Document and Entity Information
Document and Entity Information Document - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Jun. 30, 2018 | |
Entity Information [Line Items] | |||
Entity Registrant Name | CINCINNATI BELL INC. | ||
Entity Central Index Key | 716,133 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 50,337,778 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Public Float | $ 0.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 15.4 | $ 17.8 |
Restricted cash | 0 | 378.7 |
Receivables, less allowances of $13.0 and $10.4 | 342.8 | 239.8 |
Inventory, materials and supplies | 46.5 | 44.3 |
Prepaid expenses | 30.7 | 22.2 |
Other current assets | 10.5 | 7.6 |
Total current assets | 445.9 | 710.4 |
Property, plant and equipment, net | 1,844 | 1,129 |
Goodwill | 157 | 151 |
Intangible assets, net | 168.1 | 132.3 |
Deferred income tax assets | 47.5 | 12.2 |
Other noncurrent assets | 67.7 | 52.7 |
Total assets | 2,730.2 | 2,187.6 |
Current liabilities | ||
Current portion of long-term debt | 20.2 | 18.4 |
Accounts payable | 331.9 | 185.6 |
Unearned revenue and customer deposits | 55.9 | 36.3 |
Accrued taxes | 24.8 | 21.2 |
Accrued interest | 26.8 | 29.9 |
Accrued payroll and benefits | 42.9 | 28.7 |
Other current liabilities | 39.2 | 37.2 |
Total current liabilities | 541.7 | 357.3 |
Long-term debt, less current portion | 1,909.6 | 1,729.3 |
Pension and postretirement benefit obligations | 230.6 | 177.5 |
Pole License Agreement Obligation | 39.1 | 0 |
Deferred income tax liabilities | 11.4 | 11.2 |
Other noncurrent liabilities | 72.8 | 30.2 |
Total liabilities | 2,805.2 | 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 December 31, 2018 and 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; 50,184,114 and 42,197,965 shares issued and outstanding at December 31, 2018 and 2017, respectively | 0.5 | 0.4 |
Additional paid-in capital | 2,680 | 2,565.6 |
Accumulated deficit | (2,709.4) | (2,639.6) |
Accumulated other comprehensive loss | (175.5) | (173.7) |
Total shareowners' deficit | (75) | (117.9) |
Total liabilities and shareowners' deficit | $ 2,730.2 | $ 2,187.6 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for receivables | $ 13 | $ 10.4 |
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 Preference Per Depositary 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 | 50,184,114 | 42,197,965 |
Common Stock, Shares, Outstanding | 50,184,114 | 42,197,965 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | |||
Revenues | $ 1,378.2 | $ 1,065.7 | $ 1,017.6 |
Costs and expenses | |||
Cost of Goods and Services Sold | 698.7 | 531 | 507.3 |
Selling, general and administrative | 313.4 | 235.1 | 216.3 |
Depreciation and amortization | 252 | 193 | 182.2 |
Restructuring and severance related charges | 8.3 | 32.7 | 11.9 |
Transaction and integration cost | 22.5 | 18.5 | 0 |
Other | 0 | 0 | 1.1 |
Total operating costs and expenses | 1,294.9 | 1,010.3 | 918.8 |
Operating income | 83.3 | 55.4 | 98.8 |
Interest expense | 131.5 | 85.2 | 75.7 |
Loss on extinguishment of debt, net | 1.3 | 3.2 | 19 |
Other components of pension and postretirement benefit plans expense | 12.5 | 16.6 | 4.3 |
Gain on sale of CyrusOne investment | 0 | (117.7) | (157) |
Other (income) expense, net | (1.6) | 1.4 | (7.6) |
(Loss) income from continuing operations before income taxes | (60.4) | 66.7 | 164.4 |
Income tax expense | 9.4 | 26.7 | 61.7 |
(Loss) Income from continuing operations | (69.8) | 40 | 102.7 |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0.3 |
Net income (loss) | (69.8) | 40 | 103 |
Preferred stock dividends | 10.4 | 10.4 | 10.4 |
Net (loss) income applicable to common shareowners | $ (80.2) | $ 29.6 | $ 92.6 |
Basic net (loss) earnings per common share | $ (1.73) | $ 0.70 | $ 2.20 |
Diluted net (loss) earnings per common share | $ (1.73) | $ 0.70 | $ 2.20 |
Weighted-average common shares outstanding - basic | 46.3 | 42.2 | 42 |
Weighted-average common shares outstanding - diluted | 46.3 | 42.4 | 42.1 |
Continuing Operations [Member] | |||
Costs and expenses | |||
Depreciation and amortization | $ 252 | $ 193 | $ 182.2 |
Income tax expense | 9.4 | 26.7 | 61.7 |
(Loss) Income from continuing operations | (69.8) | 40 | 102.7 |
Preferred stock dividends | $ 10.4 | $ 10.4 | $ 10.4 |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $ (1.73) | $ 0.70 | $ 2.19 |
Diluted (loss) earnings per common share from continuing operations | $ (1.73) | $ 0.70 | $ 2.19 |
Weighted-average common shares outstanding - basic | 46.3 | 42.2 | 42 |
Weighted-average common shares outstanding - diluted | 46.3 | 42.4 | 42.1 |
Discontinued Operations [Member] | |||
Costs and expenses | |||
Other (income) expense, net | $ (0.3) | ||
Income (loss) from discontinued operations, net of tax | $ 0 | $ 0 | 0.3 |
Preferred stock dividends | $ 0 | $ 0 | $ 0 |
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic and Diluted Share | $ 0 | $ 0 | $ 0.01 |
Diluted (loss) earnings per common share from discontinued operations | $ 0 | $ 0 | $ 0.01 |
Weighted-average common shares outstanding - basic | 0 | 0 | 42 |
Weighted-average common shares outstanding - diluted | 0 | 0 | 42.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net (loss) income | $ (69.8) | $ 40 | $ 103 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gains on Investment in CyrusOne, net of tax of $4.4, $36.9 | 0 | 8.3 | 68.1 |
Reclassification adjustment for gain on sale of Investment in CyrusOne included in net income, net of tax of ($41.3) | 0 | (76.4) | 0 |
Foreign currency translation (loss) gain | (6.5) | 0.2 | (0.1) |
Cash flow hedge: | |||
Unrealized loss on cash flow hedge arising during the period, net of tax of ($1.4) | (4.8) | 0 | 0 |
Reclassification adjustment for net losses included in net income, net of tax of $0.3 | 0.9 | 0 | 0 |
Defined benefit plans: | |||
Net (loss) gain arising from remeasurement during the period, net of tax of ($1.6), $0.8, $3.6 | (5.5) | 2.8 | 6.6 |
Amortization of prior service benefits included in net income, net of tax of ($0.7), ($1.6), ($5.2) | (2.4) | (2.9) | (9.4) |
Amortization of net actuarial loss included in net income, net of tax of $4.7, $7.9, $8.5 | 16.4 | 14.3 | 15.5 |
Reclassification adjustment for pension settlement charges included in net income, net of tax of $0.0, $1.5 | 0.1 | 2.5 | 0 |
Total other comprehensive (loss) income, net of tax | (1.8) | (51.2) | 80.7 |
Total comprehensive (loss) income | $ (71.6) | $ (11.2) | $ 183.7 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income Parenthetical - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized gains on Investment in CyrusOne, tax | $ 0 | $ 4.4 | $ 36.9 |
Reclassification adjustment for gain on sale of Investment in CyrusOne included in net income, tax | 0 | (41.3) | 0 |
Unrealized loss on cash flow hedge arising during the period, tax | (1.4) | 0 | 0 |
Reclassification adjustment for net losses included in net income, tax | 0.3 | 0 | 0 |
Net (loss) gain arising from remeasurement during the period, tax | (1.6) | 0.8 | 3.6 |
Amortization of prior service benefits included in net income, tax | (0.7) | (1.6) | (5.2) |
Amortization of net actuarial loss included in net income, tax | 4.7 | 7.9 | 8.5 |
Reclassification adjustment for pension settlement charges included in net income, tax | $ 0 | $ 1.5 | $ 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareowners' Deficit - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2016 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning Balance | $ (117.9) | $ (101.4) | $ (117.9) | $ (101.4) | $ (298.2) | ||||
Cumulative effect of adopting ASC Topic 606 | $ 19.4 | ||||||||
Net income (loss) | $ (30) | $ (8.3) | $ (11.9) | $ 60.6 | (69.8) | 40 | 103 | ||
Other comprehensive income (loss) | (1.8) | (51.2) | 80.7 | ||||||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform (a) | 0 | ||||||||
Shares issued under employee plans | 0.2 | 0.5 | 3.6 | ||||||
Shares purchased under employee plans and other | (2.1) | (1.3) | (0.2) | ||||||
Stock-based compensation | $ 5.6 | $ 5.9 | $ 5.1 | ||||||
Repurchase and retirement of shares | 0 | 0 | (0.2) | ||||||
Repurchase and retirement of shares | $ (4.8) | ||||||||
Dividends on preferred stock | $ (10.4) | $ (10.4) | (10.4) | ||||||
Stock consideration for acquisition of Hawaiian Telcom | 7.7 | ||||||||
Stock consideration for acquisition of Hawaiian Telcom | $ 121.2 | ||||||||
Ending Balance | $ (75) | $ (117.9) | $ (75) | $ (117.9) | $ (101.4) | ||||
Preferred Stock [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance | 3.1 | 3.1 | 3.1 | 3.1 | 3.1 | ||||
Beginning Balance | $ 129.4 | $ 129.4 | $ 129.4 | $ 129.4 | $ 129.4 | ||||
Balance | 3.1 | 3.1 | 3.1 | 3.1 | 3.1 | ||||
Ending Balance | $ 129.4 | $ 129.4 | $ 129.4 | $ 129.4 | $ 129.4 | ||||
Common Stock [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance | 42.2 | 42.1 | 42.2 | 42.1 | 42 | ||||
Beginning Balance | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | $ 0.4 | ||||
Shares issued under employee plans | 0.3 | 0.1 | 0.3 | ||||||
Shares issued under employee plans | $ 0 | $ 0 | $ 0 | ||||||
Repurchase and retirement of shares | (0.2) | ||||||||
Repurchase and retirement of shares | $ 0 | ||||||||
Stock consideration for acquisition of Hawaiian Telcom | 7.7 | ||||||||
Stock consideration for acquisition of Hawaiian Telcom | $ 0.1 | ||||||||
Balance | 50.2 | 42.2 | 50.2 | 42.2 | 42.1 | ||||
Ending Balance | $ 0.5 | $ 0.4 | $ 0.5 | $ 0.4 | $ 0.4 | ||||
Additional Paid-in Capital [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning Balance | 2,565.6 | 2,570.9 | 2,565.6 | 2,570.9 | 2,577.7 | ||||
Shares issued under employee plans | 0.2 | 0.5 | 3.6 | ||||||
Shares purchased under employee plans and other | (2.1) | (1.3) | (0.3) | ||||||
Stock-based compensation | 5.6 | 5.9 | 5.1 | ||||||
Repurchase and retirement of shares | (4.8) | ||||||||
Dividends on preferred stock | (10.4) | (10.4) | (10.4) | ||||||
Stock consideration for acquisition of Hawaiian Telcom | 121.1 | ||||||||
Ending Balance | 2,680 | 2,565.6 | 2,680 | 2,565.6 | 2,570.9 | ||||
Retained Earnings [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning Balance | (2,639.6) | (2,711.8) | (2,639.6) | (2,711.8) | (2,834.2) | ||||
Cumulative effect of adopting ASC Topic 606 | $ 19.4 | ||||||||
Net income (loss) | (69.8) | 40 | 103 | ||||||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform (a) | [1] | 32.2 | |||||||
Ending Balance | (2,709.4) | (2,639.6) | (2,709.4) | (2,639.6) | (2,711.8) | ||||
AOCI Attributable to Parent | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning Balance | $ (173.7) | $ (90.3) | (173.7) | (90.3) | (171) | ||||
Other comprehensive income (loss) | (1.8) | (51.2) | 80.7 | ||||||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform (a) | [1] | (32.2) | |||||||
Ending Balance | $ (175.5) | $ (173.7) | $ (175.5) | $ (173.7) | $ (90.3) | ||||
Treasury Stock [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Balance | 0 | 0 | 0 | 0 | (0.1) | ||||
Beginning Balance | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.5) | ||||
Shares purchased under employee plans and other | 0.1 | ||||||||
Shares purchased under employee plans and other | $ 0.5 | ||||||||
Balance | 0 | 0 | 0 | 0 | 0 | ||||
Ending Balance | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1] | Per ASU 2018-02, entities can elect to make a one-time reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from newly enacted corporate tax rates under the Tax Cuts and Jobs Act. The Company elected to make the change and recorded the adjustment in 2017. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net (loss) income | $ (69.8) | $ 40 | $ 103 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 252 | 193 | 182.2 |
Loss on extinguishment of debt | 1.3 | 3.2 | 19 |
Gain on sale of CyrusOne investment | 0 | (117.7) | (157) |
Provision for loss on receivables | 8.4 | 6.9 | 9.4 |
Noncash portion of interest expense | 5.4 | 2.8 | 3.3 |
Deferred income taxes | 6.9 | 26.3 | 60 |
Pension and other postretirement payments (in excess of) less than expense | (7.2) | 6.4 | (8.3) |
Stock-based compensation | 5.6 | 5.9 | 5.1 |
Other, net | (3.5) | 2.5 | (3.8) |
Changes in operating assets and liabilities: | |||
(Increase) decrease in receivables | (83.1) | 21.3 | (18.3) |
Decrease (increase) in inventory, materials, supplies, prepaid expenses and other current assets | 2.2 | (16.6) | (6.2) |
Increase (decrease) in accounts payable | 95.1 | 22.4 | (13.1) |
Increase (decrease) in accrued and other current liabilities | 10.5 | 16.2 | (3) |
(Increase) decrease in other noncurrent assets | (0.9) | 1.4 | (2.8) |
(Decrease) increase in other noncurrent liabilities | (8.2) | (10.6) | 3.6 |
Net cash provided by operating activities | 214.7 | 203.4 | 173.1 |
Cash flows from investing activities | |||
Capital expenditures | (220.6) | (210.5) | (286.4) |
Proceeds from sale of Investment in CyrusOne | 0 | 140.7 | 189.7 |
Acquisitions of businesses, net of cash acquired | (216.8) | (167) | 0 |
Dividends received from Investment in CyrusOne (equity method investment) | 0 | 0 | 2.1 |
Other, net | 0 | 0 | (0.9) |
Net cash used in investing activities | (437.4) | (236.8) | (95.5) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 0 | 943 | 635 |
Net increase (decrease) in corporate credit and receivables facilities with initial maturities less than 90 days | 194.6 | (89.5) | 71.9 |
Repayment of debt | (328.7) | (403) | (759.3) |
Debt issuance costs | (11.7) | (19.1) | (11.1) |
Dividends paid on preferred stock | (10.4) | (10.4) | (10.4) |
Common stock repurchase | 0 | 0 | (4.8) |
Other, net | (1.9) | (0.8) | 3.4 |
Net cash (used in) provided by financing activities | (158.1) | 420.2 | (75.3) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.3) | 0 | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (381.1) | 386.8 | 2.3 |
Cash, cash equivalents and restricted cash at beginning of year | 396.5 | 9.7 | 7.4 |
Cash, cash equivalents and restricted cash at end of year | $ 15.4 | $ 396.5 | $ 9.7 |
Description of Business and Acc
Description of Business and Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Accounting Policies [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 Cincinnati, Ohio, Dayton, Ohio and the islands of Hawaii. An economic downturn or natural disaster occurring in these, or a portion of these, limited operating territories 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. As of December 31, 2018, we operate our business through the following segments: Entertainment and Communications and IT Services and Hardware. The Company has approximately 4,300 employees as of December 31, 2018. Approximately 35% of total employees are covered by collective bargaining agreements with the Communications Workers of America (“CWA”) and the International Brotherhood of Electrical Workers ("IBEW)" Local 1357. The effective dates for collective bargaining agreements with the CWA and IBEW range through the second quarter of 2021 and third quarter of 2022, respectively. Basis of Presentation — The 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, comprehensive income, financial position and cash flows for each period presented. Basis of Consolidation — The consolidated financial statements include the consolidated accounts of Cincinnati Bell Inc. and its majority-owned subsidiaries over which it exercises control. Intercompany accounts and transactions have been eliminated in the consolidated financial statements. Discontinued Operations — In the second quarter of 2014, we entered into agreements to sell our wireless spectrum licenses and certain other assets related to our wireless business. The agreement to sell our wireless spectrum licenses closed on September 30, 2014. Effective March 31, 2015, all wireless subscribers were migrated off our network and we ceased providing wireless services and operations. The results of operations attributable to our wireless operations are reported in discontinued operations in the Consolidated Statements of Income. Other income of $0.3 million was recorded in 2016 related to an individual tower sale. Restructuring payments associated with our discontinued operations of $4.4 million were included in operating cash flow in the Consolidated Statements of Cash Flows for 2016. Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. Significant items subject to such estimates and judgments include: the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; reserves recorded for income tax exposures; the valuation of asset retirement obligations; assets and liabilities related to employee benefits; the valuation of deferred costs under Accounting Standards Codification ("ASC") 606; purchase price allocation for acquired businesses; and the valuation of intangible assets and goodwill. In the normal course of business, the Company is also 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 GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. We periodically review our estimates in light of changes in circumstances, facts and experience. The effects of material revisions in estimates are reflected in our financial statements prospectively from the date of the change in estimate. Cash, Cash Equivalents and Restricted Cash — Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Restricted cash at December 31, 2017, represents the proceeds from the issuance of the 8% Senior Notes due 2025 (the “8% Senior Notes”). Proceeds were placed into an escrow account along with Company cash that was sufficient to pay all interest that accrued on the 8% Senior Notes up to, but not including, October 9, 2018. The amounts held in escrow were contractually restricted as to their withdrawal or use and were used to fund the cash portion of the acquisition of Hawaiian Telcom Holdco, Inc. ("Hawaiian Telcom") in July 2018, and to fund semi-annual interest payments associated with this debt. As of December 31, 2017, $378.7 million is classified as "Restricted Cash." As of December 31, 2018, no cash is classified as "Restricted Cash." Receivables — Receivables consist principally of trade receivables from customers and are generally unsecured and due within 21 - 90 days. The Company has receivables with one customer, Verizon Communications Inc., which make up 18% of the outstanding accounts receivable balance at December 31, 2018 . The Company had receivables with one customer, General Electric Company ("GE"), which made up 10% of the outstanding accounts receivable balance at December 31, 2017 . Unbilled receivables arise from services rendered but not yet billed. As of December 31, 2018 and 2017 , unbilled receivables totaled $19.0 million and $14.2 million , respectively. Expected credit losses related to trade receivables are recorded as an allowance for uncollectible accounts in the Consolidated Balance Sheets. The Company establishes the allowances for uncollectible accounts using percentages of aged accounts receivable balances to reflect the historical average of credit losses as well as specific provisions for certain identifiable, potentially uncollectible balances. When internal collection efforts on accounts have been exhausted, the accounts are written off and the associated allowance for uncollectible accounts is reduced. Factoring Arrangements — In the second quarter of 2018, the Company executed an amendment of its Receivables Facility that includes an option for Cincinnati Bell Funding LLC (“CBF”) to sell certain receivables, on a non-recourse basis, directly to PNC Bank. The terms of the factoring arrangement provides for the factoring of certain receivables, which are purchased at the face amount of the receivable discounted at the annual rate of LIBOR plus a bank determined spread on the purchase date. Such sales of accounts receivable are reflected as a reduction of "Receivables, less allowances" in the Consolidated Balance Sheets as they meet the applicable criteria in Financial Accounting Standards Board (“FASB”) ASC 860, "Transfers and Servicing." The fees paid in relation to such sales of accounts receivable were $0.1 million in 2018 and are included in "Selling, general, and administrative" in the Consolidated Statements of Operations. Approximately $20 million of receivables were sold under the terms of the factoring agreement in 2018. See Note 8 for further information related to the Receivables Facility. Inventory, Materials and Supplies — Inventory, materials and supplies consists of network components, various telephony and IT equipment to be sold to customers, maintenance inventories, and other materials and supplies, which are carried at the lower of average cost or market. Property, Plant and Equipment — Property, plant and equipment is stated at original cost and presented net of accumulated depreciation and impairment losses. Property, plant and equipment acquired in conjunction with the acquisition of Hawaiian Telcom was stated at fair value in accordance with ASC 805. Maintenance and repairs are charged to expense as incurred while improvements, which extend an asset's useful life or increase its functionality, are capitalized and depreciated over the asset's remaining life. The majority of the Entertainment and Communications network property, plant and equipment used to generate its voice and data revenue is depreciated using the group method, which develops a depreciation rate annually based on the average useful life of a specific group of assets rather than for each individual asset as would be utilized under the unit method. Provision for depreciation of other property, plant and equipment, except for leasehold improvements, is based on the straight-line method over the estimated economic useful life. Depreciation of leasehold improvements is based on a straight-line method over the lesser of the economic useful life of the asset or the term of the lease, including optional renewal periods if renewal of the lease is reasonably assured. Additions and improvements, including interest and certain labor costs incurred during the construction period, are capitalized. The Company records the fair value of a legal liability for an asset retirement obligation in the period it is incurred. The estimated removal cost is initially capitalized and depreciated over the remaining life of the underlying asset. The associated liability is accreted to its present value each period. Once the obligation is ultimately settled, any difference between the final cost and the recorded liability is recognized as gain or loss on disposition. Goodwill — Goodwill represents the excess of the purchase price consideration over the fair value of net assets acquired and recorded in connection with business acquisitions. Goodwill is generally allocated to reporting units one level below business segments. Goodwill is tested for impairment on an annual basis or when events or changes in circumstances indicate that such assets may be impaired. If the net book value of the reporting unit exceeds its fair value, an impairment loss is recognized. An impairment loss is measured as the excess of the carrying value of goodwill of a reporting unit over its fair value. Long-Lived Assets — Management reviews the carrying value of property, plant and equipment and other long-lived assets, including intangible assets with definite lives, when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the estimated future undiscounted cash flows expected to result from the use of an asset (or group of assets) and its eventual disposition is less than its carrying amount. An impairment loss is measured as the amount by which the asset’s carrying value exceeds its estimated fair value. Long-lived intangible assets are amortized based on the estimated economic value generated by the asset in future years. Investment in CyrusOne — On January 24, 2013, we completed the initial public offering ("IPO") of CyrusOne Inc. ("CyrusOne"), which owns and operates our former Data Center Colocation business. In 2016, we sold 4.1 million shares of CyrusOne's common stock for net proceeds totaling $189.7 million that resulted in a gain of $157.0 million . In the first quarter of 2017, we sold our 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 December 31, 2017, we no longer have an investment in CyrusOne Inc. Dividends declared by CyrusOne in 2016 totaled $6.4 million and were included in "Other (income) expense, net" in the Consolidated Statement of Operations. Equity Method Investments — The Company records equity method investments at carrying value within “Other noncurrent assets” in the Consolidated Balance Sheets. The Company's proportionate share of the investments’ net loss had a minimal impact on our Consolidated Statements of Operations in 2018, 2017 and 2016. Equity method investments are tested for impairment on an annual basis or when events or changes in circumstances indicate that such assets may be impaired. In the third quarter of 2017, the entire carrying value of $4.7 million of an equity method investment was impaired and recorded to "Other (income) expense, net" in the Consolidated Statements of Operations. Cost Method Investments — Certain of our cost method investments do not have readily determinable fair values. The carrying value of these investments was $5.8 million and $3.8 million as of December 31, 2018 and 2017, respectively, and was included in "Other noncurrent assets" in the Consolidated Balance Sheets. Investments are reviewed annually for impairment, or sooner if changes in circumstances indicate the carrying value may not be recoverable. If the carrying value of the investment exceeds its estimated fair value and the decline in value is determined to be other-than-temporary, an impairment loss is recognized for the difference. The Company estimates fair value using external information and discounted cash flow analysis. Leases — Certain property and equipment are leased. At lease inception, the lease terms are assessed to determine if the transaction should be classified as a capital or operating lease. Treasury Shares — The repurchase of common shares is recorded at purchase cost as treasury shares. Our policy is to retire, either formally or constructively, treasury shares that management anticipates will not be reissued. Upon retirement, the purchase cost of the treasury shares that exceeds par value is recorded as a reduction to “Additional paid-in capital” in the Consolidated Balance Sheets. Revenue Recognition — Effective January 1, 2018, the Company adheres to revenue recognition principles described in 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. A good or service is considered to be transferred when the customer obtains control. The Company had no customers whose revenue comprised greater than 10% of total revenue in 2018 and 2017. The Company had sales with one customer, GE, which contributed 11% to total revenue in 2016. Revenue derived from foreign operations is approximately 6% and 3% of consolidated revenue in 2018 and 2017, respectively. Revenue derived from foreign operations was immaterial in 2016. Entertainment and Communications — Revenues from local telephone, special access, internet product and video services, which are billed monthly prior to performance of service, are not recognized upon billing or cash receipt but rather are deferred until the service is provided. Consumer long distance, switched access and other usage based charges are billed monthly in arrears. Entertainment and Communications bills service revenue in regular monthly cycles, which are spread throughout the days of the month. As the last day of each billing cycle rarely coincides with the end of the reporting period for usage-based services such as long distance and switched access, we must estimate service revenues earned but not yet billed. These estimates are based upon historical usage, and we adjust these estimates during the period in which actual usage is determinable, typically in the following reporting period. Pricing of local voice services is generally subject to oversight by both state and federal regulatory commissions. Such regulation also covers services, competition, and other public policy issues. Various regulatory rulings and interpretations could result in increases or decreases to revenue in future periods. For long-term indefeasible right of use, or IRU, contracts for fiber circuit capacity, the Company may receive up-front payments for services to be delivered for a period of up to 25 years. In these situations, the Company defers the revenue and amortizes it on a straight-line basis to earnings over the term of the contract. The Company began recognizing a financing component, in accordance with ASC 606, associated with the up-front payments for services to be delivered under IRU contracts for fiber circuit capacity. See Note 3 for further information. IT Services and Hardware — Revenue is generally recognized as the service is provided. Maintenance on telephony equipment is deferred and recognized ratably over the term of the underlying customer contract, generally one to three years. For hardware sales, revenue is recognized net of the cost of product and is recognized when the hardware is shipped. Installation service revenue is generally recognized when installation is complete. We sell equipment and installation services on both a combined and standalone basis. For the sale of hardware within the Infrastructure Solutions category, we evaluate whether we are the principal (in which case we report revenues on a gross basis) or an agent (in which case we 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 typically acts as an agent and, as such, will record revenue associated with the sale of hardware net of the related cost of products. Advertising Expenses — Costs related to advertising are expensed as incurred. Advertising costs were $14.2 million , $13.5 million , and $9.5 million in 2018, 2017, and 2016, respectively. Legal Expenses — In the normal course of business, the Company is involved in various claims and legal proceedings. Legal costs incurred in connection with loss contingencies are expensed as incurred. Legal claim accruals are recorded once determined to be both probable and estimable. Income, Operating, and Regulatory Taxes Income taxes — The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction as well as various foreign, state and local jurisdictions. The provision for income taxes is based upon income in the consolidated financial statements, rather than amounts reported on the income tax return. The income tax provision consists of an amount for taxes currently payable and an amount for tax consequences deferred to future periods. Deferred investment tax credits are amortized as a reduction of the provision for income taxes over the estimated useful lives of the related property, plant and equipment. Deferred income taxes are provided for temporary differences between financial statement and income tax assets and liabilities. Deferred income taxes are recalculated annually at rates then in effect. Valuation allowances are recorded to reduce deferred tax assets to amounts that are more likely than not to be realized. The ultimate realization of the deferred income tax assets depends upon the ability to generate future taxable income during the periods in which basis differences and other deductions become deductible and prior to the expiration of the net operating loss carryforwards. Previous tax filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires. Operating taxes — Certain operating taxes such as property, sales, use, and gross receipts taxes are reported as expenses in operating income 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. Regulatory taxes — The Company incurs federal and state regulatory taxes on certain revenue producing transactions. We are permitted to recover certain of these taxes by billing the customer; however, collections cannot exceed the amount due to the federal regulatory agency. These federal regulatory taxes are presented in revenue and cost of services on a gross basis because, while the Company is required to pay the tax, it is not required to collect the tax from customers and, in fact, does not collect the tax from customers in certain instances. The amounts recorded as revenue for 2018, 2017, and 2016 were $22.2 million , $16.8 million and $16.3 million , respectively. The amounts reported as expense for 2018, 2017 and 2016 were $23.4 million , $17.7 million , and $17.5 million , respectively. We record all other federal taxes collected from customers on a net basis. Stock-Based Compensation — Compensation cost is recognized for all share-based awards to employees and non-employee directors. We value all share-based awards to employees at fair value on the date of grant and expense this amount over the required service period, generally defined as the applicable vesting period. For awards which contain a performance condition, compensation expense is recognized over the service period, when achievement of the performance condition is deemed probable. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes option-pricing model using assumptions such as volatility, risk-free interest rate, holding period and dividends. The fair value of stock awards is based on the Company’s closing share price on the date of grant. For all share-based payments, the Company accounts for forfeitures as they occur. Actual forfeiture activity reduces the total fair value of the awards to be recognized as compensation expense. When an award is granted to an employee who is retirement eligible, the compensation cost is recognized over the service period up to the date that the employee first becomes eligible to retire. Pension and Postretirement Benefit Plans — The Company maintains qualified and non-qualified defined benefit pension plans, and also provides postretirement healthcare and life insurance benefits for eligible employees. We recognize the overfunded or underfunded status of the defined benefit pension and other postretirement benefit plans as either an asset or liability. Changes in the funded status of these plans are recognized as a component of comprehensive income (loss) in the year they occur. Pension and postretirement healthcare and life insurance benefits earned during the year and interest on the projected benefit obligations are accrued and recognized currently in net periodic benefit cost. Prior service costs and credits are amortized over the average life expectancy of participants or remaining service period, based upon whether plan participants are mostly retirees or active employees. Net gains or losses resulting from differences between actuarial estimates or from changes in actuarial assumptions are recognized as a component of annual net periodic benefit cost. Unrecognized actuarial gains or losses that exceed 10% of the projected benefit obligation are amortized on a straight-line basis over the average remaining service life of active employees for the Cincinnati pension and bargained postretirement plans (approximately 8 - 12 ) and average life expectancy of retirees for the Cincinnati management postretirement plan (approximately 15 years). The accumulated gains or losses associated with the Hawaii plans do not exceed the corridor requiring amortization. Business Combinations — In accounting for business combinations, we apply the accounting requirements of FASB ASC 805, “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. The Company utilizes management estimates and an independent third-party valuation firm to assist in determining the fair values of acquired assets and assumed liabilities. In developing estimates of the fair value of net assets, the Company 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. The Company reports in its consolidated financial statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period. Fair Value Measurements — Fair value of financial and non-financial assets and liabilities is defined as the price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is utilized to measure certain investments on a recurring basis. Fair value measurements are also utilized to determine the initial value of assets and liabilities acquired in a business combination, to perform impairment tests, and for disclosure purposes. Management uses quoted market prices and observable inputs to the maximum extent possible when measuring fair value. In the absence of quoted market prices or observable inputs, fair value is determined using valuation models that incorporate assumptions that a market participant would use in pricing the asset or liability. Fair value measurements are classified within one of three levels, which prioritize the inputs used in the methodologies of measuring fair value for assets and liabilities, as follows: Level 1 — Quoted market prices for identical instruments in an active market; Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and Level 3 — Unobservable inputs that reflect management's determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including our own data. The determination of where an asset or liability falls in the hierarchy requires significant judgment. Foreign Currency Translation and Transactions — The financial position of foreign subsidiaries is translated at the exchange rates in effect at the end of the period, while revenues and expenses are translated at average rates of exchange during the period. Gains or losses from translation of foreign operations where the local currency is the functional currency are included as components of accumulated other comprehensive income. Gains and losses arising from foreign currency transactions are recorded in "Other (income) expense, net" in the period incurred. