10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2018

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 1-8519

CINCINNATI BELL INC.

Ohio	31-1056105
(State of Incorporation)	(I.R.S. Employer Identification No.)

221 East Fourth Street, Cincinnati, Ohio 45202

(Address of principal executive offices) (Zip Code)

(513) 397-9900

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	o
Emerging growth company	o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o No  x

At April 30, 2018, there were 42,397,151 common shares outstanding.

Form 10-Q Part I Cincinnati Bell Inc.

TABLE OF CONTENTS

PART I. Financial Information

Description		Page
Item 1.	Financial Statements
	Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2018 and 2017	1
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended March 31, 2018 and 2017	2
	Condensed Consolidated Balance Sheets (Unaudited) March 31, 2018 and December 31, 2017	3
	Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, 2018 and 2017	4
	Notes to Condensed Consolidated Financial Statements (Unaudited)	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	34
Item 4.	Controls and Procedures	34
	PART II. Other Information
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 3.	Default upon Senior Securities	35
Item 4.	Mine Safety Disclosure	35
Item 5.	Other Information	35
Item 6.	Exhibits	36
	Signatures	37

Form 10-Q Part I Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in millions, except per share amounts)

(Unaudited)

	Three Months Ended
	March 31,
	2018			2017
Revenue	$	295.7		$	249.6
Costs and expenses
Cost of services and products, excluding items below	149.4			124.1
Selling, general and administrative, excluding items below	68.4			55.3
Depreciation and amortization	51.2			45.8
Restructuring and severance related charges	0.3			25.6
Transaction and integration cost	2.2			0.6
Total operating costs and expenses	271.5			251.4
Operating income (loss)	24.2			(1.8		)
Interest expense	30.8			18.0
Other components of pension and postretirement benefit plans expense	3.3			3.2
Gain on sale of Investment in CyrusOne	—			(117.7		)
Other income, net	(0.4		)	(0.4		)
(Loss) income before income taxes	(9.5		)	95.1
Income tax (benefit) expense	(1.2		)	34.5
Net (loss) income	(8.3		)	60.6
Preferred stock dividends	2.6			2.6
Net (loss) income applicable to common shareowners	$	(10.9	)	$	58.0
Basic net (loss) earnings per common share	$	(0.26	)	$	1.38
Diluted net (loss) earnings per common share	$	(0.26	)	$	1.37

The accompanying notes are an integral part of the condensed consolidated financial statements.

1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in millions)

(Unaudited)

	Three Months Ended
	March 31,
	2018			2017
Net (loss) income	$	(8.3	)	$	60.6
Other comprehensive income (loss), net of tax:
Unrealized gains on Investment in CyrusOne, net of tax of $4.4	—			8.3
Reclassification adjustment for gain on sale of Investment in CyrusOne included in net income, net of tax of ($41.3)	—			(76.4		)
Foreign currency translation loss	(1.8		)	—
Defined benefit plans:
Amortization of prior service benefits included in net income, net of tax of ($0.2), ($0.4)	(0.6		)	(0.7		)
Amortization of net actuarial loss included in net income, net of tax of $1.2, $2.0	4.1			3.5
Total other comprehensive income (loss)	1.7			(65.3		)
Total comprehensive loss	$	(6.6	)	$	(4.7	)

The accompanying notes are an integral part of the condensed consolidated financial statements.

2

Form 10-Q Part I Cincinnati Bell Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in millions, except share amounts)

(Unaudited)

	March 31,			December 31,
	2018			2017
Assets
Current assets
Cash and cash equivalents	$	32.4		$	17.8
Restricted Cash	379.8			378.7
Receivables, less allowances of $9.6 and $10.4	232.4			239.8
Inventory, materials and supplies	45.0			44.3
Prepaid expenses	23.7			22.2
Other current assets	9.4			7.6
Total current assets	722.7			710.4
Property, plant and equipment, net	1,118.8			1,129.0
Goodwill	150.7			151.0
Intangible assets, net	128.7			132.3
Deferred income tax assets	13.1			12.2
Other noncurrent assets	52.0			52.7
Total assets	$	2,186.0		$	2,187.6
Liabilities and Shareowners’ Deficit
Current liabilities
Current portion of long-term debt	$	18.2		$	18.4
Accounts payable	195.7			185.6
Unearned revenue and customer deposits	39.3			36.3
Accrued taxes	18.0			21.2
Accrued interest	33.1			29.9
Accrued payroll and benefits	39.5			28.7
Other current liabilities	29.2			37.2
Total current liabilities	373.0			357.3
Long-term debt, less current portion	1,726.9			1,729.3
Pension and postretirement benefit obligations	173.2			177.5
Deferred income tax liabilities	12.2			11.2
Other noncurrent liabilities	28.6			30.2
Total liabilities	2,313.9			2,305.5
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 March 31, 2018 and December 31, 2017; liquidation preference $1,000 per share ($50 per depositary share)	129.4			129.4
Common shares, $.01 par value; 96,000,000 shares authorized; 42,394,151 and 42,197,965 shares issued and outstanding at March 31, 2018 and December 31, 2017	0.4			0.4
Additional paid-in capital	2,562.2			2,565.6
Accumulated deficit	(2,647.9		)	(2,639.6		)
Accumulated other comprehensive loss	(172.0		)	(173.7		)
Total shareowners’ deficit	(127.9		)	(117.9		)
Total liabilities and shareowners’ deficit	$	2,186.0		$	2,187.6

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

Form 10-Q Part I Cincinnati Bell Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in millions)(Unaudited)

	Three Months Ended
	March 31,
	2018			2017
Cash flows from operating activities
Net (loss) income	$	(8.3	)	$	60.6
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	51.2			45.8
Gain on sale of Investment in CyrusOne	—			(117.7		)
Provision for loss on receivables	1.0			1.8
Noncash portion of interest expense	0.8			0.5
Deferred income taxes	(1.2		)	34.5
Pension and Other postretirement payments less than expense	0.4			1.0
Stock-based compensation	1.2			2.9
Other, net	(2.0		)	(1.2		)
Changes in operating assets and liabilities, net of effects of acquisitions:
Decrease in receivables	6.5			14.6
Increase in inventory, materials, supplies, prepaid expenses and other current assets	(4.4		)	(5.6		)
Increase in accounts payable	3.6			5.8
Increase in accrued and other current liabilities	9.6			7.1
Decrease in other noncurrent assets	0.5			0.5
(Decrease) increase in other noncurrent liabilities	(0.4		)	3.3
Net cash provided by operating activities	58.5			53.9
Cash flows from investing activities
Capital expenditures	(32.7		)	(55.1		)
Proceeds from sale of Investment in CyrusOne	—			140.7
Acquisitions of businesses	(2.8		)	(9.2		)
Other, net	(0.1		)	0.5
Net cash (used in) provided by investing activities	(35.6		)	76.9
Cash flows from financing activities
Net decrease in corporate credit and receivables facilities with initial maturities less than 90 days	—			(89.5		)
Repayment of debt	(3.0		)	(2.1		)
Debt issuance costs	(0.4		)	(0.5		)
Dividends paid on preferred stock	(2.6		)	(2.6		)
Other, net	(2.0		)	(1.1		)
Net cash used in financing activities	(8.0		)	(95.8		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.8			—
Net increase in cash, cash equivalents and restricted cash	15.7			35.0
Cash, cash equivalents and restricted cash at beginning of period	396.5			9.7
Cash, cash equivalents and restricted cash at end of period	$	412.2		$	44.7
Noncash investing and financing transactions:
Acquisition of property by assuming debt and other noncurrent liabilities	$	—		$	6.9
Acquisition of property on account	$	17.6		$	27.3

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

Form 10-Q Part I Cincinnati Bell Inc.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Description of Business and Accounting Policies

Description of Business — Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell", "we", "our", "us" or the "Company") provides diversified telecommunications and technology services. The Company generates a large portion of its revenue by serving customers in the Greater Cincinnati and Dayton, Ohio areas. An economic downturn or natural disaster occurring in this, or a portion of this, limited operating territory could have a disproportionate effect on our business, financial condition, results of operations and cash flows compared to similar companies of a national scope and similar companies operating in different geographic areas.

The Company has receivables with one large customer, General Electric Company, that makes up 10% of the outstanding accounts receivable balance as of March 31, 2018 and December 31, 2017. Revenue derived from foreign operations is approximately 6% of consolidated revenue for the three months ended March 31, 2018.

Merger Activity - In July 2017, the Company announced its plans to acquire Hawaiian Telcom Holdco, Inc. (“Hawaiian Telcom”) through a merger. On April 30, 2018, the Hawaii Public Utilities Commission issued a decision and order approving the merger, subject to the parties’ compliance with certain conditions. Accordingly, the closing of the merger is subject only to the receipt of regulatory approval from the Federal Communications Commission and the satisfaction of other customary closing conditions. We expect the merger to close in the second quarter of 2018.

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, other comprehensive income, 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.

Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers and ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standards. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation, as a result of adopting the new standards.

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups Competitive Local Exchange Carrier ("CLEC") revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. Accordingly, the Company recast the previously reported 2017 segment disclosures. See Note 11 for all required disclosures.

The Condensed Consolidated Balance Sheet as of December 31, 2017 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 2017 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results expected for the full year or any other interim period.

Business Combinations — In accounting for business combinations, we apply the accounting requirements of ASC 805, “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing estimates of fair value of acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition and transaction costs are expensed as incurred. See Note 4 for required disclosures related to mergers and acquisitions.

5

Form 10-Q Part I Cincinnati Bell Inc.

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.

Investment in CyrusOne — In the first quarter of 2017, the Company sold its remaining 2.8 million shares of CyrusOne Inc. common stock for net proceeds totaling $140.7 million that resulted in a realized gain of $117.7 million. As of March 31, 2017, we no longer have an investment in CyrusOne Inc.

Income and Operating Taxes

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.

During 2017, the Company re-classed $14.9 million of Alternative Minimum Tax ("AMT") refundable tax credits from "Deferred income taxes, net" to "Receivables" as these credits are expected to be utilized during 2018. Acceleration of the AMT refundable tax credits was the result of the Company's decision to make an election on its 2017 federal income tax return to claim the credits in lieu of claiming bonus depreciation. In addition, new tax legislation enacted in 2017 repealed AMT for corporate tax payers.  The balance of any remaining AMT credits will be refunded over the next 5 years beginning with the return filed in 2019. In the three months ended March 31, 2018, the Company re-classed $0.7 million from "Deferred income taxes, net" to "Receivables" as it expects to receive this portion of the remaining AMT credits in 2019.

Operating taxes — The Company elected to record certain operating taxes such as property, sales, use, and gross receipts taxes including telecommunications surcharges as expenses, primarily within cost of services. These taxes are not included in income tax expense because the amounts to be paid are not dependent on our level of income. Liabilities for audit exposures are established based on management's assessment of the probability of payment. The provision for such liabilities is recognized as either property, plant and equipment, operating tax expense, or depreciation expense depending on the nature of the audit exposure. Upon resolution of an audit, any remaining liability not paid is released against the account in which it was originally recorded. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, at the time of adoption of ASC 606, revenue associated with these charges is excluded from the transaction price.  This approach is consistent with how these taxes were previously recorded under ASC Topic 605.

Recently Issued Accounting Standards — In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows entities to elect to make a one-time reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The ASU is effective for public entities for annual reporting periods beginning after December 15, 2018, and for interim periods within those fiscal years. Early adoption is permitted. The Company early adopted this guidance effective December 31, 2017, resulting in a provisional reclassification adjustment of $32.2 million to "Accumulated deficit" from "Other comprehensive loss" on the Consolidated Balance Sheets. The amount of the reclassification is calculated on the basis of the difference between the historical and newly enacted tax rates on deferred taxes related to our pension and postretirement benefit plans.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation, which amends the scope of modification accounting for share-based payment arrangements. The ASU is effective for public business entities for annual periods beginning after December 15, 2017. The Company prospectively adopted the standard effective January 1, 2018 and has applied the amended guidance to any awards modified on or after this date.

6

Form 10-Q Part I Cincinnati Bell Inc.

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amends the requirements in ASC 715 related to the income statement presentation of the components of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. The ASU requires entities to disaggregate the current service cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement. The other components shall be presented elsewhere in the income statement and outside of income from operations, if such a subtotal is presented, on a retrospective basis as of the date of adoption. In addition, only the service cost component of net benefit cost is eligible for capitalization on a prospective basis. The ASU is effective for public business entities for annual periods beginning after December 15, 2017. The Company retrospectively adopted the standard effective January 1, 2018. The Company re-classed $1.7 million and $1.5 million of other components of net benefit cost from "Cost of Services" and "Selling, general and administrative," respectively, to a new line below Operating income, "Other components of pension and postretirement benefit plans expense," on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2017.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow - Classification of Certain Cash Receipts and Cash Payments, which amends ASC 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The FASB issued the ASU with the intent of reducing diversity in practice. The ASU is effective for public entities for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this standard effective January 1, 2018. The adoption of this standard did not have a material effect on the Company’s Consolidated Statement of Cash Flows.

In February 2016, the FASB issued ASU 2016-02, Leases, which represents a wholesale change to lease accounting. The standard introduces a lessee model that brings most leases on the balance sheet as well as aligns certain underlying principles of the new lessor model with those in ASC 606. The ASU is effective for public entities for fiscal years beginning after December 15, 2018. As issued, the standard requires lessors and lessees to use a modified retrospective transition method for existing leases. On January 5, 2018, the FASB issued a proposed ASU that would allow entities to elect a practical expedient when adopting the guidance to not restate their comparative periods in transition as well as providing lessors with a practical expedient to not separate lease and nonlease components if certain criteria are met. Once the ASU is final, the Company plans to elect both practical expedients upon adoption. The Company is in the process of evaluating the impact of adoption of this ASU on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard also includes expanded disclosure requirements that result in an entity providing users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The Company adopted the new standard and all subsequent amendments as of January 1, 2018 using the full retrospective method which requires each prior reporting period presented to be adjusted beginning with this issuance of the Company’s 2018 interim financial statements.

The most significant impact of adopting the new standard is the change to the treatment of hardware revenue in the Infrastructure Solutions category from recording hardware revenue as a principal (gross) to recording revenue as an agent (net). Based on our assessment of ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), issued by the FASB in March 2016, the Company acts as an agent and as such will record hardware sales net of the related cost of products. ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations focusing on a control model rather than a risk and reward model. As a result of adopting ASU 2014-09, revenue and cost of products for the three months ended March 31, 2017 decreased by $28.6 million. Changes in accounting policies related to variable consideration or rebates did not have a material effect on the financial statements. Fulfillment and acquisition costs that are now recorded as an asset and amortized on a monthly basis decreased expense for the three months ended March 31, 2017 by $0.3 million and increased basic earnings per share for the three months ended March 31, 2017 by $0.01. An incremental asset related to fulfillment and acquisition costs of $32.3 million was recorded on the balance sheet as of December 31, 2017, with an offsetting reduction in "Accumulated deficit." As a result of the entry, total contract asset related to fulfillment and acquisition costs was $32.4 million as of December 31, 2017. The impact of these adjustments resulted in a decrease of $7.1 million to "Deferred income tax assets" as of December 31, 2017, with the offset to "Accumulated deficit." See Note 3 for required disclosures as a result of adopting ASC Topic 606.

Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

7

Form 10-Q Part I Cincinnati Bell Inc.

2.    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 stock-based compensation plans or conversion of preferred stock, but only to the extent that they are considered dilutive.

The following table shows the computation of basic and diluted EPS:

	Three Months Ended
	March 31,
(in millions, except per share amounts)	2018			2017
Numerator:
Net (loss) income	$	(8.3	)	$	60.6
Preferred stock dividends	2.6			2.6
Net (loss) income applicable to common shareowners - basic and diluted	$	(10.9	)	$	58.0
Denominator:
Weighted average common shares outstanding - basic	42.3			42.1
Stock-based compensation arrangements	—			0.2
Weighted average common shares outstanding - diluted	42.3			42.3
Basic net (loss) earnings per common share	$	(0.26	)	$	1.38
Diluted net (loss) earnings per common share	$	(0.26	)	$	1.37

For the three months ended March 31, 2018, the Company had a net loss available to common shareholders and, as a result, all common stock equivalents were excluded from the computation of diluted EPS as their inclusion would have been anti-dilutive. For the three months ended March 31, 2017, awards under the Company's stock-based compensation plans for common shares of 0.2 million were excluded from the computation of diluted EPS as the inclusion would have been anti-dilutive. For all periods presented, preferred stock convertible into 0.9 million common shares was excluded as it was anti-dilutive.

8

Form 10-Q Part I Cincinnati Bell Inc.

3.    Revenue

The Entertainment and Communications segment provides products and services to both consumer and enterprise customers that can be categorized as either Fioptics, Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Fioptics and Legacy revenue include both consumer and enterprise customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers. Consumer customers have implied month-to-month contracts, while enterprise customers typically have contracts with a duration of one to five years and automatically renew on a month to month basis. Customers are invoiced on a monthly basis for services rendered. Contracts for projects that are included within the Other revenue stream are typically short in duration and less than one year.

The IT Services and Hardware segment provides a full range of Information Technology ("IT") solutions, including Communications, Cloud and Consulting services. IT Services and Hardware customers enter into contracts that have a typical duration of one to five years, with renewal options at the end of the term. Customers are invoiced on a monthly basis for services rendered. The IT Services and Hardware segment also provides enterprise customers with Infrastructure Solutions, which includes the sale of hardware and maintenance contracts. These contracts are typically satisfied in less than twelve months and revenue is recognized at a point in time.

The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which was adopted on January 1, 2018, using the full retrospective method. See below for further discussion of the adoption, including the impact on our 2017 financial statements.

The Company has elected the practical expedient described in ASC 606-10-32-18 that allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects that the period of time between the transfer of a promised good or service to the customer and when the customer pays will be one year or less. Customers are typically billed immediately upon the rendering of services or the delivery of products. Payment terms for customers are between 30 and 180 days. In the instance that payment terms are greater than twelve months, the guidance in ASC 606-10-32-15 will be applied to determine the transaction price.

9

Form 10-Q Part I Cincinnati Bell Inc.

Method of Adoption

The Company adopted ASC Topic 606 on January 1, 2018, using the full retrospective method. The comparative periods for 2018 and 2017 are reported in accordance with ASC Topic 606. The adoption of ASC Topic 606 primarily affected product revenue and cost of products on our Consolidated Financial Statements. Based on the Company’s assessment of ASC Topic 606 as it relates to the sale of hardware within the Infrastructure Solutions category, the Company considers itself an agent (net) versus as a principal (gross). Based on our assessment of ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), issued by the FASB in March 2016, the Company acts as an agent and as such will record revenue associated with the sale of hardware net of the related cost of products. This conclusion is based on the Company not obtaining control of the inventory since in most cases the Company does not take possession of the inventory, does not have the ability to direct the product to anyone besides the purchasing customer, and does not integrate the hardware with any of our own goods or services. In situations where the Company does take possession the Company assesses if we act as the principal or the agent. While the Company does perform installation services in certain cases, those services involve installing the hardware into the customer’s existing technology. Installation is considered a separate performance obligation as it is capable of being distinct, and is distinct, within the context of the contract. The reduction to "Revenue" and "Cost of services and products" related to recording these contracts on a net basis is $28.6 million for the three months ended March 31, 2017.

In addition to the changes discussed above as result of recognizing hardware revenue on a net basis, additional contract assets related to fulfillment costs and costs of acquisition of $32.3 million were recorded to "Other noncurrent assets" as of December 31, 2017, with an offsetting reduction in "Accumulated deficit." As a result of the entry, total contract assets related to fulfillment and acquisition costs were $32.4 million as of December 31, 2017. Under the new standard, the Company defers all incremental sales incentives and other costs incurred in order to obtain a contract with a customer. The Company amortizes the contract asset related to both fulfillment costs and cost of acquisition over the period of time the services under the contract are expected to be delivered to the customer.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, or a series of distinct goods or services, and is the unit of account defined in ASC Topic 606. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Contract modifications for changes to services provided are routine throughout the term of our contracts. In most instances, contract modifications are for the addition or reduction of services that are distinct, and price changes are based on the stand-alone selling price of the service and, as such, are accounted for on a prospective basis as a new contract.

Goods and services are sold individually, or a contract may include multiple goods or services. For contracts with multiple goods and services, the contract's transaction price is allocated to each performance obligation using the stand-alone selling price of each distinct good or service in the contract.

Certain customers of the Company may receive cash-based rebates based on volume of sales, which are accounted for as variable consideration. Potential rebates are considered at contract inception in our estimate of transaction price based on the forecasted volume of sales. Estimates are reassessed quarterly.

Performance obligations are either satisfied over time as services are performed or at a point in time. Substantially all of our service revenue is recognized over time. For services transferred over time, the Company has elected the practical expedient to recognize revenue based on amounts invoiced to the customer as the Company has concluded that the invoice amount directly corresponds with the value of services provided to the customer. Management considers this a faithful depiction of the transfer of control as services are provided evenly over the month and are substantially the same over the life of the contract. As the Company has elected the practical expedients detailed at ASC 606-10-50-13, revenue for unsatisfied performance obligations that will be billed in future periods has not been disclosed.

10

Form 10-Q Part I Cincinnati Bell Inc.

Entertainment and Communications

The Company has identified four distinct performance obligations in the Entertainment and Communications segment which include Data, Voice, Video and Other. Data, Voice and Video services are each identified as a series of distinct services as the services in each category are substantially the same and transfer of control to the customer occurs continuously over time. The Entertainment and Communications segment provides services in three main categories that include Fioptics, Enterprise Fiber and Legacy, which may include one or more of the aforementioned performance obligations. Data services include high-speed internet access, digital subscriber lines, ethernet, SONET (Synchronous Optical Network), dedicated internet access, wavelength and digital signal. Voice services include traditional and Fioptics voice lines, switched access, digital trunking and consumer long distance calling. Video services are offered through our fiber network to consumer and enterprise customers based on various standard plans with the opportunity to add premium channels. To receive video services, customers are required to use Cincinnati Bell set top boxes that are billed as part of the monthly recurring service. Set top boxes are not considered a separate performance obligation from video because the equipment is necessary for the service to operate and the customer has no alternative use for the equipment.

Services and products not included in Data, Voice or Video are included in Other revenue and are comprised of wire care, wire time and materials projects and advertising. Transfer of control of these services and products is evaluated on an individual project basis and can occur over time or at a point in time.

The Company uses multiple methods to determine stand-alone selling prices in the Entertainment and Communications segment. For Fioptics Data, Video and Voice, market rate is the primary method used to determine stand-alone selling prices. For Enterprise Fiber Data and Legacy Voice, Data, and Other, stand-alone selling prices are determined based on a list price, discount off of list price, a tariff rate, a margin percentage range, or a minimum margin percentage.

IT Services and Hardware

The Company has identified four distinct performance obligations in the IT Services and Hardware segment. These performance obligations are Communications, Cloud, Consulting, and Infrastructure Solutions. Communications services are monthly services that include data and VoIP services, tailored solutions that include converged IP communications of data, voice, video and mobility applications, enterprise long distance, MPLS (Multi-Protocol Label Switching) and conferencing services. Cloud services includes storage, backup, disaster recovery, SLA-based monitoring and management, cloud computing and cloud consulting. Consulting services provide customers with IT staffing, consulting, emerging technology solutions and installation projects. Infrastructure Solutions includes the sale of hardware and maintenance contracts.

For the sale of hardware, the Company evaluated whether it is the principal or the agent. The Company has concluded it acts as an agent because it does not control the inventory before it is transferred to customers, it does not have the ability to direct the product to anyone besides the purchasing customer, and it does not integrate the hardware with any of our own goods or services. Based on this assessment, the performance obligation is to arrange a sale of hardware between the manufacturer and the customer. In the instance where there is an issue with the hardware, the Company coordinates with the manufacturer to facilitate a return in accordance with the standard manufacturer warranty. Hardware returns are not significant to the Company.

