Document and Entity Information
Document and Entity Information Document | 9 Months Ended |
Sep. 30, 2023 shares | |
Cover [Abstract] | |
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 | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Small Business | false |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 0 |
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 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 448.3 | $ 462.1 | $ 1,354.9 | $ 1,337.4 |
Costs and expenses | ||||
Cost of services and products, excluding items below | 252.5 | 258 | 754.8 | 737.7 |
Selling, general and administrative, excluding items below | 107.9 | 102.6 | 315.3 | 288.1 |
Depreciation and amortization | 109.2 | 131.5 | 354.1 | 381.1 |
Loss on impairment of long-lived assets | 0 | 2.7 | 0 | 2.7 |
Restructuring and severance related charges | 0.7 | 0.5 | 2.1 | 1.8 |
Transaction and integration costs | 0 | 3.5 | 0.1 | 10.1 |
Total operating costs and expenses | 470.3 | 498.8 | 1,426.4 | 1,421.5 |
Operating loss | (22) | (36.7) | (71.5) | (84.1) |
Interest expense | 43.3 | 24.3 | 120 | 59.2 |
Other components of pension and postretirement benefit plans expense (benefit) | 0.1 | (0.7) | 0.5 | (5.9) |
Other income, net | (14.6) | (25.7) | (38.6) | (14.3) |
Loss before income taxes | (50.8) | (34.6) | (153.4) | (123.1) |
Income tax benefit | (8.1) | (8) | (30.7) | (28.5) |
Net loss | $ (42.7) | $ (26.6) | $ (122.7) | $ (94.6) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (42.7) | $ (26.6) | $ (122.7) | $ (94.6) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation (loss) gain | (1.8) | (5.9) | 0.6 | (7.2) |
Defined benefit plans: | ||||
Net loss arising from remeasurement during the period, net of tax of ($0.3), ($0.7) | 0 | (0.8) | 0 | (2.1) |
Amortization of prior service benefits included in net income, net of tax of ($0.1), ($0.2) | (0.1) | 0 | (0.4) | 0 |
Amortization of net actuarial gain included in net income, net of tax of ($0.2), ($0.8) | (1.1) | 0 | (2.9) | 0 |
Total other comprehensive loss | (3) | (6.7) | (2.7) | (9.3) |
Total comprehensive loss | $ (45.7) | $ (33.3) | $ (125.4) | $ (103.9) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss arising from remeasurement during the period, net of tax | $ (0.3) | $ (0.7) | ||
Amortization of prior service benefits included in net income, net of tax | $ (0.1) | $ (0.2) | ||
Amortization of net actuarial gain included in net income, net of tax | $ (0.2) | $ (0.8) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity (Deficit) - USD ($) $ in Millions | Total | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance, Shareowners' Equity (Deficit) at Dec. 31, 2021 | $ 1,690.1 | $ 1,716.1 | $ (27.2) | $ 1.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (94.6) | (94.6) | ||
Other comprehensive loss | (9.3) | (9.3) | ||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2022 | 1,586.2 | 1,716.1 | (121.8) | (8.1) |
Beginning Balance, Shareowners' Equity (Deficit) at Jun. 30, 2022 | 1,619.5 | 1,716.1 | (95.2) | (1.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (26.6) | (26.6) | ||
Other comprehensive loss | (6.7) | (6.7) | ||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2022 | 1,586.2 | 1,716.1 | (121.8) | (8.1) |
Beginning Balance, Shareowners' Equity (Deficit) at Dec. 31, 2022 | 1,577.5 | 1,716.1 | (158.1) | 19.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (122.7) | (122.7) | ||
Other comprehensive loss | (2.7) | (2.7) | ||
Capital contributions by Red Fiber Parent LLC | 400 | 400 | ||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2023 | 1,852.1 | 2,116.1 | (280.8) | 16.8 |
Beginning Balance, Shareowners' Equity (Deficit) at Jun. 30, 2023 | 1,497.8 | 1,716.1 | (238.1) | 19.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net loss | (42.7) | (42.7) | ||
Other comprehensive loss | (3) | (3) | ||
Capital contributions by Red Fiber Parent LLC | 400 | 400 | ||
Ending Balance, Shareowners' Equity (Deficit) at Sep. 30, 2023 | $ 1,852.1 | $ 2,116.1 | $ (280.8) | $ 16.8 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 7.7 | $ 9.4 |
Receivables, less allowances of $17.1 and $12.0 | 378.6 | 447.8 |
Inventory, materials and supplies | 122.1 | 103.4 |
Prepaid expenses | 53.1 | 45.7 |
Other current assets | 44.1 | 25.7 |
Total current assets | 605.6 | 632 |
Property, plant and equipment, net | 2,344.5 | 2,116.8 |
Operating lease right-of-use assets | 75.2 | 73.1 |
Goodwill | 720.4 | 723.5 |
Intangible assets, net | 743.6 | 829.1 |
Deferred income tax assets | 1.8 | 2.2 |
Other noncurrent assets | 76.2 | 58.9 |
Total assets | 4,567.3 | 4,435.6 |
Current liabilities | ||
Current portion of long-term debt | 25.7 | 45 |
Accounts payable | 377.6 | 492.5 |
Unearned revenue and customer deposits | 66.1 | 81.6 |
Accrued taxes | 14.6 | 14.5 |
Accrued interest | 4.7 | 2 |
Accrued payroll and benefits | 35.7 | 52.5 |
Other current liabilities | 48.6 | 47.8 |
Total current liabilities | 573 | 735.9 |
Long-term debt, less current portion | 1,716.6 | 1,656 |
Operating lease liabilities | 68.9 | 66.1 |
Pension and postretirement benefit obligations | 137.3 | 138.9 |
Pole license agreement obligation | 41.6 | 43.6 |
Deferred income tax liability | 54.5 | 98.2 |
Other noncurrent liabilities | 123.3 | 119.4 |
Total liabilities | 2,715.2 | 2,858.1 |
Shareowners’ equity | ||
Additional paid-in capital | 2,116.1 | 1,716.1 |
Accumulated deficit | (280.8) | (158.1) |
Accumulated other comprehensive income | 16.8 | 19.5 |
Total shareowners' equity | 1,852.1 | 1,577.5 |
Total liabilities and shareowners’ equity | $ 4,567.3 | $ 4,435.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for receivables | $ 17.1 | $ 12 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (122.7) | $ (94.6) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 354.1 | 381.1 |
Loss on impairment of long-lived assets | 0 | 2.7 |
Provision for loss on receivables | 7 | 5.8 |
Unrealized gain on interest rate swaps | (21.7) | (14.8) |
Noncash portion of interest expense | 5.4 | 4 |
Deferred income taxes | (35) | (33.5) |
Pension and other postretirement payments in excess of expense | (5.8) | (12.3) |
Other, net | (1.9) | (1.4) |
Changes in operating assets and liabilities: | ||
Decrease in receivables | 62.3 | 48.6 |
Increase in inventory, materials, supplies, prepaid expenses and other current assets | (34) | (24) |
(Decrease) increase in accounts payable | (112.7) | 10 |
Decrease in accrued and other current liabilities | (30.6) | (23.9) |
Decrease (increase) in other noncurrent assets | 2.2 | (9.1) |
Decrease in other noncurrent liabilities | (7.4) | (3.6) |
Net cash provided by operating activities | 59.2 | 235 |
Cash flows from investing activities | ||
Capital expenditures | (482) | (341.6) |
Acquisition of businesses, net of cash acquired | (3.2) | (65.5) |
Acquisition of fiber assets | (8.6) | 0 |
Other, net | (0.1) | 2.4 |
Net cash used in investing activities | (493.9) | (404.7) |
Cash flows from financing activities | ||
Capital contributions by Red Fiber Parent LLC | 400 | 0 |
Proceeds from issuance of long-term debt | 206 | 0 |
Net (decrease) increase in corporate credit facility with initial maturities less than 90 days | (187) | 164 |
Proceeds from borrowings on receivables facilities | 1,420.2 | 886.3 |
Payments on receivables facilities | (1,361.3) | (860.2) |
Repayment of debt | (41.7) | (15.5) |
Payment of debt issuance costs | (3.8) | (0.7) |
Net cash provided by financing activities | 432.4 | 173.9 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | (0.1) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (2.3) | 4.1 |
Cash, cash equivalents and restricted cash at beginning of period | 12.9 | 6.1 |
Cash, cash equivalents and restricted cash at end of period | 10.6 | 10.2 |
Noncash investing and financing transactions: | ||
Acquisition of property by assuming debt and other noncurrent liabilities | 3.7 | 8.1 |
Acquisition of property on account | $ 76.6 | $ 78.2 |
Description of Business and Acc
Description of Business and Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Accounting Policies | 1. Description of Business and Accounting Policies Description of Business — Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provides diversified telecommunications and technology services. The Company generates a large portion of its revenue by serving customers in Cincinnati, Ohio, Dayton, Ohio and the islands of Hawaii. An economic downturn or natural disaster occurring in these, or a portion of these, limited operating territories could have a disproportionate effect on our business, financial condition, results of operations and cash flows compared to similar companies of a national scope and similar companies operating in different geographic areas. The Company had receivables with one customer, Verizon Communications Inc. (“Verizon”), which made up 13 % and 21 % of the outstanding accounts receivable balance at September 30, 2023 and December 31, 2022, respectively. Revenue derived from foreign operations was approximately 7 % of consolidated revenue for the three and nine months ended September 30, 2023 and 2022. In August 2023, Red Fiber Parent LLC ("Parent") committed to make capital contributions of $ 600.0 million to the Company, of which $ 400.0 million was received by the Company in the third quarter of 2023 and recorded to "Additional paid-in capital" on the Condensed Consolidated Balance Sheets and $ 200.0 million will be received in the fourth quarter of 2024 . The capital contribution received in the third quarter of 2023 was used to repay borrowings on the Company's Revolving Credit Facility due 2026, fund capital expenditures, and fund working capital. Basis of Presentation — The Condensed Consolidated Financial Statements of the Company have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, include all adjustments necessary for a fair statement 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 Company’s Condensed Consolidated Balance Sheet as of December 31, 2022 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 2022 Annual Report on Form 10-K. Business Combinations — In accounting for business combinations, we apply the accounting requirements of Accounting Standards Codification 805 (“ASC 805”), “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing fair value estimates for acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition, and transaction costs are expensed as incurred. The Company reports in its Condensed Consolidated Financial Statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period. See Note 2 for disclosures related to mergers and acquisitions. Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. 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, 2022. Variable Interest Entity — The Company holds an interest in a limited liability company, Digital Access Ohio LLC (“DAO”), that is considered a variable interest entity ("VIE") in accordance with the guidance of ASC 810 “Consolidation.” As of September 30, 2023, operations of DAO are nominal in nature. DAO is considered a VIE as it has insufficient equity capital to finance its activities without additional financial support. The Company is the primary beneficiary of DAO as it has the power over the activities that most significantly impact the economic performance of DAO and has the obligation to absorb expected losses and the right to receive expected benefits that could be significant to DAO. As a result, the Company consolidated DAO, and all significant intercompany accounts have been eliminated. Funding of DAO is provided in the form of cash contributions, debt issuance and grants that include a free standing warrant that allows the holder of the warrant at its option to convert the warrant into a class A-2 share of DAO at any time during the period commencing on the 2 nd anniversary of the funding agreement and ending on the 10th anniversary of the funding agreement date. The Company has recorded the fair value associated with the warrant to "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets. The Company will continue to assess whether it has a controlling financial interest and whether it is the primary beneficiary at each reportin g period. 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 as of September 30, 2023 and December 31, 2022 consists of funds held in an escrow account related to a cost method investment and funds held by DAO. 