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Standards In May 2014, the FASB issued Accounting Standards Update ("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. The Company utilized the full retrospective method; therefore, each prior reporting period presented was adjusted beginning with the 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 decreased by $168.2 million and $222.8 million , for 2016 and 2017, respectively. Changes in accounting policies related to variable consideration or rebates did not have a material effect on the Company's financial statements. Fulfillment and acquisition costs that are now recorded as an asset and amortized on a monthly basis decreased expense by $1.5 million and $0.7 million , for 2016 and 2017, respectively. Additionally, as a result of the adoption of ASC 606 an increase to tax expense of $0.5 million was recorded in 2016 and a decrease to tax expense of $4.2 million was recorded in 2017. This change to expense for fulfillment and acquisition costs and tax expense increased both basic and diluted earnings per share for 2016 by $0.02 and increased both basic and diluted earnings per share for 2017 by $0.11 and $0.12 , respectively. An incremental asset related to fulfillment and acquisition costs of $30.1 million was recorded on the balance sheet as of January 1, 2016, with an offsetting reduction in "Accumulated deficit." As a result of the entry, the total contract asset related to fulfillment and acquisition costs was $30.6 million at January 1, 2016. The impact of these adjustments resulted in a decrease of $10.8 million to "Deferred income tax assets" as of January 1, 2016, with the offset to "Accumulated deficit." See Note 3 for additional disclosures as a result of adopting ASC Topic 606. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends the guidance in GAAP on the classification and measurement of financial instruments. The amended guidance requires entities to carry all investments in equity securities at fair value and changes in fair value shall be recognized through net income unless the entity has elected the practicability exception to fair value measurement. This standard is effective for the fiscal year ending December 31, 2018 and requires a cumulative-effect adjustment to beginning retained earnings on this date. The Company adopted the standard effective January 1, 2018. The Company does not hold any equity securities as of December 31, 2018. 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. ASU 2016-02 was amended in January 2018 by the provisions of ASU 2018-01, “Land Easement Practical Expedient for Transition to Topic 842,” and in July 2018 by the provisions of ASU 2018-10, “Codification Improvements to Topic 842, Leases,” and ASU 2018-11, “Targeted Improvements,” and in November 2018 by the provisions of ASU 2018-20, "Narrow-Scope Improvements for Lessors." The Company adopted the standard and all subsequent amendments on January 1, 2019. The Company has completed procedures to identify the existing lease population to which the new standard is applicable. The Company has implemented changes to accounting policies, processes, systems, and internal controls. The Company procured a third-party lease accounting software solution to facilitate the ongoing accounting and financial reporting requirements of the ASU. The new standard will result in the recognition of operating lease right-of-use assets of approximately $35 million to $45 million on the Company’s consolidated balance sheets. The new standard allows for certain practical expedients relating to the separation of lease and non-lease components, which is required under Topic 842. The Company's operating leases for certain network services that include Customer Premise Equipment, such as handsets and set-top boxes, have lease and non-lease components which the Company has elected to account for as one single non-lease component in accordance with ASC 606. The Company also elected the practical expedient allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The cumulative effect of adopting the standard is immaterial. The adoption of this standard, as amended, will not result in the restatement of comparative periods presented. 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 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 $1.3 million and $6.6 million of other components of net benefit cost from "Cost of services and products" to a new line below Operating income, "Other components of pension and postretirement benefit plans expense," on the Consolidated Statements of Operations for 2016 and 2017, respectively. The Company re-classed $3.0 million and $6.0 million of other components of net benefit cost from "Selling, general and administrative," to "Other components of pension and postretirement benefit plans expense," on the Consolidated Statements of Operations for 2016 and 2017, respectively. The Company re-classed $4.0 million of other components of net benefit cost from "Other" related to a settlement charge to "Other components of pension and postretirement benefit plans expense," on the Consolidated Statements of Operations for 2017. 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 will apply the amended guidance to any awards modified on or after this date. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which improves the hedge accounting model to facilitate financial reporting that more closely reflects a company’s risk management activities. The FASB’s new guidance will make more financial and nonfinancial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. This update is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted in any interim period after issuance of the update. The Company early-adopted the guidance effective April 1, 2018. In February 2018, the 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 reclassification adjustment of $32.2 million to "Accumulated deficit" from "Accumulated 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 August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software, which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the requirements in ASU 350-40 for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments in this ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Early adoption is permitted in any interim period after issuance of the update. The Company early adopted this standard prospectively effective January 1, 2019. Other accounting standards that have been issued or proposed by the FASB or other standards-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. |
Revenue (Notes)
Revenue (Notes) | 12 Months Ended |
Dec. 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 in Cincinnati or Consumer/SMB Fiber in Hawaii (collectively, "Consumer/SMB Fiber"), Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Consumer/SMB Fiber 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. Enterprise Fiber also includes revenue associated with the Southeast Asia to United States ("SEA-US") trans Pacific submarine cable system, which was acquired in conjunction with the acquisition of Hawaiian Telcom in the third quarter of 2018, and connects Indonesia, the Philippines, Guam, Hawaii and the mainland United States. Consumer customers have implied month-to-month contracts, while enterprise customers, with the exception of contracts associated with the SEA-US, 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. Contracts associated with the SEA-US typically range from 15 to 25 years and payment is prepaid. 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 varied 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 and 2016 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 for such good or service 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. Subsequent to the acquisition of Hawaiian Telcom, the Company began recognizing a financing component associated with the up-front payments for services to be delivered under indefeasible right of use ("IRU") contracts for fiber circuit capacity. The IRU contracts are associated with the SEA-US. The IRU contracts typically have a duration ranging from 15 to 25 years. Method of Adoption The Company adopted ASC Topic 606 on January 1, 2018, using the full retrospective method. The comparative periods for 2018, 2017 and 2016 are recast and 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 in such circumstances. 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 $222.8 million and $168.2 million for the years ended 2017 and 2016, respectively. In addition to the changes discussed above, additional contract assets related to fulfillment costs and costs of acquisition of $30.1 million were recorded to "Other noncurrent assets" as of January 1, 2016, with an offsetting reduction in "Accumulated deficit." As a result of the entry, total contract assets related to fulfillment and acquisition costs were $30.6 million as of January 1, 2016. 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 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 projected volume of sales. Estimates are reassessed quarterly. Performance obligations are satisfied either 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 these unsatisfied performance obligations that will be billed in future periods has not been disclosed. As of December 31, 2018, our estimated revenue, including a financing component, expected to be recognized in the future related to performance obligations associated with customer contracts that are unsatisfied (or partially unsatisfied) is $39.7 million . Approximately 80% of this revenue is related to IRU contracts associated with the SEA-US (see Note 9). Certain IRU contracts extend for periods of up to 30 years and are invoiced at the beginning of the contract term. The revenue from such contracts is recognized over time as services are provided over the contract term. The expected revenue to be recognized for existing IRU contracts is as follows: (dollars in millions) 2019 $ 2.6 2020 2.6 2021 2.5 2022 2.6 2023 2.5 Thereafter 26.9 Entertainment and Communications The Company has identified four distinct performance obligations in the Entertainment and Communications segment, namely Data, Voice, Video and Other. Data, Voice and Video services are a series of distinct services because service is delivered to the customer continuously and in a substantially similar manner for each period of the agreement. Services provided by the Entertainment and Communications segment can be categorized into three main categories that include Consumer/SMB Fiber, Enterprise Fiber and Legacy, each of which may include one or more of the aforementioned performance obligations. Data services include high-speed internet access, digital subscriber lines, ethernet, TDM, SONET (Synchronous Optical Network), Small Cell, dedicated internet access, wavelength, digital signal and IRU revenue. Voice services include traditional and fiber 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 the Company's 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 Data, Video and Voice products in Consumer/SMB Fiber, market rate is the primary method used to determine stand-alone selling prices. For Data performance obligations under the Enterprise Fiber category, and Voice, Data and Other performance obligations under the Legacy category, 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 UCaaS, SD-WAN, NaaS, Contact Center, enterprise long distance, MPLS (Multi-Protocol Label Switching) and Networking Solutions. Cloud services include storage, backup, SLA-based monitoring and management, virtual data centers and cloud consulting. Consulting services provide customers with IT staffing, consulting, and application services. Infrastructure Solutions includes the sale of hardware, software 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 its 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. Within the IT Services and Hardware segment, stand-alone selling prices for the four performance obligations were determined based on either a margin percentage range, minimum margin percentage or standard price list. For hardware sales, revenue is recognized net of the cost of product and is recognized when the hardware is shipped. For certain projects within Communications and Consulting, revenue is recognized when the customer communicates acceptance of the services performed. 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 incremental fulfillment costs as an asset when installation expenses are incurred as part of performing the agreement for Voice, Video and Data product offerings in the Entertainment and Communications segment when 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. The Company calculates average churn based on the historical average customer life. We also recognize an asset for incremental fulfillment costs for certain Communications services in the IT Services and Hardware segment that require us to incur installation and provisioning expenses. 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 be 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 9.9 1.9 11.8 7.9 1.7 9.6 17.8 3.6 21.4 Amortization (12.9 ) (1.4 ) (14.3 ) (6.5 ) (1.0 ) (7.5 ) (19.4 ) (2.4 ) (21.8 ) Balance as of December 31, 2018 14.5 2.5 17.0 13.0 2.0 15.0 27.5 4.5 32.0 The Company recognizes a liability for cash received upfront for IRU contracts. At December 31, 2018, $1.4 million of contract liabilities were included in "Other current liabilities" and $28.0 million of contract liabilities were included in "Other noncurrent liabilities." Disaggregated Revenue The following table presents revenues disaggregated by product and service lines. Year ended December 31, (dollars in millions) 2018 2017 2016 Data $ 402.6 $ 344.5 $ 333.0 Video 183.3 148.9 125.6 Voice 244.9 199.0 217.9 Other 22.6 13.7 14.8 Total Entertainment and Communications 853.4 706.1 691.3 Consulting 165.3 89.3 86.7 Cloud 98.0 81.0 85.5 Communications 178.5 160.6 144.3 Infrastructure Solutions 109.1 54.2 36.2 Total IT Services and Hardware 550.9 385.1 352.7 Intersegment revenue (26.1 ) (25.5 ) (26.4 ) Total revenue $ 1,378.2 $ 1,065.7 $ 1,017.6 The following table presents revenues disaggregated by contract type. Year ended December 31, (dollars in millions) 2018 2017 2016 Entertainment and Communications Products and services transferred at a point in time $ 25.3 $ 20.6 $ 23.2 Products and services transferred over time 805.8 664.3 647.1 Intersegment revenue 22.3 21.2 21.0 Total Entertainment and Communications 853.4 706.1 691.3 IT Services and Hardware Products and services transferred at a point in time 142.9 $ 80.8 $ 54.9 Products and services transferred over time 404.2 300.0 292.4 Intersegment revenue 3.8 4.3 5.4 Total IT Services and Hardware 550.9 385.1 352.7 Total Revenue Total products and services transferred at a point in time 168.2 101.4 78.1 Total products and services transferred over time 1,210.0 964.3 939.5 Total revenue $ 1,378.2 $ 1,065.7 $ 1,017.6 |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures | Mergers and Acquisitions Acquisition of Hawaiian Telcom Holdco, Inc. On July 2, 2018, the Company acquired Hawaiian Telcom Holdco, Inc. ("Hawaiian Telcom") for cash consideration of $218.3 million , stock consideration of $121.2 million and debt repayments, including accrued interest, of $318.2 million . Hawaiian Telcom is the ILEC for the State of Hawaii and the largest full service provider of communication services and products in the state. With the acquisition, the Company gains access to both Honolulu, a well-developed, fiber-rich city, as well as the growing neighbor islands. The companies' combined fiber networks are nearly 16,500 fiber route miles. The purchase price for Hawaiian Telcom consisted of the following: (dollars in millions) Cash consideration plus debt assumed $ 536.5 Cincinnati Bell Inc. stock issued 121.2 Debt repayment (318.2 ) Total purchase price $ 339.5 In order to fund the acquisition, the Company utilized proceeds of $350.0 million from the 8% Senior Notes due 2025 ("8% Notes"), $16.5 million of the cash that was previously restricted to fund interest payments on the 8% Notes, drew $35.0 million on the Revolving credit facility and $154.0 million on the accounts receivable securitization facility (see Note 8). In conjunction with the acquisition, the Company issued 7.7 million Common Shares at a price of $15.70 per share as stock consideration. The Company recorded a total of $27.2 million in acquisition expenses related to the acquisition of Hawaiian Telcom, of which $19.2 million and $8.0 million were recorded in 2018 and 2017, respectively. These expenses are recorded in "Transaction and integration costs" on the Consolidated Statements of Operations. 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 U.S., Canada and the U.K. 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 8). The cash consideration includes $77.6 million related to existing debt, including accrued interest, that was repaid in conjunction with the close of the acquisition. In addition, a working capital adjustment of $2.8 million was paid in the first quarter of 2018. The Company recorded $8.6 million in acquisition expenses related to the OnX acquisition, of which $0.5 million and $8.1 million were recorded in 2018 and 2017, respectively. 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 are preliminary for the Hawaiian Telcom transaction. The purchase price allocations, based on fair value estimates, 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. The purchase price for OnX and Hawaiian Telcom have been currently allocated to individual assets acquired and liabilities assumed as follows: (dollars in millions) Hawaiian Telcom OnX Assets acquired Cash $ 4.3 $ 6.5 Receivables 25.5 69.9 Inventory, materials and supplies 6.9 9.0 Prepaid expenses and other current assets 5.9 2.8 Property, plant and equipment 701.5 11.6 Goodwill 8.8 133.1 Intangible assets 52.0 134.0 Deferred income tax asset 43.6 1.4 Other noncurrent assets 2.1 1.8 Total assets acquired 850.6 370.1 Liabilities assumed Accounts payable 58.0 63.6 Current portion of long-term debt 10.2 1.3 Unearned revenue and customer deposits 13.5 — Accrued expenses and other current liabilities 21.7 18.3 Deferred income tax liabilities — 42.3 Long-term debt, less current portion 304.5 76.7 Pension and postretirement benefit obligations 68.9 — Other noncurrent liabilities 34.3 1.5 Total liabilities assumed 511.1 203.7 Net assets acquired $ 339.5 $ 166.4 During the fourth quarter of 2018, the Company recorded immaterial measurement period adjustments for Hawaiian Telcom. The offset of these adjustments were recorded as an increase to "Goodwill." During the first quarter of 2018, the Company recorded immaterial measurement period adjustments for OnX. The offset of these adjustments were recorded as an increase to "Goodwill." The revenues and net income of OnX included in the Consolidated Statements of Operations from the acquisition date through December 31, 2017 were $53.0 million and $11.5 million , respectively. The revenues and net income of Hawaiian Telcom included in the Consolidated Statements of Operations from the acquisition date through December 31, 2018 were $175.0 million and $0.7 million , respectively. The estimated fair value of identifiable intangible assets and their estimated useful lives are as follows: Hawaiian Telcom OnX (dollars in millions) Fair Value Useful Lives Fair Value Useful Lives Customer relationships $ 26.0 15 years $ 108.0 15 years Trade name 26.0 15 years 16.0 10 years Technology — — 10.0 10 years Total identifiable intangible assets $ 52.0 $ 134.0 The goodwill for OnX is attributable to increased access to a diversified customer base and acquired workforce in the U.S., Canada and the U.K. The amount of goodwill related to OnX that is expected to be deductible for income tax purposes is $2.3 million . The goodwill for Hawaiian Telcom is attributable to the acquired workforce in Honolulu and the neighbor islands, deep fiber infrastructures that include direct access to the SEA-US cable linking the U.S. with Asia and increased access to a diversified customer base. Pro Forma Information (Unaudited) The following table provides the unaudited pro forma results of operations for the year ended 2018, 2017 and 2016 as if the acquisitions of OnX and Hawaiian Telcom had taken place as of the beginning of fiscal year 2016 and 2017, respectively. These proforma results include adjustments related to the financing of the acquisitions, an increase to depreciation and amortization associated with the higher values of property, plant and equipment and intangible assets, an increase to interest expense for the additional debt incurred to complete the acquisitions, and reflects the related income tax effect and change in tax status. 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. ASC 606 was not applied to the year ended December 31, 2017 for Hawaiian Telcom results because they utilized the modified retrospective method of adoption. Reported amounts for 2017 could be materially different if Hawaiian Telcom had adopted the standard using the full retrospective method of adoption. The pro forma information does not necessarily reflect the actual results of operations had the acquisitions 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 acquisitions or (ii) transaction or integration costs relating to the acquisitions. Year Ended December 31, (dollars in millions, except per share amounts) 2018 2017 2016 Revenue $ 1,556.5 $ 1,588.5 $ 1,767.5 Net (loss) income applicable to common shareholders (77.7 ) (84.6 ) 91.7 Earnings per share: Basic and diluted (loss) earnings per common share (1.55 ) (1.70 ) 2.18 Other Acquisition Activity On February 28, 2017, the Company acquired 100% of SunTel Services LLC ("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. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Common 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: Year Ended December 31, 2018 (in millions, except per share amounts) Continuing Operations Discontinued Operations Total Numerator: Net loss $ (69.8 ) $ — $ (69.8 ) Preferred stock dividends 10.4 — 10.4 Net loss applicable to common shareowners - basic and diluted $ (80.2 ) $ — $ (80.2 ) Denominator: Weighted-average common shares outstanding - basic 46.3 — 46.3 Stock-based compensation arrangements — — — Weighted-average common shares outstanding - diluted 46.3 — 46.3 Basic and diluted loss per common share $ (1.73 ) $ — $ (1.73 ) Year Ended December 31, 2017 (in millions, except per share amounts) Continuing Operations Discontinued Operations Total Numerator: Net income $ 40.0 $ — $ 40.0 Preferred stock dividends 10.4 — 10.4 Net income applicable to common shareowners - basic and diluted $ 29.6 $ — $ 29.6 Denominator: Weighted-average common shares outstanding - basic 42.2 — 42.2 Stock-based compensation arrangements 0.2 — 0.2 Weighted-average common shares outstanding - diluted 42.4 — 42.4 Basic and diluted earnings per common share $ 0.70 $ — $ 0.70 Year Ended December 31, 2016 (in millions, except per share amounts) Continuing Operations Discontinued Operations Total Numerator: Net income $ 102.7 $ 0.3 $ 103.0 Preferred stock dividends 10.4 — 10.4 Net income applicable to common shareowners - basic and diluted $ 92.3 $ 0.3 $ 92.6 Denominator: Weighted-average common shares outstanding - basic 42.0 42.0 42.0 Stock-based compensation arrangements 0.1 0.1 0.1 Weighted-average common shares outstanding - diluted 42.1 42.1 42.1 Basic and diluted earnings per common share $ 2.19 $ 0.01 $ 2.20 In conjunction with the acquisition of Hawaiian Telcom in the third quarter of 2018, the Company issued 7.7 million Common Shares as a part of the acquisition consideration. In addition, the Company granted 0.1 million time-based restricted stock units to certain Hawaiian Telcom employees under the Hawaiian Telcom 2010 Equity Incentive Plan. For the year ended December 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 years ended December 31, 2017 and 2016, awards under the Company’s stock-based compensation plans for common shares of 0.2 million , 0.4 million , respectively, were excluded from the computation of diluted EPS as their 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. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant and Equipment Property, plant and equipment is comprised of the following: December 31, Depreciable Lives (Years) (dollars in millions) 2018 2017 Land and rights-of-way $ 117.2 $ 4.3 20 - Indefinite Buildings and leasehold improvements 305.2 179.1 5 - 40 Network equipment 3,913.3 3,339.4 2 - 50 Office software, furniture, fixtures and vehicles 216.3 162.5 2 - 14 Construction in process 47.1 14.7 n/a Gross value 4,599.1 3,700.0 Accumulated depreciation (2,755.1 ) (2,571.0 ) Property, plant and equipment, net $ 1,844.0 $ 1,129.0 Depreciation expense on property, plant and equipment totaled $239.6 million in 2018 , $190.4 million in 2017 and $182.0 million in 2016. The portion of depreciation expense associated with cost of providing services was 85% , 84% and 85% in 2018, 2017 and 2016, respectively. There are numerous assets included within network equipment resulting in a range of depreciable lives between 2 and 50 years, the majority of which fall within the range of 7 to 25 years. In 2016, we reduced the estimated useful life of certain set-top boxes, as well as the related software, as we upgraded to new technology. No asset impairment losses were recognized in 2018, 2017 or 2016 on property, plant and equipment. As of December 31, 2018 and 2017 , the Company had $114.9 million and $112.0 million , respectively, of assets accounted for as capital leases including network equipment, office software, furniture, fixtures, vehicles, buildings and building equipment. Depreciation of capital lease assets is included in "Depreciation and amortization" in the Consolidated Statements of Operations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 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 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (dollars in millions) Goodwill, beginning balance $ 148.8 $ 12.1 $ 2.2 $ 2.2 $ 151.0 $ 14.3 Activity during the year Adjustments to prior year acquisitions 0.7 — — — 0.7 — Acquisitions — 137.0 8.8 — 8.8 137.0 Currency translations (3.5 ) (0.3 ) — — (3.5 ) (0.3 ) Goodwill, ending balance $ 146.0 $ 148.8 $ 11.0 $ 2.2 $ 157.0 $ 151.0 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 16. During 2018, goodwill in the Entertainment and Communications segment increased by $8.8 million due to the acquisition of Hawaiian Telcom. For further information related to the acquisition see Note 4. During 2017, goodwill increased by $4.6 million and $132.4 million for the IT Services and Hardware segment related to the acquisitions of SunTel and OnX, respectively. For further information related to these acquisitions see Note 4. No impairment losses were recognized in goodwill for the years ended December 31, 2018, 2017 and 2016. Intangible Assets The Company’s intangible assets consisted of the following: December 31, 2018 December 31, 2017 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount (a) Amortization Amount Amount (a) Amortization Amount Customer relationships $ 139.4 $ (17.8 ) $ 121.6 $ 116.0 $ (8.9 ) $ 107.1 Trade names 40.7 (2.8 ) 37.9 15.9 (0.4 ) 15.5 Technology 9.9 (1.3 ) 8.6 9.9 (0.2 ) 9.7 Total $ 190.0 $ (21.9 ) $ 168.1 $ 141.8 $ (9.5 ) $ 132.3 (a) Change in gross carrying amounts is due to foreign currency translation on intangible assets related to OnX and intangible assets acquired in conjunction with the acquisition of Hawaiian Telcom. See Note 4 for further information. The intangible assets were established in connection with completed acquisitions. They 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 intangible assets acquired in 2018 and 2017 is 15 years and 14 years, respectively. The amortization expense for intangible assets was $12.4 million , $2.5 million and $0.2 million in 2018, 2017 and 2016 respectively. No impairment losses were recognized on intangible assets for the years ended December 31, 2018, 2017 and 2016. The estimated useful lives for each intangible asset class are as follows: Customer relationships 8 to 15 years Trade names 10 to 15 years Technology 10 years The annual estimated amortization expense for future years is as follows: (dollars in millions) 2019 $ 14.6 2020 14.3 2021 14.1 2022 13.8 2023 13.5 Thereafter 97.8 Total $ 168.1 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instruments [Abstract] | |
Debt and Other Financing Arrangements [Text Block] | Debt and Other Financing Arrangements The Company’s debt consists of the following: 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 Other financing arrangements 0.8 — Capital lease obligations 13.4 12.4 Current portion of long-term debt 20.2 18.4 Long-term debt, less current portion: Receivables Facility 176.6 — Credit Agreement - Revolving Credit Facility 18.0 — Credit Agreement - Tranche B Term Loan due 2024 592.5 594.0 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 Various Cincinnati Bell Telephone notes 87.9 87.9 Other financing arrangements 2.3 — Capital lease obligations 60.5 70.5 1,935.1 1,749.7 Net unamortized premium 1.7 1.9 Unamortized note issuance costs (27.2 ) (22.3 ) Long-term debt, less current portion 1,909.6 1,729.3 Total debt $ 1,929.8 $ 1,747.7 Credit Agreement (effective 2017) I n the fourth quarter of 2017, the Company entered into a new Credit Agreement (the "Credit Agreement") and terminated the existing Corporate Credit Agreement. The Credit Agreement provides for (i) a five -year $200 million senior secured revolving credit facility including both a letter of credit subfacility of up to $30 million and a swingline loan subfacility of up to $25 million ) (the “Revolving Credit Facility”) and (ii) a seven -year $600 million senior secured term loan facility (the “Tranche B Term Loan due 2024”). The Revolving Credit Facility expires in October 2022 and the Tranche B Term Loan due 2024 expires in October 2024. Borrowings under the Credit Agreement's Revolving Credit Facility will be used to provide ongoing working capital as well as other general corporate cash flow needs of the Company. Borrowings under the Credit Agreement bear interest, at the Company's election, at a rate per annum equal to (i) LIBOR plus the applicable margin or (ii) the base rate plus the applicable margin. In the second quarter of 2018, the Company amended the Credit Agreement to reduce the applicable margin on the Revolving Credit Facility and Tranche B Term Loan due 2024. The LIBOR applicable margin for advances under the Revolving Credit Facility and Tranche B Term Loan due 2024 was changed from the previous 3.75% per annum to 3.25% per annum. The base rate applicable margin for advances under the Revolving Credit Facility and Tranche B Term Loan due 2024 was changed from 2.75% per annum to 2.25% per annum. Base rate is the higher of (i) the bank prime rate, (ii) the one-month LIBOR rate plus 1.00% and (iii) the federal funds rate plus 0.5% . In the case of the Tranche B Term Loan due 2024, the LIBOR rate may not fall below 1.00% . In addition, the Company will be required to pay a commitment fee on any unused portion of the Revolving Credit Facility at a rate of 0.50% per annum, or, if the consolidated total leverage ratio of the Company and its restricted subsidiaries is equal to or less than 3.25 to 1.00 , 0.375% per annum. The Company will also pay customary letter of credit fees, including a fronting fee equal to 0.125% per annum of the dollar equivalent of the maximum amount available to be drawn under all outstanding letters of credit, as well as customary issuance and administration fees. At December 31, 2018, borrowings under the Credit Agreement's Revolving Credit Facility were $18.0 million , leaving $182.0 million available. The Revolving Credit Facility requires maintenance of a maximum consolidated secured leverage ratio of 3.50 to 1.00 and a minimum consolidated interest coverage ratio of 1.50 to 1.00 . The Company may voluntarily repay and reborrow outstanding loans under the Revolving Credit Facility at any time without a premium or a penalty, other than customary “breakage” costs with respect to LIBOR revolving loans. On October 2, 2017, the Credit Facilities net proceeds of $577.0 million were used to repay the remaining $315.8 million outstanding principal amount of the Tranche B Term Loan due 2020 and related accrued and unpaid interest. The remaining proceeds of the Tranche B Term Loan due 2024 were used to fund the purchase price and associated transaction costs of the acquisition of OnX that closed on October 2, 2017. In the second quarter of 2018, the Company amended the Credit Agreement resulting in a loss on extinguishment of debt of $1.3 million . Guarantors and Security Interests, Credit Agreement All existing and future subsidiaries of the Company (other than Cincinnati Bell Funding LLC (and any other similar special purpose receivables financing subsidiary), the Company's joint ventures, subsidiaries prohibited by applicable law from becoming guarantors, unrestricted subsidiaries and foreign subsidiaries) are required to guarantee borrowings under the Credit Agreement. Debt outstanding under the Credit Agreement is secured by perfected first priority pledges of and security interests in (i) substantially all of the equity interests of the Company's U.S. subsidiaries (other than subsidiaries of non-guarantors of the Credit Agreement) and 66% of the equity interests in certain first-tier foreign subsidiaries held by the Company and the guarantors under the Credit Agreement and (ii) certain personal property and intellectual property of the Company and its subsidiaries (other than that of non-guarantors of the Credit Agreement and certain other excluded property). Corporate Credit Agreement (2012 through 2017) Revolving Credit Facility In the fourth quarter of 2012 the Company entered into a credit agreement ("Corporate Credit Agreement") that remained in place until it was replaced in October 2017 with the new Credit Agreement. The Corporate Credit Agreement provided for a revolving credit facility, and in 2013 was amended to include the $540 million Tranche B Term Loan due 2020. In 2016, an amendment of the Corporate Credit Agreement provided for a $150.0 million revolving credit facility. As a result of the amendment, the Company recorded a $1.7 million loss on extinguishment of debt in the second quarter of 2016. In the fourth quarter of 2016, the Company repaid $208.0 million of its outstanding Tranche B Term Loan due 2020 which resulted in a loss on debt extinguishment of $2.2 million . Borrowings under the Corporate Credit Agreement's Revolving Credit Facility bear interest, at the Company's election, at a rate per annum equal to (i) LIBOR plus the applicable margin or (ii) the base rate plus the applicable margin. The applicable margin for advances under the revolving facility is based on certain financial ratios and ranges between 3.00% and 3.50% for LIBOR rate advances and 2.00% and 2.50% for base rate advances. Base rate is the higher of (i) the bank prime rate, (ii) the one-month LIBOR rate plus 1.00% and (iii) the federal funds rate plus 0.5% . As a result of the Company entering into the Credit Agreement in October 2017, certain previously deferred costs and unamortized discount associated with the Corporate Credit Agreement's Revolving Credit Facility and Tranche B Term Loan due 2020 were written off in the fourth quarter of 2017. The loss on extinguishment of debt associated with the transaction was $3.2 million . Accounts Receivable Securitization Facility Cincinnati Bell Inc. and certain of its subsidiaries have an accounts receivable securitization facility ("Receivables Facility"). In the second quarter of 2018, 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 2019. The amended Receivables Facility extends the termination date to May 2021 and includes an option to sell certain receivables on a non-recourse basis. As of December 31, 2018, the Company sold approximately $20 million of certain accounts receivables. The amendment that took place in the second quarter of 2018 added OnX to the Receivables Facility. Due to this amendment, under the terms of the Receivables Facility during the second and third quarter of 2018, the Company could obtain up to $250.0 million depending on the quantity and quality of accounts receivable. In the fourth quarter of 2018, the Company amended its Receivables Facility to include Hawaiian Telcom Communications, Inc. Due to this amendment, under the terms of the amended Receivables Facility during the fourth quarter of 2018, the borrowing availability for loans and letters of credit was reduced from $250.0 million in the aggregate to $225.0 million in the aggregate. The available borrowing capacity is calculated monthly based on the quantity and quality of outstanding accounts receivable and thus may be lower than the maximum borrowing limit. At December 31, 2018, the available borrowing capacity was $193.7 million . Of the total borrowing capacity of $193.7 million at December 31, 2018, there were $176.6 million of outstanding borrowings and $8.0 million of outstanding letters of credit, leaving $9.1 million available as of December 31, 2018. Interest on the Receivables Facility is based on the LIBOR rate plus 1.1% . The average interest rate on the Receivables Facility was 3.2% in 2018. The Company pays letter of credit fees on the securitization facility and also pays commitment fees on the unused portion of the total facility. Under this agreement, certain U.S. and Canadian subsidiaries, as originators, sell their respective trade receivables on a continuous basis to Cincinnati Bell Funding LLC (“CBF”) or Cincinnati Bell Funding Canada Ltd. ("CBFC"), wholly-owned consolidated subsidiaries of the Company. Although CBF and CBFC are wholly-owned consolidated subsidiaries of the Company, CBF and CBFC are 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 or CBFC, such accounts receivable are legally assets of CBF and CBFC and, as such, are not available to creditors of other subsidiaries or the parent company. The transferors sell their respective trade receivables on a continuous basis to CBF or CBFC. In turn, CBF or CBFC grants, without recourse, a senior undivided interest in the pooled receivables to various purchasers, including commercial paper conduits, in exchange for cash while maintaining a subordinated undivided interest in the form of over-collateralization in the pooled receivables. The transferors have agreed to continue servicing the receivables for CBF and CBFC at market rates; accordingly, no servicing asset or liability has been recorded. For the purposes of consolidated financial reporting, the Receivables Facility is accounted for as secured financing. Because CBF and CBFC have the ability to prepay the Receivables Facility at any time by making a cash payment and effectively repurchasing the receivables transferred pursuant to the facility, the transfers do not qualify for "sale" treatment on a consolidated basis under ASC 860, "Transfers and Servicing." 