Stand-alone selling prices for the four performance obligations within the IT Services and Hardware segment were determined based on a margin percentage range, minimum margin percentage or standard price list.

Revenue recognized at a point in time includes revenue recognized net of the cost of product for hardware sales within Infrastructure Solutions as well as for certain projects within Communications and Consulting. Revenue generated from these contracts is recognized when the hardware is shipped to the customer, in the case of Infrastructure Solutions when we act as the agent, or when the customer communicates acceptance of services performed, in the case of Communications and Consulting. For contracts with freight on board shipping terms, management has elected to account for shipping and handling as activities to fulfill the promise to transfer the good, and therefore has not evaluated whether shipping and handling activities are promised services to its customers.

11

Form 10-Q Part I Cincinnati Bell Inc.

Contract Balances 

The Company recognizes an asset for incremental fulfillment costs that include installation costs associated with Voice, Video, and Data product offerings in the Entertainment and Communications segment for which the contract life is longer than one year. These fulfillment costs are amortized ratably over the expected life of the customer, which is representative of the expected period of benefit of the asset capitalized. The expected life of the customer is determined utilizing the average churn rate for each product. The Company calculates average churn based on the historical average customer life. We recognize an asset for incremental fulfillment costs that include installation and provisioning costs for certain Communications services. The asset recognized for Communication services is amortized over the average contract life. Churn rates and average contract life are reviewed on an annual basis. Fulfillment costs are capitalized to “Other noncurrent assets.” The related amortization expense is recorded to “Cost of services and products.”

The Company recognizes an asset for the incremental costs of acquiring a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs related to Voice, Video, Data and certain Communications and Cloud services meet the requirements to be capitalized. The contract asset established for the costs of acquiring a contract are recorded to “Other noncurrent assets.” Sales incentives are amortized ratably over the period that services are delivered using either an average churn rate or average contract term, both representative of the expected period of benefit of the asset capitalized. Customer churn rates and average contract term assumptions are reviewed on an annual basis. The related amortization expense is recorded to “Selling, general and administrative.”

Management has elected to use the practical expedient detailed in ASC 340-40-25-4 to expense any costs to fulfill a contract and costs to obtain a contract as they are incurred when the amortization period would have been one year or less. This practical expedient has been applied to fulfillment costs that include installation costs associated with wiring projects and certain Cloud services. In addition, this practical expedient has been applied to acquisition costs associated with revenue from certain Communications projects.

The following table presents the activity for the Company’s contract assets:

	Fulfillment Costs									Cost of Acquisition									Total Contract Assets
(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company
Balance as of January 1, 2016	$	15.0		$	1.5		$	16.5		$	12.7		$	1.4		$	14.1		$	27.7		$	2.9		$	30.6
Additions	14.5			1.1			15.6			7.3			0.7			8.0			21.8			1.8			23.6
Amortization	(12.5		)	(1.0		)	(13.5		)	(7.9		)	(0.8		)	(8.7		)	(20.4		)	(1.8		)	(22.2		)
Balance as of December 31, 2016	17.0			1.6			18.6			12.1			1.3			13.4			29.1			2.9			32.0
Additions	13.7			1.6			15.3			6.8			1.1			7.9			20.5			2.7			23.2
Amortization	(13.2		)	(1.2		)	(14.4		)	(7.3		)	(1.1		)	(8.4		)	(20.5		)	(2.3		)	(22.8		)
Balance as of December 31, 2017	17.5			2.0			19.5			11.6			1.3			12.9			29.1			3.3			32.4
Additions	3.1			0.4			3.5			1.6			0.4			2.0			4.7			0.8			5.5
Amortization	(3.3		)	(0.3		)	(3.6		)	(1.7		)	(0.2		)	(1.9		)	(5.0		)	(0.5		)	(5.5		)
Balance as of March 31, 2018	$	17.3		$	2.1		$	19.4		$	11.5		1.5			$	13.0		$	28.8		$	3.6		$	32.4

12

Form 10-Q Part I Cincinnati Bell Inc.

Disaggregated Revenue

The following table presents revenues disaggregated by product and service lines.

	Three months Ended
	March 31,
(dollars in millions)	2018			2017
Data	$	84.9		$	84.4
Video	39.2			35.9
Voice	47.0			51.7
Other	3.1			3.1
Total Entertainment and Communications	174.2			175.1
Consulting	38.1			16.7
Cloud	22.6			20.9
Communications	40.6			36.5
Infrastructure Solutions	26.3			6.9
Total IT Services and Hardware	127.6			81.0
Intersegment revenue	(6.1		)	(6.5		)
Total revenue	$	295.7		$	249.6

The following table presents revenues disaggregated by contract type.

	Entertainment and Communications				IT Services and Hardware				Intersegment revenue elimination						Total
	Three months ended				Three months ended				Three months ended						Three months ended
(dollars in millions)	March 31,				March 31,				March 31,						March 31,
	2018		2017		2018		2017		2018			2017			2018		2017
Products and Services transferred at a point in time	$	4.8	$	5.1	$	35.3	$	10.7	$	—		$	—		$	40.1	$	15.8
Products and Services transferred over time	164.2		164.6		91.4		69.2		—			—			255.6		233.8
Intersegment revenue	5.2		5.4		0.9		1.1		(6.1		)	(6.5		)	—		—
Total revenue	$	174.2	$	175.1	$	127.6	$	81.0	$	(6.1	)	$	(6.5	)	$	295.7	$	249.6

13

Form 10-Q Part I Cincinnati Bell Inc.

4.    Mergers and Acquisitions

Acquisition of OnX Holdings LLC

On October 2, 2017, the Company acquired 100% of OnX Holdings LLC ("OnX"), a privately held company that provides technology services and solutions to enterprise customers in the United States, Canada and the United Kingdom. The acquisition extends the IT Services and Hardware segment's geographic footprint and accelerates its initiatives in IT cloud migration.

The purchase price for OnX consisted of the following:

(dollars in millions)
Cash consideration	$	241.2
Debt repayment	(77.6		)
Working capital adjustment	2.8
Total purchase price	$	166.4

The cash portion of the purchase price was funded through borrowings under the Credit Agreement (see Note 6). The cash consideration includes $77.6 million related to existing debt that was repaid in conjunction with the close of the acquisition. In addition, a working capital adjustment of $2.8 million was paid during the three months ended March 31, 2018. The Company spent $8.6 million in acquisition expenses related to the OnX acquisition, of which $0.5 million was recorded in the three months ended March 31, 2018. No expenses were recorded in the prior year comparable period related to the OnX acquisition. These expenses are recorded in "Transaction and integration costs" on the Consolidated Statements of Operations.

Purchase Price Allocation and Other Items

The determination of the final purchase price allocation to specific assets acquired and liabilities assumed is incomplete for OnX. The purchase price allocations may change in future periods as customary post-closing reviews are concluded during the measurement period, and the fair value estimates of assets and liabilities and certain tax aspects of the transaction are finalized.

Based on fair value estimates, the purchase price for OnX has been allocated to individual assets acquired and liabilities assumed as follows:

(dollars in millions)
Assets acquired
Cash	$	6.5
Receivables	69.9
Prepaid expenses and other current assets	11.8
Property, plant and equipment	11.6
Goodwill	133.1
Intangible assets	134.0
Other noncurrent assets	3.2
Total assets acquired	370.1
Liabilities assumed
Accounts payable	63.6
Current portion of long-term debt	1.3
Accrued expenses and other current liabilities	18.3
Deferred income tax liabilities	42.3
Long-term debt, less current portion	76.7
Other noncurrent liabilities	1.5
Total liabilities assumed	203.7
Net assets acquired	$	166.4

14

Form 10-Q Part I Cincinnati Bell Inc.

During the three months ended March 31, 2018, the Company recorded a purchase price allocation adjustment of $0.2 million to "Goodwill" related to the payment of the working capital adjustment. In addition, the Company recorded purchase price allocation adjustments of $0.1 million to "Deferred income tax liabilities" and $0.4 million to "Other noncurrent liabilities" related to the finalization of certain tax aspects of the acquisition. The offset of these adjustments were recorded as an increase to "Goodwill."

The estimated fair value of identifiable intangible assets and their estimated useful lives are as follows:

(dollars in millions)	Fair Value		Useful Lives
Customer relationships	$	108.0	15 years
Trade name	16.0		10 years
Technology	10.0		10 years
Total identifiable intangible assets	$	134.0

Identifiable intangible assets are amortized over their useful lives based on a number of assumptions including the estimated period of economic benefit and utilization. The weighted-average amortization period for identifiable intangible assets acquired in the OnX acquisition is 14 years.

The goodwill for OnX is attributable to increased access to a diversified customer base and acquired workforce in the United States, Canada and the United Kingdom. The amount of goodwill related to OnX that is expected to be deductible for income tax purposes is $2.3 million.

Pro Forma Information (Unaudited)

The following table provides the unaudited pro forma results of operations for the three months ended March 31, 2017 as if OnX had been acquired as of the beginning of fiscal year 2016. Revenue has been retrospectively adjusted for the adoption of ASC 606 to reflect hardware revenue in the Infrastructure Solutions category net of related cost of products. These results include adjustments related to the financing of the acquisition, to increase depreciation and amortization associated with the higher values of property, plant and equipment and 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.

	Three Months Ended
	March 31,
(dollars in millions, except per share amounts)	2017
Revenue	$	298.5
Net income applicable to common shareholders	54.1
Earnings per share:
Basic and diluted earnings per common share	1.28

Other Acquisition Activity

On February 28, 2017, the Company acquired 100% of SunTel Services ("SunTel"), a private company that provides network security, data connectivity, and unified communications solutions to commercial and enterprise customers across multiple sectors throughout Michigan for cash consideration of $10.0 million. Based on final fair value assessment and the finalization of the working capital adjustment, the acquired assets and liabilities assumed consisted primarily of property, plant and equipment of $0.4 million, customer relationship intangible assets of $1.2 million, working capital of $4.1 million and goodwill of $4.6 million. These assets and liabilities are included in the IT Services and Hardware segment.

15

Form 10-Q Part I Cincinnati Bell Inc.

5.    Goodwill and Intangible Assets

Goodwill

The changes in the Company's goodwill consisted of the following:

	IT Services and Hardware			Entertainment and Communications		Total Company
(dollars in millions)
Goodwill, balance as of December 31, 2017	$	148.8		$	2.2	$	151.0
Activity during the year
Adjustments to prior year acquisitions	0.7			—		0.7
Currency translations	(1.0		)	—		(1.0		)
Goodwill, balance as of March 31, 2018	$	148.5		$	2.2	$	150.7

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups CLEC revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. As a result of the change, $9.7 million of goodwill related to CBTS Technology Solutions LLC ("CBTS TS") was reclassified from the Entertainment and Communications segment to the IT Services and Hardware segment for the period ending December 31, 2017. For further information related to these business segments see Note 11.

No impairment losses were recognized in goodwill for the three months ended March 31, 2018 and 2017.

Intangible Assets

The Company’s intangible assets consisted of the following:

	March 31, 2018					December 31, 2017
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
(dollars in millions)	Amount (a)		Amortization			Amount (a)		Amortization
Customer relationships	$	115.4	$	(10.8	)	$	116.0	$	(8.9	)
Trade names	15.5		(0.8		)	15.9		(0.4		)
Technology	9.9		(0.5		)	9.9		(0.2		)
Total	$	140.8	$	(12.1	)	$	141.8	$	(9.5	)

(a) Change in gross carrying amounts is due to foreign currency translation.

Amortization expense for intangible assets subject to amortization was $2.6 million for the three months ended March 31, 2018. Amortization expense for the three months ended March 31, 2017 was insignificant. No impairment losses were recognized for the three months ended March 31, 2018 and 2017.

16

Form 10-Q Part I Cincinnati Bell Inc.

6.    Debt

The Company’s debt consists of the following:

	March 31,			December 31,
(dollars in millions)	2018			2017
Current portion of long-term debt:
Credit Agreement - Tranche B Term Loan due 2024	$	6.0		$	6.0
Capital lease obligations and other debt	12.2			12.4
Current portion of long-term debt	18.2			18.4
Long-term debt, less current portion:
Credit Agreement - Tranche B Term Loan due 2024	594.0			594.0
7 1/4% Senior Notes due 2023	22.3			22.3
7% Senior Notes due 2024	625.0			625.0
8% Senior Notes due 2025	350.0			350.0
Cincinnati Bell Telephone Notes	87.9			87.9
Capital lease obligations and other debt	67.7			70.5
	1,746.9			1,749.7
Net unamortized premium	1.9			1.9
Unamortized note issuance costs	(21.9		)	(22.3		)
Long-term debt, less current portion	1,726.9			1,729.3
Total debt	$	1,745.1		$	1,747.7

Credit Agreement

There were no outstanding borrowings on the Credit Agreement's revolving credit facility, leaving $200.0 million available for borrowings as of March 31, 2018. This revolving credit facility expires in October 2022.

In April 2018, the Company amended its Credit Agreement dated as of October 2, 2017 to reduce the applicable margin on the Tranche B Term Loan due 2024 and revolving credit facility with respect to LIBOR borrowings from the previous 3.75% per annum to 3.25% per annum and, with respect to adjusted base rate borrowings, from the previous 2.75% per annum to 2.25% per annum. The letter of credit fees were reduced from the previous 3.75% per annum to 3.25% per annum.

Accounts Receivable Securitization Facility

As of March 31, 2018, the Company had no borrowings and $6.7 million of letters of credit outstanding under the accounts receivable securitization facility ("Receivables Facility"), leaving $92.5 million remaining availability on the total borrowing capacity of $99.2 million. In the second quarter of 2017, the Company executed an amendment of its Receivables Facility, which replaced, amended and added certain provisions and definitions to increase the credit availability and renew the facility, which is subject to renewal every 364 days, until May 2018. The facility's termination date is in May 2019 and was not changed by this amendment. In the event the Receivables Facility is not renewed, the Company has the ability to refinance any outstanding borrowings with borrowings under the Corporate Credit Agreement. Under the terms of the Receivables Facility, the Company could obtain up to $120.0 million depending on the quantity and quality of accounts receivable. Under this agreement, certain U.S. 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.

17

Form 10-Q Part I Cincinnati Bell Inc.

7.    Restructuring and Severance

Liabilities have been established for employee separations and lease abandonment. A summary of activity in the restructuring and severance liability is shown below:

(dollars in millions)	Employee Separation			Lease Abandonment		Total
Balance as of December 31, 2017	$	14.4		$	0.1	$	14.5
Charges	0.3			—		0.3
Utilizations	(7.3		)	—		(7.3		)
Balance as of March 31, 2018	$	7.4		$	0.1	$	7.5

In the first quarter of 2018, the Company recorded $0.3 million in restructuring and severance charges related to employee separations. The Company made severance payments during the three months ended March 31, 2018, for employee separations associated with initiatives to reduce costs within our legacy copper network and headcount reductions in our IT Services and Hardware segment. In the first quarter of 2017, the Company finalized a voluntary severance program for certain bargained employees related to an initiative to reduce field and network costs within our legacy copper network. As a result, a severance charge of $25.6 million was recorded to the Entertainment and Communications segment.

Lease abandonment costs represent future minimum lease obligations, net of expected sublease income, for abandoned facilities. Lease payments on abandoned facilities will continue through 2019.

A summary of restructuring activity by business segment is presented below:

(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Corporate		Total
Balance as of December 31, 2017	$	12.3		$	2.2		$	—	$	14.5
Charges	—			0.3			—		0.3
Utilizations	(5.7		)	(1.6		)	—		(7.3		)
Balance as of March 31, 2018	$	6.6		$	0.9		$	—	$	7.5

At March 31, 2018 and December 31, 2017, $5.6 million and $12.0 million, respectively, of the restructuring liabilities were included in “Other current liabilities.” At March 31, 2018 and December 31, 2017, $1.9 million and $2.5 million, respectively, were included in "Other noncurrent liabilities."

18

Form 10-Q Part I Cincinnati Bell Inc.

8.    Financial Instruments and Fair Value Measurements

The carrying values of the Company's financial instruments approximate the estimated fair values as of March 31, 2018 and December 31, 2017, except for the Company's long-term debt. The carrying and fair values of the Company's long-term debt are as follows:

	March 31, 2018				December 31, 2017
(dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current portion*	$	1,687.1	$	1,602.8	$	1,687.1	$	1,687.5
*Excludes capital leases and note issuance costs.

The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at March 31, 2018 and December 31, 2017, which is considered Level 2 of the fair value hierarchy.

9.    Pension and Postretirement Plans

The Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan. For the three months ended March 31, 2017, approximately 12% of the costs were capitalized as a component of property, plant and equipment related to construction of our copper and fiber networks. In accordance with ASU 2017-07, retrospectively adopted effective January 1, 2018, only the service cost component of net benefit cost is eligible for capitalization on a prospective basis, which was immaterial for the three months ended March 31, 2018.

For the three months ended March 31, 2018 and 2017, pension and postretirement benefit costs (benefits) were as follows:

	Three Months Ended March 31,
	2018			2017			2018			2017
(dollars in millions)	Pension Benefits						Postretirement and Other Benefits
Service cost	$	—		$	—		$	0.1		$	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation	4.2			4.8			0.8			0.8
Expected return on plan assets	(6.2		)	(6.5		)	—			—
Amortization of:
Prior service benefit	—			—			(0.8		)	(1.1		)
Actuarial loss	4.3			4.4			1.0			1.1
Total amortization	4.3			4.4			0.2			—
Pension / postretirement costs	$	2.3		$	2.7		$	1.1		$	0.9

Amortizations of prior service benefit and actuarial loss represent reclassifications from accumulated other comprehensive income.

Based on current assumptions, contributions to qualified and non-qualified pension plans in 2018 are expected to be approximately $4 million and $3 million, respectively. Management expects to make cash payments of approximately $9 million related to its postretirement health plans in 2018.

For the three months ended March 31, 2018, contributions to the pension plans were $1.3 million and contributions to the postretirement plan were $1.6 million.

19

10.    Shareowners' Deficit

Accumulated Other Comprehensive Loss

For the three months ended March 31, 2018, the changes in accumulated other comprehensive loss by component were as follows:

(dollars in millions)	Unrecognized Net Periodic Pension and Postretirement Benefit Cost				Foreign Currency Translation Loss			Total
Balance as of December 31, 2017	$	(173.1	)		$	(0.6	)	$	(173.7	)
Reclassifications, net	3.5			(a)	—			3.5
Foreign currency loss	—				(1.8		)	(1.8		)
Balance as of March 31, 2018	$	(169.6	)		$	(2.4	)	$	(172.0	)

(a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax (see Note 9 for additional details). The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations in accordance with ASU 2017-07, which the Company retrospectively adopted effective January 1, 2018.

11.    Business Segment Information

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups CLEC revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. Accordingly, the Company recast the previously reported 2017 segment disclosures to conform to the new segmentation.

Effective January 1, 2018, we adopted the requirements of ASU 2014-09, Revenue from Contracts with Customers and ASU 2017-07, Improving the Presentation of Net Period Pension Cost and Net Periodic Postretirement Benefit Cost. As a result of adopting these standards, certain prior period amounts reported below have been restated to conform to current period presentation.

The Company’s segments are strategic business units that offer distinct products and services and are aligned with the Company's internal management structure and reporting. The Entertainment and Communications segment provides products and services that can be categorized as Data, Video, Voice or Other. Data products include high-speed internet access, digital subscriber lines, ethernet, SONET, dedicated internet access, wavelength and digital signal. These products are used to transport large amounts of data over private networks. Video services provide our Fioptics customers access to over 400 entertainment channels, over 140 high-definition channels, parental controls, HD DVR, Video On-Demand and access to a Fioptics live TV streaming application. Voice represents traditional voice lines as well as Fioptics voice lines, consumer long distance, switched access and digital trunking. Other services consists of revenue generated from wiring projects for enterprise customers, advertising, directory assistance, maintenance and information services.

The IT Services and Hardware segment provides end-to-end solutions from consulting to implementation to ongoing optimization. These solutions include Cloud, Communications and Consulting services along with the sale, installation and maintenance of major branded Telecom and IT hardware reported as Infrastructure Solutions.

Certain corporate administrative expenses have been allocated to the segments based upon the nature of the expense and the relative size of the segment. Intercompany transactions between segments have been eliminated.

20

Form 10-Q Part I Cincinnati Bell Inc.

Selected financial data for the Company’s business segment information is as follows:

	Three Months Ended
	March 31,
(dollars in millions)	2018			2017
Revenue
Entertainment and Communications	$	174.2		$	175.1
IT Services and Hardware	127.6			81.0
Intersegment	(6.1		)	(6.5		)
Total revenue	$	295.7		$	249.6
Intersegment revenue
Entertainment and Communications	$	5.2		$	5.4
IT Services and Hardware	0.9			1.1
Total intersegment revenue	$	6.1		$	6.5
Operating income (loss)
Entertainment and Communications	$	28.6		$	3.1
IT Services and Hardware	1.4			0.9
Corporate	(5.8		)	(5.8		)
Total operating income (loss)	$	24.2		$	(1.8	)
Expenditures for long-lived assets*
Entertainment and Communications	$	27.6		$	46.8
IT Services and Hardware	7.9			17.5
Total expenditures for long-lived assets	$	35.5		$	64.3
Depreciation and amortization
Entertainment and Communications	$	40.9		$	39.4
IT Services and Hardware	10.2			6.4
Corporate	0.1			—
Total depreciation and amortization	$	51.2		$	45.8
* Includes cost of acquisitions
	March 31,			December 31,
(dollars in millions)	2018			2017
Assets
Entertainment and Communications	$	1,102.5		$	1,111.4
IT Services and Hardware	494.4			482.7
Corporate and eliminations	589.1			593.5
Total assets	$	2,186.0		$	2,187.6

21

Form 10-Q Part I Cincinnati Bell Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q and the documents incorporated by reference herein contain forward-looking statements regarding future events and results that are subject to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “predicts,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” or variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of future financial performance, anticipated growth and trends in businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause actual results to differ materially and adversely from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q and, in particular, the risks discussed under the caption “Risk Factors” in Part II, Item 1A, and those discussed in other documents the Company filed with the Securities and Exchange Commission (“SEC”). Actual results may differ materially and adversely from those expressed in any forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements for any reason.

Introduction

This Management’s Discussion and Analysis section provides an overview of Cincinnati Bell Inc.'s financial condition as of March 31, 2018, and the results of operations for the three months ended March 31, 2018 and 2017. This discussion should be read in conjunction with the accompanying Condensed Consolidated Financial Statements and accompanying notes, as well as the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. Results for interim periods may not be indicative of results for the full year or any other interim period.

Executive Summary

Segment results described in the Executive Summary and Consolidated Results of Operations sections are net of intercompany eliminations.

Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell", "we", "our", "us" or the "Company") provides integrated communications and IT solutions that keep consumer and enterprise customers connected with each other and with the world. Through its Entertainment and Communications segment, the Company provides Data, Video, and Voice solutions to consumer and enterprise customers over an expanding fiber network and a legacy copper network. In addition, enterprise customers across the United States, Canada and Europe rely on the IT Services and Hardware segment for the sale and service of efficient, end-to-end communications and IT systems and solutions.

Consolidated revenue totaling $295.7 million for the three months ended March 31, 2018 increased $46.1 million compared to the prior year primarily due to acquisitions completed in 2017 that offset declines from Legacy services. The acquisition of OnX Holdings LLC ("OnX") contributed $45.3 million of revenue in the first quarter of 2018. The acquisition of SunTel Services ("SunTel"), which closed in the first quarter of 2017, contributed an increase of $3.7 million in revenue as compared to the first quarter of 2017. Fioptics revenue increased $9.3 million for the three months ended March 31, 2018 compared to the prior year's first quarter.