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) September 30, 2023 December 31, 2022 Cash and cash equivalents $ 7.7 $ 9.4 Restricted cash included in Other noncurrent assets 2.9 3.5 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 10.6 $ 12.9 Goodwill — Goodwill represents the excess of the purchase price consideration over the fair value of net assets acquired and recorded in connection with business acquisitions. Goodwill is allocated at the business segment level. Goodwill is tested for impairment on an annual basis or when events or changes in circumstances indicate that such assets may be impaired. If the net book value of the reporting unit exceeds its fair value, an impairment loss is recognized. An impairment loss is measured as the excess of the carrying value of goodwill of a reporting unit over its fair value. Indefinite-Lived Intangible Assets — Intangible assets represent purchased assets that lack physical substance but can be separately distinguished from goodwill because of contractual or legal rights, or because the asset is capable of being separately sold or exchanged. Federal Communications Commission ("FCC") licenses for wireless spectrum and other perpetual licenses represent indefinite-lived intangible assets. The Company may renew the wireless licenses in a routine manner every ten years for a nominal fee, provided the Company continues to meet the service and geographic coverage provisions required by the FCC. Intangible assets not subject to amortization are tested for impairment annually, or when events or changes in circumstances indicate that the asset might be impaired. Long-Lived Assets — Management reviews the carrying value of property, plant and equipment and other long-lived assets, including intangible assets with definite lives, when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the estimated future undiscounted cash flows expected to result from the use of an asset (or group of assets) and its eventual disposition is less than its carrying amount. An impairment loss is measured as the amount by which the asset’s carrying value exceeds its estimated fair value. Long-lived intangible assets are amortized based on the estimated economic value generated by the asset in future years. Accounting for Impacts of Involuntary Events and Contingencies — Assets destroyed or damaged as a result of involuntary events are written off or reduced in carrying value to their salvage value. When recovery of all or a portion of the amount of property damage loss or other covered expenses through insurance proceeds is demonstrated to be probable, a receivable is recorded and offsets the loss or expense up to the amount of the total loss or expense. Proceeds ultimately received from insurance claims for business interruption, direct expenditures and amounts for capital assets in excess of net book value will be recorded to results of operations when collected. No gain is recorded until all contingencies related to the insurance claim have been resolved. In August 2023, wildfires ignited on Maui and Hawaii islands and spread rapidly due to extreme wind conditions caused in part by Hurricane Dora which traveled 800 miles offshore west of Maui. The fires caused widespread damage to Lahaina town on the island of Maui and the surrounding area, including physical loss and damage to certain of the Company’s fiber and copper assets and Company owned equipment located on customer premises. The Company experienced the loss of business income immediately following the fires and is expected to continue to experience loss of business income for an unknown amount of time. The Company expects to file insurance claims for the physical loss and damages experienced in Lahaina and for business income losses resulting from the matter. As of September 30, 2023, no receivable associated with insurance proceeds has been recorded. Expenditures in the quarter ended September 30, 2023 as a result of the fire have been primarily capital in nature. Additionally, due to the age of certain of the impacted assets, the net book value that was disposed in the quarter due to fire damage was nominal in nature. In October 2023, attorneys filed a Second Amended Complaint in a proposed class action lawsuit filed in Hawaii state court, adding the Company along with other telecommunications companies and private and public landowners. Legal expenses related to this matter are not material in the third quarter of 2023, but it is possible the Company may incur significant expenses in legal fees, damages awards, or settlements in future periods. Income and Operating Taxes Income taxes — In accordance with 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. Based on the estimated annual effective tax rate, the Company’s tax benefit was lower than the period’s loss at the statutory rate, due primarily to federal and state valuation allowances recorded against deferred tax assets, offset in part by state income tax benefit. Discrete tax items in the reporting period, most notably a $ 2.6 million benefit for research and development tax credits, largely offset the estimated annual effective tax rate adjustments. With the current year loss, net operating losses exceed deferred tax liabilities available for offset. Therefore, a $ 9.6 million partial federal and state valuation allowance has been recorded year-to-date on net operating losses that are primarily non-expiring. 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 income.” 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 income" 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. All cash flows associated with the Company’s derivative instruments are classified as operating activities in the Condensed Consolidated Statements of Cash Flows. Recently Issued Accounting Standards 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. |
Mergers and Acquisitions
Mergers and Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | 2. Mergers and Acquisitions Acquisition of Bridgewired Fiber Assets In the third quarter of 2023, the Company acquired fiber network assets from Bridgewired, LLC ("Bridgewired") for an aggregate purchase price of $ 6.7 million, consisting of $ 5.9 million in cash and $ 0.8 million in contingent consideration. The Company accounted for the Bridgewired fiber asset acquisition as an asset acquisition under ASC 805-10-55 “Business Combinations” because the assets acquired do not include an assembled workforce, and the gross value of the assets 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 fiber network assets will help to support and expand the Company's existing network. The assets are recorded as network equipment in “Property, plant and equipment, net” on the Condensed Consolidated Balance Sheets. Acquisition of Ohio Transparent Telecom Inc. On April 17, 2023 ("OTT Acquisition Date"), the Company acquired 100 % of Ohio Transparent Telecom Inc. ("OTT"), a private company that provides network security, data connectivity, and unified communications solutions to commercial and enterprise customers across multiple sectors throughout Ohio and Michigan for a n aggregate purchase price of $ 3.3 million, consisting of $ 3.2 million in cash and $ 0.1 million in contingent consideration. The services and solutions provided by OTT will complement the services offered by Agile (defined below), which the Company acquired in the second quarter of 2022. The valuation of the assets acquired and liabilities assumed is based on estimated fair values at the OTT Acquisition Date and recorded to the Network segment. The Company considers the allocation and fair value estimates of property, plant and equipment, goodwill, other assets and other liabilities to be preliminary in nature as of September 30, 2023. The Company expects to continue to obtain information to assist in determining the fair value of the net assets acquired as of the OTT Acquisition Date while the measurement period remains open. Measurement period adjustments related to the acquisition of OTT will be applied retrospectively to the OTT Acquisition Date. In connection with this acquisition, the Company recorded goodw ill of $ 1.1 million attributable to an acquired workforce with industry expertise in addition to other expected synergies with Agile. The Company is continuing to evaluate the amount of goodwill that is expected to be deductible for income tax purposes. Acquisition of Lawrenceburg Fiber Assets In the first quarter of 2023, the Company acquired fiber network assets from the City of Lawrenceburg for an aggregate purchase price of $ 3.0 million consisting of $ 2.7 million in cash and $ 0.3 million in contingent consideration. The Company accounted for the Lawrenceburg fiber asset acquisition as an asset acquisition under ASC 805-10-55 “Business Combinations” because the assets acquired do not include an assembled workforce, and the gross value of the assets 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 fiber network assets will help to support and expand the Company's existing network. The assets are recorded as network equipment in “Property, plant and equipment, net” on the Condensed Consolidated Balance Sheets. Acquisition of Agile IWG Holdings, LLC On May 2, 2022 (“Agile Acquisition Date”), the Company acquired Agile IWG Holdings, LLC ("Agile"), based in Canton, Ohio for total cash consideration of $ 65.5 million. Agile delivers customers, primarily located in Ohio and Pennsylvania, with middle mile, last mile and campus connectivity services through hybrid fiber wireless networks that are designed, built and managed by Agile. The purchase price was funded through borrowings under the Company's former Receivables Facility and the Revolving Credit Facility (see Note 5). The valuation of the assets acquired and liabilities assumed was based on estimated fair values at the Agile Acquisition Date. The allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed reflects various fair value estimates and analyses, including work performed by third-party valuation specialists. The determination of the final purchase price allocation to specific assets acquired and liabilities assumed is complete. No expenses related to the Agile acquisition were recorded in the three months ended September 30, 2023, and nominal expenses related to the Agile acquisition were recorded in the nine months ended September 30, 2023. The Company incurred acquisition expenses related to the Agile acquisition of $ 0.3 million and $ 1.9 million in the three and nine months ended September 30, 2022, respectively. These expenses are recorded in "Transaction and integration costs" on the Condensed Consolidated Statements of Operations. Based on fair value estimates, the purchase price has been allocated to individual assets acquired and liabilities assumed as follows: (dollars in millions) Agile Assets acquired Receivables and other current assets $ 1.8 Property, plant and equipment 10.2 Operating lease right-of-use assets 27.8 Intangible assets 19.4 Goodwill 35.0 Total assets acquired 94.2 Liabilities assumed Accrued expenses and other current liabilities 2.5 Operating lease liabilities 25.7 Other noncurrent liabilities 0.5 Total liabilities assumed 28.7 Net assets acquired $ 65.5 In connection with this acquisition, the Company recorded goodwill attributable to a diversified customer base and acquired workforce with industry expertise. The amount of goodwill related to this acquisition is deductible for income tax purposes. In the second quarter of 2023, the Company recorded a measurement period adjustment to reflect the tax impact on the fair value of property, plant and equipment and intangible assets acquired which resulted in a decrease to "Deferred income tax liability" and to "Goodwill" of $ 4.4 million. Measurement period adjustments related to the acquisition of Agile were applied retrospectively to the Agile Acquisition Date. Based on fair value estimates, the identifiable intangible assets acquired are as follows: (dollars in millions) Fair Value Useful Lives Customer relationships $ 16.0 15 years Trade names 2.3 10 years Technology 1.1 7 years Total identifiable intangible assets $ 19.4 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. Revenue The Network segment provides products and services to both residential and commercial customers that can be categorized as Fioptics, Enterprise Fiber or Legacy. The products and services within these three categories can be further categorized as either Data, Voice, Video or Other. Fioptics and Legacy revenue include both 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. Subsequent to the Company’s acquisitions of Agile and OTT, services provided by Agile and OTT are also included in Enterprise Fiber. 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 an initial 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 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 estimated projection of sales volume. 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 September 30, 2023, 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 $ 194.6 million. 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 customer contracts is as follows: (dollars in millions) Three months ended December 31, 2023 $ 5.5 2024 21.4 2025 21.1 2026 21.3 2027 21.6 Thereafter 103.7 Network The Company has identified four distinct performance obligations in the Network segment, namely Data, Voice, Video and Other. For each of the Data, Voice and Video services, service is delivered to the customer continuously and in a substantially similar manner for each period of the agreement, the customer takes full control over the services as the service is delivered, and as such, Data, Voice and Video are identified to be a series of distinct services. Services provided by the Network segment can be categorized into three main categories that include Fioptics, 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 and business 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, subsidized fiber build 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 Network segment. For Data, Video and Voice products in Fioptics, 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 discount from standard price list if it is determined to be representative of stand-alone selling price. For hardware sales, revenue is recognized net of the cost of product and is recognized when the hardware is either shipped or delivered in accordance with the terms of the contract. 