Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | |||
Entity Registrant Name | CINCINNATI BELL INC. | ||
Entity Central Index Key | 0000716133 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 50,529,765 | ||
Entity Public Float | $ 0.2 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity File Number | 1-8519 | ||
Entity Tax Identification Number | 31-1056105 | ||
Entity Address, Address Line One | 221 East Fourth Street | ||
Entity Address, City or Town | Cincinnati | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45202 | ||
City Area Code | 513 | ||
Local Phone Number | 397-9900 | ||
Entity Incorporation, State or Country Code | OH | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement relating to the Company’s 2020 Annual Meeting of Shareholders are incorporated by reference into Part III of this report to the extent described herein. | ||
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Trading Symbol | CBB | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Common Shares ($0.01 par value) | ||
Cumulative Convertible Preferred Shares [Member] | |||
Class of Stock [Line Items] | |||
Trading Symbol | CBB.PB | ||
Security Exchange Name | NYSE | ||
Title of 12(b) Security | Cumulative Convertible Preferred Stock |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 11.6 | $ 15.4 |
Receivables, less allowances of $14.3 and $13.0 | 307.7 | 342.8 |
Inventory, materials and supplies | 44.6 | 46.5 |
Prepaid expenses | 28.3 | 30.7 |
Other current assets | 11.6 | 10.5 |
Total current assets | 403.8 | 445.9 |
Property, plant and equipment, net | 1,780.8 | 1,844 |
Operating lease right-of-use assets | 35.8 | 0 |
Goodwill | 160.5 | 157 |
Intangible assets, net | 155.4 | 168.1 |
Deferred income tax assets | 59.3 | 47.5 |
Other noncurrent assets | 58.2 | 67.7 |
Total assets | 2,653.8 | 2,730.2 |
Current liabilities | ||
Current portion of long-term debt | 22.3 | 20.2 |
Accounts payable | 284.6 | 331.9 |
Unearned revenue and customer deposits | 59.1 | 55.9 |
Accrued taxes | 29.1 | 24.8 |
Accrued interest | 26.8 | 26.8 |
Accrued payroll and benefits | 49 | 42.9 |
Other current liabilities | 52.6 | 39.2 |
Total current liabilities | 523.5 | 541.7 |
Long-term debt, less current portion | 1,901.3 | 1,909.6 |
Operating lease liabilities | 32.1 | 0 |
Pension and postretirement benefit obligations | 215.5 | 230.6 |
Pole license agreement obligation | 38 | 39.1 |
Deferred income tax liabilities | 11.7 | 11.4 |
Other noncurrent liabilities | 71.7 | 72.8 |
Total liabilities | 2,793.8 | 2,805.2 |
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, 2019 and 2018; liquidation preference $1,000 per share ($50 per depositary share) | 129.4 | 129.4 |
Common shares, $.01 par value; 96,000,000 shares authorized; 50,420,700 and 50,184,114 shares issued and outstanding at December 31, 2019 and 2018, respectively | 0.5 | 0.5 |
Additional paid-in capital | 2,676.2 | 2,680 |
Accumulated deficit | (2,776) | (2,709.4) |
Accumulated other comprehensive loss | (170.1) | (175.5) |
Total shareowners’ deficit | (140) | (75) |
Total liabilities and shareowners’ deficit | $ 2,653.8 | $ 2,730.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Financial Position [Abstract] | ||
Allowance for receivables | $ 14,300,000 | $ 13,000,000 |
Preferred Stock, Shares Authorized | 2,357,299 | 2,357,299 |
Preferred Stock, 6 3/4% Cumulative Convertible, Shares Issued | 155,250 | 155,250 |
Preferred Stock, 6 3/4% Cumulative Convertible, Shares Outstanding | 155,250 | 155,250 |
Preferred Stock, Depositary Shares | 3,105,000 | 3,105,000 |
Preferred Stock, Dividend Rate, Percentage | 6.75% | 6.75% |
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | $ 1,000 |
Preferred Stock Liquidation Depositary Per Share | $ 50 | $ 50 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 96,000,000 | 96,000,000 |
Common Stock, Shares, Issued | 50,420,700 | 50,184,114 |
Common Stock, Shares, Outstanding | 50,420,700 | 50,184,114 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenue | $ 1,536.7 | $ 1,378.2 | $ 1,065.7 |
Costs and expenses | |||
Cost of services and products, excluding items below | 784.6 | 698.7 | 531 |
Selling, general and administrative | 354.4 | 313.4 | 235.1 |
Depreciation and amortization | 304.9 | 252 | 193 |
Restructuring and severance related charges | 6.9 | 8.3 | 32.7 |
Transaction and integration costs | 12.8 | 22.5 | 18.5 |
Total operating costs and expenses | 1,463.6 | 1,294.9 | 1,010.3 |
Operating income | 73.1 | 83.3 | 55.4 |
Interest expense | 139.6 | 131.5 | 85.2 |
Loss on extinguishment of debt, net | 0 | 1.3 | 3.2 |
Other components of pension and postretirement benefit plans expense | 11.2 | 12.5 | 16.6 |
Gain on sale of CyrusOne investment | 0 | 0 | (117.7) |
Other (income) expense, net | (0.5) | (1.6) | 1.4 |
(Loss) income before income taxes | (77.2) | (60.4) | 66.7 |
Income tax (benefit) expense | (10.6) | 9.4 | 26.7 |
Net (loss) income | (66.6) | (69.8) | 40 |
Preferred stock dividends | 10.4 | 10.4 | 10.4 |
Net (loss) income applicable to common shareowners | $ (77) | $ (80.2) | $ 29.6 |
Basic and diluted net (loss) earnings per common share | $ (1.53) | $ (1.73) | $ 0.70 |
Weighted-average common shares outstanding (millions) | |||
Basic | 50.4 | 46.3 | 42.2 |
Diluted | 50.4 | 46.3 | 42.4 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net (loss) income | $ (66.6) | $ (69.8) | $ 40 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gains on Investment in CyrusOne, net of tax of $4.4 | 0 | 0 | 8.3 |
Reclassification adjustment for gain on sale of Investment in CyrusOne included in net income, net of tax of ($41.3) | 0 | 0 | (76.4) |
Foreign currency translation gain (loss) | 3.7 | (6.5) | 0.2 |
Cash flow hedges: | |||
Unrealized loss on cash flow hedges arising during the period, net of tax of ($3.7), ($1.4) | (12.5) | (4.8) | 0 |
Reclassification adjustment for net losses included in net income, net of tax of $0.5, $0.3 | 1.7 | 0.9 | 0 |
Defined benefit plans: | |||
Net gain (loss) arising from remeasurement during the period, net of tax of $0.7, ($1.6), $0.8 | 2.5 | (5.5) | 2.8 |
Amortization of prior service benefits included in net income, net of tax of ($0.6), ($0.7), ($1.6) | (1.9) | (2.4) | (2.9) |
Amortization of net actuarial loss included in net income, net of tax of $3.6, $4.7, $7.9 | 11.9 | 16.4 | 14.3 |
Reclassification adjustment for pension settlement charges included in net income, net of tax of $0.0, $1.5 | 0 | 0.1 | 2.5 |
Total other comprehensive income (loss), net of tax | 5.4 | (1.8) | (51.2) |
Total comprehensive loss | $ (61.2) | $ (71.6) | $ (11.2) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized gains on Investment in CyrusOne, tax | $ 4.4 | ||
Reclassification adjustment for gain on sale of Investment in CyrusOne included in net income, tax | (41.3) | ||
Unrealized loss on cash flow hedges arising during the period, tax | $ (3.7) | $ (1.4) | |
Reclassification adjustment for net losses included in net income, tax | 0.5 | 0.3 | |
Net gain (loss) arising from remeasurement during the period, tax | 0.7 | (1.6) | 0.8 |
Amortization of prior service benefits included in net income, tax | (0.6) | (0.7) | (1.6) |
Amortization of net actuarial loss included in net income, tax | $ 3.6 | 4.7 | 7.9 |
Reclassification adjustment for pension settlement charges included in net income, tax | $ 0 | $ 1.5 |
Consolidated Statements of Shar
Consolidated Statements of Shareowners' Deficit - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance, Shareowners' Equity (Deficit) | $ (75) | $ (117.9) | $ (75) | $ (117.9) | $ (101.4) | |||
Net income (loss) | $ (20.6) | (26.9) | $ (30) | (8.3) | (66.6) | (69.8) | 40 | |
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | [1] | 0 | ||||||
Other comprehensive income (loss) | 5.4 | (1.8) | (51.2) | |||||
Shares issued under employee plans | 0 | 0.2 | 0.5 | |||||
Shares purchased under employee plans and other | (0.8) | (2.1) | (1.3) | |||||
Stock-based compensation | 7.4 | 5.6 | 5.9 | |||||
Dividends on preferred stock | (10.4) | (10.4) | (10.4) | |||||
Stock consideration for acquisition of Hawaiian Telcom | $ 121.2 | |||||||
Stock consideration for acquisition of Hawaiian Telcom, Shares | 7.7 | |||||||
Ending Balance, Shareowners' Equity (Deficit) | (140) | (75) | (140) | $ (75) | (117.9) | |||
Cumulative Convertible Preferred Shares [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance, Shareowners' Equity (Deficit) | $ 129.4 | $ 129.4 | $ 129.4 | $ 129.4 | $ 129.4 | |||
Beginning Balance, Shares | 3.1 | 3.1 | 3.1 | 3.1 | 3.1 | |||
Ending Balance, Shareowners' Equity (Deficit) | $ 129.4 | $ 129.4 | $ 129.4 | $ 129.4 | $ 129.4 | |||
Ending Balance, Shares | 3.1 | 3.1 | 3.1 | 3.1 | 3.1 | |||
Common Shares [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance, Shareowners' Equity (Deficit) | $ 0.5 | $ 0.4 | $ 0.5 | $ 0.4 | $ 0.4 | |||
Beginning Balance, Shares | 50.2 | 42.2 | 50.2 | 42.2 | 42.1 | |||
Shares issued under employee plans | $ 0 | $ 0 | $ 0 | |||||
Shares issued under employee plans, Shares | 0.2 | 0.3 | 0.1 | |||||
Stock consideration for acquisition of Hawaiian Telcom | $ 0.1 | |||||||
Stock consideration for acquisition of Hawaiian Telcom, Shares | 7.7 | |||||||
Ending Balance, Shareowners' Equity (Deficit) | $ 0.5 | $ 0.5 | $ 0.5 | $ 0.5 | $ 0.4 | |||
Ending Balance, Shares | 50.4 | 50.2 | 50.4 | 50.2 | 42.2 | |||
Additional Paid-in Capital [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance, Shareowners' Equity (Deficit) | $ 2,680 | $ 2,565.6 | $ 2,680 | $ 2,565.6 | $ 2,570.9 | |||
Shares issued under employee plans | 0.2 | 0.5 | ||||||
Shares purchased under employee plans and other | (0.8) | (2.1) | (1.3) | |||||
Stock-based compensation | 7.4 | 5.6 | 5.9 | |||||
Dividends on preferred stock | (10.4) | (10.4) | (10.4) | |||||
Stock consideration for acquisition of Hawaiian Telcom | 121.1 | |||||||
Ending Balance, Shareowners' Equity (Deficit) | $ 2,676.2 | $ 2,680 | 2,676.2 | 2,680 | 2,565.6 | |||
Accumulated Deficit [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance, Shareowners' Equity (Deficit) | (2,709.4) | (2,639.6) | (2,709.4) | (2,639.6) | (2,711.8) | |||
Net income (loss) | (66.6) | (69.8) | 40 | |||||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | [1] | 32.2 | ||||||
Ending Balance, Shareowners' Equity (Deficit) | (2,776) | (2,709.4) | (2,776) | (2,709.4) | (2,639.6) | |||
Accumulated Other Comprehensive Loss [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance, Shareowners' Equity (Deficit) | $ (175.5) | $ (173.7) | (175.5) | (173.7) | (90.3) | |||
Reclassification adjustment to accumulated deficit for stranded other comprehensive income taxes arising from tax reform | [1] | (32.2) | ||||||
Other comprehensive income (loss) | 5.4 | (1.8) | (51.2) | |||||
Ending Balance, Shareowners' Equity (Deficit) | $ (170.1) | $ (175.5) | $ (170.1) | $ (175.5) | $ (173.7) | |||
[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 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net (loss) income | $ (66.6) | $ (69.8) | $ 40 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 304.9 | 252 | 193 |
Loss on extinguishment of debt, net | 0 | 1.3 | 3.2 |
Gain on sale of CyrusOne investment | 0 | 0 | (117.7) |
Provision for loss on receivables | 12.5 | 8.4 | 6.9 |
Noncash portion of interest expense | 6.2 | 5.4 | 2.8 |
Deferred income taxes | (10.9) | 6.9 | 26.3 |
Pension and other postretirement payments (in excess of) less than expense | (0.1) | (7.2) | 6.4 |
Stock-based compensation | 7.4 | 5.6 | 5.9 |
Other, net | (5) | (3.5) | 2.5 |
Changes in operating assets and liabilities: | |||
Decrease (increase) in receivables | 27.6 | (83.1) | 21.3 |
Decrease (increase) in inventory, materials, supplies, prepaid expenses and other current assets | 5 | 2.2 | (16.6) |
(Decrease) increase in accounts payable | (40) | 95.1 | 22.4 |
Increase in accrued and other current liabilities | 13 | 10.5 | 16.2 |
Decrease (increase) in other noncurrent assets | 9.3 | (0.9) | 1.4 |
Decrease in other noncurrent liabilities | (4.2) | (8.2) | (10.6) |
Net cash provided by operating activities | 259.1 | 214.7 | 203.4 |
Cash flows from investing activities | |||
Capital expenditures | (223.8) | (220.6) | (210.5) |
Proceeds from sale of Investment in CyrusOne | 0 | 0 | 140.7 |
Acquisitions of businesses, net of cash acquired | 0 | (216.8) | (167) |
Other, net | 0.5 | 0 | 0 |
Net cash used in investing activities | (223.3) | (437.4) | (236.8) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 0 | 0 | 943 |
Net (decrease) increase in corporate credit and receivables facilities with initial maturities less than 90 days | (6.1) | 194.6 | (89.5) |
Repayment of debt | (21.5) | (328.7) | (403) |
Debt issuance costs | (0.8) | (11.7) | (19.1) |
Dividends paid on preferred stock | (10.4) | (10.4) | (10.4) |
Other, net | (0.8) | (1.9) | (0.8) |
Net cash (used in) provided by financing activities | (39.6) | (158.1) | 420.2 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | (0.3) | 0 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (3.8) | (381.1) | 386.8 |
Cash, cash equivalents and restricted cash at beginning of year | 15.4 | 396.5 | 9.7 |
Cash, cash equivalents and restricted cash at end of year | $ 11.6 | $ 15.4 | $ 396.5 |
Description of Business and Acc
Description of Business and Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Accounting Policies | 1. Description of Business and Accounting Policies Description of Business — Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provides diversified telecommunications and technology services. The Company generates a large portion of its revenue by serving customers in 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, 2019, we operate our business through the following segments: Entertainment and Communications and IT Services and Hardware. The Company has approximately 4,400 employees as of December 31, 2019. Approximately 30% 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. 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, “Revenue Recognition”; 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. 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 25% and 18% of the outstanding accounts receivable balance at December 31, 2019 and 2018, respectively. Unbilled receivables arise from services rendered but not yet billed. As of December 31, 2019 and 2018, unbilled receivables totaled $15.3 million and $19.0 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 ASC 860, "Transfers and Servicing." The fees recorded in relation to such sales of accounts receivable were $0.7 million and $0.1 million in 2019 and 2018, respectively, and are included in "Selling, general, and administrative" in the Consolidated Statements of Operations. As of December 31, 2019 and 2018, the outstanding balance of receivables sold under the terms of the factoring agreement were $44.7 million and $20.0 million, respectively. See Note 8 for further information related to the Receivables 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, “Business Combinations”. 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 allocated at the business segment level. 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 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. The Company no longer has an investment in CyrusOne Inc. 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 2019, 2018 and 2017. 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 $6.6 million and $5.8 million as of December 31, 2019 and 2018, 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 — Effective January 1, 2019, the Company adheres to lease accounting principles described in ASC 842, “Leases.” Under ASC 842, the Company determines if an arrangement is a lease at inception based on the facts and circumstances present. In lease transactions where the Company acts as the lessor, the lease component is accounted for in accordance with ASC 842, and the non-lease component is accounted for in accordance with ASC 606. Although separation of lease and non-lease components is required, certain practical expedients are available that release the Company from this requirement. Adoption of the practical expedient allows the Company to account for each lease component and the related non-lease component together as a single component provided that the timing and patterns of revenue recognition for the components are the same and the combined, single unit of account would be classified as an operating lease. The Company's operating leases for certain services that include Customer Premise Equipment, including handsets and set-top boxes, have lease and non-lease components. In these arrangements, management has concluded that the non-lease components are the predominant characteristic, and, as a result, the Company has elected to account for these arrangements as one single non-lease component recorded as "Revenue" in the Consolidated Statements of Operations in accordance with ASC 606. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. The Company's lease terms include options to extend, terminate or buyout the lease when it is reasonably certain that we will exercise that option. Leases that have contract prices based on variable factors, such as power usage, are recognized as variable lease expense in the period in which the obligation for those payments are incurred. Lease expense for variable lease payments is recognized on a straight-line basis over the lease term. 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 — The Company adheres to revenue recognition principles described in ASC 606. 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. Revenue derived from foreign operations is approximately 5%, 6% and 3% of consolidated revenue in 2019, 2018 and 2017, respectively. 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 either shipped or delivered in accordance with the terms of the contract. 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, the Company evaluated whether it is the principal (in which case we report revenues on a gross basis) or the agent (in which case we report revenues on a net basis). 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. Advertising Expenses — Costs related to advertising are expensed as incurred. Advertising costs were $18.6 million, $14.2 million, and $13.5 million in 2019, 2018, and 2017, 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 2019, 2018, and 2017 were $29.2 million, $22.2 million and $16.8 million, respectively. The amounts reported as expense for 2019, 2018 and 2017 were $32.5 million, $23.4 million, and $17.7 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 remaining 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 plans (approximately 8-11 years) and average remaining life expectancy of retirees for the Cincinnati postretirement plans (approximately 14-17 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 ASC 805, 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. 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, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recently Issued Accounting Standards | 2. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“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 $222.8 million for 2017. Changes in accounting policies related to variable consideration or rebates did not have a material effect on the Company's consolidated financial statements. Fulfillment and acquisition costs that are now recorded as an asset and amortized on a monthly basis decreased expense by $0.7 million for 2017. Additionally, as a result of the adoption of ASC 606 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 2017 by $0.11 and $0.12, respectively. See Note 3 for additional disclosures as a result of adopting ASC Topic 606. In February 2016, the FASB issued ASU 2016-02, Leases, which represents a wholesale change to lease accounting. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2016-02 but did not change the core principal. The standard introduces a lessee model that brings most leases onto 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. The Company adopted the standard and all subsequent amendments effective January 1, 2019, using the modified retrospective transition method, which did not require the Company to adjust comparative periods. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical assessments of: (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition to the package of practical expedients, the Company elected the practical expedients of using hindsight in determining the lease term and in assessing impairment of the entity’s right-of-use assets as well as not to assess whether existing or expired land easements that were not previously accounted for as leases under ASC 840 are or contain a lease under ASC 842. Upon adoption of this standard, the Company recognized operating lease right-of-use assets of $38.3 million and operating lease liabilities of $46.2 million in the Consolidated Balance Sheets for 2019. The Company elected the practical expedient outlined in ASU 2018-11 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 adoption of ASU 2016-02 had no impact to accumulated deficit. The Company implemented internal controls and procured a third-party lease accounting software solution to facilitate the ongoing accounting and financial reporting requirements of the ASU. The standard did not have a material impact on our Consolidated Statements of Operations for 2019. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. See Note 9 for required disclosures as a result of adopting ASC 842. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which replaces the incurred loss model with the current expected credit loss (“CECL”) model to estimate credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures. The CECL model requires a company to estimate credit losses expected over the life of the financial assets based on all relevant information including historical information, current conditions and reasonable and supportable forecasts that affect the collectability of the amounts. This standard is effective for public entities for fiscal years beginning after December 15, 2019. The standard requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 was amended in November 2018 by the provisions of ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, and in April 2019 by the provisions of ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, and in May 2019 by the provisions of ASU 2019-05, Financial Instruments – Credit Loses (Topic 326) and in November 2019 by the provisions of ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. The Company adopted the standard and all subsequent amendments on January 1, 2020. 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 $6.6 million and $6.0 million of other components of net benefit cost from "Cost of services and products" and “Selling, general and administrative,” respectively, to a new line below Operating income, "Other components of pension and postretirement benefit plans expense," on the Consolidated Statements of Operations for 2017. 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 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 ASC 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. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within Income Taxes (740) 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
Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. 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 commercial 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. Residential customers have implied month-to-month contracts, while commercial 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. 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. 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. The transaction price identified in the contract 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, 2019, 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 $37.3 million. Approximately 80% of this revenue is related to IRU contracts associated with the SEA-US (see Note 10). 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) 2020 $ 2.6 2021 2.5 2022 2.6 2023 2.5 2024 2.6 Thereafter 24.5 Entertainment and Communications The Company has identified four distinct performance obligations in the Entertainment and Communications segment, namely Data, Voice, Video and Other. For each of the Data, Voice and Video services, service is delivered to the customer continuously and in a substantially similar manner for each period of the agreement, the customer takes full control over the services as the service is delivered, and as such, Data, Voice and Video are identified to be a series of distinct services. 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, routed network services, SONET (Synchronous Optical Network), 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 residential and commercial 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 data and VoIP services, tailored solutions that include converged IP communications of data, voice, video and mobility applications, enterprise long distance, MPLS (Multi-Protocol Label Switching) and conferencing services. Cloud services include storage, backup, disaster recovery, SLA-based monitoring and management, cloud computing and cloud consulting. Consulting services provide customers with IT staffing, consulting and emerging technology solutions. Infrastructure Solutions includes the sale of hardware and maintenance contracts as well as installation projects. 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 vendor 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 are 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 or delivered in accordance with the terms of the contract . 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 in which the contract life is longer than one year. These fulfillment costs are amortized ratably over the expected life of the customer, which is representative of the expected period of benefit of the asset capitalized. The expected life of the customer is determined utilizing the average churn rate for each product. The Company calculates average churn based on the historical average customer life. We 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 is 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 Entertainment IT Services Entertainment IT Services Entertainment IT Services and and Total and and Total and and Total (dollars in millions) Communications Hardware Company Communications Hardware Company Communications Hardware Company 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 Additions 3.6 3.5 7.1 10.0 1.6 11.6 13.6 5.1 18.7 Amortization (10.1 ) (1.9 ) (12.0 ) (8.2 ) (1.3 ) (9.5 ) (18.3 ) (3.2 ) (21.5 ) Balance as of December 31, 2019 8.0 4.1 12.1 14.8 2.3 17.1 22.8 6.4 29.2 The Company recognizes a liability for cash received upfront for IRU contracts. At December 31, 2019 and 2018, $1.5 million and $1.4 million, respectively, of contract liabilities were included in "Other current liabilities." At December 31, 2019 and 2018, $27.1 million and $28.0 million, respectively, 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) 2019 2018 2017 Data $ 475.0 $ 402.6 $ 344.5 Video 203.0 183.3 148.9 Voice 284.9 244.9 199.0 Other 32.8 22.6 13.7 Total Entertainment and Communications 995.7 853.4 706.1 Consulting 152.6 138.7 77.0 Cloud 92.1 98.0 81.0 Communications 198.7 178.5 160.6 Infrastructure Solutions 124.0 135.7 66.5 Total IT Services and Hardware 567.4 550.9 385.1 Intersegment revenue (26.4 ) (26.1 ) (25.5 ) Total revenue $ 1,536.7 $ 1,378.2 $ 1,065.7 In the first quarter of 2019, the Company determined that certain revenue in the IT Services and Hardware segment associated with nonrecurring projects is better aligned with Infrastructure Solutions, rather than Consulting, where it was previously reported. As a result, the Company reclassed revenue of $26.6 million and $12.3 million from Consulting to Infrastructure Solutions for the twelve months ended December 31, 2018 and 2017, respectively. This reclassification of revenue had no impact on the Consolidated Statements of Operations. The following table presents revenues disaggregated by contract type: Year ended December 31, (dollars in millions) 2019 2018 2017 Entertainment and Communications Products and services transferred at a point in time $ 31.7 $ 25.3 $ 20.6 Products and services transferred over time 942.4 805.8 664.3 Intersegment revenue 21.6 22.3 21.2 Total Entertainment and Communications 995.7 853.4 706.1 IT Services and Hardware Products and services transferred at a point in time 138.7 142.9 80.8 Products and services transferred over time 423.9 404.2 300.0 Intersegment revenue 4.8 3.8 4.3 Total IT Services and Hardware 567.4 550.9 385.1 Total Revenue Total products and services transferred at a point in time 170.4 168.2 101.4 Total products and services transferred over time 1,366.3 1,210.0 964.3 Total revenue $ 1,536.7 $ 1,378.2 $ 1,065.7 |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | 4. 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 17,000 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 $ 28.1 million in acquisition expenses related to the acquisition of Hawaiian Telcom, of which $ 0.9 million , $ 19.2 million and $ 8.0 million were recorded in 2019, 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, which 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 purchase price allocation to specific assets acquired and liabilities assumed is final for the Hawaiian Telcom and OnX transactions. The purchase price for Hawaiian Telcom and OnX have been allocated to individual assets acquired and liabilities assumed as follows: (dollars in millions) Hawaiian Telcom OnX Assets acquired Cash $ 4.3 $ 6.5 Receivables 24.8 69.9 Inventory, materials and supplies 6.7 9.0 Prepaid expenses and other current assets 5.9 2.8 Property, plant and equipment 697.6 11.6 Goodwill 10.2 133.1 Intangible assets 52.0 134.0 Deferred income tax asset 45.6 1.4 Other noncurrent assets 2.1 1.8 Total assets acquired 849.2 370.1 Liabilities assumed Accounts payable 60.0 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 21.8 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 30.8 1.5 Total liabilities assumed 509.7 203.7 Net assets acquired $ 339.5 $ 166.4 During 2019 and 2018, the Company recorded immaterial measurement period adjustments for Hawaiian Telcom. The offset of these adjustments were recorded as an increase to "Goodwill." During 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 and 2017 as if the acquisitions of OnX and Hawaiian Telcom had taken place as of the beginning of fiscal year 2016 and 2017, respectively. These pro forma 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 Revenue $ 1,556.5 $ 1,588.5 Net loss applicable to common shareholders (77.7 ) (84.6 ) Earnings per share: Basic and diluted loss per common share (1.55 ) (1.70 ) 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. Agreement and Plan of Merger with Brookfield On December 21, 2019, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which the Company will be acquired by an affiliate of the Brookfield Infrastructure Group (“Brookfield”), the infrastructure investment division of Brookfield Asset Management (the “Merger”). At the effective time of the Merger (the “Effective Time”), each of our issued and outstanding Common Shares will be converted into the right to receive $10.50 in cash per Common Share, without interest, and the 6 3 4 3 4 The consummation of the Merger is subject to customary closing conditions, including (i) the adoption of the Merger Agreement by the affirmative vote of the holders of at least two-thirds of all outstanding Common Shares and 6 3 / 4 % Cumulative Convertible Preferred Shares, voting as a single class; (ii) the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended and (iii) the receipt of any required consents or approvals from (a) the Committee on Foreign Investment in the United States, (b) the Federal Communications Commission, (c) state public service and state public utility commissions, and (d) local regulators in connection with the provision of telecommunications and media services; and (iv) the absence of any legal restraint preventing the consummation of the Merger. The Merger Agreement contains representations and warranties and covenants of the parties customary for a transaction of this nature. Among other things, the parties have agreed to use reasonable best efforts to obtain any required regulatory approvals. Until the earlier of the termination of the Merger Agreement and the Effective Time, the Company has agreed to operate its business in the ordinary course in all material respects and has agreed to certain other operating covenants and to not take certain specified actions prior to the consummation of the Merger, as set forth more fully in the Merger Agreement. The Company has also agreed to convene and hold a meeting of its shareholders for the purpose of obtaining the Shareholder Approval. Brookfield has obtained equity financing commitments from certain of its affiliates to fund the transactions contemplated by the Merger Agreement. The Merger Agreement requires Brookfield to use its commercially reasonable efforts to obtain the financing on the terms and conditions described in the financing commitments. The Company is entitled to specific performance to force Brookfield to close the transaction if all closing conditions are met. The Merger is expected to close by the end of 2020, although there can be no assurance that the Merger will occur by that date. As a result of the Merger, the Company will cease to be a publicly traded company. Unsolicited Proposal On January 22, 2020, the Company received an unsolicited, non-binding proposal from an infrastructure fund (the “Fund”) to acquire all of the outstanding Common Shares for $12.00 per share in cash (the “Proposal”). On January 23, 2020, the Company commenced discussions with the Fund regarding the Proposal following the Board of Directors having made the required determinations under the Merger Agreement that allow it to do so. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 5. 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, (in millions, except per share amounts) 2019 2018 2017 Numerator: Net (loss) income $ (66.6 ) $ (69.8 ) $ 40.0 Preferred stock dividends 10.4 10.4 10.4 Net (loss) income applicable to common shareowners - basic and diluted $ (77.0 ) $ (80.2 ) $ 29.6 Denominator: Weighted-average common shares outstanding - basic 50.4 46.3 42.2 Stock-based compensation arrangements — — 0.2 Weighted-average common shares outstanding - diluted 50.4 46.3 42.4 Basic and diluted net (loss) earnings per common share $ (1.53 ) $ (1.73 ) $ 0.70 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 years ended December 31, 2019 and 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 year ended December 31, 2017, awards under the Company’s stock-based compensation plans for common shares of 0.2 million, were excluded from the computation of diluted EPS as 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, 2019 | |
Property Plant And Equipment [Abstract] | |
Property, Plant and Equipment | 6. Property, Plant and Equipment Property, plant and equipment is comprised of the following: December 31, Depreciable (dollars in millions) 2019 2018 Lives (Years) Land and rights-of-way $ 117.2 $ 117.2 20 – Indefinite Buildings and leasehold improvements 315.4 305.2 5 – 40 Network equipment 4,044.6 3,913.3 2 – 50 Office software, furniture, fixtures and vehicles 229.3 216.3 2 – 14 Construction in process 38.9 47.1 n/a Gross value 4,745.4 4,599.1 Accumulated depreciation (2,964.6 ) (2,755.1 ) Property, plant and equipment, net $ 1,780.8 $ 1,844.0 Depreciation expense on property, plant and equipment, including assets accounted for as finance leases, totaled $290.2 million in 2019, $239.6 million in 2018 and $190.4 million in 2017. The portion of depreciation expense associated with cost of providing services was 87%, 85% and 84% in 2019, 2018 and 2017, 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. No asset impairment losses were recognized in 2019, 2018 or 2017 on property, plant and equipment. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. 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, December 31, December 31, December 31, December 31, December 31, (dollars in millions) 2019 2018 2019 2018 2019 2018 Goodwill, beginning balance $ 146.0 $ 148.8 $ 11.0 $ 2.2 $ 157.0 $ 151.0 Activity during the year Adjustments to prior year acquisitions — 0.7 1.4 — 1.4 0.7 Acquisitions — — — 8.8 — 8.8 Currency translations 2.1 (3.5 ) — — 2.1 (3.5 ) Goodwill, ending balance $ 148.1 $ 146.0 $ 12.4 $ 11.0 $ 160.5 $ 157.0 During 2018, goodwill in the Entertainment and Communications segment increased by $8.8 million due to the acquisition of Hawaiian Telcom. During 2019, the Company recorded immaterial measurement period adjustments for Hawaiian Telcom. For further information related to the acquisition, see Note 4. No impairment losses were recognized in goodwill for the years ended December 31, 2019, 2018 and 2017. The Company completed its most recent goodwill impairment testing in the fourth quarter of 2019 and determined that there was no impairment in the carrying value of this asset. Intangible Assets The Company’s intangible assets consisted of the following: December 31, 2019 December 31, 2018 Gross Gross Carrying Accumulated Net Carrying Accumulated Net (dollars in millions) Amount (a) Amortization Amount Amount (a) Amortization Amount Customer relationships $ 140.8 $ (28.4 ) $ 112.4 $ 139.4 $ (17.8 ) $ 121.6 Trade names 41.3 (6.0 ) 35.3 40.7 (2.8 ) 37.9 Technology 9.9 (2.2 ) 7.7 9.9 (1.3 ) 8.6 Total $ 192.0 $ (36.6 ) $ 155.4 $ 190.0 $ (21.9 ) $ 168.1 (a) Change in gross carrying amounts is due to foreign currency translation on intangible assets related to the OnX acquisition. For further information related to the acquisition, see Note 4. 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 amortization expense for intangible assets was $14.7 million, $12.4 million and $2.5 million in 2019, 2018 and 2017, respectively. No impairment losses were recognized on intangible assets for the years ended December 31, 2019, 2018 and 2017. 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) Year ended December 31, 2020 $ 14.5 2021 14.3 2022 14.0 2023 13.6 2024 13.4 Thereafter 85.6 Total $ 155.4 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | 8. Debt and Other Financing Arrangements The Company’s debt consists of the following: December 31, (dollars in millions) 2019 2018 Current portion of long-term debt: Credit Agreement - Tranche B Term Loan due 2024 $ 6.0 $ 6.0 Other financing arrangements 2.0 0.8 Finance lease liabilities 14.3 13.4 Current portion of long-term debt 22.3 20.2 Long-term debt, less current portion: Receivables Facility 131.5 176.6 Credit Agreement - Revolving Credit Facility 57.0 18.0 Credit Agreement - Tranche B Term Loan due 2024 586.5 592.5 7 1/4% 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 3.2 2.3 Finance lease liabilities 59.5 60.5 1,922.9 1,935.1 Net unamortized premium 1.3 1.7 Unamortized note issuance costs (22.9 ) (27.2 ) Long-term debt, less current portion 1,901.3 1,909.6 Total debt $ 1,923.6 $ 1,929.8 Credit Agreement In 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 seven-year 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, 2019, borrowings under the Credit Agreement's Revolving Credit Facility were $57.0 million, leaving $143.0 million available. The Revolving Credit Facility requires maintenance of a maximum consolidated secured leverage ratio of 3.50 to1.00 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. In addition, certain of our variable rate debt, including debt under the Credit Agreement and the Receivables Facility, uses LIBOR as one of the benchmarks for establishing the rate of interest and may be hedged with LIBOR-based interest rate derivatives. LIBOR is the subject of recent regulatory guidance and proposals for reform. These reforms and other pressures may cause LIBOR to be replaced with a new benchmark in 2021 or to perform differently than in the past. The consequences of these developments cannot be entirely predicted, but could include an increase in the cost of our variable rate indebtedness. 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). 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 2019, the Company executed amendments to 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 Interest on the Receivables Facility is based on the LIBOR rate plus 1.1%. The average interest rate on the Receivables Facility was 2.9% in 2019. 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 Receivables Facility includes an option for CBF to sell, rather than borrow against, certain receivables on a non-recourse basis. As of December 31, 2019, the outstanding balance of certain accounts receivable sold was $ 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 In 1993, the Company issued $50.0 million of 7 1/4% 1 4 1 4 1 4 1 4 1 4 1 4 1 4 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. 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% through September 14, 2020, (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. 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. Finance Lease Liabilities Finance lease liabilities 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 and other financing arrangements for the five years subsequent to December 31, 2019, and thereafter: Other financing (dollars in millions) Debt arrangements Year ended December 31, 2020 $ 6.0 $ 2.0 2021 137.5 2.0 2022 63.0 0.6 2023 28.3 0.6 2024 1,193.5 — Thereafter 437.9 — 1,866.2 5.2 Net unamortized premium 1.3 — Unamortized note issuance costs (22.9 ) — Total debt $ 1,844.6 $ 5.2 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. The Company incurred deferred financing costs of $0.8 million and $2.3 million in 2019 and 2018, respectively, related to amending and renewing revolving credit agreements. 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. The Company wrote-off deferred financing costs associated with the extinguishment of debt of $1.3 million and $2.1 million in 2018 and 2017, respectively. The Company records costs incurred in connection with obtaining revolving credit agreements as an asset. As of December 31, 2019 and 2018, deferred financing costs recorded to "Other non-current assets" totaled $3.1 million and $4.9 million, respectively. Amortization of deferred financing costs, included in "Interest expense" in the Consolidated Statements of Operations, totaled $6.4 million in 2019, $5.7 million in 2018, and $3.4 million in 2017. 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, 2019, 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 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. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 9. Leases Lessee Disclosures The Company primarily leases real estate for offices, retail stores and central offices, as well as equipment, cell towers and fleet vehicles. The Company leases its real estate for terms between 1 and 55 years, its equipment for terms between 2 and 6 years, its cell towers for terms between 4 and 21 years and its vehicles for terms of 5 years. Our leases have various expiration dates through 2066, some of which include options to extend the leases for up to 15 years, and some of which include options to terminate the leases within one year. Upon adoption of ASC 842 on January 1, 2019, the Company elected not to recognize leases with terms of one-year or less on the balance sheet. The Company's leases generally do not provide an implicit rate, and therefore the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease. Supplemental balance sheet information related to the Company's leases was as follows: (dollars in millions) Balance Sheet Location December 31, 2019 Operating lease assets, net of amortization Operating lease right-of-use assets $ 35.8 Finance lease assets, net of amortization Property, plant and equipment, net 33.2 Operating lease liabilities: Current operating lease liabilities Other current liabilities 10.9 Noncurrent operating lease liabilities Operating lease liabilities 32.1 Total operating lease liabilities 43.0 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 14.3 Noncurrent finance lease liabilities Long-term debt, less current portion 59.5 Total finance lease liabilities $ 73.8 Under ASC 840, the Company had $73.9 million of capital lease obligations at December 31, 2018. The components of lease expense were as follows: (dollars in millions) Year Ended December 31, 2019 Operating lease cost $ 13.2 Short-term lease cost 0.3 Variable lease cost 2.1 Finance lease cost: Depreciation on leased assets 8.3 Interest on lease liabilities 5.1 Total lease cost $ 29.0 Under ASC 840, the Company recorded lease expense of $18.4 million and $10.7 million in 2018 and 2017, respectively. Other information related to leases was as follows: (dollars in millions) Year Ended December 31, 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 5.1 Operating cash flows from operating leases $ 11.0 Financing cash flows from finance leases $ 14.4 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ 7.5 New finance leases $ 14.5 Weighted Average Remaining Lease Term Operating leases 7.93 years Finance leases 7.20 years Weighted Average Discount Rate Operating leases 6.94 % Finance leases 7.00 % Future minimum lease payments under non-cancellable leases as of December 31, 2019 are as follows: (dollars in millions) Operating Leases Finance Leases Year ended December 31, 2020 $ 13.3 $ 18.9 2021 8.3 14.5 2022 5.8 10.1 2023 4.7 8.2 2024 3.9 7.5 Thereafter 21.1 37.7 Total future minimum lease payments 57.1 96.9 Less imputed interest (14.1 ) (23.1 ) Total $ 43.0 $ 73.8 Lessor Disclosures The Company has operating leases related to its dark fiber arrangements for terms between 3 and 30 years. Our leases have various expiration dates through 2048, some of which include options to extend the lease. The Company recorded $3.1 million in lease income related to operating lease payments in 2019. The Company owns the underlying assets associated with its operating leases and records them in "Property, plant and equipment, net" on the Consolidated Balance Sheets. Future minimum lease payments to be received under non-cancellable leases as of December 31, 2019 are as follows: (dollars in millions) Operating Leases Year ended December 31, 2020 $ 2.7 2021 2.3 2022 1.7 2023 1.7 2024 1.7 Thereafter 17.0 Total future minimum lease payments 27.1 Less imputed interest (9.9 ) Total $ 17.2 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies 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. The agreement approved by the Hawaii Public Utilities Commission in October 2018 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, 2019, the Company has a liability recorded of $39.1 million related to the payments for the use of the poles, of which $1.1 million is recognized within "Other current liabilities" in the Consolidated Balance Sheets. As of December 31, 2018, the Company had 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 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) Year ended December 31, 2020 $ 0.7 2021 0.7 2022 3.5 2023 5.8 2024 5.8 Thereafter 57.8 Total future minimum financing obligation payments 74.3 Less imputed interest (33.8 ) Total $ 40.5 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 2019 and 2018, the Company incurred costs of $0.4 million and $1.7 million, respectively, 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, 2019 and 2018, the Company has a remaining obligation related to the sale of capacity and other services of $22.5 million and $23.0 million, respectively, 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) 2019 2018 Balance, beginning of period $ 9.1 $ 2.3 Hawaiian Telcom opening balance sheet adjustment (3.2 ) 6.6 Liabilities incurred 1.8 — Liabilities settled (0.7 ) (0.1 ) Accretion expense 0.1 0.3 Balance, end of period $ 7.1 $ 9.1 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 $10.5 million as of December 31, 2019. 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, 2019 or 2018. Purchase Commitments The Company has purchase commitments and blanket purchase requisitions related to certain goods and services. These agreements typically range from one to three years. As of December 31, 2019 and 2018, the minimum commitments associated with these arrangements that are noncancellable in nature, are not considered significant. 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, 2019, cannot be reasonably determined. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 11. 