Document and Entity Information
Document and Entity Information Document | 3 Months Ended |
Mar. 31, 2021shares | |
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-Q |
Document Period End Date | Mar. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 50,920,546 |
Fractional Interest in Cumulative Convertible Preferred Stock, Depositary Shares | 0.05 |
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 Quarterly Report | true |
Document Transition Report | false |
Common Stock [Member] | |
Class of Stock [Line Items] | |
Trading Symbol | CBB |
Security Exchange Name | NYSE |
Title of 12(b) Security | Common Shares ($0.01 par value) |
Cumulative Convertible Preferred Shares [Member] | |
Class of Stock [Line Items] | |
Trading Symbol | CBB.PB |
Security Exchange Name | NYSE |
Title of 12(b) Security | Cumulative Convertible Preferred Stock |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 409.9 | $ 380 |
Costs and expenses | ||
Cost of services and products, excluding items below | 220.1 | 193.7 |
Selling, general and administrative, excluding items below | 83.8 | 88 |
Depreciation and amortization | 71 | 74.2 |
Restructuring and severance related charges | 0.5 | 15.2 |
Transaction and integration cost | 1.9 | 29.1 |
Total operating costs and expenses | 377.3 | 400.2 |
Operating income (loss) | 32.6 | (20.2) |
Interest expense | 32.4 | 33.7 |
Other components of pension and postretirement benefit plans expense | 2.6 | 2.6 |
Other expense (income), net | 0.2 | (0.8) |
Loss before income taxes | (2.6) | (55.7) |
Income tax expense (benefit) | 0.4 | (21.7) |
Net loss | (3) | (34) |
Preferred stock dividends | 2.6 | 2.6 |
Net loss applicable to common shareowners | $ (5.6) | $ (36.6) |
Basic and diluted net loss per common share | $ (0.11) | $ (0.72) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (3) | $ (34) |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation gain (loss) | 1 | (6.9) |
Cash flow hedges: | ||
Unrealized gain (loss) on cash flow hedges arising during the period, net of tax of $0.2, ($3.0) | 0.6 | (10.1) |
Reclassification adjustment for net losses included in net income, net of tax of $0.5, $0.3 | 1.8 | 1.1 |
Defined benefit plans: | ||
Amortization of prior service benefits included in net income, net of tax of ($0.1), ($0.1) | (0.5) | (0.5) |
Amortization of net actuarial loss included in net income, net of tax of $1.4, $1.0 | 4.9 | 3.7 |
Total other comprehensive income (loss) | 7.8 | (12.7) |
Total comprehensive income (loss) | $ 4.8 | $ (46.7) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Unrealized gain (loss) on cash flow hedges arising during the period, tax | $ 0.2 | $ (3) |
Reclassification adjustment for net losses included in net income, tax | 0.5 | 0.3 |
Amortization of prior service benefits included in net income, tax | (0.1) | (0.1) |
Amortization of net actuarial loss included in net income, tax | $ 1.4 | $ 1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareowners' Deficit - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance, Shareowners' Equity (Deficit) | $ (191.1) | $ (140) |
Beginning Balance, Shares | 3,105,000 | |
Net loss | $ (3) | (34) |
Other comprehensive income (loss) | 7.8 | (12.7) |
Shares issued under employee plans | 0 | 0 |
Shares purchased under employee plans and other | (2) | (1.1) |
Stock-based compensation | 1.3 | 1.7 |
Dividends on preferred stock | (2.6) | (2.6) |
Ending Balance, Shareowners' Equity (Deficit) | $ (189.6) | (188.7) |
Ending Balance, Shares | 3,105,000 | |
Cumulative Convertible Preferred Shares [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance, Shareowners' Equity (Deficit) | $ 129.4 | $ 129.4 |
Beginning Balance, Shares | 3,100,000 | 3,100,000 |
Ending Balance, Shareowners' Equity (Deficit) | $ 129.4 | $ 129.4 |
Ending Balance, Shares | 3,100,000 | 3,100,000 |
Common Stock [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance, Shareowners' Equity (Deficit) | $ 0.5 | $ 0.5 |
Beginning Balance, Shares | 50,700,000 | 50,400,000 |
Shares issued under employee plans | $ 0 | $ 0 |
Shares issued under employee plans | 200,000 | 200,000 |
Ending Balance, Shareowners' Equity (Deficit) | $ 0.5 | $ 0.5 |
Ending Balance, Shares | 50,900,000 | 50,600,000 |
Additional Paid-in Capital [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance, Shareowners' Equity (Deficit) | $ 2,670.3 | $ 2,676.2 |
Shares issued under employee plans | 0 | 0 |
Shares purchased under employee plans and other | (2) | (1.1) |
Stock-based compensation | 1.3 | 1.7 |
Dividends on preferred stock | (2.6) | (2.6) |
Ending Balance, Shareowners' Equity (Deficit) | 2,667 | 2,674.2 |
Retained Earnings [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance, Shareowners' Equity (Deficit) | (2,831.6) | (2,776) |
Net loss | (3) | (34) |
Ending Balance, Shareowners' Equity (Deficit) | (2,834.6) | (2,810) |
Accumulated Other Comprehensive Loss [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance, Shareowners' Equity (Deficit) | (159.7) | (170.1) |
Other comprehensive income (loss) | 7.8 | (12.7) |
Ending Balance, Shareowners' Equity (Deficit) | $ (151.9) | $ (182.8) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 6.7 | $ 12.2 |
Receivables, less allowances of $18.7 and $23.0 | 308.1 | 369.6 |
Inventory, materials and supplies | 38.6 | 35.5 |
Prepaid expenses | 37.7 | 33.5 |
Other current assets | 7.8 | 8.3 |
Total current assets | 398.9 | 459.1 |
Property, plant and equipment, net | 1,731.6 | 1,729.1 |
Operating lease right-of-use assets | 36.6 | 37.4 |
Goodwill | 162 | 161.5 |
Intangible assets, net | 145 | 148.1 |
Deferred income tax assets | 80.8 | 82.5 |
Other noncurrent assets | 48.3 | 50.9 |
Total assets | 2,603.2 | 2,668.6 |
Current liabilities | ||
Current portion of long-term debt | 23.1 | 21.8 |
Accounts payable | 269.2 | 299.2 |
Unearned revenue and customer deposits | 52.5 | 68.9 |
Accrued taxes | 26.3 | 28.1 |
Accrued interest | 24.5 | 26.7 |
Accrued payroll and benefits | 43 | 50.5 |
Other current liabilities | 47.5 | 50.9 |
Total current liabilities | 486.1 | 546.1 |
Long-term debt, less current portion | 1,952.5 | 1,949.9 |
Operating lease liabilities | 33.1 | 33.6 |
Pension and postretirement benefit obligations | 194.2 | 200.2 |
Pole license agreement obligation | 36.4 | 36.7 |
Deferred income tax liabilities | 10.6 | 10.9 |
Other noncurrent liabilities | 79.9 | 82.3 |
Total liabilities | 2,792.8 | 2,859.7 |
Shareowners' Deficit [Abstract] | ||
Preferred stock, 2,357,299 shares authorized; 155,250 shares (3,105,000 depositary shares) of 6 3/4% Cumulative Convertible Preferred Stock issued and outstanding at March 31, 2021 and December 31, 2020; liquidation preference $1,000 per share ($50 per depositary share) | 129.4 | 129.4 |
Common shares, $.01 par value; 96,000,000 shares authorized; 50,920,546 and 50,680,605 shares issued and outstanding at March 31, 2021 and December 31, 2020 | 0.5 | 0.5 |
Additional paid-in capital | 2,667 | 2,670.3 |
Accumulated deficit | (2,834.6) | (2,831.6) |
Accumulated other comprehensive loss | (151.9) | (159.7) |
Total shareowners' deficit | (189.6) | (191.1) |
Total liabilities and shareowners' deficit | $ 2,603.2 | $ 2,668.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Statement Of Financial Position [Abstract] | ||
Allowance for receivables | $ 18,700,000 | $ 23,000,000 |
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 | 50,920,546 | 50,680,605 |
Common Stock, Shares, Outstanding | 50,920,546 | 50,680,605 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (3) | $ (34) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 71 | 74.2 |
Provision for loss on receivables | 0 | 4.5 |
Noncash portion of interest expense | 1.4 | 1.4 |
Deferred income taxes | (0.9) | (20.3) |
Pension and other postretirement payments in excess of expense | (0.3) | (0.2) |
Stock-based compensation | 1.3 | 1.7 |
Other, net | (0.3) | 0.4 |
Changes in operating assets and liabilities: | ||
Decrease in receivables | 61.5 | 29 |
Increase in inventory, materials, supplies, prepaid expenses and other current assets | (9) | (0.5) |
Decrease in accounts payable | (33.9) | (5.3) |
Decrease in accrued and other current liabilities | (30.8) | (25.1) |
Decrease in other noncurrent assets | 3.3 | 2.7 |
(Decrease) increase in other noncurrent liabilities | (0.5) | 0.6 |
Net cash provided by operating activities | 59.8 | 29.1 |
Cash flows from investing activities | ||
Capital expenditures | (60.7) | (50.9) |
Other, net | 0.1 | 0 |
Net cash used in investing activities | (60.6) | (50.9) |
Cash flows from financing activities | ||
Net increase in corporate credit and receivables facilities with initial maturities less than 90 days | 5.8 | 31.1 |
Repayment of debt | (5.8) | (6.2) |
Dividends paid on preferred stock | (2.6) | (2.6) |
Other, net | (2) | (1.1) |
Net cash (used in) provided by financing activities | (4.6) | 21.2 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (0.1) | (0.4) |
Net decrease in cash, cash equivalents and restricted cash | (5.5) | (1) |
Cash, cash equivalents and restricted cash at beginning of period | 17.2 | 11.6 |
Cash, cash equivalents and restricted cash at end of period | 11.7 | 10.6 |
Noncash investing and financing transactions: | ||
Acquisition of property by assuming debt and other noncurrent liabilities | 3.5 | 0.3 |
Acquisition of property on account | $ 29.2 | $ 25.6 |
Description of Business and Acc