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 Network 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 Cloud and Communications services in the IT Services and Hardware segment that require us to incur installation and provisioning expenses. The asset recognized for Cloud and 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 Cloud and Communications 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. The following table presents the activity for the Company’s contract assets: Fulfillment Costs Cost of Acquisition Total Contract Assets (dollars in millions) Network IT Services Total Network IT Services Total Network IT Services Total Balance as of December 31, 2022 $ 2.5 $ 2.7 $ 5.2 $ 12.0 $ 1.0 $ 13.0 $ 14.5 $ 3.7 $ 18.2 Additions 0.5 0.5 1.0 3.0 0.2 3.2 3.5 0.7 4.2 Amortization ( 0.2 ) ( 0.2 ) ( 0.4 ) ( 1.2 ) ( 0.2 ) ( 1.4 ) ( 1.4 ) ( 0.4 ) ( 1.8 ) Balance as of March 31, 2023 2.8 3.0 5.8 13.8 1.0 14.8 16.6 4.0 20.6 Additions 0.5 0.6 1.1 2.8 0.2 3.0 3.3 0.8 4.1 Amortization ( 0.2 ) ( 0.3 ) ( 0.5 ) ( 1.3 ) ( 0.2 ) ( 1.5 ) ( 1.5 ) ( 0.5 ) ( 2.0 ) Balance as of June 30, 2023 3.1 3.3 6.4 15.3 1.0 16.3 18.4 4.3 22.7 Additions 0.6 0.4 1.0 3.0 0.2 3.2 3.6 0.6 4.2 Amortization ( 0.2 ) ( 0.4 ) ( 0.6 ) ( 1.4 ) ( 0.2 ) ( 1.6 ) ( 1.6 ) ( 0.6 ) ( 2.2 ) Balance as of September 30, 2023 $ 3.5 $ 3.3 $ 6.8 $ 16.9 $ 1.0 $ 17.9 $ 20.4 $ 4.3 $ 24.7 The Company recognizes a liability for cash received up-front for IRU contracts. At September 30, 2023 and December 31, 2022, $ 3.9 million and $ 3.2 million, respectively, of contract liabilities were included in "Other current liabilities." At September 30, 2023 and December 31, 2022, $ 71.5 million and $ 74.2 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 September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Data $ 139.7 $ 132.8 $ 414.1 $ 388.4 Video 47.8 47.8 144.7 144.8 Voice 53.3 58.2 165.2 175.2 Other 9.4 12.3 26.9 33.2 Total Network 250.2 251.1 750.9 741.6 Consulting 85.1 86.9 258.8 253.8 Cloud 30.6 25.1 86.3 74.8 Communications 56.2 56.1 166.4 165.3 Infrastructure Solutions 32.5 49.7 110.8 121.7 Total IT Services and Hardware 204.4 217.8 622.3 615.6 Intersegment Revenue ( 6.3 ) ( 6.8 ) ( 18.3 ) ( 19.8 ) Total Revenue $ 448.3 $ 462.1 $ 1,354.9 $ 1,337.4 The following table presents revenues disaggregated by contract type: Three Months Ended September 30, (dollars in millions) Network IT Services and Hardware Intersegment revenue Total 2023 2022 2023 2022 2023 2022 2023 2022 Products and Services transferred at a point in time $ 7.4 $ 6.9 $ 39.7 $ 44.8 $ — $ — $ 47.1 $ 51.7 Products and Services transferred over time 238.8 239.4 162.4 171.0 — — 401.2 410.4 Intersegment revenue 4.0 4.8 2.3 2.0 ( 6.3 ) ( 6.8 ) — — Total revenue $ 250.2 $ 251.1 $ 204.4 $ 217.8 $ ( 6.3 ) $ ( 6.8 ) $ 448.3 $ 462.1 Nine Months Ended September 30, (dollars in millions) Network IT Services and Hardware Intersegment revenue Total 2023 2022 2023 2022 2023 2022 2023 2022 Products and Services transferred at a point in time $ 19.5 $ 20.4 $ 125.1 $ 121.4 $ — $ — $ 144.6 $ 141.8 Products and Services transferred over time 719.1 706.7 491.2 488.9 — — 1,210.3 1,195.6 Intersegment revenue 12.3 14.5 6.0 5.3 ( 18.3 ) ( 19.8 ) — — Total revenue $ 750.9 $ 741.6 $ 622.3 $ 615.6 $ ( 18.3 ) $ ( 19.8 ) $ 1,354.9 $ 1,337.4 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 4. Goodwill and Intangible Assets Goodwill The changes in the Company's goodwill consisted of the following: (dollars in millions) IT Services and Network Total Company Goodwill, balance as of December 31, 2022 $ 177.6 $ 545.9 $ 723.5 Activity during the year: Adjustments to prior year acquisition of Agile — ( 4.4 ) ( 4.4 ) Acquisition of OTT — 1.1 1.1 Currency translations 0.2 — 0.2 Goodwill, balance as of September 30, 2023 $ 177.8 $ 542.6 $ 720.4 See Note 2 for further information related to the acquisitions of Agile and OTT. No impairment losses were recognized in goodwill for the three and nine months ended September 30, 2023 and 2022. Intangible Assets The Company’s intangible assets consisted of the following: September 30, 2023 December 31, 2022 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets subject to amortization Customer relationships $ 862.4 $ ( 214.4 ) $ 648.0 $ 862.1 $ ( 140.7 ) $ 721.4 Trade names 109.6 ( 32.3 ) 77.3 109.5 ( 20.5 ) 89.0 Technology 6.1 ( 1.7 ) 4.4 6.0 ( 1.0 ) 5.0 Total 978.1 ( 248.4 ) 729.7 977.6 ( 162.2 ) 815.4 Intangible assets not subject to amortization FCC licenses and spectrum usage rights 7.1 — 7.1 6.9 — 6.9 Perpetual licenses 6.8 — 6.8 6.8 — 6.8 Total intangible assets $ 992.0 $ ( 248.4 ) $ 743.6 $ 991.3 $ ( 162.2 ) $ 829.1 As a result of the acquisition of OTT, the Company recorded a nominal finite-lived intangible asset representing the preliminary fair value at the OTT Acquisition Date. See Note 2 for additional information regarding the acquisition of OTT. The change in gross carrying amounts for finite-lived intangible assets is also due to foreign currency translation on finite-lived intangible assets denominated in foreign currency. The finite-lived intangible assets are amortized over their useful lives based on a number of assumptions, including the estimated period of economic benefit and utilization. Amortization expense for finite-lived intangible assets was $ 28.7 million and $ 86.1 million for the three and nine months ended September 30, 2023, respectively. Amortization expense for finite-lived intangible assets was $ 31.2 million and $ 91.2 million for the three and nine months ended September 30, 2022, respectively. In addition to amortization expense, the changes in definite-lived intangible assets from December 31, 2022 to September 30, 2023 are due to foreign currency translation. No impairment losses were recognized on intangible assets for the three and nine months ended September 30, 2023 and 2022. The estimated useful lives for each finite-lived intangible asset class are as follows: Customer relationships 15 years Trade names 3 to 10 years Technology 7 years The annual estimated amortization expense for future years is as follows: (dollars in millions) Three months ended December 31, 2023 $ 28.7 2024 105.4 2025 93.7 2026 86.5 2027 79.3 Thereafter 336.1 Total $ 729.7 |
Debt and Other Financing Arrang
Debt and Other Financing Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Other Financing Arrangements | 5. Debt and Other Financing Arrangements The Company’s debt consists of the following: (dollars in millions) September 30, 2023 December 31, 2022 Current portion of long-term debt: Credit Agreement - Term B-1 Loans $ 5.0 $ 5.0 Credit Agreement - Term B-2 Loans 6.5 6.5 Credit Agreement - Term B-3 Loans 2.0 — 7 1/4 % Notes due 2023 (1) — 22.8 Paniolo Fiber Assets Financing Arrangement 0.4 0.5 Other financing arrangements 0.2 0.3 Finance lease liabilities 11.6 9.9 Current portion of long-term debt 25.7 45.0 Long-term debt, less current portion: Receivables Facility — 186.9 Network Receivables Facility 33.9 — CBTS Receivables Facility 211.9 — Credit Agreement - Revolving Credit Facility 36.0 223.0 Credit Agreement - Term B-1 Loans 486.3 490.0 Credit Agreement - Term B-2 Loans 632.1 637.0 Credit Agreement - Term B-3 Loans 197.5 — Various Cincinnati Bell Telephone notes (1) 95.4 96.4 Paniolo Fiber Assets Financing Arrangement 21.6 21.8 Digital Access Ohio Advance 3.7 0.9 Other financing arrangements 0.6 — Finance lease liabilities 39.5 43.1 1,758.5 1,699.1 Net unamortized discount ( 5.7 ) ( 4.3 ) Unamortized note issuance costs ( 36.2 ) ( 38.8 ) Long-term debt, less current portion 1,716.6 1,656.0 Total debt $ 1,742.3 $ 1,701.0 (1) As of September 30, 2023, the net carrying amount of the Various Cincinnati Bell Telephone notes included an unamortized fair value adjustment recorded on the Company's merger date, September 7, 2021, of $ 7.5 million. As of December 31, 2022, the net carrying amounts of the 7 ¼ % Notes due 2023 and Various Cincinnati Bell Telephone notes included unamortized fair value adjustments recorded on the Company's merger date, September 7, 2021, of $ 0.5 million and $ 8.5 million, respectively. Each adjustment is amortized over the life of the respective notes and is recorded as a reduction of interest expense. Credit Agreement The Company had $ 36.0 million of outstanding borrowings on the Credit Agreement’s revolving credit facility, leaving $ 364.0 million available for borrowings as of September 30, 2023. The revolving credit facility matures in September 2026 , and the Term B-1 Loans and Term B-2 loans under the Credit Agreement mature in November 2028 . In May 2023, the Company entered into an Incremental Amendment to the Credit Agreement (the "Incremental Amendment”) to provide for the incurrence of a new tranche of $ 200.0 million senior secured term loans (the “Term B-3 Loans”). The Term B-3 Loans will mature in November 2028 and will bear interest at a floating rate plus a margin equal to (x) 3.00 % for Term B-3 Loans bearing interest based on the Base Rate (as defined in the Credit Agreement) and (y) 4.00 % for Term B-3 Loans bearing interest based on Term SOFR. All other material terms, conditions and covenants of the Credit Agreement were unchanged by the Incremental Amendment. One of the syndicated lenders of the Term B-1 Loans and Term B-3 Loans in the Credit Agreement is a cooperative bank owned by its customers. Annually, this bank distributes patronage in the form of cash and stock in the cooperative based on the Company’s average outstanding loan balance. The Company will recognize the patronage, generally as declared, in “Other (income) expense, net.” The stock component will be recognized at its stated cost basis. Accounts Receivable Securitization Facility On January 31, 2023, the Company, together with certain of its U.S. and Canadian subsidiaries, made certain amendments (the “Amendments”) to the Company’s accounts receivable securitization facility ("Receivables Facility"). The Amendments amend the Receivables Facility to, among other things: (i) increase the total maximum borrowing capacity to $ 280.0 million, (ii) separate the Receivables Facility into two separate facilities, with (A) the existing Receivables Facility (the “Network Receivables Facility”), as amended by the Amendments, covering receivables originated by certain U.S. subsidiaries of the Company including Cincinnati Bell Telephone Company LLC, Hawaiian Telcom Communications, Inc. and certain of their respective subsidiaries having a maximum borrowing capacity of $ 55.0 million and (B) a new facility (the “CBTS Receivables Facility”) covering receivables originated by certain U.S. and Canadian subsidiaries in the Company's IT Services and Hardware segment including CBTS Technology Solutions LLC and OnX Enterprise Solutions Ltd. having a maximum borrowing capacity of $ 225.0 million, (iii) move the receivables monetization arrangements from the Network Receivables Facility to the CBTS Receivables Facility, and (iv) make applicable technical and conforming changes thereto. In addition, the Amendments extend the renewal dates of each facility to January 2025 and the termination dates of each facility to January 2026 . As of September 30, 2023, the Company had $ 33.9 million in borrowings and $ 16.2 million of letters of credit outstanding under the Network Receivables Facility, leaving $ 1.4 million remaining availability on the total borrowing capacity of $ 51.5 million. As of September 30, 2023, the Company had $ 211.9 million in borrowings and $ 0.5 million of letters of credit outstanding under the CBTS Receivables Facility, leaving $ 9.4 million remaining availability on the total borrowing capacity of $ 221.8 million. The maximum borrowing limit for loans and letters of credit under the Network Receivables Facility and the CBTS Receivables Facility is $ 55.0 million and $ 225.0 million, respectively, in the aggregate. The available borrowing capacity on each facility is calculated monthly based on the quantity and quality of outstanding accounts receivable, and thus may be lower than the maximum borrowing limit. Under the Network Receivables Facility and the CBTS 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”), Cincinnati Bell Funding Canada Ltd. ("CBFC"), or CBTS Funding LLC (“CBTSF”), wholly-owned consolidated subsidiaries of the Company. Although CBF, CBFC and CBTSF are wholly-owned consolidated subsidiaries of the Company, CBF, CBFC and CBTSF 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, CBFC or CBTSF, such accounts receivable are legally assets of CBF, CBFC and CBTSF and, as such, are not available to creditors of other subsidiaries or the parent company. As a result of the Amendments, the CBTS Receivables Facility includes an option for CBTSF to sell, rather than borrow against, certain receivables on a non-recourse basis. As of September 30, 2023, the outstanding balance of certain accounts receivable sold, rather than borrowed against, was $ 13.3 million. Paniolo Fiber Assets Financing Arrangement In the third quarter of 2023, the Company executed an amendment to the Paniolo fiber assets financing arrangement to replace LIBOR, the benchmark rate of interest, with Adjusted Term SOFR which is defined in the amendment as Term SOFR plus 0.1 %. As a result of the amendment, borrowings under the Paniolo fiber assets financing arrangement bear interest at a rate per annum equal to Adjusted Term SOFR plus 3.0 %. All other material terms and conditions of the Paniolo fiber assets financing arrangement were unchanged by the amendment. Repayment of Notes In the second quarter of 2023, the Company repaid the remaining $ 22.3 million outstanding principal amount of its 7 1 / 4 % Notes due 2023 and related accrued and unpaid interest due upon the maturity date of the notes. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | 6. Leases Lessee Disclosures The Company primarily leases real estate for offices, retail stores and central offices, as well as equipment, cell towers, designated space on third party towers and fleet vehicles. Upon adoption of ASC 842, the Company elected not to recognize leases with terms of one-year or less on the balance sheet. Supplemental balance sheet information related to the Company's leases is as follows: (dollars in millions) Balance Sheet Location September 30, 2023 December 31, 2022 Operating lease assets, net of amortization Operating lease right-of-use assets $ 75.2 $ 73.1 Finance lease assets, net of amortization Property, plant and equipment, net 16.9 16.5 Operating lease liabilities: Current operating lease liabilities Other current liabilities 11.8 12.7 Noncurrent operating lease liabilities Operating lease liabilities 68.9 66.1 Total operating lease liabilities 80.7 78.8 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 11.6 9.9 Noncurrent finance lease liabilities Long-term debt, less current portion 39.5 43.1 Total finance lease liabilities $ 51.1 $ 53.0 . Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, (dollars in millions) 2023 2022 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 3.0 $ 2.5 Operating cash flows from operating leases $ 10.2 $ 9.0 Financing cash flows from finance leases $ 9.9 $ 6.4 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ 11.8 $ 11.6 New finance leases $ 7.9 $ 8.1 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | 7. 