Operating income for the first quarter of 2018 was $24.2 million, up $26.0 million from the prior year primarily due to a decrease of $25.3 million in restructuring and severance related charges as compared to the first quarter of 2017. Restructuring and severance related charges were incurred for the three months ended March 31, 2017 in order to reduce field and network costs associated with our legacy copper network. Loss before income taxes totaled $9.5 million for the three months ended March 31, 2018, down $104.6 million compared to the prior year, primarily due to the $117.7 million gain on the sale of our investment in CyrusOne recorded in 2017. Interest expense also increased $12.8 million due to additional debt acquired to fund the acquisition of OnX and pending merger with Hawaiian Telcom Holdco, Inc. ("Hawaiian Telcom").

22

Form 10-Q Part I Cincinnati Bell Inc.

Consolidated Results of Operations

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups Competitive Local Exchange Carrier ("CLEC") revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. Accordingly, the Company recast the previously reported 2017 segment disclosures. See Note 11 to the Condensed Consolidated Financials for all required disclosures.

Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers and ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. As a result of adopting these standards, certain prior period amounts reported below have been restated to conform to current period presentation. Refer to the Notes of the Condensed Consolidated Financial Statements for further explanation of these amounts.

Revenue

	Three months ended March 31,
(dollars in millions)	2018		2017		$ Change			% Change
Revenue
Entertainment and Communications	$	169.0	$	169.7	$	(0.7	)	0	%
IT Services and Hardware	126.7		79.9		46.8			59	%
Total revenue	$	295.7	$	249.6	$	46.1		18	%

Entertainment and Communications revenue remained relatively flat as Fioptics and Enterprise Fiber revenue, which includes ethernet services, nearly offset declines in Legacy revenue. IT Services and Hardware revenue increased primarily due to the acquisition of OnX that closed in the fourth quarter of 2017.

Operating Costs

	Three months ended March 31,
(dollars in millions)	2018		2017		$ Change		% Change
Cost of services and products
Entertainment and Communications	$	76.5	$	74.4	$	2.1	3	%
IT Services and Hardware	72.9		49.7		23.2		47	%
Total cost of services and products	$	149.4	$	124.1	$	25.3	20	%

Entertainment and Communications costs are relatively flat compared to the prior year due to increased costs associated with our growing Fioptics video subscriber base, in addition to higher rates on programming being offset by lower payroll and benefits costs. Lower payroll and benefits costs are related to headcount reductions made during restructuring initiatives that were executed in 2017. IT Services and Hardware costs increased due to higher headcount as a result of the acquisition of OnX, which drove incremental revenue of $45.3 million.

	Three months ended March 31,
(dollars in millions)	2018		2017		$ Change			% Change
Selling, general, and administrative
Entertainment and Communications	$	27.1	$	31.3	$	(4.2	)	(13	)%
IT Services and Hardware	37.7		18.8		18.9			n/m
Corporate	3.6		5.2		(1.6		)	(31	)%
Total selling, general and administrative	$	68.4	$	55.3	$	13.1		24	%

23

Form 10-Q Part I Cincinnati Bell Inc.

Entertainment and Communications Selling, General and Administrative ("SG&A") costs were down in the three months ended March 31, 2018 compared to the prior year primarily due to lower payroll costs that are a result of headcount reductions from restructuring initiatives that were executed in 2017. IT Services and Hardware SG&A costs were up primarily due to OnX and the additional headcount as well as other costs such as rent, professional fees and advertising.

	Three months ended March 31,
(dollars in millions)	2018		2017		$ Change		% Change
Depreciation and amortization expense
Entertainment and Communications	$	40.9	$	39.4	$	1.5	4	%
IT Services and Hardware	10.2		6.4		3.8		59	%
Corporate	0.1		—		0.1		n/m
Total depreciation and amortization expense	$	51.2	$	45.8	$	5.4	12	%

Entertainment and Communications depreciation and amortization expense increased compared to the prior year as a result of expanding our fiber-based network. The increase in IT Services and Hardware depreciation and amortization expense is primarily related to the amortization of intangible assets acquired as part of the SunTel and OnX acquisitions as well as depreciation expense related to the property, plant and equipment obtained in these acquisitions.

	Three months ended March 31,
(dollars in millions)	2018		2017		$ Change			% Change
Other operating costs
Restructuring and severance related charges	$	0.3	$	25.6	$	(25.3	)	(99	)%
Transaction and integration costs	2.2		0.6		1.6			n/m
Total other operating costs	$	2.5	$	26.2	$	(23.7	)	(90	)%

Restructuring and severance related charges incurred by the Entertainment and Communications segment during the first quarter of 2017 were related to a voluntary severance program for certain bargained employees to reduce field and network costs associated with our legacy copper network. Transaction costs recorded in the Corporate segment in 2018 are due to the acquisition of OnX that closed in the fourth quarter of 2017, as well as the pending merger with Hawaiian Telcom. Transaction costs recorded on the Corporate segment in 2017 are primarily due to the acquisition of SunTel Services in the first quarter of 2017.

Non-operating Costs

	Three months ended March 31,
(dollars in millions)	2018			2017			$ Change			% Change
Non-operating costs
Interest expense	$	30.8		$	18.0		$	12.8		71	%
Other components of pension and postretirement benefit plans expense	3.3			3.2			0.1			3	%
Gain on sale of Investment in CyrusOne	—			(117.7		)	117.7			n/m
Other income, net	(0.4		)	(0.4		)	—			0	%
Income tax (benefit) expense	(1.2		)	34.5			(35.7		)	n/m

Interest expense increased for the three months ended March 31, 2018 compared to the same period in the prior year due to the Company entering into the $600.0 million Tranche B Term Loan 2024 as well as issuing $350.0 million 8% Senior Notes in the fourth quarter of 2017. The Company repaid the remaining $315.8 million Tranche B Term Loan due 2020 outstanding under its old Corporate Credit Agreement with the proceeds from the $600.0 million Tranche B Term Loan due 2024.

The Company recognized a realized gain of $117.7 million on the sale of 2.8 million CyrusOne common shares in the first quarter of 2017.

24

Form 10-Q Part I Cincinnati Bell Inc.

Income tax expense decreased year over year primarily due to lower income before tax and the tax reform impact of a lower federal statutory rate. The Company expects to use federal and state net operating loss carryforwards to substantially defray payment of federal and state tax liabilities in 2018.

25

Form 10-Q Part I Cincinnati Bell Inc.

Entertainment and Communications

The Entertainment and Communications segment provides products and services that can be categorized as either Fioptics, Enterprise Fiber or Legacy. Cincinnati Bell Telephone Company LLC ("CBT"), a subsidiary of the Company, is the incumbent local exchange carrier ("ILEC") for a geography that covers a radius of approximately 25 miles around Cincinnati, Ohio, and includes parts of northern Kentucky and southeastern Indiana. CBT has operated in this territory for over 140 years. Voice and data services beyond its ILEC territory, particularly in Dayton and Mason, Ohio, are provided through the operations of Cincinnati Bell Extended Territories LLC ("CBET"), a subsidiary of CBT.

Fioptics products are delivered to both consumer and enterprise customers and include high-speed internet access, voice lines and video. The Company is able to deliver speeds of up to 30 megabits or more to approximately 70% of Greater Cincinnati.

Enterprise Fiber products include metro-ethernet, dedicated internet access, wavelength and small cell. As enterprise customers migrate from legacy products and copper-based technology, our metro-ethernet product becomes the access method of choice due to its ability to support multiple applications on a single physical connection.

Legacy products include traditional voice lines, consumer long distance, switched access, digital trunking, DSL, DS0, DS1, DS3 and other value-added services such as caller identification, voicemail, call waiting and call return.

	Three Months Ended March 31,
(dollars in millions)	2018			2017			Change			% Change
Revenue:
Data	$	84.9		$	84.4		$	0.5		1	%
Video	39.2			35.9			3.3			9	%
Voice	47.0			51.7			(4.7		)	(9	)%
Other	3.1			3.1			—			0	%
Total revenue	174.2			175.1			(0.9		)	(1	)%
Operating costs and expenses:
Cost of services and products	77.6			75.7			1.9			3	%
Selling, general and administrative	27.1			31.3			(4.2		)	(13	)%
Depreciation and amortization	40.9			39.4			1.5			4	%
Restructuring and severance charges	—			25.6			(25.6		)	(100	)%
Total operating costs and expenses	145.6			172.0			(26.4		)	(15	)%
Operating income	$	28.6		$	3.1		$	25.5		n/m
Operating margin	16.4		%	1.8		%				14.6 pts
Capital expenditures	$	27.6		$	46.8		$	(19.2	)	(41	)%

26

Form 10-Q Part I Cincinnati Bell Inc.

Entertainment and Communications, continued

	Three Months Ended March 31,
Metrics information (in thousands):	2018	2017	Change		% Change
Fioptics
Data
Internet FTTP	187.8	160.3	27.5		17	%
Internet FTTN	45.0	47.0	(2.0	)	(4	)%
Total Fioptics Internet	232.8	207.3	25.5		12	%
Video
Video FTTP	118.1	111.1	7.0		6	%
Video FTTN	28.2	30.0	(1.8	)	(6	)%
Total Fioptics Video	146.3	141.1	5.2		4	%
Voice
Consumer Voice Lines	89.3	85.5	3.8		4	%
Enterprise Voice Lines	17.6	14.1	3.5		25	%
Total Fioptics Voice Lines	106.9	99.6	7.3		7	%
Fioptics Units Passed
Units passed FTTP	440.5	403.7	36.8		9	%
Units passed FTTN	140.3	141.5	(1.2	)	(1	)%
Total Fioptics units passed	580.8	545.2	35.6		7	%
Enterprise Fiber
Data
Ethernet Bandwidth (Gb)	4,046	3,521	525		15	%
Legacy
Data
DSL	78.1	100.1	(22.0	)	(22	)%
Voice
Consumer Voice Lines	90.4	111.1	(20.7	)	(19	)%
Enterprise Voice Lines	161.0	183.9	(22.9	)	(12	)%
Total Legacy Voice Lines	251.4	295.0	(43.6	)	(15	)%
*Fiber to the Premise (FTTP), Fiber to the Node (FTTN)

27

Form 10-Q Part I Cincinnati Bell Inc.

Entertainment and Communications, continued

Revenue

			Three months ended March 31,
(dollars in millions)			2018		2017
Revenue:
	Fioptics
		Data	$	34.4	$	29.6
		Video	39.2		35.9
		Voice	9.1		7.9
		Other	0.3		0.3
			83.0		73.7
	Enterprise Fiber
		Data	20.8		19.7
	Legacy
		Data	29.7		35.1
		Voice	37.9		43.8
		Other	2.8		2.8
			70.4		81.7
Total Entertainment and Communications revenue			$	174.2	$	175.1

Fioptics

Fioptics revenue has increased by $9.3 million for the three months ended March 31, 2018 compared to the same period a year ago due to increases in the subscriber base of voice, video and internet of 7%, 4% and 12%, respectively. Aggressive retention efforts for both voice and internet have contributed to the growing subscriber base. The churn rates for Fioptics internet and voice were 1.45% and 1.21%, respectively, in the first quarter of 2018 compared to 1.75% and 1.77% in the first quarter of 2017. An increase in rate has also contributed to increased revenue as Average Revenue Per User ("ARPU") has increased for voice, video and internet by 6%, 4% and 3%, respectively. ARPU increases are related to price increases for voice, video and internet as well as the change in the mix of subscribers for video.

Enterprise Fiber

Enterprise Fiber revenue has increased slightly year over year. Increases in revenue related to enterprise customers migrating from legacy product offerings to higher bandwidth fiber solutions is offset with declines by carrier customers as they continue to groom their networks.

Legacy

Legacy revenue has decreased $11.3 million for the three months ended March 31, 2018 compared to the same period a year ago due to declines in both voice lines and DSL subscribers. Voice lines have declined by 15% as the traditional voice lines become less relevant. DSL subscribers have decreased by 22% as subscribers migrate to higher speeds as evidenced by the 12% growth in our Fioptics internet subscribers. The Company’s total internet subscribers have increased by 1% as of March 31, 2018 compared to the comparable period in the prior year. In addition, declines in DS0, DS1, DS3 and digital trunking have contributed to the revenue decline as customers migrate away from these solutions to fiber-based solutions. Switched access also continues to decline in part due to the Federal Communications Commission mandated reductions in rates for terminating switched access.

28

Form 10-Q Part I Cincinnati Bell Inc.

Entertainment and Communications, continued

Operating costs and expenses

Cost of services and products has increased primarily due to higher programming costs of $4.2 million in the three months ended March 31, 2018 as compared to the same period in the prior year. These increases are the result of the growing number of Fioptics video subscribers combined with higher programming rates. Payroll related costs were down compared to the prior year by $2.9 million due to reduced headcount as a result of the restructuring that took place in the first quarter of 2017.

SG&A expenses decreased by $4.2 million in the three months ended March 31, 2018 compared to the prior year primarily due to decreased payroll related costs as a result of the restructuring that took place in the first quarter of 2017.

Depreciation and amortization expenses for the three months ended March 31, 2018 increased compared to the prior year primarily due to assets placed in service in connection with the expansion of our fiber network.

Restructuring and severance charges recorded in the first quarter of 2017 are related to a voluntary severance program for certain bargained employees to reduce field and network costs associated with our legacy copper network.

Capital Expenditures

	Three Months Ended March 31,
(dollars in millions)	2018		2017
Fioptics capital expenditures
Construction	$	6.1	$	15.2
Installation	7.5		15.3
Other	3.6		5.2
Total Fioptics	17.2		35.7
Enterprise Fiber	4.5		3.9
Other	5.9		7.2
Total capital expenditures	$	27.6	$	46.8

Capital expenditures are incurred to expand our Fioptics product suite, upgrade and increase capacity for our networks, and to extend the life of our fiber and copper networks. In the first quarter of 2018, we passed an additional 8,600 FTTP addresses. As of March 31, 2018, the Company is able to provide its Fioptics services to 580,800 consumer and enterprise addresses, or 72% of our operating territory. Construction capital expenditures decreased $9.1 million in the first quarter of 2018 compared to the comparable period in 2017 primarily due to passing 3,300 fewer addresses with Fioptics. Installation capital expenditures decreased $7.8 million in the first quarter of 2018 compared to the comparable period in 2017 due to fewer activations in 2018 as a result of the reduced build out.

Enterprise Fiber capital expenditures are related to success-based fiber builds, including associated equipment, for enterprise and carrier projects to provide ethernet services.

IT Services and Hardware

The IT Services and Hardware segment provides end-to-end solutions from consulting, to implementation, to ongoing optimization. These solutions include Cloud, Communications and Consulting services along with the sale and maintenance of major branded Telecom and IT hardware reported as Infrastructure Solutions. These services and products are provided through the Company's subsidiaries in various geographic areas throughout the United States, Canada and Europe. By offering a full range of equipment and strategic services in conjunction with the Company’s fiber and copper networks, the IT Services and Hardware segment provides our customers personalized solutions designed to meet their business objectives.

Cloud services include the design, implementation and on-going management of the customer’s infrastructure. This includes on-premise, public cloud and private cloud solutions. The Company assists customers with the risk assessment phase through an in-depth understanding of the customer’s business, as well as building and designing a solution using either the customer's existing infrastructure or new cloud based options that transform the way the customer does business.

29

Form 10-Q Part I Cincinnati Bell Inc.

Communications solutions help to transform the way our customers do business by connecting employees, customers, and business partners. By upgrading legacy technologies through customized build projects and reducing customer costs, the Company helps to transform the customer’s business. These services include Unified Communications as a Service ("UCaaS"), Software-Defined WAN ("SD-WAN"), Network as a Service ("NaaS"), Contact Center and Collaboration.

Using our experience and expertise, Infrastructure Solutions are tailored to our customers’ organizational goals. We offer a complete portfolio of services that provide customers with efficient and optimized IT solutions that are agile and responsive to their business and are integrated, simplified and manageable. Through consulting with customers, the Company will build a solution using standard manufacturer equipment to meet our customers’ specific requirements. Prior to the adoption of Accounting Standards Codification Topic ("ASC") 606, the Company recorded hardware revenue on a gross basis. Effective January 1, 2018 with the adoption of ASC 606, the Company now considers ourselves an agent in the sale of hardware and records hardware revenue on a net basis. Prior periods have been restated for comparability.

Consulting services help customers assess their business and technology needs and provide the talent needed to ensure success. The Company is the premier provider of IT staffing, consulting, and emerging technology solutions.

30

Form 10-Q Part I Cincinnati Bell Inc.

IT Services and Hardware, continued

	Three Months Ended March 31,
(dollars in millions)	2018			2017			Change			% Change
Revenue:
Consulting	$	38.1		$	16.7		$	21.4		n/m
Cloud	22.6			20.9			1.7			8	%
Communications	40.6			36.5			4.1			11	%
Infrastructure Solutions	26.3			6.9			19.4			n/m
Total revenue	127.6			81.0			46.6			58	%
Operating costs and expenses:
Cost of services and products	77.7			54.7			23.0			42	%
Selling, general and administrative	38.0			19.0			19.0			n/m
Depreciation and amortization	10.2			6.4			3.8			59	%
Restructuring and severance related charges	0.3			—			0.3			n/m
Total operating costs and expenses	126.2			80.1			46.1			58	%
Operating income	$	1.4		$	0.9		$	0.5		56	%
Operating margin	1.1		%	1.1		%				0.0 pts
Capital expenditures	$	5.1		$	8.3		$	(3.2	)	(39	)%

Metrics are as of March 31, 2018

Metrics information:	Consulting	Communications	Communications	Communications
	Billable Heads	NaaS Locations	SD - WAN Locations	Hosted UCaaS Profiles
	888	564	117	178,457

Revenue

IT Services and Hardware segment revenue increased $46.6 million for the three months ended March 31, 2018 as compared to the comparable period in 2017. Consulting and Infrastructure Solutions are the primary contributors to this revenue increase as the acquisition of OnX contributed $24.0 million in Consulting revenue and $14.7 million in Infrastructure Solutions revenue for the three months ended March 31, 2018.

Operating Costs and Expenses

Costs of services and products is predominantly impacted by fluctuations in the headcount and contractors required to deliver the services within Consulting, Cloud and Communications. The increase of $23.0 million in Costs of services and products for the three months ended March 31, 2018 as compared to the prior year is related to the acquisition of OnX, and consists primarily of payroll and contract services costs.

SG&A increased $19.0 million for the three months ended March 31, 2018 as compared to the prior year. The acquisition of OnX contributed an increase of $20.3 million. The increase from OnX was offset by a decrease of $1.3 million due to the restructuring that took place in 2017.

Capital Expenditures

Capital expenditures are dependent on the timing of success-based projects. The decrease in capital expenditures of $3.2 million is due to fewer of these types of projects in 2018 as compared to 2017.

31

Form 10-Q Part I Cincinnati Bell Inc.

Financial Condition, Liquidity, and Capital Resources

As of March 31, 2018, the Company had $1,745.1 million of outstanding indebtedness and an accumulated deficit of $2,647.9 million. A significant amount of the Company's accumulated deficit resulted from the purchase and operation of a national broadband business, which was sold in 2003.

The Company’s primary source of cash is generated by operations. The Company generated $58.5 million and $53.9 million of cash flows from operations during the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, the Company had $324.9 million of short-term liquidity, comprised of $32.4 million of cash and cash equivalents, $200.0 million of undrawn capacity on our Corporate Credit Agreement and $92.5 million available under the Receivables Facility. The Company expects to use a portion of this liquidity to fund part of the cash consideration for the Hawaiian Telcom merger.

The Receivables Facility permits maximum borrowings of up to $120.0 million and is subject to annual renewal. As of March 31, 2018, the Company had no borrowings and $6.7 million of letters of credit outstanding under the Receivables Facility on a borrowing capacity of $99.2 million. While we expect to continue to renew this facility, we would be required to use cash, our Revolving Credit Facility, or other sources to repay any outstanding balance on the Receivables Facility if it was not renewed.

The Company’s primary uses of cash are for capital expenditures and debt service and, to a lesser extent, to fund pension and retiree medical obligations and preferred stock dividends. In 2017, cash was also utilized to fund merger and acquisition activity. The Company believes that its cash on hand, cash generated from operations, and available funding under its credit facilities will be adequate to meet its cash requirements for the next twelve months. In addition, management expects that the Company will continue to have access to the capital markets to refinance debt and other obligations should such a need arise in the near future.

Cash Flows

Cash provided by operating activities during the three months ended March 31, 2018 totaled $58.5 million, an increase of $4.6 million compared to the same period in 2017. The increase is due primarily to the contribution from OnX partially offset by higher interest payments of $8.4 million.

Cash flows used by investing activities during the three months ended March 31, 2018 totaled $35.6 million, compared to $76.9 million of cash flows provided by investing activities in the prior year. The decrease in cash flows provided by investing activities was largely driven by the $140.7 million of cash proceeds received in the first quarter of 2017 from the sale of the Company's investment in CyrusOne. The decline in cash flows associated with CyrusOne were partially offset with a decrease in capital expenditures of $22.4 million due to declines in construction and installation capital for Fioptics.

Cash flows used by financing activities during the three months ended March 31, 2018 totaled $8.0 million as compared to $95.8 million of cash flows used in the prior year. In the first quarter of 2017, we repaid $89.5 million on the Receivables Facility as compared to no borrowings or payments in 2018.

Indentures

The Company’s Senior Notes are governed by indentures which contain covenants that, among other things, limit the Company’s ability to incur additional debt or liens, pay dividends or make other restricted payments, sell, transfer, lease or dispose of assets and make investments or merge with another company. The Company is in compliance with all of its debt indentures as of March 31, 2018.

Accounts Receivable Securitization Facility

In the second quarter of 2018, the Company plans to renew its Receivables Facility. The renewed agreement will replace, amend and add certain provisions and definitions to increase the credit availability, include an option to factor certain receivables, and add Cincinnati Bell Funding Canada ("CBFC") as a legal entity for the sale of receivables originating from certain Canadian subsidiaries in addition to the existing CBF legal entity that certain U.S. subsidiaries, or originators, sell their respective trade receivables. Although CBFC will be a wholly-owned consolidated subsidiary of the Company, CBFC will be legally separate from the Company and each of the Company’s other subsidiaries. Upon and after the sale or contribution of any accounts receivable to CBFC, such accounts receivable will legally be assets of CBFC and, as such, will not be available to creditors of other subsidiaries or the parent company.

32

Form 10-Q Part I Cincinnati Bell Inc.

Share Repurchase Plan

In 2010, the Board of Directors approved a plan for the repurchase of the Company's outstanding common stock in an amount up to $150.0 million. In prior years, the Company repurchased and retired a total of 1.7 million shares at a total cost of $25.6 million dollars. As of March 31, 2018, the Company has the authority to repurchase its common stock with a value of up to $124.4 million under the plan approved by its Board of Directors, subject to satisfaction of the requirements under its bond indentures.

Regulatory Matters

Refer to the Company’s Annual Report on Form 10-K for the year ended 2017 for a complete description of regulatory matters.

Contingencies

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 accounting principles generally accepted in the United States. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance.

Future Operating Trends

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for a complete description of future operating trends for our business.

Critical Accounting Policies

The Company’s consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Application of these principles requires management to make estimates or judgments that affect the amounts reported in the accompanying Condensed Consolidated Financial Statements and information available as of the date of the financial statements. As this information changes, the financial statements could reflect different estimates or judgments.

Revenue Recognition — Effective January 1, 2018, the Company adheres to revenue recognition principles described in Financial Accounting Standards Board (“FASB”) ASC 606, “Revenue Recognition.” Under ASC 606, revenue is recognized when the Company transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

For the sale of hardware within the Infrastructure Solutions category, we evaluate whether we are the principal and report revenues on a gross basis, or an agent and report revenues on a net basis. In this assessment, we consider if we obtain control of the specified goods or services before they are transferred to the customer as well as other indicators such as the party primarily responsible for fulfillment, inventory risk and discretion in establishing price. Based on these criteria, the Company acts as an agent and, as such, will record revenue associated with the sale of hardware net of the related cost of products.