Description of Business and Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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") provide 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. The Company has receivables with one customer, Verizon Communications Inc., which make up 16% and 20% of the outstanding accounts receivable balance at March 31, 2021 and December 31, 2020, respectively. Revenue derived from foreign operations was approximately 6% and 5% of consolidated revenue for the three months ended March 31, 2021 and 2020, respectively. Basis of Presentation — The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all adjustments necessary for a fair presentation of the results of operations, other comprehensive income, financial position and cash flows for each period presented. The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations for interim reporting. The Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the full year or any other interim period. Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. Accounting Policies — The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Cash, Cash Equivalents and Restricted Cash — Cash consists of funds held in bank accounts. Cash equivalents consist of short-term, highly liquid investments with original maturities of three months or less. Restricted cash consists of funds held in an escrow account associated with the pending transaction to acquire substantially all of the operating assets of Paniolo Cable Company, LLC (“Paniolo”). See Note 3 for further information related to this transaction. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Condensed Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows: (dollars in millions) March 31, 2021 December 31, 2020 Cash and cash equivalents $ 6.7 $ 12.2 Restricted cash included in Other noncurrent assets 5.0 5.0 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 11.7 $ 17.2 Restructuring Liability — As of March 31, 2021, restructuring liabilities have been established for employee separations. As of March 31, 2021 and December 31, 2020, $2.5 million and $4.5 million, respectively, of the restructuring liabilities was included in “Other current liabilities” in the Condensed Consolidated Balance Sheets Income and Operating Taxes Income taxes — In accordance with Accounting Standards Codification (“ASC”) 740-270, the Company’s income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income/loss plus or minus the tax effects of discrete items. The Company’s estimated annual effective tax rate benefit is lower than statutory rates primarily due to the effect of a valuation allowance applied against the deferred tax assets related to disallowed interest expense, as well as permanent items such as portions of officers’ compensation and meals and entertainment expenses that are not fully deductible for tax. 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. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, in accordance with ASC 606, revenue associated with these charges is excluded from the transaction price. Derivative Financial Instruments — The Company accounts for derivative financial instruments by recognizing derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and recognizing the resulting gains or losses as adjustments to the Condensed Consolidated Statements of Operations or "Accumulated Other Comprehensive Loss." The Company does not hold or issue derivative financial instruments for trading or speculative purposes. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of "Accumulated Other Comprehensive Loss" in stockholder's equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. Derivatives that do not qualify as hedges are adjusted to fair value through earnings in the current period. Recently Issued Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Subtopic 470-20 Subtopic 815-40 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating our contracts and the optional expedients provided by the new standard. 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 standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | 2. Earnings Per Common Share Basic EPS is based upon the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that would occur upon issuance of common shares for awards under stock-based compensation plans or conversion of preferred stock, but only to the extent that they are considered dilutive. The following table shows the computation of basic and diluted EPS: Three Months Ended March 31, (in millions, except per share amounts) 2021 2020 Numerator: Net loss $ (3.0 ) $ (34.0 ) Preferred stock dividends 2.6 2.6 Net loss applicable to common shareowners - basic and diluted $ (5.6 ) $ (36.6 ) Denominator: Weighted average common shares outstanding - basic 50.8 50.5 Stock-based compensation arrangements — — Weighted average common shares outstanding - diluted 50.8 50.5 Basic and diluted net loss per common share $ (0.11 ) $ (0.72 ) For the three months ended March 31, 2021 and 2020, 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 all periods presented, preferred stock convertible into 0.9 million common shares was excluded as it was anti-dilutive. |
Mergers and Acquisitions
Mergers and Acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | 3. Mergers and Pending Acquisition by MIP On December 21, 2019, the Company entered into an Agreement and Plan of Merger (as amended from time to time, the “Brookfield Merger Agreement”) with affiliates of the Brookfield Infrastructure Group (“Brookfield”), the infrastructure investment division of Brookfield Asset Management, which was subsequently amended. Pursuant to the amended Brookfield Merger Agreement, the Company would be acquired by an affiliate of Brookfield for $14.50 per Common Share. On March 13, 2020, the Company terminated the Brookfield Merger Agreement and entered into an Agreement and Plan of Merger (the “MIP Merger Agreement”) pursuant to which the Company will be acquired by an affiliate of Macquarie Infrastructure Partners V (“MIP”), a fund managed by Macquarie Infrastructure and Real Assets (the “MIP Merger”). At the effective time of the MIP Merger (the “Effective Time”), each of our issued and outstanding Common Shares will be converted into the right to receive $15.50 in cash per Common Share, without interest, and the 6 3/4 3 4 In connection with the termination of the Brookfield Merger Agreement in the first quarter of 2020, the Company paid to an affiliate of Brookfield a termination fee of $24.8 million as required by the terms of the Brookfield Merger Agreement. The termination fee is recorded in “Transaction and integration costs” on the Condensed Consolidated Statements of Operations. The consummation of the MIP Merger is subject to customary closing conditions, including (i) the adoption of the MIP Merger Agreement by the affirmative vote of the holders of at least two-thirds of all outstanding Common Shares and 6 3 4 The MIP Merger Agreement contains representations and warranties and covenants of the parties customary for a transaction of this nature. The MIP Merger is expected to close in the second quarter of 2021, although there can be no assurance that the MIP Merger will occur by that date. At the Effective Time, the Company will cease to be a publicly traded company as a result of the completion of the MIP Merger. Consent Solicitation for 7.000% Senior Notes due 2024 and 8.000% Senior Notes due 2025 On June 15, 2020, the Company announced that it had commenced consent solicitations (the “Consent Solicitations”) with respect to certain proposed amendments to the change of control provisions contained in the (i) indenture, dated as of September 22, 2016 (as supplemented and amended, the “2024 Notes Indenture”) governing its 7.000% Senior Notes due 2024 (the “2024 Notes”) and (ii) indenture, dated as of October 6, 2017 (as supplemented and amended, the “2025 Notes Indenture,” and together with the 2024 Notes Indenture, the “Indentures”) governing its 8.000% Senior Notes due 2025 (the “2025 Notes,” and together with the 2024 Notes, the “Notes”). Upon the terms and subject to the conditions described in the consent solicitation statement, dated June 15, 2020 (as supplemented and amended, the “Consent Solicitation Statement”), the Company solicited consents in order to (i) amend the definition of “Change of Control” in the Indentures so that the MIP Merger would not constitute a Change of Control and (ii) add a definition of, and designate certain persons, including MIP and its affiliates and Ares Management Corporation and its affiliates as, “Permitted Holders” (collectively, the “Proposed Amendments”). On July 2, 2020 (the “Effective Date”), following receipt of the requisite consents from holders of each series of Notes with respect to the Proposed Amendments pursuant to the Consent Solicitations, the Company, certain of the Company’s subsidiaries, as guarantors, and Regions Bank, as trustee, entered into a sixth supplemental indenture, dated as of July 2, 2020 (the “Sixth Supplemental Indenture”) to the 2024 Notes Indenture and a second supplemental indenture, dated as of July 2, 2020 to the 2025 Notes Indenture (the “Second Supplemental Indenture”, and together with the Sixth Supplemental Indenture, the “Supplemental Indentures”). Subject to the terms and conditions in the Consent Solicitation Statement (including the consummation of the MIP Merger), holders who validly delivered (and did not validly revoke) their consents on or prior to the Effective Date are eligible to receive (i) with respect to the 2024 Notes, an aggregate cash payment of $2,812,500, on a pro rata basis (based on aggregate principal amount of 2024 Notes for which consents have been validly delivered and not revoked), and (ii) with respect to the 2025 Notes, an aggregate cash payment of $1,050,000, on a pro rata basis (based on aggregate principal amount of 2025 Notes for which consents have been validly delivered and not revoked). The Company expects to make this cash payment substantially concurrently with the consummation of the MIP Merger. The Supplemental Indentures became effective upon execution