7 1 / 4 % Notes due 2023 In 1993, the Company issued $50.0 million of 7 1 / 4 % Notes due 2023 ("7 1 / 4 % Notes"). The indenture related to the 7 1 / 4 % Notes does not subject the Company to restrictive financial covenants, but it does contain a covenant providing that if the Company incurs certain liens on its property or assets, the Company must secure the outstanding 7 1 / 4 % Notes equally and ratably with the indebtedness or obligations secured by such liens. The liens under the Credit Agreement have resulted in the debt outstanding under the 7 1 / 4 % Notes being secured equally and ratably with the obligations secured under the Credit Agreement. Interest on the 7 1 / 4 % Notes is payable semi-annually on June 15 and December 15. The Company may not call the 7 1 / 4 % Notes prior to maturity. The indenture governing the 7 1 / 4 % Notes provides for customary events of default, including for failure to make any payment when due and for one or more defaults of any other existing debt instruments that exceeds $20.0 million , in the aggregate. The Company repaid $4.0 million of its 7 1 / 4 % Notes at a redemption price of 100.750% which resulted in a $0.1 million loss on extinguishment of debt during 2016. 7% Senior Notes due 2024 In the third quarter of 2016, the Company issued in a private offering $425.0 million aggregate principal amount of 7% Senior Notes due 2024 ("7% Senior Notes") at par. The Company issued an additional $200.0 million aggregate principal amount of 7% Senior Notes at a price of 105.000% in the fourth quarter of 2016. The 7% Senior Notes are senior unsecured obligations of the Company, which rank equally in right of payment with all existing and future unsecured senior debt of the Company. The 7% Senior Notes will be effectively subordinated to all existing and future secured indebtedness of the Company to the extent of the value of the assets securing such indebtedness. The 7% Senior Notes are guaranteed on a joint and several basis by certain of the Company’s existing and future domestic subsidiaries. Each such guarantee is a senior unsecured obligation of the applicable guarantor, ranking equally with all existing and future unsecured senior debt of such guarantor and effectively subordinated to all existing and future secured indebtedness of such guarantor to the extent of the value of the assets securing that indebtedness. The 7% Senior Notes are structurally subordinated to all liabilities (including trade payables) of each subsidiary of the Company that does not guarantee the 7% Senior Notes. The 7% Senior Notes bear interest at a rate of 7% per annum, payable semi-annually on January 15 and July 15 of each year, beginning on January 15, 2017, to persons who are registered holders of the 7% Senior Notes on the immediately preceding January 1 and July 1, respectively. The 7% Senior Notes will mature on July 15, 2024. However, prior to September 15, 2019, the Company may, at its option, redeem some or all of the 7% Senior Notes at a redemption price equal to 100% of the principal amount of the 7% Senior Notes, together with accrued and unpaid interest, if any, plus a “make-whole” premium. On or after September 15, 2019, the Company may, at its option, redeem some or all of the 7% Senior Notes at any time at declining redemption prices equal to (i) 105.250% beginning on September 15, 2019, (ii) 103.500% beginning on September 15, 2020, (iii) 101.750% beginning on September 15, 2021 and (iv) 100.000% beginning on September 15, 2022 and thereafter, plus, in each case, accrued and unpaid interest, if any, to the applicable redemption date. In addition, before September 15, 2019, and subject to certain conditions, the Company may, at its option, redeem up to 40% of the aggregate principal amount of 7% Senior Notes with the net proceeds of certain equity offerings at 107.000% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of redemption; provided that (i) at least 60% of the aggregate principal amount of 7% Senior Notes remains outstanding and (ii) the redemption occurs within 180 days of the closing of any such equity offering. The indenture governing the 7% Senior Notes contains covenants including but not limited to the following: limitations on dividends to shareowners and other restricted payments; dividend and other payment restrictions affecting the Company’s subsidiaries such that the subsidiaries are generally not permitted to enter into an agreement that would limit their ability to make dividend payments to the parent; issuance of indebtedness; asset dispositions; transactions with affiliates; liens; investments; issuances and sales of capital stock of subsidiaries; and redemption of debt that is junior in right of payment. The indenture governing the 7% Senior Notes provides for customary events of default, including a cross-default provision for both nonpayment at final maturity or acceleration due to a default of any other existing debt instrument that equals or exceeds $35 million . 8% Senior Notes due 2025 In the fourth quarter of 2017, CB Escrow Corp. (the “Issuer”), an Ohio corporation and wholly owned subsidiary of Cincinnati Bell Inc., closed the private offering of $350 million aggregate principal amount of 8% Senior Notes at par. The 8% Senior Notes were issued pursuant to an indenture, dated as of October 6, 2017 (the “Indenture”), between the Issuer and Regions Bank, as trustee. Concurrently with the closing of the offering, the Issuer entered into an escrow agreement (the “Escrow Agreement”) pursuant to which the initial purchasers of the 8% Senior Notes on behalf (and at the direction) of the Issuer, deposited the gross proceeds of the offering into an escrow account. The Issuer deposited into the escrow account an additional amount of cash that would be sufficient to pay all interest that accrued on the 8% Senior Notes up to, but not including, October 9, 2018. The offering of the 8% Senior Notes was part of the financing of the cash portion of the acquisition consideration for Hawaiian Telcom Holdco, Inc. (“Hawaiian Telcom”) by the Company. At the closing of the acquisition of Hawaiian Telcom, the Issuer merged with and into the Company (the “Escrow Merger”), with the Company continuing as the surviving corporation. At the time of the Escrow Merger, the Company assumed the obligations of the Issuer under the 8% Senior Notes and the Indenture (the “Assumption”) and, the proceeds from the offering were released from the escrow account to the Company. The 8% Senior Notes bear interest at a rate of 8.00% per annum, payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2018, to persons who are registered holders of the 8% Senior Notes on the immediately preceding April 1 and October 1, respectively. The 8% Senior Notes will mature on October 15, 2025. However, prior to October 15, 2020, the Company may, at its option, redeem some or all of the Notes at a redemption price equal to 100% of the principal amount of the Notes, together with accrued and unpaid interest, if any, plus a “make-whole” premium. On or after October 15, 2020, the Company may, at its option, redeem some or all of the Notes at any time at declining redemption prices equal to (i) 106.000% beginning on October 15, 2020, (ii) 104.000% beginning on October 15, 2021, (iii) 102.000% beginning on October 15, 2022 and (iv) 100.000% beginning on October 15, 2023 and thereafter, plus, in each case, accrued and unpaid interest, if any, to the applicable redemption date. In addition, before October 15, 2020, and subject to certain conditions, the Company may, at its option, redeem up to 40% of the aggregate principal amount of Notes with the net proceeds of certain equity offerings at 108.000% of the principal amount thereof, plus accrued and unpaid interest, if any, to the date of redemption; provided that (i) at least 60% of the aggregate principal amount of Notes remains outstanding after such redemption and (ii) the redemption occurs within 180 days of the closing of any such equity offering. Cincinnati Bell Telephone Notes In 1998, CBT's predecessor issued $150.0 million in aggregate principal of 6.30% unsecured senior notes due 2028 (the "CBT Notes"), which are guaranteed on a subordinated basis by the Company but not its subsidiaries. The indenture related to the CBT Notes does not subject the Company or CBT to restrictive financial covenants, but it does contain a covenant providing that if CBT incurs certain liens on its property or assets, CBT must secure the outstanding CBT Notes equally and ratably with the indebtedness or obligations secured by such liens. In 2017, CBT pledged its assets in support of the Company's debt incurred under the Credit Agreement, and as a result, the CBT Notes became equally and ratably secured. The maturity date of the CBT notes is in 2028, and the CBT Notes may be redeemed at any time at a redemption price equal to the greater of 100% of the principal amount of the CBT Notes to be redeemed or the sum of the present values of the remaining scheduled payments of principal and interest to maturity, plus accrued interest to the redemption date. The indenture governing the CBT Notes provides for customary events of default, including for failure to make any payment when due and for one or more defaults of any other existing debt instruments of the Company or CBT that exceeds $20.0 million , in the aggregate. During 2016, the Company redeemed $40.8 million of its CBT Notes at an average redemption price of 92.232% which resulted in a gain on extinguishment of debt of $2.8 million . Capital Lease Obligations Capital lease obligations represent our obligation for certain leased assets, including vehicles and various equipment. These leases generally contain renewal or buyout options. Debt Maturity Schedule The following table summarizes our annual principal maturities of debt, other financing arrangements and capital leases for the five years subsequent to December 31, 2018 , and thereafter: Other Capital Total (dollars in millions) Debt financing arrangements leases debt Year ended December 31, 2019 $ 6.0 $ 0.8 $ 13.4 $ 20.2 2020 6.0 1.1 10.5 17.6 2021 182.6 1.1 7.1 190.8 2022 24.0 0.1 5.0 29.1 2023 28.3 — 3.8 32.1 Thereafter 1,631.4 — 34.1 1,665.5 1,878.3 3.1 73.9 1,955.3 Net unamortized premium 1.7 — — 1.7 Unamortized note issuance costs (27.2 ) — — (27.2 ) Total debt $ 1,852.8 $ 3.1 $ 73.9 $ 1,929.8 Total capital lease payments including interest are expected to be $18.0 million for 2019 , $14.4 million for 2020, $10.6 million for 2021, $8.0 million for 2022, $6.5 million for 2023 and $42.6 million thereafter. Deferred Financing Costs Deferred financing costs are costs incurred in connection with obtaining long-term financing and renewing revolving credit agreements. Deferred financing costs are amortized on the effective interest method. In 2018, the Company incurred deferred financing costs of $1.0 million related to the amendment to the Tranche B Term Loan due 2024 and $8.7 million related to the 8% Senior Notes due 2025 that was payable at the close of the acquisition transaction. In 2017, the Company incurred deferred financing costs of $12.9 million related to the issuance of the Tranche B Term Loan due 2024 and $1.4 million related to the issuance of 8% Senior Notes due 2025. In 2018 and 2017, deferred financing costs incurred for amending and renewing revolving credit agreements were $2.3 million and $4.6 million , respectively. The Company wrote-off deferred financing costs associated with the extinguishment of debt of $1.3 million , $2.1 million and $5.9 million in 2018, 2017 and 2016, respectively. The Company records costs incurred in connection with obtaining revolving credit agreements as an asset. As of December 31, 2018 and 2017 , deferred financing costs recorded to "Other non-current assets" totaled $4.9 million and $5.1 million , respectively. Amortization of deferred financing costs, included in "Interest expense" in the Consolidated Statements of Operations, totaled $5.7 million in 2018 , $3.4 million in 2017 , and $3.0 million in 2016 . Debt Covenants Credit Agreement The Credit Agreement has financial covenants that require the Company to maintain certain leverage and interest coverage ratios. As of December 31, 2018, these ratios and limitations include a maximum secured consolidated total leverage ratio of 3.50 to 1.00 and a minimum consolidated interest coverage ratio of 1.50 to 1.00. In addition, the Credit Agreement contains customary affirmative and negative covenants, including but not limited to, restrictions on Company's ability to incur additional indebtedness, create liens, pay dividends, make certain investments, and prepay other indebtedness, sell, transfer, lease, or dispose of assets and enter into, or undertake, certain liquidations, mergers, consolidations or acquisitions. The Credit Agreement contains customary events of default (which are in some cases subject to certain exceptions, thresholds and grace periods), including, but not limited to, nonpayment of principal or interest, failure to perform or observe covenants, breaches of representations and warranties, cross-defaults with certain other indebtedness, certain bankruptcy-related events or proceedings, final monetary judgments or orders, ERISA defaults, invalidity of loan documents or guarantees, and certain change of control events. If the Company were to violate any of its covenants and were unable to obtain a waiver, it would be considered a default. If the Company were in default under the Credit Agreement, no additional borrowings under this facility would be available until the default was waived or cured. The Tranche B Term Loan due 2024 is subject to the same affirmative and negative covenants and events of default as the Revolving Credit Facility, except that a breach of the financial covenants will not result in an event of default under the Tranche B Term Loan due 2024 unless and until the agent or a majority in interest of the lenders under the Revolving Credit Facility have terminated their commitments under the Revolving Credit Facility and accelerated the loans then outstanding under the Revolving Credit Facility in response to such breach in accordance with the terms and conditions of the Credit Agreement. Extinguished Notes During 2016, the Company repaid the remaining $478.5 million outstanding on the 8 3 / 8 % Senior Notes at an average price of 103.328% , resulting in a $17.8 million loss on extinguishment of debt. In the fourth quarter of 2017, the Company repaid the remaining $315.8 million outstanding principal amount of its Tranche B Term Loan due 2020 and related accrued and unpaid interest. As a result, a loss on extinguishment of debt is recorded in the fourth quarter of 2017 of $2.6 million . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies [Text Block] | Commitments and Contingencies Operating Lease Commitments The Company leases certain circuits, facilities, and equipment used in its operations. Operating lease expense was $18.4 million , $10.7 million and $9.6 million in 2018 , 2017 and 2016 , respectively. Certain facility leases provide for renewal options with fixed rent escalations beyond the initial lease term. At December 31, 2018 , total future minimum lease payments required under operating leases having initial or remaining non-cancellable lease terms the next five years and thereafter are as follows: (dollars in millions) 2019 $ 10.9 2020 9.4 2021 6.1 2022 4.5 2023 3.9 Thereafter 23.7 Total $ 58.5 Other Installment Financing Arrangements Prior to the acquisition of Hawaiian Telcom in July 2018, Hawaiian Telcom had an open dispute related to jointly-owned utility poles. Each of the electric utilities for the four counties in the State of Hawaii had separate agreements with Hawaiian Telcom for the joint ownership and maintenance of utility poles along with other third parties, such as the State of Hawaii. The agreements set forth various circumstances requiring pole removal, installation and replacement and the sharing of costs among the joint pole owners. The agreements allowed for the cost of work done by one joint pole owner to be shared by the other joint pole owners based on the apportionment of costs in the agreements. Generally, the electric utilities had maintained, replaced and installed the majority of the jointly-owned poles and had billed the other joint pole owners for their respective share of the costs. Hawaiian Telcom had a disagreement with the common owner of the utilities in three of the counties in Hawaii regarding the amount the utilities were requesting for their share of the capitalized costs. At the time of the acquisition, Hawaiian Telcom had negotiated a potential resolution of the dispute with the utilities; however, the resolution was pending approval by the Hawaii Public Utilities Commission. In October 2018 the Hawaii Public Utilities Commission approved the resolution. The agreement approved by the Hawaii Public Utilities Commission provided for the transfer of Hawaiian Telcom’s ownership responsibility of the poles to Hawaiian Electric Company (HEC) and Hawaiian Telcom to pay a fixed annual fee to HEC for continued use of the poles. The agreement, referred to as the Pole License Agreement, has a duration of 10 years at a fixed rate with two renewal options each for five year terms. Due to the continuing involvement by the Company, this transaction does not meet the requirements to be accounted for as a sale-leaseback, and therefore it has been treated as a financing obligation. As of December 31, 2018, the Company has a liability recorded of $40.1 million related to the payments for the use of the poles for the next 20 years, of which $1.0 million is recognized within "Other current liabilities" in the Consolidated Balance Sheets. The IT Services and Hardware segment entered into an agreement in June 2018 for a building to use in its data center operations. Structural improvements were made to the facility in excess of normal tenant improvements and, as such, we are deemed the accounting owner of the facility. The term of the agreement for the building shell is a duration of 10 years with two renewal options each with a two-year term. As of December 31, 2018, the liability related to the financing arrangement was $4.5 million , which was recognized within "Other noncurrent liabilities" in the Consolidated Balance Sheets. The future minimum payments under the base agreements, as well as the renewal options for each lease which the Company expects to exercise, are as follows: (dollars in millions) 2019 $ 0.8 2020 0.8 2021 3.5 2022 5.8 2023 5.8 Thereafter 58.8 Total minimum financing obligation payments $ 75.5 Trans-Pacific Submarine Cable Commensurate to the acquisition of Hawaiian Telcom, the Company gained access to the SEA-US cable. In August 2014, Hawaiian Telcom joined several other telecommunication companies to form a consortium to build and operate the SEA-US cable. The total system cost was $235.0 million and was primarily composed of a supply contract with the lead contractor. The Company has a fractional ownership in the system and recognizes its fractional share at cost. In addition, the Company constructed a cable landing station in Hawaii and provides cable landing services. The system was completed in August 2017. During 2018, the Company incurred costs of $1.7 million , primarily to the cable contractor for construction, with all such costs capitalized. The Company has excess capacity on its share of the SEA-US cable that it makes available to other carriers for a fee. The Company has contracted and expects to enter into additional IRU agreements with other carriers for use of this excess fiber circuit capacity. The Company may receive up-front payments for services to be delivered over a period of up to 25 years. As of December 31, 2018, the Company has a remaining obligation related to the sale of capacity and other services of $23.0 million , which was previously received in up-front payments. The Company is recognizing revenue for the cable on a straight-line basis over the contract term. The Company recognizes a financing component in accordance with ASC 606 associated with the upfront payments as the contract terms range up to 25 years. Asset Retirement Obligations Asset retirement obligations exist for certain assets. In conjunction with the acquisition of Hawaiian Telcom, the Company recognized certain asset retirement obligations related to underground tanks and environmental remediation that will occur prior to the retirement of certain assets. These obligations are recorded in "Other noncurrent liabilities" in the Consolidated Balance Sheets. Additionally, the Company recognizes certain asset retirement obligations related to data center leases which are recorded in "Accounts payable" in the Consolidated Balance Sheets. The following table presents the activity for the Company’s asset retirement obligations: December 31, (dollars in millions) 2018 2017 Balance, beginning of period $ 2.3 $ 1.8 Hawaiian Telcom opening balance sheet adjustment 6.6 — Liabilities incurred — 0.4 Liabilities settled (0.1 ) — Accretion expense 0.3 0.1 Balance, end of period $ 9.1 $ 2.3 Indemnifications During the normal course of business, the Company makes certain indemnities, commitments, and guarantees under which it may be required to make payments in relation to certain transactions. These include (a) intellectual property indemnities to customers in connection with the use, sale, and/or license of products and services, (b) indemnities to customers in connection with losses incurred while performing services on their premises, (c) indemnities to vendors and service providers pertaining to claims based on negligence or willful misconduct of the Company, (d) indemnities involving the representations and warranties in certain contracts, and (e) outstanding letters of credit which totaled $8.2 million as of December 31, 2018 . In addition, the Company has made contractual commitments to several employees providing for payments upon the occurrence of certain prescribed events. The majority of these indemnities, commitments, and guarantees do not provide for any limitation on the maximum potential for future payments that the Company could be obligated to make. As permitted under Ohio law, the Company has agreements whereby the Company indemnifies its officers and directors for certain events or occurrences while the officer or director is, or was, serving at the Company's request in such capacity. The term of the indemnification period is for the lifetime of the officer or director. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits the Company's exposure and enables the Company to recover a portion of any future amounts paid. As a result of the Company's insurance policy coverage, the Company believes the estimated fair value of these indemnification agreements is minimal. The Company has no liabilities recorded for these agreements as of December 31, 2018 or 2017 . Purchase Commitments The Company has noncancellable purchase commitments related to certain goods and services. These agreements typically range from one to three years. As of December 31, 2018 and 2017 , the minimum commitments for these arrangements were approximately $157 million and $205 million , respectively. The Company generally has the right to cancel open purchase orders prior to delivery and to terminate the contracts without cause. Litigation Cincinnati Bell and its subsidiaries are subject to various lawsuits, actions, proceedings, claims and other matters asserted under laws and regulations in the normal course of business. We believe the liabilities accrued for legal contingencies in our consolidated financial statements, as prescribed by GAAP, are adequate in light of the probable and estimable contingencies. However, there can be no assurances that the actual amounts required to satisfy alleged liabilities from various legal proceedings, claims, tax examinations, and other matters, and to comply with applicable laws and regulations, will not exceed the amounts reflected in our consolidated financial statements. As such, costs, if any, that may be incurred in excess of those amounts provided as of December 31, 2018 , cannot be reasonably determined. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Disclosures [text block] | Financial Instruments and Fair Value Measurements Interest Rate Swaps The Company uses interest rate swap agreements to minimize its exposure to interest rate fluctuations on variable rate debt borrowings. Interest rate swaps involve the exchange of fixed and variable rate interest payments and do not represent an actual exchange of the underlying notional amounts between parties. The Company has one forward starting non-amortizing interest rate swap with a total notional amount of $300.0 million to convert variable rate debt to fixed rate debt. The interest rate swap became effective in June 2018 and expires in June 2023. The interest rate swap results in interest payments based on an average fixed rate of 2.938% plus the applicable margin per the requirements in the Credit Agreement (see Note 8). During the next twelve months, the Company estimates that $1.2 million will be reclassified as an increase to interest expense. The Company has agreements with its derivative financial instrument counter-parties that contain provisions providing that if the Company defaults on the indebtedness associated with its derivative financial instruments, then the Company could also be declared in default on its derivative financial instrument obligations. The Company minimizes this risk by evaluating the creditworthiness of our counter-parties, which are limited to major banks and financial institutions. Upon inception, the interest rate swap was designated as a cash flow hedge under ASC 815, with gains and losses, net of tax, measured on an ongoing basis recorded in accumulated other comprehensive income (loss). The fair value of the interest rate swap is categorized as Level 2 in the fair value hierarchy as it is based on well-recognized financial principles and available market data. As of December 31, 2018, the fair value of the interest rate swap liability was $5.0 million and is recorded in the Consolidated Balance Sheets as of December 31, 2018 as follows: December 31, 2018 (dollars in millions) Balance Sheet Location December 31, 2018 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Liabilities: Interest Rate Swap Other noncurrent liabilities $ 3.8 $ — $ 3.8 $ — Interest Rate Swap Other current liabilities $ 1.2 $ — $ 1.2 $ — The amount of losses recognized in Accumulated Other Comprehensive Income ("AOCI") net of reclassifications into earnings is as follows: Year Ended December 31, (dollars in millions) 2018 Interest Rate Swap $ (5.0 ) The amount of losses reclassified from AOCI into earnings is as follows: Year Ended December 31, (dollars in millions) Statement of Operations Location 2018 Interest Rate Swap Interest Expense $ (1.2 ) Disclosure on Financial Instruments The carrying values of the Company's financial instruments approximate the estimated fair values as of December 31, 2018 and December 31, 2017 , except for the Company's long-term debt and other financing arrangements. The carrying and fair values of these items are as follows: December 31, 2018 December 31, 2017 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,880.0 $ 1,673.6 $ 1,687.1 $ 1,687.5 Other financing arrangements 44.6 43.6 — — *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 December 31, 2018 and December 31, 2017 , which is considered Level 2 of the fair value hierarchy. The fair value of other financing arrangements was calculated using a discounted cash flow model that incorporates current borrowing rates for obligations of similar duration, which is considered Level 3 of the fair value hierarchy. As of December 31, 2018 , the current borrowing rate was estimated by applying the Company's credit spread to the risk-free rate for a similar duration borrowing. Non-Recurring Fair Value Measurements Certain long-lived assets, intangibles, and goodwill may be required to be measured at fair value on a non-recurring basis subsequent to their initial measurement. These non-recurring fair value measurements generally occur when evidence of impairment has occurred. In 2016 and 2018, no assets were remeasured at fair value. During 2017, the following assets were remeasured at fair value in connection with impairment tests: Fair Value Measurements Using (dollars in millions) Year Ended December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impairment Losses Equity method investment: Equity method investment — — — — $ (4.7 ) Impairment of equity method investment $ (4.7 ) In the third quarter of 2017, an equity method investment recorded within “Other noncurrent assets” in the Consolidated Balance Sheets was remeasured at fair value due to a triggering event identified by management. As a result of the fair value analysis, the entire carrying value of $4.7 million was impaired and recorded to "Other expense (income), net" on the Consolidated Statements of Operations. This fair value measurement is considered a Level 3 measurement due to the significance of its unobservable inputs. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Plans [Text Block] | Pension and Postretirement Plans Savings Plans The Company sponsors several defined contribution plans covering substantially all employees. The Company's contributions to the plans are based on matching a portion of the employee contributions. Both employer and employee contributions are invested in various investment funds at the direction of the employee. Employer contributions to the defined contribution plans were $11.3 million , $8.2 million , and $8.4 million in 2018 , 2017 , and 2016 , respectively. Pension and Postretirement Plans Cincinnati Plans The Company sponsors three noncontributory defined benefit pension plans: one for eligible management employees, one for non-management employees, and one supplemental, nonqualified, unfunded plan for certain former senior executives (collectively the "Cincinnati Plans"). The management pension plan is a cash balance plan in which the pension benefit is determined by a combination of compensation-based credits and annual guaranteed interest credits. The non-management pension plan is also a cash balance plan in which the combination of service and job-classification-based credits and annual interest credits determine the pension benefit. Benefits for the supplemental plan are based on eligible pay, adjusted for age and service upon retirement. We fund both the management and non-management plans in an irrevocable trust through contributions, which are determined using the traditional unit credit cost method. We also use the traditional unit credit cost method for determining pension cost for financial reporting purposes. During 2017, the non-management pension plan made lump sum payments of $11.0 million resulting in a reduction of the plan benefit obligation of $11.3 million . The Company recorded a pension settlement cost of $4.0 million in 2017 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost component of the net pension cost. The Company also provides healthcare and group life insurance benefits for eligible retirees. We fund healthcare benefits and other group life insurance benefits using Voluntary Employee Benefit Association ("VEBA") trusts. It is our practice to fund amounts as deemed appropriate from time to time. Contributions are subject to Internal Revenue Service ("IRS") limitations developed using the traditional unit credit cost method. The actuarial expense calculation for our postretirement health plan is based on numerous assumptions, estimates, and judgments including healthcare cost trend rates and cost sharing with retirees. Retiree healthcare benefits are being phased out for both management and certain retirees. During 2017, the Company reviewed the employees with special death benefits only within the defined benefit pension plans and determined that the liabilities associated with the special death benefits would be better associated with the postretirement health plans. As a result, the Company eliminated the liability associated with the special death benefits in the defined benefit pension plans, and recorded a liability of $14.0 million in the postretirement health plans in 2017. Hawaii Plans The Company sponsors one noncontributory defined benefit plan for union employees, one cash balance pension plan for nonunion employees, and two postretirement health and life insurance plans for Hawaiian Telcom employees (collectively the "Hawaii Plans"). The noncontributory defined benefit plan was frozen as of March 1, 2012 and the cash balance pension plan was frozen as of April 1, 2007. During 2018, Hawaiian Telcom's pension plans made lump sum payments of $3.6 million resulting in a reduction of plan benefit obligation of $3.6 million . The Company recorded a pension settlement cost of $0.1 million in 2018 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost component of the net pension cost. Components of Net Periodic Cost The following information relates to noncontributory defined benefit pension plans, postretirement healthcare plans, and life insurance benefit plans at December 31, 2018, 2017 and 2016 for the Cincinnati Plans and at December 31, 2018 for the Hawaii Plans. In both 2017 and 2016, approximately 13% of these costs were capitalized to property, plant and equipment related to network construction in the Entertainment and Communications segment. In accordance with ASU 2017-07, 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 2018. Pension and postretirement benefit costs for these plans were comprised of: Pension Benefits Postretirement and Other Benefits (dollars in millions) 2018 2017 2016 2018 2017 2016 Service cost $ — $ — $ — $ 0.6 $ 0.2 $ 0.3 Interest cost on projected benefit obligation 20.0 19.4 19.3 4.2 3.2 3.3 Expected return on plan assets (29.8 ) (26.0 ) (27.3 ) — — — Amortization of: Prior service cost (benefit) — — 0.1 (3.1 ) (4.5 ) (14.7 ) Actuarial loss 17.0 17.5 19.1 4.1 4.7 4.9 Pension settlement charges 0.1 4.0 — — — — Pension/postretirement cost (benefit) $ 7.3 $ 14.9 $ 11.2 $ 5.8 $ 3.6 $ (6.2 ) The following are the weighted-average assumptions used in measuring the net periodic cost of the pension and postretirement benefits: Cincinnati Plans Pension Benefits Postretirement and Other Benefits 2018 2017 2016 2018 2017 2016 Discount rate 3.60 % 4.10 % 3.80 % 3.60 % 4.00 % 3.70 % Expected long-term rate of return 7.00 % 7.25 % 7.50 % — — — Future compensation growth rate — — — — — — The expected long-term rate of return on plan assets, developed using the building block approach, is based on the mix of investments held directly by the plans and the current view of expected future returns, which is influenced by historical averages. Changes in actual asset return experience and discount rate assumptions can impact the Company’s operating results, financial position and cash flows. Hawaii Plans Pension Benefits Postretirement and Other Benefits 2018 2018 Discount rate 4.10 % 4.20 % Expected long-term rate of return 7.00 % — Future compensation growth rate — — The expected long-term rate of return on plan assets is determined using the target allocation of assets which is based on the goal of earning the highest rate of return while maintaining risk at an acceptable level. When developing the long-term rate of return on plan assets, historical experiences, long-term inflation assumptions, economic forecasts for the types of investments held by the plans, the plans' asset allocations and past performance of the plans' assets are all considered. Benefit Obligation and Funded Status Changes in the plans' benefit obligations and funded status are as follows: Postretirement and Other Benefits Pension Benefits (dollars in millions) 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at January 1, $ 489.2 $ 505.6 $ 98.6 $ 82.6 Hawaiian Telcom opening balance sheet adjustment 184.1 — 51.2 — Service cost — — 0.6 0.2 Interest cost 20.0 19.4 4.2 3.2 Actuarial (gain) loss (39.9 ) 28.1 (20.3 ) 7.6 Benefits paid (43.0 ) (38.6 ) (13.1 ) (11.6 ) Retiree drug subsidy received — — 0.3 0.2 Transfer of special death benefit — (14.0 ) — 14.0 Settlements (3.6 ) (11.3 ) — — Other — — 2.2 2.4 Benefit obligation at December 31, $ 606.8 $ 489.2 $ 123.7 $ 98.6 Change in plan assets: Fair value of plan assets at January 1, $ 392.1 $ 372.3 $ 7.5 $ 8.7 Hawaiian Telcom opening balance