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. Cash Flow Hedging Cash Flow Hedges Not Designated as Hedging Instruments The Company uses non-designated cash flow hedges including interest rate swap agreements and interest rate cap 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. Interest rate caps provide that the counterparty will pay the purchaser at the end of each contractual period in which the index interest rate exceeds the contractually agreed upon cap rate. In the first quarter of 2023, the Company entered into three forward starting non-amortizing interest rate swaps to convert variable rate debt to fixed rate debt. The interest rate swaps have notional amounts of $ 150.0 million, $ 150.0 million and $ 100.0 million resulting in interest payments based on an average fixed rate per swap of 3.6875 %, 3.6500 % and 3.5095 %, respectively. The interest rate swaps expire in March 2027 . In the second quarter of 2022, the Company entered into three forward starting non-amortizing interest rate swaps to convert variable rate debt to fixed rate debt. The interest rate swaps have notional amounts of $ 175.0 million, $ 115.0 million and $ 85.0 million resulting in interest payments based on an average fixed rate per swap of 2.9185 %, 2.8520 % and 2.8605 %, respectively. The interest rate swaps expire in May 2026 . In the second quarter of 2022, the Company entered into two interest rate cap agreements to limit exposure to interest rate risk on variable rate debt. The interest rate caps each have a cap rate of 3.0 % with notional amounts of $ 200.0 million and $ 175.0 million and deferred premiums of $ 6.7 million and $ 5.3 million, respectively. The deferred premiums will be paid on a monthly basis over the term of the respective interest rate cap. The interest rate caps expire in May 2026 . The fair value of the Company's interest rate swaps and interest rate caps 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. The Company does not apply hedge accounting to the interest rate swaps and interest rate caps and records all mark-to-market adjustments directly to “Other income, net” in the Condensed Consolidated Statements of Operations. The fair values of the interest rate swaps and interest rate caps 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 September 30, 2023, the fair values of the interest rate swaps and interest rate caps are recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location September 30, 2023 Quoted Prices in Significant Significant Assets: Interest Rate Swap Other current assets $ 16.0 $ — $ 16.0 $ — Interest Rate Swap Other noncurrent assets $ 11.4 $ — $ 11.4 $ — Interest Rate Cap Other current assets $ 5.7 $ — $ 5.7 $ — Interest Rate Cap Other noncurrent assets $ 2.3 $ — $ 2.3 $ — As of December 31, 2022, the fair values of the interest rate swaps and interest rate caps are recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location December 31, 2022 Quoted Prices in Significant Significant Assets: Interest Rate Swap Other current assets $ 7.2 $ — $ 7.2 $ — Interest Rate Swap Other noncurrent assets $ 5.1 $ — $ 5.1 $ — Interest Rate Cap Other current assets $ 3.8 $ — $ 3.8 $ — Liabilities: Interest Rate Cap Other noncurrent liabilities $ 2.4 $ — $ 2.4 $ — The following table summarizes the location of gains in the Condensed Consolidated Statements of Operations that were recognized during the three and nine months ended September 30, 2023 and 2022, in addition to the derivative contract type: Three Months Ended Nine Months Ended (dollars in millions) Statement of Operations Location 2023 2022 2023 2022 Interest Rate Swap Other income, net $ ( 10.2 ) $ ( 13.8 ) $ ( 23.8 ) $ ( 11.9 ) Interest Rate Cap Other income, net $ ( 3.9 ) $ ( 10.9 ) $ ( 9.8 ) $ ( 0.6 ) Disclosure on Financial Instruments The carrying values of the Company's financial instruments approximate the estimated fair values as of September 30, 2023 and December 31, 2022, except for the Company's long-term debt and other financing arrangements. The carrying and fair values of these items are as follows: September 30, 2023 December 31, 2022 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,726.6 $ 1,683.9 $ 1,686.5 $ 1,647.0 Other financing arrangements 47.3 40.1 50.1 45.3 * 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 September 30, 2023 and December 31, 2022, which is considered Level 2 of the fair value hierarchy. The fair value of the other financing arrangements was calculated using a discounted cash flow model that incorporates current borrowing rates for obligations of similar duration, which is considered Level 3 of the fair value hierarchy. As of September 30, 2023, the current borrowing rate was estimated by applying the Company's credit spread to the risk-free rate for a similar duration borrowing. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Plans | 8. Pension and Postretirement Plans As of September 30, 2023, 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 the three and nine months ended September 30, 2022, Hawaiian Telcom's pension plans made lump sum payments of $ 1.4 million and $ 6.8 million, respectively, resulting in a reduction of the benefit obligation of $ 6.8 million. The lump sum payments to the plan participants exceeded the sum of the service cost and the interest cost component of the net pension cost resulting in a nominal pension settlement cost for the nine months ended September 30, 2022. In the third quarter of 2022, the Company identified a correction related to the Hawaiian Telcom postretirement health and life insurance plans liability. The adjustment resulted in an increase to the "Postretirement and Other Benefits liability" of $ 45.9 million, an increase to "Goodwill" of $ 35.0 million and reduction to "Deferred income tax liabilities" of $ 10.9 million on the Condensed Consolidated Balance Sheets. The impact of the correction is immaterial to current and prior period financial statements. In accordance with ASC 715, only the service cost component of net benefit cost is eligible for capitalization, which was immaterial for the nine months ended September 30, 2023 and 2022. Pension and postretirement costs (benefits) are as follows: Three Months Ended September 30, 2023 2022 2023 2022 (dollars in millions) Pension Benefits Postretirement and Other Benefits Service cost $ — $ — $ 0.1 $ 0.4 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 5.5 4.2 1.3 1.7 Expected return on plan assets ( 5.2 ) ( 6.6 ) — — Amortization of: Prior service benefit — — ( 0.2 ) — Actuarial gain ( 0.1 ) — ( 1.2 ) — Pension / postretirement cost (benefit) $ 0.2 $ ( 2.4 ) $ — $ 2.1 Nine Months Ended September 30, 2023 2022 2023 2022 (dollars in millions) Pension Benefits Postretirement and Other Benefits Service cost $ — $ — $ 0.3 $ 0.6 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 16.5 11.9 3.9 3.1 Expected return on plan assets ( 15.6 ) ( 20.9 ) — — Amortization of: Prior service benefit — — ( 0.6 ) — Actuarial gain ( 0.2 ) — ( 3.5 ) — Pension / postretirement cost (benefit) $ 0.7 $ ( 9.0 ) $ 0.1 $ 3.7 Amortization of prior service benefit and actuarial gain in the three and nine months ended September 30, 2023 represent reclassifications from accumulated other comprehensive income. For the nine months ended September 30, 2023, contributions to the qualified pension plans were no minal, and contributions to the non-qualified pension plans were $ 1.5 million. For the nine months ended September 30, 2022, there were no contributions to the qualified pension plans, and contributions to the non-qualified pension plans were $ 1.6 million. Based on current assumptions, contributions are expected to be nominal to the qualified pension plans in 2023. Contributions to the non-qualified pension plans in 2023 are expected to be approximately $ 2 million. For the nine months ended September 30, 2023 and 2022, contributions to our postretirement plans were $ 5.0 million and $ 5.3 million, respectively. Management expects to make total cash payments of approximately $ 7 million related to its postretirement health plans in 2023. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Equity | 9. Equity Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component were as follows: (dollars in millions) Unrecognized Foreign Total Balance as of June 30, 2023 $ 25.0 $ ( 5.2 ) $ 19.8 Reclassifications, net ( 1.2 ) (a) — ( 1.2 ) Foreign currency loss — ( 1.8 ) ( 1.8 ) Balance as of September 30, 2023 $ 23.8 $ ( 7.0 ) $ 16.8 Balance as of June 30, 2022 $ 1.3 $ ( 2.7 ) $ ( 1.4 ) Remeasurement of benefit obligations ( 0.8 ) — ( 0.8 ) Foreign currency loss — ( 5.9 ) ( 5.9 ) Balance as of September 30, 2022 $ 0.5 $ ( 8.6 ) $ ( 8.1 ) (dollars in millions) Unrecognized Foreign Total Balance as of December 31, 2022 $ 27.1 $ ( 7.6 ) $ 19.5 Reclassifications, net ( 3.3 ) (a) — ( 3.3 ) Foreign currency gain — 0.6 0.6 Balance as of September 30, 2023 $ 23.8 $ ( 7.0 ) $ 16.8 Balance as of December 31, 2021 $ 2.6 $ ( 1.4 ) $ 1.2 Remeasurement of benefit obligations ( 2.1 ) — ( 2.1 ) Foreign currency loss — ( 7.2 ) ( 7.2 ) Balance as of September 30, 2022 $ 0.5 $ ( 8.6 ) $ ( 8.1 ) (a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial gain, 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 (benefit)" on the Condensed Consolidated Statements of Operations. See Note 8 for further disclosures. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Business Segment Information | 10. 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 (1) Network and (2) IT Services and Hardware. The Network 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 and business long distance, switched access and digital trunking. Other services consist of revenue generated from wiring projects for enterprise customers, advertising, directory assistance, maintenance, information services and subsidized fiber build project revenue related to extending the Company’s fiber network in the Greater Cincinnati territory subsidized through our UniCity program and in Hawaii subsidized through a customer contract. In May 2022, the Company acquired Agile and includes Agile’s financial results in the Network segment. 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 September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Revenue Network $ 250.2 $ 251.1 $ 750.9 $ 741.6 IT Services and Hardware 204.4 217.8 622.3 615.6 Intersegment ( 6.3 ) ( 6.8 ) ( 18.3 ) ( 19.8 ) Total revenue $ 448.3 $ 462.1 $ 1,354.9 $ 1,337.4 Intersegment revenue Network $ 4.0 $ 4.8 $ 12.3 $ 14.5 IT Services and Hardware 2.3 2.0 6.0 5.3 Total intersegment revenue $ 6.3 $ 6.8 $ 18.3 $ 19.8 Operating (loss) income Network $ ( 7.0 ) $ ( 27.2 ) $ ( 39.8 ) $ ( 49.2 ) IT Services and Hardware ( 9.4 ) ( 0.7 ) ( 14.4 ) ( 10.7 ) Corporate ( 5.6 ) ( 8.8 ) ( 17.3 ) ( 24.2 ) Total operating loss $ ( 22.0 ) $ ( 36.7 ) $ ( 71.5 ) $ ( 84.1 ) Expenditures for long-lived assets* Network $ 179.4 $ 131.7 $ 474.5 $ 384.3 IT Services and Hardware 5.4 9.3 19.1 22.7 Corporate — 0.1 0.2 0.1 Total expenditures for long-lived assets $ 184.8 $ 141.1 $ 493.8 $ 407.1 Depreciation and amortization Network $ 84.3 $ 104.7 $ 279.5 $ 301.5 IT Services and Hardware 24.8 26.8 74.3 79.4 Corporate 0.1 — 0.3 0.2 Total depreciation and amortization $ 109.2 $ 131.5 $ 354.1 $ 381.1 * Includes cost of acquisitions (dollars in millions) September 30, 2023 December 31, 2022 Assets Network $ 3,449.6 $ 3,218.5 IT Services and Hardware 979.0 812.2 Corporate and eliminations 138.7 404.9 Total assets $ 4,567.3 $ 4,435.6 |
Description of Business and A_2
Description of Business and Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business — Cincinnati Bell Inc. and its consolidated subsidiaries ("Cincinnati Bell," "we," "our," "us" or the "Company") provides diversified telecommunications and technology services. The Company generates a large portion of its revenue by serving customers in Cincinnati, Ohio, Dayton, Ohio and the islands of Hawaii. An economic downturn or natural disaster occurring in these, or a portion of these, limited operating territories could have a disproportionate effect on our business, financial condition, results of operations and cash flows compared to similar companies of a national scope and similar companies operating in different geographic areas. The Company had receivables with one customer, Verizon Communications Inc. (“Verizon”), which made up 13 % and 21 % of the outstanding accounts receivable balance at September 30, 2023 and December 31, 2022, respectively. Revenue derived from foreign operations was approximately 7 % of consolidated revenue for the three and nine months ended September 30, 2023 and 2022. In August 2023, Red Fiber Parent LLC ("Parent") committed to make capital contributions of $ 600.0 million to the Company, of which $ 400.0 million was received by the Company in the third quarter of 2023 and recorded to "Additional paid-in capital" on the Condensed Consolidated Balance Sheets and $ 200.0 million will be received in the fourth quarter of 2024 . The capital contribution received in the third quarter of 2023 was used to repay borrowings on the Company's Revolving Credit Facility due 2026, fund capital expenditures, and fund working capital. |
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 SEC and, in the opinion of management, include all adjustments necessary for a fair statement 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 Company’s Condensed Consolidated Balance Sheet as of December 31, 2022 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 2022 Annual Report on Form 10-K. |
Business Combination | Business Combinations — In accounting for business combinations, we apply the accounting requirements of Accounting Standards Codification 805 (“ASC 805”), “Business Combinations,” which requires the recording of net assets of acquired businesses at fair value. In developing fair value estimates for acquired assets and assumed liabilities, management analyzes a variety of factors including market data, estimated future cash flows of the acquired operations, industry growth rates, current replacement cost for fixed assets, and market rate assumptions for contractual obligations. Such a valuation requires management to make significant estimates and assumptions, particularly with respect to the intangible assets. In addition, any contingent consideration is presented at fair value at the date of acquisition, and transaction costs are expensed as incurred. The Company reports in its Condensed Consolidated Financial Statements provisional amounts for the items for which accounting is incomplete. Goodwill is adjusted for any changes to provisional amounts made within the measurement period. See Note 2 for disclosures related to mergers and acquisitions. |