Please see Note 1 of this Quarterly Report on Form 10-Q for the summary of significant accounting policies.

The Company’s most critical accounting policies and estimates are described in its Annual Report on Form 10-K for the year ended December 31, 2017. With the exception of revenue, there have been no other material changes to our critical accounting policies and estimates since our Annual Report on Form 10-K for the year ended December 31, 2017.

Recently Issued Accounting Standards

Refer to Note 1 of the Condensed Consolidated Financial Statements for further information on recently issued accounting standards and the impact to the Condensed Consolidated Financial Statements as a result of adopting ASU 2014-09 and ASU 2017-07 effective January 1, 2018.

33

Form 10-Q Part I Cincinnati Bell Inc.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for a description of the Company's market risks.

Item 4. Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

Cincinnati Bell Inc.’s management, with the participation of the Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined in SEC Rule 13a-15(e)) as of the end of the period covered by this report. Based on this evaluation, Cincinnati Bell Inc.’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, such controls and procedures were effective.

(b) Changes in internal control over financial reporting.

Cincinnati Bell Inc.’s management, with the participation of the Chief Executive Officer and Chief Financial Officer, have evaluated any changes in the Company’s internal control over financial reporting that occurred during the first quarter of 2018 and have concluded that there were no changes to Cincinnati Bell Inc.’s internal control over financial reporting during the first quarter of 2018 that materially affect, or are reasonably likely to materially affect, Cincinnati Bell Inc.’s internal control over financial reporting.

34

Table of Contents

Form 10-Q Part II Cincinnati Bell Inc.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Cincinnati Bell and its subsidiaries are involved in a number of legal proceedings. Liabilities are established for legal claims when losses associated with the claims are judged to be probable and the loss can be reasonably estimated. In many lawsuits and arbitrations, including most class action lawsuits, it is not possible to determine whether a liability has been incurred or to estimate the amount of the liability until the case is close to resolution, in which case a liability will not be recognized until that time. Based on information currently available, consultation with counsel, available insurance coverage and recognized liabilities, the Company believes that the eventual outcome of all claims will not, individually or in the aggregate, have a material effect on the Company’s financial position or results of operations.

Item 1A. Risk Factors

Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 for a comprehensive listing of the Company’s risk factors. There are no material changes for the three months ending March 31, 2018.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

During the three month period ended March 31, 2018, the Company had no unregistered sales of equity securities. The Company also had no purchases of its common stock for the three months ended March 31, 2018.

Item 3.        Defaults upon Senior Securities

None.

Item 4.        Mine Safety Disclosure

None.

Item 5.        Other Information

No reportable items.

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Table of Contents

Form 10-Q Part II Cincinnati Bell Inc.

Item 6.        Exhibits

Exhibits identified in parentheses below, on file with the SEC, are incorporated herein by reference as exhibits hereto.

Exhibit
Number	Description
(3.1)	Amended and Restated Articles of Incorporation of Cincinnati Bell Inc. (Exhibit 3.1 to Current Report on Form 8-K, Date of Report April 25, 2008, File No. 1-8519).
(3.2)	Amendment to the Amended and Restated Articles of Incorporation of Cincinnati Inc. (Exhibit 3.1 to Current Report on Form 8-K, Date of Report October 4, 2016, File No. 1-8519).
(3.3)	Amended and Restated Regulations of Cincinnati Bell Inc. (Exhibit 3.2 to Current Report on Form 8-K, Date of Report April 25, 2008, File No. 1-8519).
(10.1)+	Cincinnati Bell Inc. Form of Restricted Stock Unit Award (2017 Long-Term Incentive Plan).
(10.2)+	Cincinnati Bell Inc. Form of 2018-2020 Share-Based Performance Unit Award Agreement (2017 Long-Term Incentive Plan).
(31.1)+	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(31.2)+	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(32.1)+	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(32.2)+	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(101.INS)**	XBRL Instance Document.
(101.SCH)**	XBRL Taxonomy Extension Schema Document.
(101.CAL)**	XBRL Taxonomy Extension Calculation Linkbase Document.
(101.DEF)**	XBRL Taxonomy Extension Definition Linkbase Document.
(101.LAB)**	XBRL Taxonomy Extension Label Linkbase Document.
(101.PRE)**	XBRL Taxonomy Extension Presentation Linkbase Document.

+ Filed herewith.

** Submitted electronically with this report.

The Company's reports on Form 10-K, 10-Q, and 8-K are available free of charge in the Investor Relations section of the Company's website: http://www.cincinnatibell.com. The Company will furnish any other exhibit at cost.

36

Table of Contents

Form 10-Q Part II Cincinnati Bell Inc.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Cincinnati Bell Inc.
Date:	May 9, 2018	/s/ Andrew R. Kaiser
		Andrew R. Kaiser
		Chief Financial Officer
Date:	May 9, 2018	/s/ Shannon M. Mullen
		Shannon M. Mullen
		Chief Accounting Officer

37

EX-10.1

RESTRICTED STOCK UNIT AWARD

UNDER THE PROVISIONS OF THE

CINCINNATI BELL INC.

2017 LONG-TERM INCENTIVE PLAN

Name of Employee:PARTICIPANT NAME

Award Date:GRANT DATE

Number of Restricted Stock Units:  NUMBER OF AWARDS GRANTED

Under this agreement (this “Agreement”) and pursuant to the provisions of the Cincinnati Bell Inc. 2017 Long-Term Incentive Plan, as in effect on the date noted above (the “Award Date”) and as it may thereafter be amended (the “Plan”), the Compensation Committee of the Board of Directors (the “Compensation Committee”) of Cincinnati Bell Inc. (“CBI” or “Company”) hereby awards you the number shown above of restricted stock units of CBI (each a “Unit” and collectively the “Units”).

This Agreement is subject to the following terms and to all of the terms of the Plan. In the case of any conflict between this Agreement and the Plan, the Plan shall control. Capitalized terms used but not defined herein shall have the meanings set forth in the Plan. A copy of the Plan as in effect on the Award Date has been delivered to you.

1.Units Subject to this Agreement. This Agreement is made with respect to the number of Units shown above. Each Unit constitutes a right that you (or, in the event of your death prior to payment, the executor, administrator, or other personal representative of your estate) will receive one share, par value $.01 per share, of CBI (a “Share”) if you vest in the Unit pursuant to paragraph 2, 3, 4, 5, or 6 hereof. There are no other rights provided you (or your estate or any other person) under any of the Units.

You shall not in any manner be the record or beneficial owner of any Shares, and you have no rights or privileges with respect to any Shares, until and unless Shares are delivered to you (or, in the event of your death prior to payment, the executor, administrator, or other personal representative of your estate) upon vesting in accordance with the provisions of this Agreement.

2.Vesting Upon Passage of Time. If you are continuously an “Employee” (as defined in paragraph 8 hereof) for the period that begins on the Award Date and ends on the third annual anniversary of the Award Date, then: (i) on the last day of such period you shall be deemed vested in all of the Units awarded you under this Agreement; and (ii) CBI shall distribute to you (or, in the event of your death prior to payment, the executor, administrator, or other personal representative of your estate) a number of Shares equal to the number of such Units in which you are vested (subject to the tax withholding requirements included in the Plan). Such distribution shall be made within 60-days of the date that you become vested, with the specific date within such 60 consecutive day period to be chosen by the Compensation Committee in its discretion.

3.Vesting Upon Death. If you die while an Employee of CBI and prior to you being deemed vested in any of the Units awarded you under this Agreement pursuant to paragraph 2, 4, 5, or 6 hereof, then: (i) on the date of your death you shall be deemed vested in the number of Units (rounded up to the nearest whole Unit) that bears the same ratio to the total number of Units awarded you under this Agreement as the number of days in the period that begins on the Award Date and ends on the date of your death bears to the number of days in the period that begins on the Award Date and ends on the third annual anniversary of the

Award Date; and (ii) within the 60 consecutive day period that begins on the date of your death, CBI shall distribute to the executor, administrator, or other personal representative of your estate a number of Shares equal to the number of Units in which you have become vested under this paragraph 3 (subject to the tax withholding requirements included in the Plan).

4.Vesting Upon Disability. If, prior to you being deemed vested in any of the Units awarded you under this Agreement pursuant to paragraph 2, 3, 5, or 6 hereof, you become Disabled (as defined in subsection 2.9 of the Plan) while you are an Employee of CBI and are terminated as a result of such Disability, then (i) you shall be deemed vested in the number of Units (rounded up to the nearest whole Unit) that bears the same ratio to the total number of Units awarded you under this Agreement as the number of days in the period that begins on the Award Date and ends on the date of your termination bears to the number of days in the period that begins on the Award Date and ends on the third annual anniversary of the Award Date; and (ii) within the 60 consecutive day period that begins on the date of your termination, CBI shall distribute to you a number of Shares equal to the number of Units in which you have become vested under this paragraph 4 (subject to the tax withholding requirements included in the Plan).

5.Retirement. If you terminate employment with the Company due to your Retirement (within the meaning of that term as defined below), then you will be deemed to be employed by the Company or one of its subsidiaries continuously for a period that begins on the Award Date and ends on the third annual anniversary of the Award Date for purposes of determining the extent to which and the date on which any Units will have vested. CBI shall distribute to you (or, in the event of your death prior to payment, the executor, administrator or other personal representative of your estate) a number of Shares equal to the number of such Units in which you become vested (but subject to the tax withholding requirements included in the Plan). Such distribution shall be made on a date that is within January 25, 2021 and March 26, 2021, with the specific date within such period on which such distribution will be made being chosen by the Compensation Committee in its discretion.

For purposes of this paragraph 5, “Retirement” means your termination of employment with the Company (a) at least one year after the Award Date, (b) after you have both attained at least age 55 and completed at least 10 years of employment with the Company, and (c) other than by reason of your fraud, misappropriation or embezzlement, gross insubordination, failure to perform in good faith your assigned duties, or any other reason for which a termination of employment would be deemed for “cause” under any employment agreement between you and the Company that is in effect at the time of your termination of employment with the Company.

6.Change in Control. If a Change in Control (as defined in the Plan) occurs, prior either to any distribution being made or forfeiture occurring under any of the foregoing provisions of this Agreement, then (i) the provisions of section 17 of the Plan shall be deemed incorporated into this Agreement and shall apply to this Agreement and (ii) the other parts of this Agreement shall be subject to the terms of section 17 of the Plan.

7.Forfeiture. If you cease to be an Employee, then, except as provided in paragraphs 2, 3, 4, 5, and 6 hereof, the Units awarded under this Agreement shall be forfeited, and neither you nor your estate, or any other person attempting to claim rights under the Plan through you shall have any rights to Shares or other amounts by reason of such forfeited Units.

8.Employment. For purposes of this Agreement, you shall be deemed to be an “Employee” while, and only while, you are in the employ of the Company or any of its direct or indirect subsidiaries and considered such an employee under the policies and procedures (including the payroll and withholding procedures) of the Company and its subsidiaries. This Agreement does not constitute a contract of employment and does not give you the legal right to be continued as an Employee.

9.Interpretation. You acknowledge that the Compensation Committee has the authority to construe and interpret the terms of the Plan and this Agreement if and when any questions of meaning arise under the Plan or this Agreement, and any such construction or interpretation shall be binding on you, your heirs, executors, administrators, personal representatives and any other persons having or claiming to have an interest in the Units or Shares.

10. Withholding

(a)    If you become vested in any Units that are awarded under a restricted stock unit award granted to you pursuant to the Plan, then CBI shall distribute to you (or, in the event of your death before the payment, the executor, administrator, or other personal representative of your estate) a number of Shares equal to the number of such Units in which you are vested (but subject to the tax withholding requirements included in the Plan).

(b)Any taxes required to be withheld upon you (or the executor, administrator, or other personal representative of your estate) becoming entitled to the distribution of any Shares in connection with Units awarded to you under this Agreement must be paid in full at the time of such distribution. The procedures for meeting such requirements shall be established under the provisions of section 15 of the Plan.

11.Notices. All notices and other communications to be given hereunder shall be in writing and shall be deemed to have been duly given when delivered personally or when deposited in the United States mail, first class postage prepaid, and addressed as follows:

TO THE COMPANY:Cincinnati Bell Inc.

221 East Fourth Street

Cincinnati, Ohio 45202

Attention: Corporate Secretary

Any notice to the Employee or other person or persons succeeding to the Employee’s interest must be delivered to the Employee or such other person or persons at the Employee’s address on record with the Company or such other address as is specified in a notice filed with the Company.

12. Effect of Employment Agreement. Notwithstanding any of the provisions of the other parts of this Agreement, if the provisions of a written employment agreement between you and the Company or one of its direct or indirect subsidiaries would require for purposes of this Award that you be deemed to be employed by the Company or one of its subsidiaries until a date later than the actual date on which your employment terminates, then such employment agreement’s provisions shall control (and shall be deemed an amendment to this Agreement and incorporated herein by reference); provided that your actual termination of employment with the Company or one of its subsidiaries occurs at least one year after the Award Date and

only to the extent that such employment agreement’s provisions do not apply in the case of a termination of employment following a Change in Control.

13.Amendment. Any amendment to this Agreement must be in writing, signed by a duly authorized representative of the Company. The Compensation Committee reserves the right to amend this Agreement in any way it deems necessary or advisable to carry out the purpose of the grant or to comply with applicable laws or regulations or any future law, regulation, interpretation, ruling, or judicial decision.

14.Miscellaneous. This Agreement shall be binding upon the parties hereto and their respective heirs, executors, administrators, personal representatives, successors and assigns. Subject to the provisions of the Plan, this Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and shall be construed and interpreted in accordance with the laws of the State of Ohio. If any provisions of this Agreement shall be deemed to be invalid or void under any applicable law, the remaining provisions hereof shall not be affected thereby and shall continue in full force and effect.

IN ORDER TO GRANT THIS RESTRICTED STOCK UNIT AWARD, the Company and the Employee have caused this Agreement to be duly executed as of the dates noted below and, by signing below, agree to all of the terms of this Agreement.

EMPLOYEE:CINCINNATI BELL INC.

Phillip R. Cox

Chairman, Board of Directors

Date: ACCEPTANCE DATEDate: January 25, 2018

0127868.0611578 4842-5128-5082v7

EX-10.2

CINCINNATI BELL INC.

2018-2020 SHARE-BASED PERFORMANCE UNIT AWARD AGREEMENT

This Share-based Performance Unit Award Agreement (this “Award”) is made between Cincinnati Bell Inc. (the “Company” and, together with all of its subsidiary corporations and organizations, the “Employer”) and PARTICIPANT NAME (the “Employee”) and is effective as of GRANT DATE. By signing this Award, the Company and the Employee each agrees to all of the terms of this Award.

Share-based Performance Unit Award

Under and pursuant to the Cincinnati Bell Inc. 2017 Long-Term Incentive Plan, as in effect on the date noted above and as it may thereafter be amended, (the “Plan”), the Compensation Committee of the Company’s Board of Directors (the “Committee”) hereby, on behalf of the Company and subject to the Employee signing this Award and thereby agreeing to all of the terms of this Award, agrees that, to the extent required by and in accordance with the terms of this Award, the Company shall distribute the value of a number of Units (in the form of common shares of the Company (“Shares”) to or with respect to the Employee.

For purposes of this Award, (a) a “Unit” is a measure that is used to determine the number of Shares that will be distributed to or with respect to the Employee under this Award and (b) the “value” of a Unit that is to be distributed under this Award shall be deemed to be equal to 100% of the fair market value (determined in accordance with the Plan’s terms for determining fair market value) of one Share on the date of the distribution.

Terms Used In This Award

The following terms are used in determining the number of Units (if any) the value of which is to be distributed to or with respect to the Employee under this Award and shall have the meanings indicated below.

1. “Disability Termination” means, with respect to the Employee, the termination of the Employee’s employment with the Employer because the Employee is unable to perform all of the duties of the Employee’s then current position with the Employer due to a physical or mental condition, provided that such inability to perform such duties is reasonably expected to be permanent.

a. The Committee must determine that all of the above conditions are met for the Employee to be deemed to have incurred a Disability Termination.

b. In order to make such a determination, the Committee may in its discretion require that the Employee’s condition of disability at the time of the Employee’s termination of employment be certified by a physician chosen or approved by the Committee or that the Employee present evidence that the Employee has been determined by the U.S. Social Security Administration to have been disabled at the time of such termination of employment.

2. “Adjusted Unlevered Operating Cash Flow” means the Employer’s Cash Flows from Operating Activities (as defined by U.S. GAAP) adjusted to exclude expenses related to (1) cash paid for interest on (a) all long-term debt, (b) capital lease obligations, and (c) other financing arrangements for the Performance Period (computed on the basis of the Employer’s interest expense for purposes of the Employer’s applicable income statements as determined in accordance with U.S. GAAP, less non-cash items); and (2) Transaction and Integration Costs.

3. “Adjusted Unlevered Operating Cash Flow Result” means the quotient produced by dividing (a) the Adjusted Unlevered Operating Cash Flow for the Performance Period by (b) the approved Adjusted

Unlevered Operating Cash Flow goal for each Performance Period, with such quotient expressed as a percentage to the nearest one-tenth of one percent. For all purposes of this Award and section 17 of the Plan, an Adjusted Unlevered Operating Cash Flow Result of 100% shall be deemed the “target” Adjusted Unlevered Operating Cash Flow Result.

4. “Adjusted Unlevered Operating Cash Flow Result Percentage” means the Adjusted Unlevered Operating Cash Flow Result Percentage that is determined from the following table (which percentage is based on the Adjusted Unlevered Operating Cash Flow Result):

If Adjusted UnleveredOperating Cash Flow Result is:	Then Adjusted UnleveredOperating Cash Flow Result Percentage is:
Under 95%	0%
95%	50%
100% (“target” Adjusted Unlevered Operating Cash Flow Result)	100%
110%	125%
120% or greater	150%

If the Adjusted Unlevered Operating Cash Flow Result is between 95% and 100%, between 100% and 110%, or between 110% and 120% the Adjusted Unlevered Operating Cash Flow Result Percentage shall be interpolated from the above table (on the basis that the Adjusted Unlevered Operating Cash Flow Result Percentage increases from 50% to 100%, from 100% to 125%, and from 100% to 150% respectively on a linear basis), to the nearest one-tenth of one percent.

5. “Performance Period” means each period for which the value of Units may be calculated under this Award. The Performance Periods are:

a. “2018 Performance Period,” which begins on January 1, 2018 and ends on December 31, 2018;

b. “2018-2019 Performance Period,” which begins on January 1, 2018 and ends on December 31, 2019; and

c. “2018-2020 Performance Period,” which begins on January 1, 2018 and ends on December 31, 2020.

6. “Relative Total Shareholder Return” means the rank (by percentile) of the Company’s total shareholder return for the Performance Period when compared to the total shareholder return for the Performance Period of all companies in the Telecom Peer Group. For all purposes of this Award and section 17 of the Plan, a Relative Total Shareholder Return of at least 50th but not greater than the 60^th percentile shall be deemed the “target” Relative Total Shareholder Return.

7. “Relative Total Shareholder Return Percentage” means the Relative Total Shareholder Return Percentage that is determined from the following table (which percentage is based on the Relative Total Shareholder Return):

If Relative Total Shareholder Return Is:	Then Relative Total Shareholder Return Percentage Is:
Less than 20th Percentile	0.0%
At least20th Percentile but less than 30th Percentile	25.0%
At least 30th Percentile but less than 40th Percentile	50.0%
At least40th Percentile but less than 50th Percentile	75.0%
At least 50th Percentile but less than 60th Percentile (“target” Relative Total Shareholder Return)	100.0%
At least 60th Percentile but less than 70th Percentile	112.5%
At least 70th Percentile but less than 80th Percentile	125.0%
At least 80th Percentile but less than 90th Percentile	137.5%
90th Percentile or greater	150.0%

8. “Retirement” means, with respect to the Employee, the Employee’s termination of employment with the Employer (a) at least one year after the effective date of this Award, (b) after the Employee has both attained at least age 55 and completed at least 10 years of employment with the Employer, and (c) other than by reason of the Employee’s fraud, misappropriation or embezzlement, gross insubordination, failure to perform in good faith the Employee’s assigned duties, or any other reason for which a termination of employment would be deemed for “cause” under any employment agreement between the Employee and the Employer that is in effect at the time of the Employee’s termination of employment with the Employer.

9. “Share-based Performance Unit Percentage” means, for the 2018 Performance Period, the 2018-2019 Performance Period, or the 2018-2020 Performance Period, the sum of (a) the Adjusted Unlevered Operating Cash Flow Result Percentage, determined for such Performance Period from the table for Adjusted Unlevered Operating Cash Flow Result Percentage above, multiplied by 70%, and (b) the Relative Total Shareholder Return Percentage, determined for such Performance Period from the table for Relative Total Shareholder Return Percentage above, multiplied by 30%.

10. “Target Number of Units” means NUMBER OF AWARDS GRANTED Units

11. “Telecom Peer Group” means the Telecommunications Peer Group approved by the Committee as in effect on the last day of the respective Performance Period.

12. “Transaction and Integration Costs” means the total amount of costs and expenses reflected on the Employer’s Consolidated Statement of Operations that the Committee determines factually relates to the sale, purchase, or integration of any business unit or subsidiary.

General Rules for Payment of and Conditions for Award

For purposes of this “General Rules for Payment of and Conditions for Award” part of the Award:

1. “payment date” means March 15, 2021 (or, if earlier, any date that occurs between January 1, 2021 and March 15, 2021 and that is chosen by the Company for payment of the amount, if any, to be distributed under this part of the Award); and

2. “payment eligible” means, with respect to the Employee, either (i) that the Employee is still employed by the Employer on the payment date, (ii) that the Employee’s employment with the Employer ended after the date as of which this Award became effective and before the payment date because of the

Employee’s Retirement or Disability Termination, or (iii) that the Employee’s employment with the Employer ended after December 31, 2020 and before the payment date because of the Employee’s death.

Except as is otherwise provided in the following parts of this Award, the Company shall, on the payment date and provided that the Employee is payment eligible, distribute to the Employee (or, in the event the Employee has died by the time of the payment, the Employee’s beneficiary) the value of the number of Units determined by the following steps (with the final number of Units the value of which will be distributable being the number of Units determined from the result of step 4 below):

1. first multiplying (a) 50% of the Target Number of Units by (b) the Share-based Performance Unit Percentage for the 2018 Performance Period;

2. second multiplying (a) 25% of the Target Number of Units by (b) the Share-based Performance Unit Percentage for the 2018-2019 Performance Period;

3. third multiplying (a) 25% of the Target Number of Units by (b) the Share-based Performance Unit Percentage for the 2018-2020 Performance Period; and

4. fourth (and last), by adding the results of steps 1, 2, and 3 above.

The Committee shall verify (and report to the Company) the resulting number of Units the value of which will be distributed by the Company to the Employee pursuant to this Award within a reasonable period after the end of the 2018-2020 Performance Period (but in no event later than the start of the first March 15 that occurs after the end of the 2018-2020 Performance Period).

Special Rules for Payment of Award Upon Employee’s Death Prior to 2021

Subject to the following parts of this Award, if the Employee dies (a) prior to January 1, 2021 and (b) while the Employee is still employed by the Employer, then the Company shall, within 60 days after the date of the Employee’s death and in lieu of any other distribution being made under this Award, distribute to the Employee’s beneficiary the value of a number of Units that is equal to the number of Units that would have been paid to the Employee if both (i) the Employee had survived and remained continuously employed by the Employer from the date on which this award is granted until at least March 15, 2021 and (ii) the result of each performance goal applicable to this Award was satisfied at this Award’s “target” result for such goal (the result that gives a 100% percentage for applying such result under this Award).