sheet adjustment 163.0 — — — Actual (loss) return on plan assets (37.7 ) 64.8 0.3 0.2 Employer contributions 11.6 4.6 10.8 10.0 Retiree drug subsidy received — — 0.3 0.2 Benefits paid (43.0 ) (38.6 ) (13.1 ) (11.6 ) Settlements (3.6 ) (11.0 ) — — Fair value of plan assets at December 31, 482.4 392.1 5.8 7.5 Unfunded status $ (124.4 ) $ (97.1 ) $ (117.9 ) $ (91.1 ) The following are the weighted-average assumptions used in accounting for and measuring the projected benefit obligations: Cincinnati Plans Pension Benefits Postretirement and Other Benefits December 31, December 31, 2018 2017 2018 2017 Discount rate 4.20 % 3.60 % 4.30 % 3.60 % Future compensation growth rate — — — — Hawaii Plans Pension Benefits Postretirement and Other Benefits December 31, December 31, 2018 2018 Discount rate 4.20 % 4.40 % Future compensation growth rate — — The assumed healthcare cost trend rate used to measure the postretirement health benefit obligation is shown below: Cincinnati Plans December 31, 2018 2017 Healthcare cost trend 6.5 % 6.5 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.5 % 4.5 % Year the rates reach the ultimate trend rate 2023 2022 Hawaii Plans December 31, 2018 Healthcare cost trend 6.8 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 5.0 % Year the rates reach the ultimate trend rate 2026 A one-percentage point change in assumed healthcare cost trend rates would have the following effect on the postretirement benefit costs and obligation: (dollars in millions) 1% Increase 1% Decrease Service and interest costs for 2018 $ 0.1 $ (0.1 ) Postretirement benefit obligation at December 31, 2018 1.8 (1.7 ) The projected benefit obligation is recognized in the Consolidated Balance Sheets as follows: Pension Benefits Postretirement and Other Benefits December 31, December 31, (dollars in millions) 2018 2017 2018 2017 Accrued payroll and benefits (current liability) $ 2.1 $ 2.1 $ 11.0 $ 10.5 Pension and postretirement benefit obligations (noncurrent liability) 122.3 95.0 106.9 80.6 Total $ 124.4 $ 97.1 $ 117.9 $ 91.1 Amounts recognized in "Accumulated other comprehensive loss" in the Consolidated Balance Sheets which have not yet been recognized in net pension costs consisted of the following: Pension Benefits Postretirement and Other Benefits December 31, December 31, (dollars in millions) 2018 2017 2018 2017 Prior service (cost) benefit, net of tax of ($0.1), ($0.1), $4.6, $5.3 $ (0.1 ) $ (0.1 ) $ 17.5 $ 19.9 Actuarial loss, net of tax of ($45.0), ($42.5), ($7.1), ($12.7) (156.3 ) (148.4 ) (25.6 ) (44.5 ) Total $ (156.4 ) $ (148.5 ) $ (8.1 ) $ (24.6 ) Amounts recognized in "Accumulated other comprehensive loss" on the Consolidated Statements of Shareowners’ Deficit and the Consolidated Statements of Comprehensive Income are shown below: Pension Benefits Postretirement and Other Benefits (dollars in millions) 2018 2017 2018 2017 Prior service cost recognized: Reclassification adjustments $ — $ — $ (3.1 ) $ (4.5 ) Actuarial (loss) gain recognized: Reclassification adjustments 17.1 21.5 4.1 4.7 Actuarial (loss) gain arising during the period (27.7 ) 11.0 20.4 (7.4 ) The following amounts currently included in "Accumulated other comprehensive loss" are expected to be recognized in 2019 as a component of net periodic pension and postretirement cost: Pension Benefits Postretirement and Other Benefits (dollars in millions) Prior service benefit $ — $ (2.5 ) Actuarial loss 13.9 1.9 Total $ 13.9 $ (0.6 ) Plan Assets, Investment Policies and Strategies Cincinnati Plans The primary investment objective for the trusts holding the assets of the pension and postretirement plans is preservation of capital with a reasonable amount of long-term growth and income without undue exposure to risk. This is provided by a balanced strategy using fixed income and equity securities. The target allocations for the pension plan assets are 65% equity securities and 35% investment grade fixed income securities. Equity securities are primarily held in the form of passively managed funds that seek to track the performance of a benchmark index. Equity securities include investments in growth and value common stocks of companies located in the United States, which represents approximately 52% of the equity securities held by the pension plans at December 31, 2018 , as well as stock of international companies located in both developed and emerging markets around the world. Fixed income securities primarily include holdings of funds, which generally invest in a variety of intermediate and long-term investment grade corporate bonds from diversified industries. The postretirement plan assets are currently invested in a group insurance contract. Hawaii Plans From the acquisition date to December 31, 2018, Hawaiian Telcom's overall investment strategy is to primarily invest for long-term growth with sufficient investments available to fund near-term benefit payments. Hawaiian Telcom aims for diversification of asset types, fund strategies and fund managers. The target allocations for plan assets are 60% equity securities and 40% fixed income securities. Equity securities primarily include investments in equity funds. These investments are diversified in companies located in the United States and internationally. Equity securities that are located in the United States totaled approximately 69% . Fixed income securities are in funds that invest in bonds of companies from diversified industries, mortgage-backed securities and U.S. Treasuries. Beginning in 2019, Hawaiian Telcom's investment strategy will follow the strategies of the Cincinnati Plans. The fair values of the pension plan assets at December 31, 2018 and 2017 by asset category are as follows: (dollars in millions) December 31, 2018 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant Mutual funds U.S. equity index funds $ 165.0 $ 107.2 $ 57.8 $ — International equity index funds 127.2 100.7 26.5 — Fixed income bond funds 183.0 119.3 63.7 — Fixed income short-term money market funds 7.2 0.1 7.1 — Group insurance contract 5.8 — — — Total $ 488.2 $ 327.3 $ 155.1 $ — (dollars in millions) December 31, 2017 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Mutual funds U.S. equity index funds $ 151.0 $ 151.0 $ — $ — International equity index funds 101.3 101.3 — — Fixed income bond funds 136.1 136.1 — — Fixed income short-term money market funds 3.7 3.7 — — Group insurance contract 7.5 — — — Total $ 399.6 $ 392.1 $ — $ — The fair values of Level 1 investments are based on quoted prices in active markets. Level 2 investments include certain fixed income funds, equity funds, and short term investment funds that are held by the Hawaii Plans. Investment funds include commingled funds that are not open to public investment and are valued at the net asset value per share. The majority of such funds allow for redemption each trading day at the daily reported net asset value per share which is reported as the fund fair value on that trading day. There are no restrictions on fund redemptions. As the published net asset value reflects the amount at which the fund trades, the Company has concluded it is reflective of the fund fair value as of the end of each reporting period. The group insurance contract is valued at contract value plus accrued interest and has not been included in the fair value hierarchy, but is included in the totals above. Contributions to our qualified pension plans were $9.3 million in 2018 , $2.3 million in 2017 , and $3.1 million in 2016 . The 2018 contributions include a $5 million contribution to the Hawaii Plans that was required by the Public Utilities Commission of the State of Hawaii in order to complete the merger. Contributions to our non-qualified pension plan were $2.3 million in 2018 , $2.3 million in 2017 , and $2.3 million in 2016 . Based on current assumptions, contributions are expected to be approximately $3 million to both the qualified and non-qualified plans in 2019 , respectively. Management expects to make cash payments of approximately $11 million related to its postretirement health plans in 2019 . Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years: (dollars in millions) Pension Benefits Postretirement and Other Benefits Medicare Subsidy Receipts 2019 $ 77.3 $ 11.5 $ (0.4 ) 2020 51.3 10.7 (0.4 ) 2021 50.1 10.4 (0.3 ) 2022 47.9 10.0 (0.3 ) 2023 46.3 9.5 (0.3 ) Years 2024 - 2028 196.5 41.8 (1.0 ) |
Shareowners' Deficit
Shareowners' Deficit | 12 Months Ended |
Dec. 31, 2018 | |
Shareowners' Deficit [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Shareowners’ Deficit Common Shares The par value of the Company’s common shares is $0.01 per share. At December 31, 2018 and 2017 , common shares outstanding were 50,184,114 and 42,197,965 , respectively. In 2010, the Board of Directors approved a plan for repurchase of up to $150.0 million of the Company's common shares. In 2018 and 2017, no shares were repurchased or retired under this plan. In 2016, the Company repurchased and retired approximately 0.2 million shares of its common stock for $4.8 million at an average price of $19.67 per share. As of December 31, 2018 , the Company had the authority to repurchase $124.4 million of its common stock. The Company previously had a deferred compensation plan for certain executives of the Company. The executive deferred compensation plan was terminated in the fourth quarter of 2015. At December 31, 2015, treasury shares of common stock held under the plan were nominal, with a total cost of $0.5 million . In the fourth quarter of 2016, all amounts due under the plan were distributed to plan participants. On July 2, 2018, the Company completed its acquisition of Hawaiian Telcom. In conjunction with the acquisition, the Company issued 7.7 million common shares as stock consideration, with a total value of $121.2 million . Preferred Shares The Company is authorized to issue 1,357,299 shares of voting preferred stock without par value and 1,000,000 shares of nonvoting preferred stock without par value. The Company issued 155,250 voting shares of 6 3 / 4 % cumulative convertible preferred stock at stated value. These shares were subsequently deposited into a trust in which the underlying 155,250 shares are equivalent to 3,105,000 depositary shares. Shares of this preferred stock can be converted at any time at the option of the holder into common stock of the Company at a conversion rate of 5.7676 shares of the Company common stock per one share of 6 3 / 4 % cumulative convertible preferred stock. Annual dividends of $67.50 per share (or $3.3752 per depositary share) on the outstanding 6 3 / 4 % convertible preferred stock are payable quarterly in arrears in cash, or in common stock in certain circumstances if cash payment is not legally permitted. The liquidation preference on the 6 3 / 4 % cumulative convertible preferred stock is $1,000 per share (or $50 per depositary share). The Company paid $10.4 million in preferred stock dividends in each of 2018 , 2017 , and 2016 . Accumulated Other Comprehensive Loss Shareowners’ deficit includes an accumulated other comprehensive loss that is comprised of pension and postretirement unrecognized prior service cost and unrecognized actuarial losses, unrealized gains on Investment in CyrusOne, unrealized loss on cash flow hedge arising during the period and foreign currency translation losses. For the years ended December 31, 2018 and 2017, the changes in accumulated other comprehensive loss by component were as follows: (dollars in millions) Unrecognized Net Periodic Pension and Postretirement Benefit Cost Unrealized gain on Investment in CyrusOne Unrealized Loss on Cash Flow Hedge Foreign Currency Translation Loss Total Balance as of December 31, 2016 $ (157.6 ) $ 68.1 $ — $ (0.8 ) $ (90.3 ) Remeasurement of benefit obligations 2.8 — — — 2.8 Unrealized gain on Investment in CyrusOne, net — 8.3 (a) — — 8.3 Reclassifications, net 13.9 (b) (76.4 ) (c) — — (62.5 ) Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform (32.2 ) (d) — — — (32.2 ) Foreign currency gain — — — 0.2 0.2 Balance as of December 31, 2017 $ (173.1 ) $ — $ — $ (0.6 ) $ (173.7 ) Remeasurement of benefit obligations (5.5 ) — — — (5.5 ) Reclassifications, net 14.1 (b) — 0.9 (e) — 15.0 Unrealized loss on cash flow hedge arising during the period, net — — (4.8 ) (f) — (4.8 ) Foreign currency loss — — — (6.5 ) (6.5 ) Balance as of December 31, 2018 $ (164.5 ) $ — $ (3.9 ) $ (7.1 ) $ (175.5 ) (a) The unrealized gain on Investment in CyrusOne, net of tax, represents changes in the fair value of CyrusOne shares of common stock owned by the Company during the period, before any subsequent sales of those shares. (b) 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 and pension settlement charges, net of tax. 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 Consolidated Statements of Operations. See Note 11 for further disclosures. (c) These reclassifications are reported within "Gain on sale of CyrusOne investment" on the Consolidated Statements of Operations. (d) This reclassification adjustment resulted from a change in the corporate tax rate arising from tax legislation enacted in December 2017, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). In February 2018, the FASB issued ASU 2018-02 which allows entities to make a one-time reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from newly enacted corporate tax rates. The Company early adopted the guidance effective December 31, 2017. 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. (e) These reclassifications are reported within "Interest expense" on the Consolidated Statements of Operations when the hedged transactions impact earnings. (f) The unrealized loss on cash flow hedge represents the change in the fair value of the derivative instrument that occurred during the period, net of tax. This unrealized loss is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Consolidated Balance Sheets. See Note 10 for further disclosures. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Provision (Benefit) Charged to Continuing Operations, Accumulated Other Comprehensive Income (Loss) or Additional Paid-In Capital [Abstract] | |
Income Taxes | Income Taxes All prior year balances have been recast to present the impact of the adoption of ASC 606. Income tax expense for continuing operations consisted of the following: Year Ended December 31, (dollars in millions) 2018 2017 2016 Current: Federal $ (0.6 ) $ (14.8 ) $ (14.0 ) State and local 0.9 1.0 0.5 Foreign 1.6 — — Total current 1.9 (13.8 ) (13.5 ) Investment tax credits (0.1 ) (0.1 ) (0.1 ) Deferred: Federal (10.2 ) 47.1 73.2 State and local 5.7 2.3 5.7 Foreign (1.0 ) 0.4 — Total deferred (5.5 ) 49.8 78.9 Valuation allowance 13.1 (9.2 ) (3.6 ) Total $ 9.4 $ 26.7 $ 61.7 The following is a reconciliation of the statutory federal income tax rate with the effective tax rate for each year: Year Ended December 31, 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % State and local income taxes, net of federal income tax 1.4 0.7 0.2 Change in valuation allowance, net of federal income tax (21.8 ) (9.1 ) (1.4 ) State net operating loss adjustments (10.1 ) 2.0 0.9 Federal rate change — 3.5 — Transaction costs (3.1 ) 5.5 — Non-Deductible Meals and Entertainment (1.8 ) 1.3 0.4 Unrecognized tax benefit changes — 1.4 2.3 Other differences, net (1.1 ) (0.2 ) 0.1 Effective tax rate (15.5 )% 40.1 % 37.5 % The income tax provision (benefit) was charged to continuing operations, accumulated other comprehensive income (loss) or additional paid-in capital as follows: Year Ended December 31, (dollars in millions) 2018 2017 2016 Income tax provision (benefit) related to: Continuing operations $ 9.4 $ 26.7 $ 61.7 Accumulated other comprehensive income (loss) 1.3 (28.3 ) 43.8 Excess tax benefits on stock option exercises — — 0.1 The components of our deferred tax assets and liabilities were as follows: December 31, (dollars in millions) 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 184.0 $ 88.9 Pension and postretirement benefits 55.0 46.1 Employee benefits 10.3 7.9 Interest limitation 15.3 — Texas Margin Credit 12.2 10.5 Other 25.6 9.3 Total deferred tax assets 302.4 162.7 Valuation allowance (58.2 ) (45.5 ) Total deferred tax assets, net of valuation allowance $ 244.2 $ 117.2 Deferred tax liabilities: Property, plant and equipment $ 196.1 $ 115.9 Other 12.0 0.3 Total deferred tax liabilities 208.1 116.2 Net deferred tax assets $ 36.1 $ 1.0 As of December 31, 2018 , the Company had $592.6 million of federal tax operating loss carryforwards with a deferred tax asset value of $124.4 million , $1.3 million of foreign deferred tax assets related to NOLs, and $58.3 million in deferred tax assets related to state and local tax operating loss carryforwards. Federal tax loss carryforwards of $125.6 million will expire in 2023 . U.S. tax laws limit the annual utilization of tax loss carryforwards of acquired entities but the Company expects to fully utilize the tax carryforwards. The ultimate realization of the deferred income tax assets depends upon the Company’s ability to generate future taxable income during the periods in which basis differences and other deductions become deductible, and prior to the expiration of the net operating loss carryforwards. Due to its historical and future projected taxable income from all available sources, management believes it is more likely than not it will utilize future federal deductions and available net operating loss carryforwards prior to their expiration. Management also concluded that it was more likely than not that certain state and foreign tax loss carryforwards would not be realized based upon the analysis described above and therefore provided a valuation allowance. In addition the Company has recorded a valuation allowance in the amount of $15.3 million against the portion of interest expense that is not currently deductible for domestic federal income tax due to the The Tax Cuts and Jobs Act of 2017 (the "Tax Act") effective for the first tax year beginning after December 31, 2017. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $21.9 million and $22.0 million at December 31, 2018 and December 31, 2017 , respectively. Accrued interest and penalties on income tax uncertainties were immaterial as of December 31, 2018 and 2017. A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, (dollars in millions) 2018 2017 2016 Balance, beginning of year $ 22.2 $ 31.4 $ 27.6 Change in tax positions for the current year — 1.0 1.2 Change in tax positions for prior years (0.2 ) 0.3 2.6 Change related to decrease in federal tax rate — (10.5 ) — Balance, end of year $ 22.0 $ 22.2 $ 31.4 The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various foreign, state and local jurisdictions. With a few exceptions, the Company is no longer subject to U.S. federal, state or local examinations for years before 2015 . On December 22, 2017, the U.S. Government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act makes broad and complex changes to the U.S. tax code including, but not limited to, reducing the U.S. federal corporate tax rate from 35% to 21 %, limiting the deductibility of interest and executive compensation and eliminating the corporate alternative minimum tax ("AMT"). GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. In addition, there are certain transitional impacts of the Tax Act. The reduction of the U.S. corporate tax rate caused the Company to adjust our U.S. deferred tax assets and liabilities to the lower federal base rate of 21 %. The Company was able to make a reasonable estimate of the impact; therefore, recorded a provisional net charge of $6.8 million for the quarter ended December 31, 2017. This $6.8 million provisional net charge included a reduction of our uncertain tax positions of $10.5 million . The provisional amounts recorded in 2017 were finalized in 2018 with no additional expense to record. U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested outside the United States. The Company intends to permanently reinvest the undistributed earnings of these foreign subsidiaries in its operations outside the United States to support its international growth. Determination of the amount of any unrecognized deferred income tax liability on this temporary difference is not practicable because of the complexities of the hypothetical calculation. |
Stock-Based and Deferred Compen
Stock-Based and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans [Text Block] | Stock-Based and Deferred Compensation Plans The Company may grant stock options, stock appreciation rights, performance-based awards, restricted stock units, and time-based restricted shares to officers and key employees under the 2017 Long-Term Incentive Plan and stock options, restricted shares, and restricted stock units to directors under the 2017 Stock Plan for Non-Employee Directors. The maximum number of shares authorized and available for award under the 2017 plans at December 31, 2018 was 2.5 million . On May 2, 2017, the 2007 Long Term Incentive Plan and 2007 Stock Option Plan for Non-Employee Directors both expired. Under the 2007 Long Term Incentive Plan, the Company granted stock options, stock appreciation rights, performance-based awards, and time-based restricted shares to officers and key employees. Under the 2007 Stock Option Plan for Non-Employee Directors, the Company granted stock options, restricted shares, and restricted stock units to directors. The Company no longer grants shares under the 2007 plans as of May 2, 2017. On July 2, 2018, the Company completed its acquisition of Hawaiian Telcom. In conjunction with the acquisition, the Company assumed responsibility for the eventual payout of certain stock-based compensation awards that were previously granted to Hawaiian Telcom employees under the Hawaiian Telcom 2010 Equity Incentive Plan. These awards were originally granted by Hawaiian Telcom in the first quarter of 2017 and in the first quarter of 2018, before the merger with Cincinnati Bell was completed. Going forward, all stock-based compensation awards for Hawaiian Telcom employees will be granted under the 2017 Long-Term Incentive Plan. Stock Options and Stock Appreciation Rights Generally, the awards of stock options and stock appreciation rights fully vest three years from grant date and expire ten years from grant date. Beginning in 2012, some of the stock options vested over a three year period based on the achievement of certain performance objectives. The Company generally issues new shares when options to purchase common shares or stock appreciation rights are exercised. The following table summarizes stock options and stock appreciation rights activity: 2018 2017 2016 Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share (in thousands, except per share amounts) Shares Shares Shares Outstanding at January 1, 181 $ 17.10 390 $ 20.00 776 $ 19.27 Exercised (19 ) 8.68 (35 ) 15.76 (236 ) 16.12 Forfeited (9 ) 17.05 (35 ) 21.58 (11 ) 16.16 Expired (2 ) 8.35 (139 ) 24.55 (139 ) 22.79 Outstanding at December 31, 151 $ 18.29 181 $ 17.10 390 $ 20.00 Expected to vest at December 31, 151 $ 18.29 181 $ 17.10 390 $ 20.00 Exercisable at December 31, 151 $ 18.29 181 $ 17.10 330 $ 20.56 (dollars in millions) Compensation expense for the year $ — $ 0.2 $ 0.4 Tax benefit related to compensation expense $ — $ (0.1 ) $ (0.1 ) Intrinsic value of awards exercised $ 0.1 $ 0.2 $ 1.8 Cash received from awards exercised $ 0.2 $ 0.5 $ 3.8 Grant date fair value of awards vested $ — $ 0.3 $ 0.5 The following table summarizes our outstanding and exercisable awards at December 31, 2018 : Outstanding Exercisable Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share (in thousands, except per share amounts) Shares Shares Range of Grant Price $14.55 to $17.05 123 $ 17.04 123 $ 17.04 $23.75 to $26.05 28 23.83 28 23.83 Total 151 $ 18.29 151 $ 18.29 As of December 31, 2018 , the aggregate intrinsic value for awards outstanding and exercisable was zero . The weighted-average remaining contractual life for awards outstanding and exercisable is approximately five years. As of December 31, 2018 , there was no remaining unrecognized stock compensation expense related to stock options or stock appreciation rights. Performance-Based Restricted Awards Awards granted generally vest over three years and upon the achievement of certain performance-based objectives. Performance-based awards are expensed based on their grant date fair value if it is probable that the performance conditions will be achieved. The following table summarizes our outstanding performance-based restricted award activity: 2018 2017 2016 Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share (in thousands, except per share amounts) Shares Shares Shares Non-vested at January 1, 871 $ 17.30 954 $ 15.89 721 $ 16.77 Granted* 288 17.60 245 22.03 307 15.45 Vested (308 ) 15.45 (229 ) 16.74 (51 ) 22.75 Forfeited (159 ) 15.45 (99 ) 16.62 (23 ) 22.35 Non-vested at December 31, 692 $ 18.67 871 $ 17.30 954 $ 15.89 (dollars in millions) Compensation expense for the year $ 2.1 $ 3.9 $ 3.6 Tax benefit related to compensation expense $ (0.5 ) $ (1.4 ) $ (1.3 ) Grant date fair value of awards vested $ 4.7 $ 3.8 $ 1.2 * Assumes the maximum number of awards that can be earned if the performance conditions are achieved. As of December 31, 2018 , unrecognized compensation expense related to performance-based awards was $7.7 million , assuming maximum performance attainment, which is expected to be recognized over a weighted-average period of approximately one year. Time-Based Restricted Awards Awards granted to Cincinnati Bell employees in 2018, 2017 and 2016 vest at the end of a three year period. Awards granted to directors in 2018, 2017 and 2016 vest on the first anniversary of the grant date. As part of the terms of the acquisition of Hawaiian Telcom, certain stock-based compensation awards granted by Hawaiian Telcom before the merger date were converted to time-based restricted stock units. The Company assumed responsibility for the eventual payout of these time-based restricted stock units as part of the acquisition. These awards were originally granted by Hawaiian Telcom in the first quarter of 2017 and 2018, and vest in one-fourth increments over a period of four years. One-fourth of the awards granted in the first quarter of 2017 vested and were distributed by Hawaiian Telcom prior to July 2, 2018. All remaining awards that vest after July 2, 2018 will be distributed by Cincinnati Bell Inc. The following table summarizes our time-based restricted award activity: 2018 2017 2016 Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share (in thousands, except per share amounts) Shares Shares Shares Non-vested at January 1, 164 $ 18.57 106 $ 16.75 47 $ 19.59 Granted 245 17.05 96 20.78 106 16.75 Awards converted pursuant to Hawaiian Telcom acquisition 149 15.70 — — — — Vested (61 ) 18.08 (38 ) 19.10 (47 ) 19.59 Non-vested at December 31, 497 $ 17.02 164 $ 18.57 106 $ 16.75 (dollars in millions) Compensation expense for the year $ 3.5 $ 1.8 $ 1.1 Tax benefit related to compensation expense $ (0.8 ) $ (0.6 ) $ (0.4 ) Grant date fair value of awards vested $ 1.1 $ 0.7 $ 0.9 As of December 31, 2018 , there was $4.0 million of unrecognized compensation expense related to these restricted stock awards, which is expected to be recognized over a weighted-average period of approximately two years. |
Restructuring and Severance
Restructuring and Severance | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring Charges [Abstract] | |
Restructuring Charges [Text Block] | Restructuring and Severance Liabilities have been established for employee separations, lease abandonment and contract terminations. A summary of activity in the restructuring and severance liability is shown below (dollars in millions) Employee Separation Lease Abandonment Other Total Balance as of December 31, 2015 $ 0.2 $ 0.8 $ 0.1 $ 1.1 Charges/(Reversals) 12.5 (0.5 ) (0.1 ) 11.9 Utilizations (1.7 ) (0.1 ) — (1.8 ) Balance as of December 31, 2016 11.0 0.2 — 11.2 Charges 32.7 — — 32.7 Utilizations (29.3 ) (0.1 ) — (29.4 ) Balance as of December 31, 2017 14.4 0.1 — 14.5 Charges 7.5 0.8 — 8.3 Hawaiian Telcom opening balance sheet adjustment 3.8 — — 3.8 Utilizations (16.2 ) (0.2 ) — (16.4 ) Balance as of December 31, 2018 $ 9.5 $ 0.7 — $ 10.2 An opening balance sheet adjustment of $3.8 million was recorded for certain employees who received severance due to the change of control clause within their employment agreements that was triggered at the time of the acquisition of Hawaiian Telcom. Restructuring and severance charges recorded in 2018 are primarily related to a voluntary severance program ("VSP") for certain management employees in the Entertainment and Communications segment, as well as Corporate. The VSP that took place in the fourth quarter of 2018 related to the Company's continued efforts to realize synergies that can be achieved due to the acquisition of Hawaiian Telcom. The Company also incurred employee severance costs in 2018 associated with initiatives to reduce costs and recognize future synergies in the IT Services and Hardware segment as a result of the acquisition of, and integration with, OnX. In addition, a restructuring charge associated with lease abandonment of $0.8 million was recorded in the second quarter of 2018 related to an office space that will no longer be utilized. In 2017, the Company initiated reorganizations within both segments of the business in order to more appropriately align the Company for future growth. In addition, during 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 which resulted in headcount reductions. In 2016, employee severance costs were associated with initiatives to reduce costs associated with our legacy copper network, including a voluntary severance program for certain management employees. Employee severance costs were also incurred as a result of increased in-sourcing of IT professionals by our customers which resulted in headcount reductions in our IT Services and Hardware 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 2020. 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, 2015 $ 0.8 $ 0.3 $ — $ 1.1 Charges 7.7 3.3 0.9 11.9 Utilizations (1.0 ) (0.6 ) (0.2 ) (1.8 ) Balance as of December 31, 2016 7.5 3.0 0.7 11.2 Charges 27.6 5.1 — 32.7 Utilizations (22.8 ) (5.9 ) (0.7 ) (29.4 ) Balance as of December 31, 2017 12.3 2.2 — 14.5 Charges 3.1 4.9 0.3 8.3 Hawaiian Telcom opening balance sheet adjustment 3.8 — — 3.8 Utilizations (10.6 ) (5.8 ) — (16.4 ) Balance as of December 31, 2018 $ 8.6 $ 1.3 $ 0.3 10.2 At December 31, 2018 and 2017 , $9.6 million and $12.0 million , respectively, of the restructuring liabilities were included in “Other current liabilities.” At December 31, 2018 and 2017, $0.6 million and $2.5 million was included in "Other noncurrent liabilities," respectively. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information [Text Block] | Business Segment Information For the years ended December 31, 2018, 2017, and 2016, we operated two business segments: Entertainment and Communications and IT Services and Hardware. 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 and 2016 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 recast to present the impact of adopting these standards. In July 2018, the Company acquired Hawaiian Telcom. Based on the nature of the products and services offered, financial results are presented in either the Entertainment and Communications segment or the IT Services and Hardware segment. The Entertainment and Communications segment provides products and services that can be categorized as either Fioptics in Cincinnati or Consumer/SMB Fiber in Hawaii (collectively, "Consumer/SMB Fiber"), 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. Voice and data services in the Enterprise Fiber and Legacy categories that are delivered beyond the Company's ILEC territory, particularly in Dayton and Mason, Ohio, are provided through the operations of Cincinnati Bell Extended Territories LLC ("CBET"), a subsidiary of CBT. In the second quarter of 2018, the Company acquired Hawaiian Telcom. Hawaiian Telcom is the ILEC for the State of Hawaii and the largest full service provider of communications services and products in that state. Revenue in 2018 includes a contribution by Hawaiian Telcom of $159.2 million . Capital expenditures in the Entertainment and Communications segment are incurred to expand our Consumer/SMB Fiber product suite, upgrade and increase capacity for our internet and data networks, and to maintain our wireline network. 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 hardware reported as Infrastructure Solutions. In the fourth quarter of 2017 the Company acquired OnX, a privately held company that provides technology services and solutions to enterprise customers in the U.S., Canada and the U.K. In July 2018 the Company completed the acquisition of Hawaiian Telcom and products such as UCaaS, hardware and enterprise long distance delivered by Hawaiian Telcom are included in the IT Services and Hardware segment. Total assets for the Company increased $542.6 million as of December 31, 2018 as compared to December 31, 2017. Entertainment and Communications assets increased $787.4 million primarily due to net assets acquired with Hawaiian Telcom. IT Services and Hardware assets decreased by $14.6 million . Corporate assets decreased $230.2 million as a result of the utilization of restricted cash to fund the acquisition of Hawaiian Telcom. Deferred tax assets and liabilities totaled $47.5 million and $11.4 million as of December 31, 2018, respectively. Deferred tax assets and liabilities totaled $12.2 million and $11.2 million as of December 31, 2017, respectively. The increase in deferred tax assets is due the acquisition of Hawaiian Telcom. Our business segment information is as follows: Year Ended December 31, (dollars in millions) 2018 2017 2016 Revenue Entertainment and Communications $ 853.4 $ 706.1 $ 691.3 IT Services and Hardware 550.9 385.1 352.7 Intersegment (26.1 ) (25.5 ) (26.4 ) Total revenue $ 1,378.2 $ 1,065.7 $ 1,017.6 Intersegment revenue Entertainment and Communications $ 22.3 $ 21.2 $ 21.0 IT Services and Hardware 3.8 4.3 5.4 Total intersegment revenue $ 26.1 $ 25.5 $ 26.4 Operating income Entertainment and Communications $ 103.3 $ 86.1 $ 100.1 IT Services and Hardware 17.2 5.3 17.4 Corporate (37.2 ) (36.0 ) (18.7 ) Total operating income $ 83.3 $ 55.4 $ 98.8 Expenditures for long-lived assets* Entertainment and Communications $ 408.0 $ 186.3 $ 260.8 IT Services and Hardware 29.2 191.2 25.4 Corporate 0.2 — 0.2 Total expenditures for long-lived assets $ 437.4 $ 377.5 $ 286.4 Depreciation and amortization Entertainment and Communications $ 210.8 $ 163.7 $ 159.1 IT Services and Hardware 41.0 29.1 23.0 Corporate 0.2 0.2 0.1 Total depreciation and amortization $ 252.0 $ 193.0 $ 182.2 * Includes cost of acquisitions As of December 31, (dollars in millions) 2018 2017 Assets Entertainment and Communications $ 1,898.8 $ 1,111.4 IT Services and Hardware 468.1 482.7 Corporate and eliminations 363.3 593.5 Total assets $ 2,730.2 $ 2,187.6 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information (Unaudited) [Text Block] | Quarterly Financial Information (Unaudited) 2018 First Second Third Fourth (in millions, except per common share amounts) Quarter Quarter Quarter Quarter Total Revenue $ 295.7 $ 296.8 $ 386.7 $ 399.0 $ 1,378.2 Operating income 24.2 20.2 14.5 24.4 83.3 Net (loss) (8.3 ) (13.8 ) (17.7 ) (30.0 ) (69.8 ) Basic (loss) earnings per common share $ (0.26 ) $ (0.39 ) $ (0.41 ) $ (0.65 ) $ (1.73 ) Diluted (loss) earnings per common share $ (0.26 ) $ (0.39 ) $ (0.41 ) $ (0.65 ) $ (1.73 ) 2017 First Second Third Fourth (in millions, except per common share amounts) Quarter Quarter Quarter Quarter Total Revenue $ 249.6 $ 259.4 $ 255.5 $ 301.2 $ 1,065.7 Operating (loss) income (1.8 ) 24.4 15.9 16.9 55.4 Net income (loss) 60.6 2.3 (11.0 ) (11.9 ) 40.0 Basic earnings (loss) per common share $ 1.38 $ (0.01 ) $ (0.32 ) $ (0.34 ) $ 0.70 Diluted earnings (loss) per common share $ 1.37 $ (0.01 ) $ (0.32 ) $ (0.34 ) $ 0.70 The effects of assumed common share conversions are determined independently for each respective quarter and year and may not be dilutive during every period due to variations in operating results. Therefore, the sum of quarterly per share results will not necessarily equal the per share results for the full year. Restructuring and employee severance charges totaled $0.3 million , $4.6 million and $3.4 million in the first, second and fourth quarter of 2018, respectively. Restructuring and employee severance charges totaled $25.6 million , $3.6 million and $3.5 million in the first, second and fourth quarter of 2017, respectively. Transaction and integration costs totaled $2.2 million , $2.7 million , $13.3 million and $4.3 million in the first, second, third, and fourth quarter of 2018, respectively. These costs were primarily related to the acquisition of Hawaiian Telcom. Transaction and integration costs totaled $0.6 million , $1.7 million , $12.1 million and $4.1 million in the first, second, third, and fourth quarter of 2017, respectively. These costs were primarily related to the acquisitions of SunTel and OnX as well as the planned acquisition of Hawaiian Telcom. Interest expense totaled $131.5 million in 2018 compared to $85.2 million in 2017. This increase is due to the Company entering into the $600.0 million Tranche B Term Loan due 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. 2017 net income includes gains from the sale of our CyrusOne investments of $117.7 million in the first quarter. In the second quarter of 2018, the Company amended its Credit Agreement resulting in a loss on extinguishment of debt of $1.3 million being recorded. In the fourth quarter of 2017, the Company recognized losses on extinguishment of debt of $3.2 million . In the third quarter of 2018, the Company acquired Hawaiian Telcom, whose revenues totaled $87.1 million and $87.9 million in the third and fourth quarter of 2018, respectively. Hawaiian Telcom had a net loss of $0.5 million in the third quarter of 2018 and net income of $1.2 million in the fourth quarter of 2018. For further information related to this acquisition, see Note 4 of the Notes to Consolidated Financial Statements. In the fourth quarter of 2017, the Company acquired OnX. The revenues and net income of OnX included in the quarterly financial information from the acquisition date through December 31, 2017 were $53.0 million and $11.5 million , respectively. Revenues totaled $45.3 million , $45.3 million , $49.3 million and $59.1 million in the first, second, third, and fourth quarter of 2018, respectively. OnX had net loss of $2.7 million , $4.3 million and $1.0 million in the first, second, and third quarter of 2018, and net income of $2.1 million in the fourth quarter of 2018. For further information related to this acquisition, see Note 4 of the Notes to Consolidated Financial Statements. In the fourth quarter of 2017, the U.S. Government enacted the Tax Cuts and Jobs Act (the "Tax Act"). The transitional impact of the Tax Act resulted in a provisional net charge of $6.8 million in the fourth quarter of 2017. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information [Text Block] | Supplemental Cash Flow Information Year Ended December 31, (dollars in millions) 2018 2017 2016 Capitalized interest expense $ 1.0 $ 0.7 $ 0.7 Cash paid/(received) for: Interest 131.7 65.7 71.1 Income taxes, net of refunds (13.8 ) (12.9 ) 1.7 Noncash investing and financing activities: Stock consideration for acquisition of Hawaiian Telcom 121.2 — — Accrual of CyrusOne dividends — — 1.1 Acquisition of property by assuming debt and other financing arrangements 51.5 17.3 12.0 Acquisition of property on account 35.8 12.0 23.8 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Valuation and Qualifying Accounts Disclosure [Abstract] | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | VALUATION AND QUALIFYING ACCOUNTS Additions (dollars in millions) Beginning of Period Charge (Benefit) to Expenses (To) From Other Accounts Deductions End of Period Allowance for Doubtful Accounts Year 2018 $ 10.4 $ 8.4 $ — $ 5.8 $ 13.0 Year 2017 $ 9.9 $ 6.9 $ — $ 6.4 $ 10.4 Year 2016 $ 12.4 $ 9.4 $ (2.0 ) $ 9.9 $ 9.9 Deferred Tax Valuation Allowance Year 2018 $ 45.5 $ 13.1 $ (0.4 ) $ — $ 58.2 Year 2017 $ 54.4 $ (9.2 ) $ 0.3 $ — $ 45.5 Year 2016 $ 58.4 $ (3.6 ) $ (0.4 ) $ — $ 54.4 |