Use of Estimates | Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates. In the normal course of business, the Company is subject to various regulatory and tax proceedings, lawsuits, claims and other matters. The Company believes adequate provision has been made for all such asserted and unasserted claims in accordance with U.S. GAAP. Such matters are subject to many uncertainties and outcomes that are not predictable with assurance. |
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, 2022. |
Variable Interest Entity | Variable Interest Entity — The Company holds an interest in a limited liability company, Digital Access Ohio LLC (“DAO”), that is considered a variable interest entity ("VIE") in accordance with the guidance of ASC 810 “Consolidation.” As of September 30, 2023, operations of DAO are nominal in nature. DAO is considered a VIE as it has insufficient equity capital to finance its activities without additional financial support. The Company is the primary beneficiary of DAO as it has the power over the activities that most significantly impact the economic performance of DAO and has the obligation to absorb expected losses and the right to receive expected benefits that could be significant to DAO. As a result, the Company consolidated DAO, and all significant intercompany accounts have been eliminated. Funding of DAO is provided in the form of cash contributions, debt issuance and grants that include a free standing warrant that allows the holder of the warrant at its option to convert the warrant into a class A-2 share of DAO at any time during the period commencing on the 2 nd anniversary of the funding agreement and ending on the 10th anniversary of the funding agreement date. The Company has recorded the fair value associated with the warrant to "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets. The Company will continue to assess whether it has a controlling financial interest and whether it is the primary beneficiary at each reportin g period. |
Cash, Cash Equivalents and Restricted Cash | 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 as of September 30, 2023 and December 31, 2022 consists of funds held in an escrow account related to a cost method investment and funds held by DAO. 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) September 30, 2023 December 31, 2022 Cash and cash equivalents $ 7.7 $ 9.4 Restricted cash included in Other noncurrent assets 2.9 3.5 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 10.6 $ 12.9 |
Goodwill | Goodwill — Goodwill represents the excess of the purchase price consideration over the fair value of net assets acquired and recorded in connection with business acquisitions. Goodwill is allocated at the business segment level. Goodwill is tested for impairment on an annual basis or when events or changes in circumstances indicate that such assets may be impaired. If the net book value of the reporting unit exceeds its fair value, an impairment loss is recognized. An impairment loss is measured as the excess of the carrying value of goodwill of a reporting unit over its fair value. |
Indefinite-Lived Intangible Assets | Indefinite-Lived Intangible Assets — Intangible assets represent purchased assets that lack physical substance but can be separately distinguished from goodwill because of contractual or legal rights, or because the asset is capable of being separately sold or exchanged. Federal Communications Commission ("FCC") licenses for wireless spectrum and other perpetual licenses represent indefinite-lived intangible assets. The Company may renew the wireless licenses in a routine manner every ten years for a nominal fee, provided the Company continues to meet the service and geographic coverage provisions required by the FCC. Intangible assets not subject to amortization are tested for impairment annually, or when events or changes in circumstances indicate that the asset might be impaired. |
Long-Lived Assets | Long-Lived Assets — Management reviews the carrying value of property, plant and equipment and other long-lived assets, including intangible assets with definite lives, when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. An impairment loss is recognized when the estimated future undiscounted cash flows expected to result from the use of an asset (or group of assets) and its eventual disposition is less than its carrying amount. An impairment loss is measured as the amount by which the asset’s carrying value exceeds its estimated fair value. Long-lived intangible assets are amortized based on the estimated economic value generated by the asset in future years. |
Accounting for Impacts of Involuntary Events and Contingencies | Accounting for Impacts of Involuntary Events and Contingencies — Assets destroyed or damaged as a result of involuntary events are written off or reduced in carrying value to their salvage value. When recovery of all or a portion of the amount of property damage loss or other covered expenses through insurance proceeds is demonstrated to be probable, a receivable is recorded and offsets the loss or expense up to the amount of the total loss or expense. Proceeds ultimately received from insurance claims for business interruption, direct expenditures and amounts for capital assets in excess of net book value will be recorded to results of operations when collected. No gain is recorded until all contingencies related to the insurance claim have been resolved. In August 2023, wildfires ignited on Maui and Hawaii islands and spread rapidly due to extreme wind conditions caused in part by Hurricane Dora which traveled 800 miles offshore west of Maui. The fires caused widespread damage to Lahaina town on the island of Maui and the surrounding area, including physical loss and damage to certain of the Company’s fiber and copper assets and Company owned equipment located on customer premises. The Company experienced the loss of business income immediately following the fires and is expected to continue to experience loss of business income for an unknown amount of time. The Company expects to file insurance claims for the physical loss and damages experienced in Lahaina and for business income losses resulting from the matter. As of September 30, 2023, no receivable associated with insurance proceeds has been recorded. Expenditures in the quarter ended September 30, 2023 as a result of the fire have been primarily capital in nature. Additionally, due to the age of certain of the impacted assets, the net book value that was disposed in the quarter due to fire damage was nominal in nature. In October 2023, attorneys filed a Second Amended Complaint in a proposed class action lawsuit filed in Hawaii state court, adding the Company along with other telecommunications companies and private and public landowners. Legal expenses related to this matter are not material in the third quarter of 2023, but it is possible the Company may incur significant expenses in legal fees, damages awards, or settlements in future periods. |
Income Taxes | Income taxes — In accordance with 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. Based on the estimated annual effective tax rate, the Company’s tax benefit was lower than the period’s loss at the statutory rate, due primarily to federal and state valuation allowances recorded against deferred tax assets, offset in part by state income tax benefit. Discrete tax items in the reporting period, most notably a $ 2.6 million benefit for research and development tax credits, largely offset the estimated annual effective tax rate adjustments. With the current year loss, net operating losses exceed deferred tax liabilities available for offset. Therefore, a $ 9.6 million partial federal and state valuation allowance has been recorded year-to-date on net operating losses that are primarily non-expiring. |
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 income.” 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 income" 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. All cash flows associated with the Company’s derivative instruments are classified as operating activities in the Condensed Consolidated Statements of Cash Flows. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards 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. |
Description of Business and A_3
Description of Business and Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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) September 30, 2023 December 31, 2022 Cash and cash equivalents $ 7.7 $ 9.4 Restricted cash included in Other noncurrent assets 2.9 3.5 Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows $ 10.6 $ 12.9 |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) - Agile IWG Holdings, LLC [Member] | 9 Months Ended |
Sep. 30, 2023 | |
Purchase Price Allocation | Based on fair value estimates, the purchase price has been allocated to individual assets acquired and liabilities assumed as follows: (dollars in millions) Agile Assets acquired Receivables and other current assets $ 1.8 Property, plant and equipment 10.2 Operating lease right-of-use assets 27.8 Intangible assets 19.4 Goodwill 35.0 Total assets acquired 94.2 Liabilities assumed Accrued expenses and other current liabilities 2.5 Operating lease liabilities 25.7 Other noncurrent liabilities 0.5 Total liabilities assumed 28.7 Net assets acquired $ 65.5 |
Fair Values of Identifiable Intangible Assets Acquired | Based on fair value estimates, the identifiable intangible assets acquired are as follows: (dollars in millions) Fair Value Useful Lives Customer relationships $ 16.0 15 years Trade names 2.3 10 years Technology 1.1 7 years Total identifiable intangible assets $ 19.4 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Expected Revenue to be Recognized for Existing Customer Contracts | The expected revenue to be recognized for existing customer contracts is as follows: (dollars in millions) Three months ended December 31, 2023 $ 5.5 2024 21.4 2025 21.1 2026 21.3 2027 21.6 Thereafter 103.7 |
Schedule of Activity of Contract Assets | The following table presents the activity for the Company’s contract assets: Fulfillment Costs Cost of Acquisition Total Contract Assets (dollars in millions) Network IT Services Total Network IT Services Total Network IT Services Total Balance as of December 31, 2022 $ 2.5 $ 2.7 $ 5.2 $ 12.0 $ 1.0 $ 13.0 $ 14.5 $ 3.7 $ 18.2 Additions 0.5 0.5 1.0 3.0 0.2 3.2 3.5 0.7 4.2 Amortization ( 0.2 ) ( 0.2 ) ( 0.4 ) ( 1.2 ) ( 0.2 ) ( 1.4 ) ( 1.4 ) ( 0.4 ) ( 1.8 ) Balance as of March 31, 2023 2.8 3.0 5.8 13.8 1.0 14.8 16.6 4.0 20.6 Additions 0.5 0.6 1.1 2.8 0.2 3.0 3.3 0.8 4.1 Amortization ( 0.2 ) ( 0.3 ) ( 0.5 ) ( 1.3 ) ( 0.2 ) ( 1.5 ) ( 1.5 ) ( 0.5 ) ( 2.0 ) Balance as of June 30, 2023 3.1 3.3 6.4 15.3 1.0 16.3 18.4 4.3 22.7 Additions 0.6 0.4 1.0 3.0 0.2 3.2 3.6 0.6 4.2 Amortization ( 0.2 ) ( 0.4 ) ( 0.6 ) ( 1.4 ) ( 0.2 ) ( 1.6 ) ( 1.6 ) ( 0.6 ) ( 2.2 ) Balance as of September 30, 2023 $ 3.5 $ 3.3 $ 6.8 $ 16.9 $ 1.0 $ 17.9 $ 20.4 $ 4.3 $ 24.7 |
Schedule of Revenues Disaggregation by Product and Service Lines | The following table presents revenues disaggregated by product and service lines: Three Months Ended September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Data $ 139.7 $ 132.8 $ 414.1 $ 388.4 Video 47.8 47.8 144.7 144.8 Voice 53.3 58.2 165.2 175.2 Other 9.4 12.3 26.9 33.2 Total Network 250.2 251.1 750.9 741.6 Consulting 85.1 86.9 258.8 253.8 Cloud 30.6 25.1 86.3 74.8 Communications 56.2 56.1 166.4 165.3 Infrastructure Solutions 32.5 49.7 110.8 121.7 Total IT Services and Hardware 204.4 217.8 622.3 615.6 Intersegment Revenue ( 6.3 ) ( 6.8 ) ( 18.3 ) ( 19.8 ) Total Revenue $ 448.3 $ 462.1 $ 1,354.9 $ 1,337.4 The following table presents revenues disaggregated by contract type: Three Months Ended September 30, (dollars in millions) Network IT Services and Hardware Intersegment revenue Total 2023 2022 2023 2022 2023 2022 2023 2022 Products and Services transferred at a point in time $ 7.4 $ 6.9 $ 39.7 $ 44.8 $ — $ — $ 47.1 $ 51.7 Products and Services transferred over time 238.8 239.4 162.4 171.0 — — 401.2 410.4 Intersegment revenue 4.0 4.8 2.3 2.0 ( 6.3 ) ( 6.8 ) — — Total revenue $ 250.2 $ 251.1 $ 204.4 $ 217.8 $ ( 6.3 ) $ ( 6.8 ) $ 448.3 $ 462.1 Nine Months Ended September 30, (dollars in millions) Network IT Services and Hardware Intersegment revenue Total 2023 2022 2023 2022 2023 2022 2023 2022 Products and Services transferred at a point in time $ 19.5 $ 20.4 $ 125.1 $ 121.4 $ — $ — $ 144.6 $ 141.8 Products and Services transferred over time 719.1 706.7 491.2 488.9 — — 1,210.3 1,195.6 Intersegment revenue 12.3 14.5 6.0 5.3 ( 18.3 ) ( 19.8 ) — — Total revenue $ 750.9 $ 741.6 $ 622.3 $ 615.6 $ ( 18.3 ) $ ( 19.8 ) $ 1,354.9 $ 1,337.4 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 Network Total Company Goodwill, balance as of December 31, 2022 $ 177.6 $ 545.9 $ 723.5 Activity during the year: Adjustments to prior year acquisition of Agile — ( 4.4 ) ( 4.4 ) Acquisition of OTT — 1.1 1.1 Currency translations 0.2 — 0.2 Goodwill, balance as of September 30, 2023 $ 177.8 $ 542.6 $ 720.4 |
Schedule of Intangible Assets | The Company’s intangible assets consisted of the following: September 30, 2023 December 31, 2022 Gross Carrying Accumulated Net Gross Carrying Accumulated Net (dollars in millions) Amount Amortization Amount Amount Amortization Amount Intangible assets subject to amortization Customer relationships $ 862.4 $ ( 214.4 ) $ 648.0 $ 862.1 $ ( 140.7 ) $ 721.4 Trade names 109.6 ( 32.3 ) 77.3 109.5 ( 20.5 ) 89.0 Technology 6.1 ( 1.7 ) 4.4 6.0 ( 1.0 ) 5.0 Total 978.1 ( 248.4 ) 729.7 977.6 ( 162.2 ) 815.4 Intangible assets not subject to amortization FCC licenses and spectrum usage rights 7.1 — 7.1 6.9 — 6.9 Perpetual licenses 6.8 — 6.8 6.8 — 6.8 Total intangible assets $ 992.0 $ ( 248.4 ) $ 743.6 $ 991.3 $ ( 162.2 ) $ 829.1 |
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 15 years Trade names 3 to 10 years Technology 7 years |
Schedule of Estimated Amortization Expense | The annual estimated amortization expense for future years is as follows: (dollars in millions) Three months ended December 31, 2023 $ 28.7 2024 105.4 2025 93.7 2026 86.5 2027 79.3 Thereafter 336.1 Total $ 729.7 |