Forfeiture of Award

Subject to the following parts of this Award, except for the value of such number of Units that the Company distributes pursuant to any of the foregoing parts of this Award, all of the Employee’s rights under this Award, including the Employee’s rights to receive any distribution under this Award (other than a distribution required to be made under any of the foregoing parts of this Award), automatically will be permanently forfeited upon the earliest of: (a) March 15, 2021; (b) the date that the Employee’s employment with the Employer terminates for any reason; or (c) the date on which a distribution is made under any of the foregoing parts of this Award.

Special Rules for Change in Control

Notwithstanding any of the other parts of this Award, if a Change in Control (as is defined in the Plan) occurs prior either to any distribution being made or forfeiture occurring under any of the foregoing parts of this

Award, then (i) the provisions of section 17 of the Plan shall be deemed incorporated into this Award and shall apply to this Award and (ii) the other parts of this Award shall be subject to the terms of section 17 of the Plan.

Employment Termination

For all purposes of this Award, the Employee’s employment with the Employer shall be deemed to have terminated when the Employee’s status as an employee on an active employee payroll maintained by the Employer for payment and withholding purposes ends.

Beneficiary

For all purposes of this Award, the Employee’s “beneficiary” shall be the person or entity designated by the Employee, in a writing delivered prior to the Employee’s death to the Company’s Corporate Secretary, to be the Employee’s beneficiary under this Award.

Should the Employee die prior to designating a beneficiary, then the Employee’s beneficiary for purposes of this Award shall be deemed to be the Employee’s surviving spouse or, if none, the Employee’s estate.

Effect of Employment Agreement

Notwithstanding any of the provisions of the other parts of this Award, if the provisions of a written employment agreement between the Company and the Employee would require for purposes of this Award that the Employee be deemed to be employed by the Employer until a date later than the actual date on which the Employee’s employment with the Employer terminates, then such employment agreement’s provisions shall control (and shall be deemed an amendment to this Award and incorporated herein by reference); provided that the Employee’s actual termination of employment with the Employer occurs at least one year after the effective date of this Award and only to the extent that such employment agreement’s provisions do not apply in the case of a termination of employment following a Change in Control.

Payment in Shares

Notwithstanding any other provision of this Award to the contrary, the value of any Units that is required to be distributed under this Award on any date shall be made in Shares. The number of Shares to be distributed on such date shall be equal to the number of Shares that have a fair market value (determined as of such distribution date and in accordance with the Plan’s terms for determining fair market value) equal to the value of the Units required to be distributed under this Award.

Distribution of Shares and Statements of Holding

For all purposes of this Award, the Company shall be deemed to have distributed Shares to the Employee (or the Employee’s beneficiary) pursuant to this Award as of any date by transferring the ownership of such Shares on the Company’s records to the Employee (or, if applicable, the Employee’s beneficiary) on such date. Such transfer shall make the Employee (or, if applicable, the Employee’s beneficiary) the legal owner of such Shares.

Further, on or as soon as possible after any date on which the Company transfers the ownership of any Shares on the Company’s records to the Employee (or, if applicable, the Employee’s beneficiary) pursuant to this Award, the Company will provide to the Employee (or, if applicable, to the Employee’s beneficiary) a statement of holding that indicates the number of Shares the Employee owns in book-entry form.

Withholding Requirements

The Employer shall satisfy all federal, state, and local tax withholding requirements related to the Company’s distribution of any Shares pursuant to this Award. The Company shall satisfy such tax withholding requirements by, without any advance notice having to be given to the Employee (or the Employee’s beneficiary), either:

1. withholding an amount sufficient to meet such requirements from any amounts payable to or with respect to the Employee by the Employer other than by reason of this Award;

2. retaining Shares having a fair market value sufficient to meet such requirements from the Shares that the Company would otherwise distribute pursuant to this Award; or

3. combining the methods described in clauses 1 and 2 above.

The Employer may choose the method by which such tax withholding requirements shall be satisfied, in its sole discretion.

Regulatory Compliance

Notwithstanding any other provision of this Award, Shares may be distributed by the Company under this Award at any time only upon full compliance with all then-applicable requirements of law and the requirements of the exchange upon which Shares may then be traded.

Investment Representation

The Employee represents and agrees that if the Employee is distributed any Shares at a time when there is not in effect under the Securities Act of 1933 a registration statement pertaining to the Shares and there is not available for delivery a prospectus meeting the requirements of Section 10(A)(3) of such Act:

1. the Employee will accept and receive such Shares for the purpose of investment and not with a view to their resale or distribution;

2. the Employee, upon receipt of such Shares, will furnish to the Company an investment letter in form and substance satisfactory to the Company;

3. the Employee, prior to selling or offering for sale any such Shares, will furnish the Company with an opinion of counsel satisfactory to the Company to the effect that such sale may lawfully be made and will furnish the Company with such certifications as to factual matters as the Company may reasonably request; and

4. the transfer agent holding the Employee’s Shares in book-entry form will be notified of the restrictions on sale or transfer.

Adjustments

If, after the date of this Award, the Shares are, as a result of a merger, reorganization, consolidation, recapitalization, reclassification, split-up, spin-off, separation, liquidation, stock dividend, stock split, reverse stock split, property dividend, share repurchase, share combination, share exchange, issuance of warrants, rights, or debentures, or other change in the corporate structure of the Company, increased or decreased or

changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another organization, then:

1. there automatically shall be substituted for each Unit that is still subject to this Award a Unit that on the date on which any distribution is to be made under this Award has a value equal to 100% of the fair market value (determined in accordance with the Plan’s terms for determining fair market value) of the number and kind of shares of stock or other securities into which each Share is changed or for which each Share is exchanged; and

2. the Company shall make such other adjustments to the Units subject to provisions of the Plan and this Award as may be appropriate and equitable.

Notices

Any notice to the Company relating to this Award must be in writing and delivered in person or by registered mail to the Company at the following address, Cincinnati Bell Inc., 221 East Fourth Street, Cincinnati, Ohio 45202, Attention: Corporate Secretary, or at such other address as the Company has designated by notice.

Any notice to the Employee or other person or persons succeeding to the Employee’s interest must be delivered to the Employee or such other person or persons at the Employee’s address on record with the Company or such other address as is specified in a notice filed with the Company.

Determinations of the Committee Final

Any dispute or disagreement which arises under, as a result of, or in any way relates to the interpretation or construction of this Award shall be determined by the Committee. The Employee hereby agrees to accept any such determination as final, binding, and conclusive for all purposes.

Successors

All rights under this Award are personal to the Employee and are not transferable except that, in the event of the Employee’s death, such rights are transferable to the Employee’s legal representatives, heirs, or legatees. This Award shall inure to the benefit of and be binding upon the Company and its successors and assigns and the Employee and the Employee’s legal representatives, heirs, and legatees.

Obligations of the Company

The liability of the Company under the Plan and this Award is limited to the obligations set forth in the Plan and this Award. No term or provision of the Plan or this Award shall be construed to impose any liability on the Company in favor of the Employee with respect to any loss, cost, or expense which the Employee may incur in connection with or arising out of any transaction in connection therewith.

No Guarantee of Employment

The granting of this Award to the Employee does not constitute a contract of employment and does not give the Employee the legal right to be continued as an employee of the Employer. The Employer may deal with the Employee and the terms of the Employee’s employment as if this Award did not exist.

Governing Law

This Award will be governed by and interpreted in accordance with the laws of the State of Ohio.

Plan

This Award is issued under the Plan, the Cincinnati Bell Inc. 2017 Long-Term Incentive Plan. Except as is otherwise specifically provided herein, this Award is subject to all of the terms of the Plan and the provisions of the Plan shall control if there is any conflict between the Plan and this Award and with respect to any matters that are not addressed in this Award. The Plan is incorporated by reference and made a part of this Award.

Entire Award

This Award and the Plan supersede any other agreement, whether written or oral, that may have been made or entered into by the Employer and the Employee relating to the Units that are subject to this Award and any Shares that may be payable with respect to such Units. Further, this Award and the Plan constitute the entire agreement by the parties related to such matters and there are no agreements or commitments except as set forth herein and in the Plan.

Captions; Counterparts

The captions in this Award are for convenience only and shall not be considered a part of or affect the construction or interpretation of any provision of this Award. This Award may be executed in any number of counterparts, each of which shall constitute one and the same instrument.

IN ORDER TO GRANT THIS SHARE-BASED PERFORMANCE UNIT AWARD, the Company and the Employee have caused this Award to be duly executed as of the dates noted below and, by signing below, agree to all of the terms of this Award.

EMPLOYEE:CINCINNATI BELL INC.

Phillip R. Cox

Chairman, Board of Directors

Date: ACCEPTANCE DATEDate: January 25, 2018

0127868.0611578 4833-2297-0202v11    

EX-31.1

Exhibit 31.1

Certifications

I, Leigh R. Fox, Chief Executive Officer, certify that:

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:	May 9, 2018	/s/ Leigh R. Fox
		Leigh R. Fox
		Chief Executive Officer

EX-31.2

Exhibit 31.2

Certifications

I, Andrew R. Kaiser, Chief Financial Officer, certify that:

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:	May 9, 2018	/s/ Andrew R. Kaiser
		Andrew R. Kaiser
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cincinnati Bell Inc. (the “Company”) on Form 10-Q for the period ending March 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Leigh R. Fox, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(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/ Leigh R. Fox

Leigh R. Fox

Chief Executive Officer

May 9, 2018

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Cincinnati Bell Inc. (the “Company”) on Form 10-Q for the period ending March 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Andrew R. Kaiser, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(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/ Andrew R. Kaiser

Andrew R. Kaiser

Chief Financial Officer

May 9, 2018

XML

Document and Entity Information Document - shares	3 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document and Entity [Abstract]
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	Mar. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		42,397,151

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue	$ 295.7	$ 249.6
Costs and expenses
Cost of services and products, excluding items below	149.4	124.1
Selling, general and administrative, excluding items below	68.4	55.3
Depreciation and amortization	51.2	45.8
Restructuring and severance related charges	0.3	25.6
Transaction and integration cost	2.2	0.6
Total operating costs and expenses	271.5	251.4
Operating income (loss)	24.2	(1.8)
Interest expense	30.8	18.0
Other components of pension and postretirement benefit plans expense	3.3	3.2
Gain on sale of Investment in CyrusOne	0.0	(117.7)
Other income, net	(0.4)	(0.4)
(Loss) income before income taxes	(9.5)	95.1
Income tax (benefit) expense	(1.2)	34.5
Net (loss) income	(8.3)	60.6
Preferred stock dividends	2.6	2.6
Net (loss) income applicable to common shareowners	$ (10.9)	$ 58.0
Basic net (loss) earnings per common share	$ (0.26)	$ 1.38
Diluted net (loss) earnings per common share	$ (0.26)	$ 1.37

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Net (loss) income	$ (8.3)	$ 60.6
Other comprehensive income (loss), net of tax:
Unrealized gains on Investment in CyrusOne, net of tax of $4.4	0.0	8.3
Reclassification adjustment for gain on sale of Investment in CyrusOne included in net income, net of tax of ($41.3)	0.0	(76.4)
Foreign currency translation loss	(1.8)	0.0
Defined benefit plans:
Amortization of prior service benefits included in net income, net of tax of ($0.2), ($0.4)	(0.6)	(0.7)
Amortization of net actuarial loss included in net income, net of tax of $1.2, $2.0	4.1	3.5
Total other comprehensive income (loss)	1.7	(65.3)
Total comprehensive loss	$ (6.6)	$ (4.7)

XML

Condensed Consolidated Statements of Comprehensive Income Parenthetical - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Unrealized gains on Investment in CyrusOne, tax	$ 0.0	$ 4.4
Reclassification adjustment for gain on sale of Investment in CyrusOne included in net income, tax	0.0	(41.3)
Amortization of prior service benefits included in net income, tax	(0.2)	(0.4)
Amortization of net actuarial loss included in net income, tax	$ 1.2	$ 2.0

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 32.4	$ 17.8
Restricted Cash	379.8	378.7
Receivables, less allowances of $9.6 and $10.4	232.4	239.8
Inventory, materials and supplies	45.0	44.3
Prepaid expenses	23.7	22.2
Other current assets	9.4	7.6
Total current assets	722.7	710.4
Property, plant and equipment, net	1,118.8	1,129.0
Goodwill	150.7	151.0
Intangible assets, net (excluding goodwill)	128.7	132.3
Deferred income taxes, net	13.1	12.2
Other noncurrent assets	52.0	52.7
Total assets	2,186.0	2,187.6
Current liabilities
Current portion of long-term debt	18.2	18.4
Accounts payable	195.7	185.6
Unearned revenue and customer deposits	39.3	36.3
Accrued taxes	18.0	21.2
Accrued interest	33.1	29.9
Accrued payroll and benefits	39.5	28.7
Other current liabilities	29.2	37.2
Total current liabilities	373.0	357.3
Long-term debt, less current portion	1,726.9	1,729.3
Pension and postretirement benefit obligations	173.2	177.5
Deferred income tax liabilities	12.2	11.2
Other noncurrent liabilities	28.6	30.2
Total liabilities	2,313.9	2,305.5
Shareowners' Deficit [Abstract]
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 March 31, 2018 and December 31, 2017; liquidation preference $1,000 per share ($50 per depositary share)	129.4	129.4
Common shares, $.01 par value; 96,000,000 shares authorized; 42,394,151 and 42,197,965 shares issued and outstanding at March 31, 2018 and December 31, 2017	0.4	0.4
Additional paid-in capital	2,562.2	2,565.6
Accumulated deficit	(2,647.9)	(2,639.6)
Accumulated other comprehensive loss	(172.0)	(173.7)
Total shareowners' deficit	(127.9)	(117.9)
Total liabilities and shareowners' deficit	$ 2,186.0	$ 2,187.6

XML

Condensed Consolidated Balance Sheets Parenthetical - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2016	Dec. 31, 2017
Allowance for receivables	$ 9,600,000		$ 10,400,000
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, Depositary Shares	3,105,000		3,105,000
Preferred Stock, Dividend Rate, Percentage	6.75%	6.75%
Preferred Stock, Liquidation Preference Per Share	$ 1,000		$ 1,000
Preferred Stock Liquidation Depositary Per Share	$ 50		$ 50
Common Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01
Common Stock, Shares Authorized	96,000,000		96,000,000
Common Stock, Shares, Issued	42,394,151		42,197,965
Common Stock, Shares, Outstanding	42,394,151		42,197,965

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities
Net (loss) income	$ (8.3)	$ 60.6
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	51.2	45.8
Gain on sale of Investment in CyrusOne	0.0	(117.7)
Provision for loss on receivables	1.0	1.8
Noncash portion of interest expense	0.8	0.5
Deferred income taxes	(1.2)	34.5
Pension and Other postretirement payments less than expense	0.4	1.0
Stock-based compensation	1.2	2.9
Other, net	(2.0)	(1.2)
Changes in operating assets and liabilities, net of effects of acquisitions:
Decrease in receivables	6.5	14.6
Increase in inventory, materials, supplies, prepaid expenses and other current assets	(4.4)	(5.6)
Increase in accounts payable	3.6	5.8
Increase in accrued and other current liabilities	9.6	7.1
Decrease in other noncurrent assets	0.5	0.5
(Decrease) increase in other noncurrent liabilities	(0.4)	3.3
Net cash provided by operating activities	58.5	53.9
Cash flows from investing activities
Capital expenditures	(32.7)	(55.1)
Proceeds from sale of Investment in CyrusOne	0.0	140.7
Acquisitions of businesses	(2.8)	(9.2)
Other, net	(0.1)	0.5
Net cash (used in) provided by investing activities	(35.6)	76.9
Cash flows from financing activities
Net decrease in corporate credit and receivables facilities with initial maturities less than 90 days	0.0	(89.5)
Repayment of debt	(3.0)	(2.1)
Debt issuance costs	(0.4)	(0.5)
Dividends paid on preferred stock	(2.6)	(2.6)
Other, net	(2.0)	(1.1)
Net cash used in financing activities	(8.0)	(95.8)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	0.8	0.0
Net increase in cash, cash equivalents and restricted cash	15.7	35.0
Cash, cash equivalents and restricted cash at beginning of period	396.5	9.7
Cash, cash equivalents and restricted cash at end of period	412.2	44.7
Noncash investing and financing transactions:
Acquisition of property by assuming debt and other noncurrent liabilities	0.0	6.9
Acquisition of property on account	$ 17.6	$ 27.3

XML

Description of Business and Accounting Policies

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

Description of Business and Accounting Policies

Description of Business — Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell", "we", "our", "us" or the "Company") provides diversified telecommunications and technology services. The Company generates a large portion of its revenue by serving customers in the Greater Cincinnati and Dayton, Ohio areas. An economic downturn or natural disaster occurring in this, or a portion of this, limited operating territory could have a disproportionate effect on our business, financial condition, results of operations and cash flows compared to similar companies of a national scope and similar companies operating in different geographic areas.

The Company has receivables with one large customer, General Electric Company, that makes up 10% of the outstanding accounts receivable balance as of March 31, 2018 and December 31, 2017. Revenue derived from foreign operations is approximately 6% of consolidated revenue for the three months ended March 31, 2018.

Merger Activity - In July 2017, the Company announced its plans to acquire Hawaiian Telcom Holdco, Inc. (“Hawaiian Telcom”) through a merger. On April 30, 2018, the Hawaii Public Utilities Commission issued a decision and order approving the merger, subject to the parties’ compliance with certain conditions. Accordingly, the closing of the merger is subject only to the receipt of regulatory approval from the Federal Communications Commission and the satisfaction of other customary closing conditions. We expect the merger to close in the second quarter of 2018.

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, other comprehensive income, 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.

Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers and ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standards. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation, as a result of adopting the new standards.

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups Competitive Local Exchange Carrier ("CLEC") revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. Accordingly, the Company recast the previously reported 2017 segment disclosures. See Note 11 for all required disclosures.

The Condensed Consolidated Balance Sheet as of December 31, 2017 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 2017 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results expected for the full year or any other interim period.

Business Combinations — In accounting for business combinations, we apply the accounting requirements of ASC 805, “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing estimates of fair value of acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition and transaction costs are expensed as incurred. See Note 4 for required disclosures related to mergers and acquisitions.

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.

Investment in CyrusOne — In the first quarter of 2017, the Company sold its remaining 2.8 million shares of CyrusOne Inc. common stock for net proceeds totaling $140.7 million that resulted in a realized gain of $117.7 million. As of March 31, 2017, we no longer have an investment in CyrusOne Inc.

Income and Operating Taxes

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.

During 2017, the Company re-classed $14.9 million of Alternative Minimum Tax ("AMT") refundable tax credits from "Deferred income taxes, net" to "Receivables" as these credits are expected to be utilized during 2018. Acceleration of the AMT refundable tax credits was the result of the Company's decision to make an election on its 2017 federal income tax return to claim the credits in lieu of claiming bonus depreciation. In addition, new tax legislation enacted in 2017 repealed AMT for corporate tax payers.  The balance of any remaining AMT credits will be refunded over the next 5 years beginning with the return filed in 2019. In the three months ended March 31, 2018, the Company re-classed $0.7 million from "Deferred income taxes, net" to "Receivables" as it expects to receive this portion of the remaining AMT credits in 2019.

Operating taxes — The Company elected to record certain operating taxes such as property, sales, use, and gross receipts taxes including telecommunications surcharges as expenses, primarily within cost of services. These taxes are not included in income tax expense because the amounts to be paid are not dependent on our level of income. Liabilities for audit exposures are established based on management's assessment of the probability of payment. The provision for such liabilities is recognized as either property, plant and equipment, operating tax expense, or depreciation expense depending on the nature of the audit exposure. Upon resolution of an audit, any remaining liability not paid is released against the account in which it was originally recorded. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, at the time of adoption of ASC 606, revenue associated with these charges is excluded from the transaction price.  This approach is consistent with how these taxes were previously recorded under ASC Topic 605.

Recently Issued Accounting Standards — In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows entities to elect to make a one-time reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The ASU is effective for public entities for annual reporting periods beginning after December 15, 2018, and for interim periods within those fiscal years. Early adoption is permitted. The Company early adopted this guidance effective December 31, 2017, resulting in a provisional reclassification adjustment of $32.2 million to "Accumulated deficit" from "Other comprehensive loss" on the Consolidated Balance Sheets. The amount of the reclassification is calculated on the basis of the difference between the historical and newly enacted tax rates on deferred taxes related to our pension and postretirement benefit plans.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation, which amends the scope of modification accounting for share-based payment arrangements. The ASU is effective for public business entities for annual periods beginning after December 15, 2017. The Company prospectively adopted the standard effective January 1, 2018 and has applied the amended guidance to any awards modified on or after this date.

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amends the requirements in ASC 715 related to the income statement presentation of the components of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. The ASU requires entities to disaggregate the current service cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement. The other components shall be presented elsewhere in the income statement and outside of income from operations, if such a subtotal is presented, on a retrospective basis as of the date of adoption. In addition, only the service cost component of net benefit cost is eligible for capitalization on a prospective basis. The ASU is effective for public business entities for annual periods beginning after December 15, 2017. The Company retrospectively adopted the standard effective January 1, 2018. The Company re-classed $1.7 million and $1.5 million of other components of net benefit cost from "Cost of Services" and "Selling, general and administrative," respectively, to a new line below Operating income, "Other components of pension and postretirement benefit plans expense," on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2017.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow - Classification of Certain Cash Receipts and Cash Payments, which amends ASC 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The FASB issued the ASU with the intent of reducing diversity in practice. The ASU is effective for public entities for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this standard effective January 1, 2018. The adoption of this standard did not have a material effect on the Company’s Consolidated Statement of Cash Flows.

In February 2016, the FASB issued ASU 2016-02, Leases, which represents a wholesale change to lease accounting. The standard introduces a lessee model that brings most leases on the balance sheet as well as aligns certain underlying principles of the new lessor model with those in ASC 606. The ASU is effective for public entities for fiscal years beginning after December 15, 2018. As issued, the standard requires lessors and lessees to use a modified retrospective transition method for existing leases. On January 5, 2018, the FASB issued a proposed ASU that would allow entities to elect a practical expedient when adopting the guidance to not restate their comparative periods in transition as well as providing lessors with a practical expedient to not separate lease and nonlease components if certain criteria are met. Once the ASU is final, the Company plans to elect both practical expedients upon adoption. The Company is in the process of evaluating the impact of adoption of this ASU on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard also includes expanded disclosure requirements that result in an entity providing users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The Company adopted the new standard and all subsequent amendments as of January 1, 2018 using the full retrospective method which requires each prior reporting period presented to be adjusted beginning with this issuance of the Company’s 2018 interim financial statements.

The most significant impact of adopting the new standard is the change to the treatment of hardware revenue in the Infrastructure Solutions category from recording hardware revenue as a principal (gross) to recording revenue as an agent (net). Based on our assessment of ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), issued by the FASB in March 2016, the Company acts as an agent and as such will record hardware sales net of the related cost of products. ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations focusing on a control model rather than a risk and reward model. As a result of adopting ASU 2014-09, revenue and cost of products for the three months ended March 31, 2017 decreased by $28.6 million. Changes in accounting policies related to variable consideration or rebates did not have a material effect on the financial statements. Fulfillment and acquisition costs that are now recorded as an asset and amortized on a monthly basis decreased expense for the three months ended March 31, 2017 by $0.3 million and increased basic earnings per share for the three months ended March 31, 2017 by $0.01. An incremental asset related to fulfillment and acquisition costs of $32.3 million was recorded on the balance sheet as of December 31, 2017, with an offsetting reduction in "Accumulated deficit." As a result of the entry, total contract asset related to fulfillment and acquisition costs was $32.4 million as of December 31, 2017. The impact of these adjustments resulted in a decrease of $7.1 million to "Deferred income tax assets" as of December 31, 2017, with the offset to "Accumulated deficit." See Note 3 for required disclosures as a result of adopting ASC Topic 606.

Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

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 stock-based compensation plans or conversion of preferred stock, but only to the extent that they are considered dilutive.