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. In the second quarter of 2018, the Company entered into one forward starting non-amortizing interest rate swap with a 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. In the first quarter of 2019, the Company entered into three forward starting non-amortizing interest rate swaps, with a notional amount of $89.0 million each, to convert variable rate debt to fixed rate debt. The interest rate swaps became effective in March 2019 and expire in March 2024. The interest rate swaps result in interest payments based on an average fixed rate per swap of 2.275%, 2.244% and 2.328% plus the applicable margin per the requirements in the Credit Agreement. During the next twelve months, the Company estimates that $5.8 million will be reclassified as an increase to interest expense. The fair value of the Company's interest rate swaps are impacted by the credit risk of both the Company and its counterparties. The Company has agreements with its derivative financial instrument counterparties 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 instruments obligations. In addition, the Company minimizes nonperformance risk on its derivative instruments by evaluating the creditworthiness of its counterparties, which are limited to major banks and financial institutions. Upon inception, the interest rate swaps were designated as cash flow hedges under ASC 815, with gains and losses, net of tax, measured on an ongoing basis recorded in accumulated other comprehensive loss. The fair value of the interest rate swaps are categorized as Level 2 in the fair value hierarchy as they are based on well-recognized financial principles and available market data. As of December 31, 201 9 , the fair value of the interest rate swap liability was $ million and is recorded in the Consolidated Balance Sheets as of December 31, 201 9 as follows: Quoted Prices in Significant Significant Active Observable Unobservable December 31, Markets Inputs Inputs (dollars in millions) Balance Sheet Location 2019 Level 1 Level 2 Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 5.7 $ — $ 5.7 $ — Interest Rate Swap Other noncurrent liabilities $ 13.3 $ — $ 13.3 $ — 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: Quoted Prices in Significant Significant Active Observable Unobservable December 31, Markets Inputs Inputs (dollars in millions) Balance Sheet Location 2018 Level 1 Level 2 Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 1.2 $ — $ 1.2 $ — Interest Rate Swap Other noncurrent liabilities $ 3.8 $ — $ 3.8 $ — 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) 2019 2018 Interest Rate Swap $ (14.0 ) $ (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 2019 2018 Interest Rate Swap Interest Expense $ (2.2 ) $ (1.2 ) Disclosure on Financial Instruments The carrying values of the Company's financial instruments approximate the estimated fair values as of December 31, 2019 and December 31, 2018, 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, 2019 December 31, 2018 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,867.5 $ 1,921.5 $ 1,880.0 $ 1,673.6 Other financing arrangements 43.5 55.5 44.6 43.6 * Excludes finance leases, other financing arrangements 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, 2019 and December 31, 2018, 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, 2019, 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 2019 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 Quoted Prices Significant in Active Other Significant Year Ended Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs Impairment (dollars in millions) 2017 (Level 1) (Level 2) (Level 3) 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, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Postretirement Plans | 12. 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 $12.9 million, $11.3 million, and $8.2 million in 2019, 2018, and 2017, 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 were phased out as of December 31, 2018 for all employees, with the exception of a small group of grandfathered employees. The postretirement health plan also includes liabilities associated with employees who have special death benefits only. 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 2019, Hawaiian Telcom’s pension plans made lump sum payments of $1.0 million resulting in a reduction of plan benefit obligation of $1.0 million and a nominal pension settlement cost. 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, 2019, 2018 and 2017 for the Cincinnati Plans and at December 31, 2019 and 2018 for the Hawaii Plans. Hawaii pension and postretirement costs recorded in 2018 are related to the six month period subsequent to the July 2, 2018 acquisition date. In 2017, 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 2019 and 2018. Pension and postretirement benefit costs for these plans were comprised of: Pension Benefits Postretirement and Other Benefits (dollars in millions) 2019 2018 2017 2019 2018 2017 Service cost $ — $ — $ — $ 0.6 $ 0.6 $ 0.2 Interest cost on projected benefit obligation 23.9 20.0 19.4 5.0 4.2 3.2 Expected return on plan assets (30.7 ) (29.8 ) (26.0 ) — — — Amortization of: Prior service benefit — — — (2.5 ) (3.1 ) (4.5 ) Actuarial loss 13.7 17.0 17.5 1.8 4.1 4.7 Pension settlement charges — 0.1 4.0 — — — Pension/postretirement cost $ 6.9 $ 7.3 $ 14.9 $ 4.9 $ 5.8 $ 3.6 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 2019 2018 2017 2019 2018 2017 Discount rate 4.20 % 3.60 % 4.10 % 4.30 % 3.60 % 4.00 % Expected long-term rate of return 6.50 % 7.00 % 7.25 % — — — Future compensation growth rate — — — — — — Hawaii Plans Pension Benefits Postretirement and Other Benefits 2019 2018 2019 2018 Discount rate 4.20 % 4.10 % 4.40 % 4.20 % Expected long-term rate of return 6.50 % 7.00 % — — Future compensation growth rate — — — — The expected long-term rate of return on plan assets, developed using the building block approach, for each of the plans 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. Benefit Obligation and Funded Status Changes in the plans' benefit obligations and funded status are as follows: Pension Benefits Postretirement and Other Benefits (dollars in millions) 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation at January 1, $ 606.8 $ 489.2 $ 123.7 $ 98.6 Hawaiian Telcom opening balance sheet adjustment — 184.1 — 51.2 Service cost — — 0.6 0.6 Interest cost 23.9 20.0 5.0 4.2 Actuarial loss (gain) 72.7 (39.9 ) (5.1 ) (20.3 ) Benefits paid (49.5 ) (43.0 ) (8.6 ) (13.1 ) Retiree drug subsidy received — — 0.1 0.3 Settlements (1.0 ) (3.6 ) — — Other — — 0.6 2.2 Benefit obligation at December 31, $ 652.9 $ 606.8 $ 116.3 $ 123.7 Change in plan assets: Fair value of plan assets at January 1, $ 482.4 $ 392.1 $ 5.8 $ 7.5 Hawaiian Telcom opening balance sheet adjustment — 163.0 — — Actual return (loss) on plan assets 101.0 (37.7 ) 0.3 0.3 Employer contributions 5.9 11.6 6.7 10.8 Retiree drug subsidy received — — 0.1 0.3 Benefits paid (49.5 ) (43.0 ) (8.6 ) (13.1 ) Settlements (1.0 ) (3.6 ) — — Fair value of plan assets at December 31, 538.8 482.4 4.3 5.8 Unfunded status $ (114.1 ) $ (124.4 ) $ (112.0 ) $ (117.9 ) 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, 2019 2018 2019 2018 Discount rate 3.10 % 4.20 % 3.20 % 4.30 % Future compensation growth rate — — — — Hawaii Plans Pension Benefits Postretirement and Other Benefits December 31, December 31, 2019 2018 2019 2018 Discount rate 3.10 % 4.20 % 3.30 % 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, 2019 2018 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 2024 2023 Hawaii Plans December 31, December 31, 2019 2018 Healthcare cost trend 6.8 % 6.8 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 5.0 % 5.0 % Year the rates reach the ultimate trend rate 2026 2026 A one-percentage point change in assumed healthcare cost trend rates would not impact the Hawaii postretirement plan due to the plan exceeding the per capita cost caps. A one-percentage point change in assumed healthcare cost trend rates would have the following effect on the Cincinnati postretirement benefit costs and obligation: (dollars in millions) 1% Increase 1% Decrease Service and interest costs for 2019 $ 0.1 $ (0.1 ) Postretirement benefit obligation at December 31, 2019 1.5 (1.4 ) 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) 2019 2018 2019 2018 Accrued payroll and benefits (current liability) $ 2.1 $ 2.1 $ 9.5 $ 11.0 Pension and postretirement benefit obligations (noncurrent liability) 112.0 122.3 102.5 106.9 Total $ 114.1 $ 124.4 $ 112.0 $ 117.9 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) 2019 2018 2019 2018 Prior service (cost) benefit, net of tax of ($0.1), ($0.1), $4.0, $4.6 $ (0.1 ) $ (0.1 ) $ 15.6 $ 17.5 Actuarial loss, net of tax of ($42.4), ($45.0), ($5.4), ($7.1) (147.5 ) (156.3 ) (20.0 ) (25.6 ) Total $ (147.6 ) $ (156.4 ) $ (4.4 ) $ (8.1 ) 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) 2019 2018 2019 2018 Prior service cost recognized: Reclassification adjustments $ — $ — $ (2.5 ) $ (3.1 ) Actuarial (loss) gain recognized: Reclassification adjustments 13.7 17.1 1.8 4.1 Actuarial (loss) gain arising during the period (2.3 ) (27.7 ) 5.5 20.4 The following amounts currently included in "Accumulated other comprehensive loss" are expected to be recognized in 2020 as a component of net periodic pension and postretirement cost: (dollars in millions) Pension Benefits Postretirement and Other Benefits Prior service benefit $ — $ (2.5 ) Actuarial loss 18.1 3.0 Total $ 18.1 $ 0.5 Plan Assets, Investment Policies and Strategies Cincinnati and Hawaii 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. The investment follows a glide path approach toward liability-driven investing that shifts a higher portfolio weighting to fixed income as the plan’s funded status increases. The current target allocations for the pension plan assets are 50% equity securities and 50% 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 50% of the equity securities held by the pension plans at December 31, 2019, 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 and U.S. Treasuries. The postretirement plan assets held by the Cincinnati plan are currently invested in a group insurance contract. The fair values of the pension plan assets at December 31, 2019 and 2018 by asset category are as follows: (dollars in millions) December 31, 2019 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Mutual funds U.S. equity index funds $ 137.2 $ 137.2 $ — $ — International equity index funds 137.4 137.4 — — Fixed income bond funds 263.7 263.7 — — Fixed income short-term money market funds 0.5 0.5 — — Group insurance contract 4.3 — — — Total $ 543.1 $ 538.8 $ — $ — (dollars in millions) December 31, 2018 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 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 $ — The fair values of Level 1 investments are based on quoted prices in active markets. In 2019, Hawaiian Telcom adjusted its overall investment strategy to align with the Cincinnati plans. As a result, the Hawaii Plans’ assets moved from Level 2 investments to Level 1 investments. In 2018, Level 2 investments included certain fixed income funds, equity funds, and short term investment funds that were 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 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 $3.6 million in 2019, $9.3 million in 2018, and $2.3 million in 2017. 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 2019, $2.3 million in 2018, and $2.3 million in 2017. Based on current assumptions, contributions are expected to be approximately $6 million and $3 million to the qualified and non-qualified plans in 2020, respectively. Management expects to make cash payments of approximately $8 million related to its postretirement health plans in 2020. 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 2020 $ 60.7 $ 9.8 $ (0.3 ) 2021 54.7 9.5 (0.3 ) 2022 54.6 9.1 (0.3 ) 2023 50.1 8.6 (0.3 ) 2024 48.4 8.2 (0.2 ) Years 2025 - 2029 201.6 35.3 (0.8 ) |
Shareowners' Deficit
Shareowners' Deficit | 12 Months Ended |
Dec. 31, 2019 | |
Shareowners Deficit [Abstract] | |
Shareowners' Deficit | 13. Shareowners’ Deficit Common Shares The par value of the Company’s common shares is $0.01 per share. At December 31, 2019 and 2018, common shares outstanding were 50,420,700 and 50,184,114, 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 2019, 2018 and 2017, no shares were repurchased or retired under this plan. As of December 31, 2019, the Company had the authority to repurchase $124.4 million of its common stock. 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% 3 4 3 4 3 4 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 loss on cash flow hedges arising during the period and foreign currency translation losses. For the years ended December 31, 2019 and 2018, the changes in accumulated other comprehensive loss by component were as follows: (dollars in millions) Unrecognized Net Periodic Pension and Postretirement Benefit Cost Unrealized Loss on Cash Flow Hedges, Net Foreign Currency Translation Loss Total Balance as of December 31, 2017 $ (173.1 ) $ — $ (0.6 ) $ (173.7 ) Remeasurement of benefit obligations (5.5 ) — — (5.5 ) Reclassifications, net 14.1 (a) 0.9 (b) — 15.0 Unrealized loss on cash flow hedge arising during the period, net — (4.8 ) (c) — (4.8 ) Foreign currency loss — — (6.5 ) (6.5 ) Balance as of December 31, 2018 $ (164.5 ) $ (3.9 ) $ (7.1 ) $ (175.5 ) Remeasurement of benefit obligations 2.5 — — 2.5 Reclassifications, net 10.0 (a) 1.7 (b) — 11.7 Unrealized loss on cash flow hedges arising during the period, net — (12.5 ) (c) — (12.5 ) Foreign currency gain — — 3.7 3.7 Balance as of December 31, 2019 $ (152.0 ) $ (14.7 ) $ (3.4 ) $ (170.1 ) (a ) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax 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 12 for further disclosures. (b ) These reclassifications are reported within "Interest expense" on the Consolidated Statements of Operations when the hedged transactions impact earnings. (c ) The unrealized loss on cash flow hedge s represents the change in the fair value of the derivative instrument s that occurred during the period, n et of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Consolida ted Balance Sheets. See Note 11 for further disclosures. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Income tax expense for continuing operations consisted of the following: Year Ended December 31, (dollars in millions) 2019 2018 2017 Current: Federal $ (1.4 ) $ (0.6 ) $ (14.8 ) State and local — 0.9 1.0 Foreign 0.5 1.6 — Total current (0.9 ) 1.9 (13.8 ) Deferred: Federal (9.1 ) (10.3 ) 47.0 State and local (1.5 ) 5.7 2.3 Foreign 0.4 (1.0 ) 0.4 Total deferred (10.2 ) (5.6 ) 49.7 Valuation allowance 0.5 13.1 (9.2 ) Total $ (10.6 ) $ 9.4 $ 26.7 The following is a reconciliation of the statutory federal income tax rate with the effective tax rate for each year: Year Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 35.0 % State and local income taxes, net of federal income tax 2.1 1.4 0.7 Transaction costs (3.0 ) (3.1 ) 5.5 Non-Deductible meals and entertainment (1.5 ) (1.8 ) 1.3 Equity compensation (1.7 ) 0.3 (0.5 ) Merger adjustments (1.7 ) — — State net operating loss adjustments (1.0 ) (10.1 ) 2.0 Change in valuation allowance, net of federal income tax (0.5 ) (21.8 ) (9.1 ) Federal rate change — — 3.5 Unrecognized tax benefit changes — — 1.4 Other differences, net — (1.4 ) 0.3 Effective tax rate 13.7 % (15.5 )% 40.1 % The income tax (benefit) provision was charged to continuing operations or accumulated other comprehensive income (loss) as follows: Year Ended December 31, (dollars in millions) 2019 2018 2017 Income tax (benefit) provision related to: Continuing operations $ (10.6 ) $ 9.4 $ 26.7 Accumulated other comprehensive income (loss) 0.2 1.3 (28.3 ) Prior year balances related to deferred tax assets and liabilities have been recast to net the federal effect of state taxes with the specific deferred tax asset or liability to which it relates. The components of our deferred tax assets and liabilities were as follows: December 31, (dollars in millions) 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 210.2 $ 171.9 Finance and operating lease obligations 29.1 22.4 Pension and postretirement benefits 54.3 53.1 Employee benefits 6.1 9.9 Interest limitation 16.6 14.8 State tax credit 9.2 9.7 Other 29.0 26.3 Total deferred tax assets 354.5 308.1 Valuation allowance (49.3 ) (48.7 ) Total deferred tax assets, net of valuation allowance $ 305.2 $ 259.4 Deferred tax liabilities: Property, plant and equipment and intangibles $ (239.2 ) $ (211.5 ) Other (18.4 ) (11.8 ) Total deferred tax liabilities (257.6 ) (223.3 ) Net deferred tax assets $ 47.6 $ 36.1 As of December 31, 2019, the Company had $777.1 million of federal net operating loss carryforwards with a deferred tax asset value of $163.2 million and $47.0 million in deferred tax assets related to state and local net operating loss carryforwards. Federal net operating loss carryforwards of $125.6 million will expire in 2023. U.S. tax laws limit the annual utilization of net operating loss carryforwards of acquired entities but the Company expects to fully utilize the net operating loss carryforwards. The Company assessed all available positive and negative evidence to determine whether it expects that future taxable income will be generated to allow it to realize its existing deferred tax assets. Despite the cumulative book loss incurred over the three-year period ended December 31, 2019, there is sufficient objectively verifiable income for management to conclude that it is more likely than not that the Company will utilize available federal net operating loss carryforwards prior to their expiration. As of December 31, 2019, the Company has recorded valuation allowances of $16.6 million against the portion of interest expense for which deduction is limited under section 163(j) of the Internal Revenue Code and $32.7 million against other attributes including primarily state and local net operating loss carryforwards. Management has concluded that it is more likely than not that it will realize all other deferred tax assets. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $21.7 million and $21.9 million at December 31, 2019 and December 31, 2018, respectively. It is reasonably possible that existing unrecognized tax benefits related to a federal sequestration of AMT credits could decrease by $2.1 million within the next 12 months. Accrued interest and penalties on income tax uncertainties were immaterial as of December 31, 2019 and 2018. A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, (dollars in millions) 2019 2018 2017 Balance, beginning of year $ 22.0 $ 22.2 $ 31.4 Change in tax positions for the current year 0.2 — 1.0 Change in tax positions for prior years (0.3 ) (0.2 ) 0.3 Change related to decrease in federal tax rate — — (10.5 ) Balance, end of year $ 21.9 $ 22.0 $ 22.2 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. 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 indefinitely 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, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based and Deferred Compensation Plans | 15. 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, 2019 was 1.2 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 2019 2018 2017 (in thousands, except per share amounts) Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Outstanding at January 1, 151 $ 18.29 181 $ 17.10 390 $ 20.00 Exercised — — (19 ) 8.68 (35 ) 15.76 Forfeited (7 ) 17.05 (9 ) 17.05 (35 ) 21.58 Expired — — (2 ) 8.35 (139 ) 24.55 Outstanding and exercisable at December 31, 144 $ 18.35 151 $ 18.29 181 $ 17.10 (dollars in millions) Compensation expense for the year $ — $ — $ 0.2 Tax benefit related to compensation expense $ — $ — $ (0.1 ) Intrinsic value of awards exercised $ — $ 0.1 $ 0.2 Cash received from awards exercised $ — $ 0.2 $ 0.5 Grant date fair value of awards vested $ — $ — $ 0.3 The following table summarizes our outstanding and exercisable awards at December 31, 2019: Outstanding Exercisable (in thousands, except per share amounts) Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Range of Grant Price $14.55 to $17.05 116 $ 17.04 116 $ 17.04 $23.75 to $26.05 28 23.83 28 23.83 Total 144 $ 18.35 144 $ 18.35 As of December 31, 2019, the aggregate intrinsic value for awards outstanding and exercisable was zero. The weighted-average remaining contractual life for awards outstanding and exercisable is approximately four years. As of December 31, 2019, 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: 2019 2018 2017 (in thousands, except per share amounts) Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Non-vested at January 1, 692 $ 18.67 871 $ 17.30 954 $ 15.89 Granted* 763 8.34 288 17.60 245 22.03 Vested (160 ) 15.45 (308 ) 15.45 (229 ) 16.74 Forfeited (13 ) 11.32 (159 ) 15.45 (99 ) 16.62 Non-vested at December 31, 1,282 $ 13.00 692 $ 18.67 871 $ 17.30 (dollars in millions) Compensation expense for the year $ 2.7 $ 2.1 $ 3.9 Tax benefit related to compensation expense $ (0.6 ) $ (0.5 ) $ (1.4 ) Grant date fair value of awards vested $ 2.5 $ 4.7 $ 3.8 * Assumes the maximum number of awards that can be earned if the performance conditions are achieved. As of December 31, 2019, unrecognized compensation expense related to performance-based awards was $5.4 million, assuming maximum performance attainment, which is expected to be recognized over a weighted-average period of approximately two years. Time-Based Restricted Awards Awards granted to Cincinnati Bell employees in 2019, 2018 and 2017 vest at the end of a three year period. Awards granted to directors in 2019, 2018 and 2017 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: 2019 2018 2017 (in thousands, except per share amounts) Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Non-vested at January 1, 497 $ 17.02 164 $ 18.57 106 $ 16.75 Granted 625 8.43 245 17.05 96 20.78 Awards converted pursuant to Hawaiian Telcom acquisition — — 149 15.70 — — Vested (167 ) 15.39 (61 ) 18.08 (38 ) 19.10 Forfeited (13 ) 12.76 — — — — Non-vested at December 31, 942 $ 11.67 497 $ 17.02 164 $ 18.57 (dollars in millions) Compensation expense for the year $ 4.7 $ 3.5 $ 1.8 Tax benefit related to compensation expense $ (1.1 ) $ (0.8 ) $ (0.6 ) Grant date fair value of awards vested $ 2.6 $ 1.1 $ 0.7 As of December 31, 2019, there was $4.4 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, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Severance | 16. 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 Total 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 Charges 6.9 — 6.9 Hawaiian Telcom opening balance sheet adjustment 0.1 — 0.1 Utilizations (13.9 ) (0.4 ) (14.3 ) Balance as of December 31, 2019 $ 2.6 $ 0.3 $ 2.9 Restructuring and severance charges recorded in 2019 in the Entertainment and Communications segment are related to a severance program for certain management employees as the Company continues its efforts to realize synergies that can be achieved due to the acquisition of Hawaiian Telcom. Restructuring and severance charges recorded in the IT Services and Hardware segment in 2019 are associated with initiatives to reduce and contain costs as well as headcount reductions as a result of insourcing initiatives by one of our significant customers. In 2018, 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. 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, 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 Charges 4.9 2.0 — 6.9 Hawaiian Telcom opening balance sheet adjustment 0.1 — — 0.1 Utilizations (11.2 ) (2.8 ) (0.3 ) (14.3 ) Balance as of December 31, 2019 $ 2.4 $ 0.5 $ — $ 2.9 At December 31, 2019 and 2018, $2.9 million and $9.6 million, respectively, of the restructuring liabilities were included in “Other current liabilities.” At December 31, 2018, $0.6 million was included in "Other noncurrent liabilities." Subsequent to December 31, 2019, the Company finalized a voluntary severance program for certain bargained and management employees in the Entertainment and Communications segment in an effort to continue to reduce costs associated with our copper field and network operations |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | 17. Business Segment Information For the years ended December 31, 2019, 2018, and 2017, we operated two business segments: Entertainment and Communications and IT Services and Hardware. Effective January 1, 2019, we adopted the requirement of ASU 2016-02, Leases. The standard was adopted using the modified retrospective transition method, which did not require the Company to adjust comparative period amounts. 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. 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. On July 2, 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 the state. Revenue in 2019 and 2018 includes contributions by Hawaiian Telcom of $314.0 million and $159.2 million, respectively. 