Debt and Other Financing Arra_2
Debt and Other Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consists of the following: (dollars in millions) September 30, 2023 December 31, 2022 Current portion of long-term debt: Credit Agreement - Term B-1 Loans $ 5.0 $ 5.0 Credit Agreement - Term B-2 Loans 6.5 6.5 Credit Agreement - Term B-3 Loans 2.0 — 7 1/4 % Notes due 2023 (1) — 22.8 Paniolo Fiber Assets Financing Arrangement 0.4 0.5 Other financing arrangements 0.2 0.3 Finance lease liabilities 11.6 9.9 Current portion of long-term debt 25.7 45.0 Long-term debt, less current portion: Receivables Facility — 186.9 Network Receivables Facility 33.9 — CBTS Receivables Facility 211.9 — Credit Agreement - Revolving Credit Facility 36.0 223.0 Credit Agreement - Term B-1 Loans 486.3 490.0 Credit Agreement - Term B-2 Loans 632.1 637.0 Credit Agreement - Term B-3 Loans 197.5 — Various Cincinnati Bell Telephone notes (1) 95.4 96.4 Paniolo Fiber Assets Financing Arrangement 21.6 21.8 Digital Access Ohio Advance 3.7 0.9 Other financing arrangements 0.6 — Finance lease liabilities 39.5 43.1 1,758.5 1,699.1 Net unamortized discount ( 5.7 ) ( 4.3 ) Unamortized note issuance costs ( 36.2 ) ( 38.8 ) Long-term debt, less current portion 1,716.6 1,656.0 Total debt $ 1,742.3 $ 1,701.0 As of September 30, 2023, the net carrying amount of the Various Cincinnati Bell Telephone notes included an unamortized fair value adjustment recorded on the Company's merger date, September 7, 2021, of $ 7.5 million. As of December 31, 2022, the net carrying amounts of the 7 ¼ % Notes due 2023 and Various Cincinnati Bell Telephone notes included unamortized fair value adjustments recorded on the Company's merger date, September 7, 2021, of $ 0.5 million and $ 8.5 million, respectively. Each adjustment is amortized over the life of the respective notes and is recorded as a reduction of interest expense. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to the Company's leases is as follows: (dollars in millions) Balance Sheet Location September 30, 2023 December 31, 2022 Operating lease assets, net of amortization Operating lease right-of-use assets $ 75.2 $ 73.1 Finance lease assets, net of amortization Property, plant and equipment, net 16.9 16.5 Operating lease liabilities: Current operating lease liabilities Other current liabilities 11.8 12.7 Noncurrent operating lease liabilities Operating lease liabilities 68.9 66.1 Total operating lease liabilities 80.7 78.8 Finance lease liabilities: Current finance lease liabilities Current portion of long-term debt 11.6 9.9 Noncurrent finance lease liabilities Long-term debt, less current portion 39.5 43.1 Total finance lease liabilities $ 51.1 $ 53.0 |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows: Nine Months Ended September 30, (dollars in millions) 2023 2022 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 3.0 $ 2.5 Operating cash flows from operating leases $ 10.2 $ 9.0 Financing cash flows from finance leases $ 9.9 $ 6.4 Right-of-use assets obtained in exchange for lease obligations: New operating leases $ 11.8 $ 11.6 New finance leases $ 7.9 $ 8.1 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Interest rate Swaps and Interest Rate Caps are Recorded in Condensed Consolidated Balance Sheets | As of September 30, 2023, the fair values of the interest rate swaps and interest rate caps are recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location September 30, 2023 Quoted Prices in Significant Significant Assets: Interest Rate Swap Other current assets $ 16.0 $ — $ 16.0 $ — Interest Rate Swap Other noncurrent assets $ 11.4 $ — $ 11.4 $ — Interest Rate Cap Other current assets $ 5.7 $ — $ 5.7 $ — Interest Rate Cap Other noncurrent assets $ 2.3 $ — $ 2.3 $ — As of December 31, 2022, the fair values of the interest rate swaps and interest rate caps are recorded in the Condensed Consolidated Balance Sheets as follows: (dollars in millions) Balance Sheet Location December 31, 2022 Quoted Prices in Significant Significant Assets: Interest Rate Swap Other current assets $ 7.2 $ — $ 7.2 $ — Interest Rate Swap Other noncurrent assets $ 5.1 $ — $ 5.1 $ — Interest Rate Cap Other current assets $ 3.8 $ — $ 3.8 $ — Liabilities: Interest Rate Cap Other noncurrent liabilities $ 2.4 $ — $ 2.4 $ — |
Schedule of Summarizes the Location of (Gains) Losses in the Condensed Consolidated Statements of Operations in Addition to the Derivative Contract Type | The following table summarizes the location of gains in the Condensed Consolidated Statements of Operations that were recognized during the three and nine months ended September 30, 2023 and 2022, in addition to the derivative contract type: Three Months Ended Nine Months Ended (dollars in millions) Statement of Operations Location 2023 2022 2023 2022 Interest Rate Swap Other income, net $ ( 10.2 ) $ ( 13.8 ) $ ( 23.8 ) $ ( 11.9 ) Interest Rate Cap Other income, net $ ( 3.9 ) $ ( 10.9 ) $ ( 9.8 ) $ ( 0.6 ) |
Schedule of Carrying and Fair Values by Balance Sheet Grouping | The carrying and fair values of these items are as follows: September 30, 2023 December 31, 2022 (dollars in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including current portion* $ 1,726.6 $ 1,683.9 $ 1,686.5 $ 1,647.0 Other financing arrangements 47.3 40.1 50.1 45.3 * Excludes finance leases, other financing arrangements and note issuance costs |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Pension and Postretirement Costs (Benefits) | Pension and postretirement costs (benefits) are as follows: Three Months Ended September 30, 2023 2022 2023 2022 (dollars in millions) Pension Benefits Postretirement and Other Benefits Service cost $ — $ — $ 0.1 $ 0.4 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 5.5 4.2 1.3 1.7 Expected return on plan assets ( 5.2 ) ( 6.6 ) — — Amortization of: Prior service benefit — — ( 0.2 ) — Actuarial gain ( 0.1 ) — ( 1.2 ) — Pension / postretirement cost (benefit) $ 0.2 $ ( 2.4 ) $ — $ 2.1 Nine Months Ended September 30, 2023 2022 2023 2022 (dollars in millions) Pension Benefits Postretirement and Other Benefits Service cost $ — $ — $ 0.3 $ 0.6 Other components of pension and postretirement benefit plans expense: Interest cost on projected benefit obligation 16.5 11.9 3.9 3.1 Expected return on plan assets ( 15.6 ) ( 20.9 ) — — Amortization of: Prior service benefit — — ( 0.6 ) — Actuarial gain ( 0.2 ) — ( 3.5 ) — Pension / postretirement cost (benefit) $ 0.7 $ ( 9.0 ) $ 0.1 $ 3.7 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The changes in accumulated other comprehensive income (loss) by component were as follows: (dollars in millions) Unrecognized Foreign Total Balance as of June 30, 2023 $ 25.0 $ ( 5.2 ) $ 19.8 Reclassifications, net ( 1.2 ) (a) — ( 1.2 ) Foreign currency loss — ( 1.8 ) ( 1.8 ) Balance as of September 30, 2023 $ 23.8 $ ( 7.0 ) $ 16.8 Balance as of June 30, 2022 $ 1.3 $ ( 2.7 ) $ ( 1.4 ) Remeasurement of benefit obligations ( 0.8 ) — ( 0.8 ) Foreign currency loss — ( 5.9 ) ( 5.9 ) Balance as of September 30, 2022 $ 0.5 $ ( 8.6 ) $ ( 8.1 ) (dollars in millions) Unrecognized Foreign Total Balance as of December 31, 2022 $ 27.1 $ ( 7.6 ) $ 19.5 Reclassifications, net ( 3.3 ) (a) — ( 3.3 ) Foreign currency gain — 0.6 0.6 Balance as of September 30, 2023 $ 23.8 $ ( 7.0 ) $ 16.8 Balance as of December 31, 2021 $ 2.6 $ ( 1.4 ) $ 1.2 Remeasurement of benefit obligations ( 2.1 ) — ( 2.1 ) Foreign currency loss — ( 7.2 ) ( 7.2 ) Balance as of September 30, 2022 $ 0.5 $ ( 8.6 ) $ ( 8.1 ) (a) These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial gain, 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 (benefit)" on the Condensed Consolidated Statements of Operations. See Note 8 for further disclosures. |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, Nine Months Ended September 30, (dollars in millions) 2023 2022 2023 2022 Revenue Network $ 250.2 $ 251.1 $ 750.9 $ 741.6 IT Services and Hardware 204.4 217.8 622.3 615.6 Intersegment ( 6.3 ) ( 6.8 ) ( 18.3 ) ( 19.8 ) Total revenue $ 448.3 $ 462.1 $ 1,354.9 $ 1,337.4 Intersegment revenue Network $ 4.0 $ 4.8 $ 12.3 $ 14.5 IT Services and Hardware 2.3 2.0 6.0 5.3 Total intersegment revenue $ 6.3 $ 6.8 $ 18.3 $ 19.8 Operating (loss) income Network $ ( 7.0 ) $ ( 27.2 ) $ ( 39.8 ) $ ( 49.2 ) IT Services and Hardware ( 9.4 ) ( 0.7 ) ( 14.4 ) ( 10.7 ) Corporate ( 5.6 ) ( 8.8 ) ( 17.3 ) ( 24.2 ) Total operating loss $ ( 22.0 ) $ ( 36.7 ) $ ( 71.5 ) $ ( 84.1 ) Expenditures for long-lived assets* Network $ 179.4 $ 131.7 $ 474.5 $ 384.3 IT Services and Hardware 5.4 9.3 19.1 22.7 Corporate — 0.1 0.2 0.1 Total expenditures for long-lived assets $ 184.8 $ 141.1 $ 493.8 $ 407.1 Depreciation and amortization Network $ 84.3 $ 104.7 $ 279.5 $ 301.5 IT Services and Hardware 24.8 26.8 74.3 79.4 Corporate 0.1 — 0.3 0.2 Total depreciation and amortization $ 109.2 $ 131.5 $ 354.1 $ 381.1 * Includes cost of acquisitions (dollars in millions) September 30, 2023 December 31, 2022 Assets Network $ 3,449.6 $ 3,218.5 IT Services and Hardware 979.0 812.2 Corporate and eliminations 138.7 404.9 Total assets $ 4,567.3 $ 4,435.6 |
Description of Business and A_4
Description of Business and Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2023 USD ($) Customer | Sep. 30, 2022 | Sep. 30, 2023 USD ($) Customer | Sep. 30, 2022 | Dec. 31, 2024 USD ($) | Aug. 31, 2023 USD ($) | Dec. 31, 2022 | |
Description of Business and Accounting Policies [Line Items] | |||||||
Revenue derived from foreign operations | 7% | 7% | 7% | 7% | |||
Partial federal and state valuation allowance | $ 9.6 | $ 9.6 | |||||
Capital contributions committed by parent | $ 600 | ||||||
Capital contributions received from parent | $ 400 | 400 | |||||
Discrete benefit for research and development tax credits | $ 2.6 | ||||||
Forecast | |||||||
Description of Business and Accounting Policies [Line Items] | |||||||
Capital contributions committed by parent for next fiscal year | $ 200 | ||||||
Verizon Communications Inc. [Member] | |||||||
Description of Business and Accounting Policies [Line Items] | |||||||
Number of customers, exceeds 10% of total accounts receivable | Customer | 1 | 1 | |||||
Accounts receivable from one customer greater than 10%, percentage | 13% | 13% | 21% | ||||
Additional Paid-in Capital [Member] | |||||||
Description of Business and Accounting Policies [Line Items] | |||||||
Capital contributions received from parent | $ 400 | $ 400 |
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 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 7.7 | $ 9.4 | ||
Restricted cash included in Other noncurrent assets | 2.9 | 3.5 | ||
Cash, cash equivalents and restricted cash per Condensed Consolidated Statements of Cash Flows | $ 10.6 | $ 12.9 | $ 10.2 | $ 6.1 |
Mergers and Acquisitions - Narr
Mergers and Acquisitions - Narratives (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Apr. 17, 2023 | May 02, 2022 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||||||
Transaction and integration costs | $ 0 | $ 3,500,000 | $ 100,000 | $ 10,100,000 | |||||
Goodwill | 720,400,000 | $ 720,400,000 | $ 723,500,000 | ||||||
Bridgewired, LLC [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Gross value of acquisition | 5,900,000 | ||||||||
Aggregate purchase price | 6,700,000 | ||||||||
Contingent consideration | 800,000 | ||||||||
Ohio Transparent Telecom Inc. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership percentage acquired | 100% | ||||||||
Gross value of acquisition | $ 3,200,000 | ||||||||
Aggregate purchase price | 3,300,000 | ||||||||
Contingent consideration | 100,000 | ||||||||
Goodwill | $ 1,100,000 | ||||||||
Lawrenceburg Fiber Assets [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Gross value of acquisition | $ 2,700,000 | ||||||||
Aggregate purchase price | 3,000,000 | ||||||||
Contingent consideration | $ 300,000 | ||||||||
Agile IWG Holdings, LLC [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Gross value of acquisition | $ 65,500,000 | ||||||||
Transaction and integration costs | $ 0 | $ 300,000 | $ 1,900,000 | ||||||
Increase (decrease) in goodwill and deferred income tax liability | $ 4,400,000 | ||||||||
Goodwill | $ 35,000,000 |
Mergers and Acquisitions - Purc
Mergers and Acquisitions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Apr. 17, 2023 | Dec. 31, 2022 | May 02, 2022 |
Assets acquired | ||||
Goodwill | $ 720.4 | $ 723.5 | ||
Agile IWG Holdings, LLC [Member] | ||||
Assets acquired | ||||
Receivables and other current assets | $ 1.8 | |||
Property, plant and equipment | 10.2 | |||
Operating lease right-of-use assets | 27.8 | |||
Intangible assets | 19.4 | |||
Goodwill | 35 | |||
Total assets acquired | 94.2 | |||
Liabilities assumed | ||||
Accrued expenses and other current liabilities | 2.5 | |||
Operating lease liabilities | 25.7 | |||
Other noncurrent liabilities | 0.5 | |||
Total liabilities assumed | 28.7 | |||
Net assets acquired | $ 65.5 | |||
Ohio Transparent Telecom Inc. [Member] | ||||
Assets acquired | ||||
Goodwill | $ 1.1 |
Mergers and Acquisitions - Fair
Mergers and Acquisitions - Fair Values of Identifiable Intangible Assets Acquired (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | May 02, 2022 |
Business Acquisition [Line Items] | |||
Fair Value | $ 978.1 | $ 977.6 | |
Fair Value | 992 | 991.3 | |
Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 862.4 | 862.1 | |
Useful Lives | 15 years | ||
Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 109.6 | 109.5 | |
Technology [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 6.1 | $ 6 | |
Useful Lives | 7 years | ||
Agile IWG Holdings, LLC [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 19.4 | ||
Agile IWG Holdings, LLC [Member] | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 16 | ||
Useful Lives | 15 years | ||
Agile IWG Holdings, LLC [Member] | Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 2.3 | ||
Useful Lives | 10 years | ||
Agile IWG Holdings, LLC [Member] | Technology [Member] | |||
Business Acquisition [Line Items] | |||
Fair Value | $ 1.1 | ||
Useful Lives | 7 years |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Payment terms for customers, lower range | 30 days | |
Payment term for customers, upper range | 120 days | |