The following table shows the computation of basic and diluted EPS:

	Three Months Ended
	March 31,
(in millions, except per share amounts)	2018			2017
Numerator:
Net (loss) income	$	(8.3	)	$	60.6
Preferred stock dividends	2.6			2.6
Net (loss) income applicable to common shareowners - basic and diluted	$	(10.9	)	$	58.0
Denominator:
Weighted average common shares outstanding - basic	42.3			42.1
Stock-based compensation arrangements	—			0.2
Weighted average common shares outstanding - diluted	42.3			42.3
Basic net (loss) earnings per common share	$	(0.26	)	$	1.38
Diluted net (loss) earnings per common share	$	(0.26	)	$	1.37

For the three months ended March 31, 2018, the Company had a net loss available to common shareholders and, as a result, all common stock equivalents were excluded from the computation of diluted EPS as their inclusion would have been anti-dilutive. For the three months ended March 31, 2017, awards under the Company's stock-based compensation plans for common shares of 0.2 million were excluded from the computation of diluted EPS as the inclusion would have been anti-dilutive. For all periods presented, preferred stock convertible into 0.9 million common shares was excluded as it was anti-dilutive.

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Revenue (Notes)

3 Months Ended

Mar. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

The Entertainment and Communications segment provides products and services to both consumer and enterprise customers that can be categorized as either Fioptics, Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Fioptics and Legacy revenue include both consumer and enterprise customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers. Consumer customers have implied month-to-month contracts, while enterprise customers typically have contracts with a duration of one to five years and automatically renew on a month to month basis. Customers are invoiced on a monthly basis for services rendered. Contracts for projects that are included within the Other revenue stream are typically short in duration and less than one year.

The IT Services and Hardware segment provides a full range of Information Technology ("IT") solutions, including Communications, Cloud and Consulting services. IT Services and Hardware customers enter into contracts that have a typical duration of one to five years, with renewal options at the end of the term. Customers are invoiced on a monthly basis for services rendered. The IT Services and Hardware segment also provides enterprise customers with Infrastructure Solutions, which includes the sale of hardware and maintenance contracts. These contracts are typically satisfied in less than twelve months and revenue is recognized at a point in time.

The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which was adopted on January 1, 2018, using the full retrospective method. See below for further discussion of the adoption, including the impact on our 2017 financial statements.

The Company has elected the practical expedient described in ASC 606-10-32-18 that allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects that the period of time between the transfer of a promised good or service to the customer and when the customer pays will be one year or less. Customers are typically billed immediately upon the rendering of services or the delivery of products. Payment terms for customers are between 30 and 180 days. In the instance that payment terms are greater than twelve months, the guidance in ASC 606-10-32-15 will be applied to determine the transaction price.

Method of Adoption

The Company adopted ASC Topic 606 on January 1, 2018, using the full retrospective method. The comparative periods for 2018 and 2017 are reported in accordance with ASC Topic 606. The adoption of ASC Topic 606 primarily affected product revenue and cost of products on our Consolidated Financial Statements. Based on the Company’s assessment of ASC Topic 606 as it relates to the sale of hardware within the Infrastructure Solutions category, the Company considers itself an agent (net) versus as a principal (gross). Based on our assessment of ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), issued by the FASB in March 2016, the Company acts as an agent and as such will record revenue associated with the sale of hardware net of the related cost of products. This conclusion is based on the Company not obtaining control of the inventory since in most cases the Company does not take possession of the inventory, does not have the ability to direct the product to anyone besides the purchasing customer, and does not integrate the hardware with any of our own goods or services. In situations where the Company does take possession the Company assesses if we act as the principal or the agent. While the Company does perform installation services in certain cases, those services involve installing the hardware into the customer’s existing technology. Installation is considered a separate performance obligation as it is capable of being distinct, and is distinct, within the context of the contract. The reduction to "Revenue" and "Cost of services and products" related to recording these contracts on a net basis is $28.6 million for the three months ended March 31, 2017.

In addition to the changes discussed above as result of recognizing hardware revenue on a net basis, additional contract assets related to fulfillment costs and costs of acquisition of $32.3 million were recorded to "Other noncurrent assets" as of December 31, 2017, with an offsetting reduction in "Accumulated deficit." As a result of the entry, total contract assets related to fulfillment and acquisition costs were $32.4 million as of December 31, 2017. Under the new standard, the Company defers all incremental sales incentives and other costs incurred in order to obtain a contract with a customer. The Company amortizes the contract asset related to both fulfillment costs and cost of acquisition over the period of time the services under the contract are expected to be delivered to the customer.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, or a series of distinct goods or services, and is the unit of account defined in ASC Topic 606. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Contract modifications for changes to services provided are routine throughout the term of our contracts. In most instances, contract modifications are for the addition or reduction of services that are distinct, and price changes are based on the stand-alone selling price of the service and, as such, are accounted for on a prospective basis as a new contract.

Goods and services are sold individually, or a contract may include multiple goods or services. For contracts with multiple goods and services, the contract's transaction price is allocated to each performance obligation using the stand-alone selling price of each distinct good or service in the contract.

Certain customers of the Company may receive cash-based rebates based on volume of sales, which are accounted for as variable consideration. Potential rebates are considered at contract inception in our estimate of transaction price based on the forecasted volume of sales. Estimates are reassessed quarterly.

Performance obligations are either satisfied over time as services are performed or at a point in time. Substantially all of our service revenue is recognized over time. For services transferred over time, the Company has elected the practical expedient to recognize revenue based on amounts invoiced to the customer as the Company has concluded that the invoice amount directly corresponds with the value of services provided to the customer. Management considers this a faithful depiction of the transfer of control as services are provided evenly over the month and are substantially the same over the life of the contract. As the Company has elected the practical expedients detailed at ASC 606-10-50-13, revenue for unsatisfied performance obligations that will be billed in future periods has not been disclosed.

Entertainment and Communications

The Company has identified four distinct performance obligations in the Entertainment and Communications segment which include Data, Voice, Video and Other. Data, Voice and Video services are each identified as a series of distinct services as the services in each category are substantially the same and transfer of control to the customer occurs continuously over time. The Entertainment and Communications segment provides services in three main categories that include Fioptics, Enterprise Fiber and Legacy, which may include one or more of the aforementioned performance obligations. Data services include high-speed internet access, digital subscriber lines, ethernet, SONET (Synchronous Optical Network), dedicated internet access, wavelength and digital signal. Voice services include traditional and Fioptics voice lines, switched access, digital trunking and consumer long distance calling. Video services are offered through our fiber network to consumer and enterprise customers based on various standard plans with the opportunity to add premium channels. To receive video services, customers are required to use Cincinnati Bell set top boxes that are billed as part of the monthly recurring service. Set top boxes are not considered a separate performance obligation from video because the equipment is necessary for the service to operate and the customer has no alternative use for the equipment.

Services and products not included in Data, Voice or Video are included in Other revenue and are comprised of wire care, wire time and materials projects and advertising. Transfer of control of these services and products is evaluated on an individual project basis and can occur over time or at a point in time.

The Company uses multiple methods to determine stand-alone selling prices in the Entertainment and Communications segment. For Fioptics Data, Video and Voice, market rate is the primary method used to determine stand-alone selling prices. For Enterprise Fiber Data and Legacy Voice, Data, and Other, stand-alone selling prices are determined based on a list price, discount off of list price, a tariff rate, a margin percentage range, or a minimum margin percentage.

IT Services and Hardware

The Company has identified four distinct performance obligations in the IT Services and Hardware segment. These performance obligations are Communications, Cloud, Consulting, and Infrastructure Solutions. Communications services are monthly services that include data and VoIP services, tailored solutions that include converged IP communications of data, voice, video and mobility applications, enterprise long distance, MPLS (Multi-Protocol Label Switching) and conferencing services. Cloud services includes storage, backup, disaster recovery, SLA-based monitoring and management, cloud computing and cloud consulting. Consulting services provide customers with IT staffing, consulting, emerging technology solutions and installation projects. Infrastructure Solutions includes the sale of hardware and maintenance contracts.

For the sale of hardware, the Company evaluated whether it is the principal or the agent. The Company has concluded it acts as an agent because it does not control the inventory before it is transferred to customers, it does not have the ability to direct the product to anyone besides the purchasing customer, and it does not integrate the hardware with any of our own goods or services. Based on this assessment, the performance obligation is to arrange a sale of hardware between the manufacturer and the customer. In the instance where there is an issue with the hardware, the Company coordinates with the manufacturer to facilitate a return in accordance with the standard manufacturer warranty. Hardware returns are not significant to the Company.

Stand-alone selling prices for the four performance obligations within the IT Services and Hardware segment were determined based on a margin percentage range, minimum margin percentage or standard price list.

Revenue recognized at a point in time includes revenue recognized net of the cost of product for hardware sales within Infrastructure Solutions as well as for certain projects within Communications and Consulting. Revenue generated from these contracts is recognized when the hardware is shipped to the customer, in the case of Infrastructure Solutions when we act as the agent, or when the customer communicates acceptance of services performed, in the case of Communications and Consulting. For contracts with freight on board shipping terms, management has elected to account for shipping and handling as activities to fulfill the promise to transfer the good, and therefore has not evaluated whether shipping and handling activities are promised services to its customers.

Contract Balances 

The Company recognizes an asset for incremental fulfillment costs that include installation costs associated with Voice, Video, and Data product offerings in the Entertainment and Communications segment for which the contract life is longer than one year. These fulfillment costs are amortized ratably over the expected life of the customer, which is representative of the expected period of benefit of the asset capitalized. The expected life of the customer is determined utilizing the average churn rate for each product. The Company calculates average churn based on the historical average customer life. We recognize an asset for incremental fulfillment costs that include installation and provisioning costs for certain Communications services. The asset recognized for Communication services is amortized over the average contract life. Churn rates and average contract life are reviewed on an annual basis. Fulfillment costs are capitalized to “Other noncurrent assets.” The related amortization expense is recorded to “Cost of services and products.”

The Company recognizes an asset for the incremental costs of acquiring a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain sales incentive programs related to Voice, Video, Data and certain Communications and Cloud services meet the requirements to be capitalized. The contract asset established for the costs of acquiring a contract are recorded to “Other noncurrent assets.” Sales incentives are amortized ratably over the period that services are delivered using either an average churn rate or average contract term, both representative of the expected period of benefit of the asset capitalized. Customer churn rates and average contract term assumptions are reviewed on an annual basis. The related amortization expense is recorded to “Selling, general and administrative.”

Management has elected to use the practical expedient detailed in ASC 340-40-25-4 to expense any costs to fulfill a contract and costs to obtain a contract as they are incurred when the amortization period would have been one year or less. This practical expedient has been applied to fulfillment costs that include installation costs associated with wiring projects and certain Cloud services. In addition, this practical expedient has been applied to acquisition costs associated with revenue from certain Communications projects.

The following table presents the activity for the Company’s contract assets:

	Fulfillment Costs									Cost of Acquisition									Total Contract Assets
(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company
Balance as of January 1, 2016	$	15.0		$	1.5		$	16.5		$	12.7		$	1.4		$	14.1		$	27.7		$	2.9		$	30.6
Additions	14.5			1.1			15.6			7.3			0.7			8.0			21.8			1.8			23.6
Amortization	(12.5		)	(1.0		)	(13.5		)	(7.9		)	(0.8		)	(8.7		)	(20.4		)	(1.8		)	(22.2		)
Balance as of December 31, 2016	17.0			1.6			18.6			12.1			1.3			13.4			29.1			2.9			32.0
Additions	13.7			1.6			15.3			6.8			1.1			7.9			20.5			2.7			23.2
Amortization	(13.2		)	(1.2		)	(14.4		)	(7.3		)	(1.1		)	(8.4		)	(20.5		)	(2.3		)	(22.8		)
Balance as of December 31, 2017	17.5			2.0			19.5			11.6			1.3			12.9			29.1			3.3			32.4
Additions	3.1			0.4			3.5			1.6			0.4			2.0			4.7			0.8			5.5
Amortization	(3.3		)	(0.3		)	(3.6		)	(1.7		)	(0.2		)	(1.9		)	(5.0		)	(0.5		)	(5.5		)
Balance as of March 31, 2018	$	17.3		$	2.1		$	19.4		$	11.5		1.5			$	13.0		$	28.8		$	3.6		$	32.4

Disaggregated Revenue

The following table presents revenues disaggregated by product and service lines.

	Three months Ended
	March 31,
(dollars in millions)	2018			2017
Data	$	84.9		$	84.4
Video	39.2			35.9
Voice	47.0			51.7
Other	3.1			3.1
Total Entertainment and Communications	174.2			175.1
Consulting	38.1			16.7
Cloud	22.6			20.9
Communications	40.6			36.5
Infrastructure Solutions	26.3			6.9
Total IT Services and Hardware	127.6			81.0
Intersegment revenue	(6.1		)	(6.5		)
Total revenue	$	295.7		$	249.6

The following table presents revenues disaggregated by contract type.

	Entertainment and Communications				IT Services and Hardware				Intersegment revenue elimination						Total
	Three months ended				Three months ended				Three months ended						Three months ended
(dollars in millions)	March 31,				March 31,				March 31,						March 31,
	2018		2017		2018		2017		2018			2017			2018		2017
Products and Services transferred at a point in time	$	4.8	$	5.1	$	35.3	$	10.7	$	—		$	—		$	40.1	$	15.8
Products and Services transferred over time	164.2		164.6		91.4		69.2		—			—			255.6		233.8
Intersegment revenue	5.2		5.4		0.9		1.1		(6.1		)	(6.5		)	—		—
Total revenue	$	174.2	$	175.1	$	127.6	$	81.0	$	(6.1	)	$	(6.5	)	$	295.7	$	249.6

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Mergers and Acquisitions (Notes)

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

Mergers and Acquisitions

Acquisition of OnX Holdings LLC

On October 2, 2017, the Company acquired 100% of OnX Holdings LLC ("OnX"), a privately held company that provides technology services and solutions to enterprise customers in the United States, Canada and the United Kingdom. The acquisition extends the IT Services and Hardware segment's geographic footprint and accelerates its initiatives in IT cloud migration.

The purchase price for OnX consisted of the following:

(dollars in millions)
Cash consideration	$	241.2
Debt repayment	(77.6		)
Working capital adjustment	2.8
Total purchase price	$	166.4

The cash portion of the purchase price was funded through borrowings under the Credit Agreement (see Note 6). The cash consideration includes $77.6 million related to existing debt that was repaid in conjunction with the close of the acquisition. In addition, a working capital adjustment of $2.8 million was paid during the three months ended March 31, 2018. The Company spent $8.6 million in acquisition expenses related to the OnX acquisition, of which $0.5 million was recorded in the three months ended March 31, 2018. No expenses were recorded in the prior year comparable period related to the OnX acquisition. These expenses are recorded in "Transaction and integration costs" on the Consolidated Statements of Operations.

Purchase Price Allocation and Other Items

The determination of the final purchase price allocation to specific assets acquired and liabilities assumed is incomplete for OnX. The purchase price allocations may change in future periods as customary post-closing reviews are concluded during the measurement period, and the fair value estimates of assets and liabilities and certain tax aspects of the transaction are finalized.

Based on fair value estimates, the purchase price for OnX has been allocated to individual assets acquired and liabilities assumed as follows:

(dollars in millions)
Assets acquired
Cash	$	6.5
Receivables	69.9
Prepaid expenses and other current assets	11.8
Property, plant and equipment	11.6
Goodwill	133.1
Intangible assets	134.0
Other noncurrent assets	3.2
Total assets acquired	370.1
Liabilities assumed
Accounts payable	63.6
Current portion of long-term debt	1.3
Accrued expenses and other current liabilities	18.3
Deferred income tax liabilities	42.3
Long-term debt, less current portion	76.7
Other noncurrent liabilities	1.5
Total liabilities assumed	203.7
Net assets acquired	$	166.4

During the three months ended March 31, 2018, the Company recorded a purchase price allocation adjustment of $0.2 million to "Goodwill" related to the payment of the working capital adjustment. In addition, the Company recorded purchase price allocation adjustments of $0.1 million to "Deferred income tax liabilities" and $0.4 million to "Other noncurrent liabilities" related to the finalization of certain tax aspects of the acquisition. The offset of these adjustments were recorded as an increase to "Goodwill."

The estimated fair value of identifiable intangible assets and their estimated useful lives are as follows:

(dollars in millions)	Fair Value		Useful Lives
Customer relationships	$	108.0	15 years
Trade name	16.0		10 years
Technology	10.0		10 years
Total identifiable intangible assets	$	134.0

Identifiable intangible assets are amortized over their useful lives based on a number of assumptions including the estimated period of economic benefit and utilization. The weighted-average amortization period for identifiable intangible assets acquired in the OnX acquisition is 14 years.

The goodwill for OnX is attributable to increased access to a diversified customer base and acquired workforce in the United States, Canada and the United Kingdom. The amount of goodwill related to OnX that is expected to be deductible for income tax purposes is $2.3 million.

Pro Forma Information (Unaudited)

The following table provides the unaudited pro forma results of operations for the three months ended March 31, 2017 as if OnX had been acquired as of the beginning of fiscal year 2016. Revenue has been retrospectively adjusted for the adoption of ASC 606 to reflect hardware revenue in the Infrastructure Solutions category net of related cost of products. These results include adjustments related to the financing of the acquisition, to increase depreciation and amortization associated with the higher values of property, plant and equipment and 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.

	Three Months Ended
	March 31,
(dollars in millions, except per share amounts)	2017
Revenue	$	298.5
Net income applicable to common shareholders	54.1
Earnings per share:
Basic and diluted earnings per common share	1.28

Other Acquisition Activity

On February 28, 2017, the Company acquired 100% of SunTel Services ("SunTel"), a private company that provides network security, data connectivity, and unified communications solutions to commercial and enterprise customers across multiple sectors throughout Michigan for cash consideration of $10.0 million. Based on final fair value assessment and the finalization of the working capital adjustment, the acquired assets and liabilities assumed consisted primarily of property, plant and equipment of $0.4 million, customer relationship intangible assets of $1.2 million, working capital of $4.1 million and goodwill of $4.6 million. These assets and liabilities are included in the IT Services and Hardware segment.

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Goodwill and Intangible Assets (Notes)

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and Intangible Assets

Goodwill

The changes in the Company's goodwill consisted of the following:

	IT Services and Hardware			Entertainment and Communications		Total Company
(dollars in millions)
Goodwill, balance as of December 31, 2017	$	148.8		$	2.2	$	151.0
Activity during the year
Adjustments to prior year acquisitions	0.7			—		0.7
Currency translations	(1.0		)	—		(1.0		)
Goodwill, balance as of March 31, 2018	$	148.5		$	2.2	$	150.7

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups CLEC revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. As a result of the change, $9.7 million of goodwill related to CBTS Technology Solutions LLC ("CBTS TS") was reclassified from the Entertainment and Communications segment to the IT Services and Hardware segment for the period ending December 31, 2017. For further information related to these business segments see Note 11.

No impairment losses were recognized in goodwill for the three months ended March 31, 2018 and 2017.

Intangible Assets

The Company’s intangible assets consisted of the following:

	March 31, 2018					December 31, 2017
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
(dollars in millions)	Amount (a)		Amortization			Amount (a)		Amortization
Customer relationships	$	115.4	$	(10.8	)	$	116.0	$	(8.9	)
Trade names	15.5		(0.8		)	15.9		(0.4		)
Technology	9.9		(0.5		)	9.9		(0.2		)
Total	$	140.8	$	(12.1	)	$	141.8	$	(9.5	)

(a) Change in gross carrying amounts is due to foreign currency translation.

Amortization expense for intangible assets subject to amortization was $2.6 million for the three months ended March 31, 2018. Amortization expense for the three months ended March 31, 2017 was insignificant. No impairment losses were recognized for the three months ended March 31, 2018 and 2017.

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Debt

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Debt

The Company’s debt consists of the following:

	March 31,			December 31,
(dollars in millions)	2018			2017
Current portion of long-term debt:
Credit Agreement - Tranche B Term Loan due 2024	$	6.0		$	6.0
Capital lease obligations and other debt	12.2			12.4
Current portion of long-term debt	18.2			18.4
Long-term debt, less current portion:
Credit Agreement - Tranche B Term Loan due 2024	594.0			594.0
7 1/4% Senior Notes due 2023	22.3			22.3
7% Senior Notes due 2024	625.0			625.0
8% Senior Notes due 2025	350.0			350.0
Cincinnati Bell Telephone Notes	87.9			87.9
Capital lease obligations and other debt	67.7			70.5
	1,746.9			1,749.7
Net unamortized premium	1.9			1.9
Unamortized note issuance costs	(21.9		)	(22.3		)
Long-term debt, less current portion	1,726.9			1,729.3
Total debt	$	1,745.1		$	1,747.7

Credit Agreement

There were no outstanding borrowings on the Credit Agreement's revolving credit facility, leaving $200.0 million available for borrowings as of March 31, 2018. This revolving credit facility expires in October 2022.

In April 2018, the Company amended its Credit Agreement dated as of October 2, 2017 to reduce the applicable margin on the Tranche B Term Loan due 2024 and revolving credit facility with respect to LIBOR borrowings from the previous 3.75% per annum to 3.25% per annum and, with respect to adjusted base rate borrowings, from the previous 2.75% per annum to 2.25% per annum. The letter of credit fees were reduced from the previous 3.75% per annum to 3.25% per annum.

Accounts Receivable Securitization Facility

As of March 31, 2018, the Company had no borrowings and $6.7 million of letters of credit outstanding under the accounts receivable securitization facility ("Receivables Facility"), leaving $92.5 million remaining availability on the total borrowing capacity of $99.2 million. In the second quarter of 2017, the Company executed an amendment of its Receivables Facility, which replaced, amended and added certain provisions and definitions to increase the credit availability and renew the facility, which is subject to renewal every 364 days, until May 2018. The facility's termination date is in May 2019 and was not changed by this amendment. In the event the Receivables Facility is not renewed, the Company has the ability to refinance any outstanding borrowings with borrowings under the Corporate Credit Agreement. Under the terms of the Receivables Facility, the Company could obtain up to $120.0 million depending on the quantity and quality of accounts receivable. Under this agreement, certain U.S. 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.

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Restructuring and Severance

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

Restructuring and Severance

Liabilities have been established for employee separations and lease abandonment. A summary of activity in the restructuring and severance liability is shown below:

(dollars in millions)	Employee Separation			Lease Abandonment		Total
Balance as of December 31, 2017	$	14.4		$	0.1	$	14.5
Charges	0.3			—		0.3
Utilizations	(7.3		)	—		(7.3		)
Balance as of March 31, 2018	$	7.4		$	0.1	$	7.5

In the first quarter of 2018, the Company recorded $0.3 million in restructuring and severance charges related to employee separations. The Company made severance payments during the three months ended March 31, 2018, for employee separations associated with initiatives to reduce costs within our legacy copper network and headcount reductions in our IT Services and Hardware segment. In the first quarter of 2017, the Company finalized a voluntary severance program for certain bargained employees related to an initiative to reduce field and network costs within our legacy copper network. As a result, a severance charge of $25.6 million was recorded to the Entertainment and Communications segment.

Lease abandonment costs represent future minimum lease obligations, net of expected sublease income, for abandoned facilities. Lease payments on abandoned facilities will continue through 2019.

A summary of restructuring activity by business segment is presented below:

(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Corporate		Total
Balance as of December 31, 2017	$	12.3		$	2.2		$	—	$	14.5
Charges	—			0.3			—		0.3
Utilizations	(5.7		)	(1.6		)	—		(7.3		)
Balance as of March 31, 2018	$	6.6		$	0.9		$	—	$	7.5

At March 31, 2018 and December 31, 2017, $5.6 million and $12.0 million, respectively, of the restructuring liabilities were included in “Other current liabilities.” At March 31, 2018 and December 31, 2017, $1.9 million and $2.5 million, respectively, were included in "Other noncurrent liabilities."