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 decreased $76.4 million as of December 31, 2019 as compared to December 31, 2018. Entertainment and Communications assets decreased $58.8 million due to a decrease in property, plant and equipment primarily as a result of the increased depreciation in 2019 related to Hawaiian Telcom property, plant and equipment exceeding capital expenditures. IT Services and Hardware assets increased by $32.6 million primarily due to the Company’s recognition of operating lease right-of-use assets in the Consolidated Balance Sheets upon adoption of ASU 2016-02. Corporate assets decreased $50.2 million primarily due to decreased receivables. Lower receivables is partially due to timing of sales in the fourth quarter as well as additional sales of certain receivables under the factoring arrangement as of December 31, 2019 compared to December 31, 2018. Deferred tax assets and liabilities totaled $59.3 million and $11.7 million as of December 31, 2019, respectively. Deferred tax assets and liabilities totaled $47.5 million and $11.4 million as of December 31, 2018, respectively. The increase in deferred tax assets in 2019, as compared to 2018, is due to increased net operating losses in 2019. Our business segment information is as follows: Year Ended December 31, (dollars in millions) 2019 2018 2017 Revenue Entertainment and Communications $ 995.7 $ 853.4 $ 706.1 IT Services and Hardware 567.4 550.9 385.1 Intersegment (26.4 ) (26.1 ) (25.5 ) Total revenue $ 1,536.7 $ 1,378.2 $ 1,065.7 Intersegment revenue Entertainment and Communications $ 21.6 $ 22.3 $ 21.2 IT Services and Hardware 4.8 3.8 4.3 Total intersegment revenue $ 26.4 $ 26.1 $ 25.5 Operating income Entertainment and Communications $ 105.5 $ 103.3 $ 86.1 IT Services and Hardware 2.6 17.2 5.3 Corporate (35.0 ) (37.2 ) (36.0 ) Total operating income $ 73.1 $ 83.3 $ 55.4 Expenditures for long-lived assets* Entertainment and Communications $ 201.3 $ 408.0 $ 186.3 IT Services and Hardware 22.4 29.2 191.2 Corporate 0.1 0.2 — Total expenditures for long-lived assets $ 223.8 $ 437.4 $ 377.5 Depreciation and amortization Entertainment and Communications $ 255.8 $ 210.8 $ 163.7 IT Services and Hardware 48.9 41.0 29.1 Corporate 0.2 0.2 0.2 Total depreciation and amortization $ 304.9 $ 252.0 $ 193.0 *Includes cost of acquisitions As of December 31, (dollars in millions) 2019 2018 Assets Entertainment and Communications $ 1,840.0 $ 1,898.8 IT Services and Hardware 500.7 468.1 Corporate and eliminations 313.1 363.3 Total assets $ 2,653.8 $ 2,730.2 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information (Unaudited) | 18. Quarterly Financial Information (Unaudited) 2019 First Second Third Fourth (in millions, except per common share amounts) Quarter Quarter Quarter Quarter Total Revenue $ 379.6 $ 384.2 $ 382.5 $ 390.4 $ 1,536.7 Operating income 10.1 24.9 22.8 15.3 73.1 Net loss (26.9 ) (5.5 ) (13.6 ) (20.6 ) (66.6 ) Basic and diluted loss per common share $ (0.59 ) $ (0.16 ) $ (0.32 ) $ (0.46 ) $ (1.53 ) 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 and diluted loss per common share $ (0.26 ) $ (0.39 ) $ (0.41 ) $ (0.65 ) $ (1.73 ) 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 $ 3.3 million, $ 1.8 million, $ 1.3 million and $ 0.5 million in the first, second, third and fourth quarter of 2019, respectively. 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. Transaction and integration costs totaled $3.0 million, $0.6 million, $0.2 million and $9.0 million in the first, second, third and fourth quarter of 2019, respectively. These costs were primarily related to the pending acquisition by Brookfield entered into in the fourth quarter of 2019. Interest expense totaled $139.6 million in 2019 compared to $131.5 million in 2018. This increase is due to interest incurred on the amounts outstanding on the Receivables Facility and the Revolving Credit Facility used to partially fund the cash portion of the acquisition of Hawaiian Telcom. 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 third quarter of 2018, the Company acquired Hawaiian Telcom. The revenues of Hawaiian Telcom included in the quarterly financial information for the third and fourth quarter of 2018 totaled $87.1 million and $87.9 million, respectively. Hawaiian Telcom had 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. Revenues totaled $86.6 million, $87.8 million, $85.7 million and $86.6 million in the first, second, third and fourth quarter of 2019, respectively. Hawaiian Telcom had net loss of $2.3 million, $1.7 million, $2.4 million, and $1.2 million in the first, second, third and fourth quarter of 2019, respectively. For further information related to this acquisition, see Note 4. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | 19. Supplemental Cash Flow Information Year Ended December 31, (dollars in millions) 2019 2018 2017 Capitalized interest expense $ 1.7 $ 1.0 $ 0.7 Cash paid/(received) for: Interest 129.3 131.7 65.7 Income taxes, net of refunds 0.5 (13.8 ) (12.9 ) Noncash investing and financing activities: Stock consideration for acquisition of Hawaiian Telcom — 121.2 — Acquisition of property by assuming debt and other financing arrangements 14.5 51.5 17.3 Acquisition of property on account 26.0 35.8 12.0 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 $ 13.0 $ 12.5 $ — $ 11.2 $ 14.3 Year 2018 $ 10.4 $ 8.4 $ — $ 5.8 $ 13.0 Year 2017 $ 9.9 $ 6.9 $ — $ 6.4 $ 10.4 Deferred Tax Valuation Allowance Year 2019 $ 48.7 $ 0.5 $ 0.1 $ — $ 49.3 Year 2018 $ 36.1 $ 13.1 $ (0.5 ) $ — $ 48.7 Year 2017 $ 35.4 $ 0.3 $ 0.4 $ — $ 36.1 |
Description of Business and A_2
Description of Business and Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. |
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, “Revenue Recognition”; 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. |
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 25% and 18% of the outstanding accounts receivable balance at December 31, 2019 and 2018, respectively. Unbilled receivables arise from services rendered but not yet billed. As of December 31, 2019 and 2018, unbilled receivables totaled $15.3 million and $19.0 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 ASC 860, "Transfers and Servicing." The fees recorded in relation to such sales of accounts receivable were $0.7 million and $0.1 million in 2019 and 2018, respectively, and are included in "Selling, general, and administrative" in the Consolidated Statements of Operations. As of December 31, 2019 and 2018, the outstanding balance of receivables sold under the terms of the factoring agreement were $44.7 million and $20.0 million, respectively. See Note 8 for further information related to the Receivables |
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, “Business Combinations”. 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 allocated at the business segment level. 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 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. The Company no longer has an investment in CyrusOne Inc. |
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 2019, 2018 and 2017. 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 $6.6 million and $5.8 million as of December 31, 2019 and 2018, 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 — Effective January 1, 2019, the Company adheres to lease accounting principles described in ASC 842, “Leases.” Under ASC 842, the Company determines if an arrangement is a lease at inception based on the facts and circumstances present. In lease transactions where the Company acts as the lessor, the lease component is accounted for in accordance with ASC 842, and the non-lease component is accounted for in accordance with ASC 606. Although separation of lease and non-lease components is required, certain practical expedients are available that release the Company from this requirement. Adoption of the practical expedient allows the Company to account for each lease component and the related non-lease component together as a single component provided that the timing and patterns of revenue recognition for the components are the same and the combined, single unit of account would be classified as an operating lease. The Company's operating leases for certain services that include Customer Premise Equipment, including handsets and set-top boxes, have lease and non-lease components. In these arrangements, management has concluded that the non-lease components are the predominant characteristic, and, as a result, the Company has elected to account for these arrangements as one single non-lease component recorded as "Revenue" in the Consolidated Statements of Operations in accordance with ASC 606. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. The Company's lease terms include options to extend, terminate or buyout the lease when it is reasonably certain that we will exercise that option. Leases that have contract prices based on variable factors, such as power usage, are recognized as variable lease expense in the period in which the obligation for those payments are incurred. Lease expense for variable lease payments is recognized on a straight-line basis over the lease term. |
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 — The Company adheres to revenue recognition principles described in ASC 606. 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. Revenue derived from foreign operations is approximately 5%, 6% and 3% of consolidated revenue in 2019, 2018 and 2017, respectively. 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 either shipped or delivered in accordance with the terms of the contract. 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, the Company evaluated whether it is the principal (in which case we report revenues on a gross basis) or the agent (in which case we report revenues on a net basis). 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. |
Advertising Expenses | Advertising Expenses — Costs related to advertising are expensed as incurred. Advertising costs were $18.6 million, $14.2 million, and $13.5 million in 2019, 2018, and 2017, 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 2019, 2018, and 2017 were $29.2 million, $22.2 million and $16.8 million, respectively. The amounts reported as expense for 2019, 2018 and 2017 were $32.5 million, $23.4 million, and $17.7 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 remaining 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 plans (approximately 8-11 years) and average remaining life expectancy of retirees for the Cincinnati postretirement plans (approximately 14-17 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 ASC 805, 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. |
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. |
Recently Issued Accounting Standards | In May 2014, the Financial Accounting Standards Board (“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 $222.8 million for 2017. Changes in accounting policies related to variable consideration or rebates did not have a material effect on the Company's consolidated financial statements. Fulfillment and acquisition costs that are now recorded as an asset and amortized on a monthly basis decreased expense by $0.7 million for 2017. Additionally, as a result of the adoption of ASC 606 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 2017 by $0.11 and $0.12, respectively. See Note 3 for additional disclosures as a result of adopting ASC Topic 606. In February 2016, the FASB issued ASU 2016-02, Leases, which represents a wholesale change to lease accounting. Since that date, the FASB has issued additional ASUs clarifying certain aspects of ASU 2016-02 but did not change the core principal. The standard introduces a lessee model that brings most leases onto 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. The Company adopted the standard and all subsequent amendments effective January 1, 2019, using the modified retrospective transition method, which did not require the Company to adjust comparative periods. The Company elected the package of practical expedients permitted under the transition guidance, which allowed the Company to carryforward its historical assessments of: (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition to the package of practical expedients, the Company elected the practical expedients of using hindsight in determining the lease term and in assessing impairment of the entity’s right-of-use assets as well as not to assess whether existing or expired land easements that were not previously accounted for as leases under ASC 840 are or contain a lease under ASC 842. Upon adoption of this standard, the Company recognized operating lease right-of-use assets of $38.3 million and operating lease liabilities of $46.2 million in the Consolidated Balance Sheets for 2019. The Company elected the practical expedient outlined in ASU 2018-11 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 adoption of ASU 2016-02 had no impact to accumulated deficit. The Company implemented internal controls and procured a third-party lease accounting software solution to facilitate the ongoing accounting and financial reporting requirements of the ASU. The standard did not have a material impact on our Consolidated Statements of Operations for 2019. The most significant impact was the recognition of right-of-use assets and lease liabilities for operating leases, while our accounting for finance leases remained substantially unchanged. See Note 9 for required disclosures as a result of adopting ASC 842. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326), which replaces the incurred loss model with the current expected credit loss (“CECL”) model to estimate credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures. The CECL model requires a company to estimate credit losses expected over the life of the financial assets based on all relevant information including historical information, current conditions and reasonable and supportable forecasts that affect the collectability of the amounts. This standard is effective for public entities for fiscal years beginning after December 15, 2019. The standard requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. ASU 2016-13 was amended in November 2018 by the provisions of ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, and in April 2019 by the provisions of ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, and in May 2019 by the provisions of ASU 2019-05, Financial Instruments – Credit Loses (Topic 326) and in November 2019 by the provisions of ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses. The Company adopted the standard and all subsequent amendments on January 1, 2020. 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 $6.6 million and $6.0 million of other components of net benefit cost from "Cost of services and products" and “Selling, general and administrative,” respectively, to a new line below Operating income, "Other components of pension and postretirement benefit plans expense," on the Consolidated Statements of Operations for 2017. 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 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 ASC 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. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within Income Taxes (740) 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. |
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 Measurement | The fair value of the interest rate swaps are categorized as Level 2 in the fair value hierarchy as they are based on well-recognized financial principles and available market data.The fair value of our long-term debt was based on closing or estimated market prices of the Company’s debt at December 31, 2019 and December 31, 2018, 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, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Expected Revenue to be Recognized for Existing IRU Contracts | (dollars in millions) 2020 $ 2.6 2021 2.5 2022 2.6 2023 2.5 2024 2.6 Thereafter 24.5 |
Schedule of Activity of Contract Assets | The following table presents the activity for the Company’s contract assets: Fulfillment Costs Cost of Acquisition Total Contract Assets Entertainment IT Services Entertainment IT Services Entertainment IT Services and and Total and and Total and and Total (dollars in millions) Communications Hardware Company Communications Hardware Company Communications Hardware Company 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 Additions 3.6 3.5 7.1 10.0 1.6 11.6 13.6 5.1 18.7 Amortization (10.1 ) (1.9 ) (12.0 ) (8.2 ) (1.3 ) (9.5 ) (18.3 ) (3.2 ) (21.5 ) Balance as of December 31, 2019 8.0 4.1 12.1 14.8 2.3 17.1 22.8 6.4 29.2 |
Schedule of Revenues Disaggregation by Product and Service Lines | The following table presents revenues disaggregated by product and service lines: Year ended December 31, (dollars in millions) 2019 2018 2017 Data $ 475.0 $ 402.6 $ 344.5 Video 203.0 183.3 148.9 Voice 284.9 244.9 199.0 Other 32.8 22.6 13.7 Total Entertainment and Communications 995.7 853.4 706.1 Consulting 152.6 138.7 77.0 Cloud 92.1 98.0 81.0 Communications 198.7 178.5 160.6 Infrastructure Solutions 124.0 135.7 66.5 Total IT Services and Hardware 567.4 550.9 385.1 Intersegment revenue (26.4 ) (26.1 ) (25.5 ) Total revenue $ 1,536.7 $ 1,378.2 $ 1,065.7 The following table presents revenues disaggregated by contract type: Year ended December 31, (dollars in millions) 2019 2018 2017 Entertainment and Communications Products and services transferred at a point in time $ 31.7 $ 25.3 $ 20.6 Products and services transferred over time 942.4 805.8 664.3 Intersegment revenue 21.6 22.3 21.2 Total Entertainment and Communications 995.7 853.4 706.1 IT Services and Hardware Products and services transferred at a point in time 138.7 142.9 80.8 Products and services transferred over time 423.9 404.2 300.0 Intersegment revenue 4.8 3.8 4.3 Total IT Services and Hardware 567.4 550.9 385.1 Total Revenue Total products and services transferred at a point in time 170.4 168.2 101.4 Total products and services transferred over time 1,366.3 1,210.0 964.3 Total revenue $ 1,536.7 $ 1,378.2 $ 1,065.7 |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Hawaiian Telcom Holdco, Inc. [Member] | |
Business Acquisition [Line Items] | |
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] | |
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 |
OnX and Hawaiian Telcom [Member] | |
Business Acquisition [Line Items] | |
Purchase Price Allocation | The determination of the purchase price allocation to specific assets acquired and liabilities assumed is final for the Hawaiian Telcom and OnX transactions. The purchase price for Hawaiian Telcom and OnX have been allocated to individual assets acquired and liabilities assumed as follows: (dollars in millions) Hawaiian Telcom OnX Assets acquired Cash $ 4.3 $ 6.5 Receivables 24.8 69.9 Inventory, materials and supplies 6.7 9.0 Prepaid expenses and other current assets 5.9 2.8 Property, plant and equipment 697.6 11.6 Goodwill 10.2 133.1 Intangible assets 52.0 134.0 Deferred income tax asset 45.6 1.4 Other noncurrent assets 2.1 1.8 Total assets acquired 849.2 370.1 Liabilities assumed Accounts payable 60.0 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 21.8 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 30.8 1.5 Total liabilities assumed 509.7 203.7 Net assets acquired $ 339.5 $ 166.4 |
Estimated Fair Value of Identifiable Intangible Assets and Estimated Useful Lives | 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 |
Pro Forma Information | The following table provides the unaudited pro forma results of operations for the year ended 2018 and 2017 as if the acquisitions of OnX and Hawaiian Telcom had taken place as of the beginning of fiscal year 2016 and 2017, respectively. These pro forma 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 Revenue $ 1,556.5 $ 1,588.5 Net loss applicable to common shareholders (77.7 ) (84.6 ) Earnings per share: Basic and diluted loss per common share (1.55 ) (1.70 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basis and Diluted Earnings Per Share | The following table shows the computation of basic and diluted EPS: Year Ended December 31, (in millions, except per share amounts) 2019 2018 2017 Numerator: Net (loss) income $ (66.6 ) $ (69.8 ) $ 40.0 Preferred stock dividends 10.4 10.4 10.4 Net (loss) income applicable to common shareowners - basic and diluted $ (77.0 ) $ (80.2 ) $ 29.6 Denominator: Weighted-average common shares outstanding - basic 50.4 46.3 42.2 Stock-based compensation arrangements — — 0.2 Weighted-average common shares outstanding - diluted 50.4 46.3 42.4 Basic and diluted net (loss) earnings per common share $ (1.53 ) $ (1.73 ) $ 0.70 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment is comprised of the following: December 31, Depreciable (dollars in millions) 2019 2018 Lives (Years) Land and rights-of-way $ 117.2 $ 117.2 20 – Indefinite Buildings and leasehold improvements 315.4 305.2 5 – 40 Network equipment 4,044.6 3,913.3 2 – 50 Office software, furniture, fixtures and vehicles 229.3 216.3 2 – 14 Construction in process 38.9 47.1 n/a Gross value 4,745.4 4,599.1 Accumulated depreciation (2,964.6 ) (2,755.1 ) Property, plant and equipment, net $ 1,780.8 $ 1,844.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the Company's goodwill consisted of the following: IT Services and Hardware Entertainment and Communications Total Company December 31, December 31, December 31, December 31, December 31, December 31, (dollars in millions) 2019 2018 2019 2018 2019 2018 Goodwill, beginning balance $ 146.0 $ 148.8 $ 11.0 $ 2.2 $ 157.0 $ 151.0 Activity during the year Adjustments to prior year acquisitions — 0.7 1.4 — 1.4 0.7 Acquisitions — — — 8.8 — 8.8 Currency translations 2.1 (3.5 ) — — 2.1 (3.5 ) Goodwill, ending balance $ 148.1 $ 146.0 $ 12.4 $ 11.0 $ 160.5 $ 157.0 |
Schedule of Intangible Assets | The Company’s intangible assets consisted of the following: December 31, 2019 December 31, 2018 Gross Gross Carrying Accumulated Net Carrying Accumulated Net (dollars in millions) Amount (a) Amortization Amount Amount (a) Amortization Amount Customer relationships $ 140.8 $ (28.4 ) $ 112.4 $ 139.4 $ (17.8 ) $ 121.6 Trade names 41.3 (6.0 ) 35.3 40.7 (2.8 ) 37.9 Technology 9.9 (2.2 ) 7.7 9.9 (1.3 ) 8.6 Total $ 192.0 $ (36.6 ) $ 155.4 $ 190.0 $ (21.9 ) $ 168.1 (a) Change in gross carrying amounts is due to foreign currency translation on intangible assets related to the OnX acquisition. For further information related to the acquisition, see Note 4. |
Schedule of Estimated Useful Lives for Intangible Assets | 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 Estimated Amortization Expense | The annual estimated amortization expense for future years is as follows: (dollars in millions) Year ended December 31, 2020 $ 14.5 2021 14.3 2022 14.0 2023 13.6 2024 13.4 Thereafter 85.6 Total $ 155.4 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consists of the following: December 31, (dollars in millions) 2019 2018 Current portion of long-term debt: Credit Agreement - Tranche B Term Loan due 2024 $ 6.0 $ 6.0 Other financing arrangements 2.0 0.8 Finance lease liabilities 14.3 13.4 Current portion of long-term debt 22.3 20.2 Long-term debt, less current portion: Receivables Facility 131.5 176.6 Credit Agreement - Revolving Credit Facility 57.0 18.0 Credit Agreement - Tranche B Term Loan due 2024 586.5 592.5 7 1/4% 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 3.2 2.3 Finance lease liabilities 59.5 60.5 1,922.9 1,935.1 Net unamortized premium 1.3 1.7 Unamortized note issuance costs (22.9 ) (27.2 ) Long-term debt, less current portion 1,901.3 1,909.6 Total debt $ 1,923.6 $ 1,929.8 |
Debt Maturity Schedule | The following table summarizes our annual principal maturities of debt and other financing arrangements for the five years subsequent to December 31, 2019, and thereafter: Other financing (dollars in millions) Debt arrangements Year ended December 31, 2020 $ 6.0 $ 2.0 2021 137.5 2.0 2022 63.0 0.6 2023 28.3 0.6 2024 1,193.5 — Thereafter 437.9 — 1,866.2 5.2 Net unamortized premium 1.3 — Unamortized note issuance costs (22.9 ) — Total debt $ 1,844.6 $ 5.2 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to the Company's leases was as follows: (dollars in millions) Balance Sheet Location December 31, 2019 Operating lease assets, net of amortization Operating lease right-of-use assets $ 35.8 Finance lease assets, net of amortization Property, plant and equipment, net 33.2 Operating lease liabilities: Current operating lease liabilities Other current liabilities 10.9 Noncurrent operating lease liabilities Operating lease liabilities 32.1 Total operating lease liabilities 43.0 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 14.3 Noncurrent finance lease liabilities Long-term debt, less current portion 59.5 Total finance lease liabilities $ 73.8 |
Components of Lease Expense | The components of lease expense were as follows: (dollars in millions) Year Ended December 31, 2019 Operating lease cost $ 13.2 Short-term lease cost 0.3 Variable lease cost 2.1 Finance lease cost: Depreciation on leased assets 8.3 Interest on lease liabilities 5.1 Total lease cost $ 29.0 |