Total | $ 194.6 | |
Unearned revenue and customer deposits | 66.1 | $ 81.6 |
Other Current Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Unearned revenue and customer deposits | 3.9 | 3.2 |
Other Noncurrent Liabilities [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Contract liabilities, recognized, noncurrent | $ 71.5 | $ 74.2 |
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 | Sep. 30, 2023 USD ($) |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 194.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 5.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months |
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 | $ 21.4 |
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 | $ 21.1 |
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 | $ 21.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 21.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2028-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Expected revenue to be recognized | $ 103.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period |
Revenue - Schedule of Activity
Revenue - Schedule of Activity of Contract Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | $ 22.7 | $ 20.6 | $ 18.2 |
Capitalized contract cost, Additions | 4.2 | 4.1 | 4.2 |
Capitalized contract cost, Amortization | (2.2) | (2) | (1.8) |
Capitalized contract cost, net, ending Balance | 24.7 | 22.7 | 20.6 |
Fulfillment Costs [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 6.4 | 5.8 | 5.2 |
Capitalized contract cost, Additions | 1 | 1.1 | 1 |
Capitalized contract cost, Amortization | (0.6) | (0.5) | (0.4) |
Capitalized contract cost, net, ending Balance | 6.8 | 6.4 | 5.8 |
Cost of Acquisition [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 16.3 | 14.8 | 13 |
Capitalized contract cost, Additions | 3.2 | 3 | 3.2 |
Capitalized contract cost, Amortization | (1.6) | (1.5) | (1.4) |
Capitalized contract cost, net, ending Balance | 17.9 | 16.3 | 14.8 |
Operating Segments | Network [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 18.4 | 16.6 | 14.5 |
Capitalized contract cost, Additions | 3.6 | 3.3 | 3.5 |
Capitalized contract cost, Amortization | (1.6) | (1.5) | (1.4) |
Capitalized contract cost, net, ending Balance | 20.4 | 18.4 | 16.6 |
Operating Segments | Network [Member] | Fulfillment Costs [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 3.1 | 2.8 | 2.5 |
Capitalized contract cost, Additions | 0.6 | 0.5 | 0.5 |
Capitalized contract cost, Amortization | (0.2) | (0.2) | (0.2) |
Capitalized contract cost, net, ending Balance | 3.5 | 3.1 | 2.8 |
Operating Segments | Network [Member] | Cost of Acquisition [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 15.3 | 13.8 | 12 |
Capitalized contract cost, Additions | 3 | 2.8 | 3 |
Capitalized contract cost, Amortization | (1.4) | (1.3) | (1.2) |
Capitalized contract cost, net, ending Balance | 16.9 | 15.3 | 13.8 |
Operating Segments | IT Services and Hardware [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 4.3 | 4 | 3.7 |
Capitalized contract cost, Additions | 0.6 | 0.8 | 0.7 |
Capitalized contract cost, Amortization | (0.6) | (0.5) | (0.4) |
Capitalized contract cost, net, ending Balance | 4.3 | 4.3 | 4 |
Operating Segments | IT Services and Hardware [Member] | Fulfillment Costs [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 3.3 | 3 | 2.7 |
Capitalized contract cost, Additions | 0.4 | 0.6 | 0.5 |
Capitalized contract cost, Amortization | (0.4) | (0.3) | (0.2) |
Capitalized contract cost, net, ending Balance | 3.3 | 3.3 | 3 |
Operating Segments | IT Services and Hardware [Member] | Cost of Acquisition [Member] | |||
Contract Asset [Roll Forward] | |||
Capitalized contract cost, net, beginning balance | 1 | 1 | 1 |
Capitalized contract cost, Additions | 0.2 | 0.2 | 0.2 |
Capitalized contract cost, Amortization | (0.2) | (0.2) | (0.2) |
Capitalized contract cost, net, ending Balance | $ 1 | $ 1 | $ 1 |
Revenue - Schedule of Revenues
Revenue - Schedule of Revenues Disaggregation by Product and Service Lines (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 448.3 | $ 462.1 | $ 1,354.9 | $ 1,337.4 |
Operating Segments | Network [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 250.2 | 251.1 | 750.9 | 741.6 |
Operating Segments | Network [Member] | Data [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 139.7 | 132.8 | 414.1 | 388.4 |
Operating Segments | Network [Member] | Video [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 47.8 | 47.8 | 144.7 | 144.8 |
Operating Segments | Network [Member] | Voice [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 53.3 | 58.2 | 165.2 | 175.2 |
Operating Segments | Network [Member] | Other [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 9.4 | 12.3 | 26.9 | 33.2 |
Operating Segments | IT Services and Hardware [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 204.4 | 217.8 | 622.3 | 615.6 |
Operating Segments | IT Services and Hardware [Member] | Consulting | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 85.1 | 86.9 | 258.8 | 253.8 |
Operating Segments | IT Services and Hardware [Member] | Cloud | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 30.6 | 25.1 | 86.3 | 74.8 |
Operating Segments | IT Services and Hardware [Member] | Communications | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 56.2 | 56.1 | 166.4 | 165.3 |
Operating Segments | IT Services and Hardware [Member] | Infrastructure Solutions | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 32.5 | 49.7 | 110.8 | 121.7 |
Intersegment Eliminations [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | (6.3) | (6.8) | (18.3) | (19.8) |
Intersegment Eliminations [Member] | Network [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 4 | 4.8 | 12.3 | 14.5 |
Intersegment Eliminations [Member] | IT Services and Hardware [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 2.3 | $ 2 | $ 6 | $ 5.3 |
Revenue - Schedule of Revenue_2
Revenue - Schedule of Revenues Disaggregation by Contract Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 448.3 | $ 462.1 | $ 1,354.9 | $ 1,337.4 |
Transferred at Point in Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 47.1 | 51.7 | 144.6 | 141.8 |
Transferred over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 401.2 | 410.4 | 1,210.3 | 1,195.6 |
Intersegment Eliminations [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | (6.3) | (6.8) | (18.3) | (19.8) |
Intersegment Eliminations [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Transferred over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Network [Member] | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 250.2 | 251.1 | 750.9 | 741.6 |
Network [Member] | Operating Segments | Transferred at Point in Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 7.4 | 6.9 | 19.5 | 20.4 |
Network [Member] | Operating Segments | Transferred over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 238.8 | 239.4 | 719.1 | 706.7 |
Network [Member] | Intersegment Eliminations [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 4 | 4.8 | 12.3 | 14.5 |
IT Services and Hardware [Member] | Operating Segments | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 204.4 | 217.8 | 622.3 | 615.6 |
IT Services and Hardware [Member] | Operating Segments | Transferred at Point in Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 39.7 | 44.8 | 125.1 | 121.4 |
IT Services and Hardware [Member] | Operating Segments | Transferred over Time [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | 162.4 | 171 | 491.2 | 488.9 |
IT Services and Hardware [Member] | Intersegment Eliminations [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenues | $ 2.3 | $ 2 | $ 6 | $ 5.3 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 723.5 |
Adjustments to prior year acquisition of Agile | (4.4) |
Acquisition of OTT | 1.1 |
Currency translations | 0.2 |
Goodwill, ending balance | 720.4 |
It Services And Hardware [Member] | Operating Segments [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 177.6 |
Adjustments to prior year acquisition of Agile | 0 |
Acquisition of OTT | 0 |
Currency translations | 0.2 |
Goodwill, ending balance | 177.8 |
Network [Member] | Operating Segments [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 545.9 |
Adjustments to prior year acquisition of Agile | (4.4) |
Acquisition of OTT | 1.1 |
Currency translations | 0 |
Goodwill, ending balance | $ 542.6 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill [Line Items] | ||||
Impairment losses recognized in goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Amortization of finite-lived intangible assets | 28,700,000 | 31,200,000 | 86,100,000 | 91,200,000 |
Impairment of intangible assets, finite-lived | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | $ 978.1 | $ 977.6 |
Accumulated amortization | (248.4) | (162.2) |
Intangible assets subject to amortization, net amount | 729.7 | 815.4 |
Total intangible assets, gross carrying amount | 992 | 991.3 |
Intangible assets, net amount | 743.6 | 829.1 |
FCC Licenses and Spectrum Usage Rights [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | 7.1 | 6.9 |
Perpetual Licenses [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets not subject to amortization | 6.8 | 6.8 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | 862.4 | 862.1 |
Accumulated amortization | (214.4) | (140.7) |
Intangible assets subject to amortization, net amount | 648 | 721.4 |
Trade Names [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | 109.6 | 109.5 |
Accumulated amortization | (32.3) | (20.5) |
Intangible assets subject to amortization, net amount | 77.3 | 89 |
Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets subject to amortization, gross carrying amount | 6.1 | 6 |
Accumulated amortization | (1.7) | (1) |
Intangible assets subject to amortization, net amount | $ 4.4 | $ 5 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Useful Lives for Finite-lived Intangible Assets (Details) | Sep. 30, 2023 |
Customer Relationships [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 | 3 years |
Trade Names [Member] | Maximum [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 10 years |
Technology [Member] | |
Finite Lived Intangible Assets [Line Items] | |
Finite-Lived Intangible Asset, Useful Life | 7 years |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
Three months ended December 31, 2023 | $ 28.7 | |
2024 | 105.4 | |
2025 | 93.7 | |
2026 | 86.5 | |
2027 | 79.3 | |
Thereafter | 336.1 | |
Intangible assets subject to amortization, net amount | $ 729.7 | $ 815.4 |
Debt and Other Financing Arra_3
Debt and Other Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ 25.7 | $ 45 | |
Other Financing Arrangements, Current Portion | 0.2 | 0.3 | |
Finance lease liabilities, current | 11.6 | 9.9 | |
Receivables Facility | 0 | 186.9 | |
Long-term debt, less current portion | 1,716.6 | 1,656 | |
Other Financing Arrangements, Non-Current Portion | 0.6 | 0 | |
Finance lease liabilities, Noncurrent | 39.5 | 43.1 | |
Long-term debt gross | 1,758.5 | 1,699.1 | |
Net unamortized discount | (5.7) | (4.3) | |
Unamortized note issuance costs | (36.2) | (38.8) | |
Total debt | 1,742.3 | 1,701 | |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Agreement | 36 | 223 | |
Term B-1 Loans [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 5 | 5 | |
Long-term debt, less current portion | 486.3 | 490 | |
Term B-2 Loans [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 6.5 | 6.5 | |
Long-term debt, less current portion | 632.1 | 637 | |
Term B 3 Loan [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 2 | 0 | |
Long-term debt, less current portion | 197.5 | 0 | |
7 1/4% Notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Notes, Current | [1] | 0 | 22.8 |
Network Receivables Facility [Member] | |||
Debt Instrument [Line Items] | |||
Receivables Facility | 33.9 | 0 | |
CBTS Receivable Facility [Member] | |||
Debt Instrument [Line Items] | |||
Receivables Facility | 211.9 | 0 | |
Various Cincinnati Bell Telephone Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt, less current portion | [1] | 95.4 | 96.4 |
Paniolo Fiber Assets [Member] | |||
Debt Instrument [Line Items] | |||
Financing Arrangement, Current Portion | 0.4 | 0.5 | |
Financing Arrangement, Noncurrent Portion | 21.6 | 21.8 | |
Digital Access Ohio Advance [Member] | |||
Debt Instrument [Line Items] | |||
Secured long-term debt, noncurrent | $ 3.7 | $ 0.9 | |
[1] As of September 30, 2023, the net carrying amount of the Various Cincinnati Bell Telephone notes included an unamortized fair value adjustment recorded on the Company's merger date, September 7, 2021, of $ 7.5 million. As of December 31, 2022, the net carrying amounts of the 7 ¼ % Notes due 2023 and Various Cincinnati Bell Telephone notes included unamortized fair value adjustments recorded on the Company's merger date, September 7, 2021, of $ 0.5 million and $ 8.5 million, respectively. Each adjustment is amortized over the life of the respective notes and is recorded as a reduction of interest expense. |
Debt and Other Financing Arra_4
Debt and Other Financing Arrangements - Schedule of Debt (Parenthetical) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | |
7 1/4% Notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate, stated percentage | 7.25% | 7.25% | 7.25% |
7 1/4% Notes due 2023 [Member] | Merger Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized fair value adjustments | $ 0.5 | ||
Various Cincinnati Bell Telephone Notes [Member] | Merger Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized fair value adjustments | $ 7.5 | $ 8.5 |
Debt and Other Financing Arra_5
Debt and Other Financing Arrangements - Credit Agreement - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
May 03, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Term B-1 Loans [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument updated maturity date | 2028-11 | ||
Term B-2 Loans [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument expiration date | 2028-11 | ||
Term B-3 Loans [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt instrument expiration date | 2028-11 | ||
Senior secured term loans | $ 200 | ||
Term B-3 Loans [Member] | Base Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt Instrument interest rate | 3% | ||