thereof, but the Proposed Amendments will only become operative upon the occurrence of certain conditions described in the Supplemental Indentures, including payment of the consent fees pursuant to the Consent Solicitations. If the conditions described in the Supplemental Indentures are not satisfied, the Indentures will revert to the form in effect immediately prior to the Effective Date. In addition, subject to the terms and conditions described in the Consent Solicitation Statement and upon satisfaction or waiver of such conditions, including the consummation of the MIP Merger, the Company will secure the Notes and the related guarantees on a pari passu Pending Acquisition of Paniolo Fiber Assets On November 30, 2020, the Company entered into a definitive purchase agreement to acquire substantially all of the operating assets of Paniolo Cable Company, LLC, currently held by the bankruptcy estate of Paniolo, which include inter-island submarine and middle-mile terrestrial fiber infrastructure assets in Hawaii. The Company plans to account for the Paniolo acquisition as an asset acquisition under ASC 805-10-55 “Business Combinations” because the assets to be acquired from Paniolo do not include an assembled workforce, and the gross value of the assets to be acquired meets the screen test in ASC 805-10-55-5A related to substantially all of the fair value being concentrated in a single asset or group of assets (i.e., the fiber infrastructure assets) and, thus, the assets are not considered a business. The acquisition of Paniolo’s assets will augment the Company’s existing backbone network and increase the Company’s total submarine and terrestrial fiber footprint by more than 400 miles. The aggregate purchase price to be paid upon closing of the Paniolo acquisition will be $50.0 million, consisting of $25.0 million in cash and $25.0 million in committed purchase money financing. As of December 31, 2020, the Company has funded $5.0 million to an escrow account to fund a portion of the purchase price and has entered into an agreement with Paniolo to maintain the Paniolo network prior to the close of the acquisition. This escrow amount is classified as restricted cash and recorded in “Other noncurrent assets” on the Condensed Consolidated Balance Sheets. The transaction which is subject to customary closing conditions, including approval of the bankruptcy court and federal regulatory authorities, is expected to close in the second half of 2021. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 4. Revenue The Entertainment and Communications segment provides products and services to both residential and commercial customers that can be categorized as either Fioptics in Cincinnati or Consumer/SMB in Hawaii (collectively, "Consumer/SMB"), 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 and Legacy revenue include both residential and commercial customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers, as well as revenue associated with the Southeast Asia to United States (“SEA-US”) trans-Pacific submarine cable system. Residential customers have implied month-to-month contracts. Commercial customers, with the exception of contracts associated with the SEA-US cable system, 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 cable system 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 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 120 days. Subsequent to the acquisition of Hawaiian Telcom Holdco., Inc. ("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 primarily associated with the SEA-US cable system. 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 transaction price identified in the contract 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 March 31, 2021, 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 $34.2 million. Approximately 80% of this revenue is related to IRU contracts associated with the SEA-US cable system. 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) Nine months ended December 31, 2021 $ 2.0 2022 2.6 2023 2.5 2024 2.6 2025 2.6 Thereafter 21.9 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 Data, Voice and Video, 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, 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, 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, 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 have been one year or less. This practical expedient has been applied to fulfillment costs that include installation costs associated with wiring projects and certain Cloud services. In addition, this practical expedient has been applied to acquisition costs associated with revenue from certain Communications projects. At March 31, 2021 and December 31, 2020, $6.7 million and $7.4 million, respectively, of fulfillment costs were included in “Other noncurrent assets.” At March 31, 2021 and December 31, 2020, $18.9 million and $19.4 million, respectively, of costs of acquisition were included in “Other noncurrent assets.” The Company recognizes a liability for cash received upfront for IRU contracts. At March 31, 2021 and December 31, 2020, $1.7 million and $1.6 million, respectively, of contract liabilities were included in "Other current liabilities." At March 31, 2021 and December 31, 2020, $27.6 million and $26.2 million, respectively, of contract liabilities were included in "Other noncurrent liabilities." Disaggregated Revenue The following table presents revenues disaggregated by product and service lines: Three Months Ended March 31, (dollars in millions) 2021 2020 Data $ 121.3 $ 119.3 Video 48.6 48.7 Voice 65.9 68.0 Other 7.0 7.8 Total Entertainment and Communications 242.8 243.8 Consulting 65.5 41.9 Cloud 23.4 21.5 Communications 54.0 51.2 Infrastructure Solutions 30.9 27.7 Total IT Services and Hardware 173.8 142.3 Intersegment revenue (6.7 ) (6.1 ) Total revenue $ 409.9 $ 380.0 The following table presents revenues disaggregated by contract type: Three Months Ended March 31, (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total 2021 2020 2021 2020 2021 2020 2021 2020 Products and Services transferred at a point in time $ 5.9 $ 7.5 $ 33.4 $ 30.4 $ — $ — $ 39.3 $ 37.9 Products and Services transferred over time 232.1 231.4 138.5 110.7 — — 370.6 342.1 Intersegment revenue 4.8 4.9 1.9 1.2 (6.7 ) (6.1 ) - - Total revenue $ 242.8 $ 243.8 $ 173.8 $ 142.3 $ (6.7 ) $ (6.1 ) $ 409.9 $ 380.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill The changes in the Company's goodwill consisted of the following: (dollars in millions) IT Services and Hardware Entertainment and Communications Total Company Goodwill, balance as of December 31, 2020 $ 149.1 $ 12.4 $ 161.5 Activity during the year: Currency translations 0.5 — 0.5 Goodwill, balance as of March 31, 2021 $ 149.6 $ 12.4 $ 162.0 No impairment losses were recognized in goodwill for the three months ended March 31, 2021 and 2020. Intangible Assets The Company’s intangible assets consisted of the following: March 31, 2021 December 31, 2020 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets subject to amortization Customer relationships $ 142.0 $ (41.5 ) $ 100.5 $ 141.6 $ (38.9 ) $ 102.7 Trade names 41.9 (10.3 ) 31.6 41.7 (9.4 ) 32.3 Technology 10.0 (3.5 ) 6.5 9.9 (3.2 ) 6.7 Total 193.9 (55.3 ) 138.6 193.2 (51.5 ) 141.7 Intangible assets not subject to amortization FCC licenses and spectrum usage rights 6.4 — 6.4 6.4 — 6.4 Total intangible assets $ 200.3 $ (55.3 ) $ 145.0 $ 199.6 $ (51.5 ) $ 148.1 Amortization expense for finite-lived intangible assets was $3.6 million for the three months ended March 31, 2021 and 2020. The change in gross carrying amounts for finite-lived intangible assets is due to foreign currency translation on finite-lived intangible assets denominated in foreign currency. No impairment losses were recognized for the three months ended March 31, 2021 and 2020. The estimated useful lives for each finite-lived 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) Nine months ended December 31, 2021 $ 10.8 2022 14.1 2023 13.8 2024 13.5 2025 13.3 Thereafter 73.1 Total $ 138.6 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | 6. Debt and Other Financing Arrangements The Company’s debt consists of the following: March 31, December 31, (dollars in millions) 2021 2020 Current portion of long-term debt: Credit Agreement - Tranche B Term Loan due 2024 $ 6.0 $ 6.0 Other financing arrangements 1.3 1.9 Finance lease liabilities 15.8 13.9 Current portion of long-term debt 23.1 21.8 Long-term debt, less current portion: Receivables Facility 183.9 182.0 Credit Agreement - Revolving Credit Facility 71.0 67.0 Credit Agreement - Tranche B Term Loan due 2024 579.0 580.5 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 0.6 0.9 Finance lease liabilities 49.6 52.1 1,969.3 1,967.7 Net unamortized premium 1.0 1.1 Unamortized note issuance costs (17.8 ) (18.9 ) Long-term debt, less current portion 1,952.5 1,949.9 Total debt $ 1,975.6 $ 1,971.7 Credit Agreement The Company had $71.0 million of outstanding borrowings on the Revolving Credit Facility, leaving $129.0 million available for borrowings as of March 31, 2021. The Credit Agreement expires in October 2022. Accounts Receivable Securitization Facility As of March 31, 2021, the Company had $183.9 million in borrowings and $13.9 million of letters of credit outstanding under the accounts receivable securitization facility ("Receivables Facility”), leaving $2.2 million remaining availability on the total borrowing capacity of $200.0 million. The maximum borrowing limit for loans and letters of credit under the Receivables Facility was $200.0 million in the aggregate at March 31, 2021. The available borrowing capacity is calculated monthly based on the quantity and quality of outstanding accounts receivable, and thus may be lower than the maximum borrowing limit. At March 31, 2021, the Receivables Facility, which is subject to renewal every 364 days, had a renewal date in May 2021 and termination date in May 2023. In April 2021, the Company executed amendments to its Receivables Facility, which replaced, amended and added certain provisions and definitions to increase the credit and renew the facility. While the Receivables Facility is subject to renewal every 364 days, the amendments extended the facility’s renewal date until June 2023 and the facility’s termination date to June 2024. The maximum borrowing limit for loans and letters of credit under the Receivables Facility was increased from $200.0 million to $215.0 million in the aggregate. Under the Receivables Facility, 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 March 31, 2021, the outstanding balance of certain accounts receivable sold was $3.3 million. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 7. 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. Supplemental balance sheet information related to the Company's leases was as follows: (dollars in millions) Balance Sheet Location March 31, 2021 December 31, 2020 Operating lease assets, net of amortization Operating lease right-of-use assets $ 36.6 $ 37.4 Finance lease assets, net of amortization Property, plant and equipment, net 26.5 28.0 Operating lease liabilities: Current operating lease liabilities Other current liabilities 9.3 9.6 Noncurrent operating lease liabilities Operating lease liabilities 33.1 33.6 Total operating lease liabilities 42.4 43.2 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 15.8 13.9 Noncurrent finance lease liabilities Long-term debt, less current portion 49.6 52.1 Total finance lease liabilities $ 65.4 $ 66.0 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, (dollars in millions) 2021 2020 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.5 $ 1.1 Operating cash flows from operating leases $ 2.5 $ 3.1 Financing cash flows from finance leases $ 4.2 $ 4.4 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ 1.7 $ 1.1 New finance leases $ 3.5 $ 0.3 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 8. Financial Instruments and Fair Value Measurements Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. To increase consistency and comparability in fair value measurements, the Company uses a three-level hierarchy that prioritizes the use of observable inputs. The three levels are: 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. 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 $9.3 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 March 31, 2021, the fair value of the interest rate swaps was $22.3 million and is recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location March 31, 2021 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 9.3 $ — $ 9.3 $ — Interest Rate Swap Other noncurrent liabilities $ 13.0 $ — $ 13.0 $ — As of December 31, 2020, the fair value of the interest rate swap liability was $25.4 million and is recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location December 31, 2020 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 9.3 $ — $ 9.3 $ — Interest Rate Swap Other noncurrent liabilities $ 16.1 $ — $ 16.1 $ — The amount of gains (losses) recognized in Accumulated Other Comprehensive Income ("AOCI") net of reclassifications into earnings is as follows: Three Months Ended March 31, (dollars in millions) 2021 2020 Interest Rate Swap $ 3.1 $ (11.7 ) The amount of losses reclassified from AOCI into earnings is as follows: Three Months Ended March 31, (dollars in millions) Statement of Operations Location 2021 2020 Interest Rate Swap Interest expense $ (2.3 ) $ (1.4 ) Disclosure on Financial Instruments The carrying values of the Company's financial instruments approximate the estimated fair values as of March 31, 2021 and December 31, 2020, except for the Company's long-term debt and other installment financing arrangements. The carrying and fair values of these items are as follows: March 31, 2021 December 31, 2020 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,926.1 $ 1,976.6 $ 1,921.8 $ 1,973.4 Other installment financing arrangements 41.7 56.0 42.1 58.6 *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 March 31, 2021 and December 31, 2020, which is considered Level 2 of the fair value hierarchy. The fair value of the other |
Pension and Postretirement Plan
Pension and Postretirement Plans | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Postretirement Plans | 9. Pension and Postretirement Plans As of March 31, 2021, the Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan in Cincinnati (collectively the "Cincinnati Plans"), and 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"). In accordance with ASC 715, only the service cost component of net benefit cost is eligible for capitalization, which was immaterial for the three months ended March 31, 2021 and 2020. For the three months ended March 31, 2021 and 2020, pension and postretirement costs (benefits) were as follows: Three Months Ended March 31, 2021 2020 2021 2020 (dollars in millions) Pension Benefits Postretirement and Other Benefits Service cost $ — $ — $ 0.1 $ 0.1 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 3.8 4.8 0.6 0.9 Expected return on plan assets (7.5 ) (7.3 ) — — Amortization of: Prior service benefit — — (0.6 ) (0.6 ) Actuarial loss 6.3 4.5 — 0.2 Pension / postretirement costs $ 2.6 $ 2.0 $ 0.1 $ 0.6 Amortizations of prior service benefit and actuarial loss represent reclassifications from accumulated other comprehensive income. For the three months ended March 31, 2021, contributions to both qualified and non-qualified pension plans were $0.7 million. For the three months ended March 31, 2020, contributions to qualified and non-qualified pension plans were $0.8 million and $0.6 million, respectively. Based on current assumptions, nominal additional contributions are expected to be made to the qualified pension plans in 2021. Contributions to the non-qualified pension plans in 2021 are expected to be approximately $3 million. For the three months ended March 31, 2021 and 2020, contributions to our postretirement plans were $1.7 million and $1.5 million, respectively. Management expects to make cash payments of approximately $8 million related to its postretirement health plans in 2021. |
Shareowners' Deficit
Shareowners' Deficit | 3 Months Ended |
Mar. 31, 2021 | |
Shareowners Deficit [Abstract] | |
Shareowners' Deficit | 10. Shareowners' Deficit Accumulated Other Comprehensive Loss For the three months ended March 31, 2021 and 2020, 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, 2020 $ (138.8 ) $ (19.7 ) $ (1.2 ) $ (159.7 ) Reclassifications, net 4.4 (a) 1.8 (b) — 6.2 Unrealized gain on cash flow hedges arising during the period, net — 0.6 (c) — 0.6 Foreign currency gain — — 1.0 1.0 Balance as of March 31, 2021 $ (134.4 ) $ (17.3 ) $ (0.2 ) $ (151.9 ) Balance as of December 31, 2019 $ (152.0 ) $ (14.7 ) $ (3.4 ) $ (170.1 ) Reclassifications, net 3.2 (a) 1.1 (b) — 4.3 Unrealized loss on cash flow hedges arising during the period, net — (10.1 ) (c) — (10.1 ) Foreign currency loss — — (6.9 ) (6.9 ) Balance as of March 31, 2020 $ (148.8 ) $ (23.7 ) $ (10.3 ) $ (182.8 ) (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. The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations. See Note 9 for further disclosures. (b) These reclassifications are reported within "Interest expense" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings. (c) The unrealized gain (loss), net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets. See Note 8 for further disclosures. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segment Information | 11. Business Segment Information The Company’s segments are strategic business units that offer distinct products and services and are aligned with the Company's internal management structure and reporting. The Company operates two business segments identified as Entertainment and Communications and IT Services and Hardware. The Entertainment and Communications segment provides products and services that can be categorized as Data, Video, Voice or Other. Data products include high-speed internet access, digital subscriber lines, ethernet, SONET, dedicated internet access, wavelength, digital signal and IRU. Video services provide our customers access to over 400 entertainment channels, over 150 high-definition channels, parental controls, HD DVR, Video On-Demand and access to a live TV streaming application. Voice represents traditional voice lines as well as fiber voice lines, consumer long distance, switched access and digital trunking. Other services consist of revenue generated from wiring projects for enterprise customers, advertising, directory assistance, maintenance and information services. The IT Services and Hardware segment provides end-to-end solutions from consulting to implementation to ongoing optimization. These solutions include Cloud, Communications and Consulting services along with the sale, installation and maintenance of major branded Telecom and IT hardware reported as Infrastructure Solutions. Certain corporate administrative expenses have been allocated to the segments based upon the nature of the expense and the relative size of the segment. Intercompany transactions between segments have been eliminated. Selected financial data for the Company’s business segment information is as follows: Three Months Ended March 31, (dollars in millions) 2021 2020 Revenue Entertainment and Communications $ 242.8 $ 243.8 IT Services and Hardware 173.8 142.3 Intersegment (6.7 ) (6.1 ) Total revenue $ 409.9 $ 380.0 Intersegment revenue Entertainment and Communications $ 4.8 $ 4.9 IT Services and Hardware 1.9 1.2 Total intersegment revenue $ 6.7 $ 6.1 Operating income (loss) Entertainment and Communications $ 31.3 $ 12.1 IT Services and Hardware 8.6 1.7 Corporate (7.3 ) (34.0 ) Total operating income (loss) $ 32.6 $ (20.2 ) Expenditures for long-lived assets Entertainment and Communications $ 55.0 $ 44.4 IT Services and Hardware 5.7 6.5 Total expenditures for long-lived assets $ 60.7 $ 50.9 Depreciation and amortization Entertainment and Communications $ 60.8 $ 63.9 IT Services and Hardware 10.1 10.3 Corporate 0.1 — Total depreciation and amortization $ 71.0 $ 74.2 March 31, December 31, (dollars in millions) 2021 2020 Assets Entertainment and Communications $ 1,797.3 $ 1,803.3 IT Services and Hardware 458.2 477.2 Corporate and eliminations 347.7 388.1 Total assets $ 2,603.2 $ 2,668.6 |