Schedule of Other Information Related to Leases | Other information related to leases was as follows: (dollars in millions) Year Ended December 31, 2019 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 5.1 Operating cash flows from operating leases $ 11.0 Financing cash flows from finance leases $ 14.4 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ 7.5 New finance leases $ 14.5 Weighted Average Remaining Lease Term Operating leases 7.93 years Finance leases 7.20 years Weighted Average Discount Rate Operating leases 6.94 % Finance leases 7.00 % |
Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases | Future minimum lease payments under non-cancellable leases as of December 31, 2019 are as follows: (dollars in millions) Operating Leases Finance Leases Year ended December 31, 2020 $ 13.3 $ 18.9 2021 8.3 14.5 2022 5.8 10.1 2023 4.7 8.2 2024 3.9 7.5 Thereafter 21.1 37.7 Total future minimum lease payments 57.1 96.9 Less imputed interest (14.1 ) (23.1 ) Total $ 43.0 $ 73.8 |
Schedule of Future Minimum Lease Payments to be Received under Non-Cancellable Leases | Future minimum lease payments to be received under non-cancellable leases as of December 31, 2019 are as follows: (dollars in millions) Operating Leases Year ended December 31, 2020 $ 2.7 2021 2.3 2022 1.7 2023 1.7 2024 1.7 Thereafter 17.0 Total future minimum lease payments 27.1 Less imputed interest (9.9 ) Total $ 17.2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Base Arrangements and Renewal Options | 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) Year ended December 31, 2020 $ 0.7 2021 0.7 2022 3.5 2023 5.8 2024 5.8 Thereafter 57.8 Total future minimum financing obligation payments 74.3 Less imputed interest (33.8 ) Total $ 40.5 |
Schedule of Change in Asset Retirement Obligation | The following table presents the activity for the Company’s asset retirement obligations: December 31, (dollars in millions) 2019 2018 Balance, beginning of period $ 9.1 $ 2.3 Hawaiian Telcom opening balance sheet adjustment (3.2 ) 6.6 Liabilities incurred 1.8 — Liabilities settled (0.7 ) (0.1 ) Accretion expense 0.1 0.3 Balance, end of period $ 7.1 $ 9.1 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Interest rate Swaps Recorded in Condensed Consolidated Balance Sheets | As of December 31, 201 9 , the fair value of the interest rate swap liability was $ million and is recorded in the Consolidated Balance Sheets as of December 31, 201 9 as follows: Quoted Prices in Significant Significant Active Observable Unobservable December 31, Markets Inputs Inputs (dollars in millions) Balance Sheet Location 2019 Level 1 Level 2 Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 5.7 $ — $ 5.7 $ — Interest Rate Swap Other noncurrent liabilities $ 13.3 $ — $ 13.3 $ — 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: Quoted Prices in Significant Significant Active Observable Unobservable December 31, Markets Inputs Inputs (dollars in millions) Balance Sheet Location 2018 Level 1 Level 2 Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 1.2 $ — $ 1.2 $ — Interest Rate Swap Other noncurrent liabilities $ 3.8 $ — $ 3.8 $ — |
Amount of (Losses) Gains Recognized in Accumulated Other Comprehensive Income Net of Reclassification into Earnings | 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) 2019 2018 Interest Rate Swap $ (14.0 ) $ (5.0 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The amount of losses reclassified from AOCI into earnings is as follows: Year Ended December 31, (dollars in millions) Statement of Operations Location 2019 2018 Interest Rate Swap Interest Expense $ (2.2 ) $ (1.2 ) |
Schedule of Carrying and Fair Values by Balance Sheet Grouping | The carrying and fair values of these items are as follows: December 31, 2019 December 31, 2018 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,867.5 $ 1,921.5 $ 1,880.0 $ 1,673.6 Other financing arrangements 43.5 55.5 44.6 43.6 * Excludes finance leases, other financing arrangements and note issuance costs |
Schedule of Non-Recurring Fair Value Measurements | During 2017, the following assets were remeasured at fair value in connection with impairment tests: Fair Value Measurements Using Quoted Prices Significant in Active Other Significant Year Ended Markets for Observable Unobservable December 31, Identical Assets Inputs Inputs Impairment (dollars in millions) 2017 (Level 1) (Level 2) (Level 3) 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, 2019 | |
Schedule of Pension and Postretirement Benefit Costs | Pension and postretirement benefit costs for these plans were comprised of: Pension Benefits Postretirement and Other Benefits (dollars in millions) 2019 2018 2017 2019 2018 2017 Service cost $ — $ — $ — $ 0.6 $ 0.6 $ 0.2 Interest cost on projected benefit obligation 23.9 20.0 19.4 5.0 4.2 3.2 Expected return on plan assets (30.7 ) (29.8 ) (26.0 ) — — — Amortization of: Prior service benefit — — — (2.5 ) (3.1 ) (4.5 ) Actuarial loss 13.7 17.0 17.5 1.8 4.1 4.7 Pension settlement charges — 0.1 4.0 — — — Pension/postretirement cost $ 6.9 $ 7.3 $ 14.9 $ 4.9 $ 5.8 $ 3.6 |
Schedule of Changes in Projected Benefit Obligations | Changes in the plans' benefit obligations and funded status are as follows: Pension Benefits Postretirement and Other Benefits (dollars in millions) 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation at January 1, $ 606.8 $ 489.2 $ 123.7 $ 98.6 Hawaiian Telcom opening balance sheet adjustment — 184.1 — 51.2 Service cost — — 0.6 0.6 Interest cost 23.9 20.0 5.0 4.2 Actuarial loss (gain) 72.7 (39.9 ) (5.1 ) (20.3 ) Benefits paid (49.5 ) (43.0 ) (8.6 ) (13.1 ) Retiree drug subsidy received — — 0.1 0.3 Settlements (1.0 ) (3.6 ) — — Other — — 0.6 2.2 Benefit obligation at December 31, $ 652.9 $ 606.8 $ 116.3 $ 123.7 Change in plan assets: Fair value of plan assets at January 1, $ 482.4 $ 392.1 $ 5.8 $ 7.5 Hawaiian Telcom opening balance sheet adjustment — 163.0 — — Actual return (loss) on plan assets 101.0 (37.7 ) 0.3 0.3 Employer contributions 5.9 11.6 6.7 10.8 Retiree drug subsidy received — — 0.1 0.3 Benefits paid (49.5 ) (43.0 ) (8.6 ) (13.1 ) Settlements (1.0 ) (3.6 ) — — Fair value of plan assets at December 31, 538.8 482.4 4.3 5.8 Unfunded status $ (114.1 ) $ (124.4 ) $ (112.0 ) $ (117.9 ) |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed healthcare cost trend rates would not impact the Hawaii postretirement plan due to the plan exceeding the per capita cost caps. A one-percentage point change in assumed healthcare cost trend rates would have the following effect on the Cincinnati postretirement benefit costs and obligation: (dollars in millions) 1% Increase 1% Decrease Service and interest costs for 2019 $ 0.1 $ (0.1 ) Postretirement benefit obligation at December 31, 2019 1.5 (1.4 ) |
Schedule of Amounts Recognized in Balance Sheet | 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) 2019 2018 2019 2018 Accrued payroll and benefits (current liability) $ 2.1 $ 2.1 $ 9.5 $ 11.0 Pension and postretirement benefit obligations (noncurrent liability) 112.0 122.3 102.5 106.9 Total $ 114.1 $ 124.4 $ 112.0 $ 117.9 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | 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) 2019 2018 2019 2018 Prior service (cost) benefit, net of tax of ($0.1), ($0.1), $4.0, $4.6 $ (0.1 ) $ (0.1 ) $ 15.6 $ 17.5 Actuarial loss, net of tax of ($42.4), ($45.0), ($5.4), ($7.1) (147.5 ) (156.3 ) (20.0 ) (25.6 ) Total $ (147.6 ) $ (156.4 ) $ (4.4 ) $ (8.1 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | 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) 2019 2018 2019 2018 Prior service cost recognized: Reclassification adjustments $ — $ — $ (2.5 ) $ (3.1 ) Actuarial (loss) gain recognized: Reclassification adjustments 13.7 17.1 1.8 4.1 Actuarial (loss) gain arising during the period (2.3 ) (27.7 ) 5.5 20.4 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following amounts currently included in "Accumulated other comprehensive loss" are expected to be recognized in 2020 as a component of net periodic pension and postretirement cost: (dollars in millions) Pension Benefits Postretirement and Other Benefits Prior service benefit $ — $ (2.5 ) Actuarial loss 18.1 3.0 Total $ 18.1 $ 0.5 |
Schedule of Allocation of Plan Assets | The fair values of the pension plan assets at December 31, 2019 and 2018 by asset category are as follows: (dollars in millions) December 31, 2019 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Mutual funds U.S. equity index funds $ 137.2 $ 137.2 $ — $ — International equity index funds 137.4 137.4 — — Fixed income bond funds 263.7 263.7 — — Fixed income short-term money market funds 0.5 0.5 — — Group insurance contract 4.3 — — — Total $ 543.1 $ 538.8 $ — $ — (dollars in millions) December 31, 2018 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 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 $ — |
Schedule of Expected 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 2020 $ 60.7 $ 9.8 $ (0.3 ) 2021 54.7 9.5 (0.3 ) 2022 54.6 9.1 (0.3 ) 2023 50.1 8.6 (0.3 ) 2024 48.4 8.2 (0.2 ) Years 2025 - 2029 201.6 35.3 (0.8 ) |
Cincinnati Plans [Member] | |
Schedule of Health Care Cost Trend Rates | The assumed healthcare cost trend rate used to measure the postretirement health benefit obligation is shown below: Cincinnati Plans December 31, 2019 2018 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 2024 2023 |
Cincinnati Plans [Member] | Net Periodic Cost [Member] | |
Schedule of Assumptions Used | 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 2019 2018 2017 2019 2018 2017 Discount rate 4.20 % 3.60 % 4.10 % 4.30 % 3.60 % 4.00 % Expected long-term rate of return 6.50 % 7.00 % 7.25 % — — — Future compensation growth rate — — — — — — |
Cincinnati Plans [Member] | Projected Benefit Obligation [Member] | |
Schedule of Assumptions Used | 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, 2019 2018 2019 2018 Discount rate 3.10 % 4.20 % 3.20 % 4.30 % Future compensation growth rate — — — — |
Hawaii Plans [Member] | |
Schedule of Health Care Cost Trend Rates | Hawaii Plans December 31, December 31, 2019 2018 Healthcare cost trend 6.8 % 6.8 % Rate to which the cost trend is assumed to decline (ultimate trend rate) 5.0 % 5.0 % Year the rates reach the ultimate trend rate 2026 2026 |
Hawaii Plans [Member] | Net Periodic Cost [Member] | |
Schedule of Assumptions Used | Hawaii Plans Pension Benefits Postretirement and Other Benefits 2019 2018 2019 2018 Discount rate 4.20 % 4.10 % 4.40 % 4.20 % Expected long-term rate of return 6.50 % 7.00 % — — Future compensation growth rate — — — — |
Hawaii Plans [Member] | Projected Benefit Obligation [Member] | |
Schedule of Assumptions Used | Hawaii Plans Pension Benefits Postretirement and Other Benefits December 31, December 31, 2019 2018 2019 2018 Discount rate 3.10 % 4.20 % 3.30 % 4.40 % Future compensation growth rate — — — — |
Shareowners' Deficit (Tables)
Shareowners' Deficit (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Shareowners Deficit [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss by Component | For the years ended December 31, 2019 and 2018, the changes in accumulated other comprehensive loss by component were as follows: (dollars in millions) Unrecognized Net Periodic Pension and Postretirement Benefit Cost Unrealized Loss on Cash Flow Hedges, Net Foreign Currency Translation Loss Total Balance as of December 31, 2017 $ (173.1 ) $ — $ (0.6 ) $ (173.7 ) Remeasurement of benefit obligations (5.5 ) — — (5.5 ) Reclassifications, net 14.1 (a) 0.9 (b) — 15.0 Unrealized loss on cash flow hedge arising during the period, net — (4.8 ) (c) — (4.8 ) Foreign currency loss — — (6.5 ) (6.5 ) Balance as of December 31, 2018 $ (164.5 ) $ (3.9 ) $ (7.1 ) $ (175.5 ) Remeasurement of benefit obligations 2.5 — — 2.5 Reclassifications, net 10.0 (a) 1.7 (b) — 11.7 Unrealized loss on cash flow hedges arising during the period, net — (12.5 ) (c) — (12.5 ) Foreign currency gain — — 3.7 3.7 Balance as of December 31, 2019 $ (152.0 ) $ (14.7 ) $ (3.4 ) $ (170.1 ) (a ) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax 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 12 for further disclosures. (b ) These reclassifications are reported within "Interest expense" on the Consolidated Statements of Operations when the hedged transactions impact earnings. (c ) The unrealized loss on cash flow hedge s represents the change in the fair value of the derivative instrument s that occurred during the period, n et of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Consolida ted Balance Sheets. See Note 11 for further disclosures. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense for Continuing Operations | Income tax expense for continuing operations consisted of the following: Year Ended December 31, (dollars in millions) 2019 2018 2017 Current: Federal $ (1.4 ) $ (0.6 ) $ (14.8 ) State and local — 0.9 1.0 Foreign 0.5 1.6 — Total current (0.9 ) 1.9 (13.8 ) Deferred: Federal (9.1 ) (10.3 ) 47.0 State and local (1.5 ) 5.7 2.3 Foreign 0.4 (1.0 ) 0.4 Total deferred (10.2 ) (5.6 ) 49.7 Valuation allowance 0.5 13.1 (9.2 ) Total $ (10.6 ) $ 9.4 $ 26.7 |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the statutory federal income tax rate with the effective tax rate for each year: Year Ended December 31, 2019 2018 2017 U.S. federal statutory rate 21.0 % 21.0 % 35.0 % State and local income taxes, net of federal income tax 2.1 1.4 0.7 Transaction costs (3.0 ) (3.1 ) 5.5 Non-Deductible meals and entertainment (1.5 ) (1.8 ) 1.3 Equity compensation (1.7 ) 0.3 (0.5 ) Merger adjustments (1.7 ) — — State net operating loss adjustments (1.0 ) (10.1 ) 2.0 Change in valuation allowance, net of federal income tax (0.5 ) (21.8 ) (9.1 ) Federal rate change — — 3.5 Unrecognized tax benefit changes — — 1.4 Other differences, net — (1.4 ) 0.3 Effective tax rate 13.7 % (15.5 )% 40.1 % |
Schedule of Income Tax Provision (Benefit) Charged to Continuing Operations, Accumulated Other Comprehensive Income (Loss) or Additional Paid-in Capital | The income tax (benefit) provision was charged to continuing operations or accumulated other comprehensive income (loss) as follows: Year Ended December 31, (dollars in millions) 2019 2018 2017 Income tax (benefit) provision related to: Continuing operations $ (10.6 ) $ 9.4 $ 26.7 Accumulated other comprehensive income (loss) 0.2 1.3 (28.3 ) |
Schedule of Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities were as follows: December 31, (dollars in millions) 2019 2018 Deferred tax assets: Net operating loss carryforwards $ 210.2 $ 171.9 Finance and operating lease obligations 29.1 22.4 Pension and postretirement benefits 54.3 53.1 Employee benefits 6.1 9.9 Interest limitation 16.6 14.8 State tax credit 9.2 9.7 Other 29.0 26.3 Total deferred tax assets 354.5 308.1 Valuation allowance (49.3 ) (48.7 ) Total deferred tax assets, net of valuation allowance $ 305.2 $ 259.4 Deferred tax liabilities: Property, plant and equipment and intangibles $ (239.2 ) $ (211.5 ) Other (18.4 ) (11.8 ) Total deferred tax liabilities (257.6 ) (223.3 ) Net deferred tax assets $ 47.6 $ 36.1 |
Schedule of Reconciliation of Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, (dollars in millions) 2019 2018 2017 Balance, beginning of year $ 22.0 $ 22.2 $ 31.4 Change in tax positions for the current year 0.2 — 1.0 Change in tax positions for prior years (0.3 ) (0.2 ) 0.3 Change related to decrease in federal tax rate — — (10.5 ) Balance, end of year $ 21.9 $ 22.0 $ 22.2 |
Stock-Based and Deferred Comp_2
Stock-Based and Deferred Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity | The following table summarizes stock options and stock appreciation rights activity: 2019 2018 2017 (in thousands, except per share amounts) Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Outstanding at January 1, 151 $ 18.29 181 $ 17.10 390 $ 20.00 Exercised — — (19 ) 8.68 (35 ) 15.76 Forfeited (7 ) 17.05 (9 ) 17.05 (35 ) 21.58 Expired — — (2 ) 8.35 (139 ) 24.55 Outstanding and exercisable at December 31, 144 $ 18.35 151 $ 18.29 181 $ 17.10 (dollars in millions) Compensation expense for the year $ — $ — $ 0.2 Tax benefit related to compensation expense $ — $ — $ (0.1 ) Intrinsic value of awards exercised $ — $ 0.1 $ 0.2 Cash received from awards exercised $ — $ 0.2 $ 0.5 Grant date fair value of awards vested $ — $ — $ 0.3 |
Summary of Outstanding and Exercisable Awards | The following table summarizes our outstanding and exercisable awards at December 31, 2019: Outstanding Exercisable (in thousands, except per share amounts) Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Range of Grant Price $14.55 to $17.05 116 $ 17.04 116 $ 17.04 $23.75 to $26.05 28 23.83 28 23.83 Total 144 $ 18.35 144 $ 18.35 |
Performance Based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Share Activity | The following table summarizes our outstanding performance-based restricted award activity: 2019 2018 2017 (in thousands, except per share amounts) Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Non-vested at January 1, 692 $ 18.67 871 $ 17.30 954 $ 15.89 Granted* 763 8.34 288 17.60 245 22.03 Vested (160 ) 15.45 (308 ) 15.45 (229 ) 16.74 Forfeited (13 ) 11.32 (159 ) 15.45 (99 ) 16.62 Non-vested at December 31, 1,282 $ 13.00 692 $ 18.67 871 $ 17.30 (dollars in millions) Compensation expense for the year $ 2.7 $ 2.1 $ 3.9 Tax benefit related to compensation expense $ (0.6 ) $ (0.5 ) $ (1.4 ) Grant date fair value of awards vested $ 2.5 $ 4.7 $ 3.8 * 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 | The following table summarizes our time-based restricted award activity: 2019 2018 2017 (in thousands, except per share amounts) Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Shares Weighted- Average Exercise Price Per Share Non-vested at January 1, 497 $ 17.02 164 $ 18.57 106 $ 16.75 Granted 625 8.43 245 17.05 96 20.78 Awards converted pursuant to Hawaiian Telcom acquisition — — 149 15.70 — — Vested (167 ) 15.39 (61 ) 18.08 (38 ) 19.10 Forfeited (13 ) 12.76 — — — — Non-vested at December 31, 942 $ 11.67 497 $ 17.02 164 $ 18.57 (dollars in millions) Compensation expense for the year $ 4.7 $ 3.5 $ 1.8 Tax benefit related to compensation expense $ (1.1 ) $ (0.8 ) $ (0.6 ) Grant date fair value of awards vested $ 2.6 $ 1.1 $ 0.7 |
Restructuring and Severance (Ta
Restructuring and Severance (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Summary of Activity in Restructuring and Severance Liability | A summary of activity in the restructuring and severance liability is shown below: (dollars in millions) Employee Separation Lease Abandonment Total Balance as of December 31, 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 Charges 6.9 — 6.9 Hawaiian Telcom opening balance sheet adjustment 0.1 — 0.1 Utilizations (13.9 ) (0.4 ) (14.3 ) Balance as of December 31, 2019 $ 2.6 $ 0.3 $ 2.9 |
Summary of Restructuring Activity by Business Segment | 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, 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 Charges 4.9 2.0 — 6.9 Hawaiian Telcom opening balance sheet adjustment 0.1 — — 0.1 Utilizations (11.2 ) (2.8 ) (0.3 ) (14.3 ) Balance as of December 31, 2019 $ 2.4 $ 0.5 $ — $ 2.9 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Our business segment information is as follows: Year Ended December 31, (dollars in millions) 2019 2018 2017 Revenue Entertainment and Communications $ 995.7 $ 853.4 $ 706.1 IT Services and Hardware 567.4 550.9 385.1 Intersegment (26.4 ) (26.1 ) (25.5 ) Total revenue $ 1,536.7 $ 1,378.2 $ 1,065.7 Intersegment revenue Entertainment and Communications $ 21.6 $ 22.3 $ 21.2 IT Services and Hardware 4.8 3.8 4.3 Total intersegment revenue $ 26.4 $ 26.1 $ 25.5 Operating income Entertainment and Communications $ 105.5 $ 103.3 $ 86.1 IT Services and Hardware 2.6 17.2 5.3 Corporate (35.0 ) (37.2 ) (36.0 ) Total operating income $ 73.1 $ 83.3 $ 55.4 Expenditures for long-lived assets* Entertainment and Communications $ 201.3 $ 408.0 $ 186.3 IT Services and Hardware 22.4 29.2 191.2 Corporate 0.1 0.2 — Total expenditures for long-lived assets $ 223.8 $ 437.4 $ 377.5 Depreciation and amortization Entertainment and Communications $ 255.8 $ 210.8 $ 163.7 IT Services and Hardware 48.9 41.0 29.1 Corporate 0.2 0.2 0.2 Total depreciation and amortization $ 304.9 $ 252.0 $ 193.0 *Includes cost of acquisitions As of December 31, (dollars in millions) 2019 2018 Assets Entertainment and Communications $ 1,840.0 $ 1,898.8 IT Services and Hardware 500.7 468.1 Corporate and eliminations 313.1 363.3 Total assets $ 2,653.8 $ 2,730.2 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information | 2019 First Second Third Fourth (in millions, except per common share amounts) Quarter Quarter Quarter Quarter Total Revenue $ 379.6 $ 384.2 $ 382.5 $ 390.4 $ 1,536.7 Operating income 10.1 24.9 22.8 15.3 73.1 Net loss (26.9 ) (5.5 ) (13.6 ) (20.6 ) (66.6 ) Basic and diluted loss per common share $ (0.59 ) $ (0.16 ) $ (0.32 ) $ (0.46 ) $ (1.53 ) 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 and diluted loss per common share $ (0.26 ) $ (0.39 ) $ (0.41 ) $ (0.65 ) $ (1.73 ) |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Supplemental Cash Flow Information | Year Ended December 31, (dollars in millions) 2019 2018 2017 Capitalized interest expense $ 1.7 $ 1.0 $ 0.7 Cash paid/(received) for: Interest 129.3 131.7 65.7 Income taxes, net of refunds 0.5 (13.8 ) (12.9 ) Noncash investing and financing activities: Stock consideration for acquisition of Hawaiian Telcom — 121.2 — Acquisition of property by assuming debt and other financing arrangements 14.5 51.5 17.3 Acquisition of property on account 26.0 35.8 12.0 |
Description of Business and A_3
Description of Business and Accounting Policies - Narrative (Details) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017USD ($) | Mar. 31, 2017USD ($)shares | Dec. 31, 2019USD ($)Customer | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | |
Description of Business and Accounting Policies [Line Items] | |||||
Entity number of employees | 4,400 | ||||
Company employees participating in collective bargaining agreement, percentage | 30.00% | ||||
Trade receivables due from customers, range, minimum | 21 days | ||||
Trade receivables due from customers, range, maximum | 90 days | ||||
Unbilled receivables, current | $ 15.3 | $ 19 | |||
Factoring fees | 0.7 | 0.1 | |||
Accounts receivable sold | 44.7 | 20 | |||
Available-for-sale securities, shares sold during the period | shares | 2.8 | ||||
Proceeds from sale of available-for-sale securities, equity | $ 140.7 | 0 | 0 | $ 140.7 | |
Marketable securities, realized gain (loss) | $ 117.7 | 0 | 0 | $ 117.7 | |
Cost method investments | $ 6.6 | $ 5.8 | |||
Revenue derived from foreign operations | 5.00% | 6.00% | 3.00% | ||
Service delivery period, indefeasible right of use contracts, upper range, in years | 25 years | ||||
Customer contract, maintenance on telephony equipment, lower range, in years | 1 year | ||||
Customer contract, maintenance on telephony equipment, upper range, in years | 3 years | ||||
Advertising expense | $ 18.6 | $ 14.2 | $ 13.5 | ||
Regulatory taxes included in revenue | 29.2 | 22.2 | 16.8 | ||
Regulatory taxes included in expense | $ 32.5 | $ 23.4 | $ 17.7 | ||
Lower range, in years, of remaining service life of active employees | 8 years | ||||
Upper range, in years, of remaining service life of active employees | 11 years | ||||
Other Postretirement Benefits Plan [Member] | Minimum [Member] | |||||
Description of Business and Accounting Policies [Line Items] | |||||
Average life expectancy of retirees, in years | 14 years | ||||
Other Postretirement Benefits Plan [Member] | Maximum [Member] | |||||
Description of Business and Accounting Policies [Line Items] | |||||
Average life expectancy of retirees, in years | 17 years | ||||
IT Services and Hardware [Member] | |||||
Description of Business and Accounting Policies [Line Items] | |||||
Equity method investment, other than temporary impairment | $ 4.7 | ||||
Verizon Communications Inc. [Member] | |||||
Description of Business and Accounting Policies [Line Items] | |||||
Number of customers, exceeds 10% of total accounts receivable | Customer | 1 | 1 | |||
Accounts receivable from one customer greater than 10%, percentage | 25.00% | 18.00% |
Recently Issued Accounting St_2
Recently Issued Accounting Standards - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
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 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Diluted Earnings Per Share | $ 0.12 | |||
Operating Lease, Right-of-Use Asset | $ 35.8 | $ 38.3 | $ 0 | |
Operating lease liabilities | $ 32.1 | $ 46.2 | $ 0 | |
Defined Benefit Plan, Cost Reclassified, Cost of Services and Products | $ 6.6 | |||
Defined Benefit Plan, Cost Reclassified, SG&A costs | 6 | |||
Defined Benefit Plan, Cost Reclassified, Other Operating Costs and Expenses | 4 | |||
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) | |||
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) | |||
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) | |||
