
IT Services and Hardware | 2.0 | 3.2 | 2.5 | 5.2 | |||||||||||
Total expenditure for long-lived assets | $ | 40.1 | $ | 30.9 | $ | 92.5 | $ | 58.2 | |||||||
Depreciation and amortization | |||||||||||||||
Wireline | $ | 25.1 | $ | 25.5 | $ | 50.5 | $ | 50.9 | |||||||
Wireless | 8.4 | 8.3 | 17.1 | 17.3 | |||||||||||
Data Center Colocation | 13.0 | 5.7 | 25.0 | 9.8 | |||||||||||
IT Services and Hardware | 2.2 | 1.7 | 4.4 | 3.3 | |||||||||||
Corporate and eliminations | 0.1 | 0.1 | 0.2 | 0.2 | |||||||||||
Total depreciation and amortization | $ | 48.8 | $ | 41.3 | $ | 97.2 | $ | 81.5 | |||||||
June 30, 2011 | December 31, 2010 | ||||||||||||||
Assets | |||||||||||||||
Wireline | $ | 695.8 | $ | 694.1 | |||||||||||
Wireless | 347.2 | 359.3 | |||||||||||||
Data Center Colocation | 883.3 | 857.2 | |||||||||||||
IT Services and Hardware | 34.6 | 34.7 | |||||||||||||
Corporate and eliminations | 697.6 | 708.3 | |||||||||||||
Total assets | $ | 2,658.5 | $ | 2,653.6 |
Form 10-q Part I | Cincinnati Bell Inc. |
11. | Supplemental Guarantor Information |
Condensed Consolidating Statements of Operations | |||||||||||||||||||
Three Months Ended June 30, 2011 | |||||||||||||||||||
(dollars in millions) | Parent (Guarantor) | CBT (Issuer) | Other Non-guarantors | Eliminations | Total | ||||||||||||||
Revenue | $ | — | $ | 165.6 | $ | 216.3 | $ | (14.4 | ) | $ | 367.5 | ||||||||
Operating costs and expenses | 7.0 | 110.8 | 186.5 | (14.4 | ) | 289.9 | |||||||||||||
Operating income (loss) | (7.0 | ) | 54.8 | 29.8 | — | 77.6 | |||||||||||||
Interest expense | 47.1 | 3.5 | 15.4 | (12.6 | ) | 53.4 | |||||||||||||
Other expense (income), net | (10.6 | ) | (0.7 | ) | (1.3 | ) | 12.6 | — | |||||||||||
Income (loss) before equity in earnings of subsidiaries and income taxes | (43.5 | ) | 52.0 | 15.7 | — | 24.2 | |||||||||||||
Income tax expense (benefit) | (15.6 | ) | 19.6 | 6.7 | — | 10.7 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 41.4 | — | — | (41.4 | ) | — | |||||||||||||
Net income | 13.5 | 32.4 | 9.0 | (41.4 | ) | 13.5 | |||||||||||||
Preferred stock dividends | 2.6 | — | — | — | 2.6 | ||||||||||||||
Net income applicable to common shareowners | $ | 10.9 | $ | 32.4 | $ | 9.0 | $ | (41.4 | ) | $ | 10.9 | ||||||||
Three Months Ended June 30, 2010 | |||||||||||||||||||
Parent (Guarantor) | CBT (Issuer) | Other Non-guarantors | Eliminations | Total | |||||||||||||||
Revenue | $ | — | $ | 168.0 | $ | 185.0 | $ | (14.4 | ) | $ | 338.6 | ||||||||
Operating costs and expenses | 13.4 | 109.4 | 160.4 | (14.4 | ) | 268.8 | |||||||||||||
Operating income (loss) | (13.4 | ) | 58.6 | 24.6 | — | 69.8 | |||||||||||||
Interest expense | 36.6 | 2.9 | 4.9 | (2.0 | ) | 42.4 | |||||||||||||
Other expense (income), net | 8.2 | 1.9 | (1.5 | ) | 2.0 | 10.6 | |||||||||||||
Income (loss) before equity in earnings of subsidiaries and income taxes | (58.2 | ) | 53.8 | 21.2 | — | 16.8 | |||||||||||||
Income tax expense (benefit) | (15.1 | ) | 22.3 | — | — | 7.2 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 52.7 | — | — | (52.7 | ) | — | |||||||||||||
Net income | 9.6 | 31.5 | 21.2 | (52.7 | ) | 9.6 | |||||||||||||
Preferred stock dividends | 2.6 | — | — | — | 2.6 | ||||||||||||||
Net income applicable to common shareowners | $ | 7.0 | $ | 31.5 | $ | 21.2 | $ | (52.7 | ) | $ | 7.0 |
Form 10-q Part I | Cincinnati Bell Inc. |
Condensed Consolidating Statements of Operations | |||||||||||||||||||
Six Months Ended June 30, 2011 | |||||||||||||||||||
(dollars in millions) | Parent (Guarantor) | CBT (Issuer) | Other Non-guarantors | Eliminations | Total | ||||||||||||||
Revenue | $ | — | $ | 329.4 | $ | 427.3 | $ | (28.4 | ) | $ | 728.3 | ||||||||
Operating costs and expenses | 13.0 | 215.5 | 364.2 | (28.4 | ) | 564.3 | |||||||||||||
Operating income (loss) | (13.0 | ) | 113.9 | 63.1 | — | 164.0 | |||||||||||||
Interest expense | 95.2 | 7.0 | 31.2 | (25.5 | ) | 107.9 | |||||||||||||
Other expense (income), net | (22.1 | ) | (0.4 | ) | (3.0 | ) | 25.5 | — | |||||||||||
Income (loss) before equity in earnings of subsidiaries and income taxes | (86.1 | ) | 107.3 | 34.9 | — | 56.1 | |||||||||||||
Income tax expense (benefit) | (28.9 | ) | 40.5 | 13.1 | — | 24.7 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 88.6 | — | — | (88.6 | ) | — | |||||||||||||
Net income | 31.4 | 66.8 | 21.8 | (88.6 | ) | 31.4 | |||||||||||||
Preferred stock dividends | 5.2 | — | — | — | 5.2 | ||||||||||||||
Net income applicable to common shareowners | $ | 26.2 | $ | 66.8 | $ | 21.8 | $ | (88.6 | ) | $ | 26.2 | ||||||||
Six Months Ended June 30, 2010 | |||||||||||||||||||
Parent (Guarantor) | CBT (Issuer) | Other Non-guarantors | Eliminations | Total | |||||||||||||||
Revenue | $ | — | $ | 337.6 | $ | 353.6 | $ | (28.9 | ) | $ | 662.3 | ||||||||
Operating costs and expenses | 19.1 | 215.5 | 304.4 | (28.9 | ) | 510.1 | |||||||||||||
Operating income (loss) | (19.1 | ) | 122.1 | 49.2 | — | 152.2 | |||||||||||||
Interest expense | 67.7 | 6.3 | 9.5 | (4.0 | ) | 79.5 | |||||||||||||
Other expense (income), net | 5.7 | 3.6 | (2.8 | ) | 4.0 | 10.5 | |||||||||||||
Income (loss) before equity in earnings of subsidiaries and income taxes | (92.5 | ) | 112.2 | 42.5 | — | 62.2 | |||||||||||||
Income tax expense (benefit) | (24.7 | ) | 46.6 | 7.9 | — | 29.8 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 100.2 | — | — | (100.2 | ) | — | |||||||||||||
Net income | 32.4 | 65.6 | 34.6 | (100.2 | ) | 32.4 | |||||||||||||
Preferred stock dividends | 5.2 | — | — | — | 5.2 | ||||||||||||||
Net income applicable to common shareowners | $ | 27.2 | $ | 65.6 | $ | 34.6 | $ | (100.2 | ) | $ | 27.2 |
Form 10-q Part I | Cincinnati Bell Inc. |
Condensed Consolidating Balance Sheets | ||||||||||||||||||||
As of June 30, 2011 | ||||||||||||||||||||
(dollars in millions) | Parent (Guarantor) | CBT (Issuer) | Other Non-guarantors | Eliminations | Total | |||||||||||||||
Cash and cash equivalents | $ | 86.2 | 1.3 | $ | 1.5 | $ | 2.4 | $ | — | $ | 90.1 | |||||||||
Receivables, net | 2.0 | — | — | 178.0 | — | 180.0 | ||||||||||||||
Other current assets | 8.1 | 28.2 | 29.0 | 36.4 | (3.9 | ) | 69.6 | |||||||||||||
Total current assets | 96.3 | 30.5 | 216.8 | (3.9 | ) | 339.7 | ||||||||||||||
Property, plant and equipment, net | 0.3 | 622.2 | 624.3 | 671.5 | — | 1,296.1 | ||||||||||||||
Goodwill and intangibles, net | — | 2.6 | 2.5 | 565.5 | — | 568.0 | ||||||||||||||
Investments in and advances to subsidiaries | 1,719.4 | 179.3 | 220.8 | — | (1,940.2 | ) | — | |||||||||||||
Other noncurrent assets | 359.5 | 8.9 | 8.4 | 224.4 | (137.6 | ) | 454.7 | |||||||||||||
Total assets | $ | 2,175.5 | $ | 886.5 | $ | 1,678.2 | $ | (2,081.7 | ) | $ | 2,658.5 | |||||||||
Current portion of long-term debt | $ | — | $ | 2.3 | $ | 15.2 | $ | — | $ | 17.5 | ||||||||||
Accounts payable | 0.6 | 42.2 | 52.8 | — | 95.6 | |||||||||||||||
Other current liabilities | 88.2 | 52.0 | 55.1 | 0.8 | 196.1 | |||||||||||||||
Total current liabilities | 88.8 | 96.5 | 123.1 | 0.8 | 309.2 | |||||||||||||||
Long-term debt, less current portion | 2,181.7 | 213.7 | 111.5 | — | 2,506.9 | |||||||||||||||
Other noncurrent liabilities | 321.4 | 105.9 | 191.0 | (142.3 | ) | 476.0 | ||||||||||||||
Intercompany payables | 217.2 | — | 588.9 | (806.1 | ) | — | ||||||||||||||
Total liabilities | 2,809.1 | 416.1 | 1,014.5 | (947.6 | ) | 3,292.1 | ||||||||||||||
Shareowners’ equity (deficit) | (633.6 | ) | 470.4 | 663.7 | (1,134.1 | ) | (633.6 | ) | ||||||||||||
Total liabilities and shareowners’ equity (deficit) | $ | 2,175.5 | $ | 886.5 | $ | 1,678.2 | $ | (2,081.7 | ) | $ | 2,658.5 | |||||||||
As of December 31, 2010 | ||||||||||||||||||||
Parent (Guarantor) | CBT (Issuer) | Other Non-guarantors | Eliminations | Total | ||||||||||||||||
Cash and cash equivalents | $ | 69.8 | $ | 1.8 | $ | 5.7 | $ | — | $ | 77.3 | ||||||||||
Receivables, net | 2.4 | 0.9 | 180.9 | — | 184.2 | |||||||||||||||
Other current assets | 6.4 | 22.5 | 39.0 | (6.5 | ) | 61.4 | ||||||||||||||
Total current assets | 78.6 | 25.2 | 225.6 | (6.5 | ) | 322.9 | ||||||||||||||
Property, plant and equipment, net | 0.5 | 623.7 | 640.2 | — | 1,264.4 | |||||||||||||||
Goodwill and intangibles, net | — | 2.6 | 575.1 | — | 577.7 | |||||||||||||||
Investments in and advances to subsidiaries | 1,648.2 | 146.5 | — | (1,794.7 | ) | — | ||||||||||||||
Other noncurrent assets | 363.3 | 9.5 | 218.2 | (102.4 | ) | 488.6 | ||||||||||||||
Total assets | $ | 2,090.6 | $ | 807.5 | $ | 1,659.1 | $ | (1,903.6 | ) | $ | 2,653.6 | |||||||||
Current portion of long-term debt | $ | — | $ | 2.2 | $ | 14.3 | $ | — | $ | 16.5 | ||||||||||
Accounts payable | 2.2 | 45.8 | 62.2 | — | 110.2 | |||||||||||||||
Other current liabilities | 89.1 | 52.3 | 64.6 | (4.0 | ) | 202.0 | ||||||||||||||
Total current liabilities | 91.3 | 100.3 | 141.1 | (4.0 | ) | 328.7 | ||||||||||||||
Long-term debt, less current portion | 2,181.4 | 214.1 | 111.6 | — | 2,507.1 | |||||||||||||||
Other noncurrent liabilities | 344.6 | 89.1 | 156.8 | (104.9 | ) | 485.6 | ||||||||||||||
Intercompany payables | 141.1 | — | 612.5 | (753.6 | ) | — | ||||||||||||||
Total liabilities | 2,758.4 | 403.5 | 1,022.0 | (862.5 | ) | 3,321.4 | ||||||||||||||
Shareowners’ equity (deficit) | (667.8 | ) | 404.0 | 637.1 | (1,041.1 | ) | (667.8 | ) | ||||||||||||
Total liabilities and shareowners’ equity (deficit) | $ | 2,090.6 | $ | 807.5 | $ | 1,659.1 | $ | (1,903.6 | ) | $ | 2,653.6 |
Form 10-q Part I | Cincinnati Bell Inc. |
Six Months Ended June 30, 2011 | |||||||||||||||||||
(dollars in millions) | Parent (Guarantor) | CBT (Issuer) | Other Non-guarantors | Eliminations | Total | ||||||||||||||
Cash flows provided by (used in) operating activities | $ | (70.4 | ) | $ | 120.3 | $ | 68.0 | $ | — | $ | 117.9 | ||||||||
Capital expenditures | — | (45.1 | ) | (47.4 | ) | — | (92.5 | ) | |||||||||||
Other investing activities | (0.2 | ) | — | — | — | (0.2 | ) | ||||||||||||
Cash flows used in investing activities | (0.2 | ) | (45.1 | ) | (47.4 | ) | — | (92.7 | ) | ||||||||||
Funding between Parent and subsidiaries, net | 93.6 | (74.4 | ) | (19.2 | ) | — | — | ||||||||||||
Increase in receivables facility,net | — | — | 0.4 | — | 0.4 | ||||||||||||||
Repayment of debt | — | (1.1 | ) | (5.1 | ) | — | (6.2 | ) | |||||||||||
Other financing activities | (6.6 | ) | — | — | — | (6.6 | ) | ||||||||||||
Cash flows provided by (used in) financing activities | 87.0 | (75.5 | ) | (23.9 | ) | — | (12.4 | ) | |||||||||||
Increase (decrease) in cash and cash equivalents | 16.4 | (0.3 | ) | (3.3 | ) | — | 12.8 | ||||||||||||
Beginning cash and cash equivalents | 69.8 | 1.8 | 5.7 | — | 77.3 | ||||||||||||||
Ending cash and cash equivalents | $ | 86.2 | $ | 1.5 | $ | 2.4 | $ | — | $ | 90.1 | |||||||||
Six Months Ended June 30, 2010 | |||||||||||||||||||
Parent (Guarantor) | CBT (Issuer) | Other Non-guarantors | Eliminations | Total | |||||||||||||||
Cash flows provided by (used in) operating activities | $ | (38.1 | ) | $ | 109.9 | $ | 53.6 | $ | — | $ | 125.4 | ||||||||
Capital expenditures | — | (36.9 | ) | (21.3 | ) | — | (58.2 | ) | |||||||||||
Acquisitions of businesses | — | (0.1 | ) | (524.9 | ) | (525.0 | ) | ||||||||||||
Other investing activities | — | 0.2 | 0.2 | — | 0.4 | ||||||||||||||
Cash flows used in investing activities | — | (36.8 | ) | (546.0 | ) | — | (582.8 | ) | |||||||||||
Funding between Parent and subsidiaries, net | (501.6 | ) | (72.6 | ) | 574.2 | — | — | ||||||||||||
Proceeds from issuance of long-term debt, net of financing costs | 1,318.6 | — | — | 1,318.6 | |||||||||||||||
Decrease in receivables facility, net | — | — | (75.9 | ) | — | (75.9 | ) | ||||||||||||
Repayment of debt | (780.3 | ) | (0.7 | ) | (4.1 | ) | — | (785.1 | ) | ||||||||||
Other financing activities | (6.1 | ) | — | — | — | (6.1 | ) | ||||||||||||
Cash flows provided by (used in) financing activities | 30.6 | (73.3 | ) | 494.2 | — | 451.5 | |||||||||||||
Increase (decrease) in cash and cash equivalents | (7.5 | ) | (0.2 | ) | 1.8 | — | (5.9 | ) | |||||||||||
Beginning cash and cash equivalents | 20.1 | 2.1 | 0.8 | — | 23.0 | ||||||||||||||
Ending cash and cash equivalents | $ | 12.6 | $ | 1.9 | $ | 2.6 | $ | — | $ | 17.1 |
Form 10-q Part I | Cincinnati Bell Inc. |
Condensed Consolidating Statements of Operations | |||||||||||||||||||
Three Months Ended June 30, 2011 | |||||||||||||||||||
(dollars in millions) | Parent (Issuer) | Guarantors | Non-guarantors | Eliminations | Total | ||||||||||||||
Revenue | $ | — | $ | 230.1 | $ | 151.8 | $ | (14.4 | ) | $ | 367.5 | ||||||||
Operating costs and expenses | 7.0 | 200.0 | 97.3 | (14.4 | ) | 289.9 | |||||||||||||
Operating income (loss) | (7.0 | ) | 30.1 | 54.5 | — | 77.6 | |||||||||||||
Interest expense | 47.1 | 13.4 | 5.5 | (12.6 | ) | 53.4 | |||||||||||||
Other expense (income), net | (10.6 | ) | 2.8 | (4.8 | ) | 12.6 | — | ||||||||||||
Income (loss) before equity in earnings of subsidiaries and income taxes | (43.5 | ) | 13.9 | 53.8 | — | 24.2 | |||||||||||||
Income tax expense (benefit) | (15.6 | ) | 5.5 | 20.8 | — | 10.7 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 41.4 | — | — | (41.4 | ) | — | |||||||||||||
Net income | 13.5 | 8.4 | 33.0 | (41.4 | ) | 13.5 | |||||||||||||
Preferred stock dividends | 2.6 | — | — | — | 2.6 | ||||||||||||||
Net income applicable to common shareowners | $ | 10.9 | $ | 8.4 | $ | 33.0 | $ | (41.4 | ) | $ | 10.9 | ||||||||
Three Months Ended June 30, 2010 | |||||||||||||||||||
Parent (Issuer) | Guarantors | Non-guarantors | Eliminations | Total | |||||||||||||||
Revenue | $ | — | $ | 199.0 | $ | 154.0 | $ | (14.4 | ) | $ | 338.6 | ||||||||
Operating costs and expenses | 13.4 | 173.6 | 96.2 | (14.4 | ) | 268.8 | |||||||||||||
Operating income (loss) | (13.4 | ) | 25.4 | 57.8 | — | 69.8 | |||||||||||||
Interest expense | 36.6 | 3.6 | 4.2 | (2.0 | ) | 42.4 | |||||||||||||
Other expense (income), net | 8.2 | 2.2 | (1.8 | ) | 2.0 | 10.6 | |||||||||||||
Income (loss) before equity in earnings of subsidiaries and income taxes | (58.2 | ) | 19.6 | 55.4 | — | 16.8 | |||||||||||||
Income tax expense (benefit) | (15.1 | ) | — | 22.3 | — | 7.2 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 52.7 | — | — | (52.7 | ) | — | |||||||||||||