Term B-3 Loans [Member] | SOFR [Member] | |||
Line Of Credit Facility [Line Items] | |||
Debt Instrument interest rate | 4% | ||
Revolving Credit Facility [Member] | |||
Line Of Credit Facility [Line Items] | |||
Borrowings under the revolving credit facility | $ 36 | $ 223 | |
Line of credit facility, remaining borrowing capacity | $ 364 | ||
Debt instrument expiration date | 2026-09 |
Debt and Other Financing Arra_6
Debt and Other Financing Arrangements - Accounts Receivable Securitization Facility - Narrative (Details) | 9 Months Ended | ||
Jan. 31, 2023 USD ($) Facility | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||
Receivables facility amount outstanding | $ 0 | $ 186,900,000 | |
Receivables facility maximum borrowing capacity | $ 280,000,000 | ||
Accounts Receivable Sold | 13,300,000 | ||
Number of receivable facility | Facility | 2 | ||
Network Receivables Facility [Member] | |||
Debt Instrument [Line Items] | |||
Receivables facility amount outstanding | 33,900,000 | ||
Letters of Credit Outstanding, Amount | 16,200,000 | ||
Receivables Facility Remaining Borrowing Capacity | 1,400,000 | ||
Receivables Facility Maximum Borrowing Availability | 51,500,000 | ||
Receivables facility maximum borrowing capacity | $ 55,000,000 | 55,000,000 | |
Receivables facility renewal date | 2025-01 | ||
Receivables facility termination date | 2026-01 | ||
CBTS Receivable Facility [Member] | |||
Debt Instrument [Line Items] | |||
Receivables facility amount outstanding | 211,900,000 | ||
Letters of Credit Outstanding, Amount | 500,000 | ||
Receivables Facility Remaining Borrowing Capacity | 9,400,000 | ||
Receivables Facility Maximum Borrowing Availability | 221,800,000 | ||
Receivables facility maximum borrowing capacity | $ 225,000,000 | $ 225,000,000 | |
Receivables facility renewal date | 2025-01 | ||
Receivables facility termination date | 2026-01 |
Debt and Other Financing Arra_7
Debt and Other Financing Arrangements - Paniolo Fiber Assets Financing Arrangement - Narrative (Details) - Paniolo Acquisition [Member] | 3 Months Ended |
Sep. 30, 2023 | |
SOFR [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 0.10% |
Adjusted Term SOFR [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Basis Spread on Variable Rate | 3% |
Debt and Other Financing Arra_8
Debt and Other Financing Arrangements - Repayment of Notes - Narrative (Details) - 7 1/4% Notes due 2023 [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Repayment of notes | $ 22.3 | ||
Debt instrument, interest rate, stated percentage | 7.25% | 7.25% | 7.25% |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease assets, net of amortization | $ 75.2 | $ 73.1 |
Finance lease assets, net of amortization | $ 16.9 | $ 16.5 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net |
Current operating lease liabilities | $ 11.8 | $ 12.7 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Noncurrent operating lease liabilities | $ 68.9 | $ 66.1 |
Total operating lease liabilities | 80.7 | 78.8 |
Current finance lease liabilities | 11.6 | 9.9 |
Noncurrent finance lease liabilities | 39.5 | 43.1 |
Total finance lease liabilities | $ 51.1 | $ 53 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from finance leases | $ 3 | $ 2.5 |
Operating cash flows from operating leases | 10.2 | 9 |
Financing cash flows from finance leases | 9.9 | 6.4 |
Right-of-use assets obtained in exchange for lease obligations: | ||
New operating leases | 11.8 | 11.6 |
New finance leases | $ 7.9 | $ 8.1 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Narrative (Details) - Cash Flow Hedging [Member] - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | |
2.9185% Interest Rate Contract [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notional amount | $ 175,000,000 | |
Average fixed interest rate | 2.9185% | |
Interest rate swap expiration date | 2026-05 | |
2.8520% Interest Rate Contract [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notional amount | $ 115,000,000 | |
Average fixed interest rate | 2.852% | |
Interest rate swap expiration date | 2026-05 | |
2.8605% Interest Rate Contract [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notional amount | $ 85,000,000 | |
Average fixed interest rate | 2.8605% | |
Interest rate swap expiration date | 2026-05 | |
3.6875% Interest Rate Contract [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notional amount | $ 150,000,000 | |
Average fixed interest rate | 3.6875% | |
Interest rate swap expiration date | 2027-03 | |
3.6500% Interest Rate Contract [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notional amount | $ 150,000,000 | |
Average fixed interest rate | 3.65% | |
Interest rate swap expiration date | 2027-03 | |
3.5095% Interest Rate Contract [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notional amount | $ 100,000,000 | |
Average fixed interest rate | 3.5095% | |
Interest rate swap expiration date | 2027-03 | |
3.0% Interest Rate Cap One [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notional amount | $ 200,000,000 | |
Interest rate swap expiration date | 2026-05 | |
Interest rate | 3% | |
Deferred premiums | $ 6,700,000 | |
3.0% Interest Rate Cap Two [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notional amount | $ 175,000,000 | |
Interest rate swap expiration date | 2026-05 | |
Interest rate | 3% | |
Deferred premiums | $ 5,300,000 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Schedule of Fair Value of Interest rate Swaps and Interest Rate Caps are Recorded in Condensed Consolidated Balance Sheets (Details) - Cash Flow Hedging [Member] - Estimate of Fair Value, Fair Value Disclosure [Member] - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Interest Rate Swap [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Assets, Current | $ 16 | $ 7.2 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Interest Rate Swap Assets, Noncurrent | $ 11.4 | $ 5.1 |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Assets, Current | $ 0 | $ 0 |
Interest Rate Swap Assets, Noncurrent | 0 | 0 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Assets, Current | 16 | 7.2 |
Interest Rate Swap Assets, Noncurrent | 11.4 | 5.1 |
Interest Rate Swap [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Assets, Current | 0 | 0 |
Interest Rate Swap Assets, Noncurrent | 0 | 0 |
Interest Rate Cap [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Assets, Current | $ 5.7 | $ 3.8 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Interest Rate Swap Assets, Noncurrent | $ 2.3 | |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | |
Interest Rate Cap Liability, Noncurrent | $ 2.4 | |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Assets, Current | $ 0 | $ 0 |
Interest Rate Swap Assets, Noncurrent | 0 | |
Interest Rate Cap Liability, Noncurrent | 0 | |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Assets, Current | 5.7 | 3.8 |
Interest Rate Cap Liability, Noncurrent | 2.3 | 2.4 |
Interest Rate Cap [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest Rate Swap Assets, Current | 0 | 0 |
Interest Rate Swap Assets, Noncurrent | $ 0 | |
Interest Rate Cap Liability, Noncurrent | $ 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Schedule of Summarizes the Location of (Gains) Losses in the Condensed Consolidated Statements of Operations in Addition to the Derivative Contract Type (Details) - Cash Flow Hedging [Member] - Other Income, Net [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest Rate Swap [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Interest Rate | $ (10.2) | $ (13.8) | $ (23.8) | $ (11.9) |
Interest Rate Cap [Member] | ||||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||||
Interest Rate | $ (3.9) | $ (10.9) | $ (9.8) | $ (0.6) |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Schedule of Carrying and Fair Values by Balance Sheet Grouping (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | [1] | $ 1,726.6 | $ 1,686.5 |
Other financing arrangements | 47.3 | 50.1 | |
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] | 1,683.9 | 1,647 |
Other financing arrangements | $ 40.1 | $ 45.3 | |
[1] Excludes finance leases, other financing arrangements and note issuance costs |
Pension and Postretirement Pl_3
Pension and Postretirement Plans - Narrative (Details) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) Plan | Sep. 30, 2022 USD ($) | |
Cincinnati Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Number of noncontributory defined benefit pension plans | Plan | 3 | ||
Pension Plans, Defined Benefit [Member] | Qualified Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Contributions to pension plans | $ 0 | $ 0 | |
Pension Plans, Defined Benefit [Member] | Nonqualified Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Contributions to pension plans | 1,500,000 | 1,600,000 | |
Expected future employer contributions, next fiscal year | 2,000,000 | ||
Pension Plans, Defined Benefit [Member] | Hawaii Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Settlements | $ 1,400,000 | 6,800,000 | |
Decrease in benefit obligations | 6,800,000 | 6,800,000 | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Expected future employer contributions, next fiscal year | 7,000,000 | ||
Contributions to postretirement plans | $ 5,000,000 | $ 5,300,000 | |
Other Postretirement Benefits Plan [Member] | Hawaii Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Adjustments to postretirement and other benefits liability | 45,900,000 | ||
Adjustments to goodwill | 35,000,000 | ||
Adjustments to deferred income tax liabilities | $ 10,900,000 |
Pension and Postretirement Pl_4
Pension and Postretirement Plans - Schedule of Pension and Postretirement Costs (Benefits) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Other components of pension and postretirement benefit plans expense: | ||||
Interest cost on projected benefit obligation | 5.5 | 4.2 | 16.5 | 11.9 |
Expected return on plan assets | (5.2) | (6.6) | (15.6) | (20.9) |
Amortization of: | ||||
Prior service benefit | 0 | 0 | 0 | 0 |
Actuarial gain | (0.1) | 0 | (0.2) | 0 |
Pension / postretirement cost (benefit) | 0.2 | (2.4) | 0.7 | (9) |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 0.1 | 0.4 | 0.3 | 0.6 |
Other components of pension and postretirement benefit plans expense: | ||||
Interest cost on projected benefit obligation | 1.3 | 1.7 | 3.9 | 3.1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of: | ||||
Prior service benefit | (0.2) | 0 | (0.6) | 0 |
Actuarial gain | (1.2) | 0 | (3.5) | 0 |
Pension / postretirement cost (benefit) | $ 0 | $ 2.1 | $ 0.1 | $ 3.7 |
Equity - Schedule of Changes in
Equity - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||
Beginning balance | $ 19.8 | $ (1.4) | $ 19.5 | $ 1.2 | |
Reclassifications, net | (1.2) | (3.3) | |||
Remeasurement of benefit obligations | 0 | (0.8) | 0 | (2.1) | |
Foreign currency gain (loss) | (1.8) | (5.9) | 0.6 | (7.2) | |
Ending balance | 16.8 | (8.1) | 16.8 | (8.1) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||
Beginning balance | 25 | 1.3 | 27.1 | 2.6 | |
Reclassifications, net | [1] | (1.2) | (3.3) | ||
Remeasurement of benefit obligations | (0.8) | (2.1) | |||
Foreign currency gain (loss) | 0 | 0 | 0 | 0 | |
Ending balance | 23.8 | 0.5 | 23.8 | 0.5 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Changes in Accumulated Other Comprehensive Loss by Component [Roll Forward] | |||||
Beginning balance | (5.2) | (2.7) | (7.6) | (1.4) | |
Reclassifications, net | 0 | 0 | |||
Remeasurement of benefit obligations | 0 | 0 | |||
Foreign currency gain (loss) | (1.8) | (5.9) | 0.6 | (7.2) | |
Ending balance | $ (7) | $ (8.6) | $ (7) | $ (8.6) | |
[1] These reclassifications are included in the other components of net periodic pension and postretirement benefit plans expense and represent amortization of prior service benefit and actuarial gain, 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 (benefit)" on the Condensed Consolidated Statements of Operations. See Note 8 for further disclosures. |
Business Segment Information -
Business Segment Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 Segment | |
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 | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | ||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 448.3 | $ 462.1 | $ 1,354.9 | $ 1,337.4 | ||
Operating (loss) income | (22) | (36.7) | (71.5) | (84.1) | ||
Expenditures for long-lived assets | [1] | 184.8 | 141.1 | 493.8 | 407.1 | |
Depreciation and amortization | 109.2 | 131.5 | 354.1 | 381.1 | ||
Total assets | 4,567.3 | 4,567.3 | $ 4,435.6 | |||
Operating Segments | Network [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 250.2 | 251.1 | 750.9 | 741.6 | ||
Operating (loss) income | (7) | (27.2) | (39.8) | (49.2) | ||
Expenditures for long-lived assets | [1] | 179.4 | 131.7 | 474.5 | 384.3 | |
Depreciation and amortization | 84.3 | 104.7 | 279.5 | 301.5 | ||
Total assets | 3,449.6 | 3,449.6 | 3,218.5 | |||
Operating Segments | IT Services and Hardware [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 204.4 | 217.8 | 622.3 | 615.6 | ||
Operating (loss) income | (9.4) | (0.7) | (14.4) | (10.7) | ||
Expenditures for long-lived assets | [1] | 5.4 | 9.3 | 19.1 | 22.7 | |
Depreciation and amortization | 24.8 | 26.8 | 74.3 | 79.4 | ||
Total assets | 979 | 979 | 812.2 | |||
Intersegment Eliminations [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | (6.3) | (6.8) | (18.3) | (19.8) | ||
Intersegment Eliminations [Member] | Sales [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 6.3 | 6.8 | 18.3 | 19.8 | ||
Intersegment Eliminations [Member] | Network [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 4 | 4.8 | 12.3 | 14.5 | ||
Intersegment Eliminations [Member] | IT Services and Hardware [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | 2.3 | 2 | 6 | 5.3 | ||
Corporate [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating (loss) income | (5.6) | (8.8) | (17.3) | (24.2) | ||
Expenditures for long-lived assets | [1] | 0 | 0.1 | 0.2 | 0.1 | |
Depreciation and amortization | 0.1 | $ 0 | 0.3 | $ 0.2 | ||
Corporate and Elimination [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | $ 138.7 | $ 138.7 | $ 404.9 | |||
[1] Includes cost of acquisitions |