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) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Payment terms for customers, lower range | 30 days | ||
Payment term for customers, upper range | 180 days | ||
Total | $ 37.3 | ||
Revenue, Remaining Performance Obligation, Percentage | 80.00% | ||
Unearned revenue and customer deposits | $ 59.1 | $ 55.9 | |
Reclassified revenue | 26.6 | $ 12.3 | |
Other Current Liabilities [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Unearned revenue and customer deposits | 1.5 | 1.4 | |
Other Noncurrent Liabilities [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Contract liabilities, recognized, noncurrent | $ 27.1 | $ 28 | |
Minimum [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Customer contract term | 1 year | ||
SEA-US contract term | 15 years | ||
Indefeasible right of use of contract term | 15 years | ||
Maximum [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Customer contract term | 5 years | ||
SEA-US contract term | 25 years | ||
Indefeasible right of use of contract term | 25 years | ||
Indefeasible Right of Use, Maximum, in Years | 30 years |
Revenue - Schedule of Expected
Revenue - Schedule of Expected Revenue to be Recognized for Existing IRU Contracts (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 37.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 2.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 2.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 2.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 2.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 2.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 24.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue - Schedule of Activity
Revenue - Schedule of Activity of Contract Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | $ 32 | $ 32.4 | $ 32 |
Capitalized contract cost, Additions | 18.7 | 21.4 | 23.2 |
Capitalized contract cost, Amortization | (21.5) | (21.8) | (22.8) |
Capitalized contract cost, net, ending Balance | 29.2 | 32 | 32.4 |
Fulfillment Costs [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 17 | 19.5 | 18.6 |
Capitalized contract cost, Additions | 7.1 | 11.8 | 15.3 |
Capitalized contract cost, Amortization | (12) | (14.3) | (14.4) |
Capitalized contract cost, net, ending Balance | 12.1 | 17 | 19.5 |
Cost of Acquisition [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 15 | 12.9 | 13.4 |
Capitalized contract cost, Additions | 11.6 | 9.6 | 7.9 |
Capitalized contract cost, Amortization | (9.5) | (7.5) | (8.4) |
Capitalized contract cost, net, ending Balance | 17.1 | 15 | 12.9 |
Entertainment and Communications [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 27.5 | 29.1 | 29.1 |
Capitalized contract cost, Additions | 13.6 | 17.8 | 20.5 |
Capitalized contract cost, Amortization | (18.3) | (19.4) | (20.5) |
Capitalized contract cost, net, ending Balance | 22.8 | 27.5 | 29.1 |
Entertainment and Communications [Member] | Fulfillment Costs [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 14.5 | 17.5 | 17 |
Capitalized contract cost, Additions | 3.6 | 9.9 | 13.7 |
Capitalized contract cost, Amortization | (10.1) | (12.9) | (13.2) |
Capitalized contract cost, net, ending Balance | 8 | 14.5 | 17.5 |
Entertainment and Communications [Member] | Cost of Acquisition [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 13 | 11.6 | 12.1 |
Capitalized contract cost, Additions | 10 | 7.9 | 6.8 |
Capitalized contract cost, Amortization | (8.2) | (6.5) | (7.3) |
Capitalized contract cost, net, ending Balance | 14.8 | 13 | 11.6 |
IT Services and Hardware [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 4.5 | 3.3 | 2.9 |
Capitalized contract cost, Additions | 5.1 | 3.6 | 2.7 |
Capitalized contract cost, Amortization | (3.2) | (2.4) | (2.3) |
Capitalized contract cost, net, ending Balance | 6.4 | 4.5 | 3.3 |
IT Services and Hardware [Member] | Fulfillment Costs [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 2.5 | 2 | 1.6 |
Capitalized contract cost, Additions | 3.5 | 1.9 | 1.6 |
Capitalized contract cost, Amortization | (1.9) | (1.4) | (1.2) |
Capitalized contract cost, net, ending Balance | 4.1 | 2.5 | 2 |
IT Services and Hardware [Member] | Cost of Acquisition [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 2 | 1.3 | 1.3 |
Capitalized contract cost, Additions | 1.6 | 1.7 | 1.1 |
Capitalized contract cost, Amortization | (1.3) | (1) | (1.1) |
Capitalized contract cost, net, ending Balance | $ 2.3 | $ 2 | $ 1.3 |
Revenue - Schedule of Revenues
Revenue - Schedule of Revenues Disaggregation by Product and Service Lines (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | $ 390.4 | $ 382.5 | $ 384.2 | $ 379.6 | $ 399 | $ 386.7 | $ 296.8 | $ 295.7 | $ 1,536.7 | $ 1,378.2 | $ 1,065.7 |
Operating Segments | Entertainment and Communications [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 995.7 | 853.4 | 706.1 | ||||||||
Operating Segments | IT Services and Hardware [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 567.4 | 550.9 | 385.1 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | (26.4) | (26.1) | (25.5) | ||||||||
Intersegment Eliminations [Member] | Entertainment and Communications [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 21.6 | 22.3 | 21.2 | ||||||||
Intersegment Eliminations [Member] | IT Services and Hardware [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 4.8 | 3.8 | 4.3 | ||||||||
Data [Member] | Operating Segments | Entertainment and Communications [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 475 | 402.6 | 344.5 | ||||||||
Video [Member] | Operating Segments | Entertainment and Communications [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 203 | 183.3 | 148.9 | ||||||||
Voice [Member] | Operating Segments | Entertainment and Communications [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 284.9 | 244.9 | 199 | ||||||||
Other [Member] | Operating Segments | Entertainment and Communications [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 32.8 | 22.6 | 13.7 | ||||||||
Consulting [Member] | Operating Segments | IT Services and Hardware [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 152.6 | 138.7 | 77 | ||||||||
Cloud [Member] | Operating Segments | IT Services and Hardware [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 92.1 | 98 | 81 | ||||||||
Communications [Member] | Operating Segments | IT Services and Hardware [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 198.7 | 178.5 | 160.6 | ||||||||
Infrastructure Solutions [Member] | Operating Segments | IT Services and Hardware [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | $ 124 | $ 135.7 | $ 66.5 |
Revenue - Schedule of Revenue_2
Revenue - Schedule of Revenues Disaggregation by Contract Type (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | $ 390.4 | $ 382.5 | $ 384.2 | $ 379.6 | $ 399 | $ 386.7 | $ 296.8 | $ 295.7 | $ 1,536.7 | $ 1,378.2 | $ 1,065.7 |
Intersegment Eliminations [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | (26.4) | (26.1) | (25.5) | ||||||||
Transferred at Point in Time [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 170.4 | 168.2 | 101.4 | ||||||||
Transferred over Time [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 1,366.3 | 1,210 | 964.3 | ||||||||
Entertainment and Communications [Member] | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 995.7 | 853.4 | 706.1 | ||||||||
Entertainment and Communications [Member] | Intersegment Eliminations [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 21.6 | 22.3 | 21.2 | ||||||||
Entertainment and Communications [Member] | Transferred at Point in Time [Member] | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 31.7 | 25.3 | 20.6 | ||||||||
Entertainment and Communications [Member] | Transferred over Time [Member] | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 942.4 | 805.8 | 664.3 | ||||||||
IT Services and Hardware [Member] | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 567.4 | 550.9 | 385.1 | ||||||||
IT Services and Hardware [Member] | Intersegment Eliminations [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 4.8 | 3.8 | 4.3 | ||||||||
IT Services and Hardware [Member] | Transferred at Point in Time [Member] | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | 138.7 | 142.9 | 80.8 | ||||||||
IT Services and Hardware [Member] | Transferred over Time [Member] | Operating Segments | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Revenues | $ 423.9 | $ 404.2 | $ 300 |
Mergers and Acquisitions - Narr
Mergers and Acquisitions - Narratives (Details) $ / shares in Units, shares in Millions, $ in Millions | Jul. 02, 2018USD ($)$ / sharesshares | Oct. 02, 2017USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($)shares | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)mi | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 22, 2020$ / shares | Dec. 21, 2019$ / shares |
Business Acquisition [Line Items] | ||||||||||||||||
Fiber route miles | mi | 17,000 | |||||||||||||||
Cash previously restricted to fund interest payments | $ 16.5 | |||||||||||||||
Revolving credit facility | $ (6.1) | $ 194.6 | $ (89.5) | |||||||||||||
Common shares issued as stock consideration | shares | 7.7 | |||||||||||||||
Expenses related to acquisition | $ 9 | $ 0.2 | $ 0.6 | $ 3 | $ 4.3 | $ 13.3 | $ 2.7 | $ 2.2 | 12.8 | 22.5 | 18.5 | |||||
Revenues | 390.4 | 382.5 | 384.2 | 379.6 | 399 | 386.7 | 296.8 | 295.7 | 1,536.7 | 1,378.2 | 1,065.7 | |||||
Net income (loss) | (20.6) | $ (13.6) | $ (5.5) | $ (26.9) | (30) | $ (17.7) | $ (13.8) | $ (8.3) | (66.6) | (69.8) | 40 | |||||
Goodwill | 160.5 | 157 | 160.5 | 157 | 151 | |||||||||||
8% Senior Notes due 2025 [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Senior notes | 350 | 350 | $ 350 | 350 | 350 | |||||||||||
Hawaiian Telcom Holdco, Inc. [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Cash consideration | 218.3 | |||||||||||||||
Stock consideration | 121.2 | |||||||||||||||
Debt repayments, including accrued interest | $ 318.2 | |||||||||||||||
Common shares issued as stock consideration | shares | 7.7 | |||||||||||||||
Common shares price per share as stock consideration | $ / shares | $ 15.70 | |||||||||||||||
Expenses related to acquisition | $ 28.1 | 0.9 | 19.2 | 8 | ||||||||||||
Revenues | 175 | |||||||||||||||
Net income (loss) | 0.7 | |||||||||||||||
Total estimated purchase price | 339.5 | |||||||||||||||
Property, plant and equipment | 697.6 | |||||||||||||||
Intangible assets | 52 | |||||||||||||||
Goodwill | 10.2 | |||||||||||||||
Hawaiian Telcom Holdco, Inc. [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revolving credit facility | 35 | |||||||||||||||
Hawaiian Telcom Holdco, Inc. [Member] | Accounts Receivable Securitization Facility [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revolving credit facility | $ 154 | |||||||||||||||
OnX Holdings LLC [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Cash consideration | $ 241.2 | |||||||||||||||
Expenses related to acquisition | $ 8.6 | $ 0.5 | 8.1 | |||||||||||||
Ownership interest acquired | 100.00% | |||||||||||||||
Business Combination, Debt Repayment (Excluding Capital Leases), Including Accrued Interest | $ 77.6 | |||||||||||||||
Working capital adjustment | 2.8 | |||||||||||||||
Revenues | 53 | |||||||||||||||
Net income (loss) | $ 11.5 | |||||||||||||||
Goodwill expected to be tax deductible | $ 2.3 | $ 2.3 | ||||||||||||||
Total estimated purchase price | 166.4 | |||||||||||||||
Property, plant and equipment | 11.6 | |||||||||||||||
Intangible assets | 134 | |||||||||||||||
Goodwill | $ 133.1 | |||||||||||||||
SunTel Services [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Ownership interest acquired | 100.00% | |||||||||||||||
Total estimated purchase price | $ 10 | |||||||||||||||
Property, plant and equipment | 0.4 | |||||||||||||||
Working capital adjustment | 4.1 | |||||||||||||||
Goodwill | 4.6 | |||||||||||||||
SunTel Services [Member] | Customer relationships | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Intangible assets | $ 1.2 | |||||||||||||||
Brookfield Infrastructure Group [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Common shares price per share as stock consideration | $ / shares | $ 10.50 | |||||||||||||||
Infrastructure Fund [Member] | Subsequent Event [Member] | Common Shares [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Common shares price per share as stock consideration | $ / shares | $ 12 |
Mergers and Acquisitions - Sche
Mergers and Acquisitions - Schedule of Consideration (Details) - USD ($) $ in Millions | Jul. 02, 2018 | Oct. 02, 2017 |
Hawaiian Telcom Holdco, Inc. [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration plus debt assumed | $ 536.5 | |
Cash consideration | 218.3 | |
Cincinnati Bell Inc. stock issued | 121.2 | |
Debt repayment | (318.2) | |
Total purchase price | $ 339.5 | |
OnX Holdings LLC [Member] | ||
Business Acquisition [Line Items] | ||
Cash consideration | $ 241.2 | |
Debt repayment | (77.6) | |
Working capital adjustment | 2.8 | |
Total purchase price | $ 166.4 |
Mergers and Acquisitions - Purc
Mergers and Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 02, 2018 | Dec. 31, 2017 | Oct. 02, 2017 |
Assets acquired | |||||
Goodwill | $ 160.5 | $ 157 | $ 151 | ||
Hawaiian Telcom Holdco, Inc. [Member] | |||||
Assets acquired | |||||
Cash | $ 4.3 | ||||
Receivables | 24.8 | ||||
Inventory, materials and supplies | 6.7 | ||||
Prepaid expenses and other current assets | 5.9 | ||||
Property, plant and equipment | 697.6 | ||||
Goodwill | 10.2 | ||||
Intangible assets | 52 | ||||
Deferred income tax asset | 45.6 | ||||
Other noncurrent assets | 2.1 | ||||
Total assets acquired | 849.2 | ||||
Liabilities assumed | |||||
Accounts payable | 60 | ||||
Current portion of long-term debt | 10.2 | ||||
Unearned revenue and customer deposits | 13.5 | ||||
Accrued expenses and other current liabilities | 21.8 | ||||
Long-term debt, less current portion | 304.5 | ||||
Pension and postretirement benefit obligations | 68.9 | ||||
Other noncurrent liabilities | 30.8 | ||||
Total liabilities assumed | 509.7 | ||||
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 | ||||
Accrued expenses and other current liabilities | 18.3 | ||||
Deferred income tax liabilities | 42.3 | ||||
Long-term debt, less current portion | 76.7 | ||||
Other noncurrent liabilities | 1.5 | ||||
Total liabilities assumed | 203.7 | ||||
Net assets acquired | $ 166.4 |
Mergers and Acquisitions - Esti
Mergers and Acquisitions - Estimated Fair Value of Identifiable Intangible Assets and Estimated Useful Lives (Details) - USD ($) $ in Millions | Jul. 02, 2018 | Oct. 02, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||||
Fair Value | [1] | $ 192 | $ 190 | ||
Hawaiian Telcom Holdco, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 52 | ||||
OnX Holdings LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 134 | ||||
Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Fair Value | [1] | 140.8 | 139.4 | ||
Customer relationships | Hawaiian Telcom Holdco, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 26 | ||||
Useful Lives | 15 years | ||||
Customer relationships | OnX Holdings LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 108 | ||||
Useful Lives | 15 years | ||||
Trade name | |||||
Business Acquisition [Line Items] | |||||
Fair Value | [1] | 41.3 | 40.7 | ||
Trade name | Hawaiian Telcom Holdco, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 26 | ||||
Useful Lives | 15 years | ||||
Trade name | OnX Holdings LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 16 | ||||
Useful Lives | 10 years | ||||
Technology | |||||
Business Acquisition [Line Items] | |||||
Fair Value | [1] | $ 9.9 | $ 9.9 | ||
Useful Lives | 10 years | ||||
Technology | OnX Holdings LLC [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value | $ 10 | ||||
Useful Lives | 10 years | ||||
[1] | Change in gross carrying amounts is due to foreign currency translation on intangible assets related to the OnX acquisition. For further information related to the acquisition, see Note 4. |
Mergers and Acquisitions - Pro
Mergers and Acquisitions - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Revenue | $ 1,556.5 | $ 1,588.5 |
Net loss applicable to common shareholders | $ (77.7) | $ (84.6) |
Earnings per share: | ||
Basic and diluted loss per common share | $ (1.55) | $ (1.70) |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basis and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net (loss) income | $ (20.6) | $ (13.6) | $ (5.5) | $ (26.9) | $ (30) | $ (17.7) | $ (13.8) | $ (8.3) | $ (66.6) | $ (69.8) | $ 40 |
Preferred stock dividends | 10.4 | 10.4 | 10.4 | ||||||||
Net (loss) income applicable to common shareowners - basic and diluted | $ (77) | $ (80.2) | $ 29.6 | ||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding - basic | 50.4 | 46.3 | 42.2 | ||||||||
Stock-based compensation arrangements | 0 | 0 | 0.2 | ||||||||
Weighted-average common shares outstanding - diluted | 50.4 | 46.3 | 42.4 | ||||||||
Basic and diluted net (loss) earnings per common share | $ (0.46) | $ (0.32) | $ (0.16) | $ (0.59) | $ (0.65) | $ (0.41) | $ (0.39) | $ (0.26) | $ (1.53) | $ (1.73) | $ 0.70 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narratives (Details) - shares shares in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Common shares issued as stock consideration | 7.7 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 0.1 | |||
Stock Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 0.2 | |||
Convertible Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 0.9 | 0.9 | 0.9 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Land and rights-of-way | $ 117.2 | $ 117.2 |
Buildings and leasehold improvements | 315.4 | 305.2 |
Network equipment | 4,044.6 | 3,913.3 |
Office software, furniture, fixtures and vehicles | 229.3 | 216.3 |
Construction in process | 38.9 | 47.1 |
Gross value | 4,745.4 | 4,599.1 |
Accumulated depreciation | (2,964.6) | (2,755.1) |
Property, plant and equipment, net | $ 1,780.8 | $ 1,844 |
Land [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years | |
Land [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | Indefinite | |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 40 years | |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 50 years | |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 14 years |
Property, Plant and Equipment_2
Property, Plant and Equipment - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 290,200,000 | $ 239,600,000 | $ 190,400,000 |
Depreciation associated with cost of providing services | 87.00% | 85.00% | 84.00% |
Asset impairment losses | $ 0 | $ 0 | $ 0 |
Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life, Majority | 7 years | ||
Property, Plant and Equipment, Useful Life | 2 years | ||
Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life, Majority | 25 years | ||
Property, Plant and Equipment, Useful Life | 50 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 157 | $ 151 |
Adjustments to prior year acquisitions | 1.4 | 0.7 |
Acquisitions | 0 | 8.8 |
Currency translations | 2.1 | (3.5) |
Goodwill, ending balance | 160.5 | 157 |
IT Services and Hardware [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 146 | 148.8 |
Adjustments to prior year acquisitions | 0 | 0.7 |
Acquisitions | 0 | 0 |
Currency translations | 2.1 | (3.5) |
Goodwill, ending balance | 148.1 | 146 |
Entertainment and Communications [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 11 | 2.2 |
Adjustments to prior year acquisitions | 1.4 | 0 |
Acquisitions | 0 | 8.8 |
Currency translations | 0 | 0 |
Goodwill, ending balance | $ 12.4 | $ 11 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | ||||
Goodwill, mergers & acquisitions | $ 0 | $ 8,800,000 | ||
Impairment losses recognized in goodwill | $ 0 | 0 | 0 | $ 0 |
Amortization of intangible assets | 14,700,000 | 12,400,000 | 2,500,000 | |
Impairment of intangible assets, finite-lived | 0 | 0 | $ 0 | |
Entertainment and Communications [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, mergers & acquisitions | $ 0 | $ 8,800,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | [1] | $ 192 | $ 190 |
Finite-Lived Intangible Assets, Accumulated Amortization | (36.6) | (21.9) | |
Net Amount | 155.4 | 168.1 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | [1] | 140.8 | 139.4 |
Finite-Lived Intangible Assets, Accumulated Amortization | (28.4) | (17.8) | |
Net Amount | 112.4 | 121.6 | |
Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | [1] | 41.3 | 40.7 |
Finite-Lived Intangible Assets, Accumulated Amortization | (6) | (2.8) | |
Net Amount | 35.3 | 37.9 | |
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross Carrying Amount | [1] | 9.9 | 9.9 |
Finite-Lived Intangible Assets, Accumulated Amortization | (2.2) | (1.3) | |
Net Amount | $ 7.7 | $ 8.6 | |
[1] | Change in gross carrying amounts is due to foreign currency translation on intangible assets related to the OnX acquisition. For further information related to the acquisition, see Note 4. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Useful Lives for Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Customer relationships | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Customer relationships | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Trade name | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Trade name | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2020 | $ 14.5 | |
2021 | 14.3 | |
2022 | 14 | |
2023 | 13.6 | |
2024 | 13.4 | |
Thereafter | 85.6 | |
Net Amount | $ 155.4 | $ 168.1 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Jul. 02, 2018 | Oct. 06, 2017 |
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | $ 22.3 | $ 20.2 | ||
Other Financing Arrangements, Current Portion | 2 | 0.8 | ||
Finance lease liabilities, current | 14.3 | 13.4 | ||
Receivables Facility | 131.5 | 176.6 | ||
Credit Agreement - Revolving Credit Facility | 57 | 18 | ||
Long-term debt, less current portion | 1,901.3 | 1,909.6 | ||
Other Financing Arrangements, Non-Current Portion | 3.2 | 2.3 | ||
Finance lease liabilities, Noncurrent | 59.5 | 60.5 | ||
Long-term debt gross | 1,922.9 | 1,935.1 | ||
Net unamortized premium | 1.3 | 1.7 | ||
Unamortized note issuance costs | (22.9) | (27.2) | ||
Total debt | 1,923.6 | 1,929.8 | ||
Tranche B Term Loan due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Current portion of long-term debt | 6 | 6 | ||
Long-term debt, less current portion | 586.5 | 592.5 | ||
Senior Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, Noncurrent | $ 22.3 | 22.3 | ||
Debt instrument, interest rate, stated percentage | 7.25% | |||
Senior Notes Due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, Noncurrent | $ 625 | 625 | ||
Debt instrument, interest rate, stated percentage | 7.00% | |||
8% Senior Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, Noncurrent | $ 350 | 350 | $ 350 | |
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | ||
Various Cincinnati Bell Telephone Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, less current portion | $ 87.9 | $ 87.9 |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements - Credit Agreement - Narrative (Details) - USD ($) | Oct. 02, 2017 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||
Credit agreement term | 5 years | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000,000 | ||||
Loss on extinguishment of debt, net | $ 3,200,000 | $ 1,300,000 | $ 0 | $ 1,300,000 | $ 3,200,000 |
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 | $ 57,000,000 | $ 18,000,000 | |||
Borrowing capacity | $ 143,000,000 | ||||
Debt Covenants [Abstract] | |||||
Minimum consolidated interest coverage ratio | 150.00% | ||||
Equity Interests in Foreign Subsidiaries | 66.00% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Leverage Ratio, threshold | 325.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 3.75% | 3.25% | |||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 1.00% | ||||
Base Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 2.75% | 2.25% | |||
Bridge Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 25,000,000 | ||||
Tranche B Term Loan due 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit agreement term | 7 years | ||||
Debt Instrument, Face Amount | 600,000,000 | ||||
Debt instrument expiration date | 2024-10 | ||||
Debt Covenants [Abstract] | |||||
Proceeds from Issuance of Debt | 577,000,000 | ||||
Tranche B Term Loan due 2024 [Member] | Federal Funds Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Tranche B Term Loan due 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 315,800,000 | ||||
Standby Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument expiration date | 2022-10 | ||||
Revolving Credit Facility [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Leverage Ratio, threshold | 350.00% |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Accounts Receivable Securitization Facility - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Accounts Receivable Facility, Renewal Term | 364 days | |