Net income | 9.6 | 19.6 | 33.1 | (52.7 | ) | 9.6 | |||||||||||||
Preferred stock dividends | 2.6 | — | — | — | 2.6 | ||||||||||||||
Net income applicable to common shareowners | $ | 7.0 | $ | 19.6 | $ | 33.1 | $ | (52.7 | ) | $ | 7.0 |
Form 10-q Part I | Cincinnati Bell Inc. |
Condensed Consolidating Statements of Operations | |||||||||||||||||||
Six Months Ended June 30, 2011 | |||||||||||||||||||
(dollars in millions) | Parent (Issuer) | Guarantors | Non-guarantors | Eliminations | Total | ||||||||||||||
Revenue | $ | — | $ | 456.0 | $ | 300.7 | $ | (28.4 | ) | $ | 728.3 | ||||||||
Operating costs and expenses | 13.0 | 389.7 | 190.0 | (28.4 | ) | 564.3 | |||||||||||||
Operating income (loss) | (13.0 | ) | 66.3 | 110.7 | — | 164.0 | |||||||||||||
Interest expense | 95.2 | 27.0 | 11.2 | (25.5 | ) | 107.9 | |||||||||||||
Other expense (income), net | (22.1 | ) | 5.3 | (8.7 | ) | 25.5 | — | ||||||||||||
Income (loss) before equity in earnings of subsidiaries and income taxes | (86.1 | ) | 34.0 | 108.2 | — | 56.1 | |||||||||||||
Income tax expense (benefit) | (28.9 | ) | 12.5 | 41.1 | — | 24.7 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 88.6 | — | — | (88.6 | ) | — | |||||||||||||
Net income | 31.4 | 21.5 | 67.1 | (88.6 | ) | 31.4 | |||||||||||||
Preferred stock dividends | 5.2 | — | — | — | 5.2 | ||||||||||||||
Net income applicable to common shareowners | $ | 26.2 | $ | 21.5 | $ | 67.1 | $ | (88.6 | ) | $ | 26.2 | ||||||||
Six Months Ended June 30, 2010 | |||||||||||||||||||
Parent (Issuer) | Guarantors | Non-guarantors | Eliminations | Total | |||||||||||||||
Revenue | $ | — | $ | 382.0 | $ | 309.2 | $ | (28.9 | ) | $ | 662.3 | ||||||||
Operating costs and expenses | 19.1 | 331.8 | 188.1 | (28.9 | ) | 510.1 | |||||||||||||
Operating income (loss) | (19.1 | ) | 50.2 | 121.1 | — | 152.2 | |||||||||||||
Interest expense | 67.7 | 6.8 | 9.0 | (4.0 | ) | 79.5 | |||||||||||||
Other expense (income), net | 5.7 | 4.1 | (3.3 | ) | 4.0 | 10.5 | |||||||||||||
Income (loss) before equity in earnings of subsidiaries and income taxes | (92.5 | ) | 39.3 | 115.4 | — | 62.2 | |||||||||||||
Income tax expense (benefit) | (24.7 | ) | 7.2 | 47.3 | — | 29.8 | |||||||||||||
Equity in earnings of subsidiaries, net of tax | 100.2 | — | — | (100.2 | ) | — | |||||||||||||
Net income | 32.4 | 32.1 | 68.1 | (100.2 | ) | 32.4 | |||||||||||||
Preferred stock dividends | 5.2 | — | — | — | 5.2 | ||||||||||||||
Net income applicable to common shareowners | $ | 27.2 | $ | 32.1 | $ | 68.1 | $ | (100.2 | ) | $ | 27.2 |
Form 10-q Part I | Cincinnati Bell Inc. |
Condensed Consolidating Balance Sheets | |||||||||||||||||||
As of June 30, 2011 | |||||||||||||||||||
(dollars in millions) | Parent (Issuer) | Guarantors | Non-guarantors | Eliminations | Total | ||||||||||||||
Cash and cash equivalents | $ | 86.2 | $ | 2.1 | $ | 1.8 | $ | — | $ | 90.1 | |||||||||
Receivables, net | 2.0 | 4.1 | 173.9 | — | 180.0 | ||||||||||||||
Other current assets | 8.1 | 32.2 | 33.2 | (3.9 | ) | 69.6 | |||||||||||||
Total current assets | 96.3 | 38.4 | 208.9 | (3.9 | ) | 339.7 | |||||||||||||
Property, plant and equipment, net | 0.3 | 661.5 | 634.3 | — | 1,296.1 | ||||||||||||||
Goodwill and intangibles, net | — | 565.5 | 2.5 | — | 568.0 | ||||||||||||||
Investments in and advances to subsidiaries | 1,719.4 | — | 211.7 | (1,931.1 | ) | — | |||||||||||||
Other noncurrent assets | 359.5 | 225.2 | 7.6 | (137.6 | ) | 454.7 | |||||||||||||
Total assets | $ | 2,175.5 | $ | 1,490.6 | $ | 1,065.0 | $ | (2,072.6 | ) | $ | 2,658.5 | ||||||||
Current portion of long-term debt | $ | — | $ | 14.9 | $ | 2.6 | $ | — | $ | 17.5 | |||||||||
Accounts payable | 0.6 | 61.3 | 33.7 | — | 95.6 | ||||||||||||||
Other current liabilities | 88.2 | 58.4 | 48.7 | 0.8 | 196.1 | ||||||||||||||
Total current liabilities | 88.8 | 134.6 | 85.0 | 0.8 | 309.2 | ||||||||||||||
Long-term debt, less current portion | 2,181.7 | 111.5 | 213.7 | — | 2,506.9 | ||||||||||||||
Other noncurrent liabilities | 321.4 | 181.0 | 115.9 | (142.3 | ) | 476.0 | |||||||||||||
Intercompany payables | 217.2 | 457.3 | 145.2 | (819.7 | ) | — | |||||||||||||
Total liabilities | 2,809.1 | 884.4 | 559.8 | (961.2 | ) | 3,292.1 | |||||||||||||
Shareowners’ equity (deficit) | (633.6 | ) | 606.2 | 505.2 | (1,111.4 | ) | (633.6 | ) | |||||||||||
Total liabilities and shareowners’ equity (deficit) | $ | 2,175.5 | $ | 1,490.6 | $ | 1,065.0 | $ | (2,072.6 | ) | $ | 2,658.5 | ||||||||
As of December 31, 2010 | |||||||||||||||||||
Parent (Issuer) | Guarantors | Non-guarantors | Eliminations | Total | |||||||||||||||
Cash and cash equivalents | $ | 69.8 | $ | 5.7 | $ | 1.8 | $ | — | $ | 77.3 | |||||||||
Receivables, net | 2.4 | 11.2 | 170.6 | — | 184.2 | ||||||||||||||
Other current assets | 6.4 | 34.4 | 27.1 | (6.5 | ) | 61.4 | |||||||||||||
Total current assets | 78.6 | 51.3 | 199.5 | (6.5 | ) | 322.9 | |||||||||||||
Property, plant and equipment, net | 0.5 | 640.2 | 623.7 | — | 1,264.4 | ||||||||||||||
Goodwill and intangibles, net | — | 575.1 | 2.6 | — | 577.7 | ||||||||||||||
Investments in and advances to subsidiaries | 1,648.2 | — | 134.7 | (1,782.9 | ) | — | |||||||||||||
Other noncurrent assets | 363.3 | 219.5 | 8.2 | (102.4 | ) | 488.6 | |||||||||||||
Total assets | $ | 2,090.6 | $ | 1,486.1 | $ | 968.7 | $ | (1,891.8 | ) | $ | 2,653.6 | ||||||||
Current portion of long-term debt | $ | — | $ | 14.3 | $ | 2.2 | $ | — | $ | 16.5 | |||||||||
Accounts payable | 2.2 | 73.2 | 34.8 | — | 110.2 | ||||||||||||||
Other current liabilities | 89.1 | 68.1 | 48.8 | (4.0 | ) | 202.0 | |||||||||||||
Total current liabilities | 91.3 | 155.6 | 85.8 | (4.0 | ) | 328.7 | |||||||||||||
Long-term debt, less current portion | 2,181.4 | 111.6 | 214.1 | — | 2,507.1 | ||||||||||||||
Other noncurrent liabilities | 344.6 | 157.2 | 88.7 | (104.9 | ) | 485.6 | |||||||||||||
Intercompany payables | 141.1 | 476.7 | 148.1 | (765.9 | ) | — | |||||||||||||
Total liabilities | 2,758.4 | 901.1 | 536.7 | (874.8 | ) | 3,321.4 | |||||||||||||
Shareowners’ equity (deficit) | (667.8 | ) | 585.0 | 432.0 | (1,017.0 | ) | (667.8 | ) | |||||||||||
Total liabilities and shareowners’ equity (deficit) | $ | 2,090.6 | $ | 1,486.1 | $ | 968.7 | $ | (1,891.8 | ) | $ | 2,653.6 |
Form 10-q Part I | Cincinnati Bell Inc. |
Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
Six Months Ended June 30, 2011 | ||||||||||||||||||||
(dollars in millions) | Parent (Issuer) | Guarantors | Non-guarantors | Eliminations | Total | |||||||||||||||
Cash flows provided by (used in) operating activities | $ | (70.4 | ) | $ | 68.5 | $ | 119.8 | $ | — | $ | 117.9 | |||||||||
Capital expenditures | — | (47.4 | ) | (45.1 | ) | — | (92.5 | ) | ||||||||||||
Other investing activities | (0.2 | ) | — | — | — | (0.2 | ) | |||||||||||||
Cash flows used in investing activities | (0.2 | ) | (47.4 | ) | (45.1 | ) | — | (92.7 | ) | |||||||||||
Funding between Parent and subsidiaries, net | 93.6 | (19.6 | ) | (74.0 | ) | — | — | |||||||||||||
Increase in receivables facility, net | — | — | 0.4 | — | — | 0.4 | ||||||||||||||
Repayment of debt | — | (5.1 | ) | (1.1 | ) | — | (6.2 | ) | ||||||||||||
Other financing activities | (6.6 | ) | — | — | — | (6.6 | ) | |||||||||||||
Cash flows provided by (used in) financing activities | 87.0 | (24.7 | ) | (74.7 | ) | — | (12.4 | ) | ||||||||||||
Increase (decrease) in cash and cash equivalents | 16.4 | (3.6 | ) | — | — | 12.8 | ||||||||||||||
Beginning cash and cash equivalents | 69.8 | 5.7 | 1.8 | — | 77.3 | |||||||||||||||
Ending cash and cash equivalents | $ | 86.2 | $ | 2.1 | $ | 1.8 | $ | — | $ | 90.1 | ||||||||||
Six Months Ended June 30, 2010 | ||||||||||||||||||||
Parent (Issuer) | Guarantors | Non-guarantors | Eliminations | Total | ||||||||||||||||
Cash flows provided by (used in) operating activities | $ | (38.1 | ) | $ | 48.8 | $ | 114.7 | $ | — | $ | 125.4 | |||||||||
Capital expenditures | — | (21.3 | ) | (36.9 | ) | — | (58.2 | ) | ||||||||||||
Acquisitions of businesses | — | (524.9 | ) | (0.1 | ) | — | (525.0 | ) | ||||||||||||
Other investing activities | — | 0.2 | 0.2 | — | 0.4 | |||||||||||||||
Cash flows used in investing activities | — | (546.0 | ) | (36.8 | ) | — | (582.8 | ) | ||||||||||||
Funding between Parent and subsidiaries, net | (501.6 | ) | 503.1 | (1.5 | ) | — | — | |||||||||||||
Proceeds from issuance of long-term debt, net of financing costs | 1,318.6 | — | — | 1,318.6 | ||||||||||||||||
Decrease in receivables facility, net | — | — | (75.9 | ) | — | (75.9 | ) | |||||||||||||
Repayment of debt | (780.3 | ) | (4.1 | ) | (0.7 | ) | — | (785.1 | ) | |||||||||||
Other financing activities | (6.1 | ) | — | — | — | (6.1 | ) | |||||||||||||
Cash flows provided by (used in) financing activities | 30.6 | 499.0 | (78.1 | ) | — | 451.5 | ||||||||||||||
Increase (decrease) in cash and cash equivalents | (7.5 | ) | 1.8 | (0.2 | ) | — | (5.9 | ) | ||||||||||||
Beginning cash and cash equivalents | 20.1 | 0.8 | 2.1 | — | 23.0 | |||||||||||||||
Ending cash and cash equivalents | $ | 12.6 | $ | 2.6 | $ | 1.9 | $ | — | $ | 17.1 |
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
(dollars in millions) | 2011 | 2010 | Change | % Change | 2011 | 2010 | Change | % Change | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Voice - local service | $ | 71.8 | $ | 79.5 | $ | (7.7 | ) | (10 | )% | $ | 145.0 | $ | 160.8 | $ | (15.8 | ) | (10 | )% | ||||||||||||
Data | 72.7 | 70.6 | 2.1 | 3 | % | 143.8 | 141.4 | 2.4 | 2 | % | ||||||||||||||||||||
Long distance and VoIP | 27.5 | 26.2 | 1.3 | 5 | % | 55.3 | 51.7 | 3.6 | 7 | % | ||||||||||||||||||||
Entertainment | 6.6 | 3.8 | 2.8 | 74 | % | 12.4 | 6.9 | 5.5 | 80 | % | ||||||||||||||||||||
Other | 6.6 | 6.6 | — | 0 | % | 12.6 | 13.6 | (1.0 | ) | (7 | )% | |||||||||||||||||||
Total revenue | 185.2 | 186.7 | (1.5 | ) | (1 | )% | 369.1 | 374.4 | (5.3 | ) | (1 | )% | ||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||
Cost of services and products | 67.6 | 63.0 | 4.6 | 7 | % | 133.5 | 126.9 | 6.6 | 5 | % | ||||||||||||||||||||
Selling, general and administrative | 32.4 | 35.9 | (3.5 | ) | (10 | )% | 65.4 | 71.2 | (5.8 | ) | (8 | )% | ||||||||||||||||||
Depreciation and amortization | 25.1 | 25.5 | (0.4 | ) | (2 | )% | 50.5 | 50.9 | (0.4 | ) | (1 | )% | ||||||||||||||||||
Restructuring charges | — | 3.3 | (3.3 | ) | n/m | — | 3.3 | (3.3 | ) | n/m | ||||||||||||||||||||
Curtailment loss | 4.2 | — | 4.2 | n/m | 4.2 | — | 4.2 | n/m | ||||||||||||||||||||||
Asset impairment | 0.5 | — | 0.5 | n/m | 0.5 | — | 0.5 | n/m | ||||||||||||||||||||||
Total operating costs and expenses | 129.8 | 127.7 | 2.1 | 2 | % | 254.1 | 252.3 | 1.8 | 1 | % | ||||||||||||||||||||
Operating income | $ | 55.4 | $ | 59.0 | $ | (3.6 | ) | (6 | )% | $ | 115.0 | $ | 122.1 | $ | (7.1 | ) | (6 | )% | ||||||||||||
Operating margin | 29.9 | % | 31.6 | % | (1.7 | ) | pts | 31.2 | % | 32.6 | % | (1.4 | ) | pts | ||||||||||||||||
Capital expenditures | $ | 22.6 | $ | 22.4 | $ | 0.2 | 1 | % | $ | 48.1 | $ | 43.1 | $ | 5.0 | 12 | % | ||||||||||||||
Metrics information (in thousands): | ||||||||||||||||||||||||||||||
Local access lines | 650.6 | 699.0 | (48.4 | ) | (7 | )% | 650.6 | 699.0 | (48.4 | ) | (7 | )% | ||||||||||||||||||
High-speed internet subscribers | ||||||||||||||||||||||||||||||
DSL subscribers | 224.6 | 233.2 | (8.6 | ) | (4 | )% | 224.6 | 233.2 | (8.6 | ) | (4 | )% | ||||||||||||||||||
Fioptics internet subscribers | ||||||||||||||||||||||||||||||
Fiber | 29.4 | 15.8 | 13.6 | 86 | % | 29.4 | 15.8 | 13.6 | 86 | % | ||||||||||||||||||||
Cable | 3.9 | 3.6 | 0.3 | 8 | % | 3.9 | 3.6 | 0.3 | 8 | % | ||||||||||||||||||||
257.9 | 252.6 | 5.3 | 2 | % | 257.9 | 252.6 | 5.3 | 2 | % | |||||||||||||||||||||
Long distance lines | 467.8 | 496.0 | (28.2 | ) | (6 | )% | 467.8 | 496.0 | (28.2 | ) | (6 | )% | ||||||||||||||||||
Fioptics entertainment subscribers | ||||||||||||||||||||||||||||||
Fiber | 29.4 | 17.0 | 12.4 | 73 | % | 29.4 | 17.0 | 12.4 | 73 | % | ||||||||||||||||||||
Cable | 4.2 | 4.2 | — | n/m | 4.2 | 4.2 | — | n/m | ||||||||||||||||||||||
33.6 | 21.2 | 12.4 | 58 | % | 33.6 | 21.2 | 12.4 | 58 | % |
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
(dollars in millions, | 2011 | 2010 | Change | % Change | 2011 | 2010 | Change | % Change | ||||||||||||||||||||||
except for operating metrics) | ||||||||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Postpaid service | $ | 51.3 | $ | 55.1 | $ | (3.8 | ) | (7 | )% | $ | 102.2 | $ | 110.3 | $ | (8.1 | ) | (7 | )% | ||||||||||||
Prepaid service | 13.3 | 13.7 | (0.4 | ) | (3 | )% | 27.5 | 27.4 | 0.1 | n/m | ||||||||||||||||||||
Equipment | 5.1 | 4.9 | 0.2 | 4 | % | 11.4 | 9.2 | 2.2 | 24 | % | ||||||||||||||||||||
Total revenue | 69.7 | 73.7 | (4.0 | ) | (5 | )% | 141.1 | 146.9 | (5.8 | ) | (4 | )% | ||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||
Cost of services and products | 31.9 | 32.3 | (0.4 | ) | (1 | )% | 63.9 | 64.4 | (0.5 | ) | (1 | )% | ||||||||||||||||||
Selling, general and administrative | 14.2 | 14.3 | (0.1 | ) | (1 | )% | 27.5 | 28.7 | (1.2 | ) | (4 | )% | ||||||||||||||||||
Depreciation and amortization | 8.4 | 8.3 | 0.1 | 1 | % | 17.1 | 17.3 | (0.2 | ) | (1 | )% | |||||||||||||||||||
Asset impairment | — | — | — | n/m | 1.1 | — | 1.1 | n/m | ||||||||||||||||||||||
Total operating costs and expenses | 54.5 | 54.9 | (0.4 | ) | (1 | )% | 109.6 | 110.4 | (0.8 | ) | (1 | )% | ||||||||||||||||||
Operating income | $ | 15.2 | $ | 18.8 | $ | (3.6 | ) | (19 | )% | $ | 31.5 | $ | 36.5 | $ | (5.0 | ) | (14 | )% | ||||||||||||
Operating margin | 21.8 | % | 25.5 | % | (3.7 | ) | pts | 22.3 | % | 24.8 | % | (2.5 | ) | pts | ||||||||||||||||
Capital expenditures | $ | 0.9 | $ | 2.2 | $ | (1.3 | ) | (59 | )% | $ | 5.7 | $ | 4.4 | $ | 1.3 | 30 | % | |||||||||||||
Metrics information: | ||||||||||||||||||||||||||||||
Postpaid ARPU* | $50.74 | $50.75 | $ | (0.01 | ) | n/m | $ | 49.80 | $ | 49.91 | $ | (0.11 | ) | n/m | ||||||||||||||||
Prepaid ARPU* | $27.71 | $29.59 | $ | (1.88 | ) | (6 | )% | $ | 28.62 | $ | 29.80 | $ | (1.18 | ) | (4 | )% | ||||||||||||||
Postpaid subscribers (in thousands) | 331.4 | 357.4 | (26.0 | ) | (7 | )% | 331.4 | 357.4 | (26.0 | ) | (7 | )% | ||||||||||||||||||