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Financial Instruments and Fair Value Measurements

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

Financial Instruments and Fair Value Measurements

The carrying values of the Company's financial instruments approximate the estimated fair values as of March 31, 2018 and December 31, 2017, except for the Company's long-term debt. The carrying and fair values of the Company's long-term debt are as follows:

	March 31, 2018				December 31, 2017
(dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current portion*	$	1,687.1	$	1,602.8	$	1,687.1	$	1,687.5
*Excludes capital leases and note issuance costs.

The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at March 31, 2018 and December 31, 2017, which is considered Level 2 of the fair value hierarchy.

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Pension and Postretirement Plans

3 Months Ended

Mar. 31, 2018

Retirement Benefits, Description [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

Pension and Postretirement Plans

The Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan. For the three months ended March 31, 2017, approximately 12% of the costs were capitalized as a component of property, plant and equipment related to construction of our copper and fiber networks. In accordance with ASU 2017-07, retrospectively adopted effective January 1, 2018, only the service cost component of net benefit cost is eligible for capitalization on a prospective basis, which was immaterial for the three months ended March 31, 2018.

For the three months ended March 31, 2018 and 2017, pension and postretirement benefit costs (benefits) were as follows:

	Three Months Ended March 31,
	2018			2017			2018			2017
(dollars in millions)	Pension Benefits						Postretirement and Other Benefits
Service cost	$	—		$	—		$	0.1		$	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation	4.2			4.8			0.8			0.8
Expected return on plan assets	(6.2		)	(6.5		)	—			—
Amortization of:
Prior service benefit	—			—			(0.8		)	(1.1		)
Actuarial loss	4.3			4.4			1.0			1.1
Total amortization	4.3			4.4			0.2			—
Pension / postretirement costs	$	2.3		$	2.7		$	1.1		$	0.9

Amortizations of prior service benefit and actuarial loss represent reclassifications from accumulated other comprehensive income.

Based on current assumptions, contributions to qualified and non-qualified pension plans in 2018 are expected to be approximately $4 million and $3 million, respectively. Management expects to make cash payments of approximately $9 million related to its postretirement health plans in 2018.

For the three months ended March 31, 2018, contributions to the pension plans were $1.3 million and contributions to the postretirement plan were $1.6 million.

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Shareowners' Deficit

3 Months Ended

Mar. 31, 2018

Shareowners' Deficit [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Shareowners' Deficit

Accumulated Other Comprehensive Loss

For the three months ended March 31, 2018, the changes in accumulated other comprehensive loss by component were as follows:

(dollars in millions)	Unrecognized Net Periodic Pension and Postretirement Benefit Cost				Foreign Currency Translation Loss			Total
Balance as of December 31, 2017	$	(173.1	)		$	(0.6	)	$	(173.7	)
Reclassifications, net	3.5			(a)	—			3.5
Foreign currency loss	—				(1.8		)	(1.8		)
Balance as of March 31, 2018	$	(169.6	)		$	(2.4	)	$	(172.0	)

(a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax (see Note 9 for additional details). The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations in accordance with ASU 2017-07, which the Company retrospectively adopted effective January 1, 2018.

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Business Segment Information

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Business Segment Information

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups CLEC revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. Accordingly, the Company recast the previously reported 2017 segment disclosures to conform to the new segmentation.

Effective January 1, 2018, we adopted the requirements of ASU 2014-09, Revenue from Contracts with Customers and ASU 2017-07, Improving the Presentation of Net Period Pension Cost and Net Periodic Postretirement Benefit Cost. As a result of adopting these standards, certain prior period amounts reported below have been restated to conform to current period presentation.

The Company’s segments are strategic business units that offer distinct products and services and are aligned with the Company's internal management structure and reporting. The Entertainment and Communications segment provides products and services that can be categorized as Data, Video, Voice or Other. Data products include high-speed internet access, digital subscriber lines, ethernet, SONET, dedicated internet access, wavelength and digital signal. These products are used to transport large amounts of data over private networks. Video services provide our Fioptics customers access to over 400 entertainment channels, over 140 high-definition channels, parental controls, HD DVR, Video On-Demand and access to a Fioptics live TV streaming application. Voice represents traditional voice lines as well as Fioptics voice lines, consumer long distance, switched access and digital trunking. Other services consists of revenue generated from wiring projects for enterprise customers, advertising, directory assistance, maintenance and information services.

The IT Services and Hardware segment provides end-to-end solutions from consulting to implementation to ongoing optimization. These solutions include Cloud, Communications and Consulting services along with the sale, installation and maintenance of major branded Telecom and IT hardware reported as Infrastructure Solutions.

Certain corporate administrative expenses have been allocated to the segments based upon the nature of the expense and the relative size of the segment. Intercompany transactions between segments have been eliminated.

Selected financial data for the Company’s business segment information is as follows:

	Three Months Ended
	March 31,
(dollars in millions)	2018			2017
Revenue
Entertainment and Communications	$	174.2		$	175.1
IT Services and Hardware	127.6			81.0
Intersegment	(6.1		)	(6.5		)
Total revenue	$	295.7		$	249.6
Intersegment revenue
Entertainment and Communications	$	5.2		$	5.4
IT Services and Hardware	0.9			1.1
Total intersegment revenue	$	6.1		$	6.5
Operating income (loss)
Entertainment and Communications	$	28.6		$	3.1
IT Services and Hardware	1.4			0.9
Corporate	(5.8		)	(5.8		)
Total operating income (loss)	$	24.2		$	(1.8	)
Expenditures for long-lived assets*
Entertainment and Communications	$	27.6		$	46.8
IT Services and Hardware	7.9			17.5
Total expenditures for long-lived assets	$	35.5		$	64.3
Depreciation and amortization
Entertainment and Communications	$	40.9		$	39.4
IT Services and Hardware	10.2			6.4
Corporate	0.1			—
Total depreciation and amortization	$	51.2		$	45.8
* Includes cost of acquisitions
	March 31,			December 31,
(dollars in millions)	2018			2017
Assets
Entertainment and Communications	$	1,102.5		$	1,111.4
IT Services and Hardware	494.4			482.7
Corporate and eliminations	589.1			593.5
Total assets	$	2,186.0		$	2,187.6

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Description of Business and Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

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, other comprehensive income, 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.

Effective January 1, 2018, the Company adopted the requirements of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers and ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standards. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation, as a result of adopting the new standards.

On January 1, 2018, the Company changed the composition of its operating segments to align more closely with the Company's broader strategy and how it manages business operations. This strategy groups Competitive Local Exchange Carrier ("CLEC") revenue, which was previously included as part of the Entertainment and Communications segment, as part of the IT Services and Hardware segment in order to consolidate all company-wide VoIP sales. Accordingly, the Company recast the previously reported 2017 segment disclosures. See Note 11 for all required disclosures.

The Condensed Consolidated Balance Sheet as of December 31, 2017 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 2017 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results expected for the full year or any other interim period.

Business Combinations

Business Combinations — In accounting for business combinations, we apply the accounting requirements of ASC 805, “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing estimates of fair value of acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition and transaction costs are expensed as incurred. See Note 4 for required disclosures related to mergers and acquisitions.

Use of Estimates

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.

Investment in CyrusOne

Investment in CyrusOne — In the first quarter of 2017, the Company sold its remaining 2.8 million shares of CyrusOne Inc. common stock for net proceeds totaling $140.7 million that resulted in a realized gain of $117.7 million. As of March 31, 2017, we no longer have an investment in CyrusOne Inc.

Income Taxes

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.

During 2017, the Company re-classed $14.9 million of Alternative Minimum Tax ("AMT") refundable tax credits from "Deferred income taxes, net" to "Receivables" as these credits are expected to be utilized during 2018. Acceleration of the AMT refundable tax credits was the result of the Company's decision to make an election on its 2017 federal income tax return to claim the credits in lieu of claiming bonus depreciation. In addition, new tax legislation enacted in 2017 repealed AMT for corporate tax payers.  The balance of any remaining AMT credits will be refunded over the next 5 years beginning with the return filed in 2019. In the three months ended March 31, 2018, the Company re-classed $0.7 million from "Deferred income taxes, net" to "Receivables" as it expects to receive this portion of the remaining AMT credits in 2019.

Operating Taxes

Operating taxes — The Company elected to record certain operating taxes such as property, sales, use, and gross receipts taxes including telecommunications surcharges as expenses, primarily within cost of services. These taxes are not included in income tax expense because the amounts to be paid are not dependent on our level of income. Liabilities for audit exposures are established based on management's assessment of the probability of payment. The provision for such liabilities is recognized as either property, plant and equipment, operating tax expense, or depreciation expense depending on the nature of the audit exposure. Upon resolution of an audit, any remaining liability not paid is released against the account in which it was originally recorded. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, at the time of adoption of ASC 606, revenue associated with these charges is excluded from the transaction price.  This approach is consistent with how these taxes were previously recorded under ASC Topic 605.

Recently Issued Accounting Standards

Recently Issued Accounting Standards — In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows entities to elect to make a one-time reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act of 2017. The ASU is effective for public entities for annual reporting periods beginning after December 15, 2018, and for interim periods within those fiscal years. Early adoption is permitted. The Company early adopted this guidance effective December 31, 2017, resulting in a provisional reclassification adjustment of $32.2 million to "Accumulated deficit" from "Other comprehensive loss" on the Consolidated Balance Sheets. The amount of the reclassification is calculated on the basis of the difference between the historical and newly enacted tax rates on deferred taxes related to our pension and postretirement benefit plans.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation, which amends the scope of modification accounting for share-based payment arrangements. The ASU is effective for public business entities for annual periods beginning after December 15, 2017. The Company prospectively adopted the standard effective January 1, 2018 and has applied the amended guidance to any awards modified on or after this date.

In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which amends the requirements in ASC 715 related to the income statement presentation of the components of net periodic benefit cost for an entity’s sponsored defined benefit pension and other postretirement plans. The ASU requires entities to disaggregate the current service cost component from the other components of net benefit cost (the “other components”) and present it with other current compensation costs for related employees in the income statement. The other components shall be presented elsewhere in the income statement and outside of income from operations, if such a subtotal is presented, on a retrospective basis as of the date of adoption. In addition, only the service cost component of net benefit cost is eligible for capitalization on a prospective basis. The ASU is effective for public business entities for annual periods beginning after December 15, 2017. The Company retrospectively adopted the standard effective January 1, 2018. The Company re-classed $1.7 million and $1.5 million of other components of net benefit cost from "Cost of Services" and "Selling, general and administrative," respectively, to a new line below Operating income, "Other components of pension and postretirement benefit plans expense," on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2017.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flow - Classification of Certain Cash Receipts and Cash Payments, which amends ASC 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. The FASB issued the ASU with the intent of reducing diversity in practice. The ASU is effective for public entities for annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. The Company adopted this standard effective January 1, 2018. The adoption of this standard did not have a material effect on the Company’s Consolidated Statement of Cash Flows.

In February 2016, the FASB issued ASU 2016-02, Leases, which represents a wholesale change to lease accounting. The standard introduces a lessee model that brings most leases on the balance sheet as well as aligns certain underlying principles of the new lessor model with those in ASC 606. The ASU is effective for public entities for fiscal years beginning after December 15, 2018. As issued, the standard requires lessors and lessees to use a modified retrospective transition method for existing leases. On January 5, 2018, the FASB issued a proposed ASU that would allow entities to elect a practical expedient when adopting the guidance to not restate their comparative periods in transition as well as providing lessors with a practical expedient to not separate lease and nonlease components if certain criteria are met. Once the ASU is final, the Company plans to elect both practical expedients upon adoption. The Company is in the process of evaluating the impact of adoption of this ASU on the Company’s consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard also includes expanded disclosure requirements that result in an entity providing users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The Company adopted the new standard and all subsequent amendments as of January 1, 2018 using the full retrospective method which requires each prior reporting period presented to be adjusted beginning with this issuance of the Company’s 2018 interim financial statements.

The most significant impact of adopting the new standard is the change to the treatment of hardware revenue in the Infrastructure Solutions category from recording hardware revenue as a principal (gross) to recording revenue as an agent (net). Based on our assessment of ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net), issued by the FASB in March 2016, the Company acts as an agent and as such will record hardware sales net of the related cost of products. ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations focusing on a control model rather than a risk and reward model. As a result of adopting ASU 2014-09, revenue and cost of products for the three months ended March 31, 2017 decreased by $28.6 million. Changes in accounting policies related to variable consideration or rebates did not have a material effect on the financial statements. Fulfillment and acquisition costs that are now recorded as an asset and amortized on a monthly basis decreased expense for the three months ended March 31, 2017 by $0.3 million and increased basic earnings per share for the three months ended March 31, 2017 by $0.01. An incremental asset related to fulfillment and acquisition costs of $32.3 million was recorded on the balance sheet as of December 31, 2017, with an offsetting reduction in "Accumulated deficit." As a result of the entry, total contract asset related to fulfillment and acquisition costs was $32.4 million as of December 31, 2017. The impact of these adjustments resulted in a decrease of $7.1 million to "Deferred income tax assets" as of December 31, 2017, with the offset to "Accumulated deficit." See Note 3 for required disclosures as a result of adopting ASC Topic 606.

Other accounting standards that have been issued or proposed by the FASB or other standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption.

Earnings Per 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 stock-based compensation plans or conversion of preferred stock, but only to the extent that they are considered dilutive.

Revenue

The Entertainment and Communications segment provides products and services to both consumer and enterprise customers that can be categorized as either Fioptics, Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Fioptics and Legacy revenue include both consumer and enterprise customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers. Consumer customers have implied month-to-month contracts, while enterprise customers typically have contracts with a duration of one to five years and automatically renew on a month to month basis. Customers are invoiced on a monthly basis for services rendered. Contracts for projects that are included within the Other revenue stream are typically short in duration and less than one year.

The IT Services and Hardware segment provides a full range of Information Technology ("IT") solutions, including Communications, Cloud and Consulting services. IT Services and Hardware customers enter into contracts that have a typical duration of one to five years, with renewal options at the end of the term. Customers are invoiced on a monthly basis for services rendered. The IT Services and Hardware segment also provides enterprise customers with Infrastructure Solutions, which includes the sale of hardware and maintenance contracts. These contracts are typically satisfied in less than twelve months and revenue is recognized at a point in time.

The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, which was adopted on January 1, 2018, using the full retrospective method. See below for further discussion of the adoption, including the impact on our 2017 financial statements.

The Company has elected the practical expedient described in ASC 606-10-32-18 that allows an entity to not adjust the promised amount of consideration for the effects of a significant financing component if the entity expects that the period of time between the transfer of a promised good or service to the customer and when the customer pays will be one year or less. Customers are typically billed immediately upon the rendering of services or the delivery of products. Payment terms for customers are between 30 and 180 days. In the instance that payment terms are greater than twelve months, the guidance in ASC 606-10-32-15 will be applied to determine the transaction price.

Fair Value Measurement

The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at March 31, 2018 and December 31, 2017, which is considered Level 2 of the fair value hierarchy.

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]

The following table shows the computation of basic and diluted EPS:

	Three Months Ended
	March 31,
(in millions, except per share amounts)	2018			2017
Numerator:
Net (loss) income	$	(8.3	)	$	60.6
Preferred stock dividends	2.6			2.6
Net (loss) income applicable to common shareowners - basic and diluted	$	(10.9	)	$	58.0
Denominator:
Weighted average common shares outstanding - basic	42.3			42.1
Stock-based compensation arrangements	—			0.2
Weighted average common shares outstanding - diluted	42.3			42.3
Basic net (loss) earnings per common share	$	(0.26	)	$	1.38
Diluted net (loss) earnings per common share	$	(0.26	)	$	1.37

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Revenue (Tables)

3 Months Ended

Mar. 31, 2018

Disaggregation of Revenue [Line Items]

Contract with Customer, Assets [Table Text Block]

The following table presents the activity for the Company’s contract assets:

	Fulfillment Costs									Cost of Acquisition									Total Contract Assets
(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company			Entertainment and Communications			IT Services and Hardware			Total Company
Balance as of January 1, 2016	$	15.0		$	1.5		$	16.5		$	12.7		$	1.4		$	14.1		$	27.7		$	2.9		$	30.6
Additions	14.5			1.1			15.6			7.3			0.7			8.0			21.8			1.8			23.6
Amortization	(12.5		)	(1.0		)	(13.5		)	(7.9		)	(0.8		)	(8.7		)	(20.4		)	(1.8		)	(22.2		)
Balance as of December 31, 2016	17.0			1.6			18.6			12.1			1.3			13.4			29.1			2.9			32.0
Additions	13.7			1.6			15.3			6.8			1.1			7.9			20.5			2.7			23.2
Amortization	(13.2		)	(1.2		)	(14.4		)	(7.3		)	(1.1		)	(8.4		)	(20.5		)	(2.3		)	(22.8		)
Balance as of December 31, 2017	17.5			2.0			19.5			11.6			1.3			12.9			29.1			3.3			32.4
Additions	3.1			0.4			3.5			1.6			0.4			2.0			4.7			0.8			5.5
Amortization	(3.3		)	(0.3		)	(3.6		)	(1.7		)	(0.2		)	(1.9		)	(5.0		)	(0.5		)	(5.5		)
Balance as of March 31, 2018	$	17.3		$	2.1		$	19.4		$	11.5		1.5			$	13.0		$	28.8		$	3.6		$	32.4

Disaggregation of Revenue [Table Text Block]

by contract type.

	Entertainment and Communications				IT Services and Hardware				Intersegment revenue elimination						Total
	Three months ended				Three months ended				Three months ended						Three months ended
(dollars in millions)	March 31,				March 31,				March 31,						March 31,
	2018		2017		2018		2017		2018			2017			2018		2017
Products and Services transferred at a point in time	$	4.8	$	5.1	$	35.3	$	10.7	$	—		$	—		$	40.1	$	15.8
Products and Services transferred over time	164.2		164.6		91.4		69.2		—			—			255.6		233.8
Intersegment revenue	5.2		5.4		0.9		1.1		(6.1		)	(6.5		)	—		—
Total revenue	$	174.2	$	175.1	$	127.6	$	81.0	$	(6.1	)	$	(6.5	)	$	295.7	$	249.6

The following table presents revenues disaggregated by product and service lines.

	Three months Ended
	March 31,
(dollars in millions)	2018			2017
Data	$	84.9		$	84.4
Video	39.2			35.9
Voice	47.0			51.7
Other	3.1			3.1
Total Entertainment and Communications	174.2			175.1
Consulting	38.1			16.7
Cloud	22.6			20.9
Communications	40.6			36.5
Infrastructure Solutions	26.3			6.9
Total IT Services and Hardware	127.6			81.0
Intersegment revenue	(6.1		)	(6.5		)
Total revenue	$	295.7		$	249.6

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Mergers and Acquisitions (Tables)

3 Months Ended

Mar. 31, 2018

Business Combinations [Abstract]

Business Combination Schedule of Consideration [Table Text Block]

The purchase price for OnX consisted of the following:

(dollars in millions)
Cash consideration	$	241.2
Debt repayment	(77.6		)
Working capital adjustment	2.8
Total purchase price	$	166.4

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Based on fair value estimates, the purchase price for OnX has been allocated to individual assets acquired and liabilities assumed as follows:

(dollars in millions)
Assets acquired
Cash	$	6.5
Receivables	69.9
Prepaid expenses and other current assets	11.8
Property, plant and equipment	11.6
Goodwill	133.1
Intangible assets	134.0
Other noncurrent assets	3.2
Total assets acquired	370.1
Liabilities assumed
Accounts payable	63.6
Current portion of long-term debt	1.3
Accrued expenses and other current liabilities	18.3
Deferred income tax liabilities	42.3
Long-term debt, less current portion	76.7
Other noncurrent liabilities	1.5
Total liabilities assumed	203.7
Net assets acquired	$	166.4

Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The estimated fair value of identifiable intangible assets and their estimated useful lives are as follows:

(dollars in millions)	Fair Value		Useful Lives
Customer relationships	$	108.0	15 years
Trade name	16.0		10 years
Technology	10.0		10 years
Total identifiable intangible assets	$	134.0

Business Acquisition, Pro Forma Information [Table Text Block]

The following table provides the unaudited pro forma results of operations for the three months ended March 31, 2017 as if OnX had been acquired as of the beginning of fiscal year 2016. Revenue has been retrospectively adjusted for the adoption of ASC 606 to reflect hardware revenue in the Infrastructure Solutions category net of related cost of products. These results include adjustments related to the financing of the acquisition, to increase depreciation and amortization associated with the higher values of property, plant and equipment and 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.

	Three Months Ended
	March 31,
(dollars in millions, except per share amounts)	2017
Revenue	$	298.5
Net income applicable to common shareholders	54.1
Earnings per share:
Basic and diluted earnings per common share	1.28

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets [Abstract]

Schedule of Goodwill [Table Text Block]

The changes in the Company's goodwill consisted of the following:

	IT Services and Hardware			Entertainment and Communications		Total Company
(dollars in millions)
Goodwill, balance as of December 31, 2017	$	148.8		$	2.2	$	151.0
Activity during the year
Adjustments to prior year acquisitions	0.7			—		0.7
Currency translations	(1.0		)	—		(1.0		)
Goodwill, balance as of March 31, 2018	$	148.5		$	2.2	$	150.7

Schedule of Finite-Lived Intangible Assets [Table Text Block]

The Company’s intangible assets consisted of the following:

	March 31, 2018					December 31, 2017
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
(dollars in millions)	Amount (a)		Amortization			Amount (a)		Amortization
Customer relationships	$	115.4	$	(10.8	)	$	116.0	$	(8.9	)
Trade names	15.5		(0.8		)	15.9		(0.4		)
Technology	9.9		(0.5		)	9.9		(0.2		)
Total	$	140.8	$	(12.1	)	$	141.8	$	(9.5	)

(a) Change in gross carrying amounts is due to foreign currency translation.

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Debt (Tables)

3 Months Ended

Mar. 31, 2018

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

The Company’s debt consists of the following:

	March 31,			December 31,
(dollars in millions)	2018			2017
Current portion of long-term debt:
Credit Agreement - Tranche B Term Loan due 2024	$	6.0		$	6.0
Capital lease obligations and other debt	12.2			12.4
Current portion of long-term debt	18.2			18.4
Long-term debt, less current portion:
Credit Agreement - Tranche B Term Loan due 2024	594.0			594.0
7 1/4% Senior Notes due 2023	22.3			22.3
7% Senior Notes due 2024	625.0			625.0
8% Senior Notes due 2025	350.0			350.0
Cincinnati Bell Telephone Notes	87.9			87.9
Capital lease obligations and other debt	67.7			70.5
	1,746.9			1,749.7
Net unamortized premium	1.9			1.9
Unamortized note issuance costs	(21.9		)	(22.3		)
Long-term debt, less current portion	1,726.9			1,729.3
Total debt	$	1,745.1		$	1,747.7

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Restructuring and Severance (Tables)

3 Months Ended

Mar. 31, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs [Table Text Block]

A summary of activity in the restructuring and severance liability is shown below:

(dollars in millions)	Employee Separation			Lease Abandonment		Total
Balance as of December 31, 2017	$	14.4		$	0.1	$	14.5
Charges	0.3			—		0.3
Utilizations	(7.3		)	—		(7.3		)
Balance as of March 31, 2018	$	7.4		$	0.1	$	7.5

Schedule of Restructuring and Related Costs by Segment [Table Text Block]

A summary of restructuring activity by business segment is presented below:

(dollars in millions)	Entertainment and Communications			IT Services and Hardware			Corporate		Total
Balance as of December 31, 2017	$	12.3		$	2.2		$	—	$	14.5
Charges	—			0.3			—		0.3
Utilizations	(5.7		)	(1.6		)	—		(7.3		)
Balance as of March 31, 2018	$	6.6		$	0.9		$	—	$	7.5

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Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping [Table Text Block]

The carrying and fair values of the Company's long-term debt are as follows:

	March 31, 2018				December 31, 2017
(dollars in millions)	Carrying Value		Fair Value		Carrying Value		Fair Value
Long-term debt, including current portion*	$	1,687.1	$	1,602.8	$	1,687.1	$	1,687.5
*Excludes capital leases and note issuance costs.