Description of Business and A_2
Description of Business and Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation — The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all adjustments necessary for a fair presentation of the results of operations, other comprehensive income, financial position and cash flows for each period presented. The adjustments referred to above are of a normal and recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to SEC rules and regulations for interim reporting. The Condensed Consolidated Balance Sheet as of December 31, 2020 was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. These Condensed Consolidated Financial Statements should be read in conjunction with the Company’s 2020 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the full year or any other interim period. |
Use of Estimates | Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. |
Accounting Policies | Accounting Policies — The complete summary of significant accounting policies is included in the notes to the consolidated financial statements as presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020. |
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. Restricted cash consists of funds held in an escrow account associated with the pending transaction to acquire substantially all of the operating assets of Paniolo Cable Company, LLC (“Paniolo”). See Note 3 for further information related to this transaction. Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the Condensed Consolidated Statements of Cash Flows. A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows: (dollars in millions) March 31, 2021 December 31, 2020 Cash and cash equivalents $ 6.7 $ 12.2 Restricted cash included in Other noncurrent assets 5.0 5.0 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 11.7 $ 17.2 |
Restructuring Liability | Restructuring Liability — As of March 31, 2021, restructuring liabilities have been established for employee separations. As of March 31, 2021 and December 31, 2020, $2.5 million and $4.5 million, respectively, of the restructuring liabilities was included in “Other current liabilities” in the Condensed Consolidated Balance Sheets |
Income Taxes | Income taxes — In accordance with Accounting Standards Codification (“ASC”) 740-270, the Company’s income tax provision for interim periods is determined through the use of an estimated annual effective tax rate applied to year-to-date ordinary income/loss plus or minus the tax effects of discrete items. The Company’s estimated annual effective tax rate benefit is lower than statutory rates primarily due to the effect of a valuation allowance applied against the deferred tax assets related to disallowed interest expense, as well as permanent items such as portions of officers’ compensation and meals and entertainment expenses that are not fully deductible for tax. |
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. Certain telecommunication taxes and surcharges that are collected from customers are also recorded as revenue; however, in accordance with ASC 606, revenue associated with these charges is excluded from the transaction price. |
Derivative Financial Instruments | Derivative Financial Instruments — The Company accounts for derivative financial instruments by recognizing derivative instruments as either assets or liabilities in the Condensed Consolidated Balance Sheets at fair value and recognizing the resulting gains or losses as adjustments to the Condensed Consolidated Statements of Operations or "Accumulated Other Comprehensive Loss." The Company does not hold or issue derivative financial instruments for trading or speculative purposes. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of "Accumulated Other Comprehensive Loss" in stockholder's equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. Derivatives that do not qualify as hedges are adjusted to fair value through earnings in the current period. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Subtopic 470-20 Subtopic 815-40 In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating our contracts and the optional expedients provided by the new standard. 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 standard-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s condensed consolidated financial statements upon adoption. |
Earnings Per Common Share | Basic EPS is based upon the weighted average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that would occur upon issuance of common shares for awards under stock-based compensation plans or conversion of preferred stock, but only to the extent that they are considered dilutive. |
Revenue | The Entertainment and Communications segment provides products and services to both residential and commercial customers that can be categorized as either Fioptics in Cincinnati or Consumer/SMB in Hawaii (collectively, "Consumer/SMB"), 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 and Legacy revenue include both residential and commercial customers. Enterprise Fiber revenue includes ethernet and dedicated internet access services that are provided to enterprise customers, as well as revenue associated with the Southeast Asia to United States (“SEA-US”) trans-Pacific submarine cable system. Residential customers have implied month-to-month contracts. Commercial customers, with the exception of contracts associated with the SEA-US cable system, 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 cable system 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 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 120 days. Subsequent to the acquisition of Hawaiian Telcom Holdco., Inc. ("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 primarily associated with the SEA-US cable system. The IRU contracts typically have a duration ranging from 15 to 25 years. |
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 March 31, 2021 and December 31, 2020, which is considered Level 2 of the fair value hierarchy. The fair value of the other |
Description of Business and A_3
Description of Business and Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | A reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets follows: (dollars in millions) March 31, 2021 December 31, 2020 Cash and cash equivalents $ 6.7 $ 12.2 Restricted cash included in Other noncurrent assets 5.0 5.0 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 11.7 $ 17.2 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table shows the computation of basic and diluted EPS: Three Months Ended March 31, (in millions, except per share amounts) 2021 2020 Numerator: Net loss $ (3.0 ) $ (34.0 ) Preferred stock dividends 2.6 2.6 Net loss applicable to common shareowners - basic and diluted $ (5.6 ) $ (36.6 ) Denominator: Weighted average common shares outstanding - basic 50.8 50.5 Stock-based compensation arrangements — — Weighted average common shares outstanding - diluted 50.8 50.5 Basic and diluted net loss per common share $ (0.11 ) $ (0.72 ) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Expected Revenue to be Recognized for Existing IRU Contracts | (dollars in millions) Nine months ended December 31, 2021 $ 2.0 2022 2.6 2023 2.5 2024 2.6 2025 2.6 Thereafter 21.9 |
Schedule of Revenues Disaggregation by Product and Service Lines | The following table presents revenues disaggregated by product and service lines: Three Months Ended March 31, (dollars in millions) 2021 2020 Data $ 121.3 $ 119.3 Video 48.6 48.7 Voice 65.9 68.0 Other 7.0 7.8 Total Entertainment and Communications 242.8 243.8 Consulting 65.5 41.9 Cloud 23.4 21.5 Communications 54.0 51.2 Infrastructure Solutions 30.9 27.7 Total IT Services and Hardware 173.8 142.3 Intersegment revenue (6.7 ) (6.1 ) Total revenue $ 409.9 $ 380.0 The following table presents revenues disaggregated by contract type: Three Months Ended March 31, (dollars in millions) Entertainment and Communications IT Services and Hardware Intersegment revenue elimination Total 2021 2020 2021 2020 2021 2020 2021 2020 Products and Services transferred at a point in time $ 5.9 $ 7.5 $ 33.4 $ 30.4 $ — $ — $ 39.3 $ 37.9 Products and Services transferred over time 232.1 231.4 138.5 110.7 — — 370.6 342.1 Intersegment revenue 4.8 4.9 1.9 1.2 (6.7 ) (6.1 ) - - Total revenue $ 242.8 $ 243.8 $ 173.8 $ 142.3 $ (6.7 ) $ (6.1 ) $ 409.9 $ 380.0 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the Company's goodwill consisted of the following: (dollars in millions) IT Services and Hardware Entertainment and Communications Total Company Goodwill, balance as of December 31, 2020 $ 149.1 $ 12.4 $ 161.5 Activity during the year: Currency translations 0.5 — 0.5 Goodwill, balance as of March 31, 2021 $ 149.6 $ 12.4 $ 162.0 |