Description of Business and A_2
Description of Business and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation — The 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, comprehensive income, financial position and cash flows for each period presented. |
Basis of Consolidation | Basis of Consolidation — The consolidated financial statements include the consolidated accounts of Cincinnati Bell Inc. and its majority-owned subsidiaries over which it exercises control. Intercompany accounts and transactions have been eliminated in the consolidated financial statements. |
Discontinued Operations | Discontinued Operations — In the second quarter of 2014, we entered into agreements to sell our wireless spectrum licenses and certain other assets related to our wireless business. The agreement to sell our wireless spectrum licenses closed on September 30, 2014. Effective March 31, 2015, all wireless subscribers were migrated off our network and we ceased providing wireless services and operations. The results of operations attributable to our wireless operations are reported in discontinued operations in the Consolidated Statements of Income. Other income of $0.3 million was recorded in 2016 related to an individual tower sale. Restructuring payments associated with our discontinued operations of $4.4 million were included in operating cash flow in the Consolidated Statements of Cash Flows for 2016. |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. Significant items subject to such estimates and judgments include: the carrying value of property, plant and equipment; the valuation of insurance and claims liabilities; the valuation of allowances for receivables and deferred income taxes; reserves recorded for income tax exposures; the valuation of asset retirement obligations; assets and liabilities related to employee benefits; the valuation of deferred costs under Accounting Standards Codification ("ASC") 606; purchase price allocation for acquired businesses; and the valuation of intangible assets and goodwill. In the normal course of business, the Company is also 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 GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. We periodically review our estimates in light of changes in circumstances, facts and experience. The effects of material revisions in estimates are reflected in our financial statements prospectively from the date of the change in estimate. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash — Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents | Restricted cash at December 31, 2017, represents the proceeds from the issuance of the 8% Senior Notes due 2025 (the “8% Senior Notes”). Proceeds were placed into an escrow account along with Company cash that was sufficient to pay all interest that accrued on the 8% Senior Notes up to, but not including, October 9, 2018. The amounts held in escrow were contractually restricted as to their withdrawal or use and were used to fund the cash portion of the acquisition of Hawaiian Telcom Holdco, Inc. ("Hawaiian Telcom") in July 2018, and to fund semi-annual interest payments associated with this debt. As of December 31, 2017, $378.7 million is classified as "Restricted Cash." As of December 31, 2018, no cash is classified as "Restricted Cash." |
Receivables | Receivables — Receivables consist principally of trade receivables from customers and are generally unsecured and due within 21 - 90 days. The Company has receivables with one customer, Verizon Communications Inc., which make up 18% of the outstanding accounts receivable balance at December 31, 2018 . The Company had receivables with one customer, General Electric Company ("GE"), which made up 10% of the outstanding accounts receivable balance at December 31, 2017 . Unbilled receivables arise from services rendered but not yet billed. As of December 31, 2018 and 2017 , unbilled receivables totaled $19.0 million and $14.2 million , respectively. Expected credit losses related to trade receivables are recorded as an allowance for uncollectible accounts in the Consolidated Balance Sheets. The Company establishes the allowances for uncollectible accounts using percentages of aged accounts receivable balances to reflect the historical average of credit losses as well as specific provisions for certain identifiable, potentially uncollectible balances. When internal collection efforts on accounts have been exhausted, the accounts are written off and the associated allowance for uncollectible accounts is reduced. |
Factoring Arrangements | Factoring Arrangements — In the second quarter of 2018, the Company executed an amendment of its Receivables Facility that includes an option for Cincinnati Bell Funding LLC (“CBF”) to sell certain receivables, on a non-recourse basis, directly to PNC Bank. The terms of the factoring arrangement provides for the factoring of certain receivables, which are purchased at the face amount of the receivable discounted at the annual rate of LIBOR plus a bank determined spread on the purchase date. Such sales of accounts receivable are reflected as a reduction of "Receivables, less allowances" in the Consolidated Balance Sheets as they meet the applicable criteria in Financial Accounting Standards Board (“FASB”) ASC 860, "Transfers and Servicing." The fees paid in relation to such sales of accounts receivable were $0.1 million in 2018 and are included in "Selling, general, and administrative" in the Consolidated Statements of Operations. Approximately $20 million of receivables were sold under the terms of the factoring agreement in 2018. See Note 8 for further information related to the Receivables Facility. |
Inventory, Materials and Supplies | Inventory, Materials and Supplies — Inventory, materials and supplies consists of network components, various telephony and IT equipment to be sold to customers, maintenance inventories, and other materials and supplies, which are carried at the lower of average cost or market. |
Property, Plant and Equipment | Property, Plant and Equipment — Property, plant and equipment is stated at original cost and presented net of accumulated depreciation and impairment losses. Property, plant and equipment acquired in conjunction with the acquisition of Hawaiian Telcom was stated at fair value in accordance with ASC 805. Maintenance and repairs are charged to expense as incurred while improvements, which extend an asset's useful life or increase its functionality, are capitalized and depreciated over the asset's remaining life. The majority of the Entertainment and Communications network property, plant and equipment used to generate its voice and data revenue is depreciated using the group method, which develops a depreciation rate annually based on the average useful life of a specific group of assets rather than for each individual asset as would be utilized under the unit method. Provision for depreciation of other property, plant and equipment, except for leasehold improvements, is based on the straight-line method over the estimated economic useful life. Depreciation of leasehold improvements is based on a straight-line method over the lesser of the economic useful life of the asset or the term of the lease, including optional renewal periods if renewal of the lease is reasonably assured. Additions and improvements, including interest and certain labor costs incurred during the construction period, are capitalized. The Company records the fair value of a legal liability for an asset retirement obligation in the period it is incurred. The estimated removal cost is initially capitalized and depreciated over the remaining life of the underlying asset. The associated liability is accreted to its present value each period. Once the obligation is ultimately settled, any difference between the final cost and the recorded liability is recognized as gain or loss on disposition. |
Goodwill | Goodwill — Goodwill represents the excess of the purchase price consideration over the fair value of net assets acquired and recorded in connection with business acquisitions. Goodwill is generally allocated to reporting units one level below business segments. Goodwill is tested for impairment on an annual basis or when events or changes in circumstances indicate that such assets may be impaired. If the net book value of the reporting unit exceeds its fair value, an impairment loss is recognized. An impairment loss is measured as the excess of the carrying value of goodwill of a reporting unit over its fair value. |
Long-Lived Assets | Long-Lived Assets — Management reviews the carrying value of property, plant and equipment and other long-lived assets, including intangible assets with definite lives, when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the estimated future undiscounted cash flows expected to result from the use of an asset (or group of assets) and its eventual disposition is less than its carrying amount. An impairment loss is measured as the amount by which the asset’s carrying value exceeds its estimated fair value. Long-lived intangible assets are amortized based on the estimated economic value generated by the asset in future years. |
Investment in CyrusOne | Investment in CyrusOne — On January 24, 2013, we completed the initial public offering ("IPO") of CyrusOne Inc. ("CyrusOne"), which owns and operates our former Data Center Colocation business. In 2016, we sold 4.1 million shares of CyrusOne's common stock for net proceeds totaling $189.7 million that resulted in a gain of $157.0 million . In the first quarter of 2017, we sold our 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 December 31, 2017, we no longer have an investment in CyrusOne Inc. Dividends declared by CyrusOne in 2016 totaled $6.4 million and were included in "Other (income) expense, net" in the Consolidated Statement of Operations |
Equity Method Investments | Equity Method Investments — The Company records equity method investments at carrying value within “Other noncurrent assets” in the Consolidated Balance Sheets. The Company's proportionate share of the investments’ net loss had a minimal impact on our Consolidated Statements of Operations in 2018, 2017 and 2016. Equity method investments are tested for impairment on an annual basis or when events or changes in circumstances indicate that such assets may be impaired. In the third quarter of 2017, the entire carrying value of $4.7 million of an equity method investment was impaired and recorded to "Other (income) expense, net" in the Consolidated Statements of Operations. |
Cost Method Investments | Cost Method Investments — Certain of our cost method investments do not have readily determinable fair values. The carrying value of these investments was $5.8 million and $3.8 million as of December 31, 2018 and 2017, respectively, and was included in "Other noncurrent assets" in the Consolidated Balance Sheets. Investments are reviewed annually for impairment, or sooner if changes in circumstances indicate the carrying value may not be recoverable. If the carrying value of the investment exceeds its estimated fair value and the decline in value is determined to be other-than-temporary, an impairment loss is recognized for the difference. The Company estimates fair value using external information and discounted cash flow analysis. |
Leases | Leases — Certain property and equipment are leased. At lease inception, the lease terms are assessed to determine if the transaction should be classified as a capital or operating lease. |
Treasury Shares | Treasury Shares — The repurchase of common shares is recorded at purchase cost as treasury shares. Our policy is to retire, either formally or constructively, treasury shares that management anticipates will not be reissued. Upon retirement, the purchase cost of the treasury shares that exceeds par value is recorded as a reduction to “Additional paid-in capital” in the Consolidated Balance Sheets. |
Revenue Recognition | Revenue Recognition — Effective January 1, 2018, the Company adheres to revenue recognition principles described in 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. A good or service is considered to be transferred when the customer obtains control. The Company had no customers whose revenue comprised greater than 10% of total revenue in 2018 and 2017. The Company had sales with one customer, GE, which contributed 11% to total revenue in 2016. Revenue derived from foreign operations is approximately 6% and 3% of consolidated revenue in 2018 and 2017, respectively. Revenue derived from foreign operations was immaterial in 2016. Entertainment and Communications — Revenues from local telephone, special access, internet product and video services, which are billed monthly prior to performance of service, are not recognized upon billing or cash receipt but rather are deferred until the service is provided. Consumer long distance, switched access and other usage based charges are billed monthly in arrears. Entertainment and Communications bills service revenue in regular monthly cycles, which are spread throughout the days of the month. As the last day of each billing cycle rarely coincides with the end of the reporting period for usage-based services such as long distance and switched access, we must estimate service revenues earned but not yet billed. These estimates are based upon historical usage, and we adjust these estimates during the period in which actual usage is determinable, typically in the following reporting period. Pricing of local voice services is generally subject to oversight by both state and federal regulatory commissions. Such regulation also covers services, competition, and other public policy issues. Various regulatory rulings and interpretations could result in increases or decreases to revenue in future periods. For long-term indefeasible right of use, or IRU, contracts for fiber circuit capacity, the Company may receive up-front payments for services to be delivered for a period of up to 25 years. In these situations, the Company defers the revenue and amortizes it on a straight-line basis to earnings over the term of the contract. The Company began recognizing a financing component, in accordance with ASC 606, associated with the up-front payments for services to be delivered under IRU contracts for fiber circuit capacity. See Note 3 for further information. IT Services and Hardware — Revenue is generally recognized as the service is provided. Maintenance on telephony equipment is deferred and recognized ratably over the term of the underlying customer contract, generally one to three years. For hardware sales, revenue is recognized net of the cost of product and is recognized when the hardware is shipped. Installation service revenue is generally recognized when installation is complete. We sell equipment and installation services on both a combined and standalone basis. For the sale of hardware within the Infrastructure Solutions category, we evaluate whether we are the principal (in which case we report revenues on a gross basis) or an agent (in which case we 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 typically acts as an agent and, as such, will record revenue associated with the sale of hardware net of the related cost of products. The Entertainment and Communications segment provides products and services to both consumer and enterprise customers that can be categorized as either Fioptics in Cincinnati or Consumer/SMB Fiber in Hawaii (collectively, "Consumer/SMB Fiber"), Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Consumer/SMB Fiber 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. Enterprise Fiber also includes revenue associated with the Southeast Asia to United States ("SEA-US") trans Pacific submarine cable system, which was acquired in conjunction with the acquisition of Hawaiian Telcom in the third quarter of 2018, and connects Indonesia, the Philippines, Guam, Hawaii and the mainland United States. Consumer customers have implied month-to-month contracts, while enterprise customers, with the exception of contracts associated with the SEA-US, 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. Contracts associated with the SEA-US typically range from 15 to 25 years and payment is prepaid. 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 varied 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 and 2016 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 for such good or service 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. Subsequent to the acquisition of Hawaiian Telcom, the Company began recognizing a financing component associated with the up-front payments for services to be delivered under indefeasible right of use ("IRU") contracts for fiber circuit capacity. The IRU contracts are associated with the SEA-US. The IRU contracts typically have a duration ranging from 15 to 25 years. |
Advertising Expenses | Advertising Expenses — Costs related to advertising are expensed as incurred. Advertising costs were $14.2 million , $13.5 million , and $9.5 million in 2018, 2017, and 2016, respectively. |
Legal Expenses | Legal Expenses — In the normal course of business, the Company is involved in various claims and legal proceedings. Legal costs incurred in connection with loss contingencies are expensed as incurred. Legal claim accruals are recorded once determined to be both probable and estimable. |
Income Taxes | Income taxes — The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction as well as various foreign, state and local jurisdictions. The provision for income taxes is based upon income in the consolidated financial statements, rather than amounts reported on the income tax return. The income tax provision consists of an amount for taxes currently payable and an amount for tax consequences deferred to future periods. Deferred investment tax credits are amortized as a reduction of the provision for income taxes over the estimated useful lives of the related property, plant and equipment. Deferred income taxes are provided for temporary differences between financial statement and income tax assets and liabilities. Deferred income taxes are recalculated annually at rates then in effect. Valuation allowances are recorded to reduce deferred tax assets to amounts that are more likely than not to be realized. The ultimate realization of the deferred income tax assets depends upon the ability to generate future taxable income during the periods in which basis differences and other deductions become deductible and prior to the expiration of the net operating loss carryforwards. Previous tax filings are subject to normal reviews by regulatory agencies until the related statute of limitations expires. |
Operating Taxes | Operating taxes — Certain operating taxes such as property, sales, use, and gross receipts taxes are reported as expenses in operating income 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. |
Regulatory Taxes | Regulatory taxes — The Company incurs federal and state regulatory taxes on certain revenue producing transactions. We are permitted to recover certain of these taxes by billing the customer; however, collections cannot exceed the amount due to the federal regulatory agency. These federal regulatory taxes are presented in revenue and cost of services on a gross basis because, while the Company is required to pay the tax, it is not required to collect the tax from customers and, in fact, does not collect the tax from customers in certain instances. The amounts recorded as revenue for 2018, 2017, and 2016 were $22.2 million , $16.8 million and $16.3 million , respectively. The amounts reported as expense for 2018, 2017 and 2016 were $23.4 million , $17.7 million , and $17.5 million , respectively. We record all other federal taxes collected from customers on a net basis. |
Stock-Based Compensation | Stock-Based Compensation — Compensation cost is recognized for all share-based awards to employees and non-employee directors. We value all share-based awards to employees at fair value on the date of grant and expense this amount over the required service period, generally defined as the applicable vesting period. For awards which contain a performance condition, compensation expense is recognized over the service period, when achievement of the performance condition is deemed probable. The fair value of stock options and stock appreciation rights is determined using the Black-Scholes option-pricing model using assumptions such as volatility, risk-free interest rate, holding period and dividends. The fair value of stock awards is based on the Company’s closing share price on the date of grant. For all share-based payments, the Company accounts for forfeitures as they occur. Actual forfeiture activity reduces the total fair value of the awards to be recognized as compensation expense. When an award is granted to an employee who is retirement eligible, the compensation cost is recognized over the service period up to the date that the employee first becomes eligible to retire. |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans — The Company maintains qualified and non-qualified defined benefit pension plans, and also provides postretirement healthcare and life insurance benefits for eligible employees. We recognize the overfunded or underfunded status of the defined benefit pension and other postretirement benefit plans as either an asset or liability. Changes in the funded status of these plans are recognized as a component of comprehensive income (loss) in the year they occur. Pension and postretirement healthcare and life insurance benefits earned during the year and interest on the projected benefit obligations are accrued and recognized currently in net periodic benefit cost. Prior service costs and credits are amortized over the average life expectancy of participants or remaining service period, based upon whether plan participants are mostly retirees or active employees. Net gains or losses resulting from differences between actuarial estimates or from changes in actuarial assumptions are recognized as a component of annual net periodic benefit cost. Unrecognized actuarial gains or losses that exceed 10% of the projected benefit obligation are amortized on a straight-line basis over the average remaining service life of active employees for the Cincinnati pension and bargained postretirement plans (approximately 8 - 12 ) and average life expectancy of retirees for the Cincinnati management postretirement plan (approximately 15 years). The accumulated gains or losses associated with the Hawaii plans do not exceed the corridor requiring amortization. |
Business Combinations | Business Combinations — In accounting for business combinations, we apply the accounting requirements of FASB ASC 805, “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. The Company utilizes management estimates and an independent third-party valuation firm to assist in determining the fair values of acquired assets and assumed liabilities. In developing estimates of the fair value of net assets, the Company 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. The Company reports in its consolidated financial statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period. |
Fair Value Measurements | Fair Value Measurements — Fair value of financial and non-financial assets and liabilities is defined as the price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is utilized to measure certain investments on a recurring basis. Fair value measurements are also utilized to determine the initial value of assets and liabilities acquired in a business combination, to perform impairment tests, and for disclosure purposes. Management uses quoted market prices and observable inputs to the maximum extent possible when measuring fair value. In the absence of quoted market prices or observable inputs, fair value is determined using valuation models that incorporate assumptions that a market participant would use in pricing the asset or liability. Fair value measurements are classified within one of three levels, which prioritize the inputs used in the methodologies of measuring fair value for assets and liabilities, as follows: Level 1 — Quoted market prices for identical instruments in an active market; Level 2 — Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs); and Level 3 — Unobservable inputs that reflect management's determination of assumptions that market participants would use in pricing the asset or liability. These inputs are developed based on the best information available, including our own data. The determination of where an asset or liability falls in the hierarchy requires significant judgment. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions — The financial position of foreign subsidiaries is translated at the exchange rates in effect at the end of the period, while revenues and expenses are translated at average rates of exchange during the period. Gains or losses from translation of foreign operations where the local currency is the functional currency are included as components of accumulated other comprehensive income. Gains and losses arising from foreign currency transactions are recorded in "Other (income) expense, net" in the period incurred. |
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. |
Fair Value of Financial Instruments | The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at December 31, 2018 and December 31, 2017 , which is considered Level 2 of the fair value hierarchy. The fair value of other financing arrangements was calculated using a discounted cash flow model that incorporates current borrowing rates for obligations of similar duration, which is considered Level 3 of the fair value hierarchy. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | (dollars in millions) 2019 $ 2.6 2020 2.6 2021 2.5 2022 2.6 2023 2.5 Thereafter 26.9 |
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 9.9 1.9 11.8 7.9 1.7 9.6 17.8 3.6 21.4 Amortization (12.9 ) (1.4 ) (14.3 ) (6.5 ) (1.0 ) (7.5 ) (19.4 ) (2.4 ) (21.8 ) Balance as of December 31, 2018 14.5 2.5 17.0 13.0 2.0 15.0 27.5 4.5 32.0 |
Disaggregation of Revenue [Table Text Block] | The following table presents revenues disaggregated by contract type. Year ended December 31, (dollars in millions) 2018 2017 2016 Entertainment and Communications Products and services transferred at a point in time $ 25.3 $ 20.6 $ 23.2 Products and services transferred over time 805.8 664.3 647.1 Intersegment revenue 22.3 21.2 21.0 Total Entertainment and Communications 853.4 706.1 691.3 IT Services and Hardware Products and services transferred at a point in time 142.9 $ 80.8 $ 54.9 Products and services transferred over time 404.2 300.0 292.4 Intersegment revenue 3.8 4.3 5.4 Total IT Services and Hardware 550.9 385.1 352.7 Total Revenue Total products and services transferred at a point in time 168.2 101.4 78.1 Total products and services transferred over time 1,210.0 964.3 939.5 Total revenue $ 1,378.2 $ 1,065.7 $ 1,017.6 The following table presents revenues disaggregated by product and service lines. Year ended December 31, (dollars in millions) 2018 2017 2016 Data $ 402.6 $ 344.5 $ 333.0 Video 183.3 148.9 125.6 Voice 244.9 199.0 217.9 Other 22.6 13.7 14.8 Total Entertainment and Communications 853.4 706.1 691.3 Consulting 165.3 89.3 86.7 Cloud 98.0 81.0 85.5 Communications 178.5 160.6 144.3 Infrastructure Solutions 109.1 54.2 36.2 Total IT Services and Hardware 550.9 385.1 352.7 Intersegment revenue (26.1 ) (25.5 ) (26.4 ) Total revenue $ 1,378.2 $ 1,065.7 $ 1,017.6 |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price for OnX and Hawaiian Telcom have been currently allocated to individual assets acquired and liabilities assumed as follows: (dollars in millions) Hawaiian Telcom OnX Assets acquired Cash $ 4.3 $ 6.5 Receivables 25.5 69.9 Inventory, materials and supplies 6.9 9.0 Prepaid expenses and other current assets 5.9 2.8 Property, plant and equipment 701.5 11.6 Goodwill 8.8 133.1 Intangible assets 52.0 134.0 Deferred income tax asset 43.6 1.4 Other noncurrent assets 2.1 1.8 Total assets acquired 850.6 370.1 Liabilities assumed Accounts payable 58.0 63.6 Current portion of long-term debt 10.2 1.3 Unearned revenue and customer deposits 13.5 — Accrued expenses and other current liabilities 21.7 18.3 Deferred income tax liabilities — 42.3 Long-term debt, less current portion 304.5 76.7 Pension and postretirement benefit obligations 68.9 — Other noncurrent liabilities 34.3 1.5 Total liabilities assumed 511.1 203.7 Net assets acquired $ 339.5 $ 166.4 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The estimated fair value of identifiable intangible assets and their estimated useful lives are as follows: Hawaiian Telcom OnX (dollars in millions) Fair Value Useful Lives Fair Value Useful Lives Customer relationships $ 26.0 15 years $ 108.0 15 years Trade name 26.0 15 years 16.0 10 years Technology — — 10.0 10 years Total identifiable intangible assets $ 52.0 $ 134.0 |
Business Acquisition, Pro Forma Information | The following table provides the unaudited pro forma results of operations for the year ended 2018, 2017 and 2016 as if the acquisitions of OnX and Hawaiian Telcom had taken place as of the beginning of fiscal year 2016 and 2017, respectively. These proforma results include adjustments related to the financing of the acquisitions, an increase to depreciation and amortization associated with the higher values of property, plant and equipment and intangible assets, an increase to interest expense for the additional debt incurred to complete the acquisitions, and reflects the related income tax effect and change in tax status. 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. ASC 606 was not applied to the year ended December 31, 2017 for Hawaiian Telcom results because they utilized the modified retrospective method of adoption. Reported amounts for 2017 could be materially different if Hawaiian Telcom had adopted the standard using the full retrospective method of adoption. The pro forma information does not necessarily reflect the actual results of operations had the acquisitions 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 acquisitions or (ii) transaction or integration costs relating to the acquisitions. Year Ended December 31, (dollars in millions, except per share amounts) 2018 2017 2016 Revenue $ 1,556.5 $ 1,588.5 $ 1,767.5 Net (loss) income applicable to common shareholders (77.7 ) (84.6 ) 91.7 Earnings per share: Basic and diluted (loss) earnings per common share (1.55 ) (1.70 ) 2.18 |
Hawaiian Telcom Holdco, Inc. [Member] | |
Business Acquisition [Line Items] | |
Business Combination Schedule of Consideration | The purchase price for Hawaiian Telcom consisted of the following: (dollars in millions) Cash consideration plus debt assumed $ 536.5 Cincinnati Bell Inc. stock issued 121.2 Debt repayment (318.2 ) Total purchase price $ 339.5 |
OnX Holdings LLC [Member] | |
Business Acquisition [Line Items] | |
Business Combination Schedule of Consideration | 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 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Earnings Per Common Share, Basic and Diluted [Line Items] | |||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table shows the computation of basic and diluted EPS: Year Ended December 31, 2018 (in millions, except per share amounts) Continuing Operations Discontinued Operations Total Numerator: Net loss $ (69.8 ) $ — $ (69.8 ) Preferred stock dividends 10.4 — 10.4 Net loss applicable to common shareowners - basic and diluted $ (80.2 ) $ — $ (80.2 ) Denominator: Weighted-average common shares outstanding - basic 46.3 — 46.3 Stock-based compensation arrangements — — — Weighted-average common shares outstanding - diluted 46.3 — 46.3 Basic and diluted loss per common share $ (1.73 ) $ — $ (1.73 ) | Year Ended December 31, 2017 (in millions, except per share amounts) Continuing Operations Discontinued Operations Total Numerator: Net income $ 40.0 $ — $ 40.0 Preferred stock dividends 10.4 — 10.4 Net income applicable to common shareowners - basic and diluted $ 29.6 $ — $ 29.6 Denominator: Weighted-average common shares outstanding - basic 42.2 — 42.2 Stock-based compensation arrangements 0.2 — 0.2 Weighted-average common shares outstanding - diluted 42.4 — 42.4 Basic and diluted earnings per common share $ 0.70 $ — $ 0.70 | Year Ended December 31, 2016 (in millions, except per share amounts) Continuing Operations Discontinued Operations Total Numerator: Net income $ 102.7 $ 0.3 $ 103.0 Preferred stock dividends 10.4 — 10.4 Net income applicable to common shareowners - basic and diluted $ 92.3 $ 0.3 $ 92.6 Denominator: Weighted-average common shares outstanding - basic 42.0 42.0 42.0 Stock-based compensation arrangements 0.1 0.1 0.1 Weighted-average common shares outstanding - diluted 42.1 42.1 42.1 Basic and diluted earnings per common share $ 2.19 $ 0.01 $ 2.20 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment is comprised of the following: December 31, Depreciable Lives (Years) (dollars in millions) 2018 2017 Land and rights-of-way $ 117.2 $ 4.3 20 - Indefinite Buildings and leasehold improvements 305.2 179.1 5 - 40 Network equipment 3,913.3 3,339.4 2 - 50 Office software, furniture, fixtures and vehicles 216.3 162.5 2 - 14 Construction in process 47.1 14.7 n/a Gross value 4,599.1 3,700.0 Accumulated depreciation (2,755.1 ) (2,571.0 ) Property, plant and equipment, net $ 1,844.0 $ 1,129.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |
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 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 (dollars in millions) Goodwill, beginning balance $ 148.8 $ 12.1 $ 2.2 $ 2.2 $ 151.0 $ 14.3 Activity during the year Adjustments to prior year acquisitions 0.7 — — — 0.7 — Acquisitions — 137.0 8.8 — 8.8 137.0 Currency translations (3.5 ) (0.3 ) — — (3.5 ) (0.3 ) Goodwill, ending balance $ 146.0 $ 148.8 $ 11.0 $ 2.2 $ 157.0 $ 151.0 |
Schedule of Finite-Lived Intangible Assets by Major Class [Table Text Block] | The Company’s intangible assets consisted of the following: December 31, 2018 December 31, 2017 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount (a) Amortization Amount Amount (a) Amortization Amount Customer relationships $ 139.4 $ (17.8 ) $ 121.6 $ 116.0 $ (8.9 ) $ 107.1 Trade names 40.7 (2.8 ) 37.9 15.9 (0.4 ) 15.5 Technology 9.9 (1.3 ) 8.6 9.9 (0.2 ) 9.7 Total $ 190.0 $ (21.9 ) $ 168.1 $ 141.8 $ (9.5 ) $ 132.3 (a) Change in gross carrying amounts is due to foreign currency translation on intangible assets related to OnX and intangible assets acquired in conjunction with the acquisition of Hawaiian Telcom. See Note 4 for further information. |
Finite-Lived Intangible Assets, Tabular Disclosure of Estimated Useful Lives [Table Text Block] | The estimated useful lives for each intangible asset class are as follows: Customer relationships 8 to 15 years Trade names 10 to 15 years Technology 10 years |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The annual estimated amortization expense for future years is as follows: (dollars in millions) 2019 $ 14.6 2020 14.3 2021 14.1 2022 13.8 2023 13.5 Thereafter 97.8 Total $ 168.1 |