Prepaid subscribers (in thousands) | 155.9 | 152.4 | 3.5 | 2 | % | 155.9 | 152.4 | 3.5 | 2 | % | ||||||||||||||||||||
Average postpaid churn | 2.2% | 2.2% | — | pts | 2.1 | % | 2.1 | % | — | pts |
* | The Company has presented certain information regarding monthly average revenue per user ("ARPU") because it believes ARPU provides a useful measure of the operational performance of its Wireless segment. ARPU is calculated by dividing service revenue by the average subscriber base for the period. | ||||
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
(dollars in millions) | 2011 | 2010 | Change | % Change | 2011 | 2010 | Change | % Change | ||||||||||||||||||||||
Revenue | $ | 45.1 | $ | 24.7 | $ | 20.4 | 83 | % | $ | 88.5 | $ | 44.7 | $ | 43.8 | 98 | % | ||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||
Cost of services | 14.4 | 8.2 | 6.2 | 76 | % | 28.1 | 14.7 | 13.4 | 91 | % | ||||||||||||||||||||
Selling, general and administrative | 4.9 | 3.5 | 1.4 | 40 | % | 10.6 | 6.2 | 4.4 | 71 | % | ||||||||||||||||||||
Depreciation and amortization | 13.0 | 5.7 | 7.3 | 128 | % | 25.0 | 9.8 | 15.2 | 155 | % | ||||||||||||||||||||
Total operating costs and expenses | 32.3 | 17.4 | 14.9 | 86 | % | 63.7 | 30.7 | 33.0 | 107 | % | ||||||||||||||||||||
Operating income | $ | 12.8 | $ | 7.3 | $ | 5.5 | 75 | % | $ | 24.8 | $ | 14.0 | $ | 10.8 | 77 | % | ||||||||||||||
Operating margin | 28.4 | % | 29.6 | % | (1.2 | ) | pts | 28.0 | % | 31.3 | % | (3.3 | ) | pts | ||||||||||||||||
Capital expenditures | $ | 14.6 | $ | 3.1 | $ | 11.5 | n/m | $ | 36.2 | $ | 5.5 | $ | 30.7 | n/m | ||||||||||||||||
Metrics information: | ||||||||||||||||||||||||||||||
Data center capacity (in square feet) | 669,000 | 621,000 | 48,000 | 8 | % | 669,000 | 621,000 | 48,000 | 8 | % | ||||||||||||||||||||
Utilization rate* | 90 | % | 86 | % | 4 | pts | 90 | % | 86 | % | 4 | pts |
* | The utilization rate is calculated by dividing data center square footage that is committed contractually to customers, if built, by total data center square footage. Some data center square footage that is committed contractually may not yet be billing to the customer. | ||||
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||
(dollars in millions) | 2011 | 2010 | Change | % Change | 2011 | 2010 | Change | % Change | ||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Telecom and IT equipment distribution | $ | 53.3 | $43.4 | $ | 9.9 | 23 | % | $101.8 | $ | 76.7 | $ | 25.1 | 33 | % | ||||||||||||||||
Managed services | 15.2 | 12.4 | 2.8 | 22 | % | 30.1 | 25.1 | 5.0 | 20 | % | ||||||||||||||||||||
Professional services | 7.2 | 6.5 | 0.7 | 11 | % | 14.1 | 12.1 | 2.0 | 17 | % | ||||||||||||||||||||
Total revenue | 75.7 | 62.3 | 13.4 | 22 | % | 146.0 | 113.9 | 32.1 | 28 | % | ||||||||||||||||||||
Operating costs and expenses: | ||||||||||||||||||||||||||||||
Cost of services and products | 62.6 | 50.5 | 12.1 | 24 | % | 117.6 | 89.9 | 27.7 | 31 | % | ||||||||||||||||||||
Selling, general and administrative | 9.4 | 10.5 | (1.1 | ) | (10 | )% | 19.3 | 20.4 | (1.1 | ) | (5 | )% | ||||||||||||||||||
Depreciation and amortization | 2.2 | 1.7 | 0.5 | 29 | % | 4.4 | 3.3 | 1.1 | 33 | % | ||||||||||||||||||||
Restructuring charges | — | 1.8 | (1.8 | ) | n/m | — | 1.8 | (1.8 | ) | n/m | ||||||||||||||||||||
Total operating costs and expenses | 74.2 | 64.5 | 9.7 | 15 | % | 141.3 | 115.4 | 25.9 | 22 | % | ||||||||||||||||||||
Operating income (loss) | $ | 1.5 | $ | (2.2 | ) | $ | 3.7 | n/m | $ | 4.7 | $ | (1.5 | ) | $ | 6.2 | n/m | ||||||||||||||
Operating margin | 2.0 | % | (3.5 | )% | 5.5 | pts | 3.2 | % | (1.3 | )% | 4.5 | pts | ||||||||||||||||||
Capital expenditures | $ | 2.0 | $ | 3.2 | $ | (1.2 | ) | (37.5 | )% | $ | 2.5 | $ | 5.2 | $ | (2.7 | ) | (51.9 | )% |
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Consolidated Total Leverage Ratio (dollars in millions) | |||
Consolidated Total Leverage Ratio as of June 30, 2011 | 4.79 | ||
Maximum ratio permitted for compliance | 6.00 | ||
Consolidated Funded Indebtedness additional availability | $ | 618.7 | |
Consolidated EBITDA clearance over compliance threshold | $ | 103.1 | |
Consolidated Fixed Charge Coverage Ratio (dollars in millions) | |||
Fixed Charge Coverage Ratio as of June 30, 2011 | 1.42 | ||
Minimum ratio permitted for compliance | 1.00 | ||
Fixed Charges clearance over compliance threshold | $ | 97.2 | |
Consolidated EBITDA clearance over compliance threshold | $ | 97.2 |
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Form 10-q Part I | Cincinnati Bell Inc. |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk |
Item 4. | Controls and Procedures |
(a) | Evaluation of disclosure controls and procedures. |
(b) | Changes in internal control over financial reporting. |
Form 10-Q Part II | Cincinnati Bell Inc. |
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Form 10-Q Part II | Cincinnati Bell Inc. |
Form 10-Q Part II | Cincinnati Bell Inc. |
Cincinnati Bell Inc. | ||||
Date: | August 4, 2011 | /s/ Gary J. Wojtaszek | ||
Gary J. Wojtaszek | ||||
Chief Financial Officer | ||||
Date: | August 4, 2011 | /s/ Susan M. Kinsey | ||
Susan M. Kinsey | ||||
Vice President and Controller |
1. | I have reviewed this quarterly report on Form 10-Q of Cincinnati Bell Inc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 4, 2011 | /s/ John F. Cassidy |
John F. Cassidy | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Cincinnati Bell Inc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure control and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 4, 2011 | /s/ Gary J. Wojtaszek |
Gary J. Wojtaszek | ||
Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ John F. Cassidy | |
John F. Cassidy | |
President and Chief Executive Officer | |
August 4, 2011 |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Gary J. Wojtaszek | |
Gary J. Wojtaszek | |
Chief Financial Officer | |
August 4, 2011 |
Condensed Consolidated Balance Sheets (Parentheticals) (USD $)
In Millions, except Share data |
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Allowance for receivables | $ 11.8 | $ 14.0 |
Preferred stock, shares authorized | 2,357,299 | 2,357,299 |
Preferred stock, 6 3/4% Cumulative Convertible, shares issued | 155,250 | 155,250 |
Preferred stock, 6 3/4% Cumulative Convertible, shares outstanding | 155,250 | 155,250 |
Preferred stock, depository shares | 3,105,000 | 3,105,000 |
Preferred stock, 6 3/4% Cumulative Convertible, liquidation preference | $ 1,000 | $ 1,000 |
Preferred stock, liquidation depositary | 50 | 50 |
Common Shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 480,000,000 | 480,000,000 |
Common shares, shares issued | 199,418,167 | 198,354,851 |
Common schares, shares outstanding | 198,904,592 | 197,841,276 |
Financial Instruments (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The carrying value and fair value of the Company’s long-term debt are as follows:
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Document and Entity Information Document
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Jul. 31, 2011
|
|
Document Information [Line Items] | ||
Entity Registrant Name | CINCINNATI BELL INC. | |
Entity Central Index Key | 0000716133 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2011 | |
Document Fiscal Year Focus | 2011 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 198,916,366 |
Business Segment Information (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The Company’s business segment information is as follows:
|
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Restructuring Charges
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Restructuring Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring Charges The Company’s restructuring activities consist of actions taken to reduce operating costs, integrate recently acquired businesses, and eliminate non-strategic operations. Restructuring liabilities have been established for employee separation obligations, lease abandonment, and conforming commission incentive programs. A summary of the activity in these liabilities is presented below:
The liability for employee separations shown in the table above includes future separations to occur under the Company's written plans. As of the end of June 30, 2011 and December 31, 2010 the liability by segment was as follows:
In the second quarter of 2010, a restructuring charge of $1.8 million was recorded for headcount reduction in IT Services and Hardware. A lease abandonment charge of $3.3 million was also incurred in the second quarter of 2010, representing future lease costs, net of sublease income, on office space abandoned by the Company primarily resulting from the decrease in Wireline headcount over the past several years. The lease obligations are expected to continue through 2015 and the liability remaining as of June 30, 2011 is $2.9 million. In 2001, the Company adopted a restructuring plan which included initiatives to eliminate non-strategic operations and merge internet operations in the Company's other operations. The Company completed the plan prior to 2003, except for certain lease obligations, which are expected to continue through 2015 and for which a $3.4 million liability remains as of June 30, 2011. These obligations are considered liabilities of the Corporate segment. At December 31, 2010, other restructuring costs consisted of $1.4 million to conform the Company’s commission incentive program for the Data Center Colocation segment. All payments under this program were completed as of March 31, 2011. At June 30, 2011 and December 31, 2010, $6.4 million and $9.3 million, respectively, of the restructuring liabilities were included in “Other current liabilities,” and $7.3 million and $11.0 million, respectively, were included in “Other noncurrent liabilities,” in the Condensed Consolidated Balance Sheets. |
Supplemental Guarantor Information (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Supplemental Guarantor Information Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor Information [Table Text Block] | The following information sets forth the Condensed Consolidating Statements of Operations for the three and six months ended June 30, 2011 and 2010, Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2011 and 2010, and the Condensed Consolidating Balance Sheets as of June 30, 2011 and December 31, 2010 of (1) the Parent Company, as the issuer, (2) the guarantor subsidiaries on a combined basis, and (3) the non-guarantor subsidiaries on a combined basis:
The following information sets forth the Condensed Consolidating Statements of Operations for the three and six months ended June 30, 2011 and 2010, Condensed Consolidating Balance Sheets as of June 30, 2011 and December 31, 2010, and Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2011 and 2010, of (1) the Parent Company, as the guarantor, (2) CBT, as the issuer, and (3) the non-guarantor subsidiaries on a combined basis:
Condensed Consolidating Statements of Cash Flows
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Business Segment Information (Details) (USD $)
In Millions |
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||
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Jun. 30, 2011
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Jun. 30, 2010
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Jun. 30, 2011
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Jun. 30, 2010
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Dec. 31, 2010
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Jun. 30, 2011
Cyrus Networks [Member]
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Jun. 30, 2011
Cyrus Networks [Member]
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Jun. 11, 2010
Cyrus Networks [Member]
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Jun. 30, 2011
Cyrus Networks [Member]
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Jun. 30, 2010
Cyrus Networks [Member]
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Jun. 30, 2011
Wireline [Member]
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Jun. 30, 2010
Wireline [Member]
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Jun. 30, 2011
Wireline [Member]
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Jun. 30, 2010
Wireline [Member]
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Dec. 31, 2010
Wireline [Member]
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Jun. 30, 2011
Corporate Elimination [Member]
|
Jun. 30, 2010
Corporate Elimination [Member]
|
Jun. 30, 2011
Corporate Elimination [Member]
|
Jun. 30, 2010
Corporate Elimination [Member]
|
Dec. 31, 2010
Corporate Elimination [Member]
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Jun. 30, 2011
Wireless [Member]
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Jun. 30, 2010
Wireless [Member]
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Jun. 30, 2011
Wireless [Member]
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Jun. 30, 2010
Wireless [Member]
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Dec. 31, 2010
Wireless [Member]
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Jun. 30, 2011
Data Center Colocation [Member]
|
Jun. 30, 2010
Data Center Colocation [Member]
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Jun. 30, 2011
Data Center Colocation [Member]
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Jun. 30, 2010
Data Center Colocation [Member]
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Dec. 31, 2010
Data Center Colocation [Member]
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Jun. 30, 2011
IT Services and Hardware [Member]
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Jun. 30, 2010
IT Services and Hardware [Member]
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Jun. 30, 2011
IT Services and Hardware [Member]
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Jun. 30, 2010
IT Services and Hardware [Member]
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Dec. 31, 2010
IT Services and Hardware [Member]
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Jun. 30, 2011
Intersegment Elimination [Member]
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Jun. 30, 2010