Schedule of Intangible Assets | The Company’s intangible assets consisted of the following: March 31, 2021 December 31, 2020 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets subject to amortization Customer relationships $ 142.0 $ (41.5 ) $ 100.5 $ 141.6 $ (38.9 ) $ 102.7 Trade names 41.9 (10.3 ) 31.6 41.7 (9.4 ) 32.3 Technology 10.0 (3.5 ) 6.5 9.9 (3.2 ) 6.7 Total 193.9 (55.3 ) 138.6 193.2 (51.5 ) 141.7 Intangible assets not subject to amortization FCC licenses and spectrum usage rights 6.4 — 6.4 6.4 — 6.4 Total intangible assets $ 200.3 $ (55.3 ) $ 145.0 $ 199.6 $ (51.5 ) $ 148.1 |
Schedule of Estimated Useful Lives for Finite-Lived Intangible Assets | The estimated useful lives for each finite-lived 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) Nine months ended December 31, 2021 $ 10.8 2022 14.1 2023 13.8 2024 13.5 2025 13.3 Thereafter 73.1 Total $ 138.6 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consists of the following: March 31, December 31, (dollars in millions) 2021 2020 Current portion of long-term debt: Credit Agreement - Tranche B Term Loan due 2024 $ 6.0 $ 6.0 Other financing arrangements 1.3 1.9 Finance lease liabilities 15.8 13.9 Current portion of long-term debt 23.1 21.8 Long-term debt, less current portion: Receivables Facility 183.9 182.0 Credit Agreement - Revolving Credit Facility 71.0 67.0 Credit Agreement - Tranche B Term Loan due 2024 579.0 580.5 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 0.6 0.9 Finance lease liabilities 49.6 52.1 1,969.3 1,967.7 Net unamortized premium 1.0 1.1 Unamortized note issuance costs (17.8 ) (18.9 ) Long-term debt, less current portion 1,952.5 1,949.9 Total debt $ 1,975.6 $ 1,971.7 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 December 31, 2020 Operating lease assets, net of amortization Operating lease right-of-use assets $ 36.6 $ 37.4 Finance lease assets, net of amortization Property, plant and equipment, net 26.5 28.0 Operating lease liabilities: Current operating lease liabilities Other current liabilities 9.3 9.6 Noncurrent operating lease liabilities Operating lease liabilities 33.1 33.6 Total operating lease liabilities 42.4 43.2 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 15.8 13.9 Noncurrent finance lease liabilities Long-term debt, less current portion 49.6 52.1 Total finance lease liabilities $ 65.4 $ 66.0 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, (dollars in millions) 2021 2020 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.5 $ 1.1 Operating cash flows from operating leases $ 2.5 $ 3.1 Financing cash flows from finance leases $ 4.2 $ 4.4 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ 1.7 $ 1.1 New finance leases $ 3.5 $ 0.3 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Interest rate Swaps Recorded in Condensed Consolidated Balance Sheets | As of March 31, 2021, the fair value of the interest rate swaps was $22.3 million and is recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location March 31, 2021 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 9.3 $ — $ 9.3 $ — Interest Rate Swap Other noncurrent liabilities $ 13.0 $ — $ 13.0 $ — As of December 31, 2020, the fair value of the interest rate swap liability was $25.4 million and is recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location December 31, 2020 Quoted Prices in active markets Level 1 Significant observable inputs Level 2 Significant unobservable inputs Level 3 Liabilities: Interest Rate Swap Other current liabilities $ 9.3 $ — $ 9.3 $ — Interest Rate Swap Other noncurrent liabilities $ 16.1 $ — $ 16.1 $ — |
Amount of Gains (Losses) Recognized in Accumulated Other Comprehensive Income Net of Reclassification into Earnings | The amount of gains (losses) recognized in Accumulated Other Comprehensive Income ("AOCI") net of reclassifications into earnings is as follows: Three Months Ended March 31, (dollars in millions) 2021 2020 Interest Rate Swap $ 3.1 $ (11.7 ) |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The amount of losses reclassified from AOCI into earnings is as follows: Three Months Ended March 31, (dollars in millions) Statement of Operations Location 2021 2020 Interest Rate Swap Interest expense $ (2.3 ) $ (1.4 ) |
Schedule of Carrying and Fair Values by Balance Sheet Grouping | The carrying and fair values of these items are as follows: March 31, 2021 December 31, 2020 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,926.1 $ 1,976.6 $ 1,921.8 $ 1,973.4 Other installment financing arrangements 41.7 56.0 42.1 58.6 *Excludes finance leases, other financing arrangements and note issuance costs. |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Pension and Postretirement Costs (Benefits) | For the three months ended March 31, 2021 and 2020, pension and postretirement costs (benefits) were as follows: Three Months Ended March 31, 2021 2020 2021 2020 (dollars in millions) Pension Benefits Postretirement and Other Benefits Service cost $ — $ — $ 0.1 $ 0.1 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 3.8 4.8 0.6 0.9 Expected return on plan assets (7.5 ) (7.3 ) — — Amortization of: Prior service benefit — — (0.6 ) (0.6 ) Actuarial loss 6.3 4.5 — 0.2 Pension / postretirement costs $ 2.6 $ 2.0 $ 0.1 $ 0.6 |
Shareowners' Deficit (Tables)
Shareowners' Deficit (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Shareowners Deficit [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Loss by Component | For the three months ended March 31, 2021 and 2020, 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, 2020 $ (138.8 ) $ (19.7 ) $ (1.2 ) $ (159.7 ) Reclassifications, net 4.4 (a) 1.8 (b) — 6.2 Unrealized gain on cash flow hedges arising during the period, net — 0.6 (c) — 0.6 Foreign currency gain — — 1.0 1.0 Balance as of March 31, 2021 $ (134.4 ) $ (17.3 ) $ (0.2 ) $ (151.9 ) Balance as of December 31, 2019 $ (152.0 ) $ (14.7 ) $ (3.4 ) $ (170.1 ) Reclassifications, net 3.2 (a) 1.1 (b) — 4.3 Unrealized loss on cash flow hedges arising during the period, net — (10.1 ) (c) — (10.1 ) Foreign currency loss — — (6.9 ) (6.9 ) Balance as of March 31, 2020 $ (148.8 ) $ (23.7 ) $ (10.3 ) $ (182.8 ) (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. The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations. See Note 9 for further disclosures. (b) These reclassifications are reported within "Interest expense" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings. (c) The unrealized gain (loss), net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets. See Note 8 for further disclosures. |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Selected Financial Data for the Company's Business Segment Information | Selected financial data for the Company’s business segment information is as follows: Three Months Ended March 31, (dollars in millions) 2021 2020 Revenue Entertainment and Communications $ 242.8 $ 243.8 IT Services and Hardware 173.8 142.3 Intersegment (6.7 ) (6.1 ) Total revenue $ 409.9 $ 380.0 Intersegment revenue Entertainment and Communications $ 4.8 $ 4.9 IT Services and Hardware 1.9 1.2 Total intersegment revenue $ 6.7 $ 6.1 Operating income (loss) Entertainment and Communications $ 31.3 $ 12.1 IT Services and Hardware 8.6 1.7 Corporate (7.3 ) (34.0 ) Total operating income (loss) $ 32.6 $ (20.2 ) Expenditures for long-lived assets Entertainment and Communications $ 55.0 $ 44.4 IT Services and Hardware 5.7 6.5 Total expenditures for long-lived assets $ 60.7 $ 50.9 Depreciation and amortization Entertainment and Communications $ 60.8 $ 63.9 IT Services and Hardware 10.1 10.3 Corporate 0.1 — Total depreciation and amortization $ 71.0 $ 74.2 March 31, December 31, (dollars in millions) 2021 2020 Assets Entertainment and Communications $ 1,797.3 $ 1,803.3 IT Services and Hardware 458.2 477.2 Corporate and eliminations 347.7 388.1 Total assets $ 2,603.2 $ 2,668.6 |
Description of Business and A_4
Description of Business and Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($)Customer | Mar. 31, 2020 | Dec. 31, 2020USD ($)Customer | |
Description of Business and Accounting Policies [Line Items] | |||
Number of customers, exceeds 10% of total accounts receivable | Customer | 1 | 1 | |
Revenue derived from foreign operations | 6.00% | 5.00% | |
Restructuring liabilities included in other current liabilities | $ | $ 2.5 | $ 4.5 | |
Verizon Communications Inc. [Member] | |||
Description of Business and Accounting Policies [Line Items] | |||
Accounts receivable from one customer greater than 10%, percentage | 16.00% | 20.00% |
Description of Business and A_5
Description of Business and Accounting Policies - Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 6.7 | $ 12.2 | ||
Restricted cash included in Other noncurrent assets | $ 5 | $ 5 | ||
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets | ||
Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows | $ 11.7 | $ 17.2 | $ 10.6 | $ 11.6 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net loss | $ (3) | $ (34) |
Preferred stock dividends | 2.6 | 2.6 |
Net loss applicable to common shareowners - basic and diluted | $ (5.6) | $ (36.6) |
Denominator: | ||
Weighted average common shares outstanding - basic | 50.8 | 50.5 |
Stock-based compensation arrangements | 0 | 0 |
Weighted average common shares outstanding - diluted | 50.8 | 50.5 |
Basic and diluted net loss per common share | $ (0.11) | $ (0.72) |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narratives (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
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 |
Mergers and Acquisitions - Narr
Mergers and Acquisitions - Narratives (Details) | Mar. 13, 2020USD ($)$ / shares | Nov. 30, 2020USD ($)mi | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 05, 2020$ / shares |
Business Acquisition [Line Items] | |||||
Preferred Stock, Dividend Rate, Percentage | 6.75% | 6.75% | |||
Funded to escrow account | $ 5,000,000 | $ 5,000,000 | |||
Senior Notes due 2024 [Member] | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 7.00% | ||||