Receivables facility maximum borrowing capacity | $ 225 | |
Receivables Facility Maximum Borrowing Availability | 142.2 | |
Receivables Facility | 131.5 | $ 176.6 |
Letters of Credit Outstanding, Amount | 10.5 | |
Receivables Facility Remaining Borrowing Capacity | $ 0.2 | |
Debt Instrument, Interest Rate During Period | 2.90% | |
Accounts receivable sold | $ 44.7 | $ 20 |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |
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 - Notes due - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 1993 | Oct. 06, 2017 | |
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of long-term debt | $ 0 | $ 0 | $ 943 | ||||
Debt instrument maturity period | 2028 | ||||||
Senior Notes due 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of long-term debt | $ 50 | ||||||
Debt instrument, interest rate, stated percentage | 7.25% | ||||||
Debt instrument maturity period | 2023 | ||||||
Frequency of periodic interest payment | Interest on the 7 1/4% Notes is payable semi-annually on June 15 and December 15. | ||||||
Customary Events of Default Amount for Existing Debt Instruments | $ 20 | ||||||
Senior Notes Due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of long-term debt | $ 200 | $ 425 | |||||
Debt instrument, interest rate, stated percentage | 7.00% | ||||||
Frequency of periodic interest payment | 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. | ||||||
Issuance of Long-Term Debt, Original Issue Premium, Percentage | 105.00% | ||||||
Debt instrument maturity date | Jul. 15, 2024 | ||||||
Debt Instrument, Covenant Description | 35 | ||||||
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% | ||||||
8% Senior Notes due 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, interest rate, stated percentage | 8.00% | 8.00% | |||||
Frequency of periodic interest payment | 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. | ||||||
Debt instrument maturity date | Oct. 15, 2025 | ||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||
Debt Instrument, Face Amount | $ 350 | ||||||
Debt Instrument, Redemption Price, Percentage Of Principal Amount Outstanding | 60.00% | ||||||
Debt Instrument, Redemption Price, Redemption Period | 180 days | ||||||
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% | ||||||
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% |
Debt and Other Financing Arra_7
Debt and Other Financing Arrangements - Cincinnati Bell Telephone Notes - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Nov. 30, 1998 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Debt instrument maturity period | 2028 | |
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 |
Debt and Other Financing Arra_8
Debt and Other Financing Arrangements - Debt Maturity Schedule (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Long-Term Debt, Excluding Finance Leases, Current | $ 6 | |
Long-Term Debt, Excluding Finance Leases, Repayments of Principal in Year Two | 137.5 | |
Long-Term Debt, Excluding Finance Leases, Repayments of Principal in Year Three | 63 | |
Long-Term Debt, Excluding Finance Leases, Repayments of Principal in Year Four | 28.3 | |
Long-Term Debt, Excluding Finance Leases, Repayments of Principal in Year Five | 1,193.5 | |
Long-Term Debt, Excluding Finance Leases, Repayments of Principal After Year Five | 437.9 | |
Long-Term Debt, Excluding Finance Leases, Gross | 1,866.2 | |
Net unamortized premium | 1.3 | $ 1.7 |
Unamortized note issuance costs | (22.9) | $ (27.2) |
Total debt | 1,844.6 | |
Other Financing Arrangements, Due Next Twelve Months | 2 | |
Other Financing Arrangements, Due In Year Two | 2 | |
Other Financing Arrangements, Due In Year Three | 0.6 | |
Other Financing Arrangements, Due In Year Four | 0.6 | |
Other Financing Arrangements, Due In Year Five | 0 | |
Other Financing Arrangements, Due Thereafter | 0 | |
Other Financing Arrangements, Gross | 5.2 | |
Net unamortized premium | 0 | |
Unamortized note issuance costs | 0 | |
Other Financing Arrangements, Net | $ 5.2 |
Debt and Other Financing Arra_9
Debt and Other Financing Arrangements - Debt Maturity Schedule, Deferred Financing Costs, Debt Covenants and Extinguished Notes - Narrative (Details) - USD ($) $ in Millions | Oct. 02, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||||
Payments of debt issuance costs | $ 0.8 | $ 11.7 | $ 19.1 | |||
Write off of Deferred Debt Issuance Cost | 1.3 | 2.1 | ||||
Unamortized note issuance costs | 22.9 | 27.2 | ||||
Amortization of Debt Issuance Costs | $ 6.4 | 5.7 | 3.4 | |||
Consolidated total leverage ratio, maximum allowed under Line of Credit Facility | 350.00% | |||||
Minimum consolidated interest coverage ratio | 150.00% | |||||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | $ 21.5 | 328.7 | 403 | |||
Loss on extinguishment of debt, net | $ 3.2 | $ 1.3 | 0 | 1.3 | $ 3.2 | |
Tranche B Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of Long-term Debt, Long-term Capital Lease Obligations, and Capital Securities | $ 315.8 | |||||
Loss on extinguishment of debt, net | $ 2.6 | |||||
Other Noncurrent Assets [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized note issuance costs | 3.1 | 4.9 | ||||
Revolving Credit Facility and Receivables Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments of debt issuance costs | $ 0.8 | 2.3 | ||||
Tranche B Term Loan due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments of debt issuance costs | 1 | |||||
8% Senior Notes due 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments of debt issuance costs | $ 8.7 |
Leases - Narratives (Details)
Leases - Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Lessee operating and finance lease term of contract | 5 years | ||
Lease expiration date | Dec. 31, 2066 | ||
Lessee, operating lease, existence of option to extend | true | ||
Lessee, finance lease, renewal term | 15 years | ||
Lessee, operating lease, existence of option to terminate | true | ||
Lessee, operating lease, option to terminate | some of which include options to terminate the leases within one year | ||
Capital lease obligations | $ 73.9 | ||
Lease expense | $ 18.4 | $ 10.7 | |
Lease income | $ 3.1 | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 3 years | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term | 30 years | ||
Real Estate | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating and finance lease term of contract | 1 year | ||
Real Estate | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating and finance lease term of contract | 55 years | ||
Equipment [Member] | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating and finance lease term of contract | 2 years | ||
Equipment [Member] | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating and finance lease term of contract | 6 years | ||
Cell Towers [Member] | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating and finance lease term of contract | 4 years | ||
Cell Towers [Member] | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee operating and finance lease term of contract | 21 years |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 35.8 | $ 38.3 | $ 0 |
Finance lease assets, net of amortization | $ 33.2 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | ||
Current operating lease liabilities | $ 10.9 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | ||
Noncurrent operating lease liabilities | $ 32.1 | $ 46.2 | 0 |
Total operating lease liabilities | 43 | ||
Current finance lease liabilities | $ 14.3 | 13.4 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligationsCurrent | ||
Noncurrent finance lease liabilities | $ 59.5 | $ 60.5 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations | ||
Total finance lease liabilities | $ 73.8 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 13.2 |
Short-term lease cost | 0.3 |
Variable lease cost | 2.1 |
Finance lease cost: | |
Depreciation on leased assets | 8.3 |
Interest on lease liabilities | 5.1 |
Total lease cost | $ 29 |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Related to Leases (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from finance leases | $ 5.1 |
Operating cash flows from operating leases | 11 |
Financing cash flows from finance leases | 14.4 |
Right-of-use assets obtained in exchange for lease obligations: | |
New operating leases | 7.5 |
New finance leases | $ 14.5 |
Weighted Average Remaining Lease Term | |
Operating leases | 7 years 11 months 4 days |
Finance leases | 7 years 2 months 12 days |
Weighted Average Discount Rate | |
Operating leases | 6.94% |
Finance leases | 7.00% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Under Non-Cancellable Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases [Abstract] | |
2020 | $ 13.3 |
2021 | 8.3 |
2022 | 5.8 |
2023 | 4.7 |
2024 | 3.9 |
Thereafter | 21.1 |
Total future minimum lease payments | 57.1 |
Less imputed interest | (14.1) |
Total | 43 |
Finance Leases [Abstract] | |
2020 | 18.9 |
2021 | 14.5 |
2022 | 10.1 |
2023 | 8.2 |
2024 | 7.5 |
Thereafter | 37.7 |
Total future minimum lease payments | 96.9 |
Less imputed interest | (23.1) |
Total | $ 73.8 |
Leases - Schedule of Future M_2
Leases - Schedule of Future Minimum Lease Payments to be Received under Non-Cancellable Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Lessor, Operating leases [Abstract] | |
2020 | $ 2.7 |
2021 | 2.3 |
2022 | 1.7 |
2023 | 1.7 |
2024 | 1.7 |
Thereafter | 17 |
Total future minimum lease payments | 27.1 |
Less imputed interest | (9.9) |
Total | $ 17.2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)RenewalOption | Dec. 31, 2018USD ($) | |
Commitments And Contingencies [Line Items] | ||
Other Liabilities, Current | $ 52,600,000 | $ 39,200,000 |
Jointly Owned Utility Plant Aggregate Construction Cost | 235,000,000 | |
Jointly Owned Utility Plant Amount Paid For Cable Build | $ 400,000 | 1,700,000 |
Up-Front Payments For Services, Upper Range, Years | 25 years | |
Proceeds From Sale of Capacity | $ 22,500,000 | 23,000,000 |
Letters of Credit Outstanding, Amount | 10,500,000 | |
Indemnification liability | $ 0 | 0 |
Maximum [Member] | ||
Commitments And Contingencies [Line Items] | ||
SEA-US contract term | 25 years | |
Long-term Purchase Commitments, Period | 3 years | |
Minimum [Member] | ||
Commitments And Contingencies [Line Items] | ||
SEA-US contract term | 15 years | |
Long-term Purchase Commitments, Period | 1 year | |
Pole license agreement obligation [Member] | ||
Commitments And Contingencies [Line Items] | ||
Contract Term, in Years | 10 years | |
Number of renewal options | RenewalOption | 2 | |
Renewal option term | 5 years | |
Other Installment Financing Arrangements | $ 39,100,000 | $ 40,100,000 |
Usage Life in Years | 20 years | |
Other Liabilities, Current | $ 1,100,000 | $ 1,000,000 |
Data Center Financing Arrangements [Member] | ||
Commitments And Contingencies [Line Items] | ||
Contract Term, in Years | 10 years | |
Number of renewal options | RenewalOption | 2 | |
Renewal option term | 2 years | |
Other Installment Financing Arrangements | $ 4,400,000 | $ 4,500,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Base Arrangements and Renewal Options (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2020 | $ 0.7 |
2021 | 0.7 |
2022 | 3.5 |
2023 | 5.8 |
2024 | 5.8 |
Thereafter | 57.8 |
Total future minimum financing obligation payments | 74.3 |
Less imputed interest | (33.8) |
Total | $ 40.5 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Change in Asset Retirement Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation [Abstract] | ||
Balance, beginning of period | $ 9.1 | $ 2.3 |
Hawaiian Telcom opening balance sheet adjustment | (3.2) | 6.6 |
Liabilities incurred | 1.8 | 0 |
Liabilities settled | (0.7) | (0.1) |
Accretion expense | 0.1 | 0.3 |
Balance, end of period | $ 7.1 | $ 9.1 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019 | Jun. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Impairment of assets, excluding goodwill | $ 4,700,000 | |||||
2.938% Interest Rate Contract [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Notional amount | $ 300,000,000 | |||||
Average fixed interest rate | 2.938% | |||||
Interest rate swap expiration date | 2023-06 | |||||
2.275% Interest Rate Contract [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Notional amount | $ 89,000,000 | |||||
Average fixed interest rate | 2.275% | |||||
Interest rate swap expiration date | 2024-03 | |||||
2.244% Interest Rate Contract [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Notional amount | $ 89,000,000 | |||||
Average fixed interest rate | 2.244% | |||||
Interest rate swap expiration date | 2024-03 | |||||
2.328% Interest Rate Contract [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Notional amount | $ 89,000,000 | |||||
Average fixed interest rate | 2.328% | |||||
Interest rate swap expiration date | 2024-03 | |||||
Interest Rate Contract [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Fair value of interest rate swaps | $ 19,000,000 | $ 5,000,000 | ||||
Interest Rate Contract [Member] | Scenario, Forecast [Member] | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Estimates in reclassified an increase to interest expense | $ 5,800,000 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Schedule of Fair Value of Interest rate Swaps Recorded in Condensed Consolidated Balance Sheets (Details) - Estimate of Fair Value, Fair Value Disclosure [Member] - Interest Rate Contract [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Swap Liability, Current | $ 5.7 | $ 1.2 |
Interest Rate Swap Liability, Noncurrent | 13.3 | 3.8 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Swap Liability, Current | 0 | 0 |
Interest Rate Swap Liability, Noncurrent | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Swap Liability, Current | 5.7 | 1.2 |
Interest Rate Swap Liability, Noncurrent | 13.3 | 3.8 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Swap Liability, Current | 0 | 0 |
Interest Rate Swap Liability, Noncurrent | $ 0 | $ 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Amount of (Losses) Gains Recognized in Accumulated Other Comprehensive Income Net of Reclassification into Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Interest Rate Swap | $ (14) | $ (5) |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Interest Rate Swap | $ (2.2) | $ (1.2) |
Financial Instruments and Fai_7
Financial Instruments and Fair Value Measurements - Schedule of Carrying and Fair Values by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | $ 1,867.5 | $ 1,880 |
Other financing arrangements | 43.5 | 44.6 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | 1,921.5 | 1,673.6 |
Other financing arrangements | $ 55.5 | $ 43.6 | |
[1] | Excludes finance leases, other financing arrangements and note issuance costs |
Financial Instruments and Fai_8
Financial Instruments and Fair Value Measurements - Schedule of Non-Recurring Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment of equity method investment | $ (4.7) | |
IT Services and Hardware [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity method investment, Impairment Losses | $ (4.7) | |
Impairment of equity method investment | (4.7) | |
IT Services and Hardware [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Method Investments, Fair Value Disclosure | 0 | |
IT Services and Hardware [Member] | Fair Value, Measurements, Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Method Investments, Fair Value Disclosure | 0 | |
IT Services and Hardware [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity Method Investments, Fair Value Disclosure | 0 | |
IT Services and Hardware [Member] | Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) | ||
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 - Narratives (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)Plan | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Defined contribution plan, cost | $ 12.9 | $ 11.3 | $ 8.2 |
Capitalized portion of defined benefit contribution percent | 13.00% | ||
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Settlements | 1 | 3.6 | |
Settlements | 1 | 3.6 | |
Pension settlement charges | 0 | 0.1 | $ 4 |
Pension Plans, Defined Benefit [Member] | Qualified Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Payment for Pension and Other Postretirement Benefits | 3.6 | 9.3 | 2.3 |
Expected future employer contributions, next fiscal year | 6 | ||
Pension Plans, Defined Benefit [Member] | Nonqualified Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
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 [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Settlements | 0 | 0 | |
Settlements | 0 | 0 | |
Pension settlement charges | 0 | 0 | $ 0 |
Expected future employer contributions, next fiscal year | 8 | ||
Cincinnati Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Number of noncontributory defined benefit pension plans | Plan | 3 | ||
Cincinnati Plans [Member] | Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Settlements | $ 11 | ||
Settlements | 11.3 | ||
Pension settlement charges | $ 4 | ||
Hawaii Plans [Member] | Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Settlements | 1 | 3.6 | |
Settlements | $ 1 | 3.6 | |
Pension settlement charges | 0.1 | ||
Hawaii Plans [Member] | Pension Plans, Defined Benefit [Member] | Qualified Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Payment for Pension and Other Postretirement Benefits | $ 5 | ||
Cincinnati and Hawaii Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Allocation percentage in united states based investments | 50.00% | ||
Cincinnati and Hawaii Plans [Member] | Equity Securities [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Target allocation, plan assets percentage | 50.00% | ||
Cincinnati and Hawaii Plans [Member] | Fixed Income Securities [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Target allocation, plan assets percentage | 50.00% |
Pension and Postretirement Pl_4
Pension and Postretirement Plans - Schedule of Pension and Postretirement Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost on projected benefit obligation | 23.9 | 20 | 19.4 |
Expected return on plan assets | (30.7) | (29.8) | (26) |
Amortization of: | |||
Prior service benefit | 0 | 0 | 0 |
Actuarial loss | 13.7 | 17 | 17.5 |
Pension settlement charges | 0 | 0.1 | 4 |
Pension/postretirement cost | 6.9 | 7.3 | 14.9 |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0.6 | 0.6 | 0.2 |
Interest cost on projected benefit obligation | 5 | 4.2 | 3.2 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of: | |||
Prior service benefit | (2.5) | (3.1) | (4.5) |
Actuarial loss | 1.8 | 4.1 | 4.7 |
Pension settlement charges | 0 | 0 | 0 |
Pension/postretirement cost | $ 4.9 | $ 5.8 | $ 3.6 |
Pension and Postretirement Pl_5
Pension and Postretirement Plans - Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 2024 | 2023 | |
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 | ||
Postretirement benefit obligation at December 31 | 1.5 | ||
Service and interest costs for current year | (0.1) | ||
Postretirement benefit obligation at December 31 | $ (1.4) | ||
Cincinnati Plans [Member] | Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.20% | 3.60% | 4.10% |
Expected long-term rate of return | 6.50% | 7.00% | 7.25% |
Future compensation growth rate | 0.00% | 0.00% | 0.00% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.10% | 4.20% | |
Future compensation growth rate | 0.00% | 0.00% | |
Cincinnati Plans [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.30% | 3.60% | 4.00% |
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 | 3.20% | 4.30% | |
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% | 6.80% | |
Rate to which the cost trend is assumed to decline (ultimate trend rate) | 5.00% | 5.00% | |
Year the rates reach the ultimate trend rate | 2026 | 2026 | |
Hawaii Plans [Member] | Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.20% | 4.10% | |
Expected long-term rate of return | 6.50% | 7.00% | |
Future compensation growth rate | 0.00% | 0.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.10% | 4.20% | |
Future compensation growth rate | 0.00% | 0.00% | |
Hawaii Plans [Member] | Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.40% | 4.20% | |
Expected long-term rate of return | 0.00% | 0.00% | |
Future compensation growth rate | 0.00% | 0.00% | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.30% | 4.40% | |
Future compensation growth rate | 0.00% | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1, | $ 488.2 | ||
Fair value of plan assets at December 31, | 543.1 | $ 488.2 | |
Pension Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1, | 606.8 | 489.2 | |
Hawaiian Telcom opening balance sheet adjustment | 0 | 184.1 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 23.9 | 20 | 19.4 |
Actuarial loss (gain) | 72.7 | (39.9) | |
Benefits paid | (49.5) | (43) | |
Retiree drug subsidy received | 0 | 0 | |
Settlements | (1) | (3.6) | |
Other | 0 | 0 | |
Benefit obligation at December 31, | 652.9 | 606.8 | 489.2 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1, | 482.4 | 392.1 | |
Hawaiian Telcom opening balance sheet adjustment | 0 | 163 | |
Actual return (loss) on plan assets | 101 | (37.7) | |
Employer contributions | 5.9 | 11.6 | |
Retiree drug subsidy received | 0 | 0 | |
Benefits paid | (49.5) | (43) | |
Settlements | (1) | (3.6) | |
Fair value of plan assets at December 31, | 538.8 | 482.4 | 392.1 |
Unfunded status | (114.1) | (124.4) | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1, | 123.7 | 98.6 | |
Hawaiian Telcom opening balance sheet adjustment | 0 | 51.2 | |
Service cost | 0.6 | 0.6 | 0.2 |
Interest cost | 5 | 4.2 | 3.2 |
Actuarial loss (gain) | (5.1) | (20.3) | |
Benefits paid | (8.6) | (13.1) | |
Retiree drug subsidy received | 0.1 | 0.3 | |
Settlements | 0 | 0 | |
Other | 0.6 | 2.2 | |
Benefit obligation at December 31, | 116.3 | 123.7 | 98.6 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at January 1, | 5.8 | 7.5 | |
Hawaiian Telcom opening balance sheet adjustment | 0 | 0 | |
Actual return (loss) on plan assets | 0.3 | 0.3 | |
Employer contributions | 6.7 | 10.8 | |
Retiree drug subsidy received | 0.1 | 0.3 | |
Benefits paid | (8.6) | (13.1) | |
Settlements | 0 | 0 | |
Fair value of plan assets at December 31, | 4.3 | 5.8 | $ 7.5 |
Unfunded status | $ (112) | $ (117.9) |
Pension and Postretirement Pl_7
Pension and Postretirement Plans - Amounts Recognized in Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and postretirement benefit obligations (noncurrent liability) | $ 215.5 | $ 230.6 |
Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued payroll and benefits (current liability) | 2.1 | 2.1 |
Pension and postretirement benefit obligations (noncurrent liability) | 112 | 122.3 |
Total | 114.1 | 124.4 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Prior service (cost) benefit, net of tax of ($0.1), ($0.1), $4.0, $4.6 | (0.1) | (0.1) |
Actuarial loss, net of tax of ($42.4), ($45.0), ($5.4), ($7.1) | (147.5) | (156.3) |
Total | (147.6) | (156.4) |
Prior service costs, tax | (0.1) | (0.1) |
Actuarial loss, tax | (42.4) | (45) |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued payroll and benefits (current liability) | 9.5 | 11 |
Pension and postretirement benefit obligations (noncurrent liability) | 102.5 | 106.9 |
Total | 112 | 117.9 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Prior service (cost) benefit, net of tax of ($0.1), ($0.1), $4.0, $4.6 | 15.6 | 17.5 |
Actuarial loss, net of tax of ($42.4), ($45.0), ($5.4), ($7.1) | (20) | (25.6) |
Total | (4.4) | (8.1) |
Prior service costs, tax | 4 | 4.6 |
Actuarial loss, tax | $ (5.4) | $ (7.1) |
Pension and Postretirement Pl_8
Pension and Postretirement Plans - Amounts Recognized in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans, Defined Benefit [Member] | ||
Prior service cost recognized: | ||
Reclassification adjustments | $ 0 | $ 0 |
Actuarial (loss) gain recognized: | ||
Reclassification adjustments | 13.7 | 17.1 |
Actuarial (loss) gain arising during the period | (2.3) | (27.7) |
Prior service benefit | 0 | |
Actuarial loss | (18.1) | |
Total | 18.1 | |
Other Postretirement Benefits Plan [Member] | ||
Prior service cost recognized: | ||
Reclassification adjustments | (2.5) | (3.1) |
Actuarial (loss) gain recognized: | ||
Reclassification adjustments | 1.8 | 4.1 |
Actuarial (loss) gain arising during the period | 5.5 | $ 20.4 |
Prior service benefit | (2.5) | |
Actuarial loss | (3) | |
Total | $ 0.5 |
Pension and Postretirement Pl_9
Pension and Postretirement Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 543.1 | $ 488.2 |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 538.8 | 327.3 |
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 155.1 |