Intersegment Elimination [Member]
|
Jun. 30, 2011
Intersegment Elimination [Member]
|
Jun. 30, 2010
Intersegment Elimination [Member]
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Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||
Revenue, Net | $ 367.5 | $ 338.6 | $ 728.3 | $ 662.3 | $ 22.7 | $ 44.8 | $ 185.2 | $ 186.7 | $ 369.1 | $ 374.4 | $ 69.7 | $ 73.7 | $ 141.1 | $ 146.9 | $ 45.1 | $ 24.7 | $ 88.5 | $ 44.7 | $ 75.7 | $ 62.3 | $ 146.0 | $ 113.9 | $ (8.2) | $ (8.8) | $ (16.4) | $ (17.6) | |||||||||||||
Intersegment Revenue | 8.2 | 8.8 | 16.4 | 17.6 | 5.8 | 6.2 | 11.6 | 12.5 | 0.5 | 0.7 | 1.1 | 1.4 | 0.5 | 0.4 | 1.1 | 0.9 | 1.4 | 1.5 | 2.6 | 2.8 | |||||||||||||||||||
Operating Income (Loss) | 77.6 | 69.8 | 164.0 | 152.2 | 6.5 | 12.5 | 55.4 | 59.0 | 115.0 | 122.1 | (7.3) | (13.1) | (12.0) | (18.9) | 15.2 | 18.8 | 31.5 | 36.5 | 12.8 | 7.3 | 24.8 | 14.0 | 1.5 | (2.2) | 4.7 | (1.5) | |||||||||||||
Expenditures for long-lived assets | 40.1 | 30.9 | 92.5 | 58.2 | 22.6 | 22.4 | 48.1 | 43.1 | 0.9 | 2.2 | 5.7 | 4.4 | 14.6 | 3.1 | 36.2 | 5.5 | 2.0 | 3.2 | 2.5 | 5.2 | |||||||||||||||||||
Depreciation and amortization | 48.8 | 41.3 | 97.2 | 81.5 | 25.1 | 25.5 | 50.5 | 50.9 | 0.1 | 0.1 | 0.2 | 0.2 | 8.4 | 8.3 | 17.1 | 17.3 | 13.0 | 5.7 | 25.0 | 9.8 | 2.2 | 1.7 | 4.4 | 3.3 | |||||||||||||||
Assets | 2,658.5 | 2,658.5 | 2,653.6 | 695.8 | 695.8 | 694.1 | 697.6 | 697.6 | 708.3 | 347.2 | 347.2 | 359.3 | 883.3 | 883.3 | 857.2 | 34.6 | 34.6 | 34.7 | |||||||||||||||||||||
Business Acquisition, Cost of Acquired Entity, Purchase Price [Abstract] | |||||||||||||||||||||||||||||||||||||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | $ 526 |
Pension and Postretirement Plans (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Defined Benefit Plans Disclosures | Pension and postretirement benefit costs are as follows:
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Subsequent Events
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6 Months Ended |
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Jun. 30, 2011
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Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On August 1, 2011, the Company sold substantially all of the assets associated with its home security business for $11.5 million. The pre-tax gain on the sale of these assets is estimated to be $8.5 million. The purchase price and related gain on sale is subject to adjustment if the recurring monthly revenue of this business is less than $373,000 in October 2011. Any reduction to the purchase price is limited to a maximum reduction of $1.7 million. In conjunction with this transaction, the Company amended its Receivables Facility to remove the accounts receivable associated with its home security business and to remove its wholly-owned subsidiary, Cincinnati Bell Complete Protection, Inc., as an originator. On July 5, 2011, a shareholder derivative action, captioned NECA-IBEW Pension Fund (The Decatur Plan), Derivatively on behalf of Cincinnati Bell Inc. v. Phillip R. Cox, et al., was filed in the United States District Court for the Southern District of Ohio, naming certain directors and officers of the Company, and Towers Watson & Co. (the Company's compensation consulting firm), as defendants, and naming the Company as a nominal defendant. The complaint alleges that the director defendants breached their duty of loyalty in connection with 2010 executive compensation decisions and the officer defendants were unjustly enriched. The complaint seeks unspecified compensatory damages on behalf of the Company from the director and officer defendants and Towers Watson, and also seeks various forms of equitable and/or injunctive relief, and attorneys' and other professional fees and costs. The officer and director defendants believe the suit is without merit and they plan to file appropriate responses in due course. Two additional shareholder derivative actions, captioned Pinchus E. Raul, derivatively on behalf of Cincinnati Bell Inc. v. John F. Cassidy, et al. and Dennis Palkon, derivatively on behalf of Cincinnati Bell Inc. v. John F. Cassidy, et al., were filed in the Court of Common Pleas, Hamilton County, Ohio, on July 8, 2011 and July 13, 2011, respectively. The two state court actions name the current directors and certain officers as defendants, and the Company as a nominal defendant, and assert allegations similar to those asserted in the federal court action and seek relief similar to that requested in the federal action. The state court actions also allege that the director defendants breached their fiduciary duties by participating in issuing materially false and/or misleading statements in the Company's 2011 Proxy Statement. The officer and director defendants believe the state court suits are without merit and they plan to file appropriate responses in due course. |
Earnings Per Common Share
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share (“EPS”) is based upon the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that would occur upon issuance of common shares for awards under our stock-based compensation plans, exercise of warrants or conversion of preferred stock, but only to the extent that they are considered dilutive. The following table shows the computation of the basic and diluted EPS:
For the three and six month periods ended June 30, 2011, awards under the Company’s stock-based compensation plans for common shares of 11.7 million and 11.8 million, respectively, were excluded from the computation of diluted EPS as their inclusion would have been anti-dilutive. For the three and six months ended June 30, 2010, awards for common shares of 14.1 million and 14.5 million, respectively, were excluded as their inclusion would have been anti-dilutive. For all periods, preferred stock convertible into 4.5 million common shares was excluded as it was anti-dilutive. |
Restructuring Charges (Details) (USD $)
In Millions |
3 Months Ended | 6 Months Ended | ||||
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Jun. 30, 2011
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Mar. 31, 2011
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Jun. 30, 2010
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Jun. 30, 2011
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Jun. 30, 2010
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Dec. 31, 2010
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | $ 15.3 | $ 20.3 | $ 20.3 | |||
Utilizations | 1.6 | (5.0) | ||||
Ending balance | 13.7 | 15.3 | 13.7 | |||
Restructuring liabilities included in other current liabilities | 6.4 | 6.4 | 9.3 | |||
Restructuring liabilities included in other noncurrent liabilities | 7.3 | 7.3 | 11.0 | |||
Restructuring charges | 0 | 5.2 | 0 | 5.2 | ||
Wireline [Member] | Employee Severance [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 9.4 | |||||
Ending balance | 6.1 | 6.1 | 9.4 | |||
Wireline [Member] | Lease Abandonment [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Ending balance | 2.9 | 2.9 | ||||
Wireless [Member] | Employee Severance [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 0.8 | |||||
Ending balance | 0.6 | 0.6 | 0.8 | |||
IT Services and Hardware [Member] | Employee Severance [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 1.3 | |||||
Ending balance | 0.7 | 0.7 | 1.3 | |||
IT Services and Hardware [Member] | Lease Abandonment [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Ending balance | 6.3 | 6.3 | ||||
Data Center Colocation [Member] | Employee Severance [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 0 | |||||
Ending balance | 0 | 0 | 0 | |||
Data Center Colocation [Member] | Other Restructuring [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 1.4 | |||||
Ending balance | 1.4 | |||||
Corporate and eliminations [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Ending balance | 3.4 | 3.4 | ||||
Corporate and eliminations [Member] | Employee Severance [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 0.2 | |||||
Ending balance | 0 | 0 | 0.2 | |||
Employee Severance [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 8.5 | 11.7 | 11.7 | |||
Utilizations | 1.1 | (3.2) | ||||
Ending balance | 7.4 | 8.5 | 7.4 | |||
Restructuring charges | 1.8 | |||||
Lease Abandonment [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 6.8 | 7.2 | 7.2 | |||
Utilizations | 0.5 | (0.4) | ||||
Ending balance | 6.8 | |||||
Restructuring charges | 3.3 | |||||
Other Restructuring [Member]
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Restructuring Reserve [Roll Forward] | ||||||
Beginning balance | 0 | 1.4 | 1.4 | |||
Utilizations | 0 | (1.4) | ||||
Ending balance | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation Plans
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6 Months Ended |
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Jun. 30, 2011
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans The Company grants stock options, stock appreciation rights (“SARs”), performance-based awards, and time-based restricted shares, some of which are cash-payment awards with the final award payment indexed to the percentage change in the Company’s stock price from the date of grant. The Company recognized stock-based compensation expense of $2.3 million and $3.7 million for the three and six months ended June 30, 2011, respectively. For the three and six months ended June 30, 2010, the Company recognized stock-based compensation expense of $1.2 million and $2.5 million, respectively. As of June 30, 2011, there was $7.6 million of unrecognized compensation expense related to these awards. The remaining compensation expense for the stock options, SARs and restricted awards is expected to be recognized over a weighted-average period of approximately two years, while the remaining expense for performance-based awards will be recognized within approximately one year. The Company also has deferred compensation plans for its Board of Directors and certain executives. Under these plans, participants can elect to invest their deferrals in the Company’s common stock. At June 30, 2011 and 2010, there were 0.7 million and 0.8 million common shares deferred, respectively. As these awards can be settled in cash, the Company records compensation costs each period based on the change in the Company’s stock price. The Company recognized expense of $0.4 million and $0.3 million, respectively, for the three and six months ended June 30, 2011. The Company recognized no expense for the three months ended June 30, 2010, and expense of $0.1 million for the six month period in the prior year. |
Acquisition of Cyrus Networks, LLC (Tables)
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Jun. 30, 2011
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information | The following unaudited pro forma consolidated results assume the acquisition of CyrusOne was completed as of the beginning of 2010:
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Business Segment Information
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Jun. 30, 2011
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | Business Segment Information The Company operates in four segments: Wireline, Wireless, Data Center Colocation, and IT Services and Hardware. The Company’s segments are strategic business units that offer distinct products and services and are aligned with its internal management structure and reporting. The Wireline segment provides local voice, data, long-distance and other services to customers primarily in southwestern Ohio, northern Kentucky, and southeastern Indiana. The Wireless segment provides advanced digital voice and data communications services and sales of related communications equipment to customers in the Greater Cincinnati and Dayton, Ohio operating areas. The Data Center Colocation segment provides data center colocation services primarily to large businesses. The Company operates 17 data centers in Texas, Ohio, Kentucky, Indiana, Michigan, and Illinois. 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. On June 11, 2010, the Company purchased CyrusOne, a data center operator based in Texas, for approximately $526 million, net of cash acquired. The CyrusOne financial results are included in the Data Center Colocation segment for the three and six months ended June 30, 2011. In the fourth quarter of 2010, the Company realigned its reportable business segments to be consistent with changes to its management reporting. The segment formerly known as Technology Solutions was separated into the Data Center Colocation segment and the IT Services and Hardware segment. The changes to the Company’s management reporting were made primarily as a result of the CyrusOne acquisition. Prior year amounts have been reclassified to conform to the current segment reporting. Certain corporate administrative expenses have been allocated to segments based upon the nature of the expense and the relative size of the segment. Intercompany transactions between segments have been eliminated. The Company’s business segment information is as follows:
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Pension and Postretirement Plans
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Jun. 30, 2011
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General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Postretirement Plans | Pension and Postretirement Plans The Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan. A portion of these costs is capitalized as a component of internal labor costs incurred for network construction in the Wireline segment, historically averaging about 9%. In the second quarter of 2011, the company ratified a new labor agreement with its employees who participate in the Communication Workers of America union, which curtails future pension service credits for certain employees effective January 1, 2012. As a result of this event, the Company remeasured its projected benefit obligation for its non-management pension plan. A curtailment loss of $4.2 million was recognized in the three and six month period ended June 30, 2011. Pension and postretirement benefit costs are as follows:
Contributions in 2011 to the Company’s pension and postretirement plans are expected to be approximately $20.1 million and $22.1 million, respectively. For the six months ended June 30, 2011, contributions to the pension plan were $13.2 million and contributions to the postretirement plan were $13.9 million, respectively. |
Description of Business and Accounting Policies
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6 Months Ended |
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Jun. 30, 2011
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Accounting Policies | Description of Business and Accounting Policies Description of Business — Cincinnati Bell Inc. and its consolidated subsidiaries (the “Company”) provide diversified telecommunications and technology services through businesses in four segments: Wireline, Wireless, Data Center Colocation, and IT Services and Hardware. In the fourth quarter of 2010, the Company realigned its reportable business segments to be consistent with changes to its management reporting. The segment formerly known as Technology Solutions was separated into the Data Center Colocation segment and the IT Services and Hardware segment. Prior year amounts have been reclassified to conform to the current segment reporting. See Note 10 for information on the Company’s reportable segments. Basis of Presentation — The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all adjustments necessary for a fair presentation of the results of operations, financial position, and cash flows for each period presented. The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations for interim reporting. The Condensed Consolidated Balance Sheet as of December 31, 2010 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2010 Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2011 are not necessarily indicative of the results expected for the full year or any other interim period. Recently Issued Accounting Standards — In June 2011, the Financial Accounting Standards Board issued new guidance under Accounting Standards Codification ("ASC") Topic 220 regarding the presentation of comprehensive income in financial statements. An entity has the option to present the components of net income and other comprehensive income either in a single continuous statement or in two separate but consecutive statements. The Company will be required to adopt this guidance beginning with its interim financial statements for the three months ended March 31, 2012. Early adoption is permitted, but not required. The adoption of this new standard will not have a material impact on the Company's financial statements. In September 2009, new accounting guidance under ASC Topic 605 related to revenue arrangements with multiple deliverables was issued. The guidance addresses the unit of accounting for arrangements involving multiple deliverables, how arrangement consideration should be allocated to the separate units of accounting and eliminates the criterion that objective and reliable evidence of fair value of any undelivered items must exist for the delivered item to be considered a separate unit of accounting. Effective January 1, 2011, the Company prospectively adopted this standard for revenue arrangements entered into or materially modified after the adoption date. The adoption of this accounting standard did not have a material impact on the Company’s financial statements. In September 2009, new accounting guidance under ASC Topic 605 was issued regarding tangible products containing both software and non-software components that function together to deliver the product’s essential functionality. Effective January 1, 2011, the Company prospectively adopted this standard for revenue arrangements entered into or materially modified after the adoption date. The adoption of this accounting standard did not have a material impact on the Company’s financial statements. Income Taxes — The Company’s income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income, as well as the tax effects associated with discrete items. Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims, and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. |
Comprehensive Income
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Jun. 30, 2011
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | Comprehensive Income The Company’s comprehensive income is shown below:
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Subsequent Events (Details) (Sale [Member], USD $)
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6 Months Ended |
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Jun. 30, 2011
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Sale [Member]
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Subsequent Event [Line Items] | |
Proceeds from divestiture of businesses | $ 11,500,000 |
Pre-tax gain on sale of assets, disposal group | 8,500,000 |
Purchase price adjustment threshold | 373,000 |
Maximum potential reduction in purchase price | $ 1,700,000 |
Comprehensive Income (Details) (USD $)
In Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
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Jun. 30, 2010
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Jun. 30, 2011
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Jun. 30, 2010
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income | $ 13.5 | $ 9.6 | $ 31.4 | $ 32.4 |
Net gain arising during the period, net of tax of $0.9 | 1.4 | 0 | 1.4 | 0 |
Amortization of prior service benefits included in net income, net of tax of $(1.2), $(1.2), $(2.4), $(2.4) | (2.0) | (2.0) | (4.0) | (4.0) |
Other Comprehensive Income (Loss), Reclassification, Pension and Other Postretirement Benefit Plans, Net (Gain) Loss Recognized in Net Periodic Benefit Cost, Net of Tax | 3.3 | 2.3 | 6.5 | 4.6 |
Reclassifiation adjustment for curtailments included in net income, net of tax of $1.5 | 2.7 | 0 | 2.7 | 0 |
Other comprehensive income | 5.4 | 0.3 | 6.6 | 0.6 |
Total comprehensive income | 18.9 | 9.9 | 38.0 | 33.0 |
Pension and Other Postretirement Benefit Plans, Tax | 0.9 | 0 | 0.9 | 0 |
Amortization, pension and other postretirement benefit plans, net prior service cost recognized in net periodic pension cost, tax effect | 1.2 | 1.2 | 2.4 | 2.4 |
Reclassification, pension and other postretirement benefit plans, net gain (loss) recognized in net periodic benefit cost, tax | 1.8 | 1.3 | 3.8 | 2.6 |
Reclassification adjustment for curtailment included in net income, tax | $ 1.5 | $ 0 | $ 1.5 | $ 0 |
Debt
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Jun. 30, 2011
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Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The Company’s debt consists of the following:
* The face amount of these notes has been adjusted for the unamortized called amounts received on terminated interest rate swaps. In June 2011, the Company amended its accounts receivable securitization facility (“Receivables Facility”). Among other things, this amendment increased the facility limit to $105.0 million, removed certain provisions which were no longer applicable to the facility, extended the termination date of the facility to June 2014, added an additional purchaser, added a letter of credit subfacility, and added the Company's wholly owned subsidiary Cyrus Networks, LLC as an originator. The Receivables Facility is subject to renewal every 364 days. In the event the Receivables Facility is not renewed, the Company believes it would be able to refinance any outstanding borrowings with borrowings under the revolving credit facility. The permitted borrowings vary depending on the level of eligible receivables and other factors. Under the Receivables Facility, certain subsidiaries, or originators, sell their respective trade receivables on a continuous basis to Cincinnati Bell Funding LLC ("CBF"). Although CBF is a wholly-owned consolidated subsidiary of the Company, CBF is legally separate from the Company and each of the Company’s other subsidiaries. Upon and after the sale or contribution of the accounts receivable to CBF, such accounts receivable are legally assets of CBF, and as such are not available to creditors of other subsidiaries or the parent company. At June 30, 2011, the Company had $0.4 million of borrowings and $4.6 million of letters of credit outstanding under the Receivables Facility, leaving $100.0 million remaining on the available borrowings of $105.0 million. As of June 30, 2011, the Company had no outstanding borrowings, and $21.7 million of outstanding letters of credit under its revolving credit facility, leaving $188.3 million remaining of the $210.0 million capacity. |
Acquisition of Cyrus Networks, LLC (Details) (USD $)
In Millions, except Per Share data |
3 Months Ended | 6 Months Ended | |||
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Jun. 30, 2011
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Jun. 30, 2010
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Jun. 30, 2011
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Jun. 30, 2010
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Jun. 11, 2010
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Business Acquisition [Line Items] | |||||
Business Acquisition, Purchase Price Allocation, Goodwill Amount | $ 269.9 | ||||
Business Acquisition, Purchase Price Allocation, Amortizable Intangible Assets | 138.0 | ||||
Revenue, Net | 367.5 | 338.6 | 728.3 | 662.3 | |
Operating Income (Loss) | 77.6 | 69.8 | 164.0 | 152.2 | |
Business Acquisition, Pro Forma Information [Abstract] | |||||
Revenue | 352.8 | 693.9 | |||
Net income | 11.3 | 28.0 | |||
Basic earnings per common share | $ 0.04 | $ 0.11 | |||
Diluted earnings per common share | $ 0.04 | $ 0.11 | |||
Cyrus Networks [Member]
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Business Acquisition [Line Items] | |||||
Business Acquisition, Cost of Acquired Entity, Purchase Price | 526 | ||||
Revenue, Net | 22.7 | 44.8 | |||
Operating Income (Loss) | $ 6.5 | $ 12.5 |
Debt - Credit Facility (Details) (USD $)
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Jun. 30, 2011
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Line of Credit Facility [Line Items] | |
Receivables program maximum capacity | $ 105,000,000 |
Line of credit facility, letters of credit outstanding | 21,700,000 |
Receivables facility amount outstanding | 400,000 |
Receivables facility, letters credit outstanding | 4,600,000 |
Receivables facility remaining borrowing capacity | 100,000,000 |
Line of credit facility, amount outstanding | 0.00 |
Line of credit facility, remaining borrowing capacity | 188,300,000 |
Line of credit facility, maximum borrowing capacity | $ 210,000,000 |
Earinings Per Common Share - Antidilutive Securities Excluded From Computation of EPS (Details)
In Millions |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2011
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Jun. 30, 2010
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Jun. 30, 2011
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Jun. 30, 2010
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Stock Compensation Plan [Member]
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 11.7 | 14.1 | 11.8 | 14.5 |
Convertible Preferred Stock [Member]
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4.5 | 4.5 | 4.5 | 4.5 |
Description of Business and Accounting Policies (Policies)
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6 Months Ended |
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Jun. 30, 2011
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue Recognition, Policy | In September 2009, new accounting guidance under ASC Topic 605 related to revenue arrangements with multiple deliverables was issued. The guidance addresses the unit of accounting for arrangements involving multiple deliverables, how arrangement consideration should be allocated to the separate units of accounting and eliminates the criterion that objective and reliable evidence of fair value of any undelivered items must exist for the delivered item to be considered a separate unit of accounting. Effective January 1, 2011, the Company prospectively adopted this standard for revenue arrangements entered into or materially modified after the adoption date. The adoption of this accounting standard did not have a material impact on the Company’s financial statements. In September 2009, new accounting guidance under ASC Topic 605 was issued regarding tangible products containing both software and non-software components that function together to deliver the product’s essential functionality. Effective January 1, 2011, the Company prospectively adopted this standard for revenue arrangements entered into or materially modified after the adoption date. The adoption of this accounting standard did not have a material impact on the Company’s financial statements. |
Income Tax, Policy | The Company’s income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income, as well as the tax effects associated with discrete items. |
Use of Estimates, Policy | Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims, and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. |
Fair Value of Financial Instruments, Policy | The fair value of debt instruments was based on closing or estimated market prices of the Company’s debt at June 30, 2011 and December 31, 2010. |
Financial Instruments
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Jun. 30, 2011
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | Financial Instruments The carrying value and fair value of the Company’s long-term debt are as follows:
The fair value of debt instruments was based on closing or estimated market prices of the Company’s debt at June 30, 2011 and December 31, 2010. |
Comprehensive Income (Tables)
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Jun. 30, 2011
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Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Comprehensive Income (Loss) | The Company’s comprehensive income is shown below:
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Supplemental Guarantor Information (Details) (USD $)
In Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2011
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Jun. 30, 2010
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Jun. 30, 2011
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Jun. 30, 2010
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Dec. 31, 2010
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Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | $ 367.5 | $ 338.6 | $ 728.3 | $ 662.3 | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | 289.9 | 268.8 | 564.3 | 510.1 | |
Operating income | 77.6 | 69.8 | 164.0 | 152.2 | |
Interest expense | 53.4 | 42.4 | 107.9 | 79.5 | |
Other expense (income), net | 0 | 0.2 | 0 | 0.1 | |
Income before income taxes | 24.2 | 16.8 | 56.1 | 62.2 | |
Income tax expense (benefit) | 10.7 | 7.2 | 24.7 | 29.8 | |
Net income | 13.5 | 9.6 | 31.4 | 32.4 | |
Preferred stock dividends | 2.6 | 2.6 | 5.2 | 5.2 | |
Net income applicable to common shareowners | 10.9 | 7.0 | 26.2 | 27.2 | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 90.1 | 17.1 | 90.1 | 17.1 | |
Other current assets | 3.2 | 3.2 | 0.9 | ||
Total current assets | 339.7 | 339.7 | 322.9 | ||
Property, plant and equipment, net | 1,296.1 | 1,296.1 | 1,264.4 | ||
Other noncurrent assets | 64.6 | 64.6 | 66.4 | ||
Total assets | 2,658.5 | 2,658.5 | 2,653.6 | ||
Current portion of long-term debt | 17.5 | 17.5 | 16.5 | ||
Accounts payable | 95.6 | 95.6 | 110.2 | ||
Other current liabilities | 38.5 | 38.5 | 44.8 | ||
Total current liabilities | 309.2 | 309.2 | 328.7 | ||
Long-term debt, less current portion | 2,506.9 | 2,506.9 | 2,507.1 | ||
Other noncurrent liabilities | 165.5 | 165.5 | 152.5 | ||
Total liabilities | 3,292.1 | 3,292.1 | 3,321.4 | ||
Shareowners' equity (deficit) | (633.6) | (633.6) | (667.8) | ||
Total liabilities and shareowners' deficit | 2,658.5 | 2,658.5 | 2,653.6 | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | 117.9 | 125.4 | |||
Capital expenditures | (92.5) | (58.2) | |||
Acquisitions, net of cash acquired | 0 | (525.0) | |||
Other investing activities | (0.2) | 0.4 | |||
Net cash used in investing activities | (92.7) | (582.8) | |||
Proceeds from issuance of long-term debt, net of financing costs | 0 | 1,351.3 | |||
Decrease in receivables facility, net | 0.4 | (75.9) | |||
Repayment of debt | (6.2) | (785.1) | |||
Other financing activities | (0.6) | (0.9) | |||
Net cash (used in) provided by financing activities | (12.4) | 451.5 | |||
Net increase (decrease) in cash and cash equivalents | 12.8 | (5.9) | |||
Cash and cash equivalents at beginning of year | 77.3 | 23.0 | |||
Cash and cash equivalents at end of period | 90.1 | 17.1 | 90.1 | 17.1 | |
Parent Company [Member] | Notes guaranteed by parent [Member]
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Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | 0 | 0 | 0 | 0 | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | 7.0 | 13.4 | 13.0 | 19.1 | |
Operating income | (7.0) | (13.4) | (13.0) | (19.1) | |
Interest expense | 47.1 | 36.6 | 95.2 | 67.7 | |
Other expense (income), net | (10.6) | 8.2 | (22.1) | 5.7 | |
Income before income taxes | (43.5) | (58.2) | (86.1) | (92.5) | |
Income tax expense (benefit) | (15.6) | (15.1) | (28.9) | (24.7) | |
Equity in earnings of subsidiaries net of tax | 41.4 | 52.7 | 88.6 | 100.2 | |
Net income | 13.5 | 9.6 | 31.4 | 32.4 | |
Preferred stock dividends | 2.6 | 2.6 | 5.2 | 5.2 | |
Net income applicable to common shareowners | 10.9 | 7.0 | 26.2 | 27.2 | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 86.2 | 12.6 | 86.2 | 12.6 | |
Receivables, net | 2.0 | 2.0 | 2.4 | ||
Other current assets | 8.1 | 8.1 | 6.4 | ||
Total current assets | 96.3 | 96.3 | 78.6 | ||
Property, plant and equipment, net | 0.3 | 0.3 | 0.5 | ||
Goodwill and intangibles net | 0 | 0 | 0 | ||
Investments in and advances to subsidiaries | 1,719.4 | 1,719.4 | 1,648.2 | ||
Other noncurrent assets | 359.5 | 359.5 | 363.3 | ||
Total assets | 2,175.5 | 2,175.5 | 2,090.6 | ||
Current portion of long-term debt | 0 | 0 | 0 | ||
Accounts payable | 0.6 | 0.6 | 2.2 | ||
Other current liabilities | 88.2 | 88.2 | 89.1 | ||
Total current liabilities | 88.8 | 88.8 | 91.3 | ||
Long-term debt, less current portion | 2,181.7 | 2,181.7 | 2,181.4 | ||
Other noncurrent liabilities | 321.4 | 321.4 | 344.6 | ||
Intercompany payables | 217.2 | 217.2 | 141.1 | ||
Total liabilities | 2,809.1 | 2,809.1 | 2,758.4 | ||
Shareowners' equity (deficit) | (633.6) | (633.6) | (667.8) | ||
Total liabilities and shareowners' deficit | 2,175.5 | 2,175.5 | 2,090.6 | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | (70.4) | (38.1) | |||
Capital expenditures | 0 | 0 | |||
Acquisitions, net of cash acquired | 0 | ||||
Other investing activities | (0.2) | 0 | |||
Net cash used in investing activities | (0.2) | 0 | |||
Funding between Parent and subsidiaries net | 93.6 | (501.6) | |||
Proceeds from issuance of long-term debt, net of financing costs | 1,318.6 | ||||
Decrease in receivables facility, net | 0 | 0 | |||
Repayment of debt | 0 | (780.3) | |||
Other financing activities | (6.6) | (6.1) | |||
Net cash (used in) provided by financing activities | 87.0 | 30.6 | |||
Net increase (decrease) in cash and cash equivalents | 16.4 | (7.5) | |||
Cash and cash equivalents at beginning of year | 69.8 | 20.1 | |||
Cash and cash equivalents at end of period | 86.2 | 12.6 | 86.2 | 12.6 | |
Parent Company [Member] | Notes guaranteed by subsidiaries [Member]
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Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | 0 | 0 | 0 | 0 | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | 7.0 | 13.4 | 13.0 | 19.1 | |
Operating income | (7.0) | (13.4) | (13.0) | (19.1) | |
Interest expense | 47.1 | 36.6 | 95.2 | 67.7 | |
Other expense (income), net | (10.6) | 8.2 | (22.1) | 5.7 | |
Income before income taxes | (43.5) | (58.2) | (86.1) | (92.5) | |
Income tax expense (benefit) | (15.6) | (15.1) | (28.9) | (24.7) | |
Equity in earnings of subsidiaries net of tax | 41.4 | 52.7 | 88.6 | 100.2 | |
Net income | 13.5 | 9.6 | 31.4 | 32.4 | |
Preferred stock dividends | 2.6 | 2.6 | 5.2 | 5.2 | |
Net income applicable to common shareowners | 10.9 | 7.0 | 26.2 | 27.2 | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 86.2 | 12.6 | 86.2 | 12.6 | |
Receivables, net | 2.0 | 2.0 | 2.4 | ||
Other current assets | 8.1 | 8.1 | 6.4 | ||
Total current assets | 96.3 | 96.3 | 78.6 | ||
Property, plant and equipment, net | 0.3 | 0.3 | 0.5 | ||
Goodwill and intangibles net | 0 | 0 | 0 | ||
Investments in and advances to subsidiaries | 1,719.4 | 1,719.4 | 1,648.2 | ||
Other noncurrent assets | 359.5 | 359.5 | 363.3 | ||
Total assets | 2,175.5 | 2,175.5 | 2,090.6 | ||
Current portion of long-term debt | 0 | 0 | 0 | ||
Accounts payable | 0.6 | 0.6 | 2.2 | ||
Other current liabilities | 88.2 | 88.2 | 89.1 | ||
Total current liabilities | 88.8 | 88.8 | 91.3 | ||
Long-term debt, less current portion | 2,181.7 | 2,181.7 | 2,181.4 | ||
Other noncurrent liabilities | 321.4 | 321.4 | 344.6 | ||
Intercompany payables | 217.2 | 217.2 | 141.1 | ||
Total liabilities | 2,809.1 | 2,809.1 | 2,758.4 | ||
Shareowners' equity (deficit) | (633.6) | (633.6) | (667.8) | ||
Total liabilities and shareowners' deficit | 2,175.5 | 2,175.5 | 2,090.6 | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | (70.4) | (38.1) | |||
Capital expenditures | 0 | 0 | |||
Acquisitions, net of cash acquired | 0 | ||||
Other investing activities | (0.2) | 0 | |||
Net cash used in investing activities | (0.2) | 0 | |||
Funding between Parent and subsidiaries net | 93.6 | (501.6) | |||
Proceeds from issuance of long-term debt, net of financing costs | 1,318.6 | ||||
Decrease in receivables facility, net | 0 | 0 | |||
Repayment of debt | 0 | (780.3) | |||
Other financing activities | (6.6) | (6.1) | |||
Net cash (used in) provided by financing activities | 87.0 | 30.6 | |||
Net increase (decrease) in cash and cash equivalents | 16.4 | (7.5) | |||
Cash and cash equivalents at beginning of year | 69.8 | 20.1 | |||
Cash and cash equivalents at end of period | 86.2 | 12.6 | 86.2 | 12.6 | |
Guarantor Subsidiaries [Member] | Notes guaranteed by subsidiaries [Member]
|
|||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | 230.1 | 199.0 | 456.0 | 382.0 | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | 200.0 | 173.6 | 389.7 | 331.8 | |
Operating income | 30.1 | 25.4 | 66.3 | 50.2 | |
Interest expense | 13.4 | 3.6 | 27.0 | 6.8 | |
Other expense (income), net | 2.8 | 2.2 | 5.3 | 4.1 | |
Income before income taxes | 13.9 | 19.6 | 34.0 | 39.3 | |
Income tax expense (benefit) | 5.5 | 0 | 12.5 | 7.2 | |
Equity in earnings of subsidiaries net of tax | 0 | 0 | 0 | 0 | |
Net income | 8.4 | 19.6 | 21.5 | 32.1 | |
Preferred stock dividends | 0 | 0 | 0 | 0 | |
Net income applicable to common shareowners | 8.4 | 19.6 | 21.5 | 32.1 | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 2.1 | 2.6 | 2.1 | 2.6 | |
Receivables, net | 4.1 | 4.1 | 11.2 | ||
Other current assets | 32.2 | 32.2 | 34.4 | ||
Total current assets | 38.4 | 38.4 | 51.3 | ||
Property, plant and equipment, net | 661.5 | 661.5 | 640.2 | ||
Goodwill and intangibles net | 565.5 | 565.5 | 575.1 | ||
Investments in and advances to subsidiaries | 0 | 0 | 0 | ||
Other noncurrent assets | 225.2 | 225.2 | 219.5 | ||
Total assets | 1,490.6 | 1,490.6 | 1,486.1 | ||
Current portion of long-term debt | 14.9 | 14.9 | 14.3 | ||
Accounts payable | 61.3 | 61.3 | 73.2 | ||
Other current liabilities | 58.4 | 58.4 | 68.1 | ||
Total current liabilities | 134.6 | 134.6 | 155.6 | ||
Long-term debt, less current portion | 111.5 | 111.5 | 111.6 | ||
Other noncurrent liabilities | 181.0 | 181.0 | 157.2 | ||
Intercompany payables | 457.3 | 457.3 | 476.7 | ||
Total liabilities | 884.4 | 884.4 | 901.1 | ||
Shareowners' equity (deficit) | 606.2 | 606.2 | 585.0 | ||
Total liabilities and shareowners' deficit | 1,490.6 | 1,490.6 | 1,486.1 | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | 68.5 | 48.8 | |||
Capital expenditures | (47.4) | (21.3) | |||
Acquisitions, net of cash acquired | (524.9) | ||||
Other investing activities | 0 | 0.2 | |||
Net cash used in investing activities | (47.4) | (546.0) | |||
Funding between Parent and subsidiaries net | (19.6) | 503.1 | |||
Proceeds from issuance of long-term debt, net of financing costs | 0 | ||||
Decrease in receivables facility, net | 0 | 0 | |||
Repayment of debt | (5.1) | (4.1) | |||
Other financing activities | 0 | 0 | |||
Net cash (used in) provided by financing activities | (24.7) | 499.0 | |||
Net increase (decrease) in cash and cash equivalents | (3.6) | 1.8 | |||
Cash and cash equivalents at beginning of year | 5.7 | 0.8 | |||
Cash and cash equivalents at end of period | 2.1 | 2.6 | 2.1 | 2.6 | |
Cincinnati Bell Telephone Company [Member] | Notes guaranteed by parent [Member]
|
|||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | 165.6 | 168.0 | 329.4 | 337.6 | |
Guarantor Obligations, Current Carrying Value | 207.5 | 207.5 | |||
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | 110.8 | 109.4 | 215.5 | 215.5 | |
Operating income | 54.8 | 58.6 | 113.9 | 122.1 | |
Interest expense | 3.5 | 2.9 | 7.0 | 6.3 | |
Other expense (income), net | (0.7) | 1.9 | (0.4) | 3.6 | |
Income before income taxes | 52.0 | 53.8 | 107.3 | 112.2 | |
Income tax expense (benefit) | 19.6 | 22.3 | 40.5 | 46.6 | |
Equity in earnings of subsidiaries net of tax | 0 | 0 | 0 | 0 | |
Net income | 32.4 | 31.5 | 66.8 | 65.6 | |
Preferred stock dividends | 0 | 0 | 0 | 0 | |
Net income applicable to common shareowners | 32.4 | 31.5 | 66.8 | 65.6 | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 1.5 | 1.9 | 1.5 | 1.9 | |
Receivables, net | 0 | 0 | 0.9 | ||
Other current assets | 29.0 | 29.0 | 22.5 | ||
Total current assets | 30.5 | 30.5 | 25.2 | ||
Property, plant and equipment, net | 624.3 | 624.3 | 623.7 | ||
Goodwill and intangibles net | 2.5 | 2.5 | 2.6 | ||
Investments in and advances to subsidiaries | 220.8 | 220.8 | 146.5 | ||
Other noncurrent assets | 8.4 | 8.4 | 9.5 | ||
Total assets | 886.5 | 886.5 | 807.5 | ||
Current portion of long-term debt | 2.3 | 2.3 | 2.2 | ||
Accounts payable | 42.2 | 42.2 | 45.8 | ||
Other current liabilities | 52.0 | 52.0 | 52.3 | ||
Total current liabilities | 96.5 | 96.5 | 100.3 | ||
Long-term debt, less current portion | 213.7 | 213.7 | 214.1 | ||
Other noncurrent liabilities | 105.9 | 105.9 | 89.1 | ||
Intercompany payables | 0 | 0 | 0 | ||
Total liabilities | 416.1 | 416.1 | 403.5 | ||
Shareowners' equity (deficit) | 470.4 | 470.4 | 404.0 | ||
Total liabilities and shareowners' deficit | 886.5 | 886.5 | 807.5 | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | 120.3 | 109.9 | |||
Capital expenditures | (45.1) | (36.9) | |||
Acquisitions, net of cash acquired | (0.1) | ||||
Other investing activities | 0 | 0.2 | |||
Net cash used in investing activities | (45.1) | (36.8) | |||
Funding between Parent and subsidiaries net | (74.4) | (72.6) | |||
Proceeds from issuance of long-term debt, net of financing costs | 0 | ||||
Decrease in receivables facility, net | 0 | 0 | |||
Repayment of debt | (1.1) | (0.7) | |||
Other financing activities | 0 | 0 | |||
Net cash (used in) provided by financing activities | (75.5) | (73.3) | |||
Net increase (decrease) in cash and cash equivalents | (0.3) | (0.2) | |||
Cash and cash equivalents at beginning of year | 1.8 | 2.1 | |||
Cash and cash equivalents at end of period | 1.5 | 1.9 | 1.5 | 1.9 | |
Non-Guarantor Subsidiaries [Member] | Notes guaranteed by parent [Member]
|
|||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | 216.3 | 185.0 | 427.3 | 353.6 | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | 186.5 | 160.4 | 364.2 | 304.4 | |
Operating income | 29.8 | 24.6 | 63.1 | 49.2 | |
Interest expense | 15.4 | 4.9 | 31.2 | 9.5 | |
Other expense (income), net | (1.3) | (1.5) | (3.0) | (2.8) | |
Income before income taxes | 15.7 | 21.2 | 34.9 | 42.5 | |
Income tax expense (benefit) | 6.7 | 0 | 13.1 | 7.9 | |
Equity in earnings of subsidiaries net of tax | 0 | 0 | 0 | 0 | |
Net income | 9.0 | 21.2 | 21.8 | 34.6 | |
Preferred stock dividends | 0 | 0 | 0 | 0 | |