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Pension and Postretirement Plans (Tables)

3 Months Ended

Mar. 31, 2018

Retirement Benefits, Description [Abstract]

Schedule of Net Benefit Costs [Table Text Block]

For the three months ended March 31, 2018 and 2017, pension and postretirement benefit costs (benefits) were as follows:

	Three Months Ended March 31,
	2018			2017			2018			2017
(dollars in millions)	Pension Benefits						Postretirement and Other Benefits
Service cost	$	—		$	—		$	0.1		$	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation	4.2			4.8			0.8			0.8
Expected return on plan assets	(6.2		)	(6.5		)	—			—
Amortization of:
Prior service benefit	—			—			(0.8		)	(1.1		)
Actuarial loss	4.3			4.4			1.0			1.1
Total amortization	4.3			4.4			0.2			—
Pension / postretirement costs	$	2.3		$	2.7		$	1.1		$	0.9

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Shareowners' Deficit (Tables)

3 Months Ended

Mar. 31, 2018

Shareowners' Deficit [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

For the three months ended March 31, 2018, the changes in accumulated other comprehensive loss by component were as follows:

(dollars in millions)	Unrecognized Net Periodic Pension and Postretirement Benefit Cost				Foreign Currency Translation Loss			Total
Balance as of December 31, 2017	$	(173.1	)		$	(0.6	)	$	(173.7	)
Reclassifications, net	3.5			(a)	—			3.5
Foreign currency loss	—				(1.8		)	(1.8		)
Balance as of March 31, 2018	$	(169.6	)		$	(2.4	)	$	(172.0	)

(a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax (see Note 9 for additional details). The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations in accordance with ASU 2017-07, which the Company retrospectively adopted effective January 1, 2018.

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Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Selected financial data for the Company’s business segment information is as follows:

	Three Months Ended
	March 31,
(dollars in millions)	2018			2017
Revenue
Entertainment and Communications	$	174.2		$	175.1
IT Services and Hardware	127.6			81.0
Intersegment	(6.1		)	(6.5		)
Total revenue	$	295.7		$	249.6
Intersegment revenue
Entertainment and Communications	$	5.2		$	5.4
IT Services and Hardware	0.9			1.1
Total intersegment revenue	$	6.1		$	6.5
Operating income (loss)
Entertainment and Communications	$	28.6		$	3.1
IT Services and Hardware	1.4			0.9
Corporate	(5.8		)	(5.8		)
Total operating income (loss)	$	24.2		$	(1.8	)
Expenditures for long-lived assets*
Entertainment and Communications	$	27.6		$	46.8
IT Services and Hardware	7.9			17.5
Total expenditures for long-lived assets	$	35.5		$	64.3
Depreciation and amortization
Entertainment and Communications	$	40.9		$	39.4
IT Services and Hardware	10.2			6.4
Corporate	0.1			—
Total depreciation and amortization	$	51.2		$	45.8
* Includes cost of acquisitions
	March 31,			December 31,
(dollars in millions)	2018			2017
Assets
Entertainment and Communications	$	1,102.5		$	1,111.4
IT Services and Hardware	494.4			482.7
Corporate and eliminations	589.1			593.5
Total assets	$	2,186.0		$	2,187.6

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Description of Business and Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of customers, exceeds 10% of total accounts receivable	1
Accounts Receivable from one customer greater than 10%, percentage	10.00%		10.00%
Percentage of Revenue by Foreign Subsidiaries	6.00%
Available-for-Sale Securities, Shares Sold		2.8
Proceeds from sale of Investment in CyrusOne	$ 0	$ 140,700,000
Gain on sale of Investment in CyrusOne	0	117,700,000
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax	700,000		$ 14,900,000
Reclassification Adjustment from Accumulated Other Comprehensive Income (Loss) to Retained Earnings (Accumulated Deficit), Stranded Other Comprehensive Income Taxes Arising from Tax Reform			32,200,000
Defined Benefit Plan, Cost Reclassified, Cost of Services and Products		1,700,000
Defined Benefit Plan, Cost Reclassified, SG&A costs		1,500,000
Adjustment to revenue and cost of services and products for adoption of ASC 606		28,600,000
Reduction to cost of services and selling, general and administrative expenses		$ 300,000
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share		$ 0.01
Capitalized Contract Cost, Net, Incremental Assets Related to Fulfillment and Acquisition Costs			32,300,000
Capitalized Contract Cost, Net	$ 32,400,000.0		32,400,000.0	$ 32,000,000.0	$ 30,600,000.0
Decrease in deferred tax assets, impact of ASC 606			$ 7,100,000

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Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Numerator:
Net (loss) income	$ (8.3)	$ 60.6
Preferred stock dividends	2.6	2.6
Net (loss) income applicable to common shareowners - basic and diluted	$ (10.9)	$ 58.0
Denominator:
Weighted average common shares outstanding - basic	42.3	42.1
Stock-based compensation arrangements	0.0	0.2
Weighted average common shares outstanding - diluted	42.3	42.3
Basic net (loss) earnings per common share	$ (0.26)	$ 1.38
Diluted net (loss) earnings per common share	$ (0.26)	$ 1.37
Stock Compensation Plan [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		0.2
Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.9	0.9

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Revenue - Revenue Disclosure (Details)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Customer Contract, Lower Range, in Years	1
Customer Contract, Upper Range, in Years	5
Payment terms for customers, lower range	30
Payment term for customers, upper range	180

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Revenue - Method of Adoption (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2016
Revenue from Contract with Customer [Abstract]
Adjustment to revenue and cost of services and products for adoption of ASC 606	$ 28,600,000
Capitalized Contract Cost, Net, Incremental Assets Related to Fulfillment and Acquisition Costs			$ 32,300,000
Capitalized Contract Cost, Net		$ 32,400,000.0	$ 32,400,000.0	$ 32,000,000.0	$ 30,600,000.0

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Revenue - Contract Balances (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Contract Asset [Roll Forward]
Capitalized Contract Cost, Net, Beginning Balance	$ 32,400,000.0	$ 32,000,000.0	$ 30,600,000.0
Capitalized Contract Cost, Additions	5,500,000.0	23,200,000.0	23,600,000.0
Capitalized Contract Cost, Amortization	(5,500,000.0)	(22,800,000.0)	(22,200,000.0)
Capitalized Contract Cost, Net, Ending Balance	32,400,000.0	32,400,000.0	32,000,000.0
Fulfillment Costs [Member]
Contract Asset [Roll Forward]
Capitalized Contract Cost, Net, Beginning Balance	19,500,000.0	18,600,000.0	16,500,000.0
Capitalized Contract Cost, Additions	3,500,000.0	15,300,000.0	15,600,000.0
Capitalized Contract Cost, Amortization	(3,600,000.0)	(14,400,000.0)	(13,500,000.0)
Capitalized Contract Cost, Net, Ending Balance	19,400,000.0	19,500,000.0	18,600,000.0
Cost of Acquisition [Member]
Contract Asset [Roll Forward]
Capitalized Contract Cost, Net, Beginning Balance	12,900,000.0	13,400,000.0	14,100,000.0
Capitalized Contract Cost, Additions	2,000,000.0	7,900,000.0	8,000,000.0
Capitalized Contract Cost, Amortization	(1,900,000.0)	(8,400,000.0)	(8,700,000.0)
Capitalized Contract Cost, Net, Ending Balance	13,000,000.0	12,900,000.0	13,400,000.0
Entertainment and Communications [Member]
Contract Asset [Roll Forward]
Capitalized Contract Cost, Net, Beginning Balance	29,100,000.0	29,100,000.0	27,700,000.0
Capitalized Contract Cost, Additions	4,700,000.0	20,500,000.0	21,800,000.0
Capitalized Contract Cost, Amortization	(5,000,000.0)	(20,500,000.0)	(20,400,000.0)
Capitalized Contract Cost, Net, Ending Balance	28,800,000.0	29,100,000.0	29,100,000.0
Entertainment and Communications [Member] | Fulfillment Costs [Member]
Contract Asset [Roll Forward]
Capitalized Contract Cost, Net, Beginning Balance	17,500,000.0	17,000,000.0	15,000,000.0
Capitalized Contract Cost, Additions	3,100,000.0	13,700,000.0	14,500,000.0
Capitalized Contract Cost, Amortization	(3,300,000.0)	(13,200,000.0)	(12,500,000.0)
Capitalized Contract Cost, Net, Ending Balance	17,300,000.0	17,500,000.0	17,000,000.0
Entertainment and Communications [Member] | Cost of Acquisition [Member]
Contract Asset [Roll Forward]
Capitalized Contract Cost, Net, Beginning Balance	11,600,000.0	12,100,000.0	12,700,000.0
Capitalized Contract Cost, Additions	1,600,000.0	6,800,000.0	7,300,000.0
Capitalized Contract Cost, Amortization	(1,700,000.0)	(7,300,000.0)	(7,900,000.0)
Capitalized Contract Cost, Net, Ending Balance	11,500,000.0	11,600,000.0	12,100,000.0
IT Services and Hardware [Member]
Contract Asset [Roll Forward]
Capitalized Contract Cost, Net, Beginning Balance	3,300,000.0	2,900,000.0	2,900,000.0
Capitalized Contract Cost, Additions	800,000.0	2,700,000.0	1,800,000.0
Capitalized Contract Cost, Amortization	(500,000.0)	(2,300,000.0)	(1,800,000.0)
Capitalized Contract Cost, Net, Ending Balance	3,600,000.0	3,300,000.0	2,900,000.0
IT Services and Hardware [Member] | Fulfillment Costs [Member]
Contract Asset [Roll Forward]
Capitalized Contract Cost, Net, Beginning Balance	2,000,000.0	1,600,000.0	1,500,000.0
Capitalized Contract Cost, Additions	400,000.0	1,600,000.0	1,100,000.0
Capitalized Contract Cost, Amortization	(300,000.0)	(1,200,000.0)	(1,000,000.0)
Capitalized Contract Cost, Net, Ending Balance	2,100,000.0	2,000,000.0	1,600,000.0
IT Services and Hardware [Member] | Cost of Acquisition [Member]
Contract Asset [Roll Forward]
Capitalized Contract Cost, Net, Beginning Balance	1,300,000.0	1,300,000.0	1,400,000.0
Capitalized Contract Cost, Additions	400,000.0	1,100,000.0	700,000.0
Capitalized Contract Cost, Amortization	(200,000.0)	(1,100,000.0)	(800,000.0)
Capitalized Contract Cost, Net, Ending Balance	$ 1,500,000.0	$ 1,300,000.0	$ 1,300,000.0

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Revenue - Disaggregated Revenue (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue, Net	$ 295.7	$ 249.6
Entertainment and Communications [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	174.2	175.1
IT Services and Hardware [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	127.6	81.0
Intersegment Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	(6.1)	(6.5)
Intersegment Eliminations [Member] | Entertainment and Communications [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	5.2	5.4
Intersegment Eliminations [Member] | IT Services and Hardware [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	0.9	1.1
Consolidation, Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	0.0	0.0
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	40.1	15.8
Transferred at Point in Time [Member] | Entertainment and Communications [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	4.8	5.1
Transferred at Point in Time [Member] | IT Services and Hardware [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	35.3	10.7
Transferred at Point in Time [Member] | Intersegment Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	0.0	0.0
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	255.6	233.8
Transferred over Time [Member] | Entertainment and Communications [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	164.2	164.6
Transferred over Time [Member] | IT Services and Hardware [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	91.4	69.2
Transferred over Time [Member] | Intersegment Eliminations [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	0.0	0.0
Voice [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	84.9	84.4
Data [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	47.0	51.7
Video [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	39.2	35.9
Other [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	3.1	3.1
Consulting [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	38.1	16.7
Cloud [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	22.6	20.9
Communications [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	40.6	36.5
Infrastructure Solutions [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	$ 26.3	$ 6.9

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Mergers and Acquisitions - Narratives (Details) - USD ($) $ in Millions			3 Months Ended		6 Months Ended
	Oct. 02, 2017	Feb. 28, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Business Combination, Acquisition Related Costs			$ 2.2	$ 0.6
Goodwill	$ 133.1		150.7		$ 150.7	$ 151.0
OnX Holdings LLC [Member]
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired	100.00%
Business Combination, Debt Repayment	$ 77.6				(77.6)
Business Combination, Working Capital Adjustments			2.8		2.8
Business Combination, Acquisition Related Costs			$ 0.5	$ 0.0	8.6
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	14 years
Business Acquisition, Goodwill, Expected Tax Deductible Amount	$ 2.3
Business Combination, Consideration Transferred					$ 166.4
SunTel Services [Member]
Business Acquisition [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Business Combination, Consideration Transferred		$ 10.0
Property, plant, and equipment		0.4
Intangible assets, other than goodwill		1.2
Working capital adjustment		4.1
Goodwill		$ 4.6

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Mergers and Acquisitions - Schedule of Consideration (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Oct. 02, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018
Business Combination, Consideration Transferred [Abstract]
Cash consideration		$ 2.8	$ 9.2
OnX Holdings LLC [Member]
Business Combination, Consideration Transferred [Abstract]
Cash consideration				$ 241.2
Debt repayment	$ 77.6			(77.6)
Working capital adjustment		$ 2.8		2.8
Total purchase price				$ 166.4

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Mergers and Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Oct. 02, 2017
Business Combinations [Abstract]
Goodwill, Purchase Accounting Adjustments	$ 0.2
Purchase Price Allocation Adjustment, Tax Related	0.1
Purchase Price Allocation Adjustment, Working Capital Related	0.4
Assets acquired
Cash			$ 6.5
Receivables			69.9
Prepaid expenses and other current assets	9.4	$ 7.6	11.8
Property, plant and equipment	1,118.8	1,129.0	11.6
Goodwill	150.7	151.0	133.1
Intangible assets	128.7	132.3	134.0
Other noncurrent assets	52.0	52.7	3.2
Total assets acquired			370.1
Liabilities assumed
Accounts payable			63.6
Current portion of long-term debt			1.3
Accrued expenses and other current liabilities	$ 29.2	$ 37.2	18.3
Deferred income tax liabilities			42.3
Long-term debt, less current portion			76.7
Other noncurrent liabilities			1.5
Total liabilities assumed			203.7
Net assets acquired			$ 166.4

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Mergers and Acquisitions - Finite Lived Intangible Assets Acquired (Details) - OnX Holdings LLC [Member] $ in Millions	Oct. 02, 2017 USD ($)
Business Acquisition [Line Items]
Fair Value	$ 134.0
Customer relationships
Business Acquisition [Line Items]
Fair Value	$ 108.0
Useful Lives	15 years
Trade name
Business Acquisition [Line Items]
Fair Value	$ 16.0
Useful Lives	10 years
Technology
Business Acquisition [Line Items]
Fair Value	$ 10.0
Useful Lives	10 years

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Mergers and Acquisitions - Pro Forma Information (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($) $ / shares
Business Combinations [Abstract]
Revenue	$ 298.5
Net income applicable to common shareholders	$ 54.1
Earnings per share:
Basic and diluted earnings per common share | $ / shares	$ 1.28

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Goodwill and Intangible Assets - Goodwill (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 151,000,000
Goodwill, Adjustments to prior year acquisitions	700,000
Goodwill, Currency translations	(1,000,000)
Goodwill, Ending Balance	150,700,000
Goodwill Reclassification			$ 9,700,000
Goodwill, Impairment Loss	0	$ 0
IT Services and Hardware [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance	148,800,000
Goodwill, Adjustments to prior year acquisitions	700,000
Goodwill, Currency translations	(1,000,000)
Goodwill, Ending Balance	148,500,000
Entertainment and Communications [Member]
Goodwill [Roll Forward]
Goodwill, Beginning Balance	2,200,000
Goodwill, Adjustments to prior year acquisitions	0
Goodwill, Currency translations	0
Goodwill, Ending Balance	$ 2,200,000

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Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets		$ 2.6
Impairment of Intangible Assets, Finite-lived		0.0	$ 0.0
IT Services and Hardware [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	[1]	140.8		$ 141.8
Finite-Lived Intangible Assets, Accumulated Amortization		12.1		9.5
Customer Relationships [Member] | IT Services and Hardware [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	[1]	115.4		116.0
Finite-Lived Intangible Assets, Accumulated Amortization		10.8		8.9
Trade Names [Member] | IT Services and Hardware [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	[1]	15.5		15.9
Finite-Lived Intangible Assets, Accumulated Amortization		0.8		0.4
Technology-Based Intangible Assets [Member] | IT Services and Hardware [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	[1]	9.9		9.9
Finite-Lived Intangible Assets, Accumulated Amortization		$ 0.5		$ 0.2

[1] Change in gross carrying amounts is due to foreign currency translation.

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Debt - Schedule of Debt (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Current portion of long-term debt	$ 18.2	$ 18.4
Long-term debt, less current portion	1,726.9	1,729.3
Net unamortized premium	1.9	1.9
Unamortized note issuance costs	(21.9)	(22.3)
Total debt	1,745.1	1,747.7
Credit Agreement	0.0
Receivables facility amount outstanding	0.0
Tranche B Term Loan due 2024 [Member]
Debt Instrument [Line Items]
Current portion of long-term debt	6.0	6.0
Long-term debt, less current portion	594.0	594.0
Capital lease Obligations and Other Debt [Member]
Debt Instrument [Line Items]
Current portion of long-term debt	12.2	12.4
Long-term debt, less current portion	67.7	70.5
Senior Notes due 2023 [Member]
Debt Instrument [Line Items]
Long-term debt, less current portion	$ 22.3	22.3
Debt Instrument, Interest Rate, Stated Percentage	7.25%
Senior Notes Due 2024 [Member]
Debt Instrument [Line Items]
Long-term debt, less current portion	$ 625.0	625.0
Debt Instrument, Interest Rate, Stated Percentage	7.00%
8% Senior Notes due 2025 [Member]
Debt Instrument [Line Items]
Long-term debt, less current portion	$ 350.0	350.0
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Various Cincinnati Bell Telephone Notes [Member]
Debt Instrument [Line Items]
Long-term debt, less current portion	$ 87.9	87.9
Long-term debt, less current portion, before deducting unamortized discount or premium and before deducting unamortized note issuance costs [Member]
Debt Instrument [Line Items]
Long-term debt, less current portion	$ 1,746.9	$ 1,749.7

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Debt - Credit Facility (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Mar. 31, 2018
Line of Credit Facility [Line Items]
Credit Agreement			$ 0.0
Line of Credit Facility, Remaining Borrowing Capacity			200.0
Receivables facility amount outstanding			0.0
Letters of Credit Outstanding, Amount			6.7
Receivables Facility Remaining Borrowing Capacity			92.5
Receivables Facility Maximum Borrowing Availability			99.2
Accounts Receivable Facility, Renewal Term	364
Receivables facility maximum borrowing capacity			$ 120.0
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			3.75%
Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			2.75%
Subsequent Event [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		3.25%
Subsequent Event [Member] | Base Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		2.25%

XML

Restructuring and Severance (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve, Current	$ 5.6		$ 12.0
Restructuring Reserve, Noncurrent	1.9		$ 2.5
Restructuring Reserve [Roll Forward]
Beginning balance	14.5
Charges	0.3	$ 25.6
Utilizations	(7.3)
Ending balance	7.5
Entertainment and Communications [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	12.3
Charges	0.0	$ 25.6
Utilizations	(5.7)
Ending balance	6.6
IT Services and Hardware [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	2.2
Charges	0.3
Utilizations	(1.6)
Ending balance	0.9
Corporate Segment [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	0.0
Charges	0.0
Utilizations	0.0
Ending balance	0.0
Employee Severance [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	14.4
Charges	0.3
Utilizations	(7.3)
Ending balance	7.4
Lease Abandonment [Member]
Restructuring Reserve [Roll Forward]
Beginning balance	0.1
Charges	0.0
Utilizations	0.0
Ending balance	$ 0.1

XML

Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Millions		Mar. 31, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion	[1]	$ 1,687.1	$ 1,687.1
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion	[1]	$ 1,602.8	$ 1,687.5

[1] Excludes capital leases and note issuance costs.

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Pension and Postretirement Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Capitalized portion of defined benefit contribution percent		12.00%
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Payment for Pension and Other Postretirement Benefits	$ 1.3
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	0.0	$ 0.0
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation	4.2	4.8
Expected return on plan assets	(6.2)	(6.5)
Amortization of:
Prior service benefit	0.0	0.0
Actuarial loss	4.3	4.4
Total amortization	4.3	4.4
Pension / postretirement costs	2.3	2.7
Other Postretirement Benefit Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year	9.0
Payment for Pension and Other Postretirement Benefits	1.6
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract]
Service cost	0.1	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation	0.8	0.8
Expected return on plan assets	0.0	0.0
Amortization of:
Prior service benefit	(0.8)	(1.1)
Actuarial loss	1.0	1.1
Total amortization	0.2	0.0
Pension / postretirement costs	1.1	$ 0.9
Qualified Plan [Member] | Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year	4.0
Nonqualified Plan [Member] | Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year	$ 3.0

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Shareowners' Deficit - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward]
Beginning balance		$ (173.7)
Reclassifications, net		3.5
Foreign currency loss		(1.8)	$ 0.0
Ending balance		(172.0)
Accumulated Defined Benefit Plans Adjustment Attributable to Parent
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward]
Beginning balance		(173.1)
Reclassifications, net	[1]	3.5
Foreign currency loss		0.0
Ending balance		(169.6)
Accumulated Foreign Currency Adjustment Attributable to Parent
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward]
Beginning balance		(0.6)
Reclassifications, net		0.0
Foreign currency loss		(1.8)
Ending balance		$ (2.4)

[1] These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax (see Note 9 for additional details). The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations in accordance with ASU 2017-07, which the Company retrospectively adopted effective January 1, 2018.

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Business Segment Information (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Revenue		$ 295.7	$ 249.6
Operating income (loss)		24.2	(1.8)
Expenditures for long-lived assets		32.7	55.1
Depreciation and amortization		51.2	45.8
Assets		2,186.0		$ 2,187.6
Entertainment and Communications [Member]
Segment Reporting Information [Line Items]
Revenue		174.2	175.1
Operating income (loss)		28.6	3.1
Expenditures for long-lived assets	[1]	27.6	46.8
Depreciation and amortization		40.9	39.4
Assets		1,102.5		1,111.4
IT Services and Hardware [Member]
Segment Reporting Information [Line Items]
Revenue		127.6	81.0
Operating income (loss)		1.4	0.9
Depreciation and amortization		10.2	6.4
Assets		494.4		482.7
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Operating income (loss)		(5.8)	(5.8)
Depreciation and amortization		0.1	0.0
Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Revenue		(6.1)	(6.5)
Intersegment Elimination [Member] | Entertainment and Communications [Member]
Segment Reporting Information [Line Items]
Revenue		5.2	5.4
Intersegment Elimination [Member] | IT Services and Hardware [Member]
Segment Reporting Information [Line Items]
Revenue		0.9	1.1
Intersegment Elimination [Member] | Corporate Segment [Member]
Segment Reporting Information [Line Items]
Assets		589.1		$ 593.5
Sales [Member] | Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Revenue		6.1	6.5
Expenditures for Long-Lived Assets, Including Acquisitions of Businesses [Member]
Segment Reporting Information [Line Items]
Expenditures for long-lived assets	[1]	35.5	64.3
Expenditures for Long-Lived Assets, Including Acquisitions of Businesses [Member] | IT Services and Hardware [Member]
Segment Reporting Information [Line Items]
Expenditures for long-lived assets	[1]	$ 7.9	$ 17.5

[1] Includes cost of acquisitions