Debt and Other Finacing Arrange
Debt and Other Finacing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments | The Company’s debt consists of the following: 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 Other financing arrangements 0.8 — Capital lease obligations 13.4 12.4 Current portion of long-term debt 20.2 18.4 Long-term debt, less current portion: Receivables Facility 176.6 — Credit Agreement - Revolving Credit Facility 18.0 — Credit Agreement - Tranche B Term Loan due 2024 592.5 594.0 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 Various Cincinnati Bell Telephone notes 87.9 87.9 Other financing arrangements 2.3 — Capital lease obligations 60.5 70.5 1,935.1 1,749.7 Net unamortized premium 1.7 1.9 Unamortized note issuance costs (27.2 ) (22.3 ) Long-term debt, less current portion 1,909.6 1,729.3 Total debt $ 1,929.8 $ 1,747.7 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The following table summarizes our annual principal maturities of debt, other financing arrangements and capital leases for the five years subsequent to December 31, 2018 , and thereafter: Other Capital Total (dollars in millions) Debt financing arrangements leases debt Year ended December 31, 2019 $ 6.0 $ 0.8 $ 13.4 $ 20.2 2020 6.0 1.1 10.5 17.6 2021 182.6 1.1 7.1 190.8 2022 24.0 0.1 5.0 29.1 2023 28.3 — 3.8 32.1 Thereafter 1,631.4 — 34.1 1,665.5 1,878.3 3.1 73.9 1,955.3 Net unamortized premium 1.7 — — 1.7 Unamortized note issuance costs (27.2 ) — — (27.2 ) Total debt $ 1,852.8 $ 3.1 $ 73.9 $ 1,929.8 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At December 31, 2018 , total future minimum lease payments required under operating leases having initial or remaining non-cancellable lease terms the next five years and thereafter are as follows: (dollars in millions) 2019 $ 10.9 2020 9.4 2021 6.1 2022 4.5 2023 3.9 Thereafter 23.7 Total $ 58.5 |
Finance Lease, Liability, Maturity [Table Text Block] | The future minimum payments under the base agreements, as well as the renewal options for each lease which the Company expects to exercise, are as follows: (dollars in millions) 2019 $ 0.8 2020 0.8 2021 3.5 2022 5.8 2023 5.8 Thereafter 58.8 Total minimum financing obligation payments $ 75.5 |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | December 31, (dollars in millions) 2018 2017 Balance, beginning of period $ 2.3 $ 1.8 Hawaiian Telcom opening balance sheet adjustment 6.6 — Liabilities incurred — 0.4 Liabilities settled (0.1 ) — Accretion expense 0.3 0.1 Balance, end of period $ 9.1 $ 2.3 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | As of December 31, 2018, the fair value of the interest rate swap liability was $5.0 million and is recorded in the Consolidated Balance Sheets as of December 31, 2018 as follows: December 31, 2018 (dollars in millions) Balance Sheet Location December 31, 2018 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Liabilities: Interest Rate Swap Other noncurrent liabilities $ 3.8 $ — $ 3.8 $ — Interest Rate Swap Other current liabilities $ 1.2 $ — $ 1.2 $ — |
Amount of gains recognized in accumulated other comprehensive income net of reclassification into earnings [Table Text Block] | The amount of losses recognized in Accumulated Other Comprehensive Income ("AOCI") net of reclassifications into earnings is as follows: Year Ended December 31, (dollars in millions) 2018 Interest Rate Swap $ (5.0 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The amount of losses reclassified from AOCI into earnings is as follows: Year Ended December 31, (dollars in millions) Statement of Operations Location 2018 Interest Rate Swap Interest Expense $ (1.2 ) |
Fair Value, by Balance Sheet Grouping | The carrying and fair values of these items are as follows: December 31, 2018 December 31, 2017 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,880.0 $ 1,673.6 $ 1,687.1 $ 1,687.5 Other financing arrangements 44.6 43.6 — — *Excludes capital leases and note issuance costs |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | During 2017, the following assets were remeasured at fair value in connection with impairment tests: Fair Value Measurements Using (dollars in millions) Year Ended December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impairment Losses Equity method investment: Equity method investment — — — — $ (4.7 ) Impairment of equity method investment $ (4.7 ) |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | Pension and postretirement benefit costs for these plans were comprised of: Pension Benefits Postretirement and Other Benefits (dollars in millions) 2018 2017 2016 2018 2017 2016 Service cost $ — $ — $ — $ 0.6 $ 0.2 $ 0.3 Interest cost on projected benefit obligation 20.0 19.4 19.3 4.2 3.2 3.3 Expected return on plan assets (29.8 ) (26.0 ) (27.3 ) — — — Amortization of: Prior service cost (benefit) — — 0.1 (3.1 ) (4.5 ) (14.7 ) Actuarial loss 17.0 17.5 19.1 4.1 4.7 4.9 Pension settlement charges 0.1 4.0 — — — — Pension/postretirement cost (benefit) $ 7.3 $ 14.9 $ 11.2 $ 5.8 $ 3.6 $ (6.2 ) |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | Changes in the plans' benefit obligations and funded status are as follows: Postretirement and Other Benefits Pension Benefits (dollars in millions) 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at January 1, $ 489.2 $ 505.6 $ 98.6 $ 82.6 Hawaiian Telcom opening balance sheet adjustment 184.1 — 51.2 — Service cost — — 0.6 0.2 Interest cost 20.0 19.4 4.2 3.2 Actuarial (gain) loss (39.9 ) 28.1 (20.3 ) 7.6 Benefits paid (43.0 ) (38.6 ) (13.1 ) (11.6 ) Retiree drug subsidy received — — 0.3 0.2 Transfer of special death benefit — (14.0 ) — 14.0 Settlements (3.6 ) (11.3 ) — — Other — — 2.2 2.4 Benefit obligation at December 31, $ 606.8 $ 489.2 $ 123.7 $ 98.6 Change in plan assets: Fair value of plan assets at January 1, $ 392.1 $ 372.3 $ 7.5 $ 8.7 Hawaiian Telcom opening balance sheet adjustment 163.0 — — — Actual (loss) return on plan assets (37.7 ) 64.8 0.3 0.2 Employer contributions 11.6 4.6 10.8 10.0 Retiree drug subsidy received — — 0.3 0.2 Benefits paid (43.0 ) (38.6 ) (13.1 ) (11.6 ) Settlements (3.6 ) (11.0 ) — — Fair value of plan assets at December 31, 482.4 392.1 5.8 7.5 Unfunded status $ (124.4 ) $ (97.1 ) $ (117.9 ) $ (91.1 ) |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | A one-percentage point change in assumed healthcare cost trend rates would have the following effect on the postretirement benefit costs and obligation: (dollars in millions) 1% Increase 1% Decrease Service and interest costs for 2018 $ 0.1 $ (0.1 ) Postretirement benefit obligation at December 31, 2018 1.8 (1.7 ) |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | The projected benefit obligation is recognized in the Consolidated Balance Sheets as follows: Pension Benefits Postretirement and Other Benefits December 31, December 31, (dollars in millions) 2018 2017 2018 2017 Accrued payroll and benefits (current liability) $ 2.1 $ 2.1 $ 11.0 $ 10.5 Pension and postretirement benefit obligations (noncurrent liability) 122.3 95.0 106.9 80.6 Total $ 124.4 $ 97.1 $ 117.9 $ 91.1 |
Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block] | Amounts recognized in "Accumulated other comprehensive loss" in the Consolidated Balance Sheets which have not yet been recognized in net pension costs consisted of the following: Pension Benefits Postretirement and Other Benefits December 31, December 31, (dollars in millions) 2018 2017 2018 2017 Prior service (cost) benefit, net of tax of ($0.1), ($0.1), $4.6, $5.3 $ (0.1 ) $ (0.1 ) $ 17.5 $ 19.9 Actuarial loss, net of tax of ($45.0), ($42.5), ($7.1), ($12.7) (156.3 ) (148.4 ) (25.6 ) (44.5 ) Total $ (156.4 ) $ (148.5 ) $ (8.1 ) $ (24.6 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Amounts recognized in "Accumulated other comprehensive loss" on the Consolidated Statements of Shareowners’ Deficit and the Consolidated Statements of Comprehensive Income are shown below: Pension Benefits Postretirement and Other Benefits (dollars in millions) 2018 2017 2018 2017 Prior service cost recognized: Reclassification adjustments $ — $ — $ (3.1 ) $ (4.5 ) Actuarial (loss) gain recognized: Reclassification adjustments 17.1 21.5 4.1 4.7 Actuarial (loss) gain arising during the period (27.7 ) 11.0 20.4 (7.4 ) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block] | The following amounts currently included in "Accumulated other comprehensive loss" are expected to be recognized in 2019 as a component of net periodic pension and postretirement cost: Pension Benefits Postretirement and Other Benefits (dollars in millions) Prior service benefit $ — $ (2.5 ) Actuarial loss 13.9 1.9 Total $ 13.9 $ (0.6 ) |
Schedule of Allocation of Plan Assets [Table Text Block] | The fair values of the pension plan assets at December 31, 2018 and 2017 by asset category are as follows: (dollars in millions) December 31, 2018 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant Mutual funds U.S. equity index funds $ 165.0 $ 107.2 $ 57.8 $ — International equity index funds 127.2 100.7 26.5 — Fixed income bond funds 183.0 119.3 63.7 — Fixed income short-term money market funds 7.2 0.1 7.1 — Group insurance contract 5.8 — — — Total $ 488.2 $ 327.3 $ 155.1 $ — (dollars in millions) December 31, 2017 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Mutual funds U.S. equity index funds $ 151.0 $ 151.0 $ — $ — International equity index funds 101.3 101.3 — — Fixed income bond funds 136.1 136.1 — — Fixed income short-term money market funds 3.7 3.7 — — Group insurance contract 7.5 — — — Total $ 399.6 $ 392.1 $ — $ — |
Schedule of Expected Benefit Payments [Table Text Block] | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years: (dollars in millions) Pension Benefits Postretirement and Other Benefits Medicare Subsidy Receipts 2019 $ 77.3 $ 11.5 $ (0.4 ) 2020 51.3 10.7 (0.4 ) 2021 50.1 10.4 (0.3 ) 2022 47.9 10.0 (0.3 ) 2023 46.3 9.5 (0.3 ) Years 2024 - 2028 196.5 41.8 (1.0 ) |
Cincinnati Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Health Care Cost Trend Rates [Table Text Block] | The assumed healthcare cost trend rate used to measure the postretirement health benefit obligation is shown below: Cincinnati Plans December 31, 2018 2017 Healthcare cost trend 6.5 % 6.5 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 4.5 % 4.5 % Year the rates reach the ultimate trend rate 2023 2022 |
Cincinnati Plans [Member] | Net Periodic Cost | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used [Table Text Block] | The following are the weighted-average assumptions used in measuring the net periodic cost of the pension and postretirement benefits: Cincinnati Plans Pension Benefits Postretirement and Other Benefits 2018 2017 2016 2018 2017 2016 Discount rate 3.60 % 4.10 % 3.80 % 3.60 % 4.00 % 3.70 % Expected long-term rate of return 7.00 % 7.25 % 7.50 % — — — Future compensation growth rate — — — — — — |
Cincinnati Plans [Member] | Projected Benefit Obligation | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used [Table Text Block] | The following are the weighted-average assumptions used in accounting for and measuring the projected benefit obligations: Cincinnati Plans Pension Benefits Postretirement and Other Benefits December 31, December 31, 2018 2017 2018 2017 Discount rate 4.20 % 3.60 % 4.30 % 3.60 % Future compensation growth rate — — — — |
Hawaii Plans [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Health Care Cost Trend Rates [Table Text Block] | Hawaii Plans December 31, 2018 Healthcare cost trend 6.8 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 5.0 % Year the rates reach the ultimate trend rate 2026 |
Hawaii Plans [Member] | Net Periodic Cost | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used [Table Text Block] | Hawaii Plans Pension Benefits Postretirement and Other Benefits 2018 2018 Discount rate 4.10 % 4.20 % Expected long-term rate of return 7.00 % — Future compensation growth rate — — |
Hawaii Plans [Member] | Projected Benefit Obligation | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Assumptions Used [Table Text Block] | Hawaii Plans Pension Benefits Postretirement and Other Benefits December 31, December 31, 2018 2018 Discount rate 4.20 % 4.40 % Future compensation growth rate — — |
Shareowners' Deficit (Tables)
Shareowners' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shareowners' Deficit [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | For the years ended December 31, 2018 and 2017, the changes in accumulated other comprehensive loss by component were as follows: (dollars in millions) Unrecognized Net Periodic Pension and Postretirement Benefit Cost Unrealized gain on Investment in CyrusOne Unrealized Loss on Cash Flow Hedge Foreign Currency Translation Loss Total Balance as of December 31, 2016 $ (157.6 ) $ 68.1 $ — $ (0.8 ) $ (90.3 ) Remeasurement of benefit obligations 2.8 — — — 2.8 Unrealized gain on Investment in CyrusOne, net — 8.3 (a) — — 8.3 Reclassifications, net 13.9 (b) (76.4 ) (c) — — (62.5 ) Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform (32.2 ) (d) — — — (32.2 ) Foreign currency gain — — — 0.2 0.2 Balance as of December 31, 2017 $ (173.1 ) $ — $ — $ (0.6 ) $ (173.7 ) Remeasurement of benefit obligations (5.5 ) — — — (5.5 ) Reclassifications, net 14.1 (b) — 0.9 (e) — 15.0 Unrealized loss on cash flow hedge arising during the period, net — — (4.8 ) (f) — (4.8 ) Foreign currency loss — — — (6.5 ) (6.5 ) Balance as of December 31, 2018 $ (164.5 ) $ — $ (3.9 ) $ (7.1 ) $ (175.5 ) (a) The unrealized gain on Investment in CyrusOne, net of tax, represents changes in the fair value of CyrusOne shares of common stock owned by the Company during the period, before any subsequent sales of those shares. (b) 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 and pension settlement charges, net of tax. 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 Consolidated Statements of Operations. See Note 11 for further disclosures. (c) These reclassifications are reported within "Gain on sale of CyrusOne investment" on the Consolidated Statements of Operations. (d) This reclassification adjustment resulted from a change in the corporate tax rate arising from tax legislation enacted in December 2017, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). In February 2018, the FASB issued ASU 2018-02 which allows entities to make a one-time reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from newly enacted corporate tax rates. The Company early adopted the guidance effective December 31, 2017. 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. (e) These reclassifications are reported within "Interest expense" on the Consolidated Statements of Operations when the hedged transactions impact earnings. (f) The unrealized loss on cash flow hedge represents the change in the fair value of the derivative instrument that occurred during the period, net of tax. This unrealized loss is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Consolidated Balance Sheets. See Note 10 for further disclosures. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Provision (Benefit) Charged to Continuing Operations, Accumulated Other Comprehensive Income (Loss) or Additional Paid-In Capital [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Income tax expense for continuing operations consisted of the following: Year Ended December 31, (dollars in millions) 2018 2017 2016 Current: Federal $ (0.6 ) $ (14.8 ) $ (14.0 ) State and local 0.9 1.0 0.5 Foreign 1.6 — — Total current 1.9 (13.8 ) (13.5 ) Investment tax credits (0.1 ) (0.1 ) (0.1 ) Deferred: Federal (10.2 ) 47.1 73.2 State and local 5.7 2.3 5.7 Foreign (1.0 ) 0.4 — Total deferred (5.5 ) 49.8 78.9 Valuation allowance 13.1 (9.2 ) (3.6 ) Total $ 9.4 $ 26.7 $ 61.7 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following is a reconciliation of the statutory federal income tax rate with the effective tax rate for each year: Year Ended December 31, 2018 2017 2016 U.S. federal statutory rate 21.0 % 35.0 % 35.0 % State and local income taxes, net of federal income tax 1.4 0.7 0.2 Change in valuation allowance, net of federal income tax (21.8 ) (9.1 ) (1.4 ) State net operating loss adjustments (10.1 ) 2.0 0.9 Federal rate change — 3.5 — Transaction costs (3.1 ) 5.5 — Non-Deductible Meals and Entertainment (1.8 ) 1.3 0.4 Unrecognized tax benefit changes — 1.4 2.3 Other differences, net (1.1 ) (0.2 ) 0.1 Effective tax rate (15.5 )% 40.1 % 37.5 % |
Schedule of income tax provision charged to continuing operations, accumulated other comprehensive income (loss) or additional paid-in capital [Table Text Block] | The income tax provision (benefit) was charged to continuing operations, accumulated other comprehensive income (loss) or additional paid-in capital as follows: Year Ended December 31, (dollars in millions) 2018 2017 2016 Income tax provision (benefit) related to: Continuing operations $ 9.4 $ 26.7 $ 61.7 Accumulated other comprehensive income (loss) 1.3 (28.3 ) 43.8 Excess tax benefits on stock option exercises — — 0.1 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The components of our deferred tax assets and liabilities were as follows: December 31, (dollars in millions) 2018 2017 Deferred tax assets: Net operating loss carryforwards $ 184.0 $ 88.9 Pension and postretirement benefits 55.0 46.1 Employee benefits 10.3 7.9 Interest limitation 15.3 — Texas Margin Credit 12.2 10.5 Other 25.6 9.3 Total deferred tax assets 302.4 162.7 Valuation allowance (58.2 ) (45.5 ) Total deferred tax assets, net of valuation allowance $ 244.2 $ 117.2 Deferred tax liabilities: Property, plant and equipment $ 196.1 $ 115.9 Other 12.0 0.3 Total deferred tax liabilities 208.1 116.2 Net deferred tax assets $ 36.1 $ 1.0 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, (dollars in millions) 2018 2017 2016 Balance, beginning of year $ 22.2 $ 31.4 $ 27.6 Change in tax positions for the current year — 1.0 1.2 Change in tax positions for prior years (0.2 ) 0.3 2.6 Change related to decrease in federal tax rate — (10.5 ) — Balance, end of year $ 22.0 $ 22.2 $ 31.4 |
Stock-Based and Deferred Comp_2
Stock-Based and Deferred Compensation Plans Stock Option & SARS activity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity [Table Text Block] | The following table summarizes stock options and stock appreciation rights activity: 2018 2017 2016 Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share (in thousands, except per share amounts) Shares Shares Shares Outstanding at January 1, 181 $ 17.10 390 $ 20.00 776 $ 19.27 Exercised (19 ) 8.68 (35 ) 15.76 (236 ) 16.12 Forfeited (9 ) 17.05 (35 ) 21.58 (11 ) 16.16 Expired (2 ) 8.35 (139 ) 24.55 (139 ) 22.79 Outstanding at December 31, 151 $ 18.29 181 $ 17.10 390 $ 20.00 Expected to vest at December 31, 151 $ 18.29 181 $ 17.10 390 $ 20.00 Exercisable at December 31, 151 $ 18.29 181 $ 17.10 330 $ 20.56 (dollars in millions) Compensation expense for the year $ — $ 0.2 $ 0.4 Tax benefit related to compensation expense $ — $ (0.1 ) $ (0.1 ) Intrinsic value of awards exercised $ 0.1 $ 0.2 $ 1.8 Cash received from awards exercised $ 0.2 $ 0.5 $ 3.8 Grant date fair value of awards vested $ — $ 0.3 $ 0.5 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes our outstanding and exercisable awards at December 31, 2018 : Outstanding Exercisable Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share (in thousands, except per share amounts) Shares Shares Range of Grant Price $14.55 to $17.05 123 $ 17.04 123 $ 17.04 $23.75 to $26.05 28 23.83 28 23.83 Total 151 $ 18.29 151 $ 18.29 |
Performance Based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Share Activity [Table Text Block] | The following table summarizes our outstanding performance-based restricted award activity: 2018 2017 2016 Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share (in thousands, except per share amounts) Shares Shares Shares Non-vested at January 1, 871 $ 17.30 954 $ 15.89 721 $ 16.77 Granted* 288 17.60 245 22.03 307 15.45 Vested (308 ) 15.45 (229 ) 16.74 (51 ) 22.75 Forfeited (159 ) 15.45 (99 ) 16.62 (23 ) 22.35 Non-vested at December 31, 692 $ 18.67 871 $ 17.30 954 $ 15.89 (dollars in millions) Compensation expense for the year $ 2.1 $ 3.9 $ 3.6 Tax benefit related to compensation expense $ (0.5 ) $ (1.4 ) $ (1.3 ) Grant date fair value of awards vested $ 4.7 $ 3.8 $ 1.2 * Assumes the maximum number of awards that can be earned if the performance conditions are achieved. |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Share Activity [Table Text Block] | The following table summarizes our time-based restricted award activity: 2018 2017 2016 Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share Weighted- Average Exercise Price Per Share (in thousands, except per share amounts) Shares Shares Shares Non-vested at January 1, 164 $ 18.57 106 $ 16.75 47 $ 19.59 Granted 245 17.05 96 20.78 106 16.75 Awards converted pursuant to Hawaiian Telcom acquisition 149 15.70 — — — — Vested (61 ) 18.08 (38 ) 19.10 (47 ) 19.59 Non-vested at December 31, 497 $ 17.02 164 $ 18.57 106 $ 16.75 (dollars in millions) Compensation expense for the year $ 3.5 $ 1.8 $ 1.1 Tax benefit related to compensation expense $ (0.8 ) $ (0.6 ) $ (0.4 ) Grant date fair value of awards vested $ 1.1 $ 0.7 $ 0.9 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | A summary of activity in the restructuring and severance liability is shown below (dollars in millions) Employee Separation Lease Abandonment Other Total Balance as of December 31, 2015 $ 0.2 $ 0.8 $ 0.1 $ 1.1 Charges/(Reversals) 12.5 (0.5 ) (0.1 ) 11.9 Utilizations (1.7 ) (0.1 ) — (1.8 ) Balance as of December 31, 2016 11.0 0.2 — 11.2 Charges 32.7 — — 32.7 Utilizations (29.3 ) (0.1 ) — (29.4 ) Balance as of December 31, 2017 14.4 0.1 — 14.5 Charges 7.5 0.8 — 8.3 Hawaiian Telcom opening balance sheet adjustment 3.8 — — 3.8 Utilizations (16.2 ) (0.2 ) — (16.4 ) Balance as of December 31, 2018 $ 9.5 $ 0.7 — $ 10.2 |
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, 2015 $ 0.8 $ 0.3 $ — $ 1.1 Charges 7.7 3.3 0.9 11.9 Utilizations (1.0 ) (0.6 ) (0.2 ) (1.8 ) Balance as of December 31, 2016 7.5 3.0 0.7 11.2 Charges 27.6 5.1 — 32.7 Utilizations (22.8 ) (5.9 ) (0.7 ) (29.4 ) Balance as of December 31, 2017 12.3 2.2 — 14.5 Charges 3.1 4.9 0.3 8.3 Hawaiian Telcom opening balance sheet adjustment 3.8 — — 3.8 Utilizations (10.6 ) (5.8 ) — (16.4 ) Balance as of December 31, 2018 $ 8.6 $ 1.3 $ 0.3 10.2 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Our business segment information is as follows: Year Ended December 31, (dollars in millions) 2018 2017 2016 Revenue Entertainment and Communications $ 853.4 $ 706.1 $ 691.3 IT Services and Hardware 550.9 385.1 352.7 Intersegment (26.1 ) (25.5 ) (26.4 ) Total revenue $ 1,378.2 $ 1,065.7 $ 1,017.6 Intersegment revenue Entertainment and Communications $ 22.3 $ 21.2 $ 21.0 IT Services and Hardware 3.8 4.3 5.4 Total intersegment revenue $ 26.1 $ 25.5 $ 26.4 Operating income Entertainment and Communications $ 103.3 $ 86.1 $ 100.1 IT Services and Hardware 17.2 5.3 17.4 Corporate (37.2 ) (36.0 ) (18.7 ) Total operating income $ 83.3 $ 55.4 $ 98.8 Expenditures for long-lived assets* Entertainment and Communications $ 408.0 $ 186.3 $ 260.8 IT Services and Hardware 29.2 191.2 25.4 Corporate 0.2 — 0.2 Total expenditures for long-lived assets $ 437.4 $ 377.5 $ 286.4 Depreciation and amortization Entertainment and Communications $ 210.8 $ 163.7 $ 159.1 IT Services and Hardware 41.0 29.1 23.0 Corporate 0.2 0.2 0.1 Total depreciation and amortization $ 252.0 $ 193.0 $ 182.2 * Includes cost of acquisitions As of December 31, (dollars in millions) 2018 2017 Assets Entertainment and Communications $ 1,898.8 $ 1,111.4 IT Services and Hardware 468.1 482.7 Corporate and eliminations 363.3 593.5 Total assets $ 2,730.2 $ 2,187.6 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information [Table Text Block] | 2018 First Second Third Fourth (in millions, except per common share amounts) Quarter Quarter Quarter Quarter Total Revenue $ 295.7 $ 296.8 $ 386.7 $ 399.0 $ 1,378.2 Operating income 24.2 20.2 14.5 24.4 83.3 Net (loss) (8.3 ) (13.8 ) (17.7 ) (30.0 ) (69.8 ) Basic (loss) earnings per common share $ (0.26 ) $ (0.39 ) $ (0.41 ) $ (0.65 ) $ (1.73 ) Diluted (loss) earnings per common share $ (0.26 ) $ (0.39 ) $ (0.41 ) $ (0.65 ) $ (1.73 ) 2017 First Second Third Fourth (in millions, except per common share amounts) Quarter Quarter Quarter Quarter Total Revenue $ 249.6 $ 259.4 $ 255.5 $ 301.2 $ 1,065.7 Operating (loss) income (1.8 ) 24.4 15.9 16.9 55.4 Net income (loss) 60.6 2.3 (11.0 ) (11.9 ) 40.0 Basic earnings (loss) per common share $ 1.38 $ (0.01 ) $ (0.32 ) $ (0.34 ) $ 0.70 Diluted earnings (loss) per common share $ 1.37 $ (0.01 ) $ (0.32 ) $ (0.34 ) $ 0.70 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Year Ended December 31, (dollars in millions) 2018 2017 2016 Capitalized interest expense $ 1.0 $ 0.7 $ 0.7 Cash paid/(received) for: Interest 131.7 65.7 71.1 Income taxes, net of refunds (13.8 ) (12.9 ) 1.7 Noncash investing and financing activities: Stock consideration for acquisition of Hawaiian Telcom 121.2 — — Accrual of CyrusOne dividends — — 1.1 Acquisition of property by assuming debt and other financing arrangements 51.5 17.3 12.0 Acquisition of property on account 35.8 12.0 23.8 |
Description of Business and A_3
Description of Business and Accounting Policies Description of Business and Accounting Policies (Details) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | |
Description of accounting policies [Line Items] | ||||
Entity Number of Employees | 4,300 | |||
Company Employees Participating in Collective Bargaining Agreement, Percentage | 35.00% | |||
Other Nonoperating Income (Expense) | $ 1.6 | $ (1.4) | $ 7.6 | |
Restricted Cash, Current | $ 0 | 378.7 | ||
Trade Receivables Due From Customers, Range, Minimum | 21 | |||
Trade Receivables Due from Customers, Range, Maximum | 90 | |||
Unbilled Receivables, Current | $ 19 | 14.2 | ||
Factoring Fees | 0.1 | |||
Accounts Receivable Sold | 20 | |||
Available-for-Sale Securities, Shares Sold during the Period | shares | 2.8 | 4.1 | ||
Proceeds from Sale of Available-for-sale Securities, Equity | 0 | 140.7 | $ 189.7 | |
Marketable Securities, Realized Gain (Loss) | $ 117.7 | 0 | 117.7 | 157 |
Other (income) expense, dividend income | $ 6.4 | |||
Cost Method Investments | $ 5.8 | $ 3.8 | ||
Number of customers, exceeds 10% of total revenue | 0 | 0 | 1 | |
Revenue from one customer greater than 10%, percentage | 11.00% | |||
Percent of Revenue from Foreign Subsidiaries | 6.00% | 3.00% | ||
Service Delivery Period, Indefeasible Right of Use Contracts, Upper Range, in Years | 25 | |||
Customer Contract, Maintenance on Telephony Equipment, Lower Range, in Years | 1 | |||
Customer Contract, Maintenance on Telephony Equipment, Upper Range, in Years | 3 | |||
Advertising Expense | $ 14.2 | $ 13.5 | $ 9.5 | |
Regulatory Taxes Included in Revenue | 22.2 | 16.8 | 16.3 | |
Regulatory Taxes Included in Expense | $ 23.4 | $ 17.7 | 17.5 | |
Lower range, in years, of remaining service life of active employees | 8 | |||
Upper range, in years, of remaining service life of active employees | 12 | |||
Other Postretirement Benefits Plan | ||||
Description of accounting policies [Line Items] | ||||
Average life expectancy of retirees, in years | 15 | |||
8% Senior Notes due 2025 [Member] | ||||
Description of accounting policies [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | |||
Discontinued Operations [Member] | ||||
Description of accounting policies [Line Items] | ||||
Other Nonoperating Income (Expense) | 0.3 | |||
Payments for Restructuring | $ 4.4 | |||
Verizon Communications Inc. [Member] | ||||
Description of accounting policies [Line Items] | ||||
Number of customers, exceeds 10% of total accounts receivable | 1 | |||
Accounts Receivable from one customer greater than 10%, percentage | 18.00% | |||
General Electric Company [Member] | ||||
Description of accounting policies [Line Items] | ||||
Number of customers, exceeds 10% of total accounts receivable | 1 | |||
Accounts Receivable from one customer greater than 10%, percentage | 10.00% | |||
IT Services and Hardware [Member] | ||||
Description of accounting policies [Line Items] | ||||
Equity Method Investment, Other than Temporary Impairment | $ 4.7 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2016 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Basic Earnings Per Share | $ 0.11 | $ 0.02 | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $ 0.12 | $ 20,000 | ||||
Capitalized Contract Cost, Net | $ 32.4 | $ 32 | $ 32 | $ 30.6 | ||
Decrease in deferred tax assets, impact of ASC 606 | $ 10.8 | |||||
Defined Benefit Plan, Cost Reclassified, Cost of Services and Products | 6.6 | 1.3 | ||||
Defined Benefit Plan, Cost Reclassified, SG&A costs | 6 | 3 | ||||
Defined Benefit Plan, Cost Reclassified, Other Operating Costs and Expenses | 4 | |||||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | 0 | |||||
Assets (Fulfillment and Acquisition Costs) [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 30.1 | |||||
Sales Revenue, Net [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (222.8) | (168.2) | ||||
Cost of Sales [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (222.8) | (168.2) | ||||
Expense (Fulfillment and Acquisition Costs) [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (0.7) | (1.5) | ||||
Tax Expense [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (4.2) | $ 0.5 | ||||
Minimum [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating Lease, Right-of-Use Asset | $ 35 | |||||
Maximum [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operating Lease, Right-of-Use Asset | $ 45 | |||||
AOCI Attributable to Parent | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | [1] | $ (32.2) | ||||
[1] | Per ASU 2018-02, entities can elect to make a one-time reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from newly enacted corporate tax rates under the Tax Cuts and Jobs Act. The Company elected to make the change and recorded the adjustment in 2017. |
Revenue Revenue Disclosure (Det
Revenue Revenue Disclosure (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Customer Contract, Lower Range, in Years | 1 |
Customer Contract, Upper Range, in Years | 5 |
SEA-US Contract, Lower Range, in Years | 15 |
SEA-US Contract, Upper Range, in Years | 25 |
Payment terms for customers, lower range | 30 |
Payment term for customers, upper range | 180 |
Indefeasible Right of Use, Lower Range, in Years | 15 |
Indefeasible Right of Use, Upper Range, in Years | 25 |
Revenue Method of Adoption (Det
Revenue Method of Adoption (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Jan. 01, 2016 | |
Revenue from Contract with Customer [Abstract] | ||||
Adjustment to revenue and cost of services and products for adoption of ASC 606 | $ 222.8 | $ 168.2 | ||
Capitalized Contract Cost, Net, Incremental Assets Related to Fulfillment and Acquisition Costs | $ 30.1 | |||
Capitalized Contract Cost, Net | $ 32.4 | $ 32 | $ 32 | $ 30.6 |
Revenue Performance Obligation
Revenue Performance Obligation (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
2,019 | $ 2.6 |
2,020 | 2.6 |
2,021 | 2.5 |
2,022 | 2.6 |
2,023 | 2.5 |
Thereafter | 26.9 |
Total | $ 39.7 |
Revenue, Remaining Performance Obligation, Percentage | 80.00% |
Indefeasible Right of Use Contract, in Years | 30 |
Revenue Contract Balances (Deta
Revenue Contract Balances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net, Beginning Balance | $ 32.4 | $ 32 | $ 30.6 |
Capitalized Contract Cost, Additions | 21.4 | 23.2 | 23.6 |
Capitalized Contract Cost, Amortization | (21.8) | (22.8) | (22.2) |
Capitalized Contract Cost, Net, Ending Balance | 32 | 32.4 | 32 |
Contract with Customer, Liability, Current | 1.4 | ||
Contract with Customer, Liability, Noncurrent | 28 | ||
Fulfillment Costs [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net, Beginning Balance | 19.5 | 18.6 | 16.5 |
Capitalized Contract Cost, Additions | 11.8 | 15.3 | 15.6 |
Capitalized Contract Cost, Amortization | (14.3) | (14.4) | (13.5) |
Capitalized Contract Cost, Net, Ending Balance | 17 | 19.5 | 18.6 |
Cost of Acquisition [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net, Beginning Balance | 12.9 | 13.4 | 14.1 |
Capitalized Contract Cost, Additions | 9.6 | 7.9 | 8 |
Capitalized Contract Cost, Amortization | (7.5) | (8.4) | (8.7) |
Capitalized Contract Cost, Net, Ending Balance | 15 | 12.9 | 13.4 |
Entertainment and Communications [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net, Beginning Balance | 29.1 | 29.1 | 27.7 |
Capitalized Contract Cost, Additions | 17.8 | 20.5 | 21.8 |
Capitalized Contract Cost, Amortization | (19.4) | (20.5) | (20.4) |
Capitalized Contract Cost, Net, Ending Balance | 27.5 | 29.1 | 29.1 |
Entertainment and Communications [Member] | Fulfillment Costs [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net, Beginning Balance | 17.5 | 17 | 15 |
Capitalized Contract Cost, Additions | 9.9 | 13.7 | 14.5 |
Capitalized Contract Cost, Amortization | (12.9) | (13.2) | (12.5) |
Capitalized Contract Cost, Net, Ending Balance | 14.5 | 17.5 | 17 |
Entertainment and Communications [Member] | Cost of Acquisition [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net, Beginning Balance | 11.6 | 12.1 | 12.7 |
Capitalized Contract Cost, Additions | 7.9 | 6.8 | 7.3 |
Capitalized Contract Cost, Amortization | (6.5) | (7.3) | (7.9) |
Capitalized Contract Cost, Net, Ending Balance | 13 | 11.6 | 12.1 |
IT Services and Hardware [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net, Beginning Balance | 3.3 | 2.9 | 2.9 |
Capitalized Contract Cost, Additions | 3.6 | 2.7 | 1.8 |
Capitalized Contract Cost, Amortization | (2.4) | (2.3) | (1.8) |
Capitalized Contract Cost, Net, Ending Balance | 4.5 | 3.3 | 2.9 |
IT Services and Hardware [Member] | Fulfillment Costs [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net, Beginning Balance | 2 | 1.6 | 1.5 |
Capitalized Contract Cost, Additions | 1.9 | 1.6 | 1.1 |
Capitalized Contract Cost, Amortization | (1.4) | (1.2) | (1) |
Capitalized Contract Cost, Net, Ending Balance | 2.5 | 2 | 1.6 |
IT Services and Hardware [Member] | Cost of Acquisition [Member] | |||
Capitalized Contract Cost [Line Items] | |||
Capitalized Contract Cost, Net, Beginning Balance | 1.3 | 1.3 | 1.4 |
Capitalized Contract Cost, Additions | 1.7 | 1.1 | 0.7 |
Capitalized Contract Cost, Amortization | (1) | (1.1) | (0.8) |
Capitalized Contract Cost, Net, Ending Balance | $ 2 | $ 1.3 | $ 1.3 |
Revenue Disaggregated Revenue (
Revenue Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 399 | $ 386.7 | $ 296.8 | $ 295.7 | $ 301.2 | $ 255.5 | $ 259.4 | $ 249.6 | $ 1,378.2 | $ 1,065.7 | $ 1,017.6 |
Transferred at Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 168.2 | 101.4 | 78.1 | ||||||||
Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 1,210 | 964.3 | 939.5 | ||||||||
Data [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 402.6 | 344.5 | 333 | ||||||||
Video [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 183.3 | 148.9 | 125.6 | ||||||||
Voice [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 244.9 | 199 | 217.9 | ||||||||
Other [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 22.6 | 13.7 | 14.8 | ||||||||
Consulting [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 165.3 | 89.3 | 86.7 | ||||||||
Cloud [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 98 | 81 | 85.5 | ||||||||
Communications [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 178.5 | 160.6 | 144.3 | ||||||||
Infrastructure Solutions [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 109.1 | 54.2 | 36.2 | ||||||||
Entertainment and Communications [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 853.4 | 706.1 | 691.3 | ||||||||
Entertainment and Communications [Member] | Transferred at Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 25.3 | 20.6 | 23.2 | ||||||||
Entertainment and Communications [Member] | Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 805.8 | 664.3 | 647.1 | ||||||||
IT Services and Hardware [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 550.9 | 385.1 | 352.7 | ||||||||
IT Services and Hardware [Member] | Transferred at Point in Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 142.9 | 80.8 | 54.9 | ||||||||
IT Services and Hardware [Member] | Transferred over Time [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 404.2 | 300 | 292.4 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | (26.1) | (25.5) | (26.4) | ||||||||
Intersegment Eliminations [Member] | Entertainment and Communications [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | 22.3 | 21.2 | 21 | ||||||||
Intersegment Eliminations [Member] | IT Services and Hardware [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenues | $ 3.8 | $ 4.3 | $ 5.4 |
Mergers and Acquisitions - Narr
Mergers and Acquisitions - Narratives (Details) $ / shares in Units, shares in Millions, $ in Millions | Oct. 02, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($)shares | Sep. 30, 2018USD ($)shares | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Jul. 02, 2018USD ($) | Jun. 29, 2018$ / shares |
Business Acquisition [Line Items] | ||||||||||||||||||||
Fiber Route Miles | 16,500 | |||||||||||||||||||
Business Combination, Consideration Transferred, Cash Previously Restricted | $ 16.5 | |||||||||||||||||||
Proceeds from (Repayments of) Lines of Credit | $ 194.6 | $ (89.5) | $ 71.9 | |||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 7.7 | |||||||||||||||||||
Business Acquisition, Share Price | $ / shares | $ 15.70 | |||||||||||||||||||
Acquisition costs | $ 4.3 | $ 13.3 | $ 2.7 | $ 2.2 | $ 4.1 | $ 12.1 | $ 1.7 | $ 0.6 | 22.5 | 18.5 | 0 | |||||||||
Goodwill | 157 | $ 151 | 151 | $ 157 | 157 | 151 | 14.3 | $ 157 | ||||||||||||
Revenues | 399 | 386.7 | 296.8 | 295.7 | 301.2 | 255.5 | 259.4 | 249.6 | 1,378.2 | 1,065.7 | 1,017.6 | |||||||||