Net income applicable to common shareowners | 9.0 | 21.2 | 21.8 | 34.6 | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 2.4 | 2.6 | 2.4 | 2.6 | |
Receivables, net | 178.0 | 178.0 | 180.9 | ||
Other current assets | 36.4 | 36.4 | 39.0 | ||
Total current assets | 216.8 | 216.8 | 225.6 | ||
Property, plant and equipment, net | 671.5 | 671.5 | 640.2 | ||
Goodwill and intangibles net | 565.5 | 565.5 | 575.1 | ||
Investments in and advances to subsidiaries | 0 | 0 | 0 | ||
Other noncurrent assets | 224.4 | 224.4 | 218.2 | ||
Total assets | 1,678.2 | 1,678.2 | 1,659.1 | ||
Current portion of long-term debt | 15.2 | 15.2 | 14.3 | ||
Accounts payable | 52.8 | 52.8 | 62.2 | ||
Other current liabilities | 55.1 | 55.1 | 64.6 | ||
Total current liabilities | 123.1 | 123.1 | 141.1 | ||
Long-term debt, less current portion | 111.5 | 111.5 | 111.6 | ||
Other noncurrent liabilities | 191.0 | 191.0 | 156.8 | ||
Intercompany payables | 588.9 | 588.9 | 612.5 | ||
Total liabilities | 1,014.5 | 1,014.5 | 1,022.0 | ||
Shareowners' equity (deficit) | 663.7 | 663.7 | 637.1 | ||
Total liabilities and shareowners' deficit | 1,678.2 | 1,678.2 | 1,659.1 | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | 68.0 | 53.6 | |||
Capital expenditures | (47.4) | (21.3) | |||
Acquisitions, net of cash acquired | (524.9) | ||||
Other investing activities | 0 | 0.2 | |||
Net cash used in investing activities | (47.4) | (546.0) | |||
Funding between Parent and subsidiaries net | (19.2) | 574.2 | |||
Proceeds from issuance of long-term debt, net of financing costs | 0 | ||||
Decrease in receivables facility, net | 0.4 | (75.9) | |||
Repayment of debt | (5.1) | (4.1) | |||
Other financing activities | 0 | 0 | |||
Net cash (used in) provided by financing activities | (23.9) | 494.2 | |||
Net increase (decrease) in cash and cash equivalents | (3.3) | 1.8 | |||
Cash and cash equivalents at beginning of year | 5.7 | 0.8 | |||
Cash and cash equivalents at end of period | 2.4 | 2.6 | 2.4 | 2.6 | |
Non-Guarantor Subsidiaries [Member] | Notes guaranteed by subsidiaries [Member]
|
|||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | 151.8 | 154.0 | 300.7 | 309.2 | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | 97.3 | 96.2 | 190.0 | 188.1 | |
Operating income | 54.5 | 57.8 | 110.7 | 121.1 | |
Interest expense | 5.5 | 4.2 | 11.2 | 9.0 | |
Other expense (income), net | (4.8) | (1.8) | (8.7) | (3.3) | |
Income before income taxes | 53.8 | 55.4 | 108.2 | 115.4 | |
Income tax expense (benefit) | 20.8 | 22.3 | 41.1 | 47.3 | |
Equity in earnings of subsidiaries net of tax | 0 | 0 | 0 | 0 | |
Net income | 33.0 | 33.1 | 67.1 | 68.1 | |
Preferred stock dividends | 0 | 0 | 0 | 0 | |
Net income applicable to common shareowners | 33.0 | 33.1 | 67.1 | 68.1 | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 1.8 | 1.9 | 1.8 | 1.9 | |
Receivables, net | 173.9 | 173.9 | 170.6 | ||
Other current assets | 33.2 | 33.2 | 27.1 | ||
Total current assets | 208.9 | 208.9 | 199.5 | ||
Property, plant and equipment, net | 634.3 | 634.3 | 623.7 | ||
Goodwill and intangibles net | 2.5 | 2.5 | 2.6 | ||
Investments in and advances to subsidiaries | 211.7 | 211.7 | 134.7 | ||
Other noncurrent assets | 7.6 | 7.6 | 8.2 | ||
Total assets | 1,065.0 | 1,065.0 | 968.7 | ||
Current portion of long-term debt | 2.6 | 2.6 | 2.2 | ||
Accounts payable | 33.7 | 33.7 | 34.8 | ||
Other current liabilities | 48.7 | 48.7 | 48.8 | ||
Total current liabilities | 85.0 | 85.0 | 85.8 | ||
Long-term debt, less current portion | 213.7 | 213.7 | 214.1 | ||
Other noncurrent liabilities | 115.9 | 115.9 | 88.7 | ||
Intercompany payables | 145.2 | 145.2 | 148.1 | ||
Total liabilities | 559.8 | 559.8 | 536.7 | ||
Shareowners' equity (deficit) | 505.2 | 505.2 | 432.0 | ||
Total liabilities and shareowners' deficit | 1,065.0 | 1,065.0 | 968.7 | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | 119.8 | 114.7 | |||
Capital expenditures | (45.1) | (36.9) | |||
Acquisitions, net of cash acquired | (0.1) | ||||
Other investing activities | 0 | 0.2 | |||
Net cash used in investing activities | (45.1) | (36.8) | |||
Funding between Parent and subsidiaries net | (74.0) | (1.5) | |||
Proceeds from issuance of long-term debt, net of financing costs | 0 | ||||
Decrease in receivables facility, net | 0.4 | (75.9) | |||
Repayment of debt | (1.1) | (0.7) | |||
Other financing activities | 0 | 0 | |||
Net cash (used in) provided by financing activities | (74.7) | (78.1) | |||
Net increase (decrease) in cash and cash equivalents | 0 | (0.2) | |||
Cash and cash equivalents at beginning of year | 1.8 | 2.1 | |||
Cash and cash equivalents at end of period | 1.8 | 1.9 | 1.8 | 1.9 | |
Consolidation, Eliminations [Member] | Notes guaranteed by parent [Member]
|
|||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | (14.4) | (14.4) | (28.4) | (28.9) | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | (14.4) | (14.4) | (28.4) | (28.9) | |
Operating income | 0 | 0 | 0 | 0 | |
Interest expense | (12.6) | (2.0) | (25.5) | (4.0) | |
Other expense (income), net | 12.6 | 2.0 | 25.5 | 4.0 | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |
Equity in earnings of subsidiaries net of tax | (41.4) | (52.7) | (88.6) | (100.2) | |
Net income | (41.4) | (52.7) | (88.6) | (100.2) | |
Preferred stock dividends | 0 | 0 | 0 | 0 | |
Net income applicable to common shareowners | (41.4) | (52.7) | (88.6) | (100.2) | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Receivables, net | 0 | 0 | 0 | ||
Other current assets | (3.9) | (3.9) | (6.5) | ||
Total current assets | (3.9) | (3.9) | (6.5) | ||
Property, plant and equipment, net | 0 | 0 | 0 | ||
Goodwill and intangibles net | 0 | 0 | 0 | ||
Investments in and advances to subsidiaries | (1,940.2) | (1,940.2) | (1,794.7) | ||
Other noncurrent assets | (137.6) | (137.6) | (102.4) | ||
Total assets | (2,081.7) | (2,081.7) | (1,903.6) | ||
Current portion of long-term debt | 0 | 0 | 0 | ||
Accounts payable | 0 | 0 | 0 | ||
Other current liabilities | 0.8 | 0.8 | (4.0) | ||
Total current liabilities | 0.8 | 0.8 | (4.0) | ||
Long-term debt, less current portion | 0 | 0 | 0 | ||
Other noncurrent liabilities | (142.3) | (142.3) | (104.9) | ||
Intercompany payables | (806.1) | (806.1) | (753.6) | ||
Total liabilities | (947.6) | (947.6) | (862.5) | ||
Shareowners' equity (deficit) | (1,134.1) | (1,134.1) | (1,041.1) | ||
Total liabilities and shareowners' deficit | (2,081.7) | (2,081.7) | (1,903.6) | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | 0 | 0 | |||
Capital expenditures | 0 | 0 | |||
Other investing activities | 0 | 0 | |||
Net cash used in investing activities | 0 | 0 | |||
Funding between Parent and subsidiaries net | 0 | 0 | |||
Decrease in receivables facility, net | 0 | 0 | |||
Repayment of debt | 0 | 0 | |||
Other financing activities | 0 | 0 | |||
Net cash (used in) provided by financing activities | 0 | 0 | |||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of year | 0 | 0 | |||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | |
Consolidation, Eliminations [Member] | Notes guaranteed by subsidiaries [Member]
|
|||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | (14.4) | (14.4) | (28.4) | (28.9) | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | (14.4) | (14.4) | (28.4) | (28.9) | |
Operating income | 0 | 0 | 0 | 0 | |
Interest expense | (12.6) | (2.0) | (25.5) | (4.0) | |
Other expense (income), net | 12.6 | 2.0 | 25.5 | 4.0 | |
Income before income taxes | 0 | 0 | 0 | 0 | |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |
Equity in earnings of subsidiaries net of tax | (41.4) | (52.7) | (88.6) | (100.2) | |
Net income | (41.4) | (52.7) | (88.6) | (100.2) | |
Preferred stock dividends | 0 | 0 | 0 | 0 | |
Net income applicable to common shareowners | (41.4) | (52.7) | (88.6) | (100.2) | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Receivables, net | 0 | 0 | 0 | ||
Other current assets | (3.9) | (3.9) | (6.5) | ||
Total current assets | (3.9) | (3.9) | (6.5) | ||
Property, plant and equipment, net | 0 | 0 | 0 | ||
Goodwill and intangibles net | 0 | 0 | 0 | ||
Investments in and advances to subsidiaries | (1,931.1) | (1,931.1) | (1,782.9) | ||
Other noncurrent assets | (137.6) | (137.6) | (102.4) | ||
Total assets | (2,072.6) | (2,072.6) | (1,891.8) | ||
Current portion of long-term debt | 0 | 0 | 0 | ||
Accounts payable | 0 | 0 | 0 | ||
Other current liabilities | 0.8 | 0.8 | (4.0) | ||
Total current liabilities | 0.8 | 0.8 | (4.0) | ||
Long-term debt, less current portion | 0 | 0 | 0 | ||
Other noncurrent liabilities | (142.3) | (142.3) | (104.9) | ||
Intercompany payables | (819.7) | (819.7) | (765.9) | ||
Total liabilities | (961.2) | (961.2) | (874.8) | ||
Shareowners' equity (deficit) | (1,111.4) | (1,111.4) | (1,017.0) | ||
Total liabilities and shareowners' deficit | (2,072.6) | (2,072.6) | (1,891.8) | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | 0 | 0 | |||
Capital expenditures | 0 | 0 | |||
Acquisitions, net of cash acquired | 0 | ||||
Other investing activities | 0 | 0 | |||
Net cash used in investing activities | 0 | 0 | |||
Funding between Parent and subsidiaries net | 0 | 0 | |||
Decrease in receivables facility, net | 0 | 0 | |||
Repayment of debt | 0 | 0 | |||
Other financing activities | 0 | 0 | |||
Net cash (used in) provided by financing activities | 0 | 0 | |||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||
Cash and cash equivalents at beginning of year | 0 | 0 | |||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | |
Notes guaranteed by parent [Member]
|
|||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | 367.5 | 338.6 | 728.3 | 662.3 | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | 289.9 | 268.8 | 564.3 | 510.1 | |
Operating income | 77.6 | 69.8 | 164.0 | 152.2 | |
Interest expense | 53.4 | 42.4 | 107.9 | 79.5 | |
Other expense (income), net | 0 | 10.6 | 0 | 10.5 | |
Income before income taxes | 24.2 | 16.8 | 56.1 | 62.2 | |
Income tax expense (benefit) | 10.7 | 7.2 | 24.7 | 29.8 | |
Equity in earnings of subsidiaries net of tax | 0 | 0 | 0 | 0 | |
Net income | 13.5 | 9.6 | 31.4 | 32.4 | |
Preferred stock dividends | 2.6 | 2.6 | 5.2 | 5.2 | |
Net income applicable to common shareowners | 10.9 | 7.0 | 26.2 | 27.2 | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 90.1 | 17.1 | 90.1 | 17.1 | |
Receivables, net | 180.0 | 180.0 | 184.2 | ||
Other current assets | 69.6 | 69.6 | 61.4 | ||
Total current assets | 339.7 | 339.7 | 322.9 | ||
Property, plant and equipment, net | 1,296.1 | 1,296.1 | 1,264.4 | ||
Goodwill and intangibles net | 568.0 | 568.0 | 577.7 | ||
Investments in and advances to subsidiaries | 0 | 0 | 0 | ||
Other noncurrent assets | 454.7 | 454.7 | 488.6 | ||
Total assets | 2,658.5 | 2,658.5 | 2,653.6 | ||
Current portion of long-term debt | 17.5 | 17.5 | 16.5 | ||
Accounts payable | 95.6 | 95.6 | 110.2 | ||
Other current liabilities | 196.1 | 196.1 | 202.0 | ||
Total current liabilities | 309.2 | 309.2 | 328.7 | ||
Long-term debt, less current portion | 2,506.9 | 2,506.9 | 2,507.1 | ||
Other noncurrent liabilities | 476.0 | 476.0 | 485.6 | ||
Intercompany payables | 0 | 0 | 0 | ||
Total liabilities | 3,292.1 | 3,292.1 | 3,321.4 | ||
Shareowners' equity (deficit) | (633.6) | (633.6) | (667.8) | ||
Total liabilities and shareowners' deficit | 2,658.5 | 2,658.5 | 2,653.6 | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | 117.9 | 125.4 | |||
Capital expenditures | (92.5) | (58.2) | |||
Acquisitions, net of cash acquired | (525.0) | ||||
Other investing activities | (0.2) | 0.4 | |||
Net cash used in investing activities | (92.7) | (582.8) | |||
Funding between Parent and subsidiaries net | 0 | 0 | |||
Proceeds from issuance of long-term debt, net of financing costs | 1,318.6 | ||||
Decrease in receivables facility, net | 0.4 | (75.9) | |||
Repayment of debt | (6.2) | (785.1) | |||
Other financing activities | (6.6) | (6.1) | |||
Net cash (used in) provided by financing activities | (12.4) | 451.5 | |||
Net increase (decrease) in cash and cash equivalents | 12.8 | (5.9) | |||
Cash and cash equivalents at beginning of year | 77.3 | 23.0 | |||
Cash and cash equivalents at end of period | 90.1 | 17.1 | 90.1 | 17.1 | |
Notes guaranteed by subsidiaries [Member]
|
|||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenue, Net | 367.5 | 338.6 | 728.3 | 662.3 | |
Condensed Consolidating Statements of Operations [Abstract] | |||||
Operating costs and expenses | 289.9 | 268.8 | 564.3 | 510.1 | |
Operating income | 77.6 | 69.8 | 164.0 | 152.2 | |
Interest expense | 53.4 | 42.4 | 107.9 | 79.5 | |
Other expense (income), net | 0 | 10.6 | 0 | 10.5 | |
Income before income taxes | 24.2 | 16.8 | 56.1 | 62.2 | |
Income tax expense (benefit) | 10.7 | 7.2 | 24.7 | 29.8 | |
Equity in earnings of subsidiaries net of tax | 0 | 0 | 0 | 0 | |
Net income | 13.5 | 9.6 | 31.4 | 32.4 | |
Preferred stock dividends | 2.6 | 2.6 | 5.2 | 5.2 | |
Net income applicable to common shareowners | 10.9 | 7.0 | 26.2 | 27.2 | |
Condensed Consolidating Balance Sheets [Abstract] | |||||
Cash and cash equivalents | 90.1 | 17.1 | 90.1 | 17.1 | |
Receivables, net | 180.0 | 180.0 | 184.2 | ||
Other current assets | 69.6 | 69.6 | 61.4 | ||
Total current assets | 339.7 | 339.7 | 322.9 | ||
Property, plant and equipment, net | 1,296.1 | 1,296.1 | 1,264.4 | ||
Goodwill and intangibles net | 568.0 | 568.0 | 577.7 | ||
Investments in and advances to subsidiaries | 0 | 0 | 0 | ||
Other noncurrent assets | 454.7 | 454.7 | 488.6 | ||
Total assets | 2,658.5 | 2,658.5 | 2,653.6 | ||
Current portion of long-term debt | 17.5 | 17.5 | 16.5 | ||
Accounts payable | 95.6 | 95.6 | 110.2 | ||
Other current liabilities | 196.1 | 196.1 | 202.0 | ||
Total current liabilities | 309.2 | 309.2 | 328.7 | ||
Long-term debt, less current portion | 2,506.9 | 2,506.9 | 2,507.1 | ||
Other noncurrent liabilities | 476.0 | 476.0 | 485.6 | ||
Intercompany payables | 0 | 0 | 0 | ||
Total liabilities | 3,292.1 | 3,292.1 | 3,321.4 | ||
Shareowners' equity (deficit) | (633.6) | (633.6) | (667.8) | ||
Total liabilities and shareowners' deficit | 2,658.5 | 2,658.5 | 2,653.6 | ||
Condensed Consolidating Statements of Cash Flows [Abstract] | |||||
Cash flows provided by (used in) operating activities | 117.9 | 125.4 | |||