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
U.S. Equity Index Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 137.2 | 165 |
U.S. Equity Index Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 137.2 | 107.2 |
U.S. Equity Index Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 57.8 |
U.S. Equity Index Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
International Equity Index Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 137.4 | 127.2 |
International Equity Index Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 137.4 | 100.7 |
International Equity Index Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 26.5 |
International Equity Index Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed Income Bond Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 263.7 | 183 |
Fixed Income Bond Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 263.7 | 119.3 |
Fixed Income Bond Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 63.7 |
Fixed Income Bond Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fixed Income Short-term Money Market Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.5 | 7.2 |
Fixed Income Short-term Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.5 | 0.1 |
Fixed Income Short-term Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 7.1 |
Fixed Income Short-term Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Group Insurance Contract [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4.3 | 5.8 |
Group Insurance Contract [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Group Insurance Contract [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Group Insurance Contract [Member] | Fair Value, Inputs, Level 3 [Member] | ||
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) $ in Millions | Dec. 31, 2019USD ($) |
Defined Benefit Plan, Expected Future Prescription Drug Subsidy Receipt [Abstract] | |
2020 | $ (0.3) |
2021 | (0.3) |
2022 | (0.3) |
2023 | (0.3) |
2024 | (0.2) |
Years 2025 - 2029 | (0.8) |
Pension Plans, Defined Benefit [Member] | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 60.7 |
2021 | 54.7 |
2022 | 54.6 |
2023 | 50.1 |
2024 | 48.4 |
Years 2025 - 2029 | 201.6 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2020 | 9.8 |
2021 | 9.5 |
2022 | 9.1 |
2023 | 8.6 |
2024 | 8.2 |
Years 2025 - 2029 | $ 35.3 |
Shareowners' Deficit - Narrativ
Shareowners' Deficit - Narratives (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | |
Class of Stock [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |
Common Stock, Shares, Outstanding | 50,420,700 | 50,184,114 | |
Stock repurchase program, authorized amount | $ | $ 150,000,000 | ||
Repurchase and retirement of shares | 0 | 0 | 0 |
Stock repurchase program, remaining authorized repurchase amount | $ | $ 124,400,000 | ||
Stock issued during period, shares, acquisitions | 7,700,000 | ||
Stock issued during period, value, acquisitions | $ | $ 121,200,000 | ||
Preferred Stock, Shares Authorized | 2,357,299 | 2,357,299 | |
Preferred stock, shares issued | 155,250 | 155,250 | |
Preferred Stock, Dividend Rate, Percentage | 6.75% | 6.75% | |
Preferred Stock, Depositary Shares | 3,105,000 | 3,105,000 | |
Preferred stock conversion 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 Depositary Per Share | $ / shares | $ 50 | $ 50 | |
Preferred stock dividends | $ | $ 10,400,000 | $ 10,400,000 | $ 10,400,000 |
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 - Schedule
Shareowners' Deficit - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||
Beginning balance | $ (175.5) | $ (173.7) | ||
Remeasurement of benefit obligations | 2.5 | (5.5) | $ 2.8 | |
Reclassifications, net | 11.7 | 15 | ||
Unrealized loss on cash flow hedge arising during the period, net | (12.5) | (4.8) | 0 | |
Foreign currency gain (loss) | 3.7 | (6.5) | 0.2 | |
Ending balance | (170.1) | (175.5) | (173.7) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||
Beginning balance | (164.5) | (173.1) | ||
Remeasurement of benefit obligations | 2.5 | (5.5) | ||
Reclassifications, net | [1] | 10 | 14.1 | |
Unrealized loss on cash flow hedge arising during the period, net | 0 | 0 | ||
Foreign currency gain (loss) | 0 | 0 | ||
Ending balance | (152) | (164.5) | (173.1) | |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | ||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||
Beginning balance | (3.9) | 0 | ||
Remeasurement of benefit obligations | 0 | 0 | ||
Reclassifications, net | [2] | 1.7 | 0.9 | |
Unrealized loss on cash flow hedge arising during the period, net | [3] | (12.5) | (4.8) | |
Foreign currency gain (loss) | 0 | 0 | ||
Ending balance | (14.7) | (3.9) | 0 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | ||||
Beginning balance | (7.1) | (0.6) | ||
Remeasurement of benefit obligations | 0 | 0 | ||
Reclassifications, net | 0 | 0 | ||
Unrealized loss on cash flow hedge arising during the period, net | 0 | 0 | ||
Foreign currency gain (loss) | 3.7 | (6.5) | ||
Ending balance | $ (3.4) | $ (7.1) | $ (0.6) | |
[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 12 for further disclosures. | |||
[2] | These reclassifications are reported within "Interest expense" on the Consolidated Statements of Operations when the hedged transactions impact earnings. | |||
[3] | The unrealized loss on cash flow hedge s represents the change in the fair value of the derivative instrument s that occurred during the period, n et of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Consolida ted Balance Sheets. See Note 11 for further disclosures. |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense for Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (1.4) | $ (0.6) | $ (14.8) |
State and local | 0 | 0.9 | 1 |
Foreign | 0.5 | 1.6 | 0 |
Total current | (0.9) | 1.9 | (13.8) |
Deferred: | |||
Federal | (9.1) | (10.3) | 47 |
State and local | (1.5) | 5.7 | 2.3 |
Foreign | 0.4 | (1) | 0.4 |
Total deferred | (10.2) | (5.6) | 49.7 |
Valuation allowance | 0.5 | 13.1 | (9.2) |
Total | $ (10.6) | $ 9.4 | $ 26.7 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 35.00% |
State and local income taxes, net of federal income tax | 2.10% | 1.40% | 0.70% |
Transaction costs | (3.00%) | (3.10%) | 5.50% |
Non-Deductible meals and entertainment | (1.50%) | (1.80%) | 1.30% |
Equity compensation | (1.70%) | 0.30% | (0.50%) |
Merger adjustments | (1.70%) | 0.00% | 0.00% |
State net operating loss adjustments | (1.00%) | (10.10%) | 2.00% |
Change in valuation allowance, net of federal income tax | (0.50%) | (21.80%) | (9.10%) |
Federal rate change | 0.00% | 0.00% | 3.50% |
Unrecognized tax benefit changes | 0.00% | 0.00% | 1.40% |
Other differences, net | 0.00% | (1.40%) | 0.30% |
Effective tax rate | 13.70% | (15.50%) | 40.10% |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax (Benefit) Provision Charged to Continuing Operations or Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax (benefit) provision related to: | |||
Continuing operations | $ (10.6) | $ 9.4 | $ 26.7 |
Accumulated other comprehensive income (loss) | $ 0.2 | $ 1.3 | $ (28.3) |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 210.2 | $ 171.9 |
Finance and operating lease obligations | 29.1 | 22.4 |
Pension and postretirement benefits | 54.3 | 53.1 |
Employee benefits | 6.1 | 9.9 |
Interest limitation | 16.6 | 14.8 |
State tax credit | 9.2 | 9.7 |
Other | 29 | 26.3 |
Total deferred tax assets | 354.5 | 308.1 |
Valuation allowance | (49.3) | (48.7) |
Total deferred tax assets, net of valuation allowance | 305.2 | 259.4 |
Deferred tax liabilities: | ||
Property, plant and equipment and intangibles | (239.2) | (211.5) |
Other | (18.4) | (11.8) |
Total deferred tax liabilities | (257.6) | (223.3) |
Net deferred tax assets | $ 47.6 | $ 36.1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||
Federal net operating loss carryforwards | $ 777.1 | |
Federal net operating loss carryforwards, deferred tax asset value | 163.2 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local Tax | 47 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 21.7 | $ 21.9 |
Decrease in unrecognized tax benefits within the next 12 months | $ 2.1 | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2023 | |
Deferred Tax Assets, Valuation Allowance | $ 49.3 | $ 48.7 |
Interest Limitation [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | 16.6 | |
Other Attributes [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | 32.7 | |
Domestic Country | Expire in 2023 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||
Federal net operating loss carryforwards | $ 125.6 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Uncertainties [Abstract] | |||
Balance, beginning of year | $ 22 | $ 22.2 | $ 31.4 |
Change in tax positions for the current year | 0.2 | 0 | 1 |
Decrease in tax positions for prior years | (0.3) | (0.2) | |
Increase in tax positions for prior years | 0.3 | ||
Change related to decrease in federal tax rate | 0 | 0 | (10.5) |
Balance, end of year | $ 21.9 | $ 22 | $ 22.2 |
Stock-Based and Deferred Comp_3
Stock-Based and Deferred Compensation Plans - Narrative (Details) shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Available for Grant | shares | 1.2 |
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 | 4 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 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 |
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 Restricted 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 |
Performance Based Awards [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized Compensation | $ 5.4 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years |
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 |
Unrecognized Compensation | $ 4.4 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years |
Restricted Stock [Member] | Hawaiian Telcom Holdco, Inc. [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 |
Stock-Based and Deferred Comp_4
Stock-Based and Deferred Compensation Plans - Summary of Stock Options and Stock Appreciation Rights Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Compensation expense for the year | $ 7.4 | $ 5.6 | $ 5.9 |
Stock Options and Stock Appreciation Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Shares, Outstanding and Exercisable, Beginning balance | 151 | 181 | 390 |
Shares, Exercised | 0 | (19) | (35) |
Shares, Forfeited | (7) | (9) | (35) |
Shares, Expired | 0 | (2) | (139) |
Shares, Outstanding and Exercisable, Ending balance | 144 | 151 | 181 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-Average Exercise Price Per Share, Outstanding and Exercisable, Beginning balance | $ 18.29 | $ 17.10 | $ 20 |
Weighted-Average Exercise Price Per Share, Exercised | 0 | 8.68 | 15.76 |
Weighted-Average Exercise Price Per Share, Forfeited | 17.05 | 17.05 | 21.58 |
Weighted-Average Exercise Price Per Share, Expired | 0 | 8.35 | 24.55 |
Weighted-Average Exercise Price Per Share, Outstanding and Exercisable, Ending balance | $ 18.35 | $ 18.29 | $ 17.10 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Compensation expense for the year | $ 0 | $ 0 | $ 0.2 |
Tax benefit related to compensation expense | 0 | 0 | (0.1) |
Intrinsic value of awards exercised | 0 | 0.1 | 0.2 |
Cash received from awards exercised | 0 | 0.2 | 0.5 |
Grant date fair value of awards vested | $ 0 | $ 0 | $ 0.3 |
Stock-Based and Deferred Comp_5
Stock-Based and Deferred Compensation Plans - Summary of Outstanding and Exercisable Awards (Details) shares in Thousands | Dec. 31, 2019$ / sharesshares |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Shares | shares | 144 |
Exercisable Shares | shares | 144 |
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 | $ / shares | $ 18.35 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 18.35 |
$14.55 to $17.05 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Shares | shares | 116 |
Outstanding Weighted Average Exercise Price Per Share | $ / shares | $ 17.04 |
Exercisable Shares | shares | 116 |
Exercisable Weighted Average Exercise Price Per Share | $ / shares | $ 17.04 |
$23.75 to $26.05 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Shares | shares | 28 |
Outstanding Weighted Average Exercise Price Per Share | $ / shares | $ 23.83 |
Exercisable Shares | shares | 28 |
Exercisable Weighted Average Exercise Price Per Share | $ / shares | $ 23.83 |
Stock-Based and Deferred Comp_6
Stock-Based and Deferred Compensation Plans - Summary of Performance Based Restricted Award Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Compensation expense for the year | $ 7.4 | $ 5.6 | $ 5.9 | |
Performance Based Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | ||||
Shares, Non-vested, Beginning balance | 692 | 871 | 954 | |
Shares, Granted | [1] | 763 | 288 | 245 |
Shares, Vested | (160) | (308) | (229) | |
Shares, Forfeited | (13) | (159) | (99) | |
Shares, Non-vested, Ending balance | 1,282 | 692 | 871 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted-Average Exercise Price Per Share, Non-vested, Beginning balance | $ 18.67 | $ 17.30 | $ 15.89 | |
Weighted-Average Exercise Price Per Share, Granted | [1] | 8.34 | 17.60 | 22.03 |
Weighted-Average Exercise Price Per Share, Vested | 15.45 | 15.45 | 16.74 | |
Weighted-Average Exercise Price Per Share, Forfeited | 11.32 | 15.45 | 16.62 | |
Weighted-Average Exercise Price Per Share, Non-vested, Ending balance | $ 13 | $ 18.67 | $ 17.30 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Compensation expense for the year | $ 2.7 | $ 2.1 | $ 3.9 | |
Tax benefit related to compensation expense | (0.6) | (0.5) | (1.4) | |
Grant date fair value of awards vested | $ 2.5 | $ 4.7 | $ 3.8 | |
[1] | Assumes the maximum number of awards that can be earned if the performance conditions are achieved. |
Stock-Based and Deferred Comp_7
Stock-Based and Deferred Compensation Plans - Summary of Time Based Restricted Award Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Compensation expense for the year | $ 7.4 | $ 5.6 | $ 5.9 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |||
Shares, Non-vested, Beginning balance | 497 | 164 | 106 |
Shares, Granted | 625 | 245 | 96 |
Shares, Awards converted pursuant to Hawaiian Telcom acquisition | 0 | 149 | 0 |
Shares, Vested | (167) | (61) | (38) |
Shares, Forfeited | (13) | 0 | 0 |
Shares, Non-vested, Ending balance | 942 | 497 | 164 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-Average Exercise Price Per Share, Non-vested, Beginning balance | $ 17.02 | $ 18.57 | $ 16.75 |
Weighted-Average Exercise Price Per Share, Granted | 8.43 | 17.05 | 20.78 |
Weighted-Average Exercise Price Per Share, Awards converted pursuant to Hawaiian Telcom acquisition | 0 | 15.70 | 0 |
Weighted-Average Exercise Price Per Share, Vested | 15.39 | 18.08 | 19.10 |
Weighted-Average Exercise Price Per Share, Forfeited | 12.76 | 0 | 0 |
Weighted-Average Exercise Price Per Share, Non-vested, Ending balance | $ 11.67 | $ 17.02 | $ 18.57 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Compensation expense for the year | $ 4.7 | $ 3.5 | $ 1.8 |
Tax benefit related to compensation expense | (1.1) | (0.8) | (0.6) |
Grant date fair value of awards vested | $ 2.6 | $ 1.1 | $ 0.7 |
Restructuring and Severance - S
Restructuring and Severance - Summary of Activity in Restructuring and Severance Liability (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | $ 10.2 | $ 14.5 | $ 10.2 | $ 14.5 | $ 11.2 | |||||
Restructuring Charges | $ 0.5 | $ 1.3 | $ 1.8 | 3.3 | $ 3.4 | $ 4.6 | 0.3 | 6.9 | 8.3 | 32.7 |
Hawaiian Telcom opening balance sheet adjustment | 0.1 | 3.8 | ||||||||
Utilizations | (14.3) | (16.4) | (29.4) | |||||||
Ending balance | 2.9 | 10.2 | 2.9 | 10.2 | 14.5 | |||||
Employee Severance [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | 9.5 | 14.4 | 9.5 | 14.4 | 11 | |||||
Restructuring Charges | 6.9 | 7.5 | 32.7 | |||||||
Hawaiian Telcom opening balance sheet adjustment | 0.1 | 3.8 | ||||||||
Utilizations | (13.9) | (16.2) | (29.3) | |||||||
Ending balance | 2.6 | 9.5 | 2.6 | 9.5 | 14.4 | |||||
Lease Abandonment [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | $ 0.7 | $ 0.1 | 0.7 | 0.1 | 0.2 | |||||
Restructuring Charges | $ 0.8 | 0 | 0.8 | 0 | ||||||
Hawaiian Telcom opening balance sheet adjustment | 0 | 0 | ||||||||
Utilizations | (0.4) | (0.2) | (0.1) | |||||||
Ending balance | $ 0.3 | $ 0.7 | $ 0.3 | $ 0.7 | $ 0.1 |
Restructuring and Severance - N
Restructuring and Severance - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost And Reserve [Line Items] | |||||||||||
Restructuring liabilities related to business acquisitions | $ 3.8 | $ 3.8 | |||||||||
Restructuring Charges | $ 0.5 | $ 1.3 | $ 1.8 | $ 3.3 | 3.4 | $ 4.6 | $ 0.3 | $ 6.9 | 8.3 | $ 32.7 | |
Restructuring liabilities included in other current liabilities | $ 2.9 | 9.6 | 2.9 | 9.6 | |||||||
Restructuring liabilities included in other noncurrent liabilities | $ 0.6 | 0.6 | |||||||||
Entertainment and Communications [Member] | Scenario, Forecast [Member] | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Severance charge | $ 15 | ||||||||||
Lease Abandonment [Member] | |||||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||||
Restructuring Charges | $ 0.8 | $ 0 | $ 0.8 | $ 0 |
Restructuring and Severance -_2
Restructuring and Severance - Summary of Restructuring Activity by Business Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | $ 10.2 | $ 14.5 | $ 10.2 | $ 14.5 | $ 11.2 | |||||
Restructuring Charges | $ 0.5 | $ 1.3 | $ 1.8 | 3.3 | $ 3.4 | $ 4.6 | 0.3 | 6.9 | 8.3 | 32.7 |
Hawaiian Telcom opening balance sheet adjustment | 0.1 | 3.8 | ||||||||
Utilizations | (14.3) | (16.4) | (29.4) | |||||||
Ending balance | 2.9 | 10.2 | 2.9 | 10.2 | 14.5 | |||||
Corporate, Non-Segment [Member] | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | 0.3 | 0 | 0.3 | 0 | 0.7 | |||||
Restructuring Charges | 0 | 0.3 | 0 | |||||||
Hawaiian Telcom opening balance sheet adjustment | 0 | 0 | ||||||||
Utilizations | (0.3) | 0 | (0.7) | |||||||
Ending balance | 0 | 0.3 | 0 | 0.3 | 0 | |||||
Entertainment and Communications [Member] | Operating Segments | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | 8.6 | 12.3 | 8.6 | 12.3 | 7.5 | |||||
Restructuring Charges | 4.9 | 3.1 | 27.6 | |||||||
Hawaiian Telcom opening balance sheet adjustment | 0.1 | 3.8 | ||||||||
Utilizations | (11.2) | (10.6) | (22.8) | |||||||
Ending balance | 2.4 | 8.6 | 2.4 | 8.6 | 12.3 | |||||
IT Services and Hardware [Member] | Operating Segments | ||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||
Beginning balance | $ 1.3 | $ 2.2 | 1.3 | 2.2 | 3 | |||||
Restructuring Charges | 2 | 4.9 | 5.1 | |||||||
Hawaiian Telcom opening balance sheet adjustment | 0 | 0 | ||||||||
Utilizations | (2.8) | (5.8) | (5.9) | |||||||
Ending balance | $ 0.5 | $ 1.3 | $ 0.5 | $ 1.3 | $ 2.2 |
Business Segment Information -
Business Segment Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($)Segment | Dec. 31, 2017Segment | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 2 | 2 | 2 |
Increases (decreases) in total assets | $ (76.4) | ||
Deferred tax assets, net of valuation allowance, noncurrent | 59.3 | $ 47.5 | |
Deferred tax liabilities, net, noncurrent | 11.7 | 11.4 | |
Operating Segments | Entertainment and Communications [Member] | |||
Segment Reporting Information [Line Items] | |||
Increases (decreases) in total assets | (58.8) | ||
Operating Segments | IT Services and Hardware [Member] | |||
Segment Reporting Information [Line Items] | |||
Increases (decreases) in total assets | 32.6 | ||
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Increases (decreases) in total assets | (50.2) | ||
Deferred tax assets, net of valuation allowance, noncurrent | 59.3 | 47.5 | |
Deferred tax liabilities, net, noncurrent | 11.7 | 11.4 | |
Hawaiian Telcom Holdco, Inc. [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue contributed from acquired companies | $ 314 | $ 159.2 |
Business Segment Information _2
Business Segment Information - Schedule of Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | $ 390.4 | $ 382.5 | $ 384.2 | $ 379.6 | $ 399 | $ 386.7 | $ 296.8 | $ 295.7 | $ 1,536.7 | $ 1,378.2 | $ 1,065.7 | |
Operating income | 15.3 | $ 22.8 | $ 24.9 | $ 10.1 | 24.4 | $ 14.5 | $ 20.2 | $ 24.2 | 73.1 | 83.3 | 55.4 | |
Expenditures for long-lived assets | [1] | 223.8 | 437.4 | 377.5 | ||||||||
Depreciation and amortization | 304.9 | 252 | 193 | |||||||||
Assets | 2,653.8 | 2,730.2 | 2,653.8 | 2,730.2 | ||||||||
Operating Segments [Member] | Entertainment and Communications [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 995.7 | 853.4 | 706.1 | |||||||||
Operating income | 105.5 | 103.3 | 86.1 | |||||||||
Expenditures for long-lived assets | [1] | 201.3 | 408 | 186.3 | ||||||||
Depreciation and amortization | 255.8 | 210.8 | 163.7 | |||||||||
Assets | 1,840 | 1,898.8 | 1,840 | 1,898.8 | ||||||||
Operating Segments [Member] | IT Services and Hardware [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 567.4 | 550.9 | 385.1 | |||||||||
Operating income | 2.6 | 17.2 | 5.3 | |||||||||
Expenditures for long-lived assets | [1] | 22.4 | 29.2 | 191.2 | ||||||||
Depreciation and amortization | 48.9 | 41 | 29.1 | |||||||||
Assets | 500.7 | 468.1 | 500.7 | 468.1 | ||||||||
Intersegment Elimination [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | (26.4) | (26.1) | (25.5) | |||||||||
Intersegment Elimination [Member] | Entertainment and Communications [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 21.6 | 22.3 | 21.2 | |||||||||
Intersegment Elimination [Member] | IT Services and Hardware [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 4.8 | 3.8 | 4.3 | |||||||||
Corporate, Non-Segment [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating income | (35) | (37.2) | (36) | |||||||||
Expenditures for long-lived assets | [1] | 0.1 | 0.2 | 0 | ||||||||
Depreciation and amortization | 0.2 | 0.2 | 0.2 | |||||||||
Corporate and Elimination [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Assets | $ 313.1 | $ 363.3 | 313.1 | 363.3 | ||||||||
Sales [Member] | Intersegment Elimination [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | $ 26.4 | $ 26.1 | $ 25.5 | |||||||||
[1] | Includes cost of acquisitions |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenue | $ 390.4 | $ 382.5 | $ 384.2 | $ 379.6 | $ 399 | $ 386.7 | $ 296.8 | $ 295.7 | $ 1,536.7 | $ 1,378.2 | $ 1,065.7 |
Operating income | 15.3 | 22.8 | 24.9 | 10.1 | 24.4 | 14.5 | 20.2 | 24.2 | 73.1 | 83.3 | 55.4 |
Net income (loss) | $ (20.6) | $ (13.6) | $ (5.5) | $ (26.9) | $ (30) | $ (17.7) | $ (13.8) | $ (8.3) | $ (66.6) | $ (69.8) | $ 40 |
Basic and diluted net (loss) earnings per common share | $ (0.46) | $ (0.32) | $ (0.16) | $ (0.59) | $ (0.65) | $ (0.41) | $ (0.39) | $ (0.26) | $ (1.53) | $ (1.73) | $ 0.70 |
Quarterly Financial Informati_4
Quarterly Financial Information (Unaudited) - Narrative (Details) - USD ($) $ in Millions | Jul. 02, 2018 | Oct. 02, 2017 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Income Statements, Captions [Line Items] | |||||||||||||
Restructuring and severance related charges | $ 0.5 | $ 1.3 | $ 1.8 | $ 3.3 | $ 3.4 | $ 4.6 | $ 0.3 | $ 6.9 | $ 8.3 | $ 32.7 | |||
Transaction and integration costs | 9 | 0.2 | 0.6 | 3 | 4.3 | $ 13.3 | 2.7 | $ 2.2 | 12.8 | 22.5 | 18.5 | ||
Interest expense | 139.6 | 131.5 | 85.2 | ||||||||||
Loss on extinguishment of debt, net | $ 3.2 | $ 1.3 | 0 | 1.3 | 3.2 | ||||||||
Hawaiian Telcom Holdco, Inc. [Member] | |||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||
Transaction and integration costs | $ 28.1 | $ 0.9 | $ 19.2 | $ 8 | |||||||||
Revenue including intercompany of acquiree since acquisition date included in consolidated statement of income | 86.6 | 85.7 | 87.8 | 86.6 | 87.9 | 87.1 | |||||||
Net income of acquiree since acquisition date included in consolidated statement of income | $ (1.2) | $ (2.4) | $ (1.7) | $ (2.3) | $ 1.2 | $ (0.5) |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Cash Flow Information [Abstract] | |||
Capitalized interest expense | $ 1.7 | $ 1 | $ 0.7 |
Cash paid/(received) for: | |||
Interest | 129.3 | 131.7 | 65.7 |
Income taxes, net of refunds | 0.5 | (13.8) | (12.9) |
Noncash investing and financing activities: | |||
Stock consideration for acquisition of Hawaiian Telcom | 0 | 121.2 | 0 |
Acquisition of property by assuming debt and other financing arrangements | 14.5 | 51.5 | 17.3 |
Acquisition of property on account | $ 26 | $ 35.8 | $ 12 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning of Period | $ 13 | $ 10.4 | $ 9.9 |
Charge (Benefit) to Expenses | 12.5 | 8.4 | 6.9 |
(To) From Other Accounts | 0 | 0 | 0 |
Deductions | 11.2 | 5.8 | 6.4 |
End of Period | 14.3 | 13 | 10.4 |
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 | 48.7 | 36.1 | 35.4 |
Charge (Benefit) to Expenses | 0.5 | 13.1 | 0.3 |
(To) From Other Accounts | 0.1 | (0.5) | 0.4 |
Deductions | 0 | 0 | 0 |
End of Period | $ 49.3 | $ 48.7 | $ 36.1 |