Senior Notes Due 2025 [Member] | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 8.00% | ||||
Senior Notes due 2023 [Member] | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 7.25% | ||||
Senior Notes Due 2028 [Member] | Cincinnati Bell Telephone Company LLC (CBT) [Member] | |||||
Business Acquisition [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 6.30% | ||||
Brookfield Infrastructure Group [Member] | |||||
Business Acquisition [Line Items] | |||||
Common shares price per share as stock consideration | $ / shares | $ 14.50 | ||||
Termination fee | $ 24,800,000 | ||||
MIP Merger [Member] | |||||
Business Acquisition [Line Items] | |||||
Common shares price per share as stock consideration | $ / shares | $ 15.50 | ||||
MIP Merger [Member] | Senior Notes due 2024 [Member] | |||||
Business Acquisition [Line Items] | |||||
Aggregate cash payment on pro rata basis | $ 2,812,500 | ||||
MIP Merger [Member] | Senior Notes Due 2025 [Member] | |||||
Business Acquisition [Line Items] | |||||
Aggregate cash payment on pro rata basis | 1,050,000 | ||||
Paniolo Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Aggregate purchase price | $ 50,000,000 | ||||
Cash consideration | 25,000,000 | ||||
Business combination, committed purchase amount | $ 25,000,000 | ||||
Funded to escrow account | $ 5,000,000 | ||||
Paniolo Acquisition [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Fiber route miles | mi | 400 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Payment terms for customers, lower range | 30 days | |
Payment term for customers, upper range | 120 days | |
Total | $ 34.2 | |
Revenue, Remaining Performance Obligation, Percentage | 80.00% | |
Unearned revenue and customer deposits | $ 52.5 | $ 68.9 |
Other Current Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Unearned revenue and customer deposits | 1.7 | 1.6 |
Other Noncurrent Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract liabilities, recognized, noncurrent | 27.6 | 26.2 |
Fulfillment Costs [Member] | Other Noncurrent Assets [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Capitalized contract cost, net | 6.7 | 7.4 |
Cost of Acquisition [Member] | Other Noncurrent Assets [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Capitalized contract cost, net | $ 18.9 | $ 19.4 |
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 | Mar. 31, 2021USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 34.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months |
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 | $ 2.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 21.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Revenue - Schedule of Revenues
Revenue - Schedule of Revenues Disaggregation by Product and Service Lines (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 409.9 | $ 380 |
Operating Segments [Member] | Entertainment and Communications [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 242.8 | 243.8 |
Operating Segments [Member] | IT Services and Hardware [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 173.8 | 142.3 |
Intersegment Eliminations [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | (6.7) | (6.1) |
Intersegment Eliminations [Member] | Entertainment and Communications [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 4.8 | 4.9 |
Intersegment Eliminations [Member] | IT Services and Hardware [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 1.9 | 1.2 |
Data [Member] | Operating Segments [Member] | Entertainment and Communications [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 121.3 | 119.3 |
Video [Member] | Operating Segments [Member] | Entertainment and Communications [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 48.6 | 48.7 |
Voice [Member] | Operating Segments [Member] | Entertainment and Communications [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 65.9 | 68 |
Other [Member] | Operating Segments [Member] | Entertainment and Communications [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 7 | 7.8 |
Consulting [Member] | Operating Segments [Member] | IT Services and Hardware [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 65.5 | 41.9 |
Cloud [Member] | Operating Segments [Member] | IT Services and Hardware [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 23.4 | 21.5 |
Communications [Member] | Operating Segments [Member] | IT Services and Hardware [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 54 | 51.2 |
Infrastructure Solutions [Member] | Operating Segments [Member] | IT Services and Hardware [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 30.9 | $ 27.7 |
Revenue - Schedule of Revenue_2
Revenue - Schedule of Revenues Disaggregation by Contract Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 409.9 | $ 380 |
Intersegment Eliminations [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | (6.7) | (6.1) |
Transferred at Point in Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 39.3 | 37.9 |
Transferred at Point in Time [Member] | Intersegment Eliminations [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Transferred over Time [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 370.6 | 342.1 |
Transferred over Time [Member] | Intersegment Eliminations [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Entertainment and Communications [Member] | Operating Segments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 242.8 | 243.8 |
Entertainment and Communications [Member] | Intersegment Eliminations [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 4.8 | 4.9 |
Entertainment and Communications [Member] | Transferred at Point in Time [Member] | Operating Segments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 5.9 | 7.5 |
Entertainment and Communications [Member] | Transferred over Time [Member] | Operating Segments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 232.1 | 231.4 |
IT Services and Hardware [Member] | Operating Segments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 173.8 | 142.3 |
IT Services and Hardware [Member] | Intersegment Eliminations [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 1.9 | 1.2 |
IT Services and Hardware [Member] | Transferred at Point in Time [Member] | Operating Segments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | 33.4 | 30.4 |
IT Services and Hardware [Member] | Transferred over Time [Member] | Operating Segments [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Revenues | $ 138.5 | $ 110.7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 161.5 |
Currency translations | 0.5 |
Goodwill, ending balance | 162 |
IT Services and Hardware [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 149.1 |
Currency translations | 0.5 |
Goodwill, ending balance | 149.6 |
Entertainment and Communications [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 12.4 |
Currency translations | 0 |
Goodwill, ending balance | $ 12.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Impairment losses recognized in goodwill | $ 0 | $ 0 |
Amortization of finite-lived intangible assets | 3,600,000 | 3,600,000 |
Impairment of intangible assets, finite-lived | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | $ 193.9 | $ 193.2 |
Accumulated amortization | (55.3) | (51.5) |
Intangible assets subject to amortization, net amount | 138.6 | 141.7 |
Intangible assets, gross carrying amount | 200.3 | 199.6 |
Intangible assets, net amount | 145 | 148.1 |
FCC Licenses and Spectrum Usage Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | 6.4 | 6.4 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | 142 | 141.6 |
Accumulated amortization | (41.5) | (38.9) |
Intangible assets subject to amortization, net amount | 100.5 | 102.7 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | 41.9 | 41.7 |
Accumulated amortization | (10.3) | (9.4) |
Intangible assets subject to amortization, net amount | 31.6 | 32.3 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | 10 | 9.9 |
Accumulated amortization | (3.5) | (3.2) |
Intangible assets subject to amortization, net amount | $ 6.5 | $ 6.7 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Useful Lives for Finite-Lived Intangible Assets (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Customer Relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Customer Relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Trade Names [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Trade Names [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Technology [Member] | |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
Nine months ended December 31, 2021 | $ 10.8 | |
2022 | 14.1 | |
2023 | 13.8 | |
2024 | 13.5 | |
2025 | 13.3 | |
Thereafter | 73.1 | |
Intangible assets subject to amortization, net amount | $ 138.6 | $ 141.7 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 23.1 | $ 21.8 |
Other Financing Arrangements, Current Portion | 1.3 | 1.9 |
Finance lease liabilities, current | 15.8 | 13.9 |
Receivables Facility | 183.9 | 182 |
Credit Agreement - Revolving Credit Facility | 71 | 67 |
Long-term debt, less current portion | 1,952.5 | 1,949.9 |
Other Financing Arrangements, Non-Current Portion | 0.6 | 0.9 |
Finance lease liabilities, Noncurrent | 49.6 | 52.1 |
Long-term debt gross | 1,969.3 | 1,967.7 |
Net unamortized premium | 1 | 1.1 |
Unamortized note issuance costs | (17.8) | (18.9) |
Total debt | 1,975.6 | 1,971.7 |
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 | 579 | 580.5 |
Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Noncurrent | 22.3 | 22.3 |
Senior Notes due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Noncurrent | 625 | 625 |
Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Senior Notes, Noncurrent | 350 | 350 |