Capital expenditures | (92.5) | (58.2) | |||
Acquisitions, net of cash acquired | (525.0) | ||||
Other investing activities | (0.2) | 0.4 | |||
Net cash used in investing activities | (92.7) | (582.8) | |||
Funding between Parent and subsidiaries net | 0 | 0 | |||
Proceeds from issuance of long-term debt, net of financing costs | 1,318.6 | ||||
Decrease in receivables facility, net | 0.4 | (75.9) | |||
Repayment of debt | (6.2) | (785.1) | |||
Other financing activities | (6.6) | (6.1) | |||
Net cash (used in) provided by financing activities | (12.4) | 451.5 | |||
Net increase (decrease) in cash and cash equivalents | 12.8 | (5.9) | |||
Cash and cash equivalents at beginning of year | 77.3 | 23.0 | |||
Cash and cash equivalents at end of period | $ 90.1 | $ 17.1 | $ 90.1 | $ 17.1 |
Earnings Per Common Share - Computation of EPS (Details) (USD $)
In Millions, except Per Share data |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2011
|
Jun. 30, 2010
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Jun. 30, 2011
|
Jun. 30, 2010
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Earnings Per Share Reconciliation [Abstract] | ||||
Net income | $ 13.5 | $ 9.6 | $ 31.4 | $ 32.4 |
Preferred stock dividends | 2.6 | 2.6 | 5.2 | 5.2 |
Net income applicable to common shareowners | 10.9 | 7.0 | 26.2 | 27.2 |
Net income applicable to common shareowners, diluted | $ 10.9 | $ 7.0 | $ 26.2 | $ 27.2 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||
Weighted average common shares outstanding - basic | 198.0 | 201.0 | 197.9 | 200.9 |
Warrants | 0.2 | 1.6 | 0.1 | 1.3 |
Stock-based compensation arrangements | 2.8 | 3.1 | 2.7 | 3.0 |
Weighted average common shares outstanding - diluted | 201.0 | 205.7 | 200.7 | 205.2 |
Earnings per share, basic | $ 0.06 | $ 0.03 | $ 0.13 | $ 0.14 |
Earnings per share, diluted | $ 0.05 | $ 0.03 | $ 0.13 | $ 0.13 |
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
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Cash flows from operating activities | ||
Net income | $ 31.4 | $ 32.4 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation and amortization | 97.2 | 81.5 |
Loss on extinguishment of debt | 0 | 10.4 |
Provision for loss on receivables | 6.7 | 8.0 |
Impairment loss | 1.6 | 0 |
Noncash portion of interest expense | 3.7 | 2.8 |
Deferred income tax provision | 24.6 | 26.4 |
Pension and other postretirement benefits | (12.1) | (1.0) |
Other, net | 0.4 | 0.4 |
Changes in operating assets and liabilities, net of effects of acquisitions | ||
Increase in receivables | (2.6) | (4.5) |
(Increase) decrease in inventory, materials, supplies, prepaids and other current assets | (2.8) | 12.2 |
Decrease in accounts payable | (16.4) | (18.9) |
Decrease in accrued and other current liabilities | (7.6) | (18.9) |
Increase in other noncurrent assets | (0.4) | (2.8) |
Decrease in other noncurrent liabilities | (5.8) | (2.6) |
Net cash provided by operating activities | 117.9 | 125.4 |
Cash flows from investing activities | ||
Capital expenditures | (92.5) | (58.2) |
Acquisitions, net of cash acquired | 0 | (525.0) |
Other, net | (0.2) | 0.4 |
Net cash used in investing activities | (92.7) | (582.8) |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt | 0 | 1,351.3 |
Increase (decrease) in corporate credit and receivables facilities | 0.4 | (75.9) |
Repayment of debt | (6.2) | (785.1) |
Debt Issuance costs | (0.8) | (32.7) |
Dividends paid on preferred stock | (5.2) | (5.2) |
Other, net | (0.6) | (0.9) |
Net cash (used in) provided by financing activities | (12.4) | 451.5 |
Net increase (decrease) in cash and cash equivalents | 12.8 | (5.9) |
Cash and cash equivalents at beginning of year | 77.3 | 23.0 |
Cash and cash equivalents at end of period | 90.1 | 17.1 |
Noncash investing and financing transactions: | ||
Acquisition of property by assuming debt and other noncurrent liabilities | 23.6 | 16.7 |
Acquisition of property on account | $ 13.5 | $ 16.2 |
Debt (Tables)
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Jun. 30, 2011
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Debt Instruments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The Company’s debt consists of the following:
* The face amount of these notes has been adjusted for the unamortized called amounts received on terminated interest rate swaps. |
Restructuring Charges (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | A summary of the activity in these liabilities is presented below:
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Schedule of Employee Separation Liabilities by Segment [Table Text Block] | The liability for employee separations shown in the table above includes future separations to occur under the Company's written plans. As of the end of June 30, 2011 and December 31, 2010 the liability by segment was as follows:
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Acquisition of Cyrus Networks, LLC
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2011
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of Cyrus Networks, LLC | Acquisition of Cyrus Networks, LLC On June 11, 2010, the Company purchased Cyrus Networks, LLC (“CyrusOne”), a data center operator based in Texas, for approximately $526 million, net of cash acquired. CyrusOne is the largest data center colocation provider in Texas, servicing primarily large businesses. CyrusOne is now a wholly-owned subsidiary of the Company. The purchase of CyrusOne has been accounted for as a business combination under the acquisition method. The purchase price allocation has been completed. Goodwill and intangible assets resulting from this acquisition were $269.9 million and $138.0 million, respectively. The results of operations of CyrusOne were included in the consolidated results of operations beginning June 11, 2010, and are included in the Data Center Colocation segment. For the three and six months ended June 30, 2011, CyrusOne contributed revenue of $22.7 million and $44.8 million, respectively, and operating income of $6.5 million and $12.5 million, respectively. The following unaudited pro forma consolidated results assume the acquisition of CyrusOne was completed as of the beginning of 2010:
These results include adjustments related to the purchase price allocation and financing of the acquisition, primarily to reduce revenue for the elimination of the unearned revenue liability in the opening balance sheet, to increase depreciation and amortization associated with the higher values of property, plant and equipment and identifiable intangible assets, to increase interest expense for the additional debt incurred to complete the acquisition, and to reflect the related income tax effect and change in tax status. The pro forma information does not necessarily reflect the actual results of operations had the acquisition been consummated at the beginning of the annual reporting period indicated nor is it necessarily indicative of future operating results. The pro forma information does not include any (i) potential revenue enhancements, cost synergies or other operating efficiencies that could result from the acquisition or (ii) transaction or integration costs relating to the acquisition. |
Supplemental Guarantor Information
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Supplemental Guarantor Information Abstract | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Guarantor Information |
Cincinnati Bell Telephone Notes Cincinnati Bell Telephone Company LLC (“CBT”), a wholly-owned subsidiary of Cincinnati Bell Inc. (the “Parent Company”), had $207.5 million in notes outstanding at June 30, 2011 that are guaranteed by the Parent Company and no other subsidiaries of the Parent Company. The guarantee is full and unconditional. The Parent Company’s subsidiaries generate substantially all of its income and cash flow and generally distribute or advance the funds necessary to meet the Parent Company’s debt service obligations. The following information sets forth the Condensed Consolidating Statements of Operations for the three and six months ended June 30, 2011 and 2010, Condensed Consolidating Balance Sheets as of June 30, 2011 and December 31, 2010, and Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2011 and 2010, of (1) the Parent Company, as the guarantor, (2) CBT, as the issuer, and (3) the non-guarantor subsidiaries on a combined basis:
Condensed Consolidating Statements of Cash Flows
8 3/8% Senior Notes due 2020, 8 3/4% Senior Subordinated Notes due 2018, 8 1/4% Senior Notes due 2017, and 7% Senior Notes due 2015 The Parent Company’s 8 3/8% Senior Notes due 2020, 8 3/4% Senior Subordinated Notes due 2018, 8 1/4% Senior Notes due 2017, and 7% Senior Notes due 2015 are guaranteed by the following subsidiaries: Cincinnati Bell Entertainment Inc., Cincinnati Bell Complete Protection Inc., Cincinnati Bell Any Distance Inc., Cincinnati Bell Telecommunications Services LLC, Cincinnati Bell Wireless LLC, GramTel Inc., CBTS Software LLC, Cyrus Networks, LLC, Cincinnati Bell Shared Services LLC, Cincinnati Bell Technology Solutions Inc., Cincinnati Bell Any Distance of Virginia LLC, eVolve Business Solutions LLC and Cincinnati Bell Data Centers Inc. The Parent Company owns directly or indirectly 100% of each guarantor and each guarantee is full and unconditional and joint and several. The Parent Company’s subsidiaries generate substantially all of its income and cash flow and generally distribute or advance the funds necessary to meet the Parent Company’s debt service obligations. The following information sets forth the Condensed Consolidating Statements of Operations for the three and six months ended June 30, 2011 and 2010, Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2011 and 2010, and the Condensed Consolidating Balance Sheets as of June 30, 2011 and December 31, 2010 of (1) the Parent Company, as the issuer, (2) the guarantor subsidiaries on a combined basis, and (3) the non-guarantor subsidiaries on a combined basis:
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Financial Instruments (Details) (USD $)
In Millions |
Jun. 30, 2011
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Dec. 31, 2010
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Carrying (Reported) Amount, Fair Value Disclosure [Member]
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Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | $ 2,524.4 | $ 2,523.6 |
Estimate of Fair Value, Fair Value Disclosure [Member]
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Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value disclosure | $ 2,466.6 | $ 2,416.9 |
Earnings Per Common Share (Tables)
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Jun. 30, 2011
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table shows the computation of the basic and diluted EPS:
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Condensed Consolidated Statements of Operations (USD $)
In Millions, except Per Share data |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2011
|
Jun. 30, 2010
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Jun. 30, 2011
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Jun. 30, 2010
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Revenue | ||||
Services | $ 314.8 | $ 294.1 | $ 626.2 | $ 583.9 |
Products | 52.7 | 44.5 | 102.1 | 78.4 |
Total revenue | 367.5 | 338.6 | 728.3 | 662.3 |
Costs and expenses | ||||
Cost of services, excluding items below | 114.8 | 99.5 | 225.5 | 196.9 |
Cost of products sold, excluding items below | 54.2 | 46.5 | 102.7 | 83.0 |
Selling, general and administrative | 66.6 | 67.2 | 131.2 | 134.4 |
Depreciation and amortization | 48.8 | 41.3 | 97.2 | 81.5 |
Restructuring charges | 0 | 5.2 | 0 | 5.2 |
Curtailment loss | 4.2 | 0 | 4.2 | 0 |
Acquisition costs | 0.8 | 9.1 | 1.9 | 9.1 |
Asset impairment | 0.5 | 0 | 1.6 | 0 |
Total operating costs and expenses | 289.9 | 268.8 | 564.3 | 510.1 |
Operating income | 77.6 | 69.8 | 164.0 | 152.2 |
Interest expense | 53.4 | 42.4 | 107.9 | 79.5 |
Loss on extinguishment of debt | 0 | 10.4 | 0 | 10.4 |
Other expense, net | 0 | 0.2 | 0 | 0.1 |
Income before income taxes | 24.2 | 16.8 | 56.1 | 62.2 |
Income tax expense | 10.7 | 7.2 | 24.7 | 29.8 |
Net income | 13.5 | 9.6 | 31.4 | 32.4 |
Preferred stock dividends | 2.6 | 2.6 | 5.2 | 5.2 |
Net income applicable to common shareowners | $ 10.9 | $ 7.0 | $ 26.2 | $ 27.2 |
Earnings Per Share, Basic | $ 0.06 | $ 0.03 | $ 0.13 | $ 0.14 |
Earnings Per Share, Diluted | $ 0.05 | $ 0.03 | $ 0.13 | $ 0.13 |
Pension and Postretirement Plans (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Capitalized portion of defined benefit contribution percent | 9.00% | 9.00% | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | $ 4.2 | $ 0 | $ 4.2 | $ 0 |
Pension Plans, Defined Benefit [Member]
|
||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 20.1 | 20.1 | ||
Defined Benefit Plan, Contributions by Employer | 13.2 | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Defined Benefit Plan, Service Cost | 1.3 | 1.3 | 2.6 | 2.6 |
Defined Benefit Plan, Interest Cost | 6.2 | 6.7 | 12.4 | 13.4 |
Defined Benefit Plan, Expected Return on Plan Assets | (7.3) | (7.5) | (14.6) | (15.0) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0.1 | 0.1 | 0.2 | 0.2 |
Defined Benefit Plan, Amortization of Gains (Losses) | 3.5 | 2.3 | 7.1 | 4.6 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 4.2 | 0 | 4.2 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | 8.0 | 2.9 | 11.9 | 5.8 |
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 22.1 | 22.1 | ||
Defined Benefit Plan, Contributions by Employer | 13.9 | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Defined Benefit Plan, Service Cost | 0.1 | 0.1 | 0.2 | 0.2 |
Defined Benefit Plan, Interest Cost | 1.8 | 2.0 | 3.6 | 4.0 |
Defined Benefit Plan, Expected Return on Plan Assets | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | (3.3) | (3.3) | (6.6) | (6.6) |
Defined Benefit Plan, Amortization of Gains (Losses) | 1.6 | 1.3 | 3.2 | 2.6 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 0.2 | $ 0.1 | $ 0.4 | $ 0.2 |
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