Net income (loss) | (30) | (17.7) | $ (13.8) | (8.3) | (11.9) | $ (11) | $ 2.3 | $ 60.6 | (69.8) | 40 | $ 103 | |||||||||
Hawaiian Telcom Holdco, Inc. [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total estimated purchase price | $ 339.5 | |||||||||||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 7.7 | |||||||||||||||||||
Acquisition costs | 19.2 | 8 | 27.2 | |||||||||||||||||
Property, plant and equipment | $ 701.5 | |||||||||||||||||||
Intangible assets | 52 | |||||||||||||||||||
Goodwill | $ 8.8 | |||||||||||||||||||
OnX Holdings LLC [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Working capital adjustment | $ 2.8 | |||||||||||||||||||
Total estimated purchase price | $ 166.4 | |||||||||||||||||||
Acquisition costs | 0.5 | $ 8.6 | 8.1 | |||||||||||||||||
Ownership interest acquired | 100.00% | |||||||||||||||||||
Business Combination, Debt Repayment (Excluding Capital Leases), Including Accrued Interest | $ 77.6 | |||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | $ 2.8 | |||||||||||||||||||
Property, plant and equipment | 11.6 | |||||||||||||||||||
Intangible assets | 134 | |||||||||||||||||||
Goodwill | $ 133.1 | |||||||||||||||||||
Goodwill expected to be tax deductible | 2.3 | 2.3 | 2.3 | 2.3 | ||||||||||||||||
SunTel Services [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Total estimated purchase price | $ 10 | |||||||||||||||||||
Ownership interest acquired | 100.00% | |||||||||||||||||||
Property, plant and equipment | $ 0.4 | |||||||||||||||||||
Intangible assets | 1.2 | |||||||||||||||||||
Working capital adjustment | 4.1 | |||||||||||||||||||
Goodwill | $ 4.6 | |||||||||||||||||||
Hawaiian Telcom Holdco, Inc. [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Revenues | 175 | |||||||||||||||||||
Net income (loss) | 0.7 | |||||||||||||||||||
OnX Holdings LLC [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Revenues | 53 | |||||||||||||||||||
Net income (loss) | 11.5 | |||||||||||||||||||
Revolving Credit Facility [Member] | Hawaiian Telcom Holdco, Inc. [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Proceeds from (Repayments of) Lines of Credit | $ 35 | |||||||||||||||||||
Accounts Receivable Securitization Facility [Member] | Hawaiian Telcom Holdco, Inc. [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Proceeds from (Repayments of) Lines of Credit | 154 | |||||||||||||||||||
8% Senior Notes due 2025 [Member] | ||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||
Senior Notes, Noncurrent | $ 350 | $ 350 | $ 350 | $ 350 | $ 350 | $ 350 | $ 350 | $ 350 | $ 350 |
Mergers and Acquisitions - Sche
Mergers and Acquisitions - Schedule of Consideration (Details) - USD ($) $ in Millions | Oct. 02, 2017 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Hawaiian Telcom Holdco, Inc. [Member] | ||||
Consideration Transferred | ||||
Cash consideration plus debt assumed | $ 536.5 | |||
Cash consideration | 218.3 | |||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | 121.2 | |||
Debt repayment | (318.2) | |||
Total purchase price | 339.5 | |||
OnX Holdings LLC [Member] | ||||
Consideration Transferred | ||||
Cash consideration | $ 241.2 | |||
Debt repayment | (77.6) | |||
Working capital adjustment | 2.8 | |||
Total purchase price | $ 166.4 | |||
8% Senior Notes due 2025 [Member] | ||||
Business Acquisition [Line Items] | ||||
Senior Notes, Noncurrent | $ 350 | $ 350 | $ 350 |
Mergers and Acquisitions - Purc
Mergers and Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jul. 02, 2018 | Dec. 31, 2017 | Oct. 02, 2017 | Dec. 31, 2016 |
Assets acquired | |||||
Goodwill | $ 157 | $ 151 | $ 14.3 | ||
Hawaiian Telcom Holdco, Inc. [Member] | |||||
Assets acquired | |||||
Cash | $ 4.3 | ||||
Receivables | 25.5 | ||||
Inventory, materials and supplies | 6.9 | ||||
Prepaid expenses and other current assets | 5.9 | ||||
Property, plant and equipment | 701.5 | ||||
Goodwill | 8.8 | ||||
Intangible assets | 52 | ||||
Deferred income tax asset | 43.6 | ||||
Other noncurrent assets | 2.1 | ||||
Total assets acquired | 850.6 | ||||
Liabilities assumed | |||||
Accounts payable | 58 | ||||
Current portion of long-term debt | 10.2 | ||||
Unearned revenue and customer deposits | 13.5 | ||||
Accrued expenses and other current liabilities | 21.7 | ||||
Deferred income tax liabilities | 0 | ||||
Long-term debt, less current portion | 304.5 | ||||
Pension and postretirement benefit obligations | 68.9 | ||||
Other noncurrent liabilities | 34.3 | ||||
Total liabilities assumed | 511.1 | ||||
Net assets acquired | $ 339.5 | ||||
OnX Holdings LLC [Member] | |||||
Assets acquired | |||||
Cash | $ 6.5 | ||||
Receivables | 69.9 | ||||
Inventory, materials and supplies | 9 | ||||
Prepaid expenses and other current assets | 2.8 | ||||
Property, plant and equipment | 11.6 | ||||
Goodwill | 133.1 | ||||
Intangible assets | 134 | ||||
Deferred income tax asset | 1.4 | ||||
Other noncurrent assets | 1.8 | ||||
Total assets acquired | 370.1 | ||||
Liabilities assumed | |||||
Accounts payable | 63.6 | ||||
Current portion of long-term debt | 1.3 | ||||
Unearned revenue and customer deposits | 0 | ||||
Accrued expenses and other current liabilities | 18.3 | ||||
Deferred income tax liabilities | 42.3 | ||||
Long-term debt, less current portion | 76.7 | ||||
Pension and postretirement benefit obligations | 0 | ||||
Other noncurrent liabilities | 1.5 | ||||
Total liabilities assumed | 203.7 | ||||
Net assets acquired | $ 166.4 |
Mergers and Acquisitions - Fini
Mergers and Acquisitions - Finite Lived Intangible Assets Acquired (Details) $ in Millions | Jul. 02, 2018USD ($) | Oct. 02, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Business Acquisition [Line Items] | |||||
Fair Value | [1] | $ 190 | $ 141.8 | ||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Fair Value | [1] | 139.4 | 116 | ||
Trade name | |||||
Business Acquisition [Line Items] | |||||
Fair Value | [1] | 40.7 | 15.9 | ||
Technology | |||||
Business Acquisition [Line Items] | |||||
Fair Value | [1] | $ 9.9 | $ 9.9 | ||
Useful Lives | 10 years | ||||
OnX Holdings LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 134 | ||||
OnX Holdings LLC [Member] | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 108 | ||||
Useful Lives | 15 years | ||||
OnX Holdings LLC [Member] | Trade name | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 16 | ||||
Useful Lives | 10 years | ||||
OnX Holdings LLC [Member] | Technology | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 10 | ||||
Useful Lives | 10 years | ||||
Hawaiian Telcom Holdco, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 52 | ||||
Hawaiian Telcom Holdco, Inc. [Member] | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 26 | ||||
Useful Lives | 15 years | ||||
Hawaiian Telcom Holdco, Inc. [Member] | Trade name | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 26 | ||||
Useful Lives | 15 years | ||||
Hawaiian Telcom Holdco, Inc. [Member] | Technology | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 0 | ||||
Finite-Lived Intangible Assets, Useful Life, in Years | 0 | ||||
[1] | Change in gross carrying amounts is due to foreign currency translation on intangible assets related to OnX and intangible assets acquired in conjunction with the acquisition of Hawaiian Telcom. See Note 4 for further information. |
Mergers and Acquisitions - Good
Mergers and Acquisitions - Goodwill Rollforward (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 02, 2017 | Dec. 31, 2016 |
Goodwill | ||||
Balance at acquisition date | $ 157 | $ 151 | $ 14.3 | |
OnX Holdings LLC [Member] | ||||
Goodwill | ||||
Balance at acquisition date | $ 133.1 |
Mergers and Acquisitions - Prof
Mergers and Acquisitions - Proforma Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | |||
Revenue | $ 1,556.5 | $ 1,588.5 | $ 1,767.5 |
Net (loss) income applicable to common shareholders | $ (77.7) | $ (84.6) | $ 91.7 |
Earnings per share: | |||
Basic and diluted (loss) earnings per common share | $ (1.55) | $ (1.70) | $ 2.18 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ (69.8) | $ 40 | $ 102.7 | ||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 0 | 0.3 | ||||||||
Numerator: | |||||||||||
Net (loss) income | $ (30) | $ (17.7) | $ (13.8) | $ (8.3) | $ (11.9) | $ (11) | $ 2.3 | $ 60.6 | (69.8) | 40 | 103 |
Preferred stock dividends | 10.4 | 10.4 | 10.4 | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic and Diluted | $ (80.2) | $ 29.6 | $ 92.6 | ||||||||
Denominator: | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 46.3 | 42.2 | 42 | ||||||||
Stock-based compensation arrangements | 0 | 0.2 | 0.1 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 46.3 | 42.4 | 42.1 | ||||||||
Basic and diluted earnings per common share | $ (1.73) | $ 0.70 | $ 2.20 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 7.7 | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 0.1 | ||||||||||
Continuing Operations [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ (69.8) | $ 40 | $ 102.7 | ||||||||
Numerator: | |||||||||||
Preferred stock dividends | 10.4 | 10.4 | 10.4 | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic and Diluted | $ (80.2) | $ 29.6 | $ 92.3 | ||||||||
Denominator: | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 46.3 | 42.2 | 42 | ||||||||
Stock-based compensation arrangements | 0 | 0.2 | 0.1 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 46.3 | 42.4 | 42.1 | ||||||||
Income (Loss) from Continuing Operations, Per Basic Share and Diluted Share | $ (1.73) | $ 0.70 | $ 2.19 | ||||||||
Discontinued Operations [Member] | |||||||||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 0 | $ 0 | $ 0.3 | ||||||||
Numerator: | |||||||||||
Preferred stock dividends | 0 | 0 | 0 | ||||||||
Net Income (Loss) Available to Common Stockholders, Basic and Diluted | $ 0 | $ 0 | $ 0.3 | ||||||||
Denominator: | |||||||||||
Weighted Average Number of Shares Outstanding, Basic | 0 | 0 | 42 | ||||||||
Stock-based compensation arrangements | 0 | 0 | 0.1 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 0 | 0 | 42.1 | ||||||||
Income (Loss) from Discontinued Operations and Disposal of Discontinued Operations, Net of Tax, Per Basic Share and Diluted Share | $ 0 | $ 0 | $ 0.01 |
Earnings Per Common Share - Ant
Earnings Per Common Share - Antidilutive Securities Excluded From Computation of EPS (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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 | 0.4 | |
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 | 0.9 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Years | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Land and rights-of-way | $ 117.2 | $ 4.3 | |
Buildings and leasehold improvements | 305.2 | 179.1 | |
Network equipment | 3,913.3 | 3,339.4 | |
Office software, furniture, fixtures and vehicles | 216.3 | 162.5 | |
Construction in process | 47.1 | 14.7 | |
Gross value | 4,599.1 | 3,700 | |
Accumulated depreciation | (2,755.1) | (2,571) | |
Property, plant and equipment, net | 1,844 | 1,129 | |
Depreciation | $ 239.6 | $ 190.4 | $ 182 |
Depreciation associated with cost of providing services | 85.00% | 84.00% | 85.00% |
Impairment of assets, excluding goodwill | $ 0 | $ 0 | $ 0 |
Capital Leased Assets, Gross | $ 114.9 | $ 112 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life, Minimum in Practice | Years | 7 | ||
Property, Plant and Equipment, Useful Life, Maximum in Practice | Years | 25 | ||
Minimum [Member] | Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Minimum [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 2 years | ||
Maximum [Member] | Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Maximum [Member] | Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 50 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 14 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Line Items] | |||
Goodwill Reclassification | $ 9,700,000 | ||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 151,000,000 | 14,300,000 | |
Adjustments to prior year acquisitions | 700,000 | 0 | |
Goodwill, Mergers & Acquisitions | 8,800,000 | 137,000,000 | |
Currency translations | (3,500,000) | (300,000) | |
Goodwill, ending balance | 157,000,000 | 151,000,000 | $ 14,300,000 |
Goodwill, Impairment Loss | 0 | 0 | 0 |
IT Services and Hardware [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 148,800,000 | 12,100,000 | |
Adjustments to prior year acquisitions | 700,000 | 0 | |
Goodwill, Mergers & Acquisitions | 0 | 137,000,000 | |
Currency translations | (3,500,000) | (300,000) | |
Goodwill, ending balance | 146,000,000 | 148,800,000 | 12,100,000 |
Entertainment and Communications [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 2,200,000 | 2,200,000 | |
Adjustments to prior year acquisitions | 0 | 0 | |
Goodwill, Mergers & Acquisitions | 8,800,000 | 0 | |
Currency translations | 0 | 0 | |
Goodwill, ending balance | $ 11,000,000 | 2,200,000 | $ 2,200,000 |
SunTel Services [Member] | IT Services and Hardware [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Mergers & Acquisitions | 4,600,000 | ||
OnX Holdings LLC [Member] | IT Services and Hardware [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, Mergers & Acquisitions | $ 132,400,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Intangible Assets (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of Intangible Assets, Finite-lived | $ 0 | $ 0 | $ 0 | |
Gross Carrying Amount | [1] | 190 | 141.8 | |
Accumulated Amortization | (21.9) | (9.5) | ||
Net Amount | $ 168.1 | $ 132.3 | ||
Weighted Average Amortization Period for Intangible Assets | 15 | 14 | ||
Amortization of Intangible Assets | $ 12.4 | $ 2.5 | $ 0.2 | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 14.6 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 14.3 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 14.1 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 13.8 | |||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 13.5 | |||
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 97.8 | |||
Total Future Amortization Expense, Intangible Assets | 168.1 | |||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | [1] | 139.4 | 116 | |
Accumulated Amortization | (17.8) | (8.9) | ||
Net Amount | 121.6 | 107.1 | ||
Trade name | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | [1] | 40.7 | 15.9 | |
Accumulated Amortization | (2.8) | (0.4) | ||
Net Amount | $ 37.9 | 15.5 | ||
Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Gross Carrying Amount | [1] | $ 9.9 | 9.9 | |
Accumulated Amortization | (1.3) | (0.2) | ||
Net Amount | $ 8.6 | $ 9.7 | ||
Minimum [Member] | Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 8 years | |||
Minimum [Member] | Trade name | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Maximum [Member] | Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||
Maximum [Member] | Trade name | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 15 years | |||
[1] | Change in gross carrying amounts is due to foreign currency translation on intangible assets related to OnX and intangible assets acquired in conjunction with the acquisition of Hawaiian Telcom. See Note 4 for further information. |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements - Company's Debt (Details) - USD ($) | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ 20,200,000 | $ 18,400,000 | |
Finance Lease, Liability, Current | 800,000 | 0 | |
Capital Lease Obligations, Current | 13,400,000 | 12,400,000 | |
Receivables facility amount outstanding | 176,600,000 | 0 | |
Long-term Line of Credit | 18,000,000 | 0 | |
Long-term debt, less current portion | 1,909,600,000 | 1,729,300,000 | |
Finance Lease, Liability, Noncurrent | 2,300,000 | 0 | |
Capital Lease Obligations, Noncurrent | 60,500,000 | 70,500,000 | |
Net unamortized premium | 1,700,000 | 1,900,000 | |
Debt Issuance Costs, Noncurrent, Net | 27,200,000 | 22,300,000 | |
Debt and Capital Lease Obligations | $ 1,929,800,000 | 1,747,700,000 | |
Senior Notes due 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.38% | ||
Various Cincinnati Bell Telephone Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, less current portion | $ 87,900,000 | 87,900,000 | |
Tranche B Term Loan due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 6,000,000 | 6,000,000 | |
Long-term debt, less current portion | $ 592,500,000 | 594,000,000 | |
Senior Notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | ||
Senior Notes, Noncurrent | $ 22,300,000 | 22,300,000 | |
Senior Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | ||
Senior Notes, Noncurrent | $ 625,000,000 | 625,000,000 | |
8% Senior Notes due 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||
Senior Notes, Noncurrent | $ 350,000,000 | $ 350,000,000 | 350,000,000 |
Long-term debt, less current portion, before deducting unamortized discount or premium [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, less current portion | 1,935,100,000 | 1,749,700,000 | |
Long-Term Debt, Less Current Portion [Member] | Long-Term Debt, Less Current Portion [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, less current portion | $ 1,909,600,000 | $ 1,729,300,000 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Credit Agreement (effective 2017) (Details) | Oct. 02, 2017USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2013USD ($) |
Line of Credit Facility [Line Items] | ||||||
Credit agreement term | 5 years | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||||
Line of Credit Facility, Commitment Fee Percentage | 0.375% | |||||
Line Of Credit Facility, Fronting Fee Percentage | 0.125% | |||||
Long-term Line of Credit | $ 18,000,000 | $ 0 | ||||
Borrowing capacity | $ 182,000,000 | |||||
Minimum consolidated interest coverage ratio | 1.50 | |||||
Loss (Gain) on Extinguishment of Debt | $ 1,300,000 | $ 1,300,000 | $ 3,200,000 | $ 19,000,000 | ||
Equity Interests in Foreign Subsidiaries | 66.00% | |||||
Standby Letters of Credit [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 30,000,000 | |||||
Bridge Loan [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | 25,000,000 | |||||
Tranche B Term Loan due 2024 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Credit agreement term | 7 years | |||||
Debt Instrument, Face Amount | 600,000,000 | |||||
Proceeds from Issuance of Debt | 577,000,000 | |||||
Tranche B Term Loan due 2020 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Face Amount | $ 315,800,000 | $ 540,000,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.25% | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 1.00% | ||||
Federal Funds Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Federal Funds Rate [Member] | Tranche B Term Loan due 2024 [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||
Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | 2.25% | ||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 3.00% | ||||
Minimum [Member] | Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | |||||
Maximum [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Leverage Ratio, threshold | 3.25 | |||||
Maximum [Member] | Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Leverage Ratio, threshold | 3.50 | |||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |||||
Maximum [Member] | Base Rate [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements - Corporate Credit Agreement (2012 through 2017) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 02, 2017 | Sep. 30, 2013 | |
Line of Credit Facility [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200 | ||||||||
Loss (Gain) on Extinguishment of Debt | $ 1.3 | $ 1.3 | $ 3.2 | $ 19 | |||||
Tranche B Term Loan due 2020 [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Face Amount | 315.8 | $ 540 | |||||||
Standby Letters of Credit [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 30 | ||||||||
Bridge Loan [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25 | ||||||||
Line of Credit [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 150 | 150 | |||||||
Revolving Credit Facility And Tranche B Term Loan due 2020 [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Loss (Gain) on Extinguishment of Debt | $ 3.2 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Loss (Gain) on Extinguishment of Debt | $ 1.7 | ||||||||
Tranche B Term Loan [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Loss (Gain) on Extinguishment of Debt | $ 2.6 | ||||||||
Tranche B Term Loan due 2020 [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Loss (Gain) on Extinguishment of Debt | 2.2 | ||||||||
Extinguishment of Debt, Amount | $ 208 | ||||||||
Senior Notes due 2020 [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Loss (Gain) on Extinguishment of Debt | 17.8 | ||||||||
Extinguishment of Debt, Amount | $ 478.5 | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.75% | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 1.00% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.00% | 1.00% | 3.00% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | |||||||
Federal Funds Rate [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||||
Base Rate [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.75% | |||||||
Base Rate [Member] | Minimum [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.00% | 2.00% | |||||||
Base Rate [Member] | Maximum [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Accounts Receivable Securitization Facility (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2016 | Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Accounts Receivable Sold | $ 20,000,000 | |||
Receivables facility maximum borrowing capacity | 225,000,000 | $ 250,000,000 | ||
Receivables facility maximum borrowing availability | 193,700,000 | |||
Receivables facility amount outstanding | 176,600,000 | $ 0 | ||
Long-term Line of Credit | 18,000,000 | $ 0 | ||
Letters of Credit Outstanding, Amount | 8,200,000 | |||
Receivables Facility Remaining Borrowing Capacity | $ 9,100,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | 1.00% | ||
Receivables Facilities [Member] | ||||
Debt Instrument [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 8,000,000 | |||
Debt Instrument, Interest Rate During Period | 3.20% | |||
Receivables Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.10% |
Debt and Other Financing Arra_6
Debt and Other Financing Arrangements Debt and Other Financing Arrangements - Notes due (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2018 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 1993 | Oct. 06, 2017 | |
Debt Instrument [Line Items] | ||||||||
Proceeds from Issuance of Long-term Debt | $ 0 | $ 943 | $ 635 | |||||
Loss (Gain) on Extinguishment of Debt | $ 1.3 | $ 1.3 | $ 3.2 | 19 | ||||
Senior Notes Due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from Issuance of Long-term Debt | $ 200 | $ 425 | ||||||
Issuance of Long-Term Debt, Original Issue Premium, Percentage | 105.00% | |||||||
Debt Instrument, Redemption Price, Redemption Period | 180 days | |||||||
Debt Instrument, Covenant Description | 35 | |||||||
8% Senior Notes due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
Debt Instrument, Redemption Price, Percentage Of Principal Amount Outstanding | 60.00% | |||||||
Debt Instrument, Redemption Price, Redemption Period | 180 days | |||||||
Debt Instrument, Face Amount | $ 350 | |||||||
8% Senior Notes due 2025 [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 108.00% | |||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 40.00% | |||||||
8% Senior Notes due 2025 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 106.00% | |||||||
8% Senior Notes due 2025 [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 104.00% | |||||||
8% Senior Notes due 2025 [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 102.00% | |||||||
8% Senior Notes due 2025 [Member] | Debt Instrument, Redemption, Period Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
Senior Notes due 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from Issuance of Long-term Debt | $ 50 | |||||||
Customary Events of Default Amount for Existing Debt Instruments | $ 20 | |||||||
Senior Notes Due 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage Of Principal Amount Outstanding | 60.00% | |||||||
Senior Notes Due 2024 [Member] | Debt Instrument, Redemption, Period One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 107.00% | |||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 40.00% | |||||||
Senior Notes Due 2024 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 105.25% | |||||||
Senior Notes Due 2024 [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 103.50% | |||||||
Senior Notes Due 2024 [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 101.75% | |||||||
Senior Notes Due 2024 [Member] | Debt Instrument, Redemption, Period Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||
Senior Notes due 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Extinguishment of Debt, Amount | $ 4 | |||||||
Debt Instrument, Redemption Price, Percentage | 100.75% | |||||||
Loss (Gain) on Extinguishment of Debt | $ 0.1 |
Debt and Other Financing Arra_7
Debt and Other Financing Arrangements - Cincinnati Bell Telephone Notes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 1998 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Loss (Gain) on Extinguishment of Debt | $ 1.3 | $ 1.3 | $ 3.2 | $ 19 | |
Cincinnati Bell Telephone Senior Notes due 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from Issuance of Unsecured Debt | $ 150 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.30% | ||||
Customary Events of Default Amount for Existing Debt Instruments | $ 20 | ||||
Cincinnati Bell Telephone Senior Notes due 2028 [Member] | |||||
Debt Instrument [Line Items] | |||||
Extinguishment of Debt, Amount | $ 40.8 | ||||
Debt Instrument, Redemption Price, Percentage | 92.232% | ||||
Loss (Gain) on Extinguishment of Debt | $ (2.8) |
Debt and Other Financing Arra_8
Debt and Other Financing Arrangements - Debt Maturity Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long-Term Debt, Excluding Capital Leases, Current | $ 6 | |
Finance Lease, Liability, Current | 0.8 | |
Long-Term Debt, Excluding Capital Leases, Repayments of Principal in Year Two | 6 | |
Finance Lease, Liability, Payments, Due Year Two | 1.1 | |
Long-Term Debt, Excluding Capital Leases, Repayments of Principal in Year Three | 182.6 | |
Finance Lease, Liability, Payments, Due Year Three | 1.1 | |
Long-Term Debt, Excluding Capital Leases, Repayments of Principal in Year Four | 24 | |
Finance Lease, Liability, Payments, Due Year Four | 0.1 | |
Long-Term Debt, Excluding Capital Leases, Repayments of Principal in Year Five | 28.3 | |
Finance Lease, Liability, Payments, Due Year Five | 0 | |
Long-Term Debt, Excluding Capital Leases, Repayments of Principal After Year Five | 1,631.4 | |
Finance Lease, Liability, Payments, Due after Year Five | 0 | |
Long-Term Debt, Excluding Capital Leases, Gross | 1,878.3 | |
Finance Lease, Liability | 3.1 | |
Capital Leases, Future Principal Payments Due, Repayments of Principal in Next Twelve Months | 13.4 | |
Capital Leases, Future Principal Payments Due in Two Years | 10.5 | |
Capital Leases, Future Principal Payments Due in Three Years | 7.1 | |
Capital Leases, Future Principal Payments Due in Four Years | 5 | |
Capital Leases, Future Principal Payments Due in Five Years | 3.8 | |
Capital Leases, Future Principal Payments Due Thereafter | 34.1 | |
Capital Leases, Future Minimum Principal Payments Due | 73.9 | |
Debt Instrument, Unamortized Discount | 0 | |
Debt Issuance Costs, Net | 0 | |
Long-term Debt and Capital Lease Obligations, Repayments of Principal in Next Twelve Months | 20.2 | |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Two | 17.6 | |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Three | 190.8 | |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Four | 29.1 | |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal in Year Five | 32.1 | |
Long-term Debt and Capital Lease Obligations, Maturities, Repayments of Principal after Year Five | 1,665.5 | |
Long-term Debt, Gross | 1,955.3 | |
Net unamortized premium | 1.7 | $ 1.9 |
Debt Issuance Costs, Noncurrent, Net | 27.2 | 22.3 |
Long-Term Debt, Excluding Capital Leases, Net | 1,852.8 | |
Debt and Capital Lease Obligations | 1,929.8 | $ 1,747.7 |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 18 | |
Capital Leases, Future Minimum Payments Due in Two Years | 14.4 | |
Capital Leases, Future Minimum Payments Due in Three Years | 10.6 | |
Capital Leases, Future Minimum Payments Due in Four Years | 8 | |
Capital Leases, Future Minimum Payments Due in Five Years | 6.5 | |
Capital Leases, Future Minimum Payments Due Thereafter | $ 42.6 |
Debt and Other Financing Arra_9
Debt and Other Financing Arrangements - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Payments of Debt Issuance Costs | $ 11.7 | $ 19.1 | $ 11.1 | ||
Write off of Deferred Debt Issuance Cost | 1.3 | 2.1 | 5.9 | ||
Debt Issuance Costs, Noncurrent, Net | $ 22.3 | 27.2 | 22.3 | ||
Amortization of Debt Issuance Costs | $ 5.7 | 3.4 | 3 | ||
Debt Covenants [Abstract] | |||||
Consolidated total leverage ratio, maximum allowed under Line of Credit Facility | 3.50 | ||||
Minimum consolidated interest coverage ratio | 1.50 | ||||
Extinguishment of Debt Disclosures [Abstract] | |||||
Loss (Gain) on Extinguishment of Debt | $ 1.3 | $ 1.3 | 3.2 | 19 | |
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | 328.7 | 403 | 759.3 | ||
Tranche B Term Loan due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Payments of Debt Issuance Costs | 1 | 12.9 | |||
8% Senior Notes due 2025 [Member] | |||||
Debt Instrument [Line Items] | |||||
Payments of Debt Issuance Costs | $ 8.7 | 1.4 | |||
Extinguishment of Debt Disclosures [Abstract] | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Revolving Credit Facility and Receivables Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Payments of Debt Issuance Costs | $ 2.3 | 4.6 | |||
Other Noncurrent Assets [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Noncurrent, Net | 5.1 | $ 4.9 | $ 5.1 | ||
Senior Notes due 2020 [Member] | |||||
Extinguishment of Debt Disclosures [Abstract] | |||||
Extinguishment of Debt, Amount | $ 478.5 | ||||
Debt Instrument, Redemption Price, Percentage | 103.328% | ||||
Loss (Gain) on Extinguishment of Debt | $ 17.8 | ||||
Tranche B Term Loan [Member] | |||||
Extinguishment of Debt Disclosures [Abstract] | |||||
Loss (Gain) on Extinguishment of Debt | 2.6 | ||||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | $ 315.8 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Years | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Operating Leases, Rent Expense | $ 18.4 | $ 10.7 | $ 9.6 |
Letters of Credit Outstanding, Amount | $ 8.2 | ||
Long-term Purchase Commitments, Range of Years, Minimum | Years | 1 | ||
Long-Term Purchase Commitments, Range of Years, Maximum | Years | 3 | ||
Long-term Purchase Commitment, Amount | $ 157 | 205 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,019 | 10.9 | ||
2,020 | 9.4 | ||
2,021 | 6.1 | ||
2,022 | 4.5 | ||
2,023 | 3.9 | ||
Thereafter | 23.7 | ||
Total | 58.5 | ||
Asset Retirement Obligation [Abstract] | |||
Balance, beginning of period | 2.3 | 1.8 | |
Hawaiian Telcom opening balance sheet adjustment | 6.6 | 0 | |
Liabilities Incurred | 0 | 0.4 | |
Liabilities settled | (0.1) | 0 | |
Accretion expense | 0.3 | 0.1 | |
Balance, end of period | $ 9.1 | $ 2.3 | $ 1.8 |
Commitments and Contingencies O
Commitments and Contingencies Other Installment Financing Arrangements (Details) $ in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Other Installment Financing Arrangements [Line Items] | ||
Financing Arrangement Liability | $ 44.6 | $ 0 |
Other Assets, Current | 39.2 | $ 37.2 |
2,019 | 0.8 | |
2,020 | 0.8 | |
2,021 | 3.5 | |
2,022 | 5.8 | |
2,023 | 5.8 | |
Thereafter | 58.8 | |
Total minimum financing obligations payments | $ 75.5 | |
Joint Pole Asset [Member] | ||
Other Installment Financing Arrangements [Line Items] | ||
Contract Term, in Years | 10 | |
Financing Arrangement Liability | $ 40.1 | |
Usage Life, in Years | 20 | |
Other Assets, Current | $ 1 | |
Data Centers [Member] | ||
Other Installment Financing Arrangements [Line Items] | ||
Contract Term, in Years | 10 | |
Financing Arrangement Liability | $ 4.5 |
Commitments and Contingencies T
Commitments and Contingencies Trans-Pacific Submarine Cable (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Jointly Owned Utility Plant Aggregate Construction Cost | $ 235 |
Jointly Owned Utility Plant Amount Paid For Cable Build | $ 1.7 |
Up-Front Payments for Services, Upper Range, Years | 25 |
Proceeds From Sale of Capacity | $ 23 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | $ (5) | |||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (1.2) | |||
Long-Term Debt, Excluding Capital Leases and Note Issuance Costs, Net | [1] | 1,880 | $ 1,687.1 | |
Financing Arrangement Liability | 44.6 | 0 | ||
Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-Term Debt, Excluding Capital Leases and Note Issuance Costs, Net | [1] | 1,673.6 | 1,687.5 | |
Financing Arrangement Liability | 43.6 | $ 0 | ||
Interest Rate Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Derivative, Notional Amount | $ 300 | |||
Derivative, Average Fixed Interest Rate | 2.938% | |||
Interest Rate Contract [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | $ 5 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 3.8 | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | 1.2 | |||
Interest Rate Contract [Member] | Quoted Prices in active markets Level 1 | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | 0 | |||
Interest Rate Contract [Member] | Significant observable inputs Level 2 | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 3.8 | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | 1.2 | |||
Interest Rate Contract [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | |||
Interest Rate Cash Flow Hedge Liability at Fair Value | $ 0 | |||
Scenario, Forecast [Member] | Interest Rate Contract [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 1.2 | |||
[1] | *Excludes capital leases and note issuance costs. |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements Non-Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of assets, excluding goodwill | $ 0 | $ 0 | $ 0 |
IT Services and Hardware [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of assets, excluding goodwill | (4.7) | ||
Impairment of assets, excluding goodwill | (4.7) | ||
Fair Value, Measurements, Nonrecurring [Member] | IT Services and Hardware [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Method Investments, Fair Value Disclosure | 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in active markets Level 1 | IT Services and Hardware [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Method Investments, Fair Value Disclosure | 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | Significant observable inputs Level 2 | IT Services and Hardware [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Method Investments, Fair Value Disclosure | 0 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | IT Services and Hardware [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Equity Method Investments, Fair Value Disclosure | $ 0 |
Pension and Postretirement Pl_3
Pension and Postretirement Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined contribution plan, cost | $ 11.3 | $ 8.2 | $ 8.4 |
Capitalized portion of defined benefit contribution percent | 13.00% | 13.00% | |
Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlements | 3.6 | $ 11 | |
Settlements | (3.6) | (11.3) | |
Pension settlement charges | 0.1 | 4 | $ 0 |
Transfer of special death benefit | 0 | (14) | |
Pension Plan | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | 9.3 | 2.3 | 3.1 |
Expected future employer contributions, next fiscal year | 3 | ||
Pension Plan | Nonqualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | 2.3 | 2.3 | 2.3 |
Expected future employer contributions, next fiscal year | 3 | ||
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlements | 0 | 0 | |
Settlements | 0 | 0 | |
Pension settlement charges | 0 | 0 | $ 0 |
Transfer of special death benefit | 0 | (14) | |
Expected future employer contributions, next fiscal year | $ 11 | ||
Cincinnati Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Allocation percentage in united states based investments | 52.00% | ||
Cincinnati Plans [Member] | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, plan assets percentage | 65.00% | ||
Cincinnati Plans [Member] | Fixed Income Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, plan assets percentage | 35.00% | ||
Cincinnati Plans [Member] | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlements | 11 | ||
Settlements | 11.3 | ||
Pension settlement charges | 4 | ||
Transfer of special death benefit | $ 14 | ||
Hawaii Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Allocation percentage in united states based investments | 69.00% | ||
Hawaii Plans [Member] | Equity Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, plan assets percentage | 60.00% | ||
Hawaii Plans [Member] | Fixed Income Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Target allocation, plan assets percentage | 40.00% | ||
Hawaii Plans [Member] | Pension Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Settlements | $ 3.6 | ||
Settlements | 3.6 | ||
Pension settlement charges | 0.1 | ||
Hawaii Plans [Member] | Pension Plan | Qualified Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | $ 5 |
Pension and Postretirement Pl_4
Pension and Postretirement Plans - Components of Net Periodic Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 20 | 19.4 | 19.3 |
Expected return on plan assets | (29.8) | (26) | (27.3) |
Amortization of: | |||
Prior service cost (benefit) | 0 | 0 | 0.1 |
Actuarial loss | 17 | 17.5 | 19.1 |
Pension settlement charges | 0.1 | 4 | 0 |