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 - Schedule of Debt (Parenthetical) (Details) | Mar. 31, 2021 |
Senior Notes due 2023 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated percentage | 7.25% |
Senior Notes due 2024 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated percentage | 7.00% |
Senior Notes Due 2025 [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate, stated percentage | 8.00% |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Narrative (Details) - USD ($) | Apr. 23, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Line Of Credit Facility [Line Items] | |||
Long-term Line of Credit | $ 71,000,000 | $ 67,000,000 | |
Borrowing capacity | 129,000,000 | ||
Receivables facility amount outstanding | 183,900,000 | $ 182,000,000 | |
Letters of Credit Outstanding, Amount | 13,900,000 | ||
Receivables Facility Remaining Borrowing Capacity | 2,200,000 | ||
Receivables Facility Maximum Borrowing Availability | 200,000,000 | ||
Receivables facility maximum borrowing capacity | $ 200,000,000 | ||
Accounts Receivable Facility, Renewal Term | 364 days | ||
Accounts Receivable Facility, Expiration Year And Month | 2023-05 | ||
Accounts Receivable Facility, Renewal Term, Month and Year | 2021-05 | ||
Accounts Receivable Sold | $ 3,300,000 | ||
Subsequent Event [Member] | |||
Line Of Credit Facility [Line Items] | |||
Receivables facility maximum borrowing capacity | $ 215,000,000 | ||
Accounts Receivable Facility, Renewal Term | 364 days | ||
Accounts Receivable Facility, Expiration Year And Month | 2024-06 | ||
Accounts Receivable Facility, Renewal Term, Month and Year | 2023-06 | ||
Subsequent Event [Member] | Receivables Facilities [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||
Revolving Credit Facility [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument expiration date | 2022-10 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease assets, net of amortization | $ 36.6 | $ 37.4 |
Finance lease assets, net of amortization | $ 26.5 | $ 28 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, plant and equipment, net | Property, plant and equipment, net |
Current operating lease liabilities | $ 9.3 | $ 9.6 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Noncurrent operating lease liabilities | $ 33.1 | $ 33.6 |
Total operating lease liabilities | 42.4 | 43.2 |
Current finance lease liabilities | $ 15.8 | $ 13.9 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt | Current portion of long-term debt |
Noncurrent finance lease liabilities | $ 49.6 | $ 52.1 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt, less current portion | Long-term debt, less current portion |
Total finance lease liabilities | $ 65.4 | $ 66 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from finance leases | $ 0.5 | $ 1.1 |
Operating cash flows from operating leases | 2.5 | 3.1 |
Financing cash flows from finance leases | 4.2 | 4.4 |
Right-of-use assets obtained in exchange for lease obligations: | ||
New operating leases | 1.7 | 1.1 |
New finance leases | $ 3.5 | $ 0.3 |
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 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | |
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 | $ 22,300,000 | $ 25,400,000 | |||
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 | $ 9,300,000 |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest Rate Swap Liability, Current | $ 9.3 | $ 9.3 |
Interest Rate Swap Liability, Noncurrent | 13 | 16.1 |
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 | 9.3 | 9.3 |
Interest Rate Swap Liability, Noncurrent | 13 | 16.1 |
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 Gains (Losses) Recognized in Accumulated Other Comprehensive Income Net of Reclassification into Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Interest Rate Swap | $ 3.1 | $ (11.7) |
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 | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Interest Rate Swap | $ (2.3) | $ (1.4) |
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 | Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | $ 1,926.1 | $ 1,921.8 |
Other installment financing arrangements | 41.7 | 42.1 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | 1,976.6 | 1,973.4 |
Other installment financing arrangements | $ 56 | $ 58.6 | |
[1] | Excludes finance leases, other financing arrangements and note issuance costs. |
Pension and Postretirement Pl_3
Pension and Postretirement Plans - Schedule of Pension and Postretirement Costs (Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 0 | $ 0 |
Other components of pension and postretirement benefit plans expense: | ||
Interest cost on projected benefit obligation | 3.8 | 4.8 |
Expected return on plan assets | (7.5) | (7.3) |
Amortization of: | ||
Prior service benefit | 0 | 0 |
Actuarial loss | 6.3 | 4.5 |
Pension / postretirement costs | 2.6 | 2 |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | 0.1 | 0.1 |
Other components of pension and postretirement benefit plans expense: | ||
Interest cost on projected benefit obligation | 0.6 | 0.9 |
Expected return on plan assets | 0 | 0 |
Amortization of: | ||
Prior service benefit | (0.6) | (0.6) |
Actuarial loss | 0 | 0.2 |
Pension / postretirement costs | $ 0.1 | $ 0.6 |
Pension and Postretirement Pl_4
Pension and Postretirement Plans - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Contributions to pension plans | $ 1.7 | $ 1.5 |
Expected future employer contributions, next fiscal year | 8 | |
Qualified Plan [Member] | Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Contributions to pension plans | 0.7 | 0.8 |
Nonqualified Plan [Member] | Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Contributions to pension plans | 0.7 | $ 0.6 |
Expected future employer contributions, next fiscal year | $ 3 |
Shareowners' Deficit - Schedule
Shareowners' Deficit - Schedule of Changes in Accumulated Other Comprehensive Loss by Component (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||
Beginning balance | $ (159.7) | $ (170.1) | |
Reclassifications, net | 6.2 | 4.3 | |
Unrealized gain (loss) on cash flow hedges arising during the period, net | 0.6 | (10.1) | |
Foreign currency gain (loss) | 1 | (6.9) | |
Ending balance | (151.9) | (182.8) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||
Beginning balance | (138.8) | (152) | |
Reclassifications, net | [1] | 4.4 | 3.2 |
Unrealized gain (loss) on cash flow hedges arising during the period, net | 0 | 0 | |
Foreign currency gain (loss) | 0 | 0 | |
Ending balance | (134.4) | (148.8) | |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||
Beginning balance | (19.7) | (14.7) | |
Reclassifications, net | [2] | 1.8 | 1.1 |
Unrealized gain (loss) on cash flow hedges arising during the period, net | [3] | 0.6 | (10.1) |
Foreign currency gain (loss) | 0 | 0 | |
Ending balance | (17.3) | (23.7) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||
Beginning balance | (1.2) | (3.4) | |
Reclassifications, net | 0 | 0 | |
Unrealized gain (loss) on cash flow hedges arising during the period, net | 0 | 0 | |
Foreign currency gain (loss) | 1 | (6.9) | |
Ending balance | $ (0.2) | $ (10.3) | |
[1] | These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial loss, net of tax. The other components of net periodic pension and postretirement benefit plans expense are recorded in "Other components of pension and postretirement benefit plans expense" on the Condensed Consolidated Statements of Operations. See Note 9 for further disclosures. | ||
[2] | These reclassifications are reported within "Interest expense" on the Condensed Consolidated Statements of Operations when the hedged transactions impact earnings. | ||
[3] | The unrealized gain (loss), net on cash flow hedges represents the change in the fair value of the derivative instruments that occurred during the period, net of tax. The unrealized loss on cash flow hedges is recorded in "Other current liabilities" and "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets. See Note 8 for further disclosures. |
Business Segment Information -
Business Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2021Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segment Information _2
Business Segment Information - Selected Financial Data for the Company's Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 409.9 | $ 380 | |
Operating income (loss) | 32.6 | (20.2) | |
Expenditures for long-lived assets | 60.7 | 50.9 | |
Depreciation and amortization | 71 | 74.2 | |
Assets | 2,603.2 | $ 2,668.6 | |
Operating Segments [Member] | Entertainment and Communications [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 242.8 | 243.8 | |
Operating income (loss) | 31.3 | 12.1 | |
Expenditures for long-lived assets | 55 | 44.4 | |
Depreciation and amortization | 60.8 | 63.9 | |
Assets | 1,797.3 | 1,803.3 | |
Operating Segments [Member] | IT Services and Hardware [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 173.8 | 142.3 | |
Operating income (loss) | 8.6 | 1.7 | |
Expenditures for long-lived assets | 5.7 | 6.5 | |
Depreciation and amortization | 10.1 | 10.3 | |
Assets | 458.2 | 477.2 | |
Intersegment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | (6.7) | (6.1) | |
Intersegment Elimination [Member] | Entertainment and Communications [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 4.8 | 4.9 | |
Intersegment Elimination [Member] | IT Services and Hardware [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | 1.9 | 1.2 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | (7.3) | (34) | |
Depreciation and amortization | 0.1 | 0 | |
Corporate and Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 347.7 | $ 388.1 | |
Sales [Member] | Intersegment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 6.7 | $ 6.1 |