Pension/postretirement cost (benefit) | 7.3 | 14.9 | 11.2 |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.6 | 0.2 | 0.3 |
Interest cost on projected benefit obligation | 4.2 | 3.2 | 3.3 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of: | |||
Prior service cost (benefit) | (3.1) | (4.5) | (14.7) |
Actuarial loss | 4.1 | 4.7 | 4.9 |
Pension settlement charges | 0 | 0 | 0 |
Pension/postretirement cost (benefit) | 5.8 | 3.6 | $ (6.2) |
Cincinnati Plans [Member] | Pension Plan | |||
Amortization of: | |||
Pension settlement charges | $ 4 | ||
Hawaii Plans [Member] | Pension Plan | |||
Amortization of: | |||
Pension settlement charges | $ 0.1 |
Pension and Postretirement Pl_5
Pension and Postretirement Plans - Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rate [Abstract] | |||
Service and interest costs for current year | $ 0.1 | ||
Service and interest costs for current year | (0.1) | ||
Postretirement benefit obligation at December 31 | 1.8 | ||
Postretirement benefit obligation at December 31 | $ (1.7) | ||
Cincinnati Plans [Member] | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Healthcare cost trend | 6.50% | 6.50% | |
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 4.50% | 4.50% | |
Year the rates reach the ultimate trend rate | 2,023 | 2,022 | |
Cincinnati Plans [Member] | Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.60% | 4.10% | 3.80% |
Expected long-term rate of return | 7.00% | 7.25% | 7.50% |
Future compensation growth rate | 0.00% | 0.00% | 0.00% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.20% | 3.60% | |
Future compensation growth rate | 0.00% | 0.00% | |
Cincinnati Plans [Member] | Other Postretirement Benefits Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 3.60% | 4.00% | 3.70% |
Expected long-term rate of return | 0.00% | 0.00% | 0.00% |
Future compensation growth rate | 0.00% | 0.00% | 0.00% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.30% | 3.60% | |
Future compensation growth rate | 0.00% | 0.00% | |
Hawaii Plans [Member] | |||
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Healthcare cost trend | 6.80% | ||
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 5.00% | ||
Year the rates reach the ultimate trend rate | 2,026 | ||
Hawaii Plans [Member] | Pension Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.10% | ||
Expected long-term rate of return | 7.00% | ||
Future compensation growth rate | 0.00% | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.20% | ||
Future compensation growth rate | 0.00% | ||
Hawaii Plans [Member] | Other Postretirement Benefits Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.20% | ||
Expected long-term rate of return | 0.00% | ||
Future compensation growth rate | 0.00% | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.40% | ||
Future compensation growth rate | 0.00% |
Pension and Postretirement Pl_6
Pension and Postretirement Plans - Benefit Obligation and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1, | $ 399.6 | ||
Fair value of plan assets at December 31, | 488.2 | $ 399.6 | |
Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1, | 489.2 | 505.6 | |
Hawaiian Telcom opening balance sheet adjustment | 184.1 | 0 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 20 | 19.4 | 19.3 |
Actuarial (gain) loss | (39.9) | 28.1 | |
Benefits paid | (43) | (38.6) | |
Retiree drug subsidy received | 0 | 0 | |
Transfer of special death benefit | 0 | 14 | |
Settlements | (3.6) | (11.3) | |
Other | 0 | 0 | |
Benefit obligation at December 31, | 606.8 | 489.2 | 505.6 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1, | 392.1 | 372.3 | |
Hawaiian Telcom opening balance sheet adjustment | 163 | 0 | |
Actual (loss) return on plan assets | (37.7) | 64.8 | |
Employer contributions | 11.6 | 4.6 | |
Retiree drug subsidy received | 0 | 0 | |
Benefits paid | (43) | (38.6) | |
Settlements | (3.6) | (11) | |
Fair value of plan assets at December 31, | 482.4 | 392.1 | 372.3 |
Unfunded status | (124.4) | (97.1) | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1, | 98.6 | 82.6 | |
Hawaiian Telcom opening balance sheet adjustment | 51.2 | 0 | |
Service cost | 0.6 | 0.2 | 0.3 |
Interest cost | 4.2 | 3.2 | 3.3 |
Actuarial (gain) loss | (20.3) | 7.6 | |
Benefits paid | (13.1) | (11.6) | |
Retiree drug subsidy received | 0.3 | 0.2 | |
Transfer of special death benefit | 0 | 14 | |
Settlements | 0 | 0 | |
Other | 2.2 | 2.4 | |
Benefit obligation at December 31, | 123.7 | 98.6 | 82.6 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1, | 7.5 | 8.7 | |
Hawaiian Telcom opening balance sheet adjustment | 0 | 0 | |
Actual (loss) return on plan assets | 0.3 | 0.2 | |
Employer contributions | 10.8 | 10 | |
Retiree drug subsidy received | 0.3 | 0.2 | |
Benefits paid | (13.1) | (11.6) | |
Settlements | 0 | 0 | |
Fair value of plan assets at December 31, | 5.8 | 7.5 | $ 8.7 |
Unfunded status | (117.9) | (91.1) | |
Cincinnati Plans [Member] | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Transfer of special death benefit | (14) | ||
Settlements | 11.3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Settlements | $ (11) | ||
Hawaii Plans [Member] | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Settlements | 3.6 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Settlements | $ (3.6) |
Pension and Postretirement Pl_7
Pension and Postretirement Plans - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and postretirement benefit obligations (noncurrent liability) | $ 177.5 | $ 230.6 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Capitalized portion of defined benefit contribution percent | 13.00% | 13.00% | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued payroll and benefits (current liability) | $ 2.1 | 2.1 | |
Pension and postretirement benefit obligations (noncurrent liability) | 95 | 122.3 | |
Total | 97.1 | 124.4 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Prior service (cost) benefit, net of tax of ($0.1), ($0.1), $4.6, $5.3 | (0.1) | (0.1) | |
Prior service costs, tax | (0.1) | (0.1) | |
Actuarial loss, net of tax of ($45.0), ($42.5), ($7.1), ($12.7) | (148.4) | (156.3) | |
Actuarial loss, tax | (42.5) | (45) | |
Total | (148.5) | (156.4) | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued payroll and benefits (current liability) | 10.5 | 11 | |
Pension and postretirement benefit obligations (noncurrent liability) | 80.6 | 106.9 | |
Total | 91.1 | 117.9 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Prior service (cost) benefit, net of tax of ($0.1), ($0.1), $4.6, $5.3 | 19.9 | 17.5 | |
Prior service costs, tax | 5.3 | 4.6 | |
Actuarial loss, net of tax of ($45.0), ($42.5), ($7.1), ($12.7) | (44.5) | (25.6) | |
Actuarial loss, tax | (12.7) | (7.1) | |
Total | $ (24.6) | (8.1) | |
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | 11 | ||
Nonqualified Plan | Pension Plan | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 3 |
Pension and Postretirement Pl_8
Pension and Postretirement Plans - Amounts Recognized in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | ||
Prior service cost recognized: | ||
Reclassification adjustments | $ 0 | $ 0 |
Actuarial (loss) gain recognized: | ||
Reclassification adjustments | 17.1 | 21.5 |
Actuarial (loss) gain arising during the period | (27.7) | 11 |
Prior service benefit | 0 | |
Actuarial loss | (13.9) | |
Total | 13.9 | |
Other Postretirement Benefits Plan | ||
Prior service cost recognized: | ||
Reclassification adjustments | (3.1) | (4.5) |
Actuarial (loss) gain recognized: | ||
Reclassification adjustments | 4.1 | 4.7 |
Actuarial (loss) gain arising during the period | 20.4 | $ (7.4) |
Prior service benefit | 2.5 | |
Actuarial loss | (1.9) | |
Total | $ (0.6) |
Pension and Postretirement Pl_9
Pension and Postretirement Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 488.2 | $ 399.6 |
U.S. equity index funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 165 | 151 |
International equity index funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 127.2 | 101.3 |
Fixed income bond funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 183 | 136.1 |
Fixed income short-term money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.2 | 3.7 |
Group insurance contract | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.8 | 7.5 |
Quoted Prices in active markets Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 327.3 | 392.1 |
Quoted Prices in active markets Level 1 | U.S. equity index funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 107.2 | 151 |
Quoted Prices in active markets Level 1 | International equity index funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 100.7 | 101.3 |
Quoted Prices in active markets Level 1 | Fixed income bond funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 119.3 | 136.1 |
Quoted Prices in active markets Level 1 | Fixed income short-term money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.1 | 3.7 |
Quoted Prices in active markets Level 1 | Group insurance contract | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant observable inputs Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 155.1 | 0 |
Significant observable inputs Level 2 | U.S. equity index funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 57.8 | 0 |
Significant observable inputs Level 2 | International equity index funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 26.5 | 0 |
Significant observable inputs Level 2 | Fixed income bond funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 63.7 | 0 |
Significant observable inputs Level 2 | Fixed income short-term money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.1 | 0 |
Significant observable inputs Level 2 | Group insurance contract | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant unobservable inputs Level 3 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant unobservable inputs Level 3 | U.S. equity index funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant unobservable inputs Level 3 | International equity index funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant unobservable inputs Level 3 | Fixed income bond funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant unobservable inputs Level 3 | Fixed income short-term money market funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Significant unobservable inputs Level 3 | Group insurance contract | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Postretirement P_10
Pension and Postretirement Plans - Expected Future Benefit Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Expected Future Prescription Drug Subsidy Receipt [Abstract] | |||
2,019 | $ (0.4) | ||
2,020 | (0.4) | ||
2,021 | (0.3) | ||
2,022 | (0.3) | ||
2,023 | (0.3) | ||
Years 2024 - 2028 | 1 | ||
Pension Plan | |||
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2,019 | 77.3 | ||
2,020 | 51.3 | ||
2,021 | 50.1 | ||
2,022 | 47.9 | ||
2,023 | 46.3 | ||
Years 2024 - 2028 | 196.5 | ||
Other Postretirement Benefits Plan | |||
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |||
2,019 | 11.5 | ||
2,020 | 10.7 | ||
2,021 | 10.4 | ||
2,022 | 10 | ||
2,023 | 9.5 | ||
Years 2024 - 2028 | 41.8 | ||
Qualified Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | 9.3 | $ 2.3 | $ 3.1 |
Qualified Plan | Hawaii Plans [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension and Other Postretirement Benefits | $ 5 |
Shareowners' Deficit (Details)
Shareowners' Deficit (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | |
Class of Stock [Line Items] | ||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | ||
Common Stock, Shares, Outstanding | 50,184,114 | 42,197,965 | ||
Stock Repurchase Program, Authorized Amount | $ | $ 150 | |||
Repurchase and retirement of shares | 0 | 0 | 200,000 | |
Stock Repurchased and Retired During Period, Value | $ | $ 4.8 | |||
Stock repurchased and retired during period, average price per share | $ / shares | $ 19.67 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ | $ 124.4 | |||
Treasury Stock, Value | $ | $ 0.5 | |||
Stock Issued During Period, Shares, Acquisitions | 7,700,000 | |||
Stock Issued During Period, Value, Acquisitions | $ | $ 121.2 | |||
Preferred Stock, Shares Authorized | 2,357,299 | 2,357,299 | ||
Preferred Stock, Shares Issued | 155,250 | 155,250 | ||
Preferred Stock, Depositary Shares | 3,105,000 | 3,105,000 | ||
Preferred Stock Converstion Rate | 5.7676 | |||
Preferred Stock, Dividends, Per Share, Cash Paid | $ / shares | $ 67.50 | |||
Preferred stock dividends per depositary share | $ / shares | 3.3752 | |||
Preferred Stock, Liquidation Preference Per Share | $ / shares | 1,000 | $ 1,000 | ||
Preferred Stock Liquidation Preference Per Depositary Share | $ / shares | $ 50 | $ 50 | ||
Preferred Stock Dividends and Other Adjustments | $ | $ 10.4 | $ 10.4 | $ 10.4 | |
Preferred Voting Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 1,357,299 | |||
Nonvoting Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 1,000,000 |
Shareowners' Deficit Accumulate
Shareowners' Deficit Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||||
Beginning Balance | $ (173.7) | |||||
Remeasurement of benefit obligations | (5.5) | $ 2.8 | $ 6.6 | |||
Unrealized gain on Investment in CyrusOne, net | 0 | 8.3 | 68.1 | |||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | 0 | |||||
Foreign currency gain (loss) | (6.5) | 0.2 | (0.1) | |||
Unrealized loss on cash flow hedge arising during the period, net | (4.8) | 0 | 0 | |||
Ending Balance | (175.5) | (173.7) | ||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||||
Beginning Balance | (173.1) | (157.6) | ||||
Remeasurement of benefit obligations | (5.5) | 2.8 | ||||
Unrealized gain on Investment in CyrusOne, net | 0 | |||||
Reclassifications, net | [1] | 14.1 | 13.9 | |||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | [2] | (32.2) | ||||
Foreign currency gain (loss) | 0 | 0 | ||||
Unrealized loss on cash flow hedge arising during the period, net | 0 | |||||
Ending Balance | (164.5) | (173.1) | (157.6) | |||
Accumulated Net Investment Gain (Loss) Attributable to Parent | ||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||||
Beginning Balance | 0 | 68.1 | ||||
Remeasurement of benefit obligations | 0 | 0 | ||||
Unrealized gain on Investment in CyrusOne, net | [3] | 8.3 | ||||
Reclassifications, net | 0 | (76.4) | [4] | |||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | 0 | |||||
Foreign currency gain (loss) | 0 | 0 | ||||
Unrealized loss on cash flow hedge arising during the period, net | 0 | |||||
Ending Balance | 0 | 0 | 68.1 | |||
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | ||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||||
Beginning Balance | 0 | 0 | ||||
Remeasurement of benefit obligations | 0 | 0 | ||||
Unrealized gain on Investment in CyrusOne, net | 0 | |||||
Reclassifications, net | 0.9 | [5] | 0 | |||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | 0 | |||||
Foreign currency gain (loss) | 0 | 0 | ||||
Unrealized loss on cash flow hedge arising during the period, net | [6] | (4.8) | ||||
Ending Balance | (3.9) | 0 | 0 | |||
Accumulated Foreign Currency Adjustment Attributable to Parent | ||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||||
Beginning Balance | (0.6) | (0.8) | ||||
Remeasurement of benefit obligations | 0 | 0 | ||||
Unrealized gain on Investment in CyrusOne, net | 0 | |||||
Reclassifications, net | 0 | 0 | ||||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | 0 | |||||
Foreign currency gain (loss) | (6.5) | 0.2 | ||||
Unrealized loss on cash flow hedge arising during the period, net | 0 | |||||
Ending Balance | (7.1) | (0.6) | (0.8) | |||
AOCI Attributable to Parent | ||||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||||
Beginning Balance | (173.7) | (90.3) | ||||
Remeasurement of benefit obligations | (5.5) | 2.8 | ||||
Unrealized gain on Investment in CyrusOne, net | 8.3 | |||||
Reclassifications, net | 15 | (62.5) | ||||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | [7] | (32.2) | ||||
Foreign currency gain (loss) | (6.5) | 0.2 | ||||
Unrealized loss on cash flow hedge arising during the period, net | (4.8) | |||||
Ending Balance | $ (175.5) | $ (173.7) | $ (90.3) | |||
[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 and pension settlement charges, net of tax. 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 Consolidated Statements of Operations. See Note 11 for further disclosures. | |||||
[2] | This reclassification adjustment resulted from a change in the corporate tax rate arising from tax legislation enacted in December 2017, commonly referred to as the Tax Cuts and Jobs Act (the "Tax Act"). In February 2018, the FASB issued ASU 2018-02 which allows entities to make a one-time reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from newly enacted corporate tax rates. The Company early adopted the guidance effective December 31, 2017. 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. | |||||
[3] | The unrealized gain on Investment in CyrusOne, net of tax, represents changes in the fair value of CyrusOne shares of common stock owned by the Company during the period, before any subsequent sales of those shares. | |||||
[4] | These reclassifications are reported within "Gain on sale of CyrusOne investment" on the Consolidated Statements of Operations. | |||||
[5] | These reclassifications are reported within "Interest expense" on the Consolidated Statements of Operations when the hedged transactions impact earnings. | |||||
[6] | The unrealized loss on cash flow hedge represents the change in the fair value of the derivative instrument that occurred during the period, net of tax. This unrealized loss is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Consolidated Balance Sheets. See Note 10 for further disclosures. | |||||
[7] | Per ASU 2018-02, entities can elect to make a one-time reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from newly enacted corporate tax rates under the Tax Cuts and Jobs Act. The Company elected to make the change and recorded the adjustment in 2017. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | ||||
Federal | $ (0.6) | $ (14.8) | $ (14) | |
State and local | 0.9 | 1 | 0.5 | |
Foreign | 1.6 | 0 | 0 | |
Total current | 1.9 | (13.8) | (13.5) | |
Investment tax credits | (0.1) | (0.1) | (0.1) | |
Deferred: | ||||
Federal | (10.2) | 47.1 | 73.2 | |
State and local | 5.7 | 2.3 | 5.7 | |
Foreign | (1) | 0.4 | 0 | |
Total deferred | (5.5) | 49.8 | 78.9 | |
Valuation allowance | 13.1 | (9.2) | (3.6) | |
Total | $ 9.4 | $ 26.7 | $ 61.7 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
U.S. federal statutory rate | 21.00% | 35.00% | 35.00% | |
State and local income taxes, net of federal income tax | 1.40% | 0.70% | 0.20% | |
Change in valuation allowance, net of federal income tax | (21.80%) | (9.10%) | (1.40%) | |
State net operating loss adjustments | (10.10%) | 2.00% | 0.90% | |
Federal rate change | 0.00% | 3.50% | 0.00% | |
Transaction costs | (3.10%) | 5.50% | 0.00% | |
Non-Deductible Meals and Entertainment | (1.80%) | 1.30% | 0.40% | |
Unrecognized tax benefit changes | 0.00% | 1.40% | 2.30% | |
Other differences, net | (1.10%) | (0.20%) | 0.10% | |
Effective tax rate | (15.50%) | 40.10% | 37.50% | |
Income tax expense (benefit) | $ 9.4 | $ 26.7 | $ 61.7 | |
Accumulated other comprehensive income (loss) | 1.3 | (28.3) | 43.8 | |
Excess tax benefits on stock option exercises | $ 0 | 0 | 0.1 | |
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2023 | |||
Deferred Tax Assets, Valuation Allowance | $ 45.5 | $ 58.2 | 45.5 | |
Deferred tax assets: | ||||
Net operating loss carryforwards | 88.9 | 184 | 88.9 | |
Pension and postretirement benefits | 46.1 | 55 | 46.1 | |
Employee benefits | 7.9 | 10.3 | 7.9 | |
Interest limitation | 0 | 15.3 | 0 | |
Texas Margin Credit | 10.5 | 12.2 | 10.5 | |
Other | 9.3 | 25.6 | 9.3 | |
Total deferred tax assets | 162.7 | 302.4 | 162.7 | |
Valuation allowance | (45.5) | (58.2) | (45.5) | |
Total deferred tax assets, net of valuation allowance | 117.2 | 244.2 | 117.2 | |
Deferred tax liabilities: | ||||
Property, plant and equipment | 115.9 | 196.1 | 115.9 | |
Other | 0.3 | 12 | 0.3 | |
Total deferred tax liabilities | 116.2 | 208.1 | 116.2 | |
Net deferred tax assets | 1 | 36.1 | 1 | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||||
Federal tax operating loss carryforwards | 592.6 | |||
Federal tax operating loss carryforwards, deferred tax asset value | 124.4 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 1.3 | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local Tax | 58.3 | |||
Federal tax operating loss carryforwards, to be expired 2023 | 125.6 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 22 | 21.9 | 22 | |
Income Tax Uncertainties [Abstract] | ||||
Balance, beginning of year | 22.2 | 31.4 | 27.6 | |
Change in tax positions for the current year | 0 | 1 | 1.2 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0.3 | 2.6 | ||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (0.2) | |||
Change related to decrease in federal tax rate | 0 | 10.5 | 0 | |
Balance, end of year | 22.2 | 22 | 22.2 | 31.4 |
Tax Cuts and Jobs Act [Abstract] | ||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | 6.8 | |||
Reduction in Uncertain Tax Positions, Included in Provisional Net Charge | $ 10.5 | |||
Continuing Operations [Member] | ||||
Deferred: | ||||
Total | 9.4 | 26.7 | 61.7 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Income tax expense (benefit) | 9.4 | $ 26.7 | $ 61.7 | |
Interest Limitation [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Valuation Allowance | 15.3 | |||
Deferred tax assets: | ||||
Valuation allowance | $ (15.3) |
Stock-Based and Deferred Comp_3
Stock-Based and Deferred Compensation Plans Stock-Based Compensation Options & SARs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options and Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash received from awards exercised | $ 0.2 | $ 0.5 | $ 3.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Performance Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of Shares Available for Grant | 2,500 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Compensation expense for the year | $ 5.6 | $ 5.9 | $ 5.1 | |
Intrinsic Value of awards outstanding | 0 | |||
Intrinsic Value of awards exercisable | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years | |||
Stock Options and Stock Appreciation Rights [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at January 1, | 181 | 390 | 776 | |
Outstanding at January 1, | $ 17.10 | $ 20 | $ 19.27 | |
Exercised | (19) | (35) | (236) | |
Exercised | $ 8.68 | $ 15.76 | $ 16.12 | |
Forfeited | (9) | (35) | (11) | |
Forfeited | $ 17.05 | $ 21.58 | $ 16.16 | |
Expired | (2) | (139) | (139) | |
Expired | $ 8.35 | $ 24.55 | $ 22.79 | |
Outstanding at December 31, | 151 | 181 | 390 | |
Outstanding at December 31, | $ 18.29 | $ 17.10 | $ 20 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Expected to vest at December 31, | 151 | 181 | 390 | |
Expected to vest at December 31, | $ 18.29 | $ 17.10 | $ 20 | |
Exercisable at December 31, | 151 | 181 | 330 | |
Exercisable at December 31, | $ 18.29 | $ 17.10 | $ 20.56 | |
Compensation expense for the year | $ 0 | $ 0.2 | $ 0.4 | |
Tax benefit related to compensation expense | 0 | (0.1) | (0.1) | |
Intrinsic value of awards exercised | 0.1 | 0.2 | 1.8 | |
Cash received from awards exercised | 0.2 | 0.5 | 3.8 | |
Grant date fair value of awards vested | 0 | 0.3 | 0.5 | |
Unrecognized Compensation | $ 0 | |||
Performance Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Compensation expense for the year | $ 2.1 | 3.9 | 3.6 | |
Tax benefit related to compensation expense | (0.5) | $ (1.4) | $ (1.3) | |
Unrecognized Compensation | $ 7.7 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | [1] | 288 | 245 | 307 |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||
Compensation expense for the year | $ 3.5 | $ 1.8 | $ 1.1 | |
Tax benefit related to compensation expense | (0.8) | $ (0.6) | $ (0.4) | |
Unrecognized Compensation | $ 4 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 245 | 96 | 106 | |
[1] | Assumes the maximum number of awards that can be earned if the performance conditions are achieved. |
Stock-Based and Deferred Comp_4
Stock-Based and Deferred Compensation Plans Oustanding and Exercisable Awards (Details) - $ / shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding Shares | 151 | |||
Exercisable Shares | 151 | |||
$14.55 to $17.05 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding Shares | 123 | |||
Outstanding Weighted Average Exercise Price Per Share | $ 17.04 | |||
Exercisable Shares | 123 | |||
Exercisable Weighted Average Exercise Price Per Share | $ 17.04 | |||
$23.75 to $26.05 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Outstanding Shares | 28 | |||
Outstanding Weighted Average Exercise Price Per Share | $ 23.83 | |||
Exercisable Shares | 28 | |||
Exercisable Weighted Average Exercise Price Per Share | $ 23.83 | |||
Stock Options and Stock Appreciation Rights [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | 18.29 | $ 17.10 | $ 20 | $ 19.27 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 18.29 | $ 17.10 | $ 20.56 |
Stock-Based and Deferred Comp_5
Stock-Based and Deferred Compensation Plans Performance Unit Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Compensation expense for the year | $ 5.6 | $ 5.9 | $ 5.1 | |
Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Non-vested at January 1, | 871 | 954 | 721 | |
Non-vested at January 1, | $ 17.30 | $ 15.89 | $ 16.77 | |
Granted | [1] | 288 | 245 | 307 |
Granted | $ 17.60 | $ 22.03 | $ 15.45 | |
Vested | (308) | (229) | (51) | |
Vested | $ 15.45 | $ 16.74 | $ 22.75 | |
Forfeited | (159) | (99) | (23) | |
Forfeited | $ 15.45 | $ 16.62 | $ 22.35 | |
Non-vested at December 31, | 692 | 871 | 954 | |
Non-vested at December 31, | $ 18.67 | $ 17.30 | $ 15.89 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Compensation expense for the year | $ 2.1 | $ 3.9 | $ 3.6 | |
Tax benefit related to compensation expense | (0.5) | (1.4) | (1.3) | |
Grant date fair value of awards vested | 4.7 | $ 3.8 | $ 1.2 | |
Unrecognized Compensation | $ 7.7 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | |||
[1] | Assumes the maximum number of awards that can be earned if the performance conditions are achieved. |
Stock-Based and Deferred Comp_6
Stock-Based and Deferred Compensation Plans Time Based Restricted Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Compensation expense for the year | $ 5.6 | $ 5.9 | $ 5.1 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Non-vested at January 1, | 164 | 106 | 47 |
Non-vested at January 1, | $ 18.57 | $ 16.75 | $ 19.59 |
Granted | 245 | 96 | 106 |
Granted | $ 17.05 | $ 20.78 | $ 16.75 |
Awards converted pursuant to Hawaiian Telcom acquisition | 149 | 0 | 0 |
Awards converted pursuant to Hawaiian Telcom acquisition | $ 15.70 | $ 0 | $ 0 |
Vested | (61) | (38) | (47) |
Vested | $ 18.08 | $ 19.10 | $ 19.59 |
Non-vested at December 31, | 497 | 164 | 106 |
Non-vested at December 31, | $ 17.02 | $ 18.57 | $ 16.75 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Compensation expense for the year | $ 3.5 | $ 1.8 | $ 1.1 |
Tax benefit related to compensation expense | (0.8) | (0.6) | (0.4) |
Grant date fair value of awards vested | 1.1 | $ 0.7 | $ 0.9 |
Unrecognized Compensation | $ 4 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | ||
Hawaiian Telcom Holdco, Inc. [Member] | Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Restructuring and Severance Cha
Restructuring and Severance Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 02, 2018 | |
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | $ 14.5 | $ 11.2 | $ 14.5 | $ 11.2 | $ 1.1 | |||||
Charges | $ 3.4 | $ 4.6 | 0.3 | $ 3.5 | $ 3.6 | 25.6 | 8.3 | 32.7 | 11.9 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restructuring Liabilities | $ 3.8 | |||||||||
Utilizations | (16.4) | (29.4) | (1.8) | |||||||
Ending balance | 10.2 | 14.5 | 10.2 | 14.5 | 11.2 | |||||
Restructuring liabilities included in other current liabilities | 9.6 | 12 | 9.6 | 12 | ||||||
Restructuring liabilities included in other noncurrent liabilities | 0.6 | 2.5 | 0.6 | 2.5 | ||||||
Entertainment and Communications [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | 12.3 | 7.5 | 12.3 | 7.5 | 0.8 | |||||
Charges | 3.1 | 27.6 | 7.7 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restructuring Liabilities | 3.8 | |||||||||
Utilizations | (10.6) | (22.8) | (1) | |||||||
Ending balance | 8.6 | 12.3 | 8.6 | 12.3 | 7.5 | |||||
IT Services and Hardware [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | 2.2 | 3 | 2.2 | 3 | 0.3 | |||||
Charges | 4.9 | 5.1 | 3.3 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restructuring Liabilities | 0 | |||||||||
Utilizations | (5.8) | (5.9) | (0.6) | |||||||
Ending balance | 1.3 | 2.2 | 1.3 | 2.2 | 3 | |||||
Corporate Segment [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | 0 | 0.7 | 0 | 0.7 | 0 | |||||
Charges | 0.3 | 0 | 0.9 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restructuring Liabilities | 0 | |||||||||
Utilizations | 0 | (0.7) | (0.2) | |||||||
Ending balance | 0.3 | 0 | 0.3 | 0 | 0.7 | |||||
Employee Severance [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | 14.4 | 11 | 14.4 | 11 | 0.2 | |||||
Charges | 7.5 | 32.7 | 12.5 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restructuring Liabilities | 3.8 | |||||||||
Utilizations | (16.2) | (29.3) | (1.7) | |||||||
Ending balance | 9.5 | 14.4 | 9.5 | 14.4 | 11 | |||||
Lease Abandonment [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | 0.1 | 0.2 | 0.1 | 0.2 | 0.8 | |||||
Charges | 0.8 | 0 | (0.5) | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restructuring Liabilities | 0 | |||||||||
Utilizations | (0.2) | (0.1) | (0.1) | |||||||
Ending balance | 0.7 | 0.1 | 0.7 | 0.1 | 0.2 | |||||
Contract Terminations [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | $ 0 | $ 0 | 0 | 0 | 0.1 | |||||
Charges | 0 | 0 | (0.1) | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Restructuring Liabilities | $ 0 | |||||||||
Utilizations | 0 | 0 | 0 | |||||||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Operating Segments | 2 | 2 | 2 | |||||||||
Increases (Decreases) in Total Assets | $ 542.6 | |||||||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | $ 47.5 | $ 12.2 | 47.5 | $ 12.2 | ||||||||
Deferred Tax Liabilities, Net, Noncurrent | 11.4 | 11.2 | 11.4 | 11.2 | ||||||||
Revenue | 399 | $ 386.7 | $ 296.8 | $ 295.7 | 301.2 | $ 255.5 | $ 259.4 | $ 249.6 | 1,378.2 | 1,065.7 | $ 1,017.6 | |
Operating income | 24.4 | 14.5 | $ 20.2 | $ 24.2 | 16.9 | $ 15.9 | $ 24.4 | $ (1.8) | 83.3 | 55.4 | 98.8 | |
Expenditures for long-lived assets | 220.6 | 210.5 | 286.4 | |||||||||
Depreciation and amortization | 252 | 193 | 182.2 | |||||||||
Assets | 2,730.2 | 2,187.6 | 2,730.2 | 2,187.6 | ||||||||
Entertainment and Communications [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Increases (Decreases) in Total Assets | 787.4 | |||||||||||
Revenue | 853.4 | 706.1 | 691.3 | |||||||||
Operating income | 103.3 | 86.1 | 100.1 | |||||||||
Expenditures for long-lived assets | 186.3 | 260.8 | ||||||||||
Depreciation and amortization | 210.8 | 163.7 | 159.1 | |||||||||
Assets | 1,898.8 | 1,111.4 | 1,898.8 | 1,111.4 | ||||||||
IT Services and Hardware [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Increases (Decreases) in Total Assets | (14.6) | |||||||||||
Revenue | 550.9 | 385.1 | 352.7 | |||||||||
Operating income | 17.2 | 5.3 | 17.4 | |||||||||
Expenditures for long-lived assets | 25.4 | |||||||||||
Depreciation and amortization | 41 | 29.1 | 23 | |||||||||
Assets | 468.1 | 482.7 | 468.1 | 482.7 | ||||||||
Corporate Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Increases (Decreases) in Total Assets | (230.2) | |||||||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 47.5 | 12.2 | 47.5 | 12.2 | ||||||||
Deferred Tax Liabilities, Net, Noncurrent | 11.4 | 11.2 | 11.4 | 11.2 | ||||||||
Operating income | (37.2) | (36) | (18.7) | |||||||||
Expenditures for long-lived assets | 0.2 | 0 | 0.2 | |||||||||
Depreciation and amortization | 0.2 | 0.2 | 0.1 | |||||||||
Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | (26.1) | (25.5) | (26.4) | |||||||||
Intersegment Eliminations [Member] | Entertainment and Communications [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 22.3 | 21.2 | 21 | |||||||||
Intersegment Eliminations [Member] | IT Services and Hardware [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 3.8 | 4.3 | 5.4 | |||||||||
Intersegment Eliminations [Member] | Corporate Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | 363.3 | $ 593.5 | 363.3 | 593.5 | ||||||||
Sales [Member] | Intersegment Eliminations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 26.1 | 25.5 | 26.4 | |||||||||
Continuing Operations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Expenditures for long-lived assets | 377.5 | 286.4 | ||||||||||
Depreciation and amortization | 252 | 193 | $ 182.2 | |||||||||
Expenditures for Long-Lived Assets, Including Acquisitions of Businesses [Member] | Entertainment and Communications [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Expenditures for long-lived assets | [1] | 408 | ||||||||||
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] | 29.2 | $ 191.2 | |||||||||
Expenditures for Long-Lived Assets, Including Acquisitions of Businesses [Member] | Continuing Operations [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Expenditures for long-lived assets | [1] | 437.4 | ||||||||||
Hawaiian Telcom Holdco, Inc. [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue Contributed from Acquired Companies | $ 87.9 | $ 87.1 | $ 159.2 | |||||||||
[1] | Includes cost of acquisitions |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | 19 Months Ended | |||||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Oct. 06, 2017 | Oct. 02, 2017 | Sep. 30, 2013 | |
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Revenues | $ 399 | $ 386.7 | $ 296.8 | $ 295.7 | $ 301.2 | $ 255.5 | $ 259.4 | $ 249.6 | $ 1,378.2 | $ 1,065.7 | $ 1,017.6 | |||||
Operating (loss) income | 24.4 | 14.5 | 20.2 | 24.2 | 16.9 | 15.9 | 24.4 | (1.8) | 83.3 | 55.4 | 98.8 | |||||
Net income (loss) | $ (30) | $ (17.7) | $ (13.8) | $ (8.3) | $ (11.9) | $ (11) | $ 2.3 | $ 60.6 | $ (69.8) | $ 40 | $ 103 | |||||
Earnings Per Share, Basic | $ (0.65) | $ (0.41) | $ (0.39) | $ (0.26) | $ (0.34) | $ (0.32) | $ (0.01) | $ 1.38 | $ (1.73) | $ 0.70 | $ 2.20 | |||||
Earnings Per Share, Diluted | $ (0.65) | $ (0.41) | $ (0.39) | $ (0.26) | $ (0.34) | $ (0.32) | $ (0.01) | $ 1.37 | $ (1.73) | $ 0.70 | $ 2.20 | |||||
Transaction and integration cost | $ 4.3 | $ 13.3 | $ 2.7 | $ 2.2 | $ 4.1 | $ 12.1 | $ 1.7 | $ 0.6 | $ 22.5 | $ 18.5 | $ 0 | |||||
Interest expense | 131.5 | 85.2 | 75.7 | |||||||||||||
Marketable Securities, Realized Gain (Loss) | 117.7 | 0 | 117.7 | 157 | ||||||||||||
Loss (Gain) on Extinguishment of Debt | 1.3 | 1.3 | 3.2 | 19 | ||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||
Restructuring and severance related charges | 3.4 | 4.6 | 0.3 | 3.5 | $ 3.6 | $ 25.6 | 8.3 | 32.7 | $ 11.9 | |||||||
Tax Cuts And Jobs Act Of 2017, Incomplete Accounting, Change In Tax Rate, Deferred Tax Asset, Provisional Income Tax Expense | 6.8 | |||||||||||||||
Hawaiian Telcom Holdco, Inc. [Member] | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Transaction and integration cost | 19.2 | 8 | $ 27.2 | |||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||
Revenue of acquiree since acquisition date included in consolidated statement of income | 87.9 | 87.1 | 159.2 | |||||||||||||
Net income of acquiree since acquisition date included in consolidated statement of income | 1.2 | (0.5) | ||||||||||||||
OnX Holdings LLC [Member] | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Transaction and integration cost | $ 0.5 | $ 8.6 | $ 8.1 | |||||||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||||||||||
Revenue of acquiree since acquisition date included in consolidated statement of income | 59.1 | 49.3 | 45.3 | 45.3 | 53 | |||||||||||
Net income of acquiree since acquisition date included in consolidated statement of income | $ 2.1 | $ (1) | $ (4.3) | $ (2.7) | 11.5 | |||||||||||
Tranche B Term Loan due 2024 [Member] | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Debt Instrument, Face Amount | $ 600 | |||||||||||||||
8% Senior Notes due 2025 [Member] | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Debt Instrument, Face Amount | $ 350 | |||||||||||||||
Tranche B Term Loan due 2020 [Member] | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Debt Instrument, Face Amount | $ 315.8 | $ 540 | ||||||||||||||
Revolving Credit Facility And Tranche B Term Loan due 2020 [Member] | ||||||||||||||||
Selected Quarterly Financial Information [Abstract] | ||||||||||||||||
Loss (Gain) on Extinguishment of Debt | $ 3.2 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |||
Capitalized interest expense | $ 1 | $ 0.7 | $ 0.7 |
Interest | 131.7 | 65.7 | 71.1 |
Income taxes, net of refunds | (13.8) | (12.9) | 1.7 |
Stock consideration for acquisition of Hawaiian Telcom | 121.2 | 0 | 0 |
Accrual of CyrusOne dividends | 0 | 0 | 1.1 |
Acquisition of property by assuming debt and other financing arrangements | 51.5 | 17.3 | 12 |
Acquisition of property on account | $ 35.8 | $ 12 | $ 23.8 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of Period | $ 10.4 | $ 9.9 | $ 12.4 |
Charge (Benefit) to Expenses | 8.4 | 6.9 | 9.4 |
(To) From Other Accounts | 0 | 0 | (2) |
Deductions | 5.8 | 6.4 | 9.9 |
End of Period | 13 | 10.4 | 9.9 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of Period | 45.5 | 54.4 | 58.4 |
Charge (Benefit) to Expenses | 13.1 | (9.2) | (3.6) |
(To) From Other Accounts | (0.4) | 0.3 | (0.4) |
Deductions | 0 | 0 | 0 |
End of Period | $ 58.2 | $ 45.